[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1166 Reported in Senate (RS)]






                                                       Calendar No. 275
108th CONGRESS
  1st Session
                                S. 1166

To establish a Department of Defense national security personnel system 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 2, 2003

  Ms. Collins (for herself, Mr. Levin, Mr. Voinovich, Mr. Sununu, Mr. 
 Stevens, and Mr. Akaka) introduced the following bill; which was read 
      twice and referred to the Committee on Governmental Affairs

                           September 5, 2003

                Reported by Ms. Collins, with amendments
                  [Insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
To establish a Department of Defense national security personnel system 
                        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.

    This Act may be cited as the ``National Security Personnel System 
Act''.

SEC. 2. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) In General.--(1) Subpart I of part III of title 5, United 
States Code, is amended by adding at the end the following new chapter:

 ``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Contracting for personal services.
``9904. Attracting highly qualified experts.
``9905. Special pay and benefits for certain employees outside the 
                            United States.
``Sec. 9901. Definitions
    ``For purposes of this chapter--
            ``(1) the term `Director' means the Director of the Office 
        of Personnel Management; and
            ``(2) the term `Secretary' means the Secretary of Defense.
``Sec. 9902. Establishment of human resources management system
    ``(a) In General.--(1) Notwithstanding any other provision of this 
part, the Secretary may, in regulations prescribed jointly with the 
Director, establish a human resources management system for some or all 
of the organizational or functional units of the Department of Defense. 
The human resources system established under authority of this section 
shall be referred to as the `National Security Personnel System'.
    ``(2) The National Security Personnel System established under this 
subsection shall not include--
            ``(A) the Aviation and Missile Research, Development and 
        Engineering Center;
            ``(B) the Army Research Laboratory;
            ``(C) the Medical Research and Materiel Command;
            ``(D) the Engineer Research and Development Center;
            ``(E) the Communications-Electronics Command;
            ``(F) the Soldier and Biological Chemical Command;
            ``(G) the Naval Sea Systems Command Centers;
            ``(H) the Naval Research Laboratory;
            ``(I) the Office of Naval Research; or
            ``(J) the Air Force Research Laboratory.
    ``(b) System Requirements.--The National Security Personnel System 
established under subsection (a) shall--
            ``(1) be flexible;
            ``(2) be contemporary;
            ``(3) not waive, modify, or otherwise affect--
                    ``(A) the public employment principles of merit and 
                fitness set forth in section 2301, including the 
                principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other 
                nonmerit considerations, equal pay for equal work, and 
                protection of employees against reprisal for 
                whistleblowing;
                    ``(B) any provision of section 2302, relating to 
                prohibited personnel practices;
                    ``(C)(i) any provision of law referred to in 
                section 2302(b) (1), (8), and (9); or
                    ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b) (1), 
                (8), and (9) by--
                            ``(I) providing for equal employment 
                        opportunity through affirmative action; or
                            ``(II) providing any right or remedy 
                        available to any employee or applicant for 
                        employment in the public service;
                    ``(D) any other provision of this part (as 
                described in subsection (c)); or
                    ``(E) any rule or regulation prescribed under any 
                provision of law referred to in this paragraph; and
            ``(4) not be limited by any specific law, authority, rule, 
        or regulation prescribed under this title that is waived in 
        regulations prescribed under this chapter.
    ``(c) Other Nonwaivable Provisions.--The other provisions of this 
part referred to in subsection (b)(3)(D) are (to the extent not 
otherwise specified in this title)--
            ``(1) subparts A, B, E, G, and H of this part; and
            ``(2) chapters 41, 45, 47, 55, 57, 59, 71, 72, 73, and 79, 
        and this chapter.
    ``(d) Limitations Relating to Pay.--(1) Nothing in this section 
shall constitute authority to modify the pay of any employee who serves 
in an Executive Schedule position under subchapter II of chapter 53 of 
this title.
    ``(2) Except as provided for in paragraph (1), the total amount in 
a calendar year of allowances, differentials, bonuses, awards, or other 
similar cash payments paid under this title to any employee who is paid 
under section 5376 or 5383 of this title or under title 10 or under 
other comparable pay authority established for payment of Department of 
Defense senior executive or equivalent employees may not exceed the 
total annual compensation payable to the Vice President under section 
104 of title 3.
    ``(e) Provisions To Ensure Collaboration With Employee 
Representatives.--(1) In order to ensure that the authority of this 
section is exercised in collaboration with, and in a manner that 
ensures the participation of, employee representatives in the planning, 
development, and implementation of the National Security Personnel 
System, the Secretary and the Director shall provide for the following:
            ``(A) The Secretary and the Director shall, with respect to 
        any proposed system or adjustment--
                    ``(i) provide to the employee representatives 
                representing any employees who might be affected a 
                written description of the proposed system or 
                adjustment (including the reasons why it is considered 
                necessary);
                    ``(ii) give such representatives at least 30 
                calendar days (unless extraordinary circumstances 
                require earlier action) to review and make 
                recommendations with respect to the proposal; and
                    ``(iii) give any recommendations received from such 
                representatives under clause (ii) full and fair 
                consideration in deciding whether or how to proceed 
                with the proposal.
            ``(B) Following receipt of recommendations, if any, from 
        such employee representatives with respect to a proposal 
        described in subparagraph (A), the Secretary and the Director 
        shall accept such modifications to the proposal in response to 
        the recommendations as they determine advisable and shall, with 
        respect to any parts of the proposal as to which they have not 
        accepted the recommendations--
                    ``(i) notify Congress of those parts of the 
                proposal, together with the recommendations of the 
                employee representatives;
                    ``(ii) meet and confer for not less than 30 
                calendar days with the employee representatives, in 
                order to attempt to reach agreement on whether or how 
                to proceed with those parts of the proposal; and
                    ``(iii) at the Secretary's option, or if requested 
                by a majority of the employee representatives 
                participating, use the services of the Federal 
                Mediation and Conciliation Service during such meet and 
                confer period to facilitate the process of attempting 
                to reach agreement.
            ``(C)(i) Any part of the proposal as to which the 
        representatives do not make a recommendation, or as to which 
        the recommendations are accepted by the Secretary and the 
        Director, may be implemented immediately.
            ``(ii) With respect to any parts of the proposal as to 
        which recommendations have been made but not accepted by the 
        Secretary and the Director, at any time after 30 calendar days 
        have elapsed since the initiation of the congressional 
        notification, consultation, and mediation procedures set forth 
        in subparagraph (B), if the Secretary, in his discretion, 
        determines that further consultation and mediation is unlikely 
        to produce agreement, the Secretary may implement any or all of 
        such parts (including any modifications made in response to the 
        recommendations as the Secretary determines advisable), but 
        only after 30 days have elapsed after notifying Congress of the 
        decision to implement the part or parts involved (as so 
        modified, if applicable).
            ``(iii) The Secretary shall notify Congress promptly of the 
        implementation of any part of the proposal and shall furnish 
        with such notice an explanation of the proposal, any changes 
        made to the proposal as a result of recommendations from the 
        employee representatives, and of the reasons why implementation 
        is appropriate under this subparagraph.
            ``(D) If a proposal described in subparagraph (A) is 
        implemented, the Secretary and the Director shall--
                    ``(i) develop a method for the employee 
                representatives to participate in any further planning 
                or development which might become necessary; and
                    ``(ii) give the employee representatives adequate 
                access to information to make that participation 
                productive.
    ``(2) The Secretary may, at the Secretary's discretion, engage in 
any and all collaboration activities described in this subsection at an 
organizational level above the level of exclusive recognition.
    ``(3) In the case of any employees who are not within a unit with 
respect to which a labor organization is accorded exclusive 
recognition, the Secretary and the Director may develop procedures for 
representation by any appropriate organization which represents a 
substantial percentage of those employees or, if none, in such other 
manner as may be appropriate, consistent with the purposes of this 
subsection.
    ``(f) Pay-for-Performance Evaluation System.--(1) The National 
Security Personnel System established in accordance with this chapter 
shall include a pay-for-performance evaluation system to better link 
individual pay to performance and provide an equitable method for 
appraising and compensating employees.
    ``(2) The regulations implementing this chapter shall--
            ``(A) group employees into pay bands in accordance with the 
        type of work that such employees perform and their level of 
        responsibility;
            ``(B) establish a performance rating process, which shall 
        include, at a minimum--
                    ``(i) rating periods;
                    ``(ii) communication and feedback requirements;
                    ``(iii) performance scoring systems;
                    ``(iv) a system for linking performance scores to 
                salary increases and performance incentives;
                    ``(v) a review process;
                    ``(vi) a process for addressing performance that 
                fails to meet expectations; and
                    ``(vii) a pay-out process;
            ``(C) establish an upper and lower salary level for each 
        pay band;
            ``(D) ensure that performance objectives are established 
        for individual position assignments and position 
        responsibilities; and
            ``(E) establish performance factors to be used to evaluate 
        the accomplishment of performance objectives and ensure that 
        comparable scores are assigned for comparable performance, 
        while accommodating diverse individual objectives.
    ``(3) For fiscal years 2004 through 2008, the overall amount 
allocated for compensation of the civilian employees of an 
organizational or functional unit of the Department of Defense that is 
included in the National Security Personnel System shall not be less 
than the amount of civilian pay that would have been allocated to such 
compensation under the General Schedule system, based on--
            ``(A) the number and mix of employees in such 
        organizational or functional unit prior to the conversion of 
        such employees to the National Security Personnel System; and
            ``(B) adjusted for normal step increases and rates of 
        promotion that would have been expected, had such employees 
remained in the General Schedule system.
    ``(4) The regulations implementing the National Security Personnel 
System shall provide a formula for calculating the overall amount to be 
allocated for fiscal years after fiscal year 2008 for compensation of 
the civilian employees of an organizational or functional unit of the 
Department of Defense that is included in the National Security 
Personnel System. The formula shall ensure that such employees are not 
disadvantaged in terms of the overall amount of pay available as a 
result of conversion to the National Security Personnel System, while 
providing flexibility to accommodate changes in the function of the 
organization, changes in the mix of employees performing those 
functions, and other changed circumstances that might impact pay 
levels.
    ``(5) Funds allocated for compensation of the civilian employees of 
an organizational or functional unit of the Department of Defense in 
accordance with paragraph (3) or (4) may not be made available for any 
other purpose unless the Secretary of Defense determines that such 
action is necessary in the national interest and submits a 
reprogramming notification in accordance with established procedures.
    ``(g) Performance Management System.--The Secretary of Defense 
shall develop and implement for organizational and functional units 
included in the National Security Personnel System, a performance 
management system that includes--
            ``(1) adherence to merit principles set forth in section 
        2301;
            ``(2) a fair, credible, and equitable system that results 
        in meaningful distinctions in individual employee performance;
            ``(3) a link between the performance management system and 
        the agency's strategic plan;
            ``(4) a means for ensuring employee involvement in the 
        design and implementation of the system;
            ``(5) adequate training and retraining for supervisors, 
        managers, and employees in the implementation and operation of 
        the performance management system;
            ``(6) a process for ensuring ongoing performance feedback 
        and dialogue between supervisors, managers, and employees 
        throughout the appraisal period, and setting timetables for 
        review;
            ``(7) effective transparency and accountability measures to 
        ensure that the management of the system is fair, credible, and 
        equitable, including appropriate independent reasonableness, 
        reviews, internal grievance procedures, internal assessments, 
        and employee surveys; and
            ``(8) a means for ensuring that adequate agency resources 
        are allocated for the design, implementation, and 
        administration of the performance management system.
    ``(h) Provisions Regarding National Level Bargaining.--(1) The 
National Security Personnel System implemented or modified under this 
chapter may include employees of the Department of Defense from any 
bargaining unit with respect to which a labor organization has been 
accorded exclusive recognition under chapter 71 of this title.
    ``(2) For issues impacting more than 1 bargaining unit so included 
under paragraph (1), the Secretary may bargain with a labor 
organization at an organizational level above the level of exclusive 
recognition. Any such bargaining shall--
            ``(A) be binding on all subordinate bargaining units of the 
        labor organization at the level of recognition and their 
        exclusive representatives, and the Department of Defense and 
        its subcomponents, without regard to levels of recognition;
            ``(B) supersede all other collective bargaining agreements 
        of the labor organization, including collective bargaining 
        agreements negotiated with an exclusive representative at the 
        level of recognition, except as otherwise determined by the 
        Secretary; and
            ``(C) not be subject to further negotiations with the labor 
        organization for any purpose, including bargaining at the level 
        of recognition, except as provided for by the Secretary.
    ``(3) The National Guard Bureau and the Army and Air Force National 
Guard are excluded from coverage under this subsection.
    ``(4) Any bargaining completed pursuant to this subsection with a 
labor organization not otherwise having national consultation rights 
with the Department of Defense or its subcomponents shall not create 
any obligation on the Department of Defense or its subcomponents to 
confer national consultation rights on such a labor organization.
    ``(i) Provisions Relating to Appellate Procedures.--(1) The 
Secretary--
            ``(A) may establish an appeals process that provides 
        employees of the Department of Defense organizational and 
        functional units that are included in the National Security 
        Personnel System fair treatment in any appeals that they bring 
        in decisions relating to their employment; and
            ``(B) shall in prescribing regulations for any such appeals 
        process--
                    ``(i) ensure that employees in the National 
                Security Personnel System are afforded the protections 
                of due process; and
                    ``(ii) toward that end, be required to consult with 
                the Merit Systems Protection Board before issuing any 
                such regulations.
    ``(2) Regulations implementing the appeals process may establish 
legal standards for adverse actions to be taken on the basis of 
employee misconduct or performance that fails to meet expectations. 
Such standards shall be consistent with the public employment 
principles of merit and fitness set forth in section 2301. Legal 
standards and precedents applied before the effective date of this 
section by the Merit Systems Protection Board and the courts under 
chapters 75 and 77 of this title shall apply to employees of 
organizational and functional units included in the National Security 
Personnel System, unless such standards and precedents are inconsistent 
with legal standards established under this paragraph.
    ``(3) An employee who is adversely affected by a final decision 
under the appeals process established under paragraph (1) shall have 
the right to petition the Merit Systems Protection Board for review of 
that decision. The Board may dismiss any petition that, in the view of 
the Board, does not raise substantial questions of fact or law. No 
personnel action shall be stayed and no interim relief shall be granted 
during the pendency of the Board's review unless specifically ordered 
by the Board.
    ``(4) The Board shall order such corrective action as the Board 
considers appropriate if the Board determines that the decision was--
            ``(A) arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with law;
            ``(B) obtained without procedures required by law, rule, or 
        regulation having been followed; or
            ``(C) unsupported by substantial evidence.
    ``(5) An employee who is adversely affected by a final order or 
decision of the Board may obtain judicial review of the order or 
decision as provided in section 7703. The Secretary of Defense may 
obtain judicial review of any final order or decision of the Board 
under the same terms and conditions as provided for the Director of the 
Office of Personnel Management under section 7703.
    ``(6) Nothing in this subsection shall be construed to authorize 
the waiver of any provision of law, including an appeals provision 
providing a right or remedy under section 2302(b) (1), (8), or (9), 
that is not otherwise waivable under subsection (a).
    ``(j) Phase-In.--(1) The Secretary of Defense is authorized to 
apply the National Security Personnel System established in accordance 
with subsection (a) to organizational or functional units including--
            ``(A) up to 120,000 civilian employees of the Department of 
        Defense in fiscal year 2004;
            ``(B) up to 240,000 civilian employees of the Department of 
        Defense in fiscal year 2005; and
            ``(C) more than 240,000 civilian employees in a fiscal year 
        after fiscal year 2005, if the Secretary of Defense determines 
        in accordance with subsection (a) that the Department has in 
        place--
                    ``(i) a performance management system that meets 
                the criteria specified in subsection (g); and
                    ``(ii) a pay formula that meets the criteria 
                specified in subsection (f).
    ``(2) Civilian employees in organizational or functional units 
participating in Department of Defense personnel demonstration projects 
shall be counted as participants in the National Security Personnel 
System for the purpose of the limitations established under paragraph 
(1).
    ``(k) Provisions Related to Separation and Retirement Incentives.--
(1) The Secretary may establish a program within the Department of 
Defense under which employees may be eligible for early retirement, 
offered separation incentive pay to separate from service voluntarily, 
or both. This authority may be used to reduce the number of personnel 
employed by the Department of Defense or to restructure the workforce 
to meet mission objectives without reducing the overall number of 
personnel. This authority is in addition to, and notwithstanding, any 
other authorities established by law or regulation for such programs.
    ``(2)(A) The Secretary may not authorize the payment of voluntary 
separation incentive pay under paragraph (1) to more than 10,000 
employees in any fiscal year, except that employees who receive 
voluntary separation incentive pay as a result of a closure or 
realignment of a military installation under the Defense Base Closure 
and Realignment Act of 1990 (title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) shall not be included in that number.
    ``(B) The Secretary shall prepare a report each fiscal year setting 
forth the number of employees who received such pay as a result of a 
closure or realignment of a military base as described under 
subparagraph (A).
    ``(C) The Secretary shall submit the report under subparagraph (B) 
to--
            ``(i) the Committee on the Armed Services and the Committee 
        on Government Affairs of the Senate; and
            ``(ii) the Committee on Armed Services and the Committee on 
        Government Reform of the House of Representatives.
    ``(3) For purposes of this section, the term `employee' means an 
employee of the Department of Defense, serving under an appointment 
without time limitation, except that such term does not include--
            ``(A) a reemployed annuitant under subchapter III of 
        chapter 83 or chapter 84 of this title, or another retirement 
        system for employees of the Federal Government;
            ``(B) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under any of the retirement systems referred to in paragraph 
        (1); or
            ``(C) for purposes of eligibility for separation incentives 
        under this section, an employee who is in receipt of a decision 
        notice of involuntary separation for misconduct or unacceptable 
        performance.
    ``(4) An employee who is at least 50 years of age and has completed 
20 years of service, or has at least 25 years of service, may, pursuant 
to regulations promulgated under this section, apply and be retired 
from the Department of Defense and receive benefits in accordance with 
chapter 83 or 84 if the employee has been employed continuously within 
the Department of Defense for more than 30 days before the date on 
which the determination to conduct a reduction or restructuring within 
1 or more Department of Defense components is approved pursuant to the 
system established under subsection (a).
    ``(5)(A) Separation pay shall be paid in a lump sum or in 
installments and shall be equal to the lesser of--
            ``(i) an amount equal to the amount the employee would be 
        entitled to receive under section 5595(c) of this title, if the 
        employee were entitled to payment under such section; or
            ``(ii) $25,000.
    ``(B) Separation pay shall not be a basis for payment, and shall 
not be included in the computation, of any other type of Government 
benefit. Separation pay shall not be taken into account for the purpose 
of determining the amount of any severance pay to which an individual 
may be entitled under section 5595 of this title, based on any other 
separation.
    ``(C) Separation pay, if paid in installments, shall cease to be 
paid upon the recipient's acceptance of employment by the Federal 
Government, or commencement of work under a personal services contract 
as described in paragraph (5).
    ``(6) An employee who receives separation pay under this section on 
the basis of a separation occurring on or after the date of the 
enactment of the Federal Workforce Restructuring Act of 1994 (Public 
Law 103-236; 108 Stat. 111) and accepts employment with the Government 
of the United States, or who commences work through a personal services 
contract with the United States within 5 years after the date of the 
separation on which payment of the separation pay is based, shall be 
required to repay the entire amount of the separation pay to the 
Department of Defense. If the employment is with an Executive agency 
(as defined by section 105 of this title) other than the Department of 
Defense, the Director may, at the request of the head of that agency, 
waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position. If the employment is within the Department of Defense, the 
Secretary may waive the repayment if the individual involved is the 
only qualified applicant available for the position. If the employment 
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. If the employment 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.
    ``(7) Under this program, early retirement and separation pay may 
be offered only pursuant to regulations established by the Secretary, 
subject to such limitations or conditions as the Secretary may require.
    ``(l) Provisions Relating to Hiring.--Notwithstanding subsection 
(c), the Secretary may exercise any hiring flexibilities that would 
otherwise be available to the Secretary under section 4703(a)(1). 
Veterans shall be offered preference in hiring.
``Sec. 9903. Contracting for personal services
    ``(a) Outside the United States.--The Secretary may contract with 
individuals for services to be performed outside the United States as 
determined by the Secretary to be necessary and appropriate for 
supporting the activities and programs of the Department of Defense 
outside the United States.
    ``(b) No Federal Employees.--Individuals employed by contract under 
subsection (a) shall not, by virtue of such employment, be considered 
employees of the United States Government for the purposes of--
            ``(1) any law administered by the Office of Personnel 
        Management; or
            ``(2) under the National Security Personnel System 
        established under this chapter.
    ``(c) Applicability of Law.--Any contract entered into under 
subsection (a) shall not be subject to any statutory provision 
prohibiting or restricting the use of personal service contracts.
``Sec. 9904. Attracting highly qualified experts
    ``(a) In General.--The Secretary may carry out a program using the 
authority provided in subsection (b) in order to attract highly 
qualified experts in needed occupations, as determined by the 
Secretary.
    ``(b) Authority.--Under the program, the Secretary may--
            ``(1) appoint personnel from outside the civil service and 
        uniformed services (as such terms are defined in section 2101 
        of this title) to positions in the Department of Defense 
        without regard to any provision of this title governing the 
        appointment of employees to positions in the Department of 
        Defense;
            ``(2) prescribe the rates of basic pay for positions to 
        which employees are appointed under paragraph (1) at rates not 
        in excess of the maximum rate of basic pay authorized for 
        senior-level positions under section 5376 of this title, as 
        increased by locality-based comparability payments under 
        section 5304 of this title, notwithstanding any provision of 
        this title governing the rates of pay or classification of 
        employees in the executive branch; and
            ``(3) pay any employee appointed under paragraph (1) 
        payments in addition to basic pay within the limits applicable 
        to the employee under subsection (d).
    ``(c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment made 
pursuant to this section may not exceed 5 years.
    ``(2) The Secretary may, in the case of a particular employee, 
extend the period to which service is limited under paragraph (1) by up 
to 1 additional year if the Secretary determines that such action is 
necessary to promote the Department of Defense's national security 
missions.
    ``(d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under this section for any 
12-month period may not exceed the lesser of the following amounts:
            ``(A) $50,000 in fiscal year 2004, which may be adjusted 
        annually thereafter by the Secretary, with a percentage 
        increase equal to one-half of 1 percentage point less than the 
        percentage by which the Employment Cost Index, published 
        quarterly by the Bureau of Labor Statistics, for the base 
        quarter of the year before the preceding calendar year exceeds 
        the Employment Cost Index for the base quarter of the second 
        year before the preceding calendar year.
            ``(B) The amount equal to 50 percent of the employee's 
        annual rate of basic pay.
For purposes of this paragraph, the term `base quarter' has the meaning 
given such term by section 5302(3).
    ``(2) An employee appointed under this section is not eligible for 
any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under this section.
    ``(3) Notwithstanding any other provision of this subsection or of 
section 5307, no additional payments may be paid to an employee under 
this section in any calendar year if, or to the extent that, the 
employee's total annual compensation will exceed the maximum amount of 
total annual compensation payable at the salary set in accordance with 
section 104 of title 3.
    ``(e) Limitation on Number of Highly Qualified Experts.--The number 
of highly qualified experts appointed and retained by the Secretary 
under subsection (b)(1) shall not exceed 300 at any time.
    ``(f) Savings Provisions.--In the event that the Secretary 
terminates this program, in the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under this section--
            ``(1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    ``(A) the period for which the employee was 
                appointed; or
                    ``(B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under this section before the termination of the 
                program; and
            ``(2) the rate of basic pay prescribed for the position 
        under this section may not be reduced as long as the employee 
        continues to serve in the position without a break in service.
``Sec. 9905. Special pay and benefits for certain employees outside the 
              United States
    ``The Secretary may provide to certain civilian employees of the 
Department of Defense assigned to activities outside the United States 
as determined by the Secretary to be in support of Department of 
Defense activities abroad hazardous to life or health or so specialized 
because of security requirements as to be clearly distinguishable from 
normal Government employment--
            ``(1) allowances and benefits--
                    ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under 
                chapter 9 of title I of the Foreign Service Act of 1980 
                (Public Law 96-465, 22 U.S.C. 4081 et seq.) or any 
                other provision of law; or
                    ``(B) comparable to those provided by the Director 
                of Central Intelligence to personnel of the Central 
                Intelligence Agency; and
            ``(2) special retirement accrual benefits and disability in 
        the same manner provided for by the Central Intelligence Agency 
        Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of 
        the Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403r).''.
    (2) The table of chapters for part III of such title is amended by 
adding at the end of subpart I the following new item:

 ``99.  Department of Defense National Security Personnel System9901''.
    (b) Impact on Department of Defense Civilian Personnel.--(1) Any 
exercise of authority under chapter 99 of such title (as added by 
subsection (a)), including under any system established under such 
chapter, shall be in conformance with the requirements of this 
subsection.
    (2) No other provision of this Act or of any amendment made by this 
Act may be construed or applied in a manner so as to limit, supersede, 
or otherwise affect the provisions of this section, except to the 
extent that it does so by specific reference to this section.
    (c) External Third-Party Review of Labor-Management Disputes.--
Chapter 71 of title 5, United States Code is amended--
            (1) in section 7105(a), by adding at the end the following:
    ``(3)(A) In carrying out subparagraphs (C), (D), (E), (F), and (H) 
of paragraph (2), in matters that involve agencies and employees of the 
Department of Defense, the Authority shall take final action within 180 
days after the filing of a charge, unless--
            ``(i) there is express approval of the parties to extend 
        the 180-day period; or
            ``(ii) the Authority extends the 180-day period under 
        subparagraph (B).
    ``(B) In cases raising significant issues that involve agencies and 
employees of the Department of Defense, the Authority may extend the 
time limit under subparagraph (A), and the time limits under sections 
7105(e)(1), 7105(f) and 7118(a)(9) of this title, if the Authority 
gives notice to the public of the opportunity for interested persons to 
file amici curiae briefs.'';
            (2) in section 7105(e), by adding at the end the following:
            ``(3) If a representation inquiry or election involves 
        employees of the Department of Defense, the regional director 
        shall, absent express approval from the parties, complete the 
        tasks delegated to the regional authority under paragraph (1) 
        within 180 days after the delegation.'';
            (3) in section 7105(f)--
                    (A) by inserting ``(1)'' after ``(f)'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively; and
                    (C) by adding at the end the following:
    ``(2) In any dispute that involves agencies and employees within 
the Department of Defense, if review is granted, the Authority action 
to affirm, modify, or reverse any action shall, absent express approval 
from the parties, be completed within 120 days after the grant of 
review.'';
            (4) in section 7118(a), by adding at the end the following:
    ``(9)(A) Any individual conducting a hearing described in paragraph 
(7) or (8), involving an unfair labor practice allegation within the 
Department of Defense, shall complete the hearing and make any 
determinations within 180 days after the filing of a charge under 
paragraph (1). The Authority's review of any such determinations shall, 
absent express approval from the parties, be completed within 180 days 
after the filing of any exceptions.
    ``(B) The 180-day periods under subparagraph (A) shall apply, 
unless there is express approval of the parties to extend a period.''; 
and
            (5) in section 7119(c)(5)(C), by adding at the end the 
        following: ``The Panel shall, absent express approval from the 
        parties, take final action within 180 days after being 
        presented with an impasse between agencies and employees within 
        the Department of Defense.''.

SEC. 3. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

    (a) In General.--Subsection (b) of section 6323 of title 5, United 
States Code, is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and at the end of 
                clause (ii), as so redesignated, by inserting ``or''; 
                and
                    (B) by inserting ``(A)'' after ``(2)''; and
            (2) by inserting the following before the text beginning 
        with ``is entitled'':
            ``(B) performs full-time military service as a result of a 
        call or order to active duty in support of a contingency 
        operation as defined in section 101(a)(13) of title 10;''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to military service performed on or after the date of the 
enactment of this Act.




                                                       Calendar No. 275

108th CONGRESS

  1st Session

                                S. 1166

_______________________________________________________________________

                                 A BILL

To establish a Department of Defense national security personnel system 
                        and for other purposes.

_______________________________________________________________________

                           September 5, 2003

                        Reported with amendments