[Congressional Record Volume 142, Number 134 (Wednesday, September 25, 1996)]
[House]
[Pages H11205-H11213]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         FEDERAL EMPLOYEES EMERGENCY LEAVE TRANSFER ACT OF 1996

  Mr. MICA. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 868) to provide authority for leave transfer for 
Federal employees who are adversely affected by disasters or 
emergencies, and for other purposes, as amended.
  The Clerk read as follows:

                                 S. 868

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, 
                   TITLE I--EMERGENCY LEAVE TRANSFERS

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Federal Employees 
     Emergency Leave Transfer Act of 1996''.

     SEC. 102. AUTHORITY.

       (a) In General.--Chapter 63 of title 5, United States Code, 
     is amended by adding after subchapter V the following new 
     subchapter:

      ``SUBCHAPTER VI--LEAVE TRANSFER IN DISASTERS AND EMERGENCIES

     ``Sec. 6391. Authority for leave transfer program in 
       disasters and emergencies

       ``(a) For the purpose of this section--
       ``(1) `employee' means an employee as defined in section 
     6331(1); and
       ``(2) `agency' means an Executive agency.
       ``(b) In the event of a major disaster or emergency, as 
     declared by the President, that results in severe adverse 
     effects for a substantial number of employees, the President 
     may direct the Office of Personnel Management to establish an 
     emergency leave transfer program under which any employee in 
     any agency may donate unused annual leave for transfer to 
     employees of the same or other agencies who are adversely 
     affected by such disaster or emergency.
       ``(c) The Office of Personnel Management shall establish 
     appropriate requirements for the operation of the emergency 
     leave transfer program under subsection (b), including 
     appropriate limitations on the donation and use of annual 
     leave under the program. An employee may receive and use 
     leave under the program without regard to any requirement 
     that any annual leave and sick leave to a leave recipient's 
     credit must be exhausted before any transferred annual leave 
     may be used.
       ``(d) A leave bank established under subchapter IV may, to 
     the extent provided in regulations prescribed by the Office 
     of Personnel Management, donate annual leave to the emergency 
     leave transfer program established under subsection (b).
       ``(e) Except to the extent that the Office of Personnel 
     Management may prescribe by regulation, nothing in section 
     7351 shall apply to any solicitation, donation, or acceptance 
     of leave under this section.
       ``(f) The Office of Personnel Management shall prescribe 
     regulations necessary for the administration of this 
     section.''.
       (b) Clerical Amendment.--The analysis for chapter 63 of 
     title 5, United States Code, is amended by adding at the end 
     thereof the following:

      ``SUBCHAPTER VI--LEAVE TRANSFER IN DISASTERS AND EMERGENCIES

``6391. Authority for leave transfer program in disasters and 
              emergencies''.

     SEC. 103. EFFECTIVE DATE.

       The amendments made by section 102 shall take effect on the 
     date of enactment of this Act.
                     TITLE II--VETERANS' PREFERENCE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Veterans Employment 
     Opportunities Act of 1996''.

     SEC. 202. EQUAL ACCESS FOR VETERANS.

       (a) Competitive Service.--Section 3304 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(f)(1) No preference eligible, and no individual (other 
     than a preference eligible) who has been separated from the 
     armed forces under honorable conditions after 3 or more years 
     of active service, shall be denied the opportunity to compete 
     for an announced vacant position within an agency, in the 
     competitive service or the excepted service, by reason of--
       ``(A) not having acquired competitive status; or
       ``(B) not being an employee of such agency.
       ``(2) Nothing in this subsection shall prevent an agency 
     from filling a vacant position (whether by appointment or 
     otherwise) solely from individuals on a priority placement 
     list consisting of individuals who have been separated from 
     the agency due to a reduction in force and surplus employees 
     (as defined under regulations prescribed by the Office).''.
       (b) Civil Service Employment Information.--
       (1) Vacant positions.--Section 3327(b) of title 5, United 
     States Code, is amended by striking ``and'' at the end of 
     paragraph (1), by redesignating paragraph (2) as paragraph 
     (3), and by inserting after paragraph (1) the following:
       ``(2) each vacant position in the agency for which 
     competition is restricted to individuals having competitive 
     status or employees of such agency, excluding any position 
     under paragraph (1), and''.
       (2) Additional information.--Section 3327 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``(c) Any notification provided under this section shall, 
     for all positions under subsection (b)(1) as to which section 
     3304(f) applies and for all positions under subsection 
     (b)(2), include a notation as to the applicability of section 
     3304(f) with respect thereto.
       ``(d) In consultation with the Secretary of Labor, the 
     Office shall submit to Congress and the President, no less 
     frequently than every 2 years, a report detailing, with 
     respect to the period covered by such report--
       ``(1) the number of positions listed under this section 
     during such period;
       ``(2) the number of preference eligibles and other 
     individuals described in section 3304(f)(1) referred to such 
     positions during such period; and
       ``(3) the number of preference eligibles and other 
     individuals described in section 3304(f)(1) appointed to such 
     positions during such period.''.
       (c) Governmentwide Lists.--
       (1) Vacant positions.--Section 3330(b) of title 5, United 
     States Code, is amended to read as follows:
       ``(b) The Office of Personnel Management shall cause to be 
     established and kept current--
       ``(1) a comprehensive list of all announcements of vacant 
     positions (in the competitive service and the excepted 
     service, respectively) within each agency that are to be 
     filled by appointment for more than 1 year and for which 
     applications are being or will soon be accepted from outside 
     the agency's work force; and
       ``(2) a comprehensive list of all announcements of vacant 
     positions within each agency for which applications are being 
     or will soon be accepted and for which competition is 
     restricted to individuals having competitive status or 
     employees of such agency, excluding any position required to 
     be listed under paragraph (1).''.

[[Page H11206]]

       (2) Additional information.--Section 3330(c) of title 5, 
     United States Code, is amended by striking ``and'' at the end 
     of paragraph (2), by redesignating paragraph (3) as paragraph 
     (4), and by inserting after paragraph (2) the following:
       ``(3) for all positions under subsection (b)(1) as to which 
     section 3304(f) applies and for all positions under 
     subsection (b)(2), a notation as to the applicability of 
     section 3304(f) with respect thereto; and''.
       (3) Conforming amendment.--Section 3330(d) of title 5, 
     United States Code, is amended by striking ``The list'' and 
     inserting ``Each list under subsection (b)''.
       (d) Provisions Relating to the United States Postal 
     Service.--
       (1) In general.--Subsection (a) of section 1005 of title 
     39, United States Code, is amended by adding at the end the 
     following:
       ``(5)(A) The provisions of section 3304(f) of title 5 shall 
     apply with respect to the Postal Service in the same manner 
     and under the same conditions as if the Postal Service were 
     an agency within the meaning of such provisions.
       ``(B) Nothing in this subsection shall be considered to 
     require that the Postal Service accept an application from a 
     preference eligible or any other individual described in 
     paragraph (1) of such section 3304(f), who is not an employee 
     of the Postal Service, if--
       ``(i) the vacant position involved is advertised for bids 
     pursuant to a collective-bargaining agreement;
       ``(ii) the collective-bargaining agreement restricts 
     competition for such position to individuals employed in the 
     specific bargaining unit or facility within the Postal 
     Service in which the position is located;
       ``(iii) the collective-bargaining agreement provides that 
     the successful bid shall be selected solely on the basis of 
     seniority; and
       ``(iv) selection does not result in a promotion or change 
     in duties for the successful bidder.
       ``(C) The provisions of this paragraph shall not be 
     modified by any program developed under section 1004 of this 
     title or any collective-bargaining agreement entered into 
     under chapter 12 of this title.''.
       (2) Conforming amendment.--The first sentence of section 
     1005(a)(2) of title 39, United States Code, is amended by 
     striking ``title.'' and inserting ``title, subject to 
     paragraph (5) of this subsection.''.

     SEC. 203. SPECIAL PROTECTIONS FOR PREFERENCE ELIGIBLES IN 
                   REDUCTIONS IN FORCE.

       (a) In General.--Section 3502 of title 5, United States 
     Code, as amended by section 1034 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 430), is amended by adding at the end the 
     following:
       ``(g)(1) A position occupied by a preference eligible shall 
     not be placed in a single-position competitive level if the 
     preference eligible is qualified to perform the essential 
     functions of any other position at the same grade (or 
     occupational level) in the competitive area. In such cases, 
     the preference eligible shall be entitled to be placed in 
     another competitive level for which such preference eligible 
     is qualified. If the preference eligible is qualified for 
     more than one competitive level, such preference eligible 
     shall be placed in the competitive level containing the most 
     positions.
       ``(2) For purposes of paragraph (1)--
       ``(A) a preference eligible shall be considered qualified 
     to perform the essential functions of a position if, by 
     reason of experience, training, or education (and, in the 
     case of a disabled veteran, with reasonable accommodation), a 
     reasonable person could conclude that the preference eligible 
     would be able to perform those functions successfully within 
     a period of 150 days; and
       ``(B) a preference eligible shall not be considered 
     unqualified solely because such preference eligible does not 
     meet the minimum qualification requirements relating to 
     previous experience in a specified grade (or occupational 
     level), if any, that are established for such position by the 
     Office of Personnel Management or the agency.
       ``(h) In connection with any reduction in force, a 
     preference eligible whose current or most recent performance 
     rating is at least fully successful (or the equivalent) shall 
     have, in addition to such assignment rights as are prescribed 
     by regulation, the right, in lieu of separation, to be 
     assigned to any position within the agency conducting the 
     reduction in force--
       ``(1) for which such preference eligible is qualified under 
     subsection (g)(2)--
       ``(A) that is within the preference eligible's commuting 
     area and at the same grade (or occupational level) as the 
     position from which the preference eligible was released, and 
     that is then occupied by an individual, other than another 
     preference eligible, who was placed in such position (whether 
     by appointment or otherwise) within 6 months before the 
     reduction in force if, within 12 months prior to the date on 
     which such individual was so placed in such position, such 
     individual had been employed in the same competitive area as 
     the preference eligible; or
       ``(B) that is within the preference eligible's competitive 
     area and that is then occupied by an individual, other than 
     another preference eligible, who was placed in such position 
     (whether by appointment or otherwise) within 6 months before 
     the reduction in force; or
       ``(2) for which such preference eligible is qualified that 
     is within the preference eligible's competitive area and that 
     is not more than 3 grades (or pay levels) below that of the 
     position from which the preference eligible was released, 
     except that, in the case of a preference eligible with a 
     compensable service-connected disability of 30 percent or 
     more, this paragraph shall be applied by substituting `5 
     grades' for `3 grades'.

     In the event that a preference eligible is entitled to 
     assignment to more than 1 position under this subsection, the 
     agency shall assign the preference eligible to any such 
     position requiring no reduction (or, if there is no such 
     position, the least reduction) in basic pay. A position shall 
     not, with respect to a preference eligible, be considered to 
     satisfy the requirements of paragraph (1) or (2), as 
     applicable, if it does not last for at least 12 months 
     following the date on which such preference eligible is 
     assigned to such position under this subsection.
       ``(i) A preference eligible may challenge the 
     classification of any position to which the preference 
     eligible asserts assignment rights (as provided by, or 
     prescribed by regulations described in, subsection (h)) in an 
     action before the Merit Systems Protection Board.
       ``(j)(1) Not later than 3 months after the date of the 
     enactment of this subsection, each Executive agency shall 
     establish an agencywide priority placement program to 
     facilitate employment placement for employees who--
       ``(A)(i) are scheduled to be separated from service due to 
     a reduction in force under--
       ``(I) regulations prescribed under this section; or
       ``(II) procedures established under section 3595; or
       ``(ii) are separated from service due to such a reduction 
     in force; and
       ``(B)(i) have received a rating of at least fully 
     successful (or the equivalent) as the last performance rating 
     of record used for retention purposes; or
       ``(ii) occupy positions excluded from a performance 
     appraisal system by law, regulation, or administrative action 
     taken by the Office of Personnel Management.
       ``(2)(A) Each agencywide priority placement program under 
     this subsection shall include provisions under which a vacant 
     position shall not (except as provided in this paragraph or 
     any other statute providing the right of reemployment to any 
     individual) be filled by the appointment or transfer of any 
     individual from outside of that agency (other than an 
     individual described in subparagraph (B)) if--
       ``(i) there is then available any individual described in 
     subparagraph (B) who is qualified for the position; and
       ``(ii) the position--
       ``(I) is at the same grade or pay level (or the equivalent) 
     or not more than 3 grades (or grade intervals) below that of 
     the position last held by such individual before placement in 
     the new position;
       ``(II) is within the same commuting area as the 
     individual's last-held position (as referred to in subclause 
     (I)) or residence; and
       ``(III) has the same type of work schedule (whether full-
     time, part-time, or intermittent) as the position last held 
     by the individual.
       ``(B) For purposes of an agencywide priority placement 
     program, an individual shall be considered to be described in 
     this subparagraph if such individual--
       ``(i)(I) is an employee of such agency who is scheduled to 
     be separated, as described in paragraph (1)(A)(i); or
       ``(II) is an individual who became a former employee of 
     such agency as a result of a separation, as described in 
     paragraph (1)(A)(ii), excluding any individual who separated 
     voluntarily under subsection (f); and
       ``(ii) satisfies clause (i) or (ii) of paragraph (1)(B).
       ``(3)(A) If after a reduction in force the agency has no 
     positions of any type within the local commuting areas 
     specified in this subsection, the individual may designate a 
     different local commuting area where the agency has 
     continuing positions in order to exercise reemployment rights 
     under this subsection. An agency may determine that such 
     designations are not in the interest of the Government for 
     the purpose of paying relocation expenses under subchapter II 
     of chapter 57.
       ``(B) At its option, an agency may administratively extend 
     reemployment rights under this subsection to include other 
     local commuting areas.
       ``(4)(A) In selecting employees for positions under this 
     subsection, the agency shall place qualified present and 
     former employees in retention order by veterans' preference 
     subgroup and tenure group.
       ``(B) An agency may not pass over a qualified present or 
     former employee to select an individual in a lower veterans' 
     preference subgroup within the tenure group, or in a lower 
     tenure group.
       ``(C) Within a subgroup, the agency may select a qualified 
     present or former employee without regard to the individual's 
     total creditable service.
       ``(5) An individual is eligible for reemployment priority 
     under this subsection for 2 years from the effective date of 
     the reduction in force from which the individual will be, or 
     has been, separated under this section or section 3595, as 
     the case may be.

       ``(6) An individual loses eligibility for reemployment 
     priority under this subsection when the individual--
       ``(A) requests removal in writing;
       ``(B) accepts or declines a bona fide offer under this 
     subsection or fails to accept such an offer within the period 
     of time allowed for such acceptance, or

[[Page H11207]]

       ``(C) separates from the agency before being separated 
     under this section or section 3595, as the case may be.
     A present or former employee who declines a position with a 
     representative rate (or equivalent) that is less than the 
     rate of the position from which the individual was separated 
     under this section retains eligibility for positions with a 
     higher representative rate up to the rate of the individual's 
     last position.
       ``(7) Whenever more than one individual is qualified for a 
     position under this subsection, the agency shall select the 
     most highly qualified individual, subject to paragraph (4).
       ``(8) The Office of Personnel Management shall issue 
     regulations to implement this subsection.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Exception.--The amendments made by this section shall 
     take effect with respect to the Department of Defense at the 
     end of the 1-year period beginning on the date of the 
     enactment of this Act.

     SEC. 204. IMPROVED REDRESS FOR VETERANS.

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

     ``Sec. 3330a. Administrative redress

       ``(a)(1) Any preference eligible or other individual 
     described in section 3304(f)(1) who alleges that an agency 
     has violated such individual's rights under any statute or 
     regulation relating to veterans' preference, or any right 
     afforded such individual by section 3304(f), may file a 
     complaint with the Secretary of Labor.
       ``(2) A complaint under this subsection must be filed 
     within 60 days after the date of the alleged violation, and 
     the Secretary shall process such complaint in accordance with 
     sections 4322 (a) through (e)(1) and 4326 of title 38.
       ``(b)(1) If the Secretary of Labor is unable to resolve the 
     complaint within 60 days after the date on which it is filed, 
     the complainant may elect to appeal the alleged violation to 
     the Merit Systems Protection Board in accordance with such 
     procedures as the Merit Systems Protection Board shall 
     prescribe, except that in no event may any such appeal be 
     brought--
       ``(A) before the 61st day after the date on which the 
     complaint is filed under subsection (a); or
       ``(B) later than 15 days after the date on which the 
     complainant receives notification from the Secretary of Labor 
     under section 4322(e)(1) of title 38.
       ``(2) An appeal under this subsection may not be brought 
     unless--
       ``(A) the complainant first provides written notification 
     to the Secretary of Labor of such complainant's intention to 
     bring such appeal; and
       ``(B) appropriate evidence of compliance with subparagraph 
     (A) is included (in such form and manner as the Merit Systems 
     Protection Board may prescribe) with the notice of appeal 
     under this subsection.
       ``(3) Upon receiving notification under paragraph (2)(A), 
     the Secretary of Labor shall not continue to investigate or 
     further attempt to resolve the complaint to which such 
     notification relates.
       ``(c) This section shall not be construed to prohibit a 
     preference eligible from appealing directly to the Merit 
     Systems Protection Board from any action which is appealable 
     to the Board under any other law, rule, or regulation, in 
     lieu of administrative redress under this section.

     ``Sec. 3330b. Judicial redress

       ``(a) In lieu of continuing the administrative redress 
     procedure provided under section 3330a(b), a preference 
     eligible or other individual described in section 3304(f)(1) 
     may elect, in accordance with this section, to terminate 
     those administrative proceedings and file an action with the 
     appropriate United States district court not later than 60 
     days after the date of the election.
       ``(b) An election under this section may not be made--
       ``(1) before the 121st day after the date on which the 
     appeal is filed with the Merit Systems Protection Board under 
     section 3330a(b); or
       ``(2) after the Merit Systems Protection Board has issued a 
     judicially reviewable decision on the merits of the appeal.
       ``(c) An election under this section shall be made, in 
     writing, in such form and manner as the Merit Systems 
     Protection Board shall by regulation prescribe. The election 
     shall be effective as of the date on which it is received, 
     and the administrative proceeding to which it relates shall 
     terminate immediately upon the receipt of such election.

     ``Sec. 3330c. Remedy

       ``(a) If the Merit Systems Protection Board (in a 
     proceeding under section 3330a) or a court (in a proceeding 
     under section 3330b) determines that an agency has violated a 
     right described in section 3330a, the Board or court (as the 
     case may be) shall order the agency to comply with such 
     provisions and award compensation for any loss of wages or 
     benefits suffered by the individual by reason of the 
     violation involved. If the Board or court determines that 
     such violation was willful, it shall award an amount equal to 
     backpay as liquidated damages.
       ``(b) A preference eligible or other individual described 
     in section 3304(f)(1) who prevails in an action under section 
     3330a or 3330b shall be awarded reasonable attorney fees, 
     expert witness fees, and other litigation expenses.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 33 of title 5, United States Code, is 
     amended by adding after the item relating to section 3330 the 
     following:

``3330a. Administrative redress.
``3330b. Judicial redress.
``3330c. Remedy.''.

     SEC. 205. EXTENSION OF VETERANS' PREFERENCE.

       (a) Amendment to Title 5, United States Code.--Paragraph 
     (3) of section 2108 of title 5, United States Code, is 
     amended by striking ``the Federal Bureau of Investigation and 
     Drug Enforcement Administration Senior Executive Service, or 
     the General Accounting Office;'' and inserting ``or the 
     Federal Bureau of Investigation and Drug Enforcement 
     Administration Senior Executive Service;''.
       (b) Amendments to Title 3, United States Code.--
       (1) In general.--Chapter 2 of title 3, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 115. Veterans' preference

       ``(a) Subject to subsection (b), appointments under 
     sections 105, 106, and 107 shall be made in accordance with 
     section 2108, and sections 3309 through 3312, of title 5.
       ``(b) Subsection (a) shall not apply to any appointment to 
     a position the rate of basic pay for which is at least equal 
     to the minimum rate established for positions in the Senior 
     Executive Service under section 5382 of title 5 and the 
     duties of which are comparable to those described in section 
     3132(a)(2) of such title or to any other position if, with 
     respect to such position, the President makes certification--
       ``(1) that such position is--
       ``(A) a confidential or policy-making position; or
       ``(B) a position for which political affiliation or 
     political philosophy is otherwise an important qualification; 
     and
       ``(2) that any individual selected for such position is 
     expected to vacate the position at or before the end of the 
     President's term (or terms) of office.

     Each individual appointed to a position described in the 
     preceding sentence as to which the expectation described in 
     paragraph (2) applies shall be notified as to such 
     expectation, in writing, at the time of appointment to such 
     position.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 2 of title 3, United States Code, is 
     amended by adding at the end the following:

``115. Veterans' preference.''.

       (c) Legislative Branch Appointments.--
       (1) Definitions.--For the purposes of this subsection, the 
     terms ``employing office'', ``covered employee'', and 
     ``Board'' shall each have the meaning given such term by 
     section 101 of the Congressional Accountability Act of 1995 
     (2 U.S.C. 1301).
       (2) Rights and protections.--The rights and protections 
     established under section 2108, sections 3309 through 3312, 
     and subchapter I of chapter 35, of title 5, United States 
     Code, shall apply to covered employees.
       (3) Remedies.--
       (A) In general.--The remedy for a violation of paragraph 
     (2) shall be such remedy as would be appropriate if awarded 
     under applicable provisions of title 5, United States Code, 
     in the case of a violation of the relevant corresponding 
     provision (referred to in paragraph (2)) of such title.
       (B) Procedure.--The procedure for consideration of alleged 
     violations of paragraph (2) shall be the same as apply under 
     section 401 of the Congressional Accountability Act of 1995 
     (and the provisions of law referred to therein) in the case 
     of an alleged violation of part A of title II of such Act.
       (4) Regulations to implement subsection.--
       (A) In general.--The Board shall, pursuant to section 304 
     of the Congressional Accountability Act of 1995 (2 U.S.C. 
     1384), issue regulations to implement this subsection.
       (B) Agency regulations.--The regulations issued under 
     subparagraph (A) shall be the same as the most relevant 
     substantive regulations (applicable with respect to the 
     executive branch) promulgated to implement the statutory 
     provisions referred to in paragraph (2) except insofar as the 
     Board may determine, for good cause shown and stated together 
     with the regulation, that a modification of such regulations 
     would be more effective for the implementation of the rights 
     and protections under this subsection.
       (C) Coordination.--The regulations issued under 
     subparagraph (A) shall be consistent with section 225 of the 
     Congressional Accountability Act of 1995 (2 U.S.C. 1361).
       (5) Applicability.--Notwithstanding any other provision of 
     this subsection, the term ``covered employee'' shall not, for 
     purposes of this subsection, include an employee--
       (A) whose appointment is made by the President with the 
     advice and consent of the Senate;
       (B) whose appointment is made by a Member of Congress or by 
     a committee or subcommittee of either House of Congress; or
       (C) who is appointed to a position, the duties of which are 
     equivalent to those of a Senior Executive Service position 
     (within the meaning of section 3132(a)(2) of title 5, United 
     States Code).

[[Page H11208]]

       (6) Effective date.--Paragraphs (2) and (3) shall be 
     effective as of the effective date of the regulations under 
     paragraph (4).
       (d) Judicial Branch Appointments.--
       (1) In general.--Subject to paragraph (2), appointments to 
     positions in the judicial branch of the Government shall be 
     made in accordance with section 2108, and sections 3309 
     through 3312, of title 5, United States Code.
       (2) Reductions in force.--Subject to paragraph (2), 
     reductions in force in the judicial branch of the Government 
     shall provide preference eligibles with protections 
     substantially similar to those provided under subchapter I of 
     chapter 35 of title 5, United States Code.
       (3) Exclusions.--Paragraphs (1) and (2) shall not apply 
     to--
       (A) an appointment made by the President, with the advice 
     and consent of the Senate;
       (B) an appointment as a judicial officer;
       (C) an appointment as a law clerk or secretary to a justice 
     or judge of the United States; or
       (D) an appointment to a position, the duties of which are 
     equivalent to those of a Senior Executive Service position 
     (within the meaning of section 3132(a)(2) of title 5, United 
     States Code).
       (4) Redress procedures.--The Judicial Conference of the 
     United States shall prescribe regulations under which redress 
     procedures (substantially similar to the procedures 
     established by the amendments made by section 204) shall be 
     available for alleged violations of any rights provided by 
     this subsection.
       (5) Definitions.--For purposes of this subsection--
       (A) the term ``judicial officer'' means a justice, judge, 
     or magistrate judge listed in subparagraph (A), (B), (F), or 
     (G) of section 376(a)(1) of title 28, United States Code; and
       (B) the term ``justice or judge of the United States'' has 
     the meaning given such term by section 451 of such title 28.

     SEC. 206. VETERANS' PREFERENCE REQUIRED FOR REDUCTIONS IN 
                   FORCE IN THE FEDERAL AVIATION ADMINISTRATION.

       Section 347(b) of the Department of Transportation and 
     Related Agencies Appropriations Act, 1996 (109 Stat. 460) is 
     amended by striking ``and'' at the end of paragraph (6), by 
     striking the period at the end of paragraph (7) and inserting 
     ``; and'', and by adding at the end the following:
       ``(8) sections 3501-3504, as such sections relate to 
     veterans' preference.''.

     SEC. 207. DEFINITIONAL AMENDMENT.

       Subparagraph (A) of section 2108(1) of title 5, United 
     States Code, is amended by inserting ``during a military 
     operation in a qualified hazardous duty area (within the 
     meaning of the first 2 sentences of section 1(b) of Public 
     Law 104-117) and in accordance with requirements that may be 
     prescribed in regulations of the Secretary of Defense,'' 
     after ``for which a campaign badge has been authorized,''.
       TITLE III--PROVISIONS RELATING TO THE THRIFT SAVINGS PLAN
  Subtitle A--Additional Investment Funds for the Thrift Savings Plan

     SEC. 301. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings 
     Investment Funds Act of 1996''.

     SEC. 302. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS 
                   PLAN.

       Section 8438 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (5) through (8) as 
     paragraphs (6) through (9), respectively;
       (B) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) the term `International Stock Index Investment Fund' 
     means the International Stock Index Investment Fund 
     established under subsection (b)(1)(E);'';
       (C) in paragraph (8) (as redesignated by subparagraph (A) 
     of this paragraph) by striking out ``and'' at the end 
     thereof;
       (D) in paragraph (9) (as redesignated by subparagraph (A) 
     of this paragraph)--
       (i) by striking out ``paragraph (7)(D)'' in each place it 
     appears and inserting in each such place ``paragraph 
     (8)(D)''; and
       (ii) by striking out the period and inserting in lieu 
     thereof a semicolon and ``and''; and
       (E) by adding at the end thereof the following new 
     paragraph:
       ``(10) the term `Small Capitalization Stock Index 
     Investment Fund' means the Small Capitalization Stock Index 
     Investment Fund established under subsection (b)(1)(D).''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B) by striking out ``and'' at the end 
     thereof;
       (ii) in subparagraph (C) by striking out the period and 
     inserting in lieu thereof a semicolon; and
       (iii) by adding at the end thereof the following new 
     subparagraphs:
       ``(D) a Small Capitalization Stock Index Investment Fund as 
     provided in paragraph (3); and
       ``(E) an International Stock Index Investment Fund as 
     provided in paragraph (4).''; and
       (B) by adding at the end thereof the following new 
     paragraphs:
       ``(3)(A) The Board shall select an index which is a 
     commonly recognized index comprised of common stock the 
     aggregate market value of which represents the United States 
     equity markets excluding the common stocks included in the 
     Common Stock Index Investment Fund.
       ``(B) The Small Capitalization Stock Index Investment Fund 
     shall be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the Small Capitalization Stock Index Investment 
     Fund that is invested in each stock is the same as the 
     percentage determined by dividing the aggregate market value 
     of all shares of that stock by the aggregate market value of 
     all shares of all stocks included in such index.
       ``(4)(A) The Board shall select an index which is a 
     commonly recognized index comprised of stock the aggregate 
     market value of which is a reasonably complete representation 
     of the international equity markets excluding the United 
     States equity markets.
       ``(B) The International Stock Index Investment Fund shall 
     be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the International Stock Index Investment Fund 
     that is invested in each stock is the same as the percentage 
     determined by dividing the aggregate market value of all 
     shares of that stock by the aggregate market value of all 
     shares of all stocks included in such index.''.

     SEC. 303. ACKNOWLEDGEMENT OF INVESTMENT RISK.

       Section 8439(d) of title 5, United States Code, is amended 
     by striking out ``Each employee, Member, former employee, or 
     former Member who elects to invest in the Common Stock Index 
     Investment Fund or the Fixed Income Investment Fund described 
     in paragraphs (1) and (3),'' and inserting in lieu thereof 
     ``Each employee, Member, former employee, or former Member 
     who elects to invest in the Common Stock Index Investment 
     Fund, the Fixed Income Investment Fund, the International 
     Stock Index Investment Fund, or the Small Capitalization 
     Stock Index Investment Fund, defined in paragraphs (1), (3), 
     (5), and (10),''.

     SEC. 304. EFFECTIVE DATE.

       This subtitle shall take effect on the date of enactment of 
     this Act, and the Funds established under this subtitle shall 
     be offered for investment at the earliest practicable 
     election period (described in section 8432(b) of title 5, 
     United States Code) as determined by the Executive Director 
     in regulations.
             Subtitle B--Thrift Savings Accounts Liquidity

     SEC. 311. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings Plan Act 
     of 1996''.

     SEC. 312. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE 
                   MINIMUS ACCOUNTS; CIVIL SERVICE RETIREMENT 
                   SYSTEM PARTICIPANTS.

       Section 8351(b) of title 5, United States Code, is 
     amended--
       (1) in paragraph (5)--
       (A) in subparagraph (B)--
       (i) by striking out ``An election, change of election, or 
     modification (relating to the commencement date of a deferred 
     annuity)'' and inserting in lieu thereof ``An election or 
     change of election'';
       (ii) by inserting ``or withdrawal'' after ``and a loan'';
       (iii) by inserting ``and (h)'' after ``8433(g)'';
       (iv) by striking out ``the election, change of election, or 
     modification'' and inserting in lieu thereof ``the election 
     or change of election''; and
       (v) by inserting ``or withdrawal'' after ``for such loan''; 
     and
       (B) in subparagraph (D)--
       (i) by inserting ``or withdrawals'' after ``of loans''; and
       (ii) by inserting ``or (h)'' after ``8433(g)''; and
       (2) in paragraph (6)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b)''.

     SEC. 313. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM 
                   PARTICIPANTS.

       (a) In General.--Section 8433 of title 5, United States 
     Code, is amended--
       (1) by striking out subsections (b) and (c) and inserting 
     in lieu thereof the following:
       ``(b) Subject to section 8435 of this title, any employee 
     or Member who separates from Government employment is 
     entitled and may elect to withdraw from the Thrift Savings 
     Fund the balance of the employee's or Member's account as--
       ``(1) an annuity;
       ``(2) a single payment;
       ``(3) 2 or more substantially equal payments to be made not 
     less frequently than annually; or
       ``(4) any combination of payments as provided under 
     paragraphs (1) through (3) as the Executive Director may 
     prescribe by regulation.
       ``(c)(1) In addition to the right provided under subsection 
     (b) to withdraw the balance of the account, an employee or 
     Member who separates from Government service and who has not 
     made a withdrawal under subsection (h)(1)(A) may make one 
     withdrawal of any amount as a single payment in accordance 
     with subsection (b)(2) from the employee's or Member's 
     account.
       ``(2) An employee or Member may request that the amount 
     withdrawn from the Thrift

[[Page H11209]]

     Savings Fund in accordance with subsection (b)(2) be 
     transferred to an eligible retirement plan.
       ``(3) The Executive Director shall make each transfer 
     elected under paragraph (2) directly to an eligible 
     retirement plan or plans (as defined in section 402(c)(8) of 
     the Internal Revenue Code of 1986) identified by the 
     employee, Member, former employee, or former Member for whom 
     the transfer is made.
       ``(4) A transfer may not be made for an employee, Member, 
     former employee, or former Member under paragraph (2) until 
     the Executive Director receives from that individual the 
     information required by the Executive Director specifically 
     to identify the eligible retirement plan or plans to which 
     the transfer is to be made.'';
       (2) in subsection (d)--
       (A) in paragraph (1) by striking out ``Subject to paragraph 
     (3)(A)'' and inserting in lieu thereof ``Subject to paragraph 
     (3)'';
       (B) by striking out paragraph (2) and redesignating 
     paragraph (3) as paragraph (2); and
       (C) in paragraph (2) (as redesignated under subparagraph 
     (B) of this paragraph)--
       (i) in subparagraph (A) by striking out ``(A)''; and
       (ii) by striking out subparagraph (B);
       (3) in subsection (f)(1)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b), or'' and inserting a comma;
       (4) in subsection (f)(2)--
       (A) by striking out ``February 1'' and inserting in lieu 
     thereof ``April 1'';
       (B) in subparagraph (A)--
       (i) by striking out ``65'' and inserting in lieu thereof 
     ``70\1/2\''; and
       (ii) by inserting ``or'' after the semicolon;
       (C) by striking out subparagraph (B); and
       (D) by redesignating subparagraph (C) as subparagraph (B);
       (5) in subsection (g)--
       (A) in paragraph (1) by striking out ``after December 31, 
     1987, and'', and by adding at the end of the paragraph the 
     following sentence: ``Before a loan is issued, the Executive 
     Director shall provide in writing the employee or Member with 
     appropriate information concerning the cost of the loan 
     relative to other sources of financing, as well as the 
     lifetime cost of the loan, including the difference in 
     interest rates between the funds offered by the Thrift 
     Savings Fund, and any other effect of such loan on the 
     employee's or Member's final account balance.''; and
       (B) by striking out paragraph (2) and redesignating 
     paragraphs (3) through (5) as paragraphs (2) through (4), 
     respectively; and
       (6) by adding after subsection (g) the following new 
     subsection:
       ``(h)(1) An employee or Member may apply, before 
     separation, to the Board for permission to withdraw an amount 
     from the employee's or Member's account based upon--
       ``(A) the employee or Member having attained age 59\1/2\; 
     or
       ``(B) financial hardship.
       ``(2) A withdrawal under paragraph (1)(A) shall be 
     available to each eligible participant one time only.
       ``(3) A withdrawal under paragraph (1)(B) shall be 
     available only for an amount not exceeding the value of that 
     portion of such account which is attributable to 
     contributions made by the employee or Member under section 
     8432(a) of this title.
       ``(4) Withdrawals under paragraph (1) shall be subject to 
     such other conditions as the Executive Director may prescribe 
     by regulation.
       ``(5) A withdrawal may not be made under this subsection 
     unless the requirements of section 8435(e) of this title are 
     satisfied.''.
       (b) Invalidity of Certain Prior Elections.--Any election 
     made under section 8433(b)(2) of title 5, United States Code 
     (as in effect before the effective date of this subtitle), 
     with respect to an annuity which has not commenced before the 
     implementation date of this subtitle as provided by 
     regulation by the Executive Director in accordance with 
     section 318 shall be invalid.

     SEC. 314. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR 
                   IN-SERVICE WITHDRAWALS.

       Section 8435 of title 5, United States Code, is amended--
       (1) in subsection (a)(1)(A)--
       (A) by striking out ``may make an election under subsection 
     (b)(3) or (b)(4) of section 8433 of this title or change an 
     election previously made under subsection (b)(1) or (b)(2) of 
     such section'' and inserting in lien thereof ``may withdraw 
     all or part of a Thrift Savings Fund account under subsection 
     (b) (2), (3), or (4) of section 8433 of this title or change 
     a withdrawal election''; and
       (B) by adding at the end thereof ``A married employee or 
     Member (or former employee or Member) may make a withdrawal 
     from a Thrift Savings Fund account under subsection (c)(1) of 
     section 8433 of this title only if the employee or Member (or 
     former employee or Member) satisfies the requirements of 
     subparagraph (B).'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking out ``An election, change of election, or 
     modification of the commencement date of a deferred annuity'' 
     and inserting in lieu thereof ``An election or change of 
     election''; and
       (ii) by striking out ``modification, or transfer'' and 
     inserting in lien thereof ``or transfer''; and
       (B) in paragraph (2) in the matter following subparagraph 
     (B)(ii) by striking out ``modification,'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by inserting ``or withdrawal'' after ``A loan'';
       (II) by inserting ``and (h)'' after ``8433(g)''; and
       (III) by inserting ``or withdrawal'' after ``such loan'';

       (ii) in subparagraph (B) by inserting ``or withdrawal'' 
     after ``loan''; and
       (iii) in subparagraph (C)--

       (I) by inserting ``or withdrawal'' after ``to a loan''; and
       (II) by inserting ``or withdrawal'' after ``for such 
     loan''; and

       (B) in paragraph (2)--
       (i) by inserting ``or withdrawal'' after ``loan''; and
       (ii) by inserting ``and (h)'' after ``8344(g)''; and
       (4) in subsection (g)--
       (A) by inserting ``or withdrawals'' after ``loans''; and
       (B) by inserting ``and (h)'' after ``8344(g)''.

     SEC. 315. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY.

       (a) Justices and Judges.--Section 8440a(b)(7) of title 5, 
     United States Code, is amended--
       (1) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (2) by striking out ``unless the justice or judge elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     section 8433(b)''.
       (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of 
     title 5, United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the bankruptcy judge or 
     magistrate elects, at such time and otherwise in such manner 
     as the Executive Director prescribes, one of the options 
     available under subsection (b)''.
       (c) Federal Claims Judges.--Section 8440c(b) of title 5, 
     United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the judge elects, at such time 
     and otherwise in such manner as the Executive Director 
     prescribes, one of the options available under section 
     8433(b)''.

     SEC. 316. DEFINITION OF BASIC PAY.

       (a) In General.--(1) Section 8401(4) of title 5, United 
     States Code, is amended by striking out ``except as provided 
     in subchapter III of this chapter,''.
       (2) Section 8431 of title 5, United States Code, is 
     repealed.
       (b) Technical and Conforming Amendments.--(1) The table of 
     sections for chapter 84 of title 5, United States Code, is 
     amended by striking out the item relating to section 8431.
       (2) Section 5545a(h)(2)(A) of title 5, United States Code, 
     is amended by striking out ``8431,''.
       (3) Section 615(f) of the Treasury, Postal Service, and 
     General Government Appropriations Act, 1996 (Public Law 104-
     52; 109 Stat. 500; 5 U.S.C. 5343 note) is amended by striking 
     out ``section 8431 of title 5, United States Code,''.

     SEC. 317. ELIGIBLE ROLLOVER DISTRIBUTIONS.

       Section 8432 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(j)(1) For the purpose of this subsection--
       ``(A) the term `eligible rollover distribution' has the 
     meaning given such term by section 402(c)(4) of the Internal 
     Revenue Code of 1986; and
       ``(B) the term `qualified trust' has the meaning given such 
     term by section 402(c)(8) of the Internal Revenue Code of 
     1986.
       ``(2) An employee or Member may contribute to the Thrift 
     Savings Fund an eligible rollover distribution from a 
     qualified trust. A contribution made under this subsection 
     shall be made in the form described in section 401(a)(31) of 
     the Internal Revenue Code of 1986. In the case of an eligible 
     rollover distribution, the maximum amount transferred to the 
     Thrift Savings Fund shall not exceed the amount which would 
     otherwise have been included in the employee's or Member's 
     gross income for Federal income tax purposes.
       ``(3) The Executive Director shall prescribe regulations to 
     carry out this subsection.''.

     SEC. 318. EFFECTIVE DATE.

       This subtitle shall take effect on the date of the 
     enactment of this Act, and withdrawals, loans, rollovers, and 
     elections as provided under the amendments made by this 
     subtitle shall be made at the earliest practicable date as 
     determined by the Executive Director in regulations.

[[Page H11210]]

  TITLE IV--PROVISIONS RELATING TO THE CONVERSION OF CERTAIN EXCEPTED 
       SERVICE POSITIONS IN THE UNITED STATES FIRE ADMINISTRATION

     SEC. 401. CONVERSION OF POSITIONS.

       (a) In General.--No later than the date described under 
     subsection (d)(1), the Director of the Federal Emergency 
     Management Agency and the Director of the Office of Personnel 
     Management shall take such actions as necessary to convert 
     each excepted service position established before the date of 
     the enactment of this Act under section 7(c)(4) of the 
     Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
     2206(c)(4)) to a competitive service position.
       (b) Effect on Employees.--Any employee employed on the date 
     of the enactment of this Act in an excepted service position 
     converted under subsection (a)--
       (1) shall remain employed in the competitive service 
     position so converted without a break in service;
       (2) by reason of such conversion, shall have no--
       (A) diminution of seniority;
       (B) reduction of cumulative years of service; and
       (C) requirement to serve an additional probationary period 
     applied; and
       (3) shall retain their standing and participation with 
     respect to chapter 83 or 84 of title 5, United States Code, 
     relating to Federal retirement.
       (c) Prospective Competitive Service Positions.--Section 
     7(c)(4) of the Federal Fire Prevention and Control Act of 
     1974 (15 U.S.C. 2206(c)(4)) is amended to read as follows:
       ``(4) appoint faculty members to competitive service 
     positions and with respect to temporary and intermittent 
     services, to make appointments of consultants to the same 
     extent as is authorized by section 3109 of title 5, United 
     States Code;''.
       (d) Effective Date.--(1) Except as provided under paragraph 
     (2), this section shall take effect on the first day of the 
     first pay period, applicable to the positions described under 
     subsection (a), beginning after the date of the enactment of 
     this Act.
       (2)(A) The Director of the Federal Emergency Management 
     Agency and the Director of the Office of Personnel Management 
     shall take such actions as directed under subsection (a) on 
     and after the date of the enactment of this Act.
       (B) Subsection (c) shall take effect on the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida [Mr. Mica] and the gentleman from American Samoa [Mr. 
Faleomavaega] each will control 20 minutes.
  The Chair recognizes the gentleman from Florida [Mr. Mica].
  Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the bill before us contains actually three bills that 
have already passed the other body, S. 868, S. 1080, and S. 1488. The 
Senate passed two of these bills by unanimous consent, and the third by 
voice vote. In addition, title II of this bill is virtually identical 
to H.R. 3586, which the House passed by voice vote on July 30, 1996.
  Title I of this bill is identical in all material respects to S. 868, 
the Federal Employee Emergency Leave Transfer Act of 1995. This title 
authorizes the establishment of a special leave bank for Federal 
employees in the event of a presidentially declared emergency. The 
tragedy at Oklahoma City is an example of the situations in which these 
special leave banks may be established. Mr. Speaker, this bill provides 
for a humane and a just opportunity for our Federal employees to help 
one another.
  Title II of the bill, Mr. Speaker, is essentially the same as the 
Veterans Preference Employment Opportunity Act of 1996. This measure, 
H.R. 3586, is legislation that I introduced, and we passed the earlier 
version of this bill by voice vote in July. Title II creates an 
effective redress system for our veterans. It strengthens veterans 
protections in the case of a reduction in force, and it extends 
additional economic opportunities to our veterans. In addition, the 
bill extends veterans preference to certain jobs in the legislative 
branch, in the judicial branch, and at the White House.
  In our handling of this matter, we found that sometimes our veterans 
are the first fired and the last hired, and this bill moves to correct 
that situation.
  We have slightly modified the language of H.R. 3586 in an effort to 
respond to concerns raised by the American Postal Workers Union after 
we passed our original bill from the House. The APWU's concern is that 
the language of the original bill might have interfered with the 
operation of job bidding procedures in their collective-bargaining 
agreements. It was not our intention, Mr. Speaker, to interfere with 
the Postal Union collective bargaining agreements, and we hope that our 
changes have in fact clarified this matter.

  In addition, the Department of Defense has been given more time to 
comply with the rif provisions of the bill and another modification 
they requested.
  In title III, Mr. Speaker, our provisions make the Thrift Savings 
Plan even more attractive to our Federal employees. They establish two 
new investment funds for Federal employees, an international stock 
index fund and a small capitalization stock index fund. In addition, 
these provisions will make it easier for Federal employees to borrow 
their own money from the Thrift Savings Plan and provide for a onetime 
permanent withdrawal at age 59\1/2\ or when they experience a 
particular financial hardship.
  Title III also contains an improvement to the Thrift Savings Plan 
that was not in S. 1080. Under this bill, employees who come to work 
for the Government will be able to deposit the funds from their private 
401(k) plans into our Thrift Savings Plan. This is an additional 
rollover authority, which should make Government employment more 
attractive to many in the private sector.
  Finally, Mr. Speaker, title IV of this bill incorporates the 
provisions of S. 1488. That bill converts certain accepted service 
positions in the U.S. Fire Administration to competitive service 
positions. It also authorizes the Fire Administration to appoint new 
faculty members to competitive service positions.
  Mr. Speaker, I am pleased that we have had the cooperation of the 
gentleman from Virginia [Mr. Moran], the ranking member, and the 
gentlewoman from Maryland [Mrs. Morella] a leader on our Civil Service 
Subcommittee that I am so pleased to have the opportunity to chair. I 
also want to recognize the gentleman from Virginia [Mr. Davis] for his 
fine work and contributions, and also, not a member of the subcommittee 
or committee, but the gentleman from Virginia [Mr. Wolf] who is a 
strong advocate on behalf of our Federal employees and workers.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. FALEOMAVAEGA asked and was given permission to revise and extend 
his remarks.)
  Mr. FALEOMAVAEGA. Mr. Speaker, due to a conflict in scheduling and 
because of a prior commitment in his congressional district, the 
gentleman from Virginia [Mr. Moran] who is also the senior Democrat of 
the subcommittee, has requested that I assist him in managing this bill 
before the House. In doing so, Mr. Speaker, and on behalf of the 
gentleman from Virginia and Members from this side of the aisle, I am 
pleased to rise in support of Senate bill 868 and the managers' 
amendment offered by the gentleman from Florida [Mr. Mica]. Senate bill 
868 is a simple bill first proposed by the Office of Personnel 
Management after the tragic bombing in Oklahoma City.

                              {time}  2130

  It makes it easier for Federal employees to donate unused annual 
leave to their counterparts who have been adversely impacted by a 
disaster or national emergency. This bill passed the Senate unanimously 
last October and recently passed the Government Reform and Oversight 
Committee on voice vote.
  To this legislation, Mr. Mica is offering a manager's amendment that 
incorporates other important provisions. The first makes important 
reforms to the Thrift Savings Plan and enables employees to participate 
in the plan earlier and to invest their funds in two new plans. The 
Thrift Savings Plan is a very successful retirement plan that enables 
Federal employees to save for their retirement. The provisions in this 
legislation will also provide Federal employees the same flexibilities 
enjoyed by their private sector counterparts who participate in 401(k) 
plans. This provision also allows Federal employees to borrow against 
their accounts for any reason.
  The second provision is the Veterans Employment Opportunities and 
Improvement Act. This legislation has passed the House by voice vote 
and makes some positive reforms in the application of our veterans' 
preference

[[Page H11211]]

laws. By attaching this provision to S. 868, the majority expects that 
we will be able to engage the Senate in a conference on this 
legislation and break the current deadlock.
  Finally, the manager's amendment incorporates a provision that was 
introduced by Senator Sarbanes and passed the Senate by voice vote. 
This is more a technical provision and will help remedy a situation 
that affects only a limited number of employees. I support the effort 
to enact this correction.
  Again, I support this legislation and the manager's amendment. I hope 
it will have my colleagues support as well.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MICA. Mr. Speaker, I yield such time as she may consume to the 
gentlewoman from Maryland, [Mrs. Morella], who I am pleased to say is a 
very strong advocate on behalf of our Federal employees, someone who 
shares a caring and compassion for them, and one of the most productive 
members of the Subcommittee on Civil Service.
  Mrs. MORELLA. Mr. Speaker, I want to thank the gentleman who chairs 
our Subcommittee on Civil Service not only for the fine words but the 
leadership he has shown during this very challenging time for Federal 
employees and Federal agencies. I value that very much.
  Mr. Speaker, I rise in strong support of S. 868, legislation that 
will help our dedicated Federal employees in a variety of ways. Civil 
servants are facing hard times, and they are understandably 
apprehensive about the future.

  Although I would have liked to consider several pieces of legislation 
that I have introduced to help Federal employees meet the challenges of 
the changing workplace, this bill is a step in the right direction. I 
am proud to have drafted portions of this legislation to improve the 
lives of our Federal employees. Tomorrow, as part of civil service 
reform, we will consider additional proposals that I have drafted to 
help civil servants.
  S. 868 contains legislation I introduced, H.R. 2306, the Federal 
Thrift Savings Plan Enhancement Act. These provisions will bolster a 
critical component of Federal employees' retirement benefits--the 
Thrift Savings Plan--at no cost to taxpayers.
  The Thrift Savings Plan [TSP] is a retirement savings and investment 
plan for Federal and postal employees. It offers the same type of 
savings and tax benefits that many private corporations offer their 
employees under 401(k) plans. The TSP is critical for all Federal 
employees, but it is particularly important for those employees hired 
in the last decade who, under the Federal Employees Retirement System, 
receive smaller civil service benefits and need to invest more money to 
enhance their retirement income.
  Unlike many private plans, the TSP limits employees to three 
investment funds: the Government Securities Investment (G) Fund, the 
Common Stock Index Investment (C) Fund, and the Fixed Income Investment 
(F) Fund. Eighty two percent of the largest corporations now offer four 
or more investment options in their defined contribution plans, and 50 
percent offer five or more options. As the number of funds offered 
increases, small-cap and international funds are among the most popular 
additions. H.R. 2306 would give Federal workers two new investment 
options under the Thrift Savings Plan: a Small Capitalization Stock 
Index Investment Fund and International Stock Index Fund. These funds 
will provide Federal employees with a long-term investment strategy 
comparable to private pension plans. Adding two new options to Federal 
employees' retirement investment portfolios will potentially increase 
their investment earnings for retirement, and it will empower Federal 
workers to take a more active and personal responsibility for their 
retirement.

  This legislation will also permit Federal employees to begin to 
withdraw money from the TSP at age 59\1/2\, even if they continue to 
work and invest in the plan. The money withdrawn would be taxable, but 
it would not be subject to any early-retirement penalty. Under the 
current rules, an employee cannot withdraw money before retiring. The 
legislation also significantly improves borrowing provisions to allow 
employees to borrow money from their own accounts as long as they repay 
it.
  Federal employees face uncertainty caused by Federal downsizing and 
the recent Government shutdowns. Over 2 million Federal employees also 
worry about their retirement, and this legislation would bolster a 
critical component of their retirement benefits.
  Unfortunately, this legislation does not include a critical provision 
in my TSP bill--the provision to allow employees to invest up to the 
$9,500 IRS limit of their own to the TSP. Currently, FERS employees can 
put in up to 10 percent of their salary with a Government match of up 
to 5 percent, and CSRS employees can invest up to 5 percent of their 
salary. I will continue to pursue legislation to increase this amount 
to the IRS limit separately.
  This legislation also contains a provision important to firefighters 
in my district. When the Federal Emergency Management Agency was formed 
20 years ago, it placed a number of its employees with specific fire-
fighting expertise in the National Fire Academy under ``excepted'' 
service status. After the NFA has filled their vacancies, new hires 
were obtained through a competitive civil service hiring system. Today, 
91 of the NFA's 99 employees are under the general schedule and 8 
remain in excepted status. These eight employees are subject to 
significant limitations within the U.S. Fire Administration, and they 
are legally barred from competing for management positions. This 
provision would convert the eight remaining excepted service positions 
at the U.S. Fire Administration to competitive service status to remedy 
this unfair situation. The Office of Personnel Management supports this 
provision, and CBO has indicated that there would be no cost for this 
conversion.

  This bill also contains the veterans' preference provisions passed by 
the House in July. These provisions were developed pursuant to a 
hearing held in the Civil Service Subcommittee last April. We learned 
that simply giving veterans augmented scores and certain due process 
protections does not necessarily give them the rightful additional 
assistance in obtaining and retaining civilian employment with the 
Federal Government that they deserve.
  Testimony from veterans associations and from veterans such as John 
Fales, the author of the Sgt. Shaft column in the Washington Times, 
illustrated the need for this protection. Mr. Fales shared some of the 
hundreds of letters he has received that describe the challenges faced 
by veterans employed by the Federal Government.
  The Veterans Employment Opportunities Act of 1996 would strengthen, 
and, in the case of hiring, broaden the applicability of veterans' 
preference laws. H.R. 3586 would provide increased protection during 
reductions-in-force, establishes an enhanced redress system, and 
applies veterans' preference to nonpolitical positions at both the 
White House and in the legislative branch, as well to as many positions 
in the judicial branch. It also extends veterans' preference when Rif's 
occur in the Federal Aviation Administration, and it will allow 
veterans claiming they were denied preference to take their case to 
Federal court for the first time. I am sensitive to the differing 
circumstances of the postal service, and I will work to address their 
concerns in conference.
  In the event of a disaster or emergency, this legislation would allow 
Federal employees in any agency to donate their unused annual leave to 
Federal employees adversely affected. It is too bad that we have to 
pass legislation to allow Federal employees to help one another in such 
times of need, but I commend the many Federal employees who will put 
the needs of others before themselves and help those in need by 
donating their annual leave. This small change to the law is 
particularly important in the wake of such tragedies such as Oklahoma 
City, and I strongly urge its passage.
  Mr. Speaker, I strongly urge the passage of S. 868, and again I thank 
the gentleman for the time that he has given me to comment on what I 
think is an important bill. I also want to commend the ranking member 
of our subcommittee, the gentleman from Virginia [Mr. Moran].
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume to concur in the remarks

[[Page H11212]]

made earlier by the gentlewoman from Maryland. She certainly has been a 
great advocate of our work force in the civil service, and I am sure 
that because the legislation is not exactly a perfect one that, 
hopefully, in the next Congress, some of the sentiments and concerns 
she has expressed earlier will be taken seriously.
  Mr. Speaker, I also want to recognize the contributions of the 
members of the subcommittee, the gentleman from Pennsylvania [Mr. 
Holden], the gentleman from Vermont [Mr. Sanders], and the gentlewoman 
from Illinois [Mrs. Collins] absolutely the senior Democrat, the 
ranking member of the full committee, for the tremendous contributions 
that she has rendered for our government in all these years that she 
has served in this capacity as a member of the Committee on Government 
Reform and Oversight.
  Mr. Speaker, I yield back the balance of my time.
  Mr. MICA. Mr. Speaker, I yield such time as he may consume to the 
gentleman from New York [Mr. Solomon], who is one of the strongest 
advocates in the Congress on behalf of veterans and also has the honor 
and distinction of serving as chairman of our Committee on Rules.
  Mr. SOLOMON. Mr. Speaker, I want to thank the gentleman from Florida, 
John Mica. Quite often I mistake John and sometimes I call him Dan, and 
that is because 18 years ago Dan Mica, his brother, and I came to this 
Congress. His brother was a Democrat on the other side of the aisle but 
an outstanding Member of this body who served with me on the Committee 
on International Relations, as he did with the Speaker, at that time.
  Mr. Speaker, I wanted to stand up here for a moment just to praise 
John Mica, his subcommittee, and the members of this subcommittee, like 
the gentlewoman from Maryland, Connie Morella, and certainly my good 
friend, the gentleman from American Samoa, Mr. Faleomavaega, for the 
good job they always do.
  Quite often Federal employees come under undue criticism. Yet, the 
vast majority of them are good people, they are conscientious, they are 
polite, they are courteous, and they do their job. I just want to 
commend the gentleman for the job he is doing on this piece of 
legislation, because in the long run that is what it is meant to do. It 
is meant to help Federal employees to do their job.
  I want to concentrate briefly on the veterans preference benefits 
that are here. Mr. Mica has been very active in legislation along this 
line. The gentleman and I have worked together on many pieces of 
legislation just in the last 18 months dealing with it.
  One of the provisions, as Connie Morella was alluding to earlier, was 
the provision that for the first time establishes an effective user-
friendly redress system for veterans who believe their rights have been 
violated. This is very, very important. This will speed up that entire 
process so that they can have due process.
  Another provision removes artificial barriers that often bar service 
men and women from competing for Federal jobs. These individuals should 
be able to compete for jobs for which they qualify just like any other 
Federal employee.
  Thirdly, it extends veterans preference to certain jobs in this 
legislative branch, where the gentleman and I serve, in the judiciary 
branch, and in the White House as well.

                              {time}  2145

  Members might ask, why are veterans given these particular 
preferences? Whether you serve for 20 years in the military, whether 
you serve for 4 years or 2 years, let us just say you serve for 4 years 
and you were an 18-year-old when you went in the military, and at the 
same time your peer did not go in the military as he went on to 
college. And he graduates then from college 4 years before you do. He 
enters the job market 4 years before you do. All of that, that 4-year 
loss, when you are working at a substantially lesser benefit, when 
there are no benefits really in the military because you are not going 
to stay long enough to gain retirement benefits, that loss to you 
compared to your peer amounts to about $68,000 over a 4-year period.
  A young man or young woman entering the military, when he or she gets 
out, they are always going to be $68,000 poorer than the peer that did 
not have the opportunity to serve. So that is really what veterans 
preference is all about. It is a way of allowing them to catch up, 
which is why we have the peacetime GI bill. That is why this piece of 
legislation is so terribly important.
  I want to commend the gentleman from Florida, Mr. John Mica, for the 
good job that he and that the members of his committee have done. Let 
us get it passed. Let us get it sent to the President and get his 
signature on it.
  Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
  I would like to conclude my remarks on this legislation and just take 
a moment, as we finish our comments, to thank the gentleman from 
American Samoa for his assistance tonight in moving this legislation 
forward. Also to thank the ranking member of our subcommittee, the 
gentleman from Virginia [Mr. Moran] who is not able to be with us but 
who has provided great leadership on this and other civil service 
issues, and particularly the gentlewoman from Maryland [Mrs. Morella], 
as part of this legislation and, in fact, as part of her initiatives, 
continuing efforts on behalf of our civil servants whom she holds so 
dearly, both their service and their contribution to our Federal 
Government. I thank her. I thank the gentleman from Virginia [Mr. 
Davis] of our subcommittee and also, as I mentioned, the gentleman from 
Virginia [Mr. Wolf], who is not on the committee, who has contributed 
to this and other productive civil service legislation; also the 
gentleman from New York [Mr. Solomon] for his tremendous interest and 
efforts on behalf of our veterans. His service goes on and on in their 
behalf and on behalf of the Congress. The gentleman from Indiana [Mr. 
Buyer] who is not with us tonight but chairs one of the veterans 
subcommittees, also contributed greatly.

  Finally, Mr. Speaker, by combining title II with three Senate bills 
we are, in fact, giving the other body a very convenient way of 
addressing veterans preference in the few remaining legislative days 
that we have left in this session.
  Mr. Speaker, the bill before us today and tonight is, in fact, a good 
one. It authorizes emergency leave for our Federal employees. It 
strengthens our veterans preference. It improves the thrift savings 
plan and makes desirable modifications to the employment status of 
employees at the Fire Administration.
  This legislation tonight and bills that we hope to pass in tomorrow's 
session can go a long way toward making it a better Federal workplace 
and a better Federal work force.
  I urge my colleagues to vote for these measures and for this bill.
  Mr. FALEOMAVAEGA. Mr. Speaker, will the gentleman yield?
  Mr. MICA. I yield to the gentleman from American Samoa.
  Mr. FALEOMAVAEGA. Mr. Speaker, I would be remiss if I did not also 
express the gentleman from Virginia's sentiments in expressing to the 
gentleman from Florida, as chairman of the subcommittee, for the 
outstanding job that he has done and the spirit of bipartisanship that 
we were able to work out the differences in bringing us to the floor at 
this point in time. I want to note that for the Record to the gentleman 
from Florida for the tremendous job that he has done in bringing this 
legislation to fruition.
  Mr. MICA. Mr. Speaker, I thank the gentleman.
  Again, I urge passage of this and, finally, thank the staff on both 
sides of the aisle for their tremendous contributions.
  Mr. MORAN. Mr. Speaker, I am pleased to rise in support of S. 868 and 
the manager's amendment offered by Representative Mica.
  S. 868 is a simple bill first proposed by the Office of Personnel 
Management after the tragic bombing in Oklahoma City. It makes it 
easier for federal employees to donate unused annual leave to their 
counterparts who have been adversely impacted by a disaster or national 
emergency. This bill passed the Senate unanimously last October and 
recently passed the Government Reform and Oversight Committee on voice 
vote.
  To this legislation, Mr. Mica is offering a manager's amendment that 
incorporates other important provisions. The first makes important 
reforms to the Thrift Savings Plan and enables employees to participate 
in the plan earlier and to invest their funds in two new plans.

[[Page H11213]]

The Thrift Savings Plan is a very successful retirement plan that 
enables federal employees to save for their retirement. The provisions 
in this legislation will also provide federal employees the same 
flexibiliies enjoyed by their private sector counterparts who 
participate in 401(k) plans. This provision also allows federal 
employees to borrow against their accounts for any reason.
  The second provision is the Veterans Employment Opportunities and 
Improvement Act. This legislation has passed the House by voice vote 
and makes some positive reforms in the application of our Veterans' 
preference laws. By attaching this provision to S. 868, the majority 
expects that we will be able to engage the Senate in a conference on 
this legislation and break the current deadlock.
  Finally, the manager's amendment incorporates a provision that was 
introduced by Senator Sarbanes and passed the Senate by voice vote. 
This is more a technical provision and will help remedy a situation 
that affects only a limited number of employees. I support the effort 
to enact this correction.
  Again, I support this legislation and the manager's amendment. I hope 
it will have my colleagues' support as well.
  Mr. BUYER. Mr. Speaker, I want to congratulate and thank Chairman 
Mica and his subcommittee for their magnificent efforts on this very 
important piece of legislation and for their dogged determination to 
shepherd this bill through the legislative process.
  I had the honor of testifying before Mr. Mica's subcommittee, and I 
am doubly pleased that some of the points I brought out during the 
hearing are in the bill. I wish to stress that the most important 
provision--that of an administrative and judicial method for veterans 
to pursue their employment claims--is not an expansion of veterans 
preference, but a necessary provision to ensure just protection of 
their rights as veterans.
  And to those who feel that veterans don't need the protections being 
provided to them in this bill, let me just quote an internal memo from 
Postmaster General Marvin Runyon to his Board of Governors. Mr. Runyon 
states that veterans preference will, ``have a detrimental impact on 
the Postal Service,'' it would ``tie our hands,'' and it would, ``be 
costly and make our personnel decisions more difficult and onerous.'' 
Finally, recognizing the average American's support for veterans he 
says, ``this is a difficult issue to oppose publicly, especially in an 
election year.''
  The Postmaster almost got it right, but I would offer this. I would 
say that it is an issue that should never be opposed--election year or 
not--because veterans preference must remain the cornerstone of federal 
employment, simply because it is the right thing to do.
  Veterans preference knows neither color nor gender, nor ethnic 
origin, whether the veteran is a Christian, Jew, Muslim or atheist. It 
is based on what is becoming a novel idea in this country--a 
willingness to sacrifice one's life for the good of the nation. I 
challenge anyone to point out a more appropriate group of citizens to 
receive some small advantage in securing and maintaining federal 
employment.
  This bill will do much to reverse what I call a growing anti-veteran 
culture among bureaucrats. There is no doubt that women and minorities 
have suffered employment discrimination in both the federal and private 
sector. But let me stress that our military forces have been in the 
forefront of promoting women and minorities among the ranks, and it is 
time for federal hiring managers to put veterans first.
  I am also pleased that S. 868 will apply veterans preference to non-
political employees of the Congress, the White House, and the Judiciary 
Branch. The only thing special here is the nation's commitment to a 
very special class of person--veterans. The approach taken in the bill 
to these principles is reasonable and is not unduly restrictive.
  Mr. Chairman, let me close by noting that a little over 50 years ago, 
we were just winding up the bloody Pacific Campaign. A few years later, 
our forces were fighting and dying to maintain democracy's foothold on 
the Korean Peninsula. Slightly less than 30 years ago, our forces 
distinguished themselves in turning back the Tet Offensive. And just 
five years ago, the men and women of this nation struck like lightning 
against Saddam Hussein. In less than 60 years those wearing the 
nation's uniform have earned this small benefit at the cost of nearly 
520,000 deaths. This is a benefit that costs the government nothing 
while honoring what is truly national service.
  I strongly urge my colleagues to join all the major veterans service 
organizations in their support of this bill and to vote in favor of S. 
868.
  Mr. MICA. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Wicker). The question is on the motion 
offered by the gentleman from Florida, [Mr. Mica] that the House 
suspend the rules and pass the Senate bill, S. 868, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill, as amended, was 
passed.
  A motion to reconsider was laid on the table.

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