[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4361 Referred in Senate (RFS)]

<DOC>
114th CONGRESS
  2d Session
                                H. R. 4361


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 7, 2016

Received; read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 AN ACT


 
 To amend section 3554 of title 44, United States Code, to provide for 
    enhanced security of Federal information systems, 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 ``Government Reform 
and Improvement Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--FEDERAL INFORMATION SYSTEMS SAFEGUARDS

Sec. 101. Agency discretion to secure information technology and 
                            information systems.
            TITLE II--ELIMINATING PORNOGRAPHY FROM AGENCIES

Sec. 201. Prohibition on accessing pornographic web sites from federal 
                            computers.
    TITLE III--EXTENSION OF PROBATIONARY PERIOD FOR CAREER EMPLOYEES

Sec. 301. Extension of probationary period for positions within the 
                            competitive service.
Sec. 302. Appeals from adverse actions.
           TITLE IV--SENIOR EXECUTIVE SERVICE ACCOUNTABILITY

Sec. 401. Biennial justification of Senior Executive Service positions.
Sec. 402. Extension of probationary period for career appointees.
Sec. 403. Modification of pay retention for career appointees removed 
                            for under performance.
Sec. 404. Advanced establishment of performance requirements under 
                            Senior Executive Service performance 
                            appraisal systems.
Sec. 405. Amendments with respect to adverse actions against career 
                            appointees.
Sec. 406. Mandatory leave for career appointees subject to removal.
Sec. 407. Expedited removal of career appointees for performance or 
                            misconduct.
Sec. 408. Mandatory reassignment of career appointees.
                  TITLE V--OPM REPORT ON OFFICIAL TIME

Sec. 501. Reporting requirement.
                     TITLE VI--MIDNIGHT RULE RELIEF

Sec. 601. Moratorium on midnight rules.
Sec. 602. Special rule on statutory, regulatory, and judicial 
                            deadlines.
Sec. 603. Exception.
Sec. 604. Judicial review.
Sec. 605. Definitions.
               TITLE VII--REQUIREMENT TO MAINTAIN RECORDS

Sec. 701. Requirement to maintain records.

            TITLE I--FEDERAL INFORMATION SYSTEMS SAFEGUARDS

SEC. 101. AGENCY DISCRETION TO SECURE INFORMATION TECHNOLOGY AND 
              INFORMATION SYSTEMS.

    (a) In General.--In carrying out section 3554 of title 44, United 
States Code, any action taken by the head of an agency that is 
necessary to limit, restrict, or prohibit access to any website the 
head of the agency determines to present a current or future security 
weakness or risk to the information technology or information system 
under the control of the agency, and any impact or implementation of 
such action, shall not be subject to chapter 71 of title 5, United 
States Code.
    (b) Information Security Protocol.--An agency employee acting in 
the official capacity of the employee may not establish, operate, 
maintain, or otherwise permit the use of information technology that is 
not certified by the appropriate Federal entity responsible for 
information security (either the Director of the Office of Management 
and Budget, the head of the agency, the Secretary of Homeland Security, 
or the Chief Information Officer of the agency, as applicable) as in 
compliance with the established information security policies, 
procedures, and programs.
    (c) Definitions.--In this section--
            (1) the terms ``agency'' and ``information system'' have 
        the meanings given the terms in section 3502 of title 44, 
        United States Code; and
            (2) the term ``information technology'' has the meaning 
        given the term in section 3552 of title 44, United States Code.

            TITLE II--ELIMINATING PORNOGRAPHY FROM AGENCIES

SEC. 201. PROHIBITION ON ACCESSING PORNOGRAPHIC WEB SITES FROM FEDERAL 
              COMPUTERS.

    (a) Prohibition.--Except as provided in subsection (b), not later 
than 90 days after the date of the enactment of this Act, the Director 
of the Office of Management and Budget shall issue guidelines that 
prohibit the access of a pornographic or other explicit web site from a 
Federal computer.
    (b) Exception.--The prohibition described in subsection (a) shall 
not apply to any Federal computer that is used for an investigative 
purpose that requires accessing a pornographic web site.

    TITLE III--EXTENSION OF PROBATIONARY PERIOD FOR CAREER EMPLOYEES

SEC. 301. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE 
              COMPETITIVE SERVICE.

    (a) In General.--Section 3321 of title 5, United States Code, is 
amended--
            (1) in subsection (a), by striking ``The President'' and 
        inserting ``Subject to subsections (c) and (d), the 
        President'';
            (2) by redesignating subsection (c) as subsection (e); and
            (3) by inserting after subsection (b) the following:
    ``(c)(1) Except as provided in paragraph (2), the length of a 
probationary period established under paragraph (1) or (2) of 
subsection (a) shall be--
            ``(A) with respect to any position that requires formal 
        training, a period of 2 years beginning on the date that such 
        formal training is completed;
            ``(B) with respect to any position that requires a license, 
        a period of 2 years beginning on the date that such license is 
        granted; and
            ``(C) with respect to any position not covered by 
        subparagraph (A) or (B), not less than 2 years.
    ``(2) The length of a probationary period established under 
paragraph (1) or (2) of subsection (a) in the case of a preference 
eligible shall be not longer than--
            ``(A) if the appointment (as referred to in subsection 
        (a)(1)) or the initial appointment (as referred to in 
        subsection (a)(2)) is to a position that exists on the 
        effective date of this subsection, the length of the 
        probationary period which applies to such position as of such 
        effective date; or
            ``(B) if the appointment (as referred to in subsection 
        (a)(1)) or the initial appointment (as referred to in 
        subsection (a)(2)) is to a position that does not exist on the 
        effective date of this subsection, such length of time as the 
        President may establish, consistent with the purposes of this 
        subparagraph.
    ``(3) In paragraph (1)--
            ``(A) the term `formal training' means, with respect to any 
        position, a training program required by law, rule, or 
        regulation, or otherwise required by the employing agency, to 
        be completed by the employee before the employee is able to 
        successfully execute the duties of the applicable position; and
            ``(B) the term `license' means a license, certification, or 
        other grant of permission to engage in a particular activity.
    ``(d) The head of each agency shall, in the administration of this 
section, take appropriate measures to ensure that--
            ``(1) any announcement of a vacant position within such 
        agency and any offer of appointment made to any individual with 
        respect to any such position shall clearly state the terms and 
        conditions of the probationary period applicable to such 
        position;
            ``(2) any individual who is required to complete a 
        probationary period under this section shall receive timely 
        notice of the performance and other requirements which must be 
        met in order to successfully complete the probationary period; 
        and
            ``(3) upon successful completion of a probationary period 
        under this section, certification to that effect shall be made, 
        supported by a brief statement of the basis for that 
        certification, in such form and manner as the President may by 
        regulation prescribe.''.
    (b) Technical Amendment.--Section 3321(e) of title 5, United States 
Code (as so redesignated by subsection (a)(2)) is amended by striking 
``Subsections (a) and (b)'' and inserting ``Subsections (a) through 
(d)''.
    (c) Effective Date.--This section and the amendments made by this 
section--
            (1) shall take effect 180 days after the date of enactment 
        of this Act; and
            (2) shall apply in the case of any appointment (as referred 
        to in section 3321(a)(1) of title 5, United States Code) and 
        any initial appointment (as referred to in section 3321(a)(2) 
        of such title) taking effect on or after the date on which this 
        section takes effect.

SEC. 302. APPEALS FROM ADVERSE ACTIONS.

    (a) Subchapter I of Chapter 75 of Title 5.--Section 7501(1) of 
title 5, United States Code, is amended--
            (1) by striking ``1 year'' the first place it appears and 
        inserting ``not less than 2 years''; and
            (2) by striking ``1 year'' the second place it appears and 
        inserting ``2 years''.
    (b) Subchapter II of Chapter 75 of Title 5.--Section 7511(a)(1) of 
title 5, United States Code, is amended--
            (1) in subparagraph (A)(ii), by striking ``1 year'' the 
        first place it appears and inserting ``not less than 2 years''; 
        and
            (2) in subparagraph (C)(ii), by striking ``2 years'' the 
        first place it appears and inserting ``not less than 2 years''.
    (c) Effective Date.--The amendments made by subsections (a) and 
(b)--
            (1) shall take effect 180 days after the date of enactment 
        of this Act; and
            (2) shall apply in the case of any individual whose period 
        of continuous service (as referred to in the provision of law 
        amended by paragraph (1) or (2) of subsection (b), as the case 
        may be) commences on or after the date on which this section 
        takes effect.

           TITLE IV--SENIOR EXECUTIVE SERVICE ACCOUNTABILITY

SEC. 401. BIENNIAL JUSTIFICATION OF SENIOR EXECUTIVE SERVICE POSITIONS.

    Section 3133(a)(2) of title 5, United States Code, is amended by 
inserting after ``positions'' the following: ``, with a justification 
for each position (by title and organizational location) and the 
specific result expected from each position, including the impact of 
such result on the agency mission,''.

SEC. 402. EXTENSION OF PROBATIONARY PERIOD FOR CAREER APPOINTEES.

    (a) In General.--Section 3393(d) of title 5, United States Code, is 
amended by striking ``1-year'' and inserting ``2-year''.
    (b) Conforming Amendment.--Section 3592(a)(1) of such title is 
amended by striking ``1-year'' and inserting ``2-year''.

SEC. 403. MODIFICATION OF PAY RETENTION FOR CAREER APPOINTEES REMOVED 
              FOR UNDER PERFORMANCE.

    Section 3594(c)(1)(B) of title 5, United States Code, is amended to 
read as follows:
            ``(B)(i) any career appointee placed under subsection (a) 
        or (b)(2) of this section shall be entitled to receive basic 
        pay at the highest of--
                    ``(I) the rate of basic pay in effect for the 
                position in which placed;
                    ``(II) the rate of basic pay in effect at the time 
                of the placement for the position the career appointee 
                held in the civil service immediately before being 
                appointed to the Senior Executive Service; or
                    ``(III) the rate of basic pay in effect for the 
                career appointee immediately before being placed under 
                subsection (a) or (b) of this section; and
            ``(ii) any career appointee placed under subsection (b)(1) 
        of this section shall be entitled to receive basic pay at the 
        rate of basic pay in effect for the position in which placed; 
        and''.

SEC. 404. ADVANCED ESTABLISHMENT OF PERFORMANCE REQUIREMENTS UNDER 
              SENIOR EXECUTIVE SERVICE PERFORMANCE APPRAISAL SYSTEMS.

    Section 4312(b)(1) of title 5, United States Code, is amended--
            (1) by striking ``on or'' and inserting ``not later than 30 
        calendar days''; and
            (2) by inserting ``in writing'' after ``communicated''.

SEC. 405. AMENDMENTS WITH RESPECT TO ADVERSE ACTIONS AGAINST CAREER 
              APPOINTEES.

    (a) Suspension for 14 Days or Less for Senior Executive Service 
Employee.--Paragraph (1) of Section 7501 of title 5, United States 
Code, is amended to read as follows:
            ``(1) `employee' means--
                    ``(A) an individual in the competitive service who 
                is not serving a probationary period or trial period 
                under an initial appointment or who has completed 1 
                year of current continuous employment in the same or 
                similar positions under other than a temporary 
                appointment limited to 1 year or less; or
                    ``(B) a career appointee in the Senior Executive 
                Service who--
                            ``(i) has completed the probationary period 
                        prescribed under section 3393(d); or
                            ``(ii) was covered by the provisions of 
                        subchapter II of this chapter immediately 
                        before appointment to the Senior Executive 
                        Service; and''.
    (b) Modification of Cause and Procedure for Suspension and 
Termination.--
            (1) In general.--Section 7543 of title 5, United States 
        Code, is amended--
                    (A) in subsection (a), by striking ``misconduct,'' 
                and inserting ``such cause as would promote the 
                efficiency of the service, misconduct,''; and
                    (B) in subsection (b)(1), by striking ``30'' and 
                inserting ``15''.
            (2) Conforming amendments.--Subchapter V of chapter 35 of 
        title 5, United States Code, is amended--
                    (A) in section 3593--
                            (i) in subsection (a)(2), by striking 
                        ``misconduct,'' and inserting ``such cause as 
                        would promote the efficiency of the service, 
                        misconduct,''; and
                            (ii) in subsection (b), by striking 
                        ``misconduct,'' and inserting ``such cause as 
                        would promote the efficiency of the service, 
                        misconduct,''; and
                    (B) in section 3594(a), by striking ``misconduct,'' 
                and inserting ``such cause as would promote the 
                efficiency of the service, misconduct,''.

SEC. 406. MANDATORY LEAVE FOR CAREER APPOINTEES SUBJECT TO REMOVAL.

    (a) In General.--Subchapter II of chapter 63 of title 5, United 
States Code, is amended by adding at the end the following:
``Sec. 6330. Mandatory leave for Senior Executive Service career 
              appointees subject to removal
    ``(a) In this section--
            ``(1) the term `employee' means an employee (as that term 
        is defined in section 7541(1)) who has received written notice 
        of removal from the civil service under subchapter V of chapter 
        75; and
            ``(2) the term `mandatory leave' means, with respect to an 
        employee, an absence with pay but without duty during which 
        such employee--
                    ``(A) shall be charged accrued annual leave for the 
                period of such absence; and
                    ``(B) may not accrue any annual leave under section 
                6303 for the period of such absence.
    ``(b) Under regulations prescribed by the Office of Personnel 
Management, an agency may place an employee on mandatory leave for 
misconduct, neglect of duty, malfeasance, or such cause as would 
promote the efficiency of the service.
    ``(c) If an agency determines that an employee should be placed on 
mandatory leave under subsection (b), such leave shall begin no earlier 
than the date on which the employee received written notice of a 
removal under subchapter V of chapter 75.
    ``(d) If a final order or decision is issued in favor of such 
employee with respect to removal under subchapter V of chapter 75 by 
the agency, the Merit Systems Protection Board, or the United States 
Court of Appeals for the Federal Circuit, any annual leave that is 
charged to an employee by operation of this section shall be restored 
to the applicable leave account of such employee.''.
    (b) Clerical Amendment.--The table of sections of chapter 63 of 
title 5, United States Code, is amended by adding after the item 
relating to section 6328 the following new item:

``6330. Mandatory leave for Senior Executive Service career appointees 
                            subject to removal.''.
    (c) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Director of the Office of Personnel 
Management shall prescribe regulations with respect to the leave 
provided by the amendment in subsection (a).

SEC. 407. EXPEDITED REMOVAL OF CAREER APPOINTEES FOR PERFORMANCE OR 
              MISCONDUCT.

    (a) In General.--Chapter 75 of title 5, United States Code, is 
amended by adding at the end the following:

      ``SUBCHAPTER VI--SENIOR EXECUTIVE SERVICE: EXPEDITED REMOVAL

``Sec. 7551. Definitions
    ``In this subchapter--
            ``(1) the term `employee' has the meaning given such term 
        in section 7541(1), but does not include any career appointee 
        in the Senior Executive Service within the Department of 
        Veterans Affairs; and
            ``(2) the term `misconduct' includes neglect of duty, 
        malfeasance, or failure to accept a directed reassignment or to 
        accompany a position in a transfer of function.
``Sec. 7552. Actions covered
    ``This subchapter applies to a removal from the civil service or a 
transfer from the Senior Executive Service, but does not apply to an 
action initiated under section 1215, to a removal under section 3592 or 
3595, to a suspension under section 7503, to a suspension or removal 
under section 7532, to a suspension or removal under section 7542, or 
to a suspension or removal under section 713 of title 38.
``Sec. 7553. Cause and procedure
    ``(a)(1) Under regulations prescribed by the Office of Personnel 
Management, the head of an agency may remove an employee of the agency 
from the Senior Executive Service if the head determines that the 
performance or misconduct of the individual warrants such removal. If 
the head so removes such an individual, the head may--
            ``(A) remove the individual from the civil service; or
            ``(B) in the case of an employee described in paragraph 
        (2), transfer the employee from the Senior Executive Service to 
        a General Schedule position at any grade of the General 
        Schedule for which the employee is qualified and that the head 
        determines is appropriate.
    ``(2) An employee described in this paragraph is an individual 
who--
            ``(A) previously occupied a permanent position within the 
        competitive service;
            ``(B) previously occupied a permanent position within the 
        excepted service; or
            ``(C) prior to employment as a career appointee at the 
        agency, did not occupy any position within the Federal 
        Government.
    ``(3) An employee against whom an action is proposed under 
paragraph (1) is entitled to 5 days' advance written notice.
    ``(b)(1) Notwithstanding any other provision of law, including 
section 3594, any employee transferred to a General Schedule position 
under subsection (a)(1)(B) shall, beginning on the date of such 
transfer, receive the annual rate of pay applicable to such position.
    ``(2) An employee so transferred may not be placed on 
administrative leave or any other category of paid leave during the 
period during which an appeal (if any) under this section is ongoing, 
and may only receive pay if the individual reports for duty. If an 
employee so transferred does not report for duty, such employee shall 
not receive pay or other benefits pursuant to section 7554(e).
    ``(c) Not later than 30 days after removing or transferring an 
employee under subsection (a), the applicable head of the agency shall 
submit to Congress notice in writing of such removal or transfer and 
the reason for such removal or transfer.
    ``(d) Section 3592(b)(1) does not apply to an action to remove or 
transfer an employee under this section.
    ``(e) Subject to the requirements of section 7554, an employee may 
appeal a removal or transfer under subsection (a) to the Merit Systems 
Protection Board under section 7701, but only if such appeal is made 
not later than seven days after the date of such removal or transfer.
``Sec. 7554. Expedited review of appeal
    ``(a) Upon receipt of an appeal under section 7553(d), the Merit 
Systems Protection Board shall refer such appeal to an administrative 
judge pursuant to section 7701(b)(1). The administrative judge shall--
            ``(1) expedite any such appeal under such section; and
            ``(2) in any such case, issue a decision not later than 21 
        days after the date of the appeal.
    ``(b) Notwithstanding any other provision of law, including section 
7703, the decision of an administrative judge under subsection (a) 
shall be final and shall not be subject to any further appeal.
    ``(c) In any case in which the administrative judge cannot issue a 
decision in accordance with the 21-day requirement under subsection 
(a)(2), the removal or transfer is final. In such a case, the Merit 
Systems Protection Board shall, within 14 days after the date that such 
removal or transfer is final, submit to Congress a report that explains 
the reasons why a decision was not issued in accordance with such 
requirement.
    ``(d) The Merit Systems Protection Board or administrative judge 
may not stay any removal or transfer under this section.
    ``(e) During the period beginning on the date on which an employee 
appeals a removal from the civil service under section 7553(d) and 
ending on the date that the administrative judge issues a final 
decision on such appeal, such employee may not receive any pay, awards, 
bonuses, incentives, allowances, differentials, student loan 
repayments, special payments, or benefits.''.
    (b) Application.--
            (1) In general.--Subchapter VI of chapter 75 of title 5, 
        United States Code, as added by subsection (a), shall not apply 
        to any personnel action against a career appointee (as that 
        term is defined in section 3132(a)(4) of title 5, United States 
        Code) that was commenced before the date of enactment of this 
        Act.
            (2) Relation to other authorities.--The authority provided 
        by such subchapter is in addition to the authority provided 
        under section 3592 or subchapter V of chapter 75 of title 5, 
        United States Code.
    (c) Technical Amendments.--
            (1) Title 5.--Title 5, United States Code, is amended--
                    (A) in section 3592(b)(2)--
                            (i) by striking ``or'' at the end of 
                        subparagraph (A);
                            (ii) by striking the period at the end of 
                        subparagraph (B) and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(C) any removal under subchapter VI of this title or 
        section 713 of title 38.'';
                    (B) in section 3393(g), by striking ``1215,, 3592, 
                3595, 7532, or 7543 of this title'' and inserting 
                ``1215, 3592, 3595, 7532, 7543, or 7553 of this title 
                or section 713 of title 38''; and
                    (C) in section 7542, by striking ``or to a removal 
                under section 3592 or 3595 of this title'' and 
                inserting ``to a removal under section 3592 or 3595 of 
                this title, to a suspension under section 7503, to a 
                removal or transfer under section 7553, or a removal or 
                transfer under section 713 of title 38''.
            (2) Title 38.--Section 713(f)(1) of title 38, United States 
        Code, is amended by striking ``or subchapter V'' and inserting 
        ``, chapter 43, or subchapters V and VI''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 75 of title 5, United States Code, is amended by adding after 
the item relating to section 7543 the following:

      ``subchapter vi--senior executive service: expedited removal

``7551. Definitions.
``7552. Actions covered.
``7553. Cause and procedure.
``7554. Expedited review of appeal.''.

SEC. 408. MANDATORY REASSIGNMENT OF CAREER APPOINTEES.

    (a) In General.--Section 3395(a) of title 5, United States Code, is 
amended by adding at the end the following:
    ``(3)(A) Consistent with the requirements of paragraphs (1) and 
(2), at least once every five years beginning on the date that a career 
appointee is initially appointed to the Senior Executive Service, each 
career appointee at an agency shall be reassigned to another Senior 
Executive Service position at the agency at a different geographic 
location that does not include the supervision of the same agency 
personnel or programs.
    ``(B) The head of an agency may waive the requirement under 
subparagraph (A) for any career appointee if the head submits notice of 
the waiver and an explanation of the reasons for the waiver to the 
Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate.''.
    (b) Conforming Amendment.--Section 3395(a)(1)(A) of title 5, United 
States Code, is amended by striking ``paragraph (2)'' and inserting 
``paragraphs (2) and (3)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 90 days after the date of enactment of this Act.

                  TITLE V--OPM REPORT ON OFFICIAL TIME

SEC. 501. REPORTING REQUIREMENT.

    (a) In General.--Section 7131 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(e)(1)(A) Not later than March 31 of each calendar year, the 
Office of Personnel Management, in consultation with the Office of 
Management and Budget, shall submit to each House of Congress a report 
on the operation of this section during the fiscal year last ending 
before the start of such calendar year.
    ``(B) Not later than December 31 of each calendar year, each agency 
(as defined by section 7103(a)(3)) shall furnish to the Office of 
Personnel Management the information which such Office requires, with 
respect to such agency, for purposes of the report which is next due 
under subparagraph (A).
    ``(2) Each report by the Office of Personnel Management under this 
subsection shall include, with respect to the fiscal year described in 
paragraph (1)(A), at least the following information:
            ``(A) The total amount of official time granted to 
        employees.
            ``(B) The average amount of official time expended per 
        bargaining unit employee.
            ``(C) The specific types of activities or purposes for 
        which official time was granted, and the impact which the 
        granting of such official time for such activities or purposes 
        had on agency operations.
            ``(D) The total number of employees to whom official time 
        was granted, and, of that total, the number who were not 
        engaged in any activities or purposes except activities or 
        purposes involving the use of official time.
            ``(E) The total amount of compensation (including fringe 
        benefits) afforded to employees in connection with activities 
        or purposes for which they were granted official time.
            ``(F) A description of any room or space designated at the 
        agency (or its subcomponent) where official time activities 
        will be conducted, including the square footage of any such 
        room or space.
    ``(3) All information included in a report by the Office of 
Personnel Management under this subsection with respect to a fiscal 
year--
            ``(A) shall be shown both agency-by-agency and for all 
        agencies; and
            ``(B) shall be accompanied by the corresponding information 
        (submitted by the Office in its report under this subsection) 
        for the fiscal year before the fiscal year to which such report 
        pertains, together with appropriate comparisons and analyses.
    ``(4) For purposes of this subsection, the term `official time' 
means any period of time, regardless of agency nomenclature--
            ``(A) which may be granted to an employee under this 
        chapter (including a collective bargaining agreement entered 
        into under this chapter) to perform representational or 
        consultative functions; and
            ``(B) during which the employee would otherwise be in a 
        duty status.''.
    (b) Applicability.--The amendment made by subsection (a) shall be 
effective beginning with the report which, under the provisions of such 
amendment, is first required to be submitted by the Office of Personnel 
Management to each House of Congress by a date which occurs at least 6 
months after the date of the enactment of this Act.

                     TITLE VI--MIDNIGHT RULE RELIEF

SEC. 601. MORATORIUM ON MIDNIGHT RULES.

    Except as provided under sections 602 and 603, during the 
moratorium period, an agency may not propose or adopt any midnight rule 
unless the Administrator finds the midnight rule will not result in any 
of the following:
            (1) An annual effect on the economy of $100,000,000 or 
        more.
            (2) A major increase in costs or prices for consumers, 
        individual industries, Federal, State, or local government 
        agencies, or geographic regions.
            (3) Significant adverse effects on competition, employment, 
        wages, investment, productivity, innovation, or on the ability 
        of United States-based enterprises to compete with foreign-
        based enterprises in domestic and export markets.
            (4) A significant economic impact on a substantial number 
        of small entities.

SEC. 602. SPECIAL RULE ON STATUTORY, REGULATORY, AND JUDICIAL 
              DEADLINES.

    (a) In General.--Section 601 shall not apply with respect to any 
midnight rule required by statute, other regulation, or judicial order 
to be proposed or adopted by a deadline that--
            (1) was established before the beginning of the moratorium 
        period; and
            (2) occurs during the moratorium period.
    (b) Publication of Deadlines.--Not later than 30 days after the 
beginning of a moratorium period, the Administrator shall identify and 
publish in the Federal Register a list of midnight rules covered by 
subsection (a).

SEC. 603. EXCEPTION.

    (a) Emergency Exception.--Section 601 shall not apply to a midnight 
rule if the President determines by Executive order that the midnight 
rule is--
            (1) necessary because of an emergency;
            (2) necessary for the enforcement of criminal laws;
            (3) necessary for the national security of the United 
        States; or
            (4) issued pursuant to any statute implementing an 
        international trade agreement.
    (b) Deregulatory Exception.--Section 601 shall not apply to a 
midnight rule that the Administrator finds is limited to repealing an 
existing rule and certifies such finding in writing. The certification 
shall be published in the Federal Register.

SEC. 604. JUDICIAL REVIEW.

    Any person or entity subject to the any midnight rule promulgated 
in violation of this title is entitled to judicial review.

SEC. 605. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Office of Information and Regulatory 
        Affairs within the Office of Management and Budget.
            (2) Agency.--The term ``agency'' has the meaning given that 
        term under section 551 of title 5, United States Code, except 
        such term does not include--
                    (A) the Federal Election Commission;
                    (B) the Board of Governors of the Federal Reserve 
                System;
                    (C) the Federal Deposit Insurance Corporation; or
                    (D) the United States Postal Service.
            (3) Deadline.--The term ``deadline'' means any date certain 
        for fulfilling any obligation or exercising any authority 
        established by or under any Federal statute or rule, or by or 
        under any court order implementing any Federal statute, 
        regulation, or rule.
            (4) Emergency.--The term ``emergency'' means a declaration 
        by the President of a state of emergency.
            (5) Midnight rule.--The term ``midnight rule'' means a rule 
        proposed or adopted during the moratorium period.
            (6) Moratorium period.--The term ``moratorium period'' 
        means the day after the day referred to in section 1 of title 
        3, United States Code, through January 20 of the following 
        year, in which a President is not serving a consecutive term.
            (7) Rule.--The term ``rule'' has the meaning given that 
        term under section 551 of title 5, United States Code.
            (8) Small entity.--The term ``small entity'' has the 
        meaning given the term ``small business'' under section 601 of 
        title 5, United States Code.

               TITLE VII--REQUIREMENT TO MAINTAIN RECORDS

SEC. 701. REQUIREMENT TO MAINTAIN RECORDS.

    (a) Amendment.--Chapter 31 of title 44, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3108. Requirement to maintain records
    ``(a) In General.--If the Internal Revenue Service obtains a 
preserved record, the Internal Revenue Service shall preserve for not 
less than 3 years from the date on which the record was obtained--
            ``(1) the preserved record or a copy of the preserved 
        record; and
            ``(2) all records related to the preserved record.
    ``(b) Preserved Record Defined.--In this section, the term 
`preserved record' means any record that is maintained by a person 
other than the Federal Government pursuant to a rule, guidance, or 
other directive from the Internal Revenue Service that requires or 
recommends the person maintain records for a particular period of time 
on a particular matter.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed as--
            ``(1) limiting the preservation of a preserved record for a 
        longer period of time than is required by this section; or
            ``(2) shortening the period of time a preserved record is 
        otherwise required to be maintained.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 31 of title 44, United States Code, is amended by adding at the 
end the following new item:

``3108. Requirement to maintain records.''.
    (c) Effective Date; Applicability.--The amendments made by this 
section shall take effect as of the date of the enactment of this Act 
and shall apply with respect to any preserved record (as such term is 
defined in section 3108(b) of title 44, United States Code, as added by 
subsection (a)) obtained on or after the effective date.

            Passed the House of Representatives July 7 (legislative day 
      July 6), 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.