[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1603 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1603

  To provide for reform relating to Federal employment, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 31, 2001

 Mr. Voinovich (for himself and Mr. Thompson) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
  To provide for reform relating to Federal employment, 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 ``Federal Human 
Capital Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                 TITLE I--CHIEF HUMAN CAPITAL OFFICERS

Sec. 101. Short title.
Sec. 102. Agency Chief Human Capital Officers.
Sec. 103. Compensation.
Sec. 104. Chief Human Capital Officers Council.
Sec. 105. Report on human capital metrics for the Federal Government.
Sec. 106. Effective date.
     TITLE II--REFORM RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 201. Inclusion of agency human capital strategic planning in 
                            program performance reports.
Sec. 202. Reform of the competitive service hiring process.
Sec. 203. Permanent extension, revision, and expansion of authorities 
                            for use of voluntary separation incentive 
                            pay and voluntary early retirement.
Sec. 204. Phased retirement for certain specialized positions.
Sec. 205. Streamlined critical pay authority.
Sec. 206. Expedited approval for appointments to positions classified 
                            above GS-15.
Sec. 207. Improvement and accountability of Federal employee 
                            performance.
      TITLE III--REFORMS RELATING TO THE SENIOR EXECUTIVE SERVICE

Sec. 301. Assignment of senior executives to private organizations.
Sec. 302. Repeal of recertification requirements of senior executives.
Sec. 303. Management and scientific or technical qualifications for 
                            certain senior level positions.
 TITLE IV--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 401. Agency training.
Sec. 402. Accrual of leave for newly hired Federal employees with 
                            qualified experience.
Sec. 403. Expansion of national security education program to include 
                            education for service governmentwide.

                 TITLE I--CHIEF HUMAN CAPITAL OFFICERS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Chief Human Capital Officers Act 
of 2001''.

SEC. 102. AGENCY CHIEF HUMAN CAPITAL OFFICERS.

    (a) In General.--Part II of title 5, United States Code, is amended 
by inserting after chapter 13 the following:

           ``Chapter 14--Agency Chief Human Capital Officers

``Sec.
``1401. Establishment of agency Chief Human Capital Officers.
``1402. Authority and functions of agency Chief Human Capital Officers.
``1403. Establishment of agency Deputy Chief Human Capital Officers.
``Sec. 1401. Establishment of agency Chief Human Capital Officers
    ``(a) There shall be within each agency described in subsection (b) 
an agency Chief Human Capital Officer. Each agency Chief Human Capital 
Officer shall--
            ``(1) for those agencies described in subsection (b)(1)--
                    ``(A) be appointed by the President, by and with 
                the advice and consent of the Senate; or
                    ``(B) be designated by the President, in 
                consultation with the head of the agency, from among 
                officials of the agency who are required by law to be 
                so appointed;
            ``(2) for those agencies described in subsection (b)(2)--
                    ``(A) be appointed by the head of the agency;
                    ``(B) be in the competitive service or the senior 
                executive service; and
                    ``(C) be career appointees; and
            ``(3) be appointed or designated, as applicable, from among 
        individuals who possess demonstrated ability in general 
        management of, and knowledge of and extensive practical 
        experience in human resources practices in large governmental 
        or business entities.
    ``(b)(1) The agencies referred to in subsection (a)(1) are the 
following:
            ``(A) The Department of Agriculture.
            ``(B) The Department of Commerce.
            ``(C) The Department of Defense.
            ``(D) The Department of Education.
            ``(E) The Department of Energy.
            ``(F) The Department of Health and Human Services.
            ``(G) The Department of Housing and Urban Development.
            ``(H) The Department of the Interior.
            ``(I) The Department of Justice.
            ``(J) The Department of Labor.
            ``(K) The Department of State.
            ``(L) The Department of Transportation.
            ``(M) The Department of the Treasury.
            ``(N) The Department of Veterans Affairs.
            ``(O) The Environmental Protection Agency.
            ``(P) The National Aeronautics and Space Administration.
    ``(2) The agencies referred to in subsection (a)(2) are the 
following:
            ``(A) The Agency for International Development.
            ``(B) The Federal Emergency Management Agency.
            ``(C) The General Services Administration.
            ``(D) The National Science Foundation.
            ``(E) The Nuclear Regulatory Commission.
            ``(F) The Office of Personnel Management.
            ``(G) The Small Business Administration.
``Sec. 1402. Authority and functions of agency Chief Human Capital 
              Officers
    ``(a) An agency Chief Human Capital Officer shall--
            ``(1) set the workforce development strategy of the agency;
            ``(2) assess current workforce characteristics and future 
        needs based on the strategic plan and mission of the agency;
            ``(3) align human resources policies with organization 
        mission, strategic goals, and performance outcomes;
            ``(4) develop and advocate a culture of continuous learning 
        to attract and retain employees with superior abilities;
            ``(5) identify best practices and benchmarking studies; and
            ``(6) create systems for measuring intellectual capital and 
        identifying links of that capital to organizational performance 
        and growth.
    ``(b)(1) In addition to the authority otherwise provided by this 
section, each agency Chief Human Capital Officer--
            ``(A) subject to paragraph (2), shall have access to all 
        records, reports, audits, reviews, documents, papers, 
        recommendations, or other material which are the property of 
        the agency or which are available to the agency, and which 
        relate to programs and operations with respect to which that 
        agency Chief Human Capital Officer has responsibilities under 
        this section;
            ``(B) may request such information or assistance as may be 
        necessary for carrying out the duties and responsibilities 
        provided by this section from any Federal, State, or local 
        governmental entity; and
            ``(C) to the extent and in such amounts as may be provided 
        in advance by appropriations Acts, may--
                    ``(i) enter into contracts and other arrangements 
                with public agencies and with private persons for the 
                preparation of studies, analyses, and other services; 
                and
                    ``(ii) make such payments as may be necessary to 
                carry out this section.
    ``(2) Except as provided in paragraph (1)(B), this subsection does 
not provide to an agency Chief Human Capital Officer any access greater 
than permitted under any other law to records, reports, audits, 
reviews, documents, papers, recommendations, or other material of any 
Office of Inspector General established under the Inspector General Act 
of 1978 (5 U.S.C. App.).
``Sec. 1403. Establishment of agency Deputy Chief Human Capital 
              Officers
    ``(a) There shall be within each agency described in section 
1401(b) an agency Deputy Chief Human Capital Officer, who shall report 
directly to the agency Chief Human Capital Officer on human resources 
management matters. The position of agency Deputy Chief Human Capital 
Officer shall be a career reserved position in the Senior Executive 
Service.
    ``(b) Consistent with qualification standards developed by, and in 
consultation with, the agency Chief Human Capital Officer, the head of 
each agency shall appoint as Deputy Chief Human Capital Officer an 
individual with demonstrated ability and experience in human resources, 
and not less than 6 years practical experience in human resources 
management at large governmental entities.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part II of title 5, United States Code, is amended by inserting after 
the item relating to chapter 13 the following:

``14. Agency Chief Human Capital Officers...................   1401.''.

SEC. 103. COMPENSATION.

    Section 5315 of title 5, United States Code, is amended by adding 
at the end the following:
            ``Chief Human Capital Officer, Department of Agriculture.
            ``Chief Human Capital Officer, Department of Commerce.
            ``Chief Human Capital Officer, Department of Defense.
            ``Chief Human Capital Officer, Department of Education.
            ``Chief Human Capital Officer, Department of Energy.
            ``Chief Human Capital Officer, Department of Health and 
        Human Services.
            ``Chief Human Capital Officer, Department of Housing and 
        Urban Development.
            ``Chief Human Capital Officer, Department of the Interior.
            ``Chief Human Capital Officer, Department of Justice.
            ``Chief Human Capital Officer, Department of Labor.
            ``Chief Human Capital Officer, Department of State.
            ``Chief Human Capital Officer, Department of 
        Transportation.
            ``Chief Human Capital Officer, Department of the Treasury.
            ``Chief Human Capital Officer, Department of Veterans 
        Affairs.
            ``Chief Human Capital Officer, Environmental Protection 
        Agency.
            ``Chief Human Capital Officer, National Aeronautics and 
        Space Administration.''.

SEC. 104. CHIEF HUMAN CAPITAL OFFICERS COUNCIL.

    (a) Establishment.--There is established a Chief Human Capital 
Officers Council, consisting of--
            (1) the Director of the Office of Personnel Management and 
        the Deputy Director of the Office of Personnel Management, who 
        shall act as co-chairpersons of the council; and
            (2) each of the agency Chief Human Capital Officers 
        appointed under section 1401 of title 5, United States Code, as 
        added by this Act.
    (b) Functions.--The Chief Human Capital Officers Council shall meet 
periodically to advise and coordinate the activities of the agencies of 
its members on such matters as modernization of human resources 
systems, improved quality of human resources information, and 
legislation affecting human resources operations and organizations.

SEC. 105. REPORT ON HUMAN CAPITAL METRICS FOR THE FEDERAL GOVERNMENT.

    (a) In General.--The Office of Personnel Management shall enter 
into a contract with the National Academy of Public Administration to 
conduct a study and prepare a report on the feasibility and 
desirability of developing human capital metrics for use by the Federal 
Government.
    (b) Contents.--The report under subsection (a) shall examine the 
feasibility and desirability of developing a proposed set of metrics 
that--
            (1) may be applied to the Federal Government human capital 
        process;
            (2) provides for the basic quantitative analysis and 
        measurement for human capital that are necessary for reform 
        efforts;
            (3) provides for standardized measurements of--
                    (A) the efficiency of the human capital process of 
                a Federal agency; and
                    (B) the success of a Federal agency in achieving 
                human capital objectives;
            (4) provides for an accurate comparison among agencies to 
        encourage management focus on human capital issues; and
            (5) may be used as the basis for regular reports prepared 
        by Chief Human Capital Officers.
    (c) Submission of Report.--Not later than 1 year after the date of 
enactment of this Act, the Office of Personnel Management shall submit 
the report prepared under this section to--
            (1) the Committee on Governmental Affairs of the Senate; 
        and
            (2) the Committee on Government Reform of the House of 
        Representatives.

SEC. 106. EFFECTIVE DATE.

    (a) In General.--Except as provided under subsection (b), this 
title shall take effect 180 days after the date of enactment of this 
Act.
    (b) Report.--Section 105 shall take effect on the date of enactment 
of this Act.

     TITLE II--REFORM RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

SEC. 201. INCLUSION OF AGENCY HUMAN CAPITAL STRATEGIC PLANNING IN 
              PROGRAM PERFORMANCE REPORTS.

    Section 1116(d) of title 31, United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) by redesignating paragraph (5) as paragraph (6); and
            (3) by inserting after paragraph (4) the following:
            ``(5) include a review of the performance goals and 
        evaluation of the performance plan relating to strategic plans 
        concerning human capital; and''.

SEC. 202. REFORM OF THE COMPETITIVE SERVICE HIRING PROCESS.

    (a) In General.--Chapter 33 of title 5, United States Code, is 
amended by inserting after section 3318 the following:
``Sec. 3319. Competitive service alternative hiring system
    ``(a)(1) This section shall apply only to competitive service 
positions in an Executive agency or an agency in the judicial branch.
    ``(2) Before the head of an agency may take any action under this 
section--
            ``(A) the head of that agency shall submit a plan to the 
        Office of Personnel Management detailing the implementation of 
        this section; and
            ``(B) the Office of Personnel Management shall approve the 
        plan.
    ``(3) If the Office of Personnel Management disapproves a plan 
under this subsection, the head of an agency may resubmit the plan with 
modifications for approval.
    ``(b) Notwithstanding sections 3309, 3313, 3317(a), and 3318(a), 
the head of an agency, consistent with subsection (a), may provide that 
applicants for positions in that agency may be evaluated according to a 
quality category rating system that divides qualified applicants into 2 
or more categories that are based on degrees of merit, rather than 
according to numerical ratings.
    ``(c) Each applicant who meets the minimum qualification 
requirements for a position shall be assigned to the appropriate 
category based on an evaluation of the quality of the knowledge, 
skills, and abilities of the applicant relative to successful 
performance in the position to be filled.
    ``(d) Within each quality category, applicants who are eligible for 
veterans' preference under section 2108 shall be listed ahead of the 
applicants who are not eligible for preference. Among preference 
eligibles, a preference eligible under section 2108(3) (C) through (G) 
shall be listed ahead of a preference eligible under section 2108(3) 
(A) and (B).
    ``(e)(1) Notwithstanding subsection (c), each applicant, except for 
applicants for scientific and professional positions at grade GS-9 or 
higher in the General Schedule, who meets the minimum qualifications 
requirements for the position and who is a preference eligible 
described in section 2108(3)(C) with a compensable service-connected 
disability of 10 percent or more, shall be listed in the top of the 
highest quality category ahead of other preference eligible applicants.
    ``(2) Applicants for scientific or professional positions at grade 
GS-9 or higher in the General Schedule shall be listed within the 
category grouping of such applicants, except that applicants who are 
eligible for veterans' preference under section 2108 shall be listed 
ahead of the applicants who are not eligible for preference.
    ``(3) Among preference eligibles, a preference eligible under 
section 2108(3) (C) through (G) shall be listed ahead of a preference 
eligible under section 2108(3) (A) and (B).
    ``(f) An appointing official may select any qualified applicant 
within the highest category, except that an appointing official may not 
pass over a preference eligible to select a nonpreference eligible in 
the same category unless the requirements of section 3312(b) or 3318(b) 
are satisfied. If fewer than 3 applicants have been assigned to the 
highest category, an appointing official may select any qualified 
applicant in the next lower category, or categories, if necessary to 
provide a group of at least 3 qualified applicants. An appointing 
official may not pass over a preference eligible to select a 
nonpreference eligible in a lower category.
    ``(g)(1) Notwithstanding section 3304(b), the head of an agency may 
appoint individuals into the competitive service to fill positions in 
that agency without competition if public notice is given and the 
positions meet 1 of the following criteria:
            ``(A) There is a severe shortage of qualified candidates.
            ``(B) There is a need for expedited hiring.
            ``(C) The position is unusual and requires special 
        qualifications.
            ``(D) The position has a historically high turnover rate.
    ``(2) The head of an agency may appoint individuals with 
exceptional academic qualifications or special experience to positions 
described under paragraph (1) at the following grade levels:
            ``(A) For positions for which the rate of basic pay does 
        not exceed the maximum rate payable for a position at GS-7 of 
        the General Schedule, individuals who qualify on the basis of 
        education shall possess a baccalaureate degree with a 
        cumulative grade point average of 3.5 or higher on a 4.0 scale 
        or the equivalent on another scale.
            ``(B) For positions for which the rate of basic pay exceeds 
        the maximum rate payable for a position at GS-7 of the General 
        Schedule, but does not exceed the maximum rate payable for a 
        position at GS-12 of the General Schedule, individuals who 
        qualify on the basis of education shall possess a graduate-
        level degree with a cumulative grade point average of 3.5 or 
        higher on a 4.0 scale or the equivalent on another scale.
    ``(3) Applicants who are eligible for veterans' preference under 
section 2108 shall be considered ahead of the applicants who are not 
eligible for preference. Among preference eligibles, a preference 
eligible under section 2108(3) (C) through (G) shall be listed ahead of 
a preference eligible under section 2108(3) (A) and (B). An appointing 
official may not pass over a preference eligible to select a 
nonpreference eligible unless the requirements of section 3312(b) or 
3318(b) are satisfied.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 5, United States Code, is amended by inserting 
after the item relating to section 3318 the following:

``3319. Competitive service alternative hiring system.''.

SEC. 203. PERMANENT EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES 
              FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND 
              VOLUNTARY EARLY RETIREMENT.

    (a) Voluntary Separation Incentive Payments.--
            (1) In general.--
                    (A) Amendment to title 5, united states code.--
                Chapter 35 of title 5, United States Code, is amended 
                by inserting after subchapter I the following:

        ``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS

``Sec. 3521. Definitions
    ``In this subchapter, the term--
            ``(1) `agency' means an Executive agency as defined under 
        section 105; and
            ``(2) `employee'--
                    ``(A) means an employee as defined under section 
                2105 employed by an agency and an individual employed 
                by a country committee established under section 
                8(b)(5) of the Soil Conservation and Domestic Allotment 
                Act (16 U.S.C. 590h(b)(5)) who--
                            ``(i) is serving under an appointment 
                        without time limitation; and
                            ``(ii) has been currently employed for a 
                        continuous period of at least 3 years; and
                    ``(B) shall not include--
                            ``(i) a reemployed annuitant under 
                        subchapter III of chapter 83 or chapter 84 or 
                        another retirement system for employees of the 
                        Government;
                            ``(ii) an employee having disability on the 
                        basis of which such employee is or would be 
                        eligible for disability retirement under 
                        subchapter III of chapter 83 or chapter 84 or 
                        another retirement system for employees of the 
                        Government;
                            ``(iii) an employee who is in receipt of a 
                        decision notice of involuntary separation for 
                        misconduct or unacceptable performance;
                            ``(iv) an employee who has previously 
                        received any voluntary separation incentive 
                        payment from the Federal Government under this 
                        subchapter or any other authority;
                            ``(v) an employee covered by statutory 
                        reemployment rights who is on transfer 
                        employment with another organization; or
                            ``(vi) unless an agency has waived a right 
                        to recover funds, any employee who--
                                    ``(I) during the 24-month period 
                                preceding the employee's date of 
                                separation, received and did not repay 
                                a recruitment or relocation bonus under 
                                section 5733;
                                    ``(II) within the 12-month period 
                                preceding the employee's date of 
                                separation, received and did not repay 
                                a retention allowance under section 
                                5754; or
                                    ``(III) within the 36-month period 
                                preceding the employee's date of 
                                separation, received and did not repay 
                                funds provided for student loan 
                                repayment under section 5379.
``Sec. 3522. Agency plans; approval
    ``(a) Before obligating any resources for voluntary separation 
incentive payments, the head of each agency shall submit to the Office 
of Management and Budget a plan outlining the intended use of such 
incentive payments and a proposed organizational chart for the agency 
once such incentive payments have been completed.
    ``(b) The agency's plan under subsection (a) shall include--
            ``(1) the specific positions and functions to be reduced or 
        eliminated;
            ``(2) a description of which categories of employees will 
        be offered incentives;
            ``(3) the time period during which incentives may be paid;
            ``(4) the number and amounts of voluntary separation 
        incentive payments to be offered; and
            ``(5) a description of how the agency will operate without 
        the eliminated positions and functions.
    ``(c) The Director of the Office of Management and Budget shall 
review each agency's plan and may make any appropriate modifications in 
the plan. A plan under this section may not be implemented without the 
approval of the Director.
``Sec. 3523. Authority to provide voluntary separation incentive 
              payments
    ``(a) A voluntary separation incentive payment under this 
subchapter may be paid to an employee only as provided in the agency's 
plan established under section 3522.
    ``(b) A voluntary incentive payment--
            ``(1) shall be offered to agency employees on the basis of 
        organizational unit, occupational series or level, geographic 
        location, specific window periods, other appropriate 
        nonpersonal factors, or a combination of such factors;
            ``(2) shall be paid in a lump sum after the employee's 
        separation;
            ``(3) shall be equal to the lesser of--
                    ``(A) an amount equal to the amount the employee 
                would be entitled to receive under section 5595(c) if 
                the employee were entitled to payment under such 
                section (without adjustment for any previous payment 
                made); or
                    ``(B) an amount determined by the agency head, not 
                to exceed $25,000;
            ``(4) may be made only in the case of an employee who 
        voluntarily separates (whether by retirement or resignation) 
        under this subchapter;
            ``(5) shall not be a basis for payment, and shall not be 
        included in the computation, of any other type of Government 
        benefit;
            ``(6) shall not be taken into account in determining the 
        amount of any severance pay to which the employee may be 
        entitled under section 5595, based on any other separation; and
            ``(7) shall be paid from appropriations or funds available 
        for the payment of the basic pay of the employee.
``Sec. 3524. Additional agency contributions to the Civil Service 
              Retirement and Disability Fund
    ``(a) In addition to any other payments which the agency is 
required to make under subchapter III of chapter 83 or chapter 84, the 
agency shall remit to the Office of Personnel Management for deposit in 
the Treasury of the United States to the credit of the Civil Service 
Retirement and Disability Fund an amount equal to 15 percent of the 
final basic pay of each employee of the agency who is covered under 
subchapter III of chapter 83 and chapter 84 to whom a voluntary 
separation incentive has been paid under this subchapter or any other 
authority.
    ``(b) For the purpose of subsection (a), the term `final basic pay' 
with respect to an employee means the total amount of basic pay which 
would be payable for a year of service by that employee, computed using 
the employee's final rate of basic pay, and, if last serving on other 
than full-time basis, with an appropriate adjustment therefor.
``Sec. 3525. Effect of subsequent employment with the Government
    ``(a) An individual who has received a voluntary separation 
incentive payment under this subchapter and accepts any employment for 
compensation with the Government of the United States within 5 years 
after the date of the separation on which the payment is based shall be 
required to pay, before the individual's first day of employment, the 
entire amount of the incentive payment to the agency that paid the 
incentive payment.
    ``(b)(1) If the employment under this section is with an agency 
(other than the General Accounting Office, the United States Postal 
Service, or the Postal Rate Commission) the Director of the Office of 
Personnel Management may, at the request of the head of the agency, 
waive the repayment if--
            ``(A) the individual involved possesses unique abilities 
        and is the only qualified applicant available for the position; 
        or
            ``(B) in the case of an emergency involving a direct threat 
        to life or property, the individual--
                    ``(i) has skills directly related to resolving the 
                emergency; and
                    ``(ii) will serve on a temporary basis only so long 
                as that individual's services are made necessary by the 
                emergency.
    ``(2) If the employment under this section is with an entity in the 
legislative branch, the head of the entity or the appointing official 
may waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position.
    ``(3) If the employment under this section is with the judicial 
branch, the Director of the Administrative Office of the United States 
Courts may waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
``Sec. 3526. Regulations
    ``The Office of Personnel Management, in consultation with the 
Office of Management and Budget, may prescribe regulations to carry out 
this subchapter.''.
                    (B) Technical and conforming amendments.--Chapter 
                35 of title 5, United States Code, is amended--
                            (i) by striking the chapter heading and 
                        inserting the following:

  ``CHAPTER 35--RETENTION PREFERENCE, VOLUNTARY SEPARATION INCENTIVE 
             PAYMENTS, RESTORATION, AND REEMPLOYMENT''; and

                            (ii) in the table of sections by inserting 
                        after the item relating to section 3504 the 
                        following:

        ``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS

``3521. Definitions.
``3522. Agency plans; approval.
``3523. Authority to provide voluntary separation incentive payments.
``3524. Additional agency contributions to the Civil Service Retirement 
                            and Disability Fund.
``3525. Effect of subsequent employment with the Government.
``3526. Regulations.''.
            (2) Administrative office of the united states courts.--The 
        Director of the Administrative Office of the United States 
        Courts may, by regulation, establish a program substantially 
        similar to the program established under section 2 for 
        individuals serving in the judicial branch.
            (3) Continuation of other authority.--Any agency exercising 
        any voluntary separation incentive authority in effect on the 
        effective date of this Act may continue to offer voluntary 
        separation incentives consistent with that authority until that 
        authority expires.
            (4) Effective date.--This subsection shall take effect 60 
        days after the date of enactment of this Act.
    (b) Federal Employee Voluntary Early Retirement.--
            (1) Civil service retirement system.--Section 8336(d)(2) of 
        title 5, United States Code, is amended to read as follows:
            ``(2)(A) has been employed continuously, by the agency in 
        which the employee is serving, for at least the 31-day period 
        ending on the date on which such agency requests the 
        determination referred to in subparagraph (D);
            ``(B) is serving under an appointment that is not time 
        limited;
            ``(C) has not been duly notified that such employee is to 
        be involuntarily separated for misconduct or unacceptable 
        performance;
            ``(D) is separated from the service voluntarily during a 
        period in which, as determined by the Office of Personnel 
        Management (upon request of the agency) under regulations 
        prescribed by the Office--
                    ``(i) such agency (or, if applicable, the component 
                in which the employee is serving) is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function; and
                    ``(ii) a significant percentage of the employees 
                serving in such agency (or component) will be separated 
                or subject to an immediate reduction in the rate of 
                basic pay (without regard to subchapter VI of chapter 
                53, or comparable provisions); and
            ``(E) as determined by the agency under regulations 
        prescribed by the Office, is within the scope of the offer of 
        voluntary early retirement, which may be made on the basis of--
                    ``(i) one or more organizational units;
                    ``(ii) one or more occupational series or levels;
                    ``(iii) one or more geographical locations;
                    ``(iv) other similar nonpersonal factors the Office 
                determines appropriate; or
                    ``(v) any appropriate combination of such 
                factors;''.
            (2) Federal employees' retirement system.--Section 
        8414(b)(1)(B) of title 5, United States Code, is amended to 
        read as follows:
            ``(B)(i) has been employed continuously, by the agency in 
        which the employee is serving, for at least the 31-day period 
        ending on the date on which such agency requests the 
        determination referred to in clause (iv);
            ``(ii) is serving under an appointment that is not time 
        limited;
            ``(iii) has not been duly notified that such employee is to 
        be involuntarily separated for misconduct or unacceptable 
        performance;
            ``(iv) is separated from the service voluntarily during a 
        period in which, as determined by the Office of Personnel 
        Management (upon request of the agency) under regulations 
        prescribed by the Office--
                    ``(I) such agency (or, if applicable, the component 
                in which the employee is serving) is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function; and
                    ``(II) a significant percentage of the employees 
                serving in such agency (or component) will be separated 
                or subject to an immediate reduction in the rate of 
                basic pay (without regard to subchapter VI of chapter 
                53, or comparable provisions); and
            ``(v) as determined by the agency under regulations 
        prescribed by the Office, is within the scope of the offer of 
        voluntary early retirement, which may be made on the basis of--
                    ``(I) one or more organizational units;
                    ``(II) one or more occupational series or levels;
                    ``(III) one or more geographical locations;
                    ``(IV) other similar nonpersonal factors the Office 
                determines appropriate; or
                    ``(V) any appropriate combination of such 
                factors;''.
            (3) Regulations.--The Office of Personnel Management may 
        prescribe regulations to carry out this subsection.

SEC. 204. PHASED RETIREMENT FOR CERTAIN SPECIALIZED POSITIONS.

    (a) Civil Service Retirement System.--Section 8344 of title 5, 
United States Code, is amended--
            (1) in subsection (l)--
                    (A) in paragraph (1), by striking ``(k)'' and 
                inserting ``(l)''; and
                    (B) in paragraph (2), by striking ``or (k)'' and 
                inserting ``(k), or (l)'';
            (2) by redesignating subsection (l) as subsection (m); and
            (3) by inserting after subsection (k) the following:
    ``(l) The head of an Executive agency may waive the application of 
this section with respect to a reemployed annuitant, if--
            ``(1) the annuitant is reemployed--
                    ``(A) within 180 days after separation from service 
                with the agency from which the annuitant retired; and
                    ``(B) for the purpose of providing a period of 
                transition between the annuitant and the employee who 
                will permanently perform the former duties of the 
                annuitant;
            ``(2) the reemployment--
                    ``(A)(i) is under section 3104, 3133, or 5108; or
                    ``(ii) is in a position at GS-13, GS-14, or GS-15 
                of the General Schedule;
                    ``(B) is on a part-time basis not to exceed 1,040 
                hours annually; and
                    ``(C) does not exceed a period of 2 calendar years; 
                and
            ``(3) the annuitant is not a disability annuitant.''.
    (b) Federal Employees Retirement System.--Section 8468 of title 5, 
United States Code, is amended--
            (1) in subsection (i)--
                    (A) in paragraph (1), by striking ``(h)'' and 
                inserting ``(i)''; and
                    (B) in paragraph (2), by striking ``or (h)'' and 
                inserting ``(h), or (i)'';
            (2) by redesignating subsection (i) as subsection (j); and
            (3) by inserting after subsection (h) the following:
    ``(i) The head of an Executive agency may waive the application of 
this section with respect to a reemployed annuitant, if--
            ``(1) the annuitant is reemployed--
                    ``(A) within 180 days after separation from service 
                with the agency from which the annuitant retired; and
                    ``(B) for the purpose of providing a period of 
                transition between the annuitant and the employee who 
                will permanently perform the former duties of the 
                annuitant;
            ``(2) the reemployment--
                    ``(A)(i) is under section 3104, 3133, or 5108; or
                    ``(ii) is in a position at GS-13, GS-14, or GS-15 
                of the General Schedule;
                    ``(B) is on a part-time basis not to exceed 1,040 
                hours annually; and
                    ``(C) does not exceed a period of 2 calendar years; 
                and
            ``(3) the annuitant is not a disability annuitant.''.

SEC. 205. STREAMLINED CRITICAL PAY AUTHORITY.

    (a) In General.--Chapter 53 of title 5, United States Code, is 
amended by inserting after section 5377 the following:
``Sec. 5377a. Streamlined critical pay authority
    ``(a) In this section, the term `agency' means an Executive agency 
as defined under section 105.
    ``(b) Notwithstanding the provisions of this title governing 
appointments in the competitive service or the Senior Executive Service 
and chapters 51 and 53 (relating to classification and pay rates), the 
head of an agency may, for a period of 10 years after the effective 
date of this section, establish, fix the compensation of, and appoint 
individuals to, designated critical administrative, technical, and 
professional positions needed to carry out the functions of that 
agency, if--
            ``(1) the positions--
                    ``(A) require expertise of an extremely high level 
                in an administrative, technical, or professional field; 
                and
                    ``(B) are critical to the agency's successful 
                accomplishment of an important mission;
            ``(2) the exercise of the authority is necessary to recruit 
        or retain an individual exceptionally well qualified for the 
        position;
            ``(3) the number of such positions for an agency at any one 
        time does not exceed 1 position for every 3,000 employees 
        employed by that agency;
            ``(4) the designation of such positions is approved by the 
        head of the agency;
            ``(5) the terms of such appointments are limited to no more 
        than 4 years;
            ``(6) the appointees to such positions were not employees 
        of that agency before the effective date of this section;
            ``(7) the total annual compensation for any appointee to 
        such positions does not exceed the highest total annual 
        compensation payable at the rate determined under section 104 
        of title 3; and
            ``(8) all such positions are excluded from the collective 
        bargaining unit.
    ``(c) Individuals appointed under this section shall not be 
considered to be employees for purposes of subchapter II of chapter 
75.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 5, United States Code, is amended by inserting 
after the item relating to section 5377 the following:

``5377a. Streamlined critical pay authority.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect 90 days after the date of enactment of this Act.

SEC. 206. EXPEDITED APPROVAL FOR APPOINTMENTS TO POSITIONS CLASSIFIED 
              ABOVE GS-15.

    Section 3324(a) of title 5, United States Code, is amended by 
inserting after the first sentence ``Not later than 30 days after 
receipt of a request for approval under this section, the Office of 
Personnel Management shall make a decision on that approval.''.

SEC. 207. IMPROVEMENT AND ACCOUNTABILITY OF FEDERAL EMPLOYEE 
              PERFORMANCE.

    (a) Actions Based on Unacceptable Performance.--Section 
4303(b)(1)(A) of title 4303 of title 5, United States Code, is amended 
by striking ``30 days'' and inserting ``15 days''.
    (b) Study on Disciplinary and Termination Process.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the General Accounting Office shall--
                    (A) conduct a study on the disciplinary and 
                termination process relating to Federal employees with 
                unacceptable performances; and
                    (B) submit a report on the study, including 
                findings and recommendations to--
                            (i) the Office of Personnel Management;
                            (ii) the Committee on Governmental Affairs 
                        of the Senate; and
                            (iii) the Committee on Government Reform of 
                        the House of Representatives.
            (2) Content.--The study under this subsection shall--
                    (A) evaluate the disciplinary and termination 
                process relating to Federal employees; and
                    (B) make recommendations on modifying and 
                streamlining that process to provide for greater 
                accountability for Federal employees in meeting 
                established performance standards.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the General Accounting Office such sums 
        as may be necessary to carry out this subsection.

      TITLE III--REFORMS RELATING TO THE SENIOR EXECUTIVE SERVICE

SEC. 301. ASSIGNMENT OF SENIOR EXECUTIVES TO PRIVATE ORGANIZATIONS.

    (a) In General.--Chapter 33 of title 5, United States Code, is 
amended by adding at the end the following:

         ``SUBCHAPTER IX--ASSIGNMENTS TO PRIVATE ORGANIZATIONS

``Sec. 3398. Definitions
    ``In this subchapter, the term--
            ``(1) `agency' means--
                    ``(A) except for purposes of paragraph (2), an 
                agency as defined under section 3132; and
                    ``(B) for purposes of paragraph (2), each authority 
                of the Government of the United States, whether or not 
                it is within or subject to review by another agency;
            ``(2) `organization' means any private entity that is not 
        an agency or a State or local government; and
            ``(3) `senior executive' means a member of the Senior 
        Executive Service who, at the time of an assignment under this 
        subchapter is serving in a career reserved position as defined 
        under section 3132(a)(8).
``Sec. 3398a. General provisions
    ``(a)(1) On request from or with the concurrence of an 
organization, and with the consent of the senior executive concerned, 
the head of an agency may arrange for the assignment of a senior 
executive of that agency to an organization for work of mutual concern 
to that agency and the organization that the head of the agency 
determines will be beneficial to both.
    ``(2) The period of an assignment under this subchapter may not 
exceed 1 year. The head of an agency may extend the period of 
assignment for not more than 1 additional year.
    ``(b)(1) A senior executive of an agency may be assigned under this 
subchapter only if the senior executive agrees, as a condition of 
accepting an assignment under this subchapter, to serve in the civil 
service upon the completion of the assignment for a period equal to the 
length of the assignment.
    ``(2) Each agreement required under paragraph (1) shall provide 
that in the event the senior executive fails to carry out the agreement 
(except for good and sufficient reason, as determined by the head of 
the agency from which assigned) the senior executive shall be liable to 
the United States for payment of all expenses (excluding salary) of the 
assignment. The amount shall be treated as a debt due the United 
States.
``Sec. 3398b. Assignment of senior executives to organizations
    ``(a)(1) A senior executive of an agency assigned to an 
organization under this subchapter is deemed, during the assignment, to 
be either--
            ``(A) on detail to a regular work assignment in that 
        agency; or
            ``(B) on leave without pay from that senior executive's 
        position in the agency.
    ``(2) A senior executive assigned either on detail or on leave 
without pay remains an employee of that agency.
    ``(3) The Federal Tort Claims Act and any other Federal tort 
liability statute apply to a senior executive so assigned.
    ``(4) The supervision of the duties of a senior executive on detail 
may be governed by agreement between the agency and the organization 
concerned.
    ``(b) The assignment of a senior executive of an agency either on 
detail or on leave without pay to an organization under this subchapter 
may be made with or without reimbursement by the organization for the 
travel and transportation expenses to or from the place of 
assignment and for the pay, or supplemental pay, or a part thereof, of 
the senior executive during assignment. Any reimbursements shall be 
credited to the appropriation of the agency used for paying the travel 
and transportation expenses or pay.
    ``(c) For any senior executive so assigned and on leave without 
pay--
            ``(1) if the rate of pay for that senior executive's 
        employment by the organization is less than the rate of pay the 
        senior executive would have received had he continued in his 
        regular assignment in the agency, the senior executive is 
        entitled to receive supplemental pay from the agency in an 
        amount equal to the difference between the organization rate 
        and the agency rate;
            ``(2) the senior executive is entitled to annual and sick 
        leave to the same extent as if the senior executive had 
        continued in regular assignment in the agency; and
            ``(3) the senior executive is entitled, notwithstanding any 
        other law--
                    ``(A) to continuation of insurance under chapter 
                87, and coverage under chapter 89 or other applicable 
                authority, if the senior executive pays currently into 
                the Employee's Life Insurance Fund and the Employee's 
                Health Benefits Fund or other applicable health 
                benefits system (through the employing agency) the 
                amount of the employee contributions;
                    ``(B) to credit the period of assignment under this 
                subchapter toward periodic step-increases, retention, 
                and leave accrual purposes, and, on payment into the 
                Civil Service Retirement and Disability Fund or other 
                applicable retirement system of the percentage of his 
                organization pay, and of any supplemental pay, that 
                would have been deducted from a like agency pay for the 
                period of the assignment and payment by the agency into 
                the fund or system of the amount that would have been 
                payable by the agency during the period of the 
                assignment with respect to a like agency pay, to treat 
                that senior executive's service during that period as 
                service of the type performed in the agency immediately 
                before that assignment; and
                    ``(C) for the purpose of subchapter I of chapter 
                85, to credit the service performed during the period 
                of assignment under this subchapter as Federal service, 
                and to consider organization pay (and any supplemental 
                pay) as Federal wages.
    ``(d) The agency shall deposit currently in the Employee's Life 
Insurance Fund, the Employee's Health Benefits Fund or other applicable 
health benefits system, respectively, the amount of the Government's 
contributions on account of service with respect to which employee 
contributions are collected under subsection (c) (3).
    ``(e) A senior executive so assigned and on leave without pay who 
dies or suffers disability as a result of personal injury sustained 
while in the performance of duty during an assignment under this 
subchapter shall be treated, for the purpose of subchapter I of chapter 
81, as though he were an employee as defined under section 8101 who had 
sustained the injury in the performance of duty.
``Sec. 3398c. Travel expenses
    ``(a) Appropriations of an agency are available to pay, or 
reimburse, a senior executive in accordance with--
            ``(1) subchapter I of chapter 57, for the expenses of--
                    ``(A) travel, including a per diem allowance, to 
                and from the assignment location;
                    ``(B) a per diem allowance at the assignment 
                location during the period of the assignment; and
                    ``(C) travel, including a per diem allowance, while 
                traveling on official business away from his designated 
                post of duty during the assignment when the head of the 
                agency considers the travel in the interest of the 
                United States;
            ``(2) section 5724, for the expenses of transportation of 
        his immediate family and of his household goods and personal 
        effects to and from the assignment location;
            ``(3) section 5724a(a), for the expenses of per diem 
        allowances for the immediate family of the senior executive to 
        and from the assignment location;
            ``(4) section 5724a(c), for subsistence expenses of the 
        senior executive and his immediate family while occupying 
        temporary quarters at the assignment location and on return to 
        his former post of duty;
            ``(5) section 5724a(g), to be used by the senior executive 
        for miscellaneous expenses related to change of station where 
        movement or storage of household goods is involved; and
            ``(6) section 5726(c), for the expenses of nontemporary 
        storage of household goods and personal effects in connection 
        with assignment at an isolated location.
    ``(b) Expenses under subsection (a), other than those under 
paragraph (1)(C) of that subsection, may not be allowed in connection 
with the assignment of a senior executive under this subchapter, unless 
and until the senior executive agrees in writing to complete the entire 
period of his assignment or 1 year, whichever is shorter, unless 
separated or reassigned for reasons beyond his control that are 
acceptable to the agency concerned. If the senior executive violates 
the agreement, the money spent by the United States for these expenses 
is recoverable from the senior executive as a debt due the United 
States.
    ``(c) Appropriations of an agency are available to pay expenses 
under section 5742 with respect to a senior executive assigned under 
this subchapter.
``Sec. 3398d. Regulations
    ``The President may prescribe regulations for the administration of 
this subchapter.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 5, United States Code, is amended by adding at the 
end the following:

         ``SUBCHAPTER IX--ASSIGNMENTS TO PRIVATE ORGANIZATIONS

``Sec.
``3398. Definitions.
``3398a. General provisions.
``3398b. Assignment of senior executives to organizations.
``3398c. Travel expenses.
``3398d. Regulations.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect 90 days after the date of enactment of this Act.

SEC. 302. REPEAL OF RECERTIFICATION REQUIREMENTS OF SENIOR EXECUTIVES.

    (a) In General.--Title 5, United States Code, is amended--
            (1) in chapter 33--
                    (A) in section 3393(g) by striking ``3393a,'';
                    (B) by repealing section 3393a; and
                    (C) in the table of sections by striking the item 
                relating to section 3393a;
            (2) in of chapter 35--
                    (A) in section 3592(a)--
                            (i) in paragraph (1) by inserting ``or'' at 
                        the end;
                            (ii) in paragraph (2) by striking ``or'' at 
                        the end;
                            (iii) by striking paragraph (3); and
                            (iv) by striking the last sentence;
                    (B) in section 3593(a) by amending paragraph (2) to 
                read as follows:
            ``(2) the appointee left the Senior Executive Service for 
        reasons other than misconduct, neglect of duty, malfeasance, or 
        less than fully successful executive performance as determined 
        under subchapter II of chapter 43.''; and
                    (C) in section 3594(b)--
                            (i) in paragraph (1) by inserting ``or'' at 
                        the end;
                            (ii) in paragraph (2) by striking ``or'' at 
                        the end; and
                            (iii) by striking paragraph (3);
            (3) in section 7701(c)(1)(A) by striking ``or removal from 
        the Senior Executive Service for failure to be recertified 
        under section 3393a'';
            (4) in chapter 83--
                    (A) in section 8336(h)(1) by striking ``for failure 
                to be recertified as a senior executive under section 
                3393a or''; and
                    (B) in section 8339(h), in the first sentence, by 
                striking ``, except that such reduction shall not apply 
                in the case of an employee retiring under section 
                8336(h) for failure to be recertified as a senior 
                executive''; and
            (5) in chapter 84--
                    (A) in section 8414(a)(1) by striking ``for failure 
                to be recertified as a senior executive under section 
                3393a or''; and
                    (B) in section 8421(a)(2) by striking ``, except 
                that an individual entitled to an annuity under section 
                8414(a) for failure to be recertified as a senior 
                executive shall be entitled to an annuity supplement 
                without regard to such applicable minimum retirement 
                age''.
    (b) Savings Provision.--Notwithstanding the amendments made by 
subsection (a)(2)(A), an appeal under the final sentence of section 
3592(a) of title 5, United States Code, that is pending on the day 
before the effective date of this section--
            (1) shall not abate by reason of the enactment of such 
        amendments; and
            (2) shall continue as if such amendments had not been 
        enacted.
    (c) Application.--The amendment made by subsection (a)(2)(B) shall 
not apply with respect to an individual who, before the effective date 
of this section, leaves the Senior Executive Service for failure to be 
recertified as a senior executive under section 3393a of title 5, 
United States Code.

SEC. 303. MANAGEMENT AND SCIENTIFIC OR TECHNICAL QUALIFICATIONS FOR 
              CERTAIN SENIOR LEVEL POSITIONS.

    (a) In General.--
            (1) Requirements for certain positions.--Chapter 51 of 
        title 5, United States Code, is amended by inserting after 
        section 5113 the following:
``Sec. 5114. Requirements of certain management, scientific, or 
              technical positions
    ``(a) In this section the term `covered position' means--
            ``(1) a position established under section 3104;
            ``(2) a position for which the rate of basic pay is fixed 
        under section 5377; or
            ``(3) a position that--
                    ``(A) is similar to a position described under 
                paragraph (1) or (2); and
                    ``(B) is designated by the head of an agency and 
                approved by the Office of Personnel Management.
    ``(b)(1) Notwithstanding any provision of this chapter or 
subchapters II or III of chapter 31, the head of an agency may waive 
any qualification, standard, description, classification, or similar 
requirement with respect to any employee in a covered position that--
            ``(A) relates to administration, management, supervision, 
        or personnel; or
            ``(B) does not relate to administration, management, 
        supervision, or personnel.
    ``(2) A waiver may not apply to an employee under both 
subparagraphs (A) and (B) of paragraph (1).''.
    (2) Technical and conforming amendments.--
            (A) Table of sections.--The table of sections for chapter 
        51 of title 5, United States Code, is amended by inserting 
        after the item relating to section 5113 the following:

``5114. Requirements of certain management, scientific, or technical 
                            positions.''.
            (B) Reference.--Section 5115 of title 5, United States 
        Code, is amended by striking ``except sections 5109 and 5114.'' 
        and inserting ``except sections 5109.''.
    (b) Senior Executive Service.--Section 3133 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(f) Requirements for a position authorized under this section may 
be waived under section 5114.''.
    (c) Federal Bureau of Investigation and Drug Enforcement 
Administration Senior Executive Service.--Section 3151 of title 5, 
United States Code, is amended by adding at the end the following:
    ``(f) Requirements for a position authorized under this section may 
be waived under section 5114.''.

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

SEC. 401. 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; Records Maintenance; 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
    ``(a) Each agency shall establish a position of training officer. 
The position shall be a career reserved position in the Senior 
Executive Service.
    ``(b) The training officer shall have responsibility for 
developing, coordinating, and administering training for the agency.
``Sec. 4121. Records maintenance
    ``Each agency shall maintain detailed records of all activities 
relating to training of employees.
``Sec. 4122. 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 relating to employees 
        with unacceptable performances.''.
            (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. Records maintenance.
``4122. Specific training programs.''.

    (c) Academic Degree Training.--
            (1) In general.--Section 4107 of title 5, United States 
        Code, is amended to read as follows:
``Sec. 4107. Academic degree training
    ``(a) Subject to subsection (b), an agency may select and assign an 
employee to academic degree training and may pay or reimburse the costs 
of academic degree training from appropriated or other available funds 
if such training--
            ``(1) contributes significantly to--
                    ``(A) meeting an identified agency training need;
                    ``(B) resolving an identified agency staffing 
                problem; or
                    ``(C) accomplishing goals in the agency's strategic 
                plan;
            ``(2) is part of a planned, systematic, and coordinated 
        agency employee development program linked to accomplishing the 
        agency's strategic goals; and
            ``(3) is accredited and is provided by a college or 
        university that is accredited by a nationally recognized body.
    ``(b) In exercising authority under subsection (a), an agency 
shall--
            ``(1) consistent with the merit system principles set forth 
        in paragraphs (2) and (7) of section 2301(b), take into 
        consideration the need to--
                    ``(A) maintain a balanced workforce in which women, 
                members of racial and ethnic minority groups, and 
                persons with disabilities are appropriately represented 
                in Government service; and
                    ``(B) provide employees effective education and 
                training to improve organizational and individual 
                performance;
            ``(2) assure that the training is not for the sole purpose 
        of providing an employee an opportunity to obtain an academic 
        degree or to qualify for appointment to a particular position 
        for which the academic degree is a basic requirement; and
            ``(3) assure that no authority under this subsection is 
        exercised on behalf of any employee occupying or seeking to 
        qualify for appointment to any position that is excepted from 
        the competitive service because of its confidential policy-
        determining, policy-making, or policy-advocating character.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 41 of title 5, United States Code, is 
        amended by striking the item relating to section 4107 and 
        inserting the following:

``4107. Academic degree training.''.
    (d) Agency Training as Separate Statement in Federal Budget.--
Section 1105(a) of title 31, United States Code, is amended by adding 
at the end the following:
            ``(34) a separate statement of the amount of appropriations 
        requested for training employees in each agency.''.

SEC. 402. ACCRUAL OF LEAVE FOR NEWLY HIRED FEDERAL EMPLOYEES WITH 
              QUALIFIED EXPERIENCE.

    (a) 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 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.''.
    (b) 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.

SEC. 403. EXPANSION OF NATIONAL SECURITY EDUCATION PROGRAM TO INCLUDE 
              EDUCATION FOR SERVICE GOVERNMENTWIDE.

    (a) Findings and Purposes.--Section 801 of the David L. Boren 
National Security Education Act of 1991 (title VIII of Public Law 102-
183; 50 U.S.C. 1901 note) is amended--
            (1) in subsection (b), by striking paragraph (7) and 
        inserting the following:
            ``(7) American colleges and universities must place new 
        emphasis on improving teaching in areas of discipline that are 
        critical to the national interests of the United States.''; and
            (2) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) To increase the quantity, diversity, and quality of 
        the teaching and learning of subjects in fields that are 
        critical to the national interests of the United States.''.
    (b) Scholarship, Fellowship, and Grant Program.--Section 802(a)(1) 
of that Act (50 U.S.C. 1902(a)) is amended by striking subparagraphs 
(A), (B), and (C) and inserting the following:
                    ``(A) awarding scholarships to undergraduate 
                students, and fellowships to graduate students, who are 
                United States citizens in order to enable students to 
                pursue education in the United States in areas of 
                discipline which will result in employment with the 
                Federal Government;
                    ``(B) awarding grants to institutions of higher 
                education to enable such institutions to establish, 
                operate, or improve programs that include areas of 
                discipline that are critical to the national interests 
                of the United States; and
                    ``(C) providing professional development 
                instruction to recipients of scholarships and 
                fellowships under the program to broaden the knowledge 
                of such recipients in areas of discipline relating to 
                service in the Federal Government.''.
    (c) National Security Education Board.--Section 803 of that Act (50 
U.S.C. 1903) is amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraph (7) as paragraph 
                (9);
                    (B) by inserting after paragraph (6) the following:
            ``(7) The Secretary of Treasury.
            ``(8) The Director of the Office of Personnel 
        Management.''; and
                    (C) by adding at the end the following:
            ``(10) The Director of the Office of Management and Budget, 
        who shall serve as an advisor to the Board.'';
            (2) in subsection (d)--
                    (A) in paragraph (4)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B), 
                        (C), and (D) as subparagraphs (A), (B), and 
                        (C), respectively;
                    (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (10) and (11), respectively; and
                    (C) by inserting after paragraph (6) the following:
            ``(7) Develop procedures for student loan repayments under 
        section 802A.
            ``(8) Develop requirements for professional development 
        instruction under section 802(a)(1)(C).
            ``(9) Establish performance review mechanisms to monitor 
        the benefits of the program and evaluate the cost and benefits 
        of the program.''.
    (d) National Security Education Trust Fund.--Section 804 of that 
Act (50 U.S.C. 1904) is amended--
            (1) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) for student loan repayments in accordance with 
        section 802A; and
            ``(4) for professional development instruction in 
        accordance with section 802(a)(1)(C).''; and
            (2) in subsection (e)(2), by inserting after ``section 
        802(b)(3)'' the following: ``, or recovered under section 
        802A(d)(4), ''.
    (e) Annual Report.--Section 806(b) of that Act (50 U.S.C. 1906(b)) 
is amended--
            (1) by striking paragraphs (1) and (5);
            (2) by redesignating paragraphs (2), (3), (4), and (6) as 
        paragraphs (1), (2), (3), and (5), respectively;
            (3) by inserting after paragraph (3), as so redesignated, 
        the following:
            ``(4) an analysis of the results of the program for the 
        previous fiscal year, and cumulatively, including--
                    ``(A) the percentage of individuals who received 
                assistance under the program who subsequently became 
                employees of the United States Government;
                    ``(B) in the case of individuals who did not 
                subsequently become employees of the United States 
                Government, an analysis of the reasons why they did not 
                become employees and an explanation as to what use, if 
                any, was made of the assistance by those recipients;
                    ``(C) the percentage of student loan repayment 
                recipients who separated from employment before the 
                period specified in their agreement; and
                    ``(D) the uses made of grants to educational 
                institutions under section 802(a)(1)(B);'';
            (4) in paragraph (5), as so redesignated, by striking 
        ``and'' at the end; and
            (5) by inserting after paragraph (5) the following:
            ``(6) the results of the performance review of the program 
        for the previous fiscal year conducted with the mechanism 
        established under section 803(d)(9), including any cost and 
        benefit analysis conducted as part of the review; and''.
                                 <all>