IIB 118th CONGRESS 1st Session H. R. 159 IN THE SENATE OF THE UNITED STATES January 25, 2023 Received; read twice and referred to the Committee on Homeland Security and Governmental Affairs AN ACT To implement merit-based reforms to the civil service hiring system that replace degree-based hiring with skills- and competency-based hiring, and for other purposes.

1. Short title This Act may be cited as the Chance to Compete Act of 2023 . 2. Definitions (a) Terms defined in section 3304 of title 5, united states code In this Act, the terms agency , Director , examining agency , Office , subject matter expert , and technical assessment have the meanings given those terms in subsection (c)(1) of section 3304 of title 5, United States Code, as added by section 3(a). (b) Other terms In this Act, the term competitive service has the meaning given the term in section 2102 of title 5, United States Code. 3. Defining the term “examination” for purposes of hiring in the competitive service (a) Examinations; technical assessments (1) In general Section 3304 of title 5, United States Code, is amended— (A) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; and (B) by inserting after subsection (b) the following: (c) Examinations (1) Definitions (A) Examination (i) In this chapter, the term examination — (I) means an opportunity to directly demonstrate knowledge, skills, abilities, and competencies, through a passing score assessment; (II) includes a résumé review that is— (aa) conducted by a subject matter expert; and (bb) based upon indicators that— (AA) are derived from a job analysis; and (BB) bear a rational relationship to performance in the position for which the examining agency is hiring; and (III) on and after the date that is 2 years after the date of enactment of the Chance to Compete Act of 2023 does not include a self-assessment from an automated examination, a résumé review (except as provided in subclause (II)), or any other method of determining the experience or level of educational attainment of an individual, alone. (ii) (I) An agency’s Chief Human Capital Officer may waive clause (i)(III) when needed to enable the filling of a position or class of positions. (II) Not later than 180 days after the date of enactment of the Chance to Compete Act of 2023 , the Director shall provide agencies guidance and instruction on the data, evidence, and circumstances that Chief Human Capital Officers of agencies should consider in determining whether to grant a waiver under subclause (I). (III) (aa) An agency shall post any waiver granted under subclause (I) on a public website within 30 days of the granting of the waiver. (bb) A waiver shall not be considered in effect until it is posted on the public website pursuant to item (aa). (IV) (aa) Each agency shall submit to the Director on a semiannual basis a report summarizing the number of waivers granted by the Chief Human Capital Officer of the agency under subclause (I) during the preceding 6-month period and the reasons therefor. (bb) The Director shall submit annually to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report summarizing the number of waivers granted by the Chief Human Capital Officers of all agencies under subclause (I) during the preceding year and the reasons therefor provided by the agencies. (V) Not more than 10 percent of an agency’s positions filled through competitive hiring procedures during a fiscal year may be filled under the authority of a waiver granted under clause (I), and an agency shall obtain the Director’s approval to fill more than 5 percent of such positions under such authority. (B) Other definitions In this subsection— (i) the term agency means an agency described in section 901(b) of title 31; (ii) the term Director means the Director of the Office; (iii) the term examining agency means— (I) the Office; or (II) an agency to which the Director has delegated examining authority under section 1104(a)(2) of this title; (iv) the term passing score assessment means an assessment that an individual can pass or fail; (v) the term subject matter expert means an employee or selecting official— (I) who possesses understanding of the duties of, and knowledge, skills, and abilities required for, the position for which the employee or selecting official is developing or administering an assessment; and (II) whom the agency that employs the employee or selecting official designates to assist in the development and administration of technical assessments under paragraph (2); and (vi) the term technical assessment means an assessment developed under paragraph (2)(A)(i) that— (I) allows for the demonstration of job-related technical skills, abilities, and knowledge; (II) (aa) is based upon a job analysis; and (bb) is relevant to the position for which the assessment is developed; and (III) may include— (aa) a structured interview; (bb) a work-related exercise; (cc) a custom or generic procedure used to measure an individual’s employment or career-related qualifications and interests; or (dd) another assessment that meets the criteria under subclauses (I) and (II). (2) Technical assessments (A) In general For the purpose of conducting an examination for a position in the competitive service, an individual or individuals whom an agency determines to have an expertise in the subject and job field of the position, as affirmed and audited by the Chief Human Capital Officer or Human Resources Director (as applicable) of that agency, may— (i) develop, in partnership with human resources employees of the examining agency, a position-specific assessment that is relevant to the position; and (ii) administer the assessment developed under clause (i) to— (I) determine whether an applicant for the position has a passing score to be qualified for the position; or (II) rank applicants for the position for category rating purposes under section 3319. (B) Sharing and customization of assessments (i) Sharing An examining agency may share a technical assessment with another examining agency if each agency maintains appropriate control over examination material. (ii) Customization An examining agency with which a technical assessment is shared under clause (i) may customize the assessment as appropriate, provided that the resulting assessment satisfies the requirements under part 300 of title 5, Code of Federal Regulations (or any successor regulation). (iii) Platform for sharing and customization (I) In general The Director shall establish and operate an online platform on which examining agencies can share and customize technical assessments under this subparagraph. (II) Online platform The Director shall ensure that the online platform described in subclause (I) includes the ability of its users to rate the utility of the content and technical assessments shared in the online platform to allow for a ranking of such contents. (3) Regulations Not later than one year after the date of enactment of the Chance to Compete Act of 2023 , the Office of Personnel Management shall prescribe regulations necessary for the administration of this subsection with respect to employees in each agency. . (2) Alternative ranking and selection procedures Section 3319(a) of title 5, United States Code, is amended by adding at the end the following: To be placed in a quality category under the preceding sentence, an applicant shall be required to have passed an examination in accordance with section 3304(b). . (3) Technical and conforming amendment Section 3330a(a)(1)(B) of title 5, United States Code, is amended by striking section 3304(f)(1) and inserting section 3304(g)(1) . (b) Implementation of passing score assessment requirement (1) In general Not later than 2 years after the date of enactment of this Act, the Director and the head of any other examining agency shall eliminate the use of any examination for the competitive service that does not satisfy the definition of the term examination in subsection (c)(1)(A) of section 3304 of title 5, United States Code (as amended by subsection (a)(1)(B)). (2) Report required One year following the date of enactment of this Act, the Director shall submit to the Committee on Oversight and Accountability of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report examining agencies’ progress in implementing the requirement specified in paragraph (1), identifying any significant difficulties encountered in such implementation. (c) OPM reporting (1) Public online tool (A) In general The Director of the Office of Personnel Management shall maintain and periodically update a publicly available online tool that, with respect to each position in the competitive service for which an examining agency examined applicants during the applicable period, includes— (i) the type of assessment used, such as— (I) a behavioral off-the-shelf assessment; (II) a résumé review conducted by a subject matter expert; (III) an interview conducted by a subject matter expert; (IV) a technical off-the-shelf assessment; or (V) a cognitive ability test; (ii) whether or not the agency selected a candidate for the position; and (iii) the hiring authority used to fill the position. (B) Timing (i) Initial data Not later than 180 days after the date of enactment of this Act, the Director shall update the online tool described in subparagraph (A) with data for positions in the competitive service for which an examining agency examined applicants during the period beginning on the date of enactment of this Act and ending on the date of submission of the report. (ii) Subsequent updates Not later than October 1 of each fiscal year beginning after the date on which the online tool is initially updated under clause (i), the Director shall update the online tool described in subparagraph (A) with data for positions in the competitive service for which an examining agency examined applicants during the preceding fiscal year. (2) Annual progress report (A) In general Each year, the Director, in accordance with subparagraphs (B) and (C), shall make publicly available and submit to Congress an overall progress report that includes summary data from examinations that are closed, audited, and anonymous on the use of examinations (as defined in subsection (c)(1)(A) of section 3304 of title 5, United States Code, as added by subsection (a) of this section) for the competitive service, including technical assessments. (B) Categories; baseline data In carrying out subparagraph (A), the Director shall— (i) break the data down by applicant demographic indicator, including veteran status, race, gender, disability, and any other measure the Director determines appropriate; and (ii) use the data available as of October 1, 2020, as a baseline. (C) Limitations In carrying out subparagraph (A), the Director may only make publicly available and submit to Congress data relating to examinations for which— (i) the related announcement is closed; (ii) certificates have been audited; and (iii) all hiring processes are completed. (d) GAO report Not later than 5 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that— (1) assesses the implementation of this section and the amendments made by this section; (2) assesses the impact and modifications to the hiring process for the competitive service made by this section and the amendments made by this section; and (3) makes recommendations for the improvement of the hiring process for the competitive service. 4. Amendments to competitive service act of 2015 (a) Platforms for sharing certificates of eligibles (1) In general Section 3318(b) of title 5, United States Code, is amended— (A) in paragraph (1), by striking 240-day and inserting 1-year ; (B) by redesignating paragraph (5) as paragraph (6); and (C) by inserting after paragraph (4) the following: (5) Online tool for sharing résumés of individuals on certificates of eligibles Not later than one year after the date of enactment of the Chance to Compete Act of 2023 , the Director of the Office of Personnel Management shall establish and operate an online tool on which an appointing authority can share, with other appointing authorities and the Chief Human Capital Officers Council established under section 1303 of the Chief Human Capital Officers Act of 2002 ( 5 U.S.C. 1401 note; Public Law 107–296 ), the resumes of individuals who are on a certificate of eligibles requested by the appointing authority. In carrying out this paragraph, the Director shall consult with the Chief Human Capital Officers Counsel and its membership to develop a plan to establish such online tool. . (2) Plan Not later than 270 days after the date of enactment of this Act, the Director shall provide to Congress a plan to develop the online tool required in paragraph (5) of section 3318(b) of title 5, United States Code, as added by paragraph (1) of this subsection. Such plan shall— (A) incorporate the input and feedback collected during the required consultation under such paragraph; and (B) include estimated costs for building and operating the online tool. (b) Maximizing sharing of applicant information Section 2 of the Competitive Service Act of 2015 ( Public Law 114–137 ; 130 Stat. 310) is amended— (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and (2) by inserting after subsection (b) the following: (c) Exploring the benefits of maximizing sharing of applicant information (1) Definitions In this subsection— (A) the terms agency , Director , and Office have the meanings given those terms in section 3304(c)(1) of title 5, United States Code; and (B) the term competitive service has the meaning given the term in section 2102 of title 5, United States Code. (2) Maximizing sharing The Director shall maximize the sharing of information among agencies regarding qualified applicants for positions in the competitive service, including by— (A) providing for the delegation to other agencies of the authority of the Office to host multi-agency hiring actions to increase the return on investment on high-quality pooled announcements; and (B) sharing certificates of eligibles and accompanying résumés for appointment. . 5. Modernizing and reforming the assessment and hiring of federal job candidates (a) OPM review The Director shall conduct a review of all examinations for hiring for a position that the Office or any other examining agency has determined requires a minimum educational requirement because the nature of the duties of such position is of a scientific, technical, or professional position pursuant to section 3308 of title 5, United States Code, to determine whether there are data, evidence, or other information that justifies the need for educational requirements for such position. The Director shall consult with appropriate agencies, employee representatives, external experts, and other stakeholders when making any such determinations. (b) Online tool regarding position duties (1) In general Not later than two years after the date of enactment of this Act, the Director shall create and maintain an online tool that lists each of the duties determined to require minimum educational requirements and the data, evidence, or other information that justifies the need for these educational requirements. This online tool shall include a mechanism to receive feedback regarding data, evidence, or information that could affect the determination that a duty requires a minimum educational requirement. (2) Hiring practices Not later than one year after the creation of the online tool under paragraph (1), the Director and the head of any other examining agency shall amend the hiring practices of the Office or the other examining agency, respectively, in accordance with the findings of the review made by subsection (a). (c) Online tool regarding recruiting Upon the date of enactment of this Act, the Director shall establish and maintain an online tool that provides Federal agencies guidance on, and information about, all programs and authorities that help agencies attract, recruit, hire, and retain individuals. 6. Talent teams (a) Federal agency talent teams (1) In general An agency may establish one or more talent teams (referred to in this section as agency talent teams ), including at the component level. (2) Duties An agency talent team shall provide hiring support to the agency and other agencies, including by— (A) improving examinations (as defined in subsection (c)(1)(A) of section 3304 of title 5, United States Code, as added by section 3(a)); (B) facilitating writing job announcements for the competitive service; (C) sharing high-quality certificates of eligibles; and (D) facilitating hiring for the competitive service using examinations (as defined in such subsection (c)(1)(A)) and subject matter experts. (b) Office of personnel management The Director may establish a Federal talent team to support agency talent teams in facilitating pooled hiring actions across the Federal Government, providing training, and creating technology platforms to facilitate hiring for the competitive service, including— (1) the development of technical assessments; and (2) the sharing of certificates of eligibles and accompanying résumés under sections 3318(b) and 3319(c) of title 5, United States Code. 7. Updates to system of records for hiring actions in the civil service (a) Update to select system of records Not later than 180 days after the date of enactment of this Act, and on a regular basis thereafter, the Director of the Office of Management and Budget shall provide guidance to all Federal departments and agencies to ensure appropriate use of a system of records, including any government-wide systems of records, to meet the requirements of section 552a of title 5, United States Code (commonly known as the Privacy Act ), in hiring actions in the civil service. (b) Government-wide systems of records at the office (1) In general The Director of the Office of Personnel Management, in consultation with the Director of the Office of Management and Budget, shall ensure that any system of records notice updates required pursuant to the guidance provided under subsection (a) account for any use of newer technologies that capture records (as defined in section 552a(a)(4) of title 5, United States Code) in video, audio, and video/audio combination formats and accommodate maintenance of such video, audio, and video/audio combination records. (2) Evaluation for potential updates or revisions (A) In general Not later than 1 year after the date of enactment of this Act, the Director of the Office of Personnel Management shall evaluate whether the government-wide System of Records Notices (referred to in this paragraph as SORNs ) OPM/GOVT-5 Recruiting, Examining, and Placement Records and OPM/GOVT-6 Personnel Research and Test Validation Records , or any successor materials thereto, require updating or revision to implement the purposes of this Act. (B) Issuance of updates or revisions; notice to Congress If the Director, after the evaluation under subparagraph (A), finds that any updates or revisions to the SORNs identified in that subparagraph are necessary and appropriate to support implementation of this Act, the Director shall promptly— (i) issue the updates or revisions; and (ii) notify the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives.

Passed the House of Representatives January 24, 2023. Cheryl L. Johnson, Clerk.