[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3841 Engrossed in House (EH)]


  2d Session

                               H. R. 3841

_______________________________________________________________________

                                 AN ACT

  To amend the civil service laws of the United States, and for other 
                               purposes.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
104th CONGRESS
  2d Session
                                H. R. 3841

_______________________________________________________________________

                                 AN ACT


 
  To amend the civil service laws of the United States, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Omnibus Civil 
Service Reform Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--DEMONSTRATION PROJECTS

Sec. 101. Demonstration projects.
              TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT

Sec. 201. No appeal of denial of periodic step-increases.
Sec. 202. Performance appraisals.
Sec. 203. Amendments to incentive awards authority.
Sec. 204. Due process rights of managers under negotiated grievance 
                            procedures.
Sec. 205. Collection and reporting of training information.
    TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER 
                                BENEFITS

Sec. 301. Loans under the Thrift Savings Plan for furloughed employees.
Sec. 302. Domestic relations orders.
Sec. 303. Unreduced additional optional life insurance.
                  TITLE IV--REORGANIZATION FLEXIBILITY

Sec. 401. Voluntary reductions in force.
Sec. 402. Nonreimbursable details to Federal agencies before a 
                            reduction in force.
                    TITLE V--SOFT-LANDING PROVISIONS

Sec. 501. Temporary continuation of Federal employees' life insurance.
Sec. 502. Continued eligibility for health insurance.
Sec. 503. Job placement and counseling services.
Sec. 504. Education and retraining incentives.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Reimbursements relating to professional liability insurance.
Sec. 602. Employment rights following conversion to contract.
Sec. 603. Debarment of health care providers found to have engaged in 
                            fraudulent practices.
Sec. 604. Consistent coverage for individuals enrolled in a health plan 
                            administered by the Federal banking 
                            agencies.
Sec. 605. Amendment to Public Law 104-134.
Sec. 606. Miscellaneous amendments relating to the health benefits 
                            program for Federal employees.
Sec. 607. Pay for certain positions formerly classified at GS-18.
Sec. 608. Repeal of section 1307 of title 5 of the United States Code.
Sec. 609. Extension of certain procedural and appeal rights to certain 
                            personnel of the Federal Bureau of 
                            Investigation.

                    TITLE I--DEMONSTRATION PROJECTS

SEC. 101. DEMONSTRATION PROJECTS.

    (a) Definitions.--Paragraph (1) of section 4701(a) of title 5, 
United States Code, is amended by striking subparagraph (A) and by 
redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), 
respectively.
    (b) Pre-Implementation Procedures.--Subsection (b) of section 4703 
of title 5, United States Code, is amended to read as follows:
    ``(b) Before an agency or the Office may conduct or enter into any 
agreement or contract to conduct a demonstration project, the Office--
            ``(1) shall develop or approve a plan for such project 
        which identifies--
                    ``(A) the purposes of the project;
                    ``(B) the methodology;
                    ``(C) the duration; and
                    ``(D) the methodology and criteria for evaluation;
            ``(2) shall publish the plan in the Federal Register;
            ``(3) may solicit comments from the public and interested 
        parties in such manner as the Office considers appropriate;
            ``(4) shall obtain approval from each agency involved of 
        the final version of the plan; and
            ``(5) shall provide notification of the proposed project, 
        at least 30 days in advance of the date any project proposed 
        under this section is to take effect--
                    ``(A) to employees who are likely to be affected by 
                the project; and
                    ``(B) to each House of the Congress.''.
    (c) Nonwaivable Provisions.--Section 4703(c) of title 5, United 
States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) any provision of subchapter V of chapter 63 or 
        subpart G of part III of this title;''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) any provision of chapter 15 or subchapter II or III 
        of chapter 73 of this title;''.
    (d) Limitations.--Subsection (d) of section 4703 of title 5, United 
States Code, is amended to read as follows:
    ``(d)(1) Each demonstration project shall terminate before the end 
of the 5-year period beginning on the date on which the project takes 
effect, except that the project may continue for a maximum of 2 years 
beyond the date to the extent necessary to validate the results of the 
project.
    ``(2)(A) Not more than 15 active demonstration projects may be in 
effect at any time, and of the projects in effect at any time, not more 
than 5 may involve 5,000 or more individuals each.
    ``(B) Individuals in a control group necessary to validate the 
results of a project shall not, for purposes of any determination under 
subparagraph (A), be considered to be involved in such project.''.
    (e) Evaluations.--Subsection (h) of section 4703 of title 5, United 
States Code, is amended by adding at the end the following: ``The 
Office may, with respect to a demonstration project conducted by 
another agency, require that the preceding sentence be carried out by 
such other agency.''.
    (f) Provisions for Termination of Project or Making It Permanent.--
Section 4703 of title 5, United States Code, is amended--
            (1) in subsection (i) by inserting ``by the Office'' after 
        ``undertaken''; and
            (2) by adding at the end the following:
    ``(j)(1) If the Office determines that termination of a 
demonstration project (whether under subsection (e) or otherwise) would 
result in the inequitable treatment of employees who participated in 
the project, the Office shall take such corrective action as is within 
its authority. If the Office determines that legislation is necessary 
to correct an inequity, it shall submit an appropriate legislative 
proposal to both Houses of Congress.
    ``(2) If the Office determines that a demonstration project should 
be made permanent, it shall submit an appropriate legislative proposal 
to both Houses of Congress.''.

              TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT

SEC. 201. NO APPEAL OF DENIAL OF PERIODIC STEP-INCREASES.

    (a) In General.--Section 5335(c) of title 5, United States Code, is 
amended--
            (1) by striking the second sentence;
            (2) in the third sentence by striking ``or appeal''; and
            (3) in the last sentence by striking ``and the entitlement 
        of the employee to appeal to the Board do not apply'' and 
        inserting ``does not apply''.
    (b) Performance Ratings.--Section 5335 of title 5, United States 
Code, as amended by subsection (a), is further amended--
            (1) in subsection (a)(B) by striking ``work of the employee 
        is of an acceptable level of competence'' and inserting 
        ``performance of the employee is at least fully successful'';
            (2) in subsection (c)--
                    (A) in the first sentence by striking ``work of an 
                employee is not of an acceptable level of competence,'' 
                and inserting ``performance of an employee is not at 
                least fully successful,''; and
                    (B) in the last sentence by striking ``acceptable 
                level of competence'' and inserting ``fully successful 
                work performance''; and
            (3) by adding at the end the following:
    ``(g) For purposes of this section, the term `fully successful' 
denotes work performance that satisfies the requirements of section 
351.504(d)(3)(D) of title 5 of the Code of Federal Regulations (as 
deemed to be amended by section 3502(g)(2)(B)).''.

SEC. 202. PERFORMANCE APPRAISALS.

    (a) In General.--Section 4302 of title 5, United States Code, is 
amended--
            (1) in subsection (b) by striking paragraphs (5) and (6) 
        and inserting the following:
            ``(5) assisting employees in improving unacceptable 
        performance, except in circumstances described in subsection 
        (c); and
            ``(6) reassigning, reducing in grade, removing, or taking 
        other appropriate action against employees whose performance is 
        unacceptable.''; and
            (2) by adding at the end the following:
    ``(c) Upon notification of unacceptable performance, an employee 
shall be afforded an opportunity to demonstrate acceptable performance 
before a reduction in grade or removal may be proposed under section 
4303 based on such performance, except that an employee so afforded 
such an opportunity shall not be afforded any further opportunity to 
demonstrate acceptable performance if the employee's performance again 
is determined to be at an unacceptable level.''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), this section and 
        the amendments made by this section shall take effect 180 days 
        after the date of the enactment of this Act.
            (2) Exception.--The amendments made by this section shall 
        not apply in the case of any proposed action as to which the 
        employee receives advance written notice, in accordance with 
        section 4303(b)(1)(A) of title 5, United States Code, before 
        the effective date of this section.

SEC. 203. AMENDMENTS TO INCENTIVE AWARDS AUTHORITY.

    Chapter 45 of title 5, United States Code, is amended--
            (1) by amending section 4501 to read as follows:
``Sec. 4501. Definitions
    ``For the purpose of this subchapter--
            ``(1) the term `agency' means--
                    ``(A) an Executive agency;
                    ``(B) the Library of Congress;
                    ``(C) the Office of the Architect of the Capitol;
                    ``(D) the Botanic Garden;
                    ``(E) the Government Printing Office; and
                    ``(F) the United States Sentencing Commission;
        but does not include--
                    ``(i) the Tennessee Valley Authority; or
                    ``(ii) the Central Bank for Cooperatives;
            ``(2) the term `employee' means an employee as defined by 
        section 2105; and
            ``(3) the term `Government' means the Government of the 
        United States.'';
            (2) by amending section 4503 to read as follows:
``Sec. 4503. Agency awards
    ``(a) The head of an agency may pay a cash award to, and incur 
necessary expense for the honorary recognition of, an employee who--
            ``(1) by his suggestion, invention, superior 
        accomplishment, or other personal effort, contributes to the 
        efficiency, economy, or other improvement of Government 
        operations or achieves a significant reduction in paperwork; or
            ``(2) performs a special act or service in the public 
        interest in connection with or related to his official 
        employment.
    ``(b)(1) If the criteria under paragraph (1) or (2) of subsection 
(a) are met on the basis of the suggestion, invention, superior 
accomplishment, act, service, or other meritorious effort of a group of 
employees collectively, and if the circumstances so warrant (such as by 
reason of the infeasibility of determining the relative role or 
contribution assignable to each employee separately), authority under 
subsection (a) may be exercised--
            ``(A) based on the collective efforts of the group; and
            ``(B) with respect to each member of such group.
    ``(2) The amount awarded to each member of a group under this 
subsection--
            ``(A) shall be the same for all members of such group, 
        except that such amount may be prorated to reflect differences 
        in the period of time during which an individual was a member 
        of the group; and
            ``(B) may not exceed the maximum cash award allowable under 
        subsection (a) or (b) of section 4502, as applicable.''; and
            (3) in subsection (a)(1) of section 4505a by striking ``at 
        the fully successful level or higher'' and inserting ``higher 
        than the fully successful level''.

SEC. 204. DUE PROCESS RIGHTS OF MANAGERS UNDER NEGOTIATED GRIEVANCE 
              PROCEDURES.

    (a) In General.--Paragraph (2) of section 7121(b) of title 5, 
United States Code, is amended to read as follows:
    ``(2) The provisions of a negotiated grievance procedure providing 
for binding arbitration in accordance with paragraph (1)(C)(iii) shall, 
if or to the extent that an alleged prohibited personnel practice is 
involved, allow the arbitrator to order a stay of any personnel action 
in a manner similar to the manner described in section 1221(c) with 
respect to the Merit Systems Protection Board.''.
    (b) Effective Date.--The amendment made by subsection (a)--
            (1) shall take effect on the date of the enactment of this 
        Act; and
            (2) shall apply with respect to orders issued on or after 
        the date of the enactment of this Act, notwithstanding the 
        provisions of any collective bargaining agreement.

SEC. 205. COLLECTION AND REPORTING OF TRAINING INFORMATION.

    (a) Training Within Government.--The Office of Personnel Management 
shall collect information concerning training programs, plans, and 
methods utilized by agencies of the Government and submit a report to 
the Congress on this activity on an annual basis.
    (b) Training Outside of Government.--The Office of Personnel 
Management, to the extent it considers appropriate in the public 
interest, may collect information concerning training programs, plans, 
and methods utilized outside the Government. The Office, on request, 
may make such information available to an agency and to Congress.

    TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER 
                                BENEFITS

SEC. 301. LOANS UNDER THE THRIFT SAVINGS PLAN FOR FURLOUGHED EMPLOYEES.

    Section 8433(g) of title 5, United States Code, is amended by 
adding at the end the following:
    ``(6) An employee who has been furloughed due to a lapse in 
appropriations may not be denied a loan under this subsection solely 
because such employee is not in a pay status.''.

SEC. 302. DOMESTIC RELATIONS ORDERS.

    (a) In General.--Section 8705 of title 5, United States Code, is 
amended--
            (1) in subsection (a) by striking ``(a) The'' and inserting 
        ``(a) Except as provided in subsection (e), the''; and
            (2) by adding at the end the following:
    ``(e)(1) Any amount which would otherwise be paid to a person 
determined under the order of precedence named by subsection (a) shall 
be paid (in whole or in part) by the Office to another person if and to 
the extent expressly provided for in the terms of any court decree of 
divorce, annulment, or legal separation, or the terms of any court 
order or court-approved property settlement agreement incident to any 
court decree of divorce, annulment, or legal separation.
    ``(2) For purposes of this subsection, a decree, order, or 
agreement referred to in paragraph (1) shall not be effective unless it 
is received, before the date of the covered employee's death, by the 
employing agency or, if the employee has separated from service, by the 
Office.
    ``(3) A designation under this subsection with respect to any 
person may not be changed except--
            ``(A) with the written consent of such person, if received 
        as described in paragraph (2); or
            ``(B) by modification of the decree, order, or agreement, 
        as the case may be, if received as described in paragraph (2).
    ``(4) The Office shall prescribe any regulations necessary to carry 
out this subsection, including regulations for the application of this 
subsection in the event that 2 or more decrees, orders, or agreements, 
are received with respect to the same amount.''.
    (b) Directed Assignment.--Section 8706(e) of title 5, United States 
Code, is amended--
            (1) by striking ``(e)'' and inserting ``(e)(1)''; and
            (2) by adding at the end the following:
    ``(2) A court decree of divorce, annulment, or legal separation, or 
the terms of a court-approved property settlement agreement incidental 
to any court decree of divorce, annulment, or legal separation, may 
direct that an insured employee or former employee make an irrevocable 
assignment of the employee's or former employee's incidents of 
ownership in insurance under this chapter (if there is no previous 
assignment) to the person specified in the court order or court-
approved property settlement agreement.''.

SEC. 303. UNREDUCED ADDITIONAL OPTIONAL LIFE INSURANCE.

    (a) In General.--Section 8714b of title 5, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by striking the last 2 sentences of paragraph 
                (2); and
                    (B) by adding at the end the following:
    ``(3) The amount of additional optional insurance continued under 
paragraph (2) shall be continued, with or without reduction, in 
accordance with the employee's written election at the time eligibility 
to continue insurance during retirement or receipt of compensation 
arises, as follows:
            ``(A) The employee may elect to have withholdings cease in 
        accordance with subsection (d), in which case--
                    ``(i) the amount of additional optional insurance 
                continued under paragraph (2) shall be reduced each 
                month by 2 percent effective at the beginning of the 
                second calendar month after the date the employee 
                becomes 65 years of age and is retired or is in receipt 
                of compensation; and
                    ``(ii) the reduction under clause (i) shall 
                continue for 50 months at which time the insurance 
                shall stop.
            ``(B) The employee may, instead of the option under 
        subparagraph (A), elect to have the full cost of additional 
        optional insurance continue to be withheld from such employee's 
        annuity or compensation on and after the date such withholdings 
        would otherwise cease pursuant to an election under 
        subparagraph (A), in which case the amount of additional 
        optional insurance continued under paragraph (2) shall not be 
        reduced, subject to paragraph (4).
            ``(C) An employee who does not make any election under the 
        preceding provisions of this paragraph shall be treated as if 
        such employee had made an election under subparagraph (A).
    ``(4) If an employee makes an election under paragraph (3)(B), that 
individual may subsequently cancel such election, in which case 
additional optional insurance shall be determined as if the individual 
had originally made an election under paragraph (3)(A).''; and
            (2) in the second sentence of subsection (d)(1) by 
        inserting ``if insurance is continued as provided in 
        subparagraph (A) of paragraph (3),'' after ``except that,''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the 120th day after the date of the enactment of this Act and 
shall apply to employees who become eligible, on or after such 120th 
day, to continue additional optional insurance during retirement or 
receipt of compensation.

                  TITLE IV--REORGANIZATION FLEXIBILITY

SEC. 401. VOLUNTARY REDUCTIONS IN FORCE.

    Section 3502(f) of title 5, United States Code, is amended to read 
as follows:
    ``(f)(1) The head of an Executive agency or military department 
may, in accordance with regulations prescribed by the Office of 
Personnel Management--
            ``(A) separate from service any employee who volunteers to 
        be separated under this subparagraph even though the employee 
        is not otherwise subject to separation due to a reduction in 
        force; and
            ``(B) for each employee voluntarily separated under 
        subparagraph (A), retain an employee in a similar position who 
        would otherwise be separated due to a reduction in force.
    ``(2) The separation of an employee under paragraph (1)(A) shall be 
treated as an involuntary separation due to a reduction in force, 
except for purposes of priority placement programs and advance notice.
    ``(3) An employee with critical knowledge and skills (as defined by 
the head of the Executive agency or military department concerned) may 
not participate in a voluntary separation under paragraph (1)(A) if the 
agency or department head concerned determines that such participation 
would impair the performance of the mission of the agency or department 
(as applicable).
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) No authority under paragraph (1) may be exercised after 
September 30, 2001.''.

SEC. 402. NONREIMBURSABLE DETAILS TO FEDERAL AGENCIES BEFORE A 
              REDUCTION IN FORCE.

    (a) In General.--Section 3341 of title 5, United States Code, is 
amended to read as follows:
``Sec. 3341. Details; within Executive agencies and military 
              departments; employees affected by reduction in force
    ``(a) The head of an Executive agency or military department may 
detail employees, except those required by law to be engaged 
exclusively in some specific work, among the bureaus and offices of the 
agency or department.
    ``(b) The head of an Executive agency or military department may 
detail to duties in the same or another agency or department, on a 
nonreimbursable basis, an employee who has been identified by the 
employing agency as likely to be separated from the Federal service by 
reduction in force or who has received a specific notice of separation 
by reduction in force.
    ``(c)(1) Details under subsection (a)--
            ``(A) may not be for periods exceeding 120 days; and
            ``(B) may be renewed (1 or more times) by written order of 
        the head of the agency or department, in each particular case, 
        for periods not exceeding 120 days each.
    ``(2) Details under subsection (b)--
            ``(A) may not be for periods exceeding 90 days; and
            ``(B) may not be renewed.
    ``(d) The 120-day limitation under subsection (c)(1) for details 
and renewals of details does not apply to the Department of Defense in 
the case of a detail--
            ``(1) made in connection with the closure or realignment of 
        a military installation pursuant to a base closure law or an 
        organizational restructuring of the Department as part of a 
        reduction in the size of the armed forces or the civilian 
        workforce of the Department; and
            ``(2) in which the position to which the employee is 
        detailed is eliminated on or before the date of the closure, 
        realignment, or restructuring.
    ``(e) For purposes of this section--
            ``(1) the term `base closure law' means--
                    ``(A) section 2687 of title 10;
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act; and
                    ``(C) the Defense Base Closure and Realignment Act 
                of 1990; and
            ``(2) the term `military installation'--
                    ``(A) in the case of an installation covered by 
                section 2687 of title 10, has the meaning given such 
                term in subsection (e)(1) of such section;
                    ``(B) in the case of an installation covered by the 
                Act referred to in subparagraph (B) of paragraph (1), 
                has the meaning given such term in section 209(6) of 
                such Act; and
                    ``(C) in the case of an installation covered by the 
                Act referred to in subparagraph (C) of paragraph (1), 
                has the meaning given such term in section 2910(4) of 
                such Act.''.
    (b) Clerical Amendment.--The table of sections for chapter 33 of 
title 5, United States Code, is amended by striking the item relating 
to section 3341 and inserting the following:

``3341. Details; within Executive agencies and military departments; 
                            employees affected by reduction in 
                            force.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 30 days after the date of the enactment of this Act.

                    TITLE V--SOFT-LANDING PROVISIONS

SEC. 501. TEMPORARY CONTINUATION OF FEDERAL EMPLOYEES' LIFE INSURANCE.

    Section 8706 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(g)(1) Notwithstanding subsections (a) and (b) of this section, 
an employee whose coverage under this chapter would otherwise terminate 
due to a separation described in paragraph (3) shall be eligible to 
continue basic insurance coverage described in section 8704 in 
accordance with this subsection and regulations the Office may 
prescribe, if the employee arranges to pay currently into the Employees 
Life Insurance Fund, through the former employing agency or, if an 
annuitant, through the responsible retirement system, an amount equal 
to the sum of--
            ``(A) both employee and agency contributions which would be 
        payable if separation had not occurred; plus
            ``(B) an amount, determined under regulations prescribed by 
        the Office, to cover necessary administrative expenses, but not 
        to exceed 2 percent of the total amount under subparagraph (A).
    ``(2) Continued coverage under this subsection may not extend 
beyond the date which is 18 months after the effective date of the 
separation which entitles a former employee to coverage under this 
subsection. Termination of continued coverage under this subsection 
shall be subject to provision for temporary extension of life insurance 
coverage and for conversion to an individual policy of life insurance 
as provided by subsection (a). If an eligible employee does not make an 
election for purposes of this subsection, the employee's insurance will 
terminate as provided by subsection (a).
    ``(3)(A) This subsection shall apply to an employee who, on or 
after the date of enactment of this subsection and before the 
applicable date under subparagraph (B)--
            ``(i) is involuntarily separated from a position due to a 
        reduction in force, or separates voluntarily from a position 
        the employing agency determines is a `surplus position' as 
        defined by section 8905(d)(4)(C); and
            ``(ii) is insured for basic insurance under this chapter on 
        the date of separation.
    ``(B) The applicable date under this subparagraph is October 1, 
2001, except that, for purposes of any involuntary separation referred 
to in subparagraph (A) with respect to which appropriate specific 
notice is afforded to the affected employee before October 1, 2001, the 
applicable date under this subparagraph is February 1, 2002.''.

SEC. 502. CONTINUED ELIGIBILITY FOR HEALTH INSURANCE.

    (a) Continued Eligibility After Retirement.--Section 8905 of title 
5, United States Code, is amended--
            (1) in the first sentence of subsection (b) by striking 
        ``An'' and inserting ``Subject to subsection (g), an''; and
            (2) by adding at the end the following:
    ``(g)(1) The Office shall waive the requirements for continued 
enrollment under subsection (b) in the case of any individual who, on 
or after the date of the enactment of this subsection and before the 
applicable date under paragraph (2)--
            ``(A) is involuntarily separated from a position, or 
        voluntarily separated from a surplus position, in or under an 
        Executive agency due to a reduction in force,
            ``(B) based on the separation referred to in subparagraph 
        (A), retires on an immediate annuity under subchapter III of 
        chapter 83 or subchapter II of chapter 84, and
            ``(C) is enrolled in a health benefits plan under this 
        chapter as an employee immediately before retirement.
    ``(2) The applicable date under this paragraph is October 1, 2001, 
except that, for purposes of any involuntary separation referred to in 
paragraph (1)(A) with respect to which appropriate specific notice is 
afforded to the affected employee before October 1, 2001, the 
applicable date under this paragraph is February 1, 2002.
    ``(3) For purposes of this subsection, the term `surplus position', 
with respect to an agency, means any position determined in accordance 
with regulations under section 8905a(d)(4)(C) for such agency.''.
    (b) Temporary Continued Eligibility After Being Involuntarily 
Separated.--Section 8905a(d)(4) of title 5, United States Code, is 
amended--
            (1) in subparagraph (A) by striking ``the Department of 
        Defense'' and inserting ``an Executive agency''; and
            (2) by amending subparagraph (C) to read as follows:
    ``(C) For purposes of this paragraph, the term `surplus position' 
means a position that, as determined under regulations prescribed by 
the head of the agency involved, is identified during planning for a 
reduction in force as being no longer required and is designated for 
elimination during the reduction in force.''.

SEC. 503. JOB PLACEMENT AND COUNSELING SERVICES.

    (a) Authority for Services.--The head of each Executive agency may 
establish a program to provide job placement and counseling services to 
current and former employees.
    (b) Types of Services Authorized.--A program established under this 
section may include such services as--
            (1) career and personal counseling;
            (2) training in job search skills; and
            (3) job placement assistance, including assistance provided 
        through cooperative arrangements with State and local 
        employment service offices.
    (c) Eligibility for Services.--Services authorized by this section 
may be provided to--
            (1) current employees of the agency or, with the approval 
        of such other agency, any other agency; and
            (2) employees of the agency or, with the approval of such 
        other agency, any other agency who have been separated for less 
        than 1 year, if the separation was not a removal for cause on 
        charges of misconduct or delinquency.
    (d) Reimbursement for Costs.--The costs of services provided to 
current or former employees of another agency shall be reimbursed by 
that agency.

SEC. 504. EDUCATION AND RETRAINING INCENTIVES.

    (a) Non-Federal Employment Incentive Payments.--
            (1) Definitions.--For purposes of this subsection--
                    (A) the term ``eligible employee'' means an 
                employee who is involuntarily separated from a 
                position, or voluntarily separated from a surplus 
                position, in or under an Executive agency due to a 
                reduction in force, except that such term does not 
                include an employee who, at the time of separation, 
                meets the age and service requirements for an immediate 
                annuity under subchapter III of chapter 83 or chapter 
                84 of title 5, United States Code, other than under 
                section 8336(d) or 8414(b) of such title;
                    (B) the term ``non-Federal employer'' means an 
                employer other than the Government of the United States 
                or any agency or other instrumentality thereof;
                    (C) the term ``Executive agency'' has the meaning 
                given such term by section 105 of title 5, United 
                States Code; and
                    (D) the term ``surplus position'' has the meaning 
                given such term by section 8905(d)(4)(C) of title 5, 
                United States Code.
            (2) Authority.--The head of an Executive agency may pay 
        retraining and relocation incentive payments, in accordance 
        with this subsection, in order to facilitate the reemployment 
        of eligible employees who are separated from such agency.
            (3) Retraining incentive payment.--
                    (A) Agreement.--The head of an Executive agency may 
                enter into an agreement with a non-Federal employer 
                under which the non-Federal employer agrees--
                            (i) to employ an individual referred to in 
                        paragraph (2) for at least 12 months for a 
                        salary which is mutually agreeable to the 
                        employer and such individual; and
                            (ii) to certify to the agency head any 
                        costs incurred by the employer for any 
                        necessary training provided to such individual 
                        in connection with the employment by such 
                        employer.
                    (B) Payment of retraining incentive payment.--The 
                agency head shall pay a retraining incentive payment to 
                the non-Federal employer upon the employee's completion 
                of 12 months of continuous employment by that employer. 
                The agency head shall prescribe the amount of the 
                incentive payment.
                    (C) Proration rule.--The agency head shall pay a 
                prorated amount of the full retraining incentive 
                payment to the non-Federal employer for an employee who 
                does not remain employed by the non-Federal employer 
                for at least 12 months, but only if the employee 
                remains so employed for at least 6 months.
                    (D) Limitation.--In no event may the amount of the 
                retraining incentive payment paid for the training of 
                any individual exceed the amount certified for such 
                individual under subparagraph (A), subject to 
                subsection (c).
            (4) Relocation incentive payment.--The head of an agency 
        may pay a relocation incentive payment to an eligible employee 
        if it is necessary for the employee to relocate in order to 
        commence employment with a non-Federal employer. Subject to 
        subsection (e), the amount of the incentive payment shall not 
        exceed the amount that would be payable for travel, 
        transportation, and subsistence expenses under subchapter II of 
        chapter 57 of title 5, United States Code, including any 
        reimbursement authorized under section 5724b of such title, to 
        a Federal employee who transfers between the same locations as 
        the individual to whom the incentive payment is payable.
            (5) Duration.--No incentive payment may be paid for 
        training or relocation commencing after June 30, 2002.
            (6) Source.--An incentive payment under this subsection 
        shall be payable from appropriations or other funds available 
        to the agency for purposes of training (within the meaning of 
        section 4101(4) of title 5, United States Code).
    (b) Educational Assistance.--
            (1) Definitions.--For purposes of this subsection--
                    (A) the term ``eligible employee'' means an 
                eligible employee, within the meaning of subsection 
                (a), who --
                            (i) is employed full-time on a permanent 
                        basis;
                            (ii) has completed at least 3 years of 
                        current continuous service in any Executive 
                        agency or agencies; and
                            (iii) is admitted to an institution of 
                        higher education within 1 year after 
                        separation;
                    (B) the term ``Executive agency'' has the meaning 
                given such term by section 105 of title 5, United 
                States Code;
                    (C) the term ``educational assistance'' means 
                payments for educational assistance as provided in 
                section 127(c)(1) of the Internal Revenue Code of 1986 
                (26 U.S.C. 127(c)(1)); and
                    (D) the term ``institution of higher education'' 
                has the meaning given such term by section 1201(a) of 
                the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
            (2) Authority.--Under regulations prescribed by the Office 
        of Personnel Management, and subject to the limitations under 
        subsection (c), the head of an Executive agency may, in his or 
        her discretion, provide educational assistance under this 
        subsection to an eligible employee for a program of education 
        at an institution of higher education after the separation of 
        the employee.
            (3) Duration.--No educational assistance under this 
        subsection may be paid later than 10 years after the separation 
        of the eligible employee.
            (4) Source.--Educational assistance payments shall be 
        payable from appropriations or other funds which would have 
        been used to pay the salary of the eligible employee if the 
        employee had not separated.
            (5) Regulations.--The Office of Personnel Management shall 
        prescribe regulations for the administration of this 
        subsection. Such regulations shall provide that educational 
        assistance payments shall be limited to amounts necessary for 
        current tuition and fees only.
    (c) Limitations.--
            (1) Aggregate limitation.--No incentive payment or 
        educational assistance payment may be paid under this section 
        to or on behalf of any individual to the extent that such 
        amount would cause the aggregate amount otherwise paid or 
        payable under this section, to or on behalf of such individual, 
        to exceed $10,000.
            (2) Limitation relating to educational assistance.--The 
        total amount paid under subsection (b) to any individual--
                    (A) may not exceed $6,000 if the individual has at 
                least 3 but less than 4 years of qualifying service; 
                and
                    (B) may not exceed $8,000 if the individual has at 
                least 4 but less than 5 years of qualifying service.
            (3) Qualifying service.--For purposes of paragraph (2), the 
        term ``qualifying service'' means service performed as an 
        employee, within the meaning of section 2105 of title 5, United 
        States Code, on a permanent full-time or permanent part-time 
        basis (counting part-time service on a prorated basis).

                        TITLE VI--MISCELLANEOUS

SEC. 601. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY INSURANCE.

    (a) Authority.--Notwithstanding any other provision of law, any 
amounts appropriated, for fiscal year 1997 or any fiscal year 
thereafter, for salaries and expenses of Government employees may be 
used to reimburse any qualified employee for not to exceed one-half the 
costs incurred by such employee for professional liability insurance. A 
payment under this section shall be contingent upon the submission of 
such information or documentation as the employing agency may require.
    (b) Qualified Employee.--For purposes of this section, the term 
``qualified employee'' means--
            (1) an agency employee whose position is that of a law 
        enforcement officer;
            (2) an agency employee whose position is that of a 
        supervisor or management official; or
            (3) such other employee as the head of the agency considers 
        appropriate
    (c) Definitions.--For purposes of this section--
            (1) the term ``agency'' means an Executive agency, as 
        defined by section 105 of title 5, United States Code;
            (2) the term ``law enforcement officer'' means an employee, 
        the duties of whose position are primarily the investigation, 
        apprehension, prosecution, or detention of individuals 
        suspected or convicted of offenses against the criminal laws of 
        the United States, including any law enforcement officer under 
        section 8331(20) or 8401(17) of such title 5;
            (3) the terms ``supervisor'' and ``management official'' 
        have the respective meanings given them by section 7103(a) of 
        such title 5; and
            (4) the term ``professional liability insurance'' means 
        insurance which provides coverage for--
                    (A) legal liability for damages due to injuries to 
                other persons, damage to their property, or other 
                damage or loss to such other persons (including the 
                expenses of litigation and settlement) resulting from 
                or arising out of any tortious act, error, or omission 
                of the covered individual (whether common law, 
                statutory, or constitutional) while in the performance 
                of such individual's official duties as a qualified 
                employee; and
                    (B) the cost of legal representation for the 
                covered individual in connection with any 
                administrative or judicial proceeding (including any 
                investigation or disciplinary proceeding) relating to 
                any act, error, or omission of the covered individual 
                while in the performance of such individual's official 
                duties as a qualified employee, and other legal costs 
                and fees relating to any such administrative or 
                judicial proceeding.
    (d) Policy Limits.--
            (1) In general.--Reimbursement under this section shall not 
        be available except in the case of any professional liability 
        insurance policy providing for--
                    (A) not to exceed $1,000,000 of coverage for legal 
                liability (as described in subsection (c)(4)(A)) per 
                occurrence per year; and
                    (B) not to exceed $100,000 of coverage for the cost 
                of legal representation (as described in subsection 
                (c)(4)(B)) per occurrence per year.
            (2) Adjustments.--The head of an agency may from time to 
        time adjust the respective dollar amount limitations applicable 
        under this subsection to the extent that the head of such 
        agency considers appropriate to reflect inflation.

SEC. 602. EMPLOYMENT RIGHTS FOLLOWING CONVERSION TO CONTRACT.

    (a) In General.--An employee whose position is abolished because an 
activity performed by an Executive agency (within the meaning of 
section 105 of title 5, United States Code) is converted to contract 
shall receive from the contractor an offer in good faith of a right of 
first refusal of employment under the contract for a position for which 
the employee is deemed qualified based upon previous knowledge, skills, 
abilities, and experience. The contractor shall not offer employment 
under the contract to any person prior to having complied fully with 
this obligation, except as provided in subsection (b), or unless no 
employee whose position is abolished because such activity has been 
converted to contract can demonstrate appropriate qualifications for 
the position.
    (b) Exception.--Notwithstanding the contractor's obligation under 
subsection (a), the contractor is not required to offer a right of 
first refusal to any employee who, in the 12 months preceding 
conversion to contract, has been the subject of an adverse personnel 
action related to misconduct or has received a less than fully 
successful performance rating.
    (c) Limitation.--No employee shall have a right to more than 1 
offer under this section based on any particular separation due to the 
conversion of an activity to contract.
    (d) Regulations.--Regulations to carry out this section may be 
prescribed by the President.

SEC. 603. DEBARMENT OF HEALTH CARE PROVIDERS FOUND TO HAVE ENGAGED IN 
              FRAUDULENT PRACTICES.

    (a) In General.--Section 8902a of title 5, United States Code, is 
amended--
            (1) in subsection (a)(2)(A) by striking ``subsection (b) or 
        (c)'' and inserting ``subsection (b), (c), or (d)'';
            (2) in subsection (b)--
                    (A) by striking ``may'' and inserting ``shall'' in 
                the matter before paragraph (1); and
                    (B) by amending paragraph (5) to read as follows:
            ``(5) Any provider that is currently suspended or excluded 
        from participation under any program of the Federal Government 
        involving procurement or nonprocurement activities.'';
            (3) by redesignating subsections (c) through (i) as 
        subsections (d) through (j), respectively, and by inserting 
        after subsection (b) the following:
    ``(c) The Office may bar the following providers of health care 
services from participating in the program under this chapter:
            ``(1) Any provider--
                    ``(A) whose license to provide health care services 
                or supplies has been revoked, suspended, restricted, or 
                not renewed, by a State licensing authority for reasons 
                relating to the provider's professional competence, 
                professional performance, or financial integrity; or
                    ``(B) that surrendered such a license while a 
                formal disciplinary proceeding was pending before such 
                an authority, if the proceeding concerned the 
                provider's professional competence, professional 
                performance, or financial integrity.
            ``(2) Any provider that is an entity directly or indirectly 
        owned, or with a 5 percent or more controlling interest, by an 
        individual who is convicted of any offense described in 
        subsection (b), against whom a civil monetary penalty has been 
        assessed under subsection (d), or who has been excluded from 
        participation under this chapter.
            ``(3) Any provider that the Office determines, in 
        connection with claims presented under this chapter, has 
        charged for health care services or supplies in an amount 
        substantially in excess of such provider's customary charges 
        for such services or supplies (unless the Office finds there is 
        good cause for such charge), or charged for health care 
        services or supplies which are substantially in excess of the 
        needs of the covered individual or which are of a quality that 
        fails to meet professionally recognized standards for such 
        services or supplies.
            ``(4) Any provider that the Office determines has committed 
        acts described in subsection (d).'';
            (4) in subsection (d), as so redesignated by paragraph (3), 
        by amending paragraph (1) to read as follows:
            ``(1) in connection with claims presented under this 
        chapter, that a provider has charged for a health care service 
        or supply which the provider knows or should have known 
        involves--
                    ``(A) an item or service not provided as claimed;
                    ``(B) charges in violation of applicable charge 
                limitations under section 8904(b); or
                    ``(C) an item or service furnished during a period 
                in which the provider was excluded from participation 
                under this chapter pursuant to a determination by the 
                Office under this section, other than as permitted 
                under subsection (g)(2)(B);'';
            (5) in subsection (f), as so redesignated by paragraph (3), 
        by inserting ``(where such debarment is not mandatory)'' after 
        ``under this section'' the first place it appears;
            (6) in subsection (g), as so redesignated by paragraph 
        (3)--
                    (A) by striking ``(g)(1)'' and all that follows 
                through the end of paragraph (1) and inserting the 
                following:
    ``(g)(1)(A) Except as provided in subparagraph (B), debarment of a 
provider under subsection (b) or (c) shall be effective at such time 
and upon such reasonable notice to such provider, and to carriers and 
covered individuals, as shall be specified in regulations prescribed by 
the Office. Any such provider that is excluded from participation may 
request a hearing in accordance with subsection (h)(1).
    ``(B) Unless the Office determines that the health or safety of 
individuals receiving health care services warrants an earlier 
effective date, the Office shall not make a determination adverse to a 
provider under subsection (c)(4) or (d) until such provider has been 
given reasonable notice and an opportunity for the determination to be 
made after a hearing as provided in accordance with subsection 
(h)(1).'';
                    (B) in paragraph (3)--
                            (i) by inserting ``of debarment'' after 
                        ``notice''; and
                            (ii) by adding at the end the following: 
                        ``In the case of a debarment under paragraphs 
                        (1) through (4) of subsection (b), the minimum 
                        period of exclusion shall not be less than 3 
                        years, except as provided in paragraph 
                        (4)(B)(ii).''; and
                    (C) in paragraph (4)(B)(i)(I) by striking 
                ``subsection (b) or (c)'' and inserting ``subsection 
                (b), (c), or (d)'';
            (7) in subsection (h), as so redesignated by paragraph (3), 
        by striking ``(h)(1)'' and all that follows through the end of 
        paragraph (2) and inserting the following:
    ``(h)(1) Any provider of health care services or supplies that is 
the subject of an adverse determination by the Office under this 
section shall be entitled to reasonable notice and an opportunity to 
request a hearing of record, and to judicial review as provided in this 
subsection after the Office renders a final decision. The Office shall 
grant a request for a hearing upon a showing that due process rights 
have not previously been afforded with respect to any finding of fact 
which is relied upon as a cause for an adverse determination under this 
section. Such hearing shall be conducted without regard to subchapter 
II of chapter 5 and chapter 7 of this title by a hearing officer who 
shall be designated by the Director of the Office and who shall not 
otherwise have been involved in the adverse determination being 
appealed. A request for a hearing under this subsection must be filed 
within such period and in accordance with such procedures as the Office 
shall prescribe by regulation.
    ``(2) Any provider adversely affected by a final decision under 
paragraph (1) made after a hearing to which such provider was a party 
may seek review of such decision in the United States District Court 
for the District of Columbia or for the district in which the plaintiff 
resides or has his principal place of business by filing a notice of 
appeal in such court within 60 days from the date the decision is 
issued and simultaneously sending copies of such notice by certified 
mail to the Director of the Office and to the Attorney General. In 
answer to the appeal, the Director of the Office shall promptly file in 
such court a certified copy of the transcript of the record, if the 
Office conducted a hearing, and other evidence upon which the findings 
and decision complained of are based. The court shall have power to 
enter, upon the pleadings and evidence of record, a judgment affirming, 
modifying, or setting aside, in whole or in part, the decision of the 
Office, with or without remanding the cause for a rehearing. The 
district court shall not set aside or remand the decision of the Office 
unless there is not substantial evidence on the record, taken as a 
whole, to support the findings by the Office of a cause for action 
under this section or unless action taken by the Office constitutes an 
abuse of discretion.''; and
            (8) in subsection (i), as so redesignated by paragraph 
        (3)--
                    (A) by striking ``subsection (c)'' and inserting 
                ``subsection (d)''; and
                    (B) by adding at the end the following: ``The 
                amount of a penalty or assessment as finally determined 
                by the Office, or other amount the Office may agree to 
                in compromise, may be deducted from any sum then or 
                later owing by the United States to the party against 
                whom the penalty or assessment has been levied.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on the date of the enactment of this 
        Act.
            (2) Exceptions.--(A) Paragraphs (2) and (4) of section 
        8902a(c) of title 5, United States Code, as amended by 
        subsection (a), shall apply only to the extent that the 
        misconduct which is the basis for debarment thereunder occurs 
        after the date of the enactment of this Act.
            (B) Section 8902a(d)(1)(B) of title 5, United States Code, 
        as amended by subsection (a), shall apply only with respect to 
        charges which violate section 8904(b) of such title 5 for items 
        and services furnished after the date of the enactment of this 
        Act.
            (C) Section 8902a(g)(3) of title 5, United States Code, as 
        amended by subsection (a), shall apply only with respect to 
        debarments based on convictions occurring after the date of the 
        enactment of this Act.

SEC. 604. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A HEALTH PLAN 
              ADMINISTERED BY THE FEDERAL BANKING AGENCIES.

    Section 5 of the FEGLI Living Benefits Act (Public Law 103-409; 108 
Stat. 4232) is amended--
            (1) by inserting ``and the Board of Governors of the 
        Federal Reserve System'' after ``Office of the Comptroller of 
        the Currency and the Office of Thrift Supervision'' each place 
        it appears;
            (2) in subsection (a), by inserting ``or under a health 
        benefits plan not governed by chapter 89 of such title in which 
        employees and retirees of the Board of Governors of the Federal 
        Reserve System participated before January 4, 1997,'' after 
        ``January 7, 1995,'';
            (3) in subsection (b)--
                    (A) by inserting ``(in the case of the Comptroller 
                of the Currency and the Office of Thrift Supervision) 
                or on January 4, 1997 (in the case of the Board of 
                Governors of the Federal Reserve System)'' after ``on 
                January 7, 1995'' each place it appears;
                    (B) by inserting ``, or in which employees and 
                retirees of the Board of Governors of the Federal 
                Reserve System participate,'' after ``Office of the 
                Comptroller of the Currency or the Office of Thrift 
                Supervision'' each place it appears; and
                    (C) by inserting ``(in the case of the Comptroller 
                of the Currency and the Office of Thrift Supervision) 
                or after January 5, 1997 (in the case of the Board of 
                Governors of the Federal Reserve System)'' after 
                ``January 8, 1995'' each place it appears;
            (4) in subsection (b)(1)(A), by striking ``title;'' and 
        inserting ``title or a retiree (as defined in subsection 
        (e);''; and
            (5) by adding at the end the following:
    ``(e) Definition.--For purposes of this section, the term `retiree' 
shall mean an individual who is receiving benefits under the Retirement 
Plan for Employees of the Federal Reserve System.''.

SEC. 605. AMENDMENT TO PUBLIC LAW 104-134.

    Paragraph (3) of section 3110(b) of the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996 (Public Law 104-134; 110 
Stat. 1321-343) is amended to read as follows:
    ``(3) The Corporation shall pay to the Thrift Savings Fund such 
employee and agency contributions as are required by sections 8432 and 
8351 of title 5, United States Code, for those employees who elect to 
retain their coverage under the Civil Service Retirement System or the 
Federal Employees' Retirement System pursuant to paragraph (1).''.

SEC. 606. MISCELLANEOUS AMENDMENTS RELATING TO THE HEALTH BENEFITS 
              PROGRAM FOR FEDERAL EMPLOYEES.

    (a) Definition of a Carrier.--Paragraph (7) of section 8901 of 
title 5, United States Code, is amended by striking ``organization;'' 
and inserting ``organization and the Government-wide service benefit 
plan sponsored by an association of organizations described in this 
paragraph;''.
    (b) Service Benefit Plan.--Paragraph (1) of section 8903 of title 
5, United States Code, is amended by striking ``plan,'' and inserting 
``plan, underwritten by participating affiliates licensed in any number 
of States,''.
    (c) Preemption.--Section 8902(m) of title 5, United States Code, is 
amended by striking ``(m)(1)'' and all that follows through the end of 
paragraph (1) and inserting the following:
    ``(m)(1) The terms of any contract under this chapter which relate 
to the nature, provision, or extent of coverage or benefits (including 
payments with respect to benefits) shall supersede and preempt any 
State or local law, or any regulation issued thereunder, which relates 
to health insurance or plans.''.

SEC. 607. PAY FOR CERTAIN POSITIONS FORMERLY CLASSIFIED AT GS-18.

    Notwithstanding any other provision of law, the rate of basic pay 
for positions that were classified at GS-18 of the General Schedule on 
the date of the enactment of the Federal Employees Pay Comparability 
Act of 1990 shall be set and maintained at the rate equal to the 
highest rate of basic pay for the Senior Executive Service under 
section 5382(b) of title 5, United States Code.

SEC. 608. REPEAL OF SECTION 1307 OF TITLE 5 OF THE UNITED STATES CODE.

    (a) In General.--Section 1307 of title 5, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections for chapter 13 of 
title 5, United States Code, is amended by repealing the item relating 
to section 1307.

SEC. 609. EXTENSION OF CERTAIN PROCEDURAL AND APPEAL RIGHTS TO CERTAIN 
              PERSONNEL OF THE FEDERAL BUREAU OF INVESTIGATION.

    (a) In General.--Section 7511(b)(8) of title 5, United States Code, 
is amended by striking ``the Federal Bureau of Investigation,''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to any personnel action taking effect after the end of the 
45-day period beginning on the date of the enactment of this Act.

            Passed the House of Representatives September 27, 1996.

            Attest:

                                                                 Clerk.