SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Law Enforcement Officers Pay 
Equity and Reform Act''.

SEC. 2. LIMITATION ON PREMIUM PAY.

    (a) In General.--Section 5547 of title 5, United States Code, is 
amended--
            (1) in subsection (a), by striking ``5545a,'';
            (2) in subsection (c), by striking ``or 5545a''; and
            (3) in subsection (d), by striking the period and inserting 
        ``or a criminal investigator who is paid availability pay under 
        section 5545a.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 1114 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1239).

SEC. 3. SPECIAL PAY ADJUSTMENTS FOR FEDERAL LAW ENFORCEMENT OFFICERS IN 
              CERTAIN AREAS.

    (a) In General.--Section 404(b)(1) of the Federal Law Enforcement 
Pay Reform Act of 1990 (5 U.S.C. 5305 note) is amended by striking the 
matter after the semicolon and inserting the following:

          ``Area                                           Differential
        Boston-Lawrence-Salem, MA-NH Consolidated                24.4% 
            Metropolitan Statistical Area.
        Chicago-Gary-Lake County, IL-IN-WI Consolidated          24.5% 
            Metropolitan Statistical Area.
        Detroit-Ann Arbor-Flint, MI........................      18.5% 
        Hartford, CT.......................................      20.3% 
        Los Angeles-Anaheim-Riverside, CA Consolidated           27.1% 
            Metropolitan Statistical Area.
        New York-Northern New Jersey-Long Island, NY-NJ-CT       26.1% 
            Consolidated Metropolitan Statistical Area.
        Philadelphia-Wilmington-Trenton PA-NJ-DE-MD              20.3% 
            Consolidated Metropolitan Statistical Area.
        Portland-Salem, OR-WA..............................      18.5% 
        Sacramento-Yolo, CA................................        21% 
        San Diego, CA Metropolitan Statistical Area........      27.1% 
        San Francisco-Oakland-San Jose, CA Consolidated         32.03% 
            Metropolitan Statistical Area.
        Seattle-Tacoma-Bremerton, WA.......................      27.5% 
        Washington-Baltimore, DC-MD-VA-WV Consolidated         24.3%''.
            Metropolitan Statistical Area.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to pay for service performed in pay periods beginning on 
or after the date of the enactment of this Act.

SEC. 4. SEPARATE PAY, EVALUATION, AND PROMOTION SYSTEM FOR FEDERAL LAW 
              ENFORCEMENT OFFICERS.

    (a) Study.--Not later than 6 months after the date of the enactment 
of this Act, the Office of Personnel Management shall study and submit 
to Congress a report which shall contain its findings and 
recommendations regarding the need for, and the potential benefits to 
be derived from, the establishment of a separate pay, evaluation, and 
promotion system for Federal law enforcement officers. In carrying out 
this subsection, the Office of Personnel Management shall take into 
account the findings and recommendations contained in the September 
1993 report of the Office entitled ``A Plan to Establish a New Pay and 
Job Evaluation System for Federal Law Enforcement Officers''.
    (b) Demonstration Project.--
            (1) In general.--If, after completing its report under 
        subsection (a), the Office of Personnel Management considers it 
        to be appropriate, the Office shall implement, within 12 months 
        after the date of the enactment of this Act, a demonstration 
        project to determine whether a separate system for Federal law 
        enforcement officers (as described in subsection (a)) would 
        result in improved Federal personnel management.
            (2) Applicable provisions.--Any demonstration project under 
        this subsection shall be conducted in accordance with the 
        provisions of chapter 47 of title 5, United States Code, except 
        that a project under this subsection shall not be taken into 
        account for purposes of the numerical limitation under section 
        4703(d)(2) of such title.
            (3) Permanent changes.--Not later than 6 months before the 
        demonstration project's scheduled termination date, the Office 
        of Personnel Management shall submit to Congress--
                    (A) its evaluation of the system tested under the 
                demonstration project; and
                    (B) recommendations as to whether or not that 
                system (or any aspects of that system) should be 
                continued or extended to other Federal law enforcement 
                officers.
    (c) Federal Law Enforcement Officer Defined.--For purposes of this 
section, the term ``Federal law enforcement officer'' means a law 
enforcement officer as defined by section 8331 or 8401 of title 5, 
United States Code, and, subsection (b)(2) notwithstanding, includes 
any such officer serving in or under the Federal Bureau of 
Investigation.
Output: Federal Law Enforcement Officers Pay Equity and Reform Act - Excludes availability pay for Federal criminal investigators from premium pay limitations.Amends the Federal Law Enforcement Pay Reform Act of 1990 to increase the Federal special pay differential for Federal law enforcement officers employed in specified metropolitan statistical areas.Requires a study by the Office of Personnel Management (OPM) regarding the need for, and potential benefits of, the establishment of a separate pay, evaluation, and promotion system for Federal law enforcement officers (including officers serving in or under the Federal Bureau of Investigation). Authorizes OPM to implement a demonstration project for such a system.