[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 129 Referred in House (RFH)]

  2d Session
                                 S. 129


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 20, 2004

             Referred to the Committee on Government Reform

_______________________________________________________________________

                                 AN ACT


 
  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 Workforce 
Flexibility Act of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 101. Recruitment, relocation, and retention bonuses.
Sec. 102. Streamlined critical pay authority.
Sec. 103. Civil service retirement system computation for part-time 
                            service.
Sec. 104. Retirement service credit for cadet or midshipman service.
Sec. 105. Senior Executive Service authority for White House Office of 
                            Administration.
 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 201. Agency training.
Sec. 202. Annual leave enhancements.
Sec. 203. Compensatory time off for travel.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

SEC. 101. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

    (a) Bonuses.--
            (1) In general.--Chapter 57 of title 5, United States Code, 
        is amended by inserting after section 5754 the following:
``Sec. 5754a. Recruitment and relocation bonuses
    ``(a) In this section, the term `employee' has the meaning given 
that term under section 2105, except that such term also includes an 
employee described under subsection (c) of that section.
    ``(b)(1) The Office of Personnel Management may authorize the head 
of an agency to pay a bonus to an individual appointed or moved to a 
position that is likely to be difficult to fill in the absence of such 
a bonus, if the individual--
            ``(A)(i) is newly appointed as an employee of the Federal 
        Government; or
            ``(ii) is currently employed by the Federal Government and 
        moves to a new position in the same geographic area under 
        circumstances described in regulations of the Office; or
            ``(B) is currently employed by the Federal Government and 
        must relocate to accept a position stationed in a different 
        geographic area.
    ``(2) Except as provided by subsection (h), a bonus may be paid 
under this section only to an employee covered by the General Schedule 
pay system established under subchapter III of chapter 53.
    ``(c)(1) Payment of a bonus under this section shall be contingent 
upon the employee entering into a written service agreement to complete 
a period of employment with the agency, not to exceed 4 years. The 
Office may, by regulation, prescribe a minimum service.
    ``(2)(A) The agreement shall include--
            ``(i) the length of the required service period;
            ``(ii) the amount of the bonus;
            ``(iii) the method of payment; and
            ``(iv) other terms and conditions under which the bonus is 
        payable, subject to subsections (d) and (e) and regulations of 
        the Office.
    ``(B) The terms and conditions for paying a bonus, as specified in 
the service agreement, shall include--
            ``(i) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed; and
            ``(ii) the effect of the termination.
    ``(3) The agreement shall be made effective upon employment with 
the agency or movement to a new position or geographic area, as 
applicable, except that a service agreement with respect to a 
recruitment bonus may be made effective at a later date under 
circumstances described in regulations of the Office, such as when 
there is an initial period of formal basic training.
    ``(d)(1) Except as provided in subsection (e), a bonus under this 
section shall not exceed 25 percent of the annual rate of basic pay of 
the employee at the beginning of the service period multiplied by the 
number of years (or fractions thereof) in the service period, not to 
exceed 4 years.
    ``(2) A bonus under this section may be paid as an initial lump 
sum, in installments, as a final lump sum upon the completion of the 
full service period, or in a combination of these forms of payment.
    ``(3) A bonus under this section is not part of the basic pay of an 
employee for any purpose.
    ``(4) Under regulations of the Office, a recruitment bonus under 
this section may be paid to an eligible individual before that 
individual enters on duty.
    ``(e) The Office may authorize the head of an agency to waive the 
limitation under subsection (d)(1) based on a critical agency need, 
subject to regulations prescribed by the Office. Under such a waiver, 
the amount of the bonus may be up to 50 percent of the employee's 
annual rate of basic pay at the beginning of the service period 
multiplied by the number of years (or fractions thereof) in the service 
period, not to exceed 100 percent of the employee's annual rate of 
basic pay at the beginning of the service period.
    ``(f) The Office shall require that, before paying a bonus under 
this section, an agency shall establish a plan for paying recruitment 
bonuses and a plan for paying relocation bonuses, subject to 
regulations prescribed by the Office.
    ``(g) The Office may prescribe regulations to carry out this 
section, including regulations relating to the repayment of a 
recruitment or relocation bonus in appropriate circumstances when the 
agreed-upon service period has not been completed.
    ``(h)(1) At the request of the head of an Executive agency, the 
Office may extend coverage under this section to categories of 
employees within the agency who otherwise would not be covered by this 
section.
    ``(2) A bonus may not be paid under this section to an individual 
who is appointed to, or who holds--
            ``(A) a position to which an individual is appointed by the 
        President, by and with the advice and consent of the Senate;
            ``(B) a position in the Senior Executive Service as a 
        noncareer appointee (as such term is defined under section 
        3132(a)); or
            ``(C) a position which has been excepted from the 
        competitive service by reason of its confidential, policy-
        determining, policy-making, or policy-advocating character.
    ``(i)(1) The Office of Personnel Management shall submit an annual 
report on bonuses paid under this section to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives.
    ``(2) Each report submitted under this subsection shall include the 
use by each agency of recruitment and relocation bonuses, including, 
with respect to each agency and each type of bonus, the number and 
amount of bonuses by grade (including the General Schedule, the Senior 
Executive Service, and positions on the Executive Schedule).
    ``(j)(1) An individual may not be paid a recruitment bonus under 
this section and a recruitment bonus under section 5753.
    ``(2) An individual may not be paid a relocation bonus under this 
section and a relocation bonus under section 5753.
``Sec. 5754b. Retention bonuses
    ``(a) In this section, the term `employee' has the meaning given 
that term under section 2105, except that such term also includes an 
employee described in subsection (c) of that section.
    ``(b) The Office of Personnel Management may authorize the head of 
an agency to pay a retention bonus to an employee, subject to 
regulations prescribed by the Office, if--
            ``(1) the unusually high or unique qualifications of the 
        employee or a special need of the agency for the employee's 
        services makes it essential to retain the employee; and
            ``(2) the agency determines that, in the absence of a 
        retention bonus, the employee would be likely to leave--
                    ``(A) the Federal service; or
                    ``(B) for a different position in the Federal 
                service under conditions described in regulations of 
                the Office.
    ``(c) The Office may authorize the head of an agency to pay 
retention bonuses to a group of employees in 1 or more categories of 
positions in 1 or more geographic areas, subject to the requirements of 
subsection (b)(1) and regulations prescribed by the Office, if there is 
a high risk that a significant portion of employees in the group would 
be likely to leave in the absence of retention bonuses.
    ``(d) Except as provided in subsection (j), a bonus may be paid 
only to an employee covered by the General Schedule pay system 
established under subchapter III of chapter 53.
    ``(e)(1) Payment of a retention bonus is contingent upon the 
employee entering into a written service agreement with the agency to 
complete a period of employment with the agency.
    ``(2)(A) The agreement shall include--
            ``(i) the length of the required service period;
            ``(ii) the amount of the bonus;
            ``(iii) the method of payment; and
            ``(iv) other terms and conditions under which the bonus is 
        payable, subject to subsections (f) and (g) and regulations of 
        the Office.
    ``(B) The terms and conditions for paying a bonus, as specified in 
the service agreement, shall include--
            ``(i) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed; and
            ``(ii) the effect of the termination.
    ``(3)(A) Notwithstanding paragraph (1), a written service agreement 
is not required if the agency pays a retention bonus in biweekly 
installments and sets the installment payment at the full bonus 
percentage rate established for the employee with no portion of the 
bonus deferred.
    ``(B) If an agency pays a retention bonus in accordance with 
subparagraph (A) and makes a determination to terminate the payments, 
the agency shall provide written notice to the employee of that 
determination. Except as provided in regulations of the Office, the 
employee shall continue to be paid the retention bonus through the end 
of the pay period in which such written notice is provided.
    ``(4) A retention bonus for an employee may not be based on any 
period of such service which is the basis for a recruitment or 
relocation bonus under section 5753 or 5754a.
    ``(f)(1) Except as provided in subsection (g), a retention bonus, 
which shall be stated as a percentage of the employee's basic pay for 
the service period associated with the bonus, may not exceed--
            ``(A) 25 percent of the employee's basic pay if paid under 
        subsection (b); or
            ``(B) 10 percent of an employee's basic pay if paid under 
        subsection (c).
    ``(2) A retention bonus may be paid to an employee in installments 
after completion of specified periods of service or in a single lump 
sum at the end of the full period of service required by the agreement. 
An installment payment may not exceed the product derived from 
multiplying the amount of basic pay earned in the installment period by 
a percentage not to exceed the bonus percentage rate established for 
the employee. If the installment payment percentage is less than the 
bonus percentage rate, the accrued but unpaid portion of the bonus is 
payable as part of the final installment payment to the employee after 
completion of the full service period under the terms of the service 
agreement.
    ``(3) A retention bonus is not part of the basic pay of an employee 
for any purpose.
    ``(g) Upon the request of the head of an agency, the Office may 
waive the limit established under subsection (f)(1) and permit the 
agency head to pay an otherwise eligible employee or category of 
employees retention bonuses of up to 50 percent of basic pay, based on 
a critical agency need.
    ``(h) The Office shall require that, before paying a bonus under 
this section, an agency shall establish a plan for paying retention 
bonuses, subject to regulations prescribed by the Office.
    ``(i) The Office may prescribe regulations to carry out this 
section.
    ``(j)(1) At the request of the head of an Executive agency, the 
Office may extend coverage under this section to categories of 
employees within the agency who otherwise would not be covered by this 
section.
    ``(2) A bonus may not be paid under this section to an employee who 
holds--
            ``(A) a position to which an individual is appointed by the 
        President, by and with the advice and consent of the Senate;
            ``(B) a position in the Senior Executive Service as a 
        noncareer appointee (as such term is defined under section 
        3132(a)); or
            ``(C) a position which has been excepted from the 
        competitive service by reason of its confidential, policy-
        determining, policy-making, or policy-advocating character.
    ``(k)(1) The Office of Personnel Management shall submit an annual 
report on bonuses paid under this section to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives.
    ``(2) Each report submitted under this subsection shall include the 
use by each agency of retention bonuses, including, with respect to 
each agency, the number and amount of bonuses by grade (including the 
General Schedule, the Senior Executive Service, and positions on the 
Executive Schedule).
    ``(l) An employee may not be paid a retention bonus under this 
section and a retention allowance under section 5754.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 57 of title 5, United States Code, is 
        amended by inserting after the item relating to section 5754 
        the following:

``5754a. Recruitment and relocation bonuses.
``5754b. Retention bonuses.''.
    (b) Effective Date and Application.--This section shall take effect 
on the first day of the first applicable pay period beginning on or 
after 180 days after the date of enactment of this Act.

SEC. 102. STREAMLINED CRITICAL PAY AUTHORITY.

    Section 5377 of title 5, United States Code, is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) The Office of Personnel Management, in consultation with the 
Office of Management and Budget, may, upon the request of the head of 
an agency, grant authority to fix the rate of basic pay for 1 or more 
positions in such agency in accordance with this section.'';
            (2) in subsection (e)(1), by striking ``Office of 
        Management and Budget'' and inserting ``Office of Personnel 
        Management'';
            (3) by striking subsections (f) and (g) and inserting the 
        following:
    ``(f) The Office of Personnel Management may not authorize the 
exercise of authority under this section with respect to more than 800 
positions at any 1 time, of which not more than 30 may, at any such 
time, be positions the rate of basic pay for which would otherwise be 
determined under subchapter II.
    ``(g) The Office of Personnel Management shall consult with the 
Office of Management and Budget before making any decision to grant or 
terminate any authority under this section.''; and
            (4) in subsection (h), by striking ``The Office of 
        Management and Budget shall report to the Committee on Post 
        Office and Civil Service'' and inserting ``The Office of 
        Personnel Management shall report to the Committee on 
        Government Reform.''.

SEC. 103. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME 
              SERVICE.

    Section 8339(p) of title 5, United States Code, is amended by 
adding at the end the following:
            ``(3) In the administration of paragraph (1)--
                    ``(A) subparagraph (A) of such paragraph shall 
                apply to any service performed before, on, or after 
                April 7, 1986;
                    ``(B) subparagraph (B) of such paragraph shall 
                apply to all service performed on a part-time or full-
                time basis on or after April 7, 1986; and
                    ``(C) any service performed on a part-time basis 
                before April 7, 1986, shall be credited as service 
                performed on a full-time basis.''.

SEC. 104. RETIREMENT SERVICE CREDIT FOR CADET OR MIDSHIPMAN SERVICE.

    (a) Civil Service Retirement System.--Section 8331(13) of title 5, 
United States Code, is amended by striking ``but'' and inserting ``and 
includes service as a cadet at the United States Military Academy, the 
United States Air Force Academy, or the United States Coast Guard 
Academy, or as a midshipman at the United States Naval Academy, but''.
    (b) Federal Employees' Retirement System.--Section 8401(31) of 
title 5, United States Code, is amended by striking ``but'' and 
inserting ``and includes service as a cadet at the United States 
Military Academy, the United States Air Force Academy, or the United 
States Coast Guard Academy, or as a midshipman at the United States 
Naval Academy, but''.
    (c) Effective Date and Application.--The amendments made by this 
section shall apply to--
            (1) any annuity, eligibility for which is based upon a 
        separation occurring before, on, or after the date of enactment 
        of this Act; and
            (2) any period of service as a cadet or midshipman at the 
        military service academy of the Army, Air Force, Coast Guard, 
        or Navy, occurring before, on, or after the date of enactment 
        of this Act.

SEC. 105. SENIOR EXECUTIVE SERVICE AUTHORITY FOR WHITE HOUSE OFFICE OF 
              ADMINISTRATION.

    Chapter 2 of title 3, United States Code, is amended--
            (1) in section 107(b)--
                    (A) in paragraph (2), in the first sentence, by 
                striking ``section 3101'' and inserting ``sections 3101 
                and 3132''; and
                    (B) by adding at the end the following:
            ``(3) Any permanent Senior Executive Service position 
        established under paragraph (2) shall be a career reserved 
        position.'';
            (2) in section 114--
                    (A) by redesignating that section as subsection 
                (a);
                    (B) by amending that subsection, as so 
                redesignated, by striking ``minimum rate of basic pay 
                then currently paid for GS-16'' and inserting ``maximum 
                rate of basic pay then currently paid for GS-15''; and
                    (C) by adding at the end the following:
    ``(b) The limitation established in subsection (a) shall not apply 
to an individual appointed under the authority in section 107(b)(2), in 
accordance with section 3132 of title 5.''.

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

SEC. 201. AGENCY TRAINING.

    (a) Training To Accomplish Performance Plans and Strategic Goals.--
Section 4103 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(c) The head of each agency shall--
            ``(1) evaluate each program or plan established, operated, 
        or maintained under subsection (a) with respect to 
        accomplishing specific performance plans and strategic goals in 
        performing the agency mission; and
            ``(2) modify such program or plan to accomplish such plans 
        and goals.''.
    (b) Agency Training Officer; Specific Training Programs.--
            (1) In general.--Chapter 41 of title 5, United States Code, 
        is amended by adding after section 4119 the following:
``Sec. 4120. Agency training officer
    ``Each agency shall appoint or designate a training officer who 
shall be responsible for developing, coordinating, and administering 
training for the agency.
``Sec. 4121. Specific training programs
    ``In consultation with the Office of Personnel Management, each 
head of an agency shall establish--
            ``(1) a comprehensive management succession program to 
        provide training to employees to develop managers for the 
        agency; and
            ``(2) a program to provide training to managers on actions, 
        options, and strategies a manager may use in--
                    ``(A) relating to employees with unacceptable 
                performances; and
                    ``(B) mentoring employees and improving employee 
                performance and productivity.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 41 of title 5, United States Code, is 
        amended by adding at the end the following:

``4120. Agency training officer.
``4121. Specific training programs.''.

SEC. 202. ANNUAL LEAVE ENHANCEMENTS.

    (a) Accrual of Leave for Newly Hired Federal Employees With 
Qualified Experience.--
            (1) In general.--Section 6303 of title 5, United States 
        Code, is amended by adding at the end the following:
    ``(e)(1) In this subsection, the term `period of qualified non-
Federal career experience' means any equal period of service performed 
by an individual that--
            ``(A) except for this subsection would not otherwise be 
        service performed by an employee for purposes of subsection 
        (a); and
            ``(B) was performed in a position--
                    ``(i) the duties of which were directly related to 
                the duties of the position in an agency that such 
                individual holds; and
                    ``(ii) which meets such other conditions as the 
                Office of Personnel Management shall prescribe by 
                regulation.
    ``(2) For purposes of subsection (a), the head of an agency may 
deem a period of qualified non-Federal career experience performed by 
an individual to be a period of service performed as an employee.''.
            (2) Effective date.--This section shall take effect 120 
        days after the date of enactment of this Act and shall only 
        apply to an individual hired on or after that effective date.
    (b) Senior Executive Service Annual Leave Enhancements.--
            (1) In general.--Section 6303(a) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding after paragraph (3) the following:
            ``(4) one day for each full biweekly pay period for an 
        employee in a position paid under section 5376 or 5383, or for 
        an employee in an equivalent category for which the minimum 
        rate of basic pay is greater than the rate payable at GS-15, 
        step 10.''.
            (2) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Office of Personnel Management shall 
        prescribe regulations to carry out the amendments made by this 
        subsection.
            (3) Effective dates.--
                    (A) In general.--Paragraph (1) shall take effect 
                120 days after the date of enactment of this Act.
                    (B) Regulations.--Paragraph (2) shall take effect 
                on the date of enactment of this Act.

SEC. 203. COMPENSATORY TIME OFF FOR TRAVEL.

    (a) In General.--Subchapter V of chapter 55 of title 5, United 
States Code, is amended by adding at end the following:
``Sec. 5550b. Compensatory time off for travel
    ``(a) Notwithstanding section 5542(b)(2), each hour spent by an 
employee in travel status away from the official duty station of the 
employee, that is not otherwise compensable, shall be treated as an 
hour of work or employment for purposes of calculating compensatory 
time off.
    ``(b) An employee who has any hours treated as hours of work or 
employment for purposes of calculating compensatory time under 
subsection (a), shall not be entitled to payment for any such hours 
that are unused as compensatory time.
    ``(c) Not later than 30 days after the date of enactment of this 
section, the Office of Personnel Management shall prescribe regulations 
to implement this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 55 of title 5, United States Code, is amended by inserting 
after the item relating to section 5550a the following:

``5550b. Compensatory time off for travel.''.

            Passed the Senate April 8, 2004.

            Attest:

                                             EMILY J. REYNOLDS,

                                                             Secretary.