S.Amdt. 153

SA 153. Mr. VOINOVICH submitted an amendment intended to be proposed by him to the joint resolution H.J. Res. 2, making further continuing appropriations for the fiscal year 2003, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the followimg:

DIVISION __--REFORM RELATING TO FEDERAL EMPLOYMENT

SEC. __. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This division may be cited as the “Federal Workforce Flexibility Act of 2003”.

(b) Table of Contents.--The table of contents of this division is as follows:

DIVISION __--REFORM RELATING TO FEDERAL EMPLOYMENT

Sec. __. Short title; table of contents.

TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

Sec. 101. Streamlined personnel management demonstration projects.

Sec. 102. Effective date.

TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 201. Recruitment, relocation, and retention bonuses.

Sec. 202. Streamlined critical pay authority.

TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND BENEFITS

Sec. 301. Agency training.

Sec. 302. Annual leave enhancements.

TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

SEC. 101. STREAMLINED PERSONNEL MANAGEMENT DEMONSTRATION PROJECTS.

Chapter 47 of title 5, United States Code, is amended--

(1) in section 4701--

(A) in subsection (a)--

(i) by striking “(a)”;

(ii) by striking paragraph (1) and inserting the following:

“(1) ‘agency' means an Executive agency and any entity that is subject to any provision of this title that could be waived under section 4703, but does not include--

“(A) the Federal Bureau of Investigation, the Central Intelligence Agency, the Defense Intelligence Agency, the National Imagery and Mapping Agency, the National Security Agency, and, as determined by the President, any Executive agency or unit thereof which is designated by the President and which has as its principal function the conduct of foreign intelligence or counterintelligence activities; or

“(B) the General Accounting Office;”;

(iii) in paragraph (4), by striking “and” at the end;

(iv) by redesignating paragraph (5) as paragraph (6); and

(v) by inserting after paragraph (4) the following:

“(5) ‘modification' means a significant change in 1 or more of the elements of a demonstration project plan as described in section 4703(b)(1); and”; and

(B) by striking subsection (b); and

(2) in section 4703--

(A) in subsection (a)--

(i) by striking “conduct and evaluate demonstration projects” and inserting “conduct, modify, and evaluate demonstration projects”;

(ii) by striking “, including any law or regulation relating to--” and all that follows and inserting a period; and

(iii) by adding at the end the following: “The decision to initiate or modify a project under this section shall be made by the Office.”;

(B) by striking subsection (b) and inserting the following:

“(b) Before conducting or entering into any agreement or contract to conduct a demonstration project, the Office shall ensure--

“(1) that each project has a plan which describes--

“(A) its purpose;

“(B) the employees to be covered;

“(C) its anticipated outcomes and resource implications, including how the project relates to carrying out the agency's strategic plan, including meeting performance goals and objectives, and accomplishing its mission;

“(D) the personnel policies and procedures the project will use that differ from those otherwise available and applicable, including a specific citation of any provisions of law, rule, or regulation to be waived and a specific description of any contemplated action for which there is a lack of specific authority;

“(E) the method of evaluating the project; and

“(F) the agency's system for ensuring that the project is implemented in a manner consistent with merit system principles;

“(2) notification of the proposed project to employees who are likely to be affected by the project;

“(3) an appropriate comment period;

“(4) publication of the final plan in the Federal Register;

“(5) notification of the final project at least 90 days in advance of the date any project proposed under this section is to take effect to employees who are likely to be affected by the project;

“(6) publication of any subsequent modification in the Federal Register; and

“(7) notification of any subsequent modification to employees who are included in the project.”;

(C) in subsection (c)--

(i) by striking paragraph (1) and inserting the following:

“(1) any provision of chapter 63 or subpart G of part III of this title;”;

(ii) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively;

(iii) by inserting after paragraph (3) the following:

“(4) section 7342, 7351, or 7353;

“(5) the Ethics in Government Act of 1978 (5 U.S.C. App.);”; and

(iv) in paragraph (6) as redesignated, by striking “paragraph (1), (2), or (3) of this subsection; or” and inserting “paragraphs (1) through (5);”;

(D) by striking subsections (d) and (e) and inserting the following:

“(d)(1) Unless terminated at an earlier date in accordance with this section, each demonstration project shall terminate at the end of the 10-year period beginning on the date on which the project takes effect.

“(2) Before the end of the 5-year period beginning on the date on which a demonstration project takes effect, the Office shall submit a recommendation to Congress on whether Congress should enact legislation to make that project permanent.

“(e) The Office may terminate a demonstration project under this chapter if the Office determines that the project--

“(1) is not consistent with merit system principles set forth in section 2301, veterans' preference principles, or the provisions of this chapter; or

“(2) otherwise imposes a substantial hardship on, or is not in the best interests of, the public, the Government, employees, or eligibles.”; and

(E) by striking subsections (h) and (i) and inserting the following:

“(h) Notwithstanding section 2302(e)(1), for purposes of applying section 2302(b)(11) in a demonstration project under this chapter, the term ‘veterans' preference requirement' means any of the specific provisions of the demonstration project plan that are designed to ensure that the project is consistent with veterans' preference principles.

“(i) The Office shall ensure that each demonstration project is evaluated. Each evaluation shall assess--

“(1) the project's compliance with the plan developed under subsection (b)(1); and

“(2) the project's impact on improving public management.

“(j) Upon request of the Director of the Office of Personnel Management, agencies shall cooperate with and assist the Office in any evaluation undertaken under subsection (i) and provide the Office with requested information and reports relating to the conducting of demonstration projects in their respective agencies.”.

SEC. 102. EFFECTIVE DATE.

This title shall take effect 180 days after the date of enactment of this Act.

TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

SEC. 201. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

(a) Bonuses.--

(1) In general.--Chapter 57 of title 5, United States Code, is amended by striking sections 5753 and 5754 and inserting the following:

“Sec. 5753. Recruitment and relocation bonuses

“(a) In this section, the term ‘employee' has the meaning given that term under section 2105, except that such term also includes an employee described under subsection (c) of that section.

“(b)(1) The Office of Personnel Management may authorize the head of an agency to pay a bonus to an individual appointed or moved to a position that is likely to be difficult to fill in the absence of such a bonus, if the individual--

“(A)(i) is newly appointed as an employee of the Federal Government; or

“(ii) is currently employed by the Federal Government and moves to a new position in the same geographic area under circumstances described in regulations of the Office; or

“(B) is currently employed by the Federal Government and must relocate to accept a position stationed in a different geographic area.

“(2) Except as provided by subsection (h), a bonus may be paid under this section only to an employee covered by the General Schedule pay system established under subchapter III of chapter 53.

“(c)(1) Payment of a bonus under this section shall be contingent upon the employee entering into a written service agreement to complete a period of employment with the agency, not to exceed 4 years. The Office may, by regulation, prescribe a minimum service.

“(2)(A) The agreement shall include--

“(i) the length of the required service period;

“(ii) the amount of the bonus;

“(iii) the method of payment; and

“(iv) other terms and conditions under which the bonus is payable, subject to subsections (d) and (e) and regulations of the Office.

“(B) The terms and conditions for paying a bonus, as specified in the service agreement, shall include--

“(i) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and

“(ii) the effect of the termination.

“(3) The agreement shall be made effective upon employment with the agency or movement to a new position or geographic area, as applicable, except that a service agreement with respect to a recruitment bonus may be made effective at a later date under circumstances described in regulations of the Office, such as when there is an initial period of formal basic training.

“(d)(1) Except as provided in subsection (e), a bonus under this section shall not exceed 25 percent of the annual rate of basic pay of the employee at the beginning of the service period multiplied by the number of years (or fractions thereof) in the service period, not to exceed 4 years.

“(2) A bonus under this section may be paid as an initial lump sum, in installments, as a final lump sum upon the completion of the full service period, or in a combination of these forms of payment.

“(3) A bonus under this section is not part of the basic pay of an employee for any purpose.

“(4) Under regulations of the Office, a recruitment bonus under this section may be paid to an eligible individual before that individual enters on duty.

“(e) The Office may authorize the head of an agency to waive the limitation under subsection (d)(1) based on a critical agency need, subject to regulations prescribed by the Office. Under such a waiver, the amount of the bonus may be up to 50 percent of the employee's annual rate of basic pay at the beginning of the service period multiplied by the number of years (or fractions thereof) in the service period, not to exceed 100 percent of the employee's annual rate of basic pay at the beginning of the service period.

“(f) The Office shall require that, before paying a bonus under this section, an agency shall establish a plan for paying recruitment bonuses and a plan for paying relocation bonuses, subject to regulations prescribed by the Office.

“(g) The Office may prescribe regulations to carry out this section, including regulations relating to the repayment of a recruitment or relocation bonus in appropriate circumstances when the agreed-upon service period has not been completed.

“(h)(1) At the request of the head of an Executive agency, the Office may extend coverage under this section to categories of employees within the agency who otherwise would not be covered by this section.

“(2) The Office shall not extend coverage to the head of an Executive agency, including an Executive agency headed by a board or other collegial body composed of 2 or more individual members.

“Sec. 5754. Retention bonuses

“(a) In this section, the term ‘employee' has the meaning given that term under section 2105, except that such term also includes an employee described in subsection (c) of that section.

“(b) The Office of Personnel Management may authorize the head of an agency to pay a retention bonus to an employee, subject to regulations prescribed by the Office, if--

“(1) the unusually high or unique qualifications of the employee or a special need of the agency for the employee's services makes it essential to retain the employee; and

“(2) the agency determines that, in the absence of a retention bonus, the employee would be likely to leave--

“(A) the Federal service; or

“(B) for a different position in the Federal service under conditions described in regulations of the Office.

“(c) The Office may authorize the head of an agency to pay retention bonuses to a group of employees in 1 or more categories of positions in 1 or more geographic areas, subject to the requirements of subsection (b)(1) and regulations prescribed by the Office, if there is a high risk that a significant portion of employees in the group would be likely to leave in the absence of retention bonuses.

“(d) Except as provided in subsection (j), a bonus may be paid only to an employee covered by the General Schedule pay system established under subchapter III of chapter 53.

“(e)(1) Payment of a retention bonus is contingent upon the employee entering into a written service agreement with the agency to complete a period of employment with the agency.

“(2)(A) The agreement shall include--

“(i) the length of the required service period;

“(ii) the amount of the bonus;

“(iii) the method of payment; and

“(iv) other terms and conditions under which the bonus is payable, subject to subsections (f) and (g) and regulations of the Office.

“(B) The terms and conditions for paying a bonus, as specified in the service agreement, shall include--

“(i) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and

“(ii) the effect of the termination.

“(3)(A) Notwithstanding paragraph (1), a written service agreement is not required if the agency pays a retention bonus in biweekly installments and sets the installment payment at the full bonus percentage rate established for the employee with no portion of the bonus deferred.

“(B) If an agency pays a retention bonus in accordance with subparagraph (A) and makes a determination to terminate the payments, the agency shall provide written notice to the employee of that determination. Except as provided in regulations of the Office, the employee shall continue to be paid the retention bonus through the end of the pay period in which such written notice is provided.

“(4) A retention bonus for an employee may not be based on any period of such service which is the basis for a recruitment or relocation bonus under section 5753.

“(f)(1) Except as provided in subsection (g), a retention bonus, which shall be stated as a percentage of the employee's basic pay for the service period associated with the bonus, may not exceed--

“(A) 25 percent of the employee's basic pay if paid under subsection (b); or

“(B) 10 percent of an employee's basic pay if paid under subsection (c).

“(2) A retention bonus may be paid to an employee in installments after completion of specified periods of service or in a single lump sum at the end of the full period of service required by the agreement. An installment payment may not exceed the product derived from multiplying the amount of basic pay earned in the installment period by a percentage not to exceed the bonus percentage rate established for the employee. If the installment payment percentage is less than the bonus percentage rate, the accrued but unpaid portion of the bonus is payable as part of the final installment payment to the employee after completion of the full service period under the terms of the service agreement.

“(3) A retention bonus is not part of the basic pay of an employee for any purpose.

“(g) Upon the request of the head of an agency, the Office may waive the limit established under subsection (f)(1) and permit the agency head to pay an otherwise eligible employee or category of employees retention bonuses of up to 50 percent of basic pay, based on a critical agency need.

“(h) The Office shall require that, before paying a bonus under this section, an agency shall establish a plan for paying retention bonuses, subject to regulations prescribed by the Office.

“(i) The Office may prescribe regulations to carry out this section.

“(j)(1) At the request of the head of an Executive agency, the Office may extend coverage under this section to categories of employees within the agency who otherwise would not be covered by this section.

“(2) The Office shall not extend coverage under this section to the head of an Executive agency, including an Executive agency headed by a board or other collegial body composed of 2 or more individual members.”.

(2) Technical and conforming amendment.--The table of sections for chapter 57 of title 5, United States Code, is amended by striking the item relating to section 5754 and inserting the following:

“5754. Retention bonuses.”.

(b) Relocation Payments.--Section 407 of the Federal Employees Pay Comparability Act of 1990 (5 U.S.C. 5305 note; 104 Stat. 1467) is repealed.

(c) Effective Date and Application.--

(1) Effective date.--Except as provided under paragraphs (2) and (3), this section shall take effect on the first day of the first applicable pay period beginning on or after 180 days after the date of enactment of this Act.

(2) Application to agreements.--A recruitment or relocation bonus service agreement that was authorized under section 5753 of title 5, United States Code, before the effective date under paragraph (1) shall continue, until its expiration, to be subject to section 5753 as in effect on the day before such effective date.

(3) Application to allowances.--Payment of a retention allowance that was authorized under section 5754 of title 5, United States Code, before the effective date under paragraph (1) shall continue, subject to section 5754 as in effect on the day before such effective date, until the retention allowance is reauthorized or terminated (but no longer than 1 year after such effective date).

SEC. 202. STREAMLINED CRITICAL PAY AUTHORITY.

Section 5377 of title 5, United States Code, is amended--

(1) by striking subsection (c) and inserting the following:

“(c) The Office of Personnel Management, in consultation with the Office of Management and Budget, may, upon the request of the head of an agency, grant authority to fix the rate of basic pay for 1 or more positions in such agency in accordance with this section.”;

(2) in subsection (e)(1), by striking “Office of Management and Budget” and inserting “Office of Personnel Management”;

(3) by striking subsections (f) and (g) and inserting the following:

“(f) The Office of Personnel Management may not authorize the exercise of authority under this section with respect to more than 800 positions at any 1 time, of which not more than 30 may, at any such time, be positions the rate of basic pay for which would otherwise be determined under subchapter II.

“(g) The Office of Personnel Management shall consult with the Office of Management and Budget before making any decision to grant or terminate any authority under this section.”; and

(4) in subsection (h), by striking “The Office of Management and Budget shall report to the Committee on Post Office and Civil Service” and inserting “The Office of Personnel Management shall report to the Committee on Government Reform.”.

TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND BENEFITS

SEC. 301. AGENCY TRAINING.

(a) Training To Accomplish Performance Plans and Strategic Goals.--Section 4103 of title 5, United States Code, is amended by adding at the end the following:

“(c) The head of each agency shall--

“(1) evaluate each program or plan established, operated, or maintained under subsection (a) with respect to accomplishing specific performance plans and strategic goals in performing the agency mission; and

“(2) modify such program or plan to accomplish such plans and goals.”.

(b) Agency Training Officer; Specific Training Programs.--

(1) In general.--Chapter 41 of title 5, United States Code, is amended by adding after section 4119 the following:

“Sec. 4120. Agency training officer

“Each agency shall appoint or designate a training officer who shall be responsible for developing, coordinating, and administering training for the agency.

“Sec. 4121. Specific training programs

“In consultation with the Office of Personnel Management, each head of an agency shall establish--

“(1) a comprehensive management succession program to provide training to employees to develop managers for the agency; and

“(2) a program to provide training to managers on actions, options, and strategies a manager may use in--

“(A) relating to employees with unacceptable performances; and

“(B) mentoring employees and improving employee performance and productivity.”.

(2) Technical and conforming amendment.--The table of sections for chapter 41 of title 5, United States Code, is amended by adding at the end the following:

“4120. Agency training officer.

“4121. Specific training programs.”.

SEC. 302. ANNUAL LEAVE ENHANCEMENTS.

(a) Accrual of Leave for Newly Hired Federal Employees With Qualified Experience.--

(1) In general.--Section 6303 of title 5, United States Code, is amended by adding at the end the following:

“(e)(1) In this subsection, the term ‘period of qualified non-Federal service' means any equal period of service performed by an individual that--

“(A) except for this subsection would not otherwise be service performed by an employee for purposes of subsection (a); and

“(B) was performed in a position--

“(i) the duties of which were directly related to the duties of the position in an agency that such individual holds; and

“(ii) which meets such other conditions as the Office of Personnel Management shall prescribe by regulation.

“(2) For purposes of subsection (a), the head of an agency may deem a period of qualified non-Federal service performed by an individual to be a period of service performed as an employee.”.

(2) Effective date.--This section shall take effect 120 days after the date of enactment of this Act and shall only apply to an individual hired on or after that effective date.

(b) Senior Executive Service Annual Leave Enhancements.--

(1) In general.--Section 6303(a) of title 5, United States Code, is amended--

(A) in paragraph (2), by striking “and” at the end;

(B) in paragraph (3), by striking the period at the end and inserting “; and”; and

(C) by adding after paragraph (3) the following:

“(4) one day for each full biweekly pay period for an employee in a position paid under section 5376 or 5383, or for an employee in an equivalent category for which the minimum rate of basic pay is greater than the rate payable at GS-15, step 10.”.

(2) Regulations.--Not later than 120 days after the date of enactment of this Act, the Office of Personnel Management shall prescribe regulations to carry out the amendments made by this subsection.

(3) Effective dates.--

(A) In general.--Paragraph (1) shall take effect 120 days after the date of enactment of this Act.

(B) Regulations.--Paragraph (2) shall take effect on the date of enactment of this Act.