GAO Human Capital Reform Act of 2004
PL 108-271 (H.R.2751), enacted 07/07/2004

118 STAT. 811
PUBLIC LAW 108–271—JULY 7, 2004
Public Law 108–271
108th Congress
An Act
To provide new human capital flexibilities with respect to the GAO, and for other
purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.
(a) SHORT TITLE.—This Act may be cited as the ‘‘GAO Human
Capital Reform Act of 2004’’.
(b) AMENDMENT OF TITLE 31.—Except as otherwise expressly
provided, whenever in this Act an amendment is expressed in
terms of an amendment to a section or other provision, the reference
shall be considered to be made to a section or other provision
of title 31, United States Code.
SEC. 2. AMENDMENTS TO PUBLIC LAW 106–303.
(a) AUTHORITIES MADE PERMANENT.—Sections 1 and 2 of Public
Law 106–303 (5 U.S.C. 8336 note and 5597 note) are amended
by striking ‘‘for purposes of the period beginning on the date of
the enactment of this Act and ending on December 31, 2003’’ each
place it appears and inserting ‘‘October 13, 2000’’.
(b) SENSE OF CONGRESS.—
(1) VOLUNTARY EARLY RETIREMENT AUTHORITY.—Section 1
of Public Law 106–303 is amended by adding at the end the
following:
‘‘(e) SENSE OF CONGRESS.—It is the sense of Congress that
the implementation of this section is intended to reshape the Gen-
eral Accounting Office workforce and not downsize the General
Accounting Office workforce.’’.
(2) VOLUNTARY SEPARATION INCENTIVE PAYMENTS.—Section
2 of Public Law 106–303 is amended by adding at the end
the following:
‘‘(g) SENSE OF CONGRESS.—It is the sense of Congress that
the implementation of this section is intended to reshape the Gen-
eral Accounting Office workforce and not downsize the General
Accounting Office workforce.’’.
(c) ADDITIONAL LIMITATION RELATING TO VSIPS.—Section 2(b)
of Public Law 106–303 is amended by striking paragraph (2) and
inserting the following:
‘‘(2) subsection (a)(2)(G) of such section shall be applied—
‘‘(A) by construing the citations therein to be references
to the appropriate authorities in connection with employees
of the General Accounting Office; and
‘‘(B) by deeming such subsection to be amended by
striking ‘Code.’ and inserting ‘Code, or who, during the
5 USC 5597 note.
5 USC 8336 note.
31 USC 701 note.
GAO Human
Capital Reform
Act of 2004.
July 7, 2004
[H.R. 2751]
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118 STAT. 812
PUBLIC LAW 108–271—JULY 7, 2004
thirty-six month period preceding the date of separation,
performed service for which a student loan repayment ben-
efit was or is to be paid under section 5379 of title 5,
United States Code.’;’’.
SEC. 3. ANNUAL PAY ADJUSTMENTS.
(a) OFFICERS AND EMPLOYEES GENERALLY.—Paragraph (3) of
section 732(c) is amended to read as follows:
‘‘(3) except as provided under section 733(a)(3)(B) of this
title, basic rates of officers and employees of the Office shall
be adjusted annually to such extent as determined by the
Comptroller General, and in making that determination the
Comptroller General shall consider—
‘‘(A) the principle that equal pay should be provided
for work of equal value within each local pay area;
‘‘(B) the need to protect the purchasing power of officers
and employees of the Office, taking into consideration the
Consumer Price Index or other appropriate indices;
‘‘(C) any existing pay disparities between officers and
employees of the Office and non-Federal employees in each
local pay area;
‘‘(D) the pay rates for the same levels of work for
officers and employees of the Office and non-Federal
employees in each local pay area;
‘‘(E) the appropriate distribution of agency funds
between annual adjustments under this section and
performance-based compensation; and
‘‘(F) such other criteria as the Comptroller General
considers appropriate, including, but not limited to, the
funding level for the Office, amounts allocated for perform-
ance-based compensation, and the extent to which the
Office is succeeding in fulfilling its mission and accom-
plishing its strategic plan;
notwithstanding any other provision of this paragraph, an
adjustment under this paragraph shall not be applied in the
case of any officer or employee whose performance is not at
a satisfactory level, as determined by the Comptroller General
for purposes of such adjustment;’’.
(b) OFFICERS AND EMPLOYEES IN THE OFFICE SENIOR EXECUTIVE
SERVICE.—Subparagraph (B) of section 733(a)(3) is amended to
read as follows:
‘‘(B) adjusted annually by the Comptroller General
after taking into consideration the factors listed under
section 732(c)(3) of this title, except that an adjustment
under this subparagraph shall not be applied in the case
of any officer or employee whose performance is not at
a satisfactory level, as determined by the Comptroller Gen-
eral for purposes of such adjustment;’’.
(c) CONFORMING AMENDMENT.—Section 732(b)(6) is amended
by striking ‘‘title 5.’’ and inserting ‘‘title 5, except as provided
under subsection (c)(3) of this section and section 733(a)(3)(B) of
this title.’’.
SEC. 4. PAY RETENTION.
Paragraph (5) of section 732(c) is amended to read as follows:
‘‘(5) the Comptroller General shall prescribe regulations
under which an officer or employee of the Office shall be entitled
to pay retention if, as a result of any reduction-in-force or
Regulations.
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118 STAT. 813
PUBLIC LAW 108–271—JULY 7, 2004
other workforce adjustment procedure, position reclassification,
or other appropriate circumstances as determined by the Comp-
troller General, such officer or employee is placed in or holds
a position in a lower grade or band with a maximum rate
of basic pay that is less than the rate of basic pay payable
to the officer or employee immediately before the reduction
in grade or band; such regulations—
‘‘(A) shall provide that the officer or employee shall
be entitled to continue receiving the rate of basic pay
that was payable to the officer or employee immediately
before the reduction in grade or band until such time
as the retained rate becomes less than the maximum rate
for the grade or band of the position held by such officer
or employee; and
‘‘(B) shall include provisions relating to the minimum
period of time for which an officer or employee must have
served or for which the position must have been classified
at the higher grade or band in order for pay retention
to apply, the events that terminate the right to pay reten-
tion (apart from the one described in subparagraph (A)),
and exclusions based on the nature of an appointment;
in prescribing regulations under this subparagraph, the
Comptroller General shall be guided by the provisions of
sections 5362 and 5363 of title 5.’’.
SEC. 5. RELOCATION BENEFITS.
Section 731 is amended by adding after subsection (e) the
following:
‘‘(f) The Comptroller General shall prescribe regulations under
which officers and employees of the Office may, in appropriate
circumstances, be reimbursed for any relocation expenses under
subchapter II of chapter 57 of title 5 for which they would not
otherwise be eligible, but only if the Comptroller General determines
that the transfer giving rise to such relocation is of sufficient
benefit or value to the Office to justify such reimbursement.’’.
SEC. 6. INCREASED ANNUAL LEAVE FOR KEY EMPLOYEES.
Section 731 is amended by adding after subsection (f) (as added
by section 5 of this Act) the following:
‘‘(g) The Comptroller General shall prescribe regulations under
which key officers and employees of the Office who have less than
3 years of service may accrue leave in accordance with section
6303(a)(2) of title 5, in those circumstances in which the Comptroller
General has determined such increased annual leave is appropriate
for the recruitment or retention of such officers and employees.
Such regulations shall define key officers and employees and set
forth the factors in determining which officers and employees should
be allowed to accrue leave in accordance with this subsection.’’.
SEC. 7. EXECUTIVE EXCHANGE PROGRAM.
Section 731 is amended by adding after subsection (g) (as
added by section 6 of this Act) the following:
‘‘(h) The Comptroller General may by regulation establish an
executive exchange program under which officers and employees
of the Office may be assigned to private sector organizations, and
employees of private sector organizations may be assigned to the
Office, to further the institutional interests of the Office or Congress,
including for the purpose of providing training to officers and
Regulations.
Regulations.
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118 STAT. 814
PUBLIC LAW 108–271—JULY 7, 2004
employees of the Office. Regulations to carry out any such
program—
‘‘(1) shall include provisions (consistent with sections 3702
through 3704 of title 5) as to matters concerning—
‘‘(A) the duration and termination of assignments;
‘‘(B) reimbursements; and
‘‘(C) status, entitlements, benefits, and obligations of
program participants;
‘‘(2) shall limit—
‘‘(A) the number of officers and employees who are
assigned to private sector organizations at any one time
to not more than 15; and
‘‘(B) the number of employees from private sector
organizations who are assigned to the Office at any one
time to not more than 30;
‘‘(3) shall require that an employee of a private sector
organization assigned to the Office may not have access to
any trade secrets or to any other nonpublic information which
is of commercial value to the private sector organization from
which such employee is assigned;
‘‘(4) shall require that, before approving the assignment
of an officer or employee to a private sector organization, the
Comptroller General shall determine that the assignment is
an effective use of the Office’s funds, taking into account the
best interests of the Office and the costs and benefits of alter-
native methods of achieving the same results and objectives;
and
‘‘(5) shall not allow any assignment under this subsection
to commence after the end of the 5-year period beginning on
the date of the enactment of this subsection.
‘‘(i) An employee of a private sector organization assigned to
the Office under the executive exchange program shall be considered
to be an employee of the Office for purposes of—
‘‘(1) chapter 73 of title 5;
‘‘(2) sections 201, 203, 205, 207, 208, 209, 603, 606, 607,
643, 654, 1905, and 1913 of title 18;
‘‘(3) sections 1343, 1344, and 1349(b) of this title;
‘‘(4) chapter 171 of title 28 (commonly referred to as the
‘Federal Tort Claims Act’) and any other Federal tort liability
statute;
‘‘(5) the Ethics in Government Act of 1978 (5 U.S.C. App.);
‘‘(6) section 1043 of the Internal Revenue Code of 1986;
and
‘‘(7) section 27 of the Office of Federal Procurement Policy
Act (41 U.S.C. 423).’’.
SEC. 8. REDESIGNATION.
(a) IN GENERAL.—The General Accounting Office is hereby
redesignated the Government Accountability Office.
(b) REFERENCES.—Any reference to the General Accounting
Office in any law, rule, regulation, certificate, directive, instruction,
or other official paper in force on the date of enactment of this
Act shall be considered to refer and apply to the Government
Accountability Office.
SEC. 9. PERFORMANCE MANAGEMENT SYSTEM.
Paragraph (1) of section 732(d) is amended to read as follows:
Government
organization.
31 USC 702 note.
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118 STAT. 815
PUBLIC LAW 108–271—JULY 7, 2004
‘‘(1) for a system to appraise the performance of officers
and employees of the General Accounting Office that meets
the requirements of section 4302 of title 5 and in addition
includes—
‘‘(A) a link between the performance management
system and the agency’s strategic plan;
‘‘(B) adequate training and retraining for supervisors,
managers, and employees in the implementation and oper-
ation of the performance management system;
‘‘(C) a process for ensuring ongoing performance feed-
back and dialogue between supervisors, managers, and
employees throughout the appraisal period and setting
timetables for review;
‘‘(D) effective transparency and accountability meas-
ures to ensure that the management of the system is
fair, credible, and equitable, including appropriate inde-
pendent reasonableness, reviews, internal assessments, and
employee surveys; and
‘‘(E) a means to ensure that adequate agency resources
are allocated for the design, implementation, and adminis-
tration of the performance management system;’’.
SEC. 10. CONSULTATION.
Before the implementation of any changes authorized under
this Act, the Comptroller General shall consult with any interested
groups or associations representing officers and employees of the
General Accounting Office.
SEC. 11. REPORTING REQUIREMENTS.
(a) ANNUAL REPORTS.—The Comptroller General shall include—
(1) in each report submitted to Congress under section
719(a) of title 31, United States Code, during the 5-year period
beginning on the date of enactment of this Act, a summary
review of all actions taken under sections 2, 3, 4, 6, 7, 9,
and 10 of this Act during the period covered by such report,
including—
(A) the respective numbers of officers and employees—
(i) separating from the service under section 2
of this Act;
(ii) receiving pay retention under section 4 of this
Act;
(iii) receiving increased annual leave under section
6 of this Act; and
(iv) engaging in the executive exchange program
under section 7 of this Act, as well as the number
of private sector employees participating in such pro-
gram and a review of the general nature of the work
performed by the individuals participating in such pro-
gram;
(B) a review of all actions taken to formulate the
appropriate methodologies to implement the pay adjust-
ments provided for under section 3 of this Act, except
that nothing under this subparagraph shall be required
if no changes are made in any such methodology during
the period covered by such report; and
(C) an assessment of the role of sections 2, 3, 4, 6,
7, 9, and 10 of this Act in contributing to the General
31 USC 719 note.
31 USC 731 note.
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118 STAT. 816
PUBLIC LAW 108–271—JULY 7, 2004
Accounting Office’s ability to carry out its mission, meet
its performance goals, and fulfill its strategic plan; and
(2) in each report submitted to Congress under such section
719(a) after the effective date of section 3 of this Act and
before the close of the 5-year period referred to in paragraph
(1)—
(A) a detailed description of the methodologies applied
under section 3 of this Act and the manner in which
such methodologies were applied to determine the appro-
priate annual pay adjustments for officers and employees
of the Office;
(B) the amount of the annual pay adjustments afforded
to officers and employees of the Office under section 3
of this Act; and
(C) a description of any extraordinary economic condi-
tions or serious budget constraints which had a significant
impact on the determination of the annual pay adjustments
for officers and employees of the Office.
(b) FINAL REPORT.—Not later than 6 years after the date of
enactment of this Act, the Comptroller General shall submit to
Congress a report concerning the implementation of this Act. Such
report shall include—
(1) a summary of the information included in the annual
reports required under subsection (a);
(2) recommendations for any legislative changes to section
2, 3, 4, 6, 7, 9, or 10 of this Act; and
(3) any assessment furnished by the General Accounting
Office Personnel Appeals Board or any interested groups or
associations representing officers and employees of the Office
for inclusion in such report.
(c) ADDITIONAL REPORTING.—Notwithstanding any other provi-
sion of this section, the reporting requirement under subsection
(a)(2)(C) shall apply in the case any report submitted under section
719(a) of title 31, United States Code, whether during the 5-year
period beginning on the date of enactment of this Act (as required
by subsection (a)) or at any time thereafter.
SEC. 12. TECHNICAL AMENDMENT.
Section 732(h)(3)(A) is amended by striking ‘‘reduction force’’
and inserting ‘‘reduction in force’’.
SEC. 13. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection (b), this
Act and the amendments made by this Act shall take effect on
the date of enactment of this Act.
(b) PAY ADJUSTMENTS.—
(1) IN GENERAL.—Section 3 of this Act and the amendments
made by that section shall take effect on October 1, 2005,
and shall apply in the case of any annual pay adjustment
taking effect on or after that date.
(2) INTERIM
AUTHORITIES.—In connection with any pay
adjustment taking effect under section 732(c)(3) or 733(a)(3)(B)
of title 31, United States Code, before October 1, 2005, the
Comptroller General may by regulation—
(A) provide that such adjustment not be applied in
the case of any officer or employee whose performance
is not at a satisfactory level, as determined by the Comp-
troller General for purposes of such adjustment; and
31 USC 731 note.
Applicability.
Deadline.
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118 STAT. 817
PUBLIC LAW 108–271—JULY 7, 2004
LEGISLATIVE HISTORY—H.R. 2751 (S. 1522):
HOUSE REPORTS: No. 108–380 (Comm. on Government Reform).
SENATE REPORTS: No. 108–216 accompanying S. 1522 (Comm. on Governmental
Affairs).
CONGRESSIONAL RECORD, Vol. 150 (2004):
Feb. 25, considered and passed House.
June 24, considered and passed Senate.
(B) provide that such adjustment be reduced if and
to the extent necessary because of extraordinary economic
conditions or serious budget constraints.
(3) ADDITIONAL AUTHORITY.—
(A) IN
GENERAL.—The Comptroller General may by
regulation delay the effective date of section 3 of this Act
and the amendments made by that section for groups of
officers and employees that the Comptroller General con-
siders appropriate.
(B) INTERIM AUTHORITIES.—If the Comptroller General
provides for a delayed effective date under subparagraph
(A) with respect to any group of officers or employees,
paragraph (2) shall, for purposes of such group, be applied
by substituting such date for ‘‘October 1, 2005’’.
Approved July 7, 2004.
Applicability.
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