[Congressional Record Volume 142, Number 136 (Friday, September 27, 1996)]
[House]
[Pages H11547-H11565]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OMNIBUS CIVIL SERVICE REFORM ACT OF 1996
Mr. MICA. Mr. Speaker, I ask unanimous consent for the immediate
consideration of the bill (H.R. 3841), to amend the civil service laws
of the United States, and for other purposes.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
Mr. MORAN. Reserving the right to object, Mr. Speaker, I yield to the
gentleman from Florida [Mr. Mica], the subcommittee chairman, to
explain the changes in the bill.
Mr. MICA. Mr. Speaker, yesterday the House voted on this legislation.
Although a majority of the House voted for the bill, we fell short of
the two-thirds required to suspend the rules and pass this legislation.
Unfortunately the controversy centered on section 201 of that
legislation and that version which we have deleted in this amendment.
Under that section, the current rules on reduction in force would have
been changed to give greater weight to job performance in determining
which employees are retained. It would have been easier for the
agencies, in fact, to keep their best employees when they downsize.
Taxpayers and talented, conscientious Federal employees, I believe,
would have benefited from this change. However, yesterday, Mr. Speaker,
on this floor we did not get the two-thirds necessary to pass that
provision.
Mr. Speaker, yesterday on the floor, the distinguished gentlewoman
from Maryland [Mrs. Morella], the distinguished gentleman from Virginia
[Mr. Moran], the gentleman from Virginia [Mr. Wolf], and the gentleman
from Virginia [Mr. Davis] all spoke eloquently of the benefits to
Federal employees contained in this legislation. They explained how its
provisions, many of which they authored, would have softened the impact
of Federal Government downsizing. I thank them for their support
yesterday and for their honest efforts on behalf of our hardworking
Federal employees.
Mr. Speaker, I have discussed this matter with these distinguished
Members and others, and I know how hard they all work to provide these
important protections to our Federal employees who are, in fact, caught
up in downsizing. I am not willing to allow any special interests to
frustrate their work or to prevent this House from providing those
protections to all Federal employees on a bipartisan basis. That is why
I brought this version of the bill forward to the floor today, and I
hope that again in this fashion that we can pass this in unanimous
consent. I thank the gentleman from Virginia [Mr. Moran], the ranking
member of our subcommittee, for his leadership, and others.
Mr. MORAN. Mr. Speaker, further reserving the right to object, I want
to thank the gentleman from Florida [Mr. Mica] for explaining the
change that he has made from the bill that we brought up yesterday and
that failed to get the two-thirds majority necessary.
I also particularly want to thank them for bringing the bill back
today without that controversial provision which prevented us from
being able to move it on to the Senate yesterday.
We have an opportunity today to enact legislation that will have a
very positive impact upon the lives of our Nation's civil servants. As
I said yesterday, this legislation is the culmination of the work of
the Subcommittee on Civil Service over the past 6 months. It contains
important provisions that provide needed benefits for Federal
Employees. For example, the bill contains provisions, originally
offered by the administration, that improve the agencies' management
flexibility through a demonstration projects program and individual
agencies can choose to participate in and determine what types of
flexibilities enhance program performance.
The bill provides a number of provisions designed to help employees
undergoing reductions in force. These provisions allow an employee to
continue to participate in the government life insurance programs
provided that they pay both the employer and employee contribution. It
would allow an employee who loses their job due to a reduction in force
to continue to participate in the Federal employee health benefits
program for 18 months with the Federal share being paid. It also
establishes a priority placement program in education assistance grants
to help displaced Federal employees improve their competitiveness in
the job market through greater education.
The provision with which a majority of Democrats disagree has been
deleted from this draft. With section 201 removed, this legislation is
supported by the gentlewoman from Illinois [Mrs. Collins], the ranking
member; by the gentlewoman from Florida [Mrs. Meek] and all the Federal
employee unions. That should get the Democratic support that we were
looking for, and I hope we can quickly pass this legislation and send
it over to the Senate for their immediate consideration.
Further reserving the right to object, Mr. Speaker, I yield to the
gentlewoman from Maryland [Mrs. Morella].
Mrs. MORELLA. Mr. Speaker, we are back today to reconsider a bill to
improve our Civil Service system and help Federal employees cope with
downsizing. This is the same bill that we considered yesterday, except
without section 201, a controversial provision to enhance performance
management. This provision should have been
[[Page H11548]]
removed in the first place, but I appreciate the willingness of Civil
Service Subcommittee Chairman Mica to take it out today. While I
certainly believe that we should promote people based on merit and
reward outstanding performers through enhanced performance management,
we did not have time to work out a fair compromise to section 201. For
that reason, it should not have been in the bill yesterday.
Throughout this Congress, I have pursued a legislative strategy to
help Federal employees and agencies cope with downsizing. We have the
responsibility to help our dedicated civil servants through this
difficult time, and although I think we should go much further, this
bill is a good start.
It provides important retraining provisions to equip Federal
employees for private sector jobs, and it includes a soft-landings
package to ease the pain of downsizing for Federal employees. When a
long-time Federal employee faces a reduction-in-force, he or she needs
help. Under this bill, separated Federal employees would be able to
continue their health and life insurance benefits, receive job training
and counseling geared toward the private sector, and receive money to
return to school. Mr. Speaker, this is the least we can do.
I want to thank the other Members who have contributed so much to
this legislation; Jim Moran, Tom Davis, and Frank Wolf, and I strongly
urge its passage today.
{time} 1815
Mr. MORAN. Mr. Speaker, further reserving the right to object, I
yield to the gentlewoman from Illinois, Mrs. Cardiss Collins, the
ranking Democratic member of the committee, to give what may be her
last speech before this body. It is fitting that it be on behalf of
public servants.
Mrs. COLLINS of Illinois. Mr. Speaker, I certainly appreciate the
hard work that has gone into creating this Omnibus Civil Service Reform
Act. I want to thank the gentleman from Florida [Mr. Mica] for his
willingness to help us get rid of section 201, which was very
controversial, even though I know he wanted so badly to keep it in
there. But he at least heard what we had to say. We talked with him on
the floor, we talked with him on the telephone, we talked with him even
in the picture-taking today. He assured me that he was going to work
very hard at this.
I want to also thank the ranking member of the Subcommittee on Civil
Service, Mr. Moran, for the hard work that he has done. Since yesterday
we have all been almost constantly in touch with each other. This is a
fine piece of legislation. There are very good things here for civil
service workers. I in the State of Illinois have a large number of
civil service workers, as do all of us here.
I think this is a great piece of legislation. I commend everyone who
worked on it, including all the staff members in our committees as well
as other committees who have worked on this. I thank the gentleman very
much for this wonderful legislation.
Ms. KAPTUR. Mr. Speaker, will the gentleman yield?
Mr. MORAN. Further reserving the right to object, I yield to the
gentlewoman from Ohio.
Ms. KAPTUR. Mr. Speaker, I appreciate the gentleman yielding, albeit
very briefly. I did want to follow up on one of the gentleman's
comments regarding the gentlewoman from Illinois [Mrs. Collins] and her
long service here in this institution and the tremendous contributions
that she has made, not just on this legislation, but on important areas
of airline safety, of sports equity, workers' rights, and humanitarian
causes that have benefited people in our country and across the globe.
As the gentlewoman finishes her service here in the Congress, it is
important for the record and for the history books to note that she is
the longest serving woman of African-American descent to have served in
this body, and done so in such a distinguished manner for so many
years. I wanted to call our colleagues' special attention to her and to
thank her on behalf of the people of this institution and our country.
I thank you, Mrs. Collins. It has been an honor to serve with you.
Mrs. COLLINS of Illinois. Mr. Speaker, if the gentleman will continue
to yield further, I must say how wonderful it has been to serve in this
body since June 7, 1973. I have met so many wonderful people, all of
you, in fact; and those here before, many of us got to know so very,
very well. It has been a great experience.
I could not have done a better thing than to have the opportunity and
the honor of serving the people of the 7th Congressional District of
Illinois, and knowing all of you. Thank you very much.
Mr. MORAN. Mr. Speaker, further reserving the right to object, we
certainly thank the ranking member, the distinguished gentlewoman from
Illinois, for so many reasons, and for so much contribution to the work
of this body. We thank the gentlewoman from Ohio [Ms. Kaptur] for her
very appropriate remarks.
Mr. Speaker, I yield to the gentlewoman from Florida [Mrs. Meek] who
presented such a spirited attack on section 201 yesterday.
Mrs. MEEK of Florida. Mr. Speaker, I thank the gentleman for yielding
to me. I am very pleased to say thank you to the ranking member of the
subcommittee, and to say to the chairman of the subcommittee, I know am
very pleased at the kind of negotiations that we were able to put
together, that we could work together in a consensus type fashion and
come up with a bill which all of us can support. I certainly support
this bill as it is presently constituted. I think what we have here is
perhaps a fairer approach to the reduction in force process.
Mr. Speaker, I want to compliment the committee for the soft landing
kinds of initiatives which they have in the bill, and the many other
strong things that will help Federal workers, particularly when we are
reducing in force. Certainly we want to pay tribute to the many Federal
workers to whom this may apply. We want everyone to be treated fairly,
and that is what this Congress wants to do. I do not feel any pull for
any special interest in this, but more or less the interests of the
people involved. That has been my major interest all along, in all of
my career work in public life.
Mr. Speaker, I want to say again, by removing this I give my full
support, and I know that the 11,000 Federal workers in my district and
the almost 2 million throughout the country will be grateful. I thank
the gentleman very much.
Mr. MORAN. Mr. Speaker, we thank the gentlewoman from Florida.
Further reserving the right to object, Mr. Speaker, I yield to the
distinguished gentleman from Maryland [Mr. Hoyer]. I want to thank him
in advance of when this gets through for using his considerable
influence in getting it through the Senate side, after this gets
through the House.
Mr. HOYER. Mr. Speaker, I want to thank the gentleman for his
comments. I appreciate his continuing efforts. Mr. Speaker, I will use
whatever little influence I might have to do just that.
I want to congratulate the gentleman from Florida [Mr. Mica], and the
gentleman from Virginia [Mr. Davis]. The legislative process is a
process in which we try to come together and reach agreement.
Yesterday, there were some who disagreed with section 201 and there
were some who agreed with section 201. I want to say, as I said
yesterday, I think there is merit in the premise underlying 201, and
will look forward to working together with both gentlemen to come up
with a provision which does in fact say that we are not going to close
our eyes and slavishly follow last in-first out. That is not a rational
system. Both gentlemen were speaking to that. I understand that. I made
the point that I thought the disparities were greater than perhaps, or
the benefits of the outstanding performance, were greater than were
appropriate.
However, having said that, Mr. Speaker, this is in the best
traditions of the legislative process, because all of us, I think to a
person, I will be surprised if either this comes to a vote or there is
any vote against it, because in point of fact, it was a consensus that
the provisions in this bill were important provisions for us to extend
to Federal employees, particularly at this time, where we are going to
probably have involuntarily removed employees and where the soft
landing and the other provisions provided in this bill are going to be
important to them.
[[Page H11549]]
While I disagreed with that particular provision, Mr. Speaker, I made
it clear I agreed with the overwhelming majority of the work product of
the committee. I congratulate them for bringing it back. I think this
is in the best traditions of bipartisan legislative process, and I look
forward to having this legislation passed.
Yes, I would tell the gentleman from Virginia, I will work, starting
tonight, to try to make that happen.
Mr. MORAN. Mr. Speaker, continuing to reserve my right to object, I
thank the distinguished gentleman from Maryland, and I thank him for
recognizing the merits of section 201, too. I do think that at some
point we have to figure out an appropriate way to recognize a person's
performance as an important criteria is determining who should get
riffed in periods of downsizing. I do not believe that pure seniority
should be the only governing factor in determining who gets riffed. The
fact is that everyone is not equal. Everyone does not produce equal
levels of effort. There ought to be some way to sufficiently recognize
people's contribution to the performance of a program and their
dedication to its mission.
Having said that, we have a bill that is of substantial benefit to
Federal employees, particularly those who would be adversely affected
by RIF's, by downsizing of the Federal Government, which we know is
inevitable, and will inevitably continue for the next several years.
This provides important soft landing features, and enables them to
get preference in being hired for other functions within the agencies,
and extends their health and life insurance, gives them some
educational assistance. It is the right thing to do. I urge all my
colleagues to support it.
Mr. MICA. Mr. Speaker, will the gentleman yield?
Mr. MORAN. I yield to the gentleman from Florida.
Mr. MICA. Mr. Speaker, before the gentleman withdraws his objections,
I just want to take one moment and recognize the chairman, the
gentleman from Pennsylvania [Mr. Clinger], and our ranking member, the
gentlewoman from Illinois [Mrs. Collins], both of whom are retiring and
have done yeoman's service.
Chairing this subcommittee has been like a ride at Disney World; it
has had it ups and downs. I want to also thank the staff. They had 54
staffers that handled civil service issues. We have done it with seven.
We have held a record number of hearings.
To the gentleman from Virginia [Mr. Moran] to serve alongside him has
been an honor and privilege to me, for us working together. Sometimes
people see the conflict of this place and the heated discussion, and
heaven knows, I have added to some of that. But I think today, when we
have finished our last committee meeting the gentlewoman from Maryland
[Mrs. Morella] came over and kissed and hugged the gentlewoman from
Illinois [Mrs. Collins] and they both said how much they were going to
miss each other, people do not see that or appreciate the relationship
and camaraderie that goes on here and blossoms here.
I thank the gentleman, and I thank him for also lifting his
objections to this.
Mr. DAVIS. Mr. Speaker, will the gentleman yield?
Mr. MORAN. Further reserving the right to object. I yield to the
gentleman from Virginia.
Mr. DAVIS. Mr. Speaker, I thank the gentleman for yielding to me.
I am glad we are here where we are today, Mr. Speaker. Section 201,
despite its controversy, is out of the bill now. We can accomplish some
of the things that I think everybody agrees need to happen for Federal
employees as we experience this downsizing over the next few years, the
fact that some parts of the life insurance, health insurance payably by
the Federal Government, will be continued during those downsizing
times. There will be some job preference for Federal employees and
future openings at the Federal level, training. These are things that
need to be done.
We have to be sensitive. Federal workers have undergone some very,
very difficult times in the last few years, and I think this is one
measure which will be some good news at a time that has otherwise sent
the wrong message, if we are to try to continue to bring the best and
brightest to Washington to work in the Civil Service.
We still have a great Civil Service. I think this is bringing some
appropriate recognition to them, and some tangible results as we go
through some difficult times in the years ahead.
I want to thank the chairman, the gentleman from Florida, Mr. Mica,
the ranking member and my friend, the gentleman from northern Virginia,
Jim Moran, the gentleman from Virginia, Frank Wolf, who helped
introduce some of these soft landing provisions, the gentlewoman from
Maryland, Mrs. Morella, and the gentlewoman from the District of
Columbia, Ms. Norton, and others who have worked so hard.
I thank the gentlewoman from Illinois, Mrs. Collins, her for efforts
in bringing this forward after yesterday's defeat under suspension. I
think we are about at the time where we can move it through this body,
send it to the other body, and I hope we can get a favorable result in
the waning hours of this Congress. I thank the gentleman for yielding.
Mr. MORAN. Mr. Speaker, I withdraw my reservation of objection.
The SPEAKER pro tempore (Mr. Thornberry). Is there objection to the
request of the gentleman from Florida?
There was no objection.
The Clerk read the bill, as follows:
H.R. 3841
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 ``Omnibus
Civil Service Reform Act of 1996''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--DEMONSTRATION PROJECTS
Sec. 101. Demonstration projects.
TITLE II--SIMPLIFYING APPEALS
Sec. 201. Elimination of mixed-case procedures.
Sec. 202. Appeal to Merit Systems Protection Board as exclusive
administrative remedy.
Sec. 203. Agency flexibility and encouraging the use of alternative
dispute resolution techniques.
Sec. 204. Effective date.
TITLE III--PERFORMANCE MANAGEMENT ENHANCEMENT
Sec. 301. Increased weight given to performance for order-of-retention
purposes in a reduction in force.
Sec. 302. No appeal of denial of periodic step-increases.
Sec. 303. Performance appraisals.
Sec. 304. Amendments to incentive awards authority.
Sec. 305. Due process rights of managers under negotiated grievance
procedures.
Sec. 306. Collection and reporting of training information.
TITLE IV--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER BENEFITS
Subtitle A--Additional Investment Funds for the Thrift Savings Plan
Sec. 401. Short title.
Sec. 402. Additional investment funds for the Thrift Savings Plan.
Sec. 403. Acknowledgement of investment risk.
Sec. 404. Effective date.
Subtitle B--Thrift Savings Account Liquidity
Sec. 411. Short title.
Sec. 412. Notice to spouses for in-service withdrawals; de minimus
accounts; Civil Service Retirement System participants.
Sec. 413. In-service withdrawals; withdrawal elections, Federal
Employees Retirement System participants.
Sec. 414. Survivor annuities for former spouses; notice to Federal
Employees Retirement System spouses for in-service
withdrawals.
Sec. 415. De minimus accounts relating to the judiciary.
Sec. 416. Definition of basic pay.
Sec. 417. Eligible rollover distributions.
Sec. 418. Effective date.
Subtitle C--Other Provisions Relating to the Thrift Savings Plan
Sec. 421. Percentage limitations on contributions.
Sec. 422. Loans under the Thrift Savings Plan for furloughed employees.
Sec. 423. Immediate participation in the Thrift Savings Plan.
Subtitle D--Resumption of Certain Survivor Annuities That Terminated by
Reason of Marriage
Sec. 431. Resumption of certain survivor annuities that terminated by
reason of marriage.
Subtitle E--Life Insurance Benefits
Sec. 441. Domestic relations orders.
Sec. 442. Exception from provisions requiring reduction in additional
optional life insurance.
[[Page H11550]]
Sec. 443. Temporary continuation of Federal employees' life insurance.
TITLE V--REORGANIZATION FLEXIBILITY
Sec. 501. Voluntary reductions in force.
Sec. 502. Nonreimbursable details to Federal agencies before a
reduction in force.
TITLE VI--SOFT-LANDING PROVISIONS
Sec. 601. Continued eligibility for life insurance.
Sec. 602. Continued eligibility for health insurance.
Sec. 603. Priority placement programs for Federal employees affected by
a reduction in force.
Sec. 604. Job placement and counseling services.
Sec. 605. Education and retraining incentives.
TITLE VII--MISCELLANEOUS
Sec. 701. Reimbursements relating to professional liability insurance.
Sec. 702. Employment rights following conversion to contract.
Sec. 703. Debarment of health care providers found to have engaged in
fraudulent practices.
Sec. 704. Extension of certain procedural and appeal rights to certain
personnel of the Federal Bureau of Investigation.
Sec. 705. Conversion of certain excepted service positions in the
United States Fire Administration to competitive service
positions.
Sec. 706. Eligibility for certain survivor annuity benefits.
TITLE I--DEMONSTRATION PROJECTS
SEC. 101. DEMONSTRATION PROJECTS.
(a) Definitions.--Paragraph (1) of section 4701(a) of title
5, United States Code, is amended by striking subparagraph
(A) and by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(b) Pre-Implementation Procedures.--Subsection (b) of
section 4703 of title 5, United States Code, is amended to
read as follows:
``(b) Before an agency or the Office may conduct or enter
into any agreement or contract to conduct a demonstration
project, the Office--
``(1) shall develop or approve a plan for such project
which identifies--
``(A) the purposes of the project;
``(B) the methodology;
``(C) the duration; and
``(D) the methodology and criteria for evaluation;
``(2) shall publish the plan in the Federal Register;
``(3) may solicit comments from the public and interested
parties in such manner as the Office considers appropriate;
``(4) shall obtain approval from each agency involved of
the final version of the plan; and
``(5) shall provide notification of the proposed project,
at least 30 days in advance of the date any project proposed
under this section is to take effect--
``(A) to employees who are likely to be affected by the
project; and
``(B) to each House of the Congress.''.
(c) Nonwaivable Provisions.--Section 4703(c) of title 5,
United States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) any provision of subchapter V of chapter 63 or
subpart G of this title;''; and
(2) by striking paragraph (3) and inserting the following:
``(3) any provision of chapter 15 or subchapter II or III
of chapter 73 of this title;''.
(d) Limitations.--Subsection (d) of section 4703 of title
5, United States Code, is amended to read as follows:
``(d)(1) Each demonstration project shall terminate before
the end of the 5-year period beginning on the date on which
the project takes effect, except that the project may
continue for a maximum of 2 years beyond the date to the
extent necessary to validate the results of the project.
``(2)(A) Not more than 15 active demonstration projects may
be in effect at any time, and of the projects in effect at
any time, not more than 5 may involve 5,000 or more
individuals each.
``(B) Individuals in a control group necessary to validate
the results of a project shall not, for purposes of any
determination under subparagraph (A), be considered to be
involved in such project.''.
(e) Condition Relating to Bargaining Agreements.--Paragraph
(1) of section 4703(f) of title 5, United States Code, is
amended by striking ``(as defined in section 7103(8) of this
title)'' and inserting ``(as defined in section 7103(8),
excluding any agreements entered into or renewed after the
date of the enactment of the Omnibus Civil Service Reform Act
of 1996)''.
(f) Evaluations.--Subsection (h) of section 4703 of title
5, United States Code, is amended by adding at the end the
following: ``The Office may, with respect to a demonstration
project conducted by another agency, require that the
preceding sentence be carried out by such other agency.''.
(g) Provisions for Termination of Project or Making It
Permanent.--Section 4703 of title 5, United States Code, is
amended--
(1) in subsection (i) by inserting ``by the Office'' after
``undertaken''; and
(2) by adding at the end the following:
``(j)(1) If the Office determines that termination of a
demonstration project (whether under subsection (e) or
otherwise) would result in the inequitable treatment of
employees who participated in the project, the Office shall
take such corrective action as is within its authority. If
the Office determines that legislation is necessary to
correct an inequity, it shall submit an appropriate
legislative proposal to both Houses of Congress.
``(2) If the Office determines that a demonstration project
should be made permanent, it shall submit an appropriate
legislative proposal to both Houses of Congress.''.
TITLE II--SIMPLIFYING APPEALS
SEC. 201. ELIMINATION OF MIXED-CASE PROCEDURES.
(a) In General.--Section 7702, paragraph (2) of section
7703(b), and the last sentence of section 7121(d) of title 5,
United States Code, are repealed.
(b) Technical and Conforming Amendments.--(1) The item
relating to section 7702 in the table of sections at the
beginning of chapter 77 of title 5, United States Code, is
repealed.
(2) Section 7701(e)(1) of title 5, United States Code, is
amended--
(A) by striking ``(e)(1) Except as provided in section 7702
of this title, any'' and inserting ``(e) Any'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(C) by striking ``subparagraph (A) of this paragraph.'' and
inserting ``paragraph (1).''.
(3) Section 753(e)(1) of title 31, United States Code, is
amended by striking ``sections 7701 and 7702'' and inserting
``section 7701''.
(4) Section 7703(c) of title 5, United States Code, is
amended by striking the semicolon at the end of paragraph (3)
and all that follows through ``court.'' and inserting a
period.
SEC. 202. APPEAL TO MERIT SYSTEMS PROTECTION BOARD AS
EXCLUSIVE ADMINISTRATIVE REMEDY.
(a) In General.--Section 7701(b)(1) of title 5, United
States Code, is amended by striking ``(b)(1)'' and inserting
``(b)(1)(A)'' and by adding at the end the following:
``(B) Notwithstanding any other provision of law, rule, or
regulation, an appeal under this section shall be the
exclusive administrative remedy for any action by an employee
or applicant who--
``(i) has been affected by an action which the employee or
applicant may appeal to the Merit Systems Protection Board;
and
``(ii) alleges that a basis for the action was
discrimination prohibited by--
``(I) section 717 of the Civil Rights Act of 1964;
``(II) section 6(d) of the Fair Labor Standards Act of
1938;
``(III) section 501 of the Rehabilitation Act of 1973;
``(IV) sections 12 and 15 of the Age Discrimination in
Employment Act of 1967; or
``(V) any rule, regulation, or policy directive prescribed
under any provision of law described in subclauses (I)
through (IV).
``(C) In lieu of filing an appeal under this section, an
employee or applicant described in paragraph (B) may file a
civil action under--
``(i) section 717(c) of the Civil Rights Act of 1964 or
section 15(c) of the Age Discrimination in Employment Act of
1967, as applicable, within 90 days after receipt of notice
of final action taken by the agency on a complaint of
discrimination under a provision of law described in
subclause (I), (III), or (IV) of subparagraph (B)(ii) or any
rule, regulation, or policy directive prescribed under any
such provision of law; or
``(ii) section 16(b) of the Fair Labor Standards Act of
1938 within 2 years (or, if the violation is willful, within
3 years) after the date of an alleged violation of section
6(d) of the Fair Labor Standards Act of 1938 or any rule,
regulation, or policy directive prescribed thereunder.''.
(b) Petition for Board Review.--(1) Section 7701(e)(1)(A)
of title 5, United States Code, is amended by striking ``a
party to the appeal or the Director'' and inserting ``a party
to the appeal, the Director, or the Equal Employment
Opportunity Commission''.
(2) Subsection (e) of section 7701 of title 5, United
States Code, is amended by adding at the end the following:
``(3) The Equal Employment Opportunity Commission may
petition the Board for review under paragraph (1) only if the
Commission is of the opinion that the decision is erroneous
and will have a substantial impact on any equal employment
opportunity law, rule, or regulation under the jurisdiction
of the Commission.''.
(3) Subsection (d) of section 7703 of title 5, United
States Code, is amended to read as follows:
``(d)(1) The Director of the Office of Personnel Management
may obtain review of any final order or decision of the Board
by filing a petition for judicial review in the United States
Court of Appeals for the Federal Circuit if the Director
determines, in his discretion, that the Board erred in
interpreting a civil service law, rule, or regulation
affecting personnel management and that the Board's
decision will have a substantial impact on a civil service
law, rule, regulation, or policy directive.
``(2) The Equal Employment Opportunity Commission may
obtain review of any final order or decision of the Board by
filing a petition for judicial review in the United States
Court of Appeals for the Federal Circuit if the Commission
determines, in its discretion, that the Board erred in
interpreting
[[Page H11551]]
an equal employment opportunity law and that the Board's
decision will have a substantial impact on an equal
employment opportunity law, rule, regulation, or policy
directive.
``(3) If the Director or the Commission did not intervene
in a matter before the Board, the Director or the Commission
may not petition for review of a Board decision under this
section unless the Director or the Commission first petitions
the Board for reconsideration of its decision, and such
petition is denied.
``(4) In addition to the named respondent, the Board and
all other parties to the proceedings before the Board shall
have the right to appear in the proceeding before the Court
of Appeals. The granting of the petition for review shall be
at the discretion of the Court of Appeals, except that it may
not deny a petition for review solely because it disagrees
with the determination of the Director or the Commission that
the Board's decision will have a substantial impact on a law,
rule, regulation, or policy directive within their
jurisdiction. The Court of Appeals shall require payment by
the Director or the Commission, as appropriate, of reasonable
attorney fees incurred by the other parties if, after
rendering a decision on the merits of the petition, the court
determines that the Board's decision would not have had a
substantial impact on a law, rule, regulation, or policy
directive within their jurisdiction.''.
SEC. 203. AGENCY FLEXIBILITY AND ENCOURAGING THE USE OF
ALTERNATIVE DISPUTE RESOLUTION TECHNIQUES.
(a) In General.--Chapter 77 of title 5, United States Code,
is amended by adding at the end the following:
``Sec. 7704. Alternative dispute resolution techniques
``Notwithstanding any other provision of law, each agency
(including the United States Postal Service, the Postal Rate
Commission, and the Tennessee Valley Authority) shall have
the authority to develop an internal procedure under which
its employees may file with the agency a complaint of
discrimination by the agency under the laws described in
subclauses (I) through (V) of section 7701(b)(1)(B)(ii), or
any other matter appealable to the Merit Systems Protection
Board or the Federal Labor Relations Authority. Agencies are
encouraged to use alternative dispute resolution techniques
in order to resolve such complaints. An agency may require
its employees to exhaust such internal procedure for a period
not to exceed 90 days before seeking external administrative
or judicial review under this chapter. To the extent that a
private entity may do so, an agency may require employees to
submit to alternative dispute resolution techniques in lieu
of other administrative or judicial review.''.
(b) Task Force.--In order to encourage the use of
alternative dispute resolution techniques in resolving
personnel-related disputes within the Federal Government, the
Chairman of the Merit Systems Protection Board shall, in
consultation with the Chairman of the Equal Employment
Opportunity Commission, the Chairman of the Federal Labor
Relations Authority, the Director of the Office of Personnel
Management, the Special Counsel, and the Director of the
Federal Mediation and Conciliation Service, organize and
chair a task force--
(1) to study and evaluate the use of alternative dispute
resolution techniques in resolving Federal personnel
disputes;
(2) to facilitate the exchange of information between
agencies;
(3) to examine and evaluate alternative dispute resolution
techniques used in the private sector for possible
application to Federal personnel disputes; and
(4) to issue a report to Congress no later than 18 months
after the date of enactment of this Act on the use of
alternative dispute resolution techniques in personnel
disputes by Federal agencies, including Federal adjudicatory
agencies.
The Merit Systems Protection Board shall provide
administrative support to the task force.
SEC. 204. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this
section, this title and the amendments made by this title
shall take effect 6 months after the date of the enactment of
this Act.
(b) Task Force.--Subsection (b) of section 203 shall take
effect on the date of the enactment of this Act.
(c) Savings Provision.--Matters or proceedings pending as
of, and continuing after, the effective date of this title
shall continue as if this title had not been enacted.
TITLE III--PERFORMANCE MANAGEMENT ENHANCEMENT
SEC. 301. INCREASED WEIGHT GIVEN TO PERFORMANCE FOR ORDER-OF-
RETENTION PURPOSES IN A REDUCTION IN FORCE.
(a) In General.--Section 3502 of title 5, United States
Code, is amended--
(1) in subsection (a)(4) by striking ``ratings.'' and
inserting ``ratings, in conformance with the requirements of
subsection (g).''; and
(2) by adding at the end the following:
``(g)(1) The regulations prescribed to carry out subsection
(a)(4) shall be the regulations in effect, as of January 1,
1996, under section 351.504 of title 5 of the Code of Federal
Regulations, except as otherwise provided in this subsection.
``(2) For purposes of this subsection--
``(A) subsections (b)(4) and (e) of such section 351.504
shall be disregarded;
``(B) subsection (d) of such section 351.504 shall be
considered to read as follows:
`` `(d)(1) The additional service credit an employee
receives for performance under this subpart shall be
expressed in additional years of service and shall consist of
the sum of the employee's 3 most recent (actual and/or
assumed) annual performance ratings received during the 4-
year period prior to the date of issuance of reduction-in-
force notices or the 4-year period prior to the agency-
established cutoff date (as appropriate), computed in
accordance with paragraph (2) or (3) (as appropriate).
`` `(2) Except as provided in paragraph (3), an employee
shall receive--
`` `(A) 5 additional years of service for each performance
rating of fully successful (Level 3) or equivalent;
`` `(B) 7 additional years of service for each performance
rating of exceeds fully successful (Level 4) or equivalent;
and
`` `(C) 10 additional years of service for each performance
rating of outstanding (Level 5) or equivalent.
`` `(3)(A) If the employing agency uses a rating system
having only 1 rating to denote performance which is fully
successful or better, then an employee under such system
shall receive 5 additional years of service for each such
rating.
`` `(B) If the employing agency uses a rating system having
only 2 ratings to denote performance which is fully
successful or better, then an employee under such system
shall receive--
`` `(i) 5 additional years of service for each performance
rating at the lower of those 2 ratings; and
`` `(ii) 7 additional years of service for each performance
rating at the higher of those 2 ratings.
`` `(C) If the employing agency uses a rating system having
3 or more ratings to denote performance which is fully
successful or better, then an employee under such system
shall receive--
`` `(i) 5 additional years of service for each performance
rating at the lowest of those 3 or more ratings;
`` `(ii) 7 additional years of service for each performance
rating at the next rating above the rating referred to in
clause (i); and
`` `(iii) 10 additional years of service for each
performance rating above the rating referred to in clause
(ii).
`` `(D) For purposes of this paragraph, a rating shall not
be considered to denote performance which is fully successful
or better unless, in order to receive such rating, such
performance must satisfy all requirements for a fully
successful rating (Level 3) or equivalent, as established
under part 430 of this chapter (as in effect as of January 1,
1996).'; and
``(C) subsection (c) of such section shall be considered to
read as follows:
`` `(c)(1) Service credit for employees who do not have 3
actual annual performance ratings of record received during
the 4-year period prior to the date of issuance of reduction-
in-force notices, or the 4-year period prior to the agency-
established cutoff date for ratings permitted in subsection
(b)(2) of this section, shall be determined in accordance
with paragraph (2).
`` `(2) An employee who has not received 1 or more of the 3
annual performance ratings of record required under this
section shall--
`` `(A) receive credit for performance on the basis of the
rating or ratings actually received (if any); and
`` `(B) for each performance rating not actually received,
be given credit for 5 additional years of service.'.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to reductions in force taking effect
on or after October 1, 1999.
SEC. 302. NO APPEAL OF DENIAL OF PERIODIC STEP-INCREASES.
(a) In General.--Section 5335(c) of title 5, United States
Code, is amended--
(1) by striking the second sentence;
(2) in the third sentence by striking ``or appeal''; and
(3) in the last sentence by striking ``and the entitlement
of the employee to appeal to the Board do not apply'' and
inserting ``does not apply''.
(b) Performance Ratings.--Section 5335 of title 5, United
States Code, as amended by subsection (a), is further
amended--
(1) in subsections (a)(B) and (c) by striking ``of an
acceptable level of competence'' and inserting ``at least
fully successful'';
(2) in the last sentence of subsection (c) by striking
``acceptable level of competence'' and inserting ``fully
successful work performance''; and
(3) by adding at the end the following:
``(g) For purposes of this section, the term `fully
successful' has a meaning similar to that given under section
351.504(d)(3)(D) of title 5 of the Code of Federal
Regulations (as deemed to be amended by section 301(a)(2) of
the Omnibus Civil Service Reform Act of 1996).''.
SEC. 303. PERFORMANCE APPRAISALS.
(a) In General.--Section 4302 of title 5, United States
Code, is amended--
(1) in subsection (b) by striking paragraphs (5) and (6)
and inserting the following:
``(5) assisting employees in improving unacceptable
performance, except in circumstances described in subsection
(c); and
``(6) reassigning, reducing in grade, removing, or taking
other appropriate action against employees whose performance
is unacceptable.''; and
[[Page H11552]]
(2) by adding at the end the following:
``(c) Upon notification of unacceptable performance, an
employee shall be afforded an opportunity to demonstrate
acceptable performance before a reduction in grade or removal
may be proposed under section 4303 based on such performance,
except that an employee so afforded such an opportunity shall
not be afforded any further opportunity to demonstrate
acceptable performance if the employee's performance again is
determined to be at an unacceptable level.''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), this section and
the amendments made by this section shall take effect 180
days after the date of the enactment of this Act.
(2) Exception.--The amendments made by this section shall
not apply in the case of any proposed action as to which the
employee receives advance written notice, in accordance with
section 4303(b)(1)(A) of title 5, United States Code, before
the effective date of this section.
SEC. 304. AMENDMENTS TO INCENTIVE AWARDS AUTHORITY.
Chapter 45 of title 5, United States Code, is amended--
(1) by amending section 4501 to read as follows:
``Sec. 4501. Definitions
``For the purpose of this subchapter--
``(1) the term `agency' means--
``(A) an Executive agency;
``(B) the Library of Congress;
``(C) the Office of the Architect of the Capitol;
``(D) the Botanic Garden;
``(E) the Government Printing Office; and
``(F) the United States Sentencing Commission;
but does not include--
``(i) the Tennessee Valley Authority; or
``(ii) the Central Bank for Cooperatives;
``(2) the term `employee' means an employee as defined by
section 2105; and
``(3) the term `Government' means the Government of the
United States.''; and
(2) by amending section 4503 to read as follows:
``Sec. 4503. Agency awards
``(a) The head of an agency may pay a cash award to, and
incur necessary expense for the honorary recognition of, an
employee who--
``(1) by his suggestion, invention, superior
accomplishment, sustained superior performance, or other
personal effort contributes to the efficiency, economy, or
other improvement of Government operations or achieves a
significant reduction in paperwork; or
``(2) performs a special act or service in the public
interest in connection with or related to his official
employment.
``(b)(1) If the criteria under paragraph (1) or (2) of
subsection (a) are met on the basis of the suggestion,
invention, superior accomplishment, act, service, or other
meritorious effort of a group of employees collectively, and
if the circumstances so warrant (such as by reason of the
infeasibility of determining the relative role or
contribution assignable to each employee separately),
authority under subsection (a) may be exercised--
``(A) based on the collective efforts of the group; and
``(B) with respect to each member of such group.
``(2) The amount awarded to each member of a group under
this subsection--
``(A) shall be the same for all members of such group; and
``(B) may not exceed the maximum cash award allowable under
subsection (a) or (b) of section 4502, as applicable.''.
SEC. 305. DUE PROCESS RIGHTS OF MANAGERS UNDER NEGOTIATED
GRIEVANCE PROCEDURES.
(a) In General.--Paragraph (2) of section 7121(b) of title
5, United States Code, is amended to read as follows:
``(2) The provisions of a negotiated grievance procedure
providing for binding arbitration in accordance with
paragraph (1)(C)(iii) shall, if or to the extent that an
alleged prohibited personnel practice is involved, allow the
arbitrator to order a stay of any personnel action in a
manner similar to the manner described in section 1221(c)
with respect to the Merit Systems Protection Board.''.
(b) Effective Date.--The amendment made by subsection (a)--
(1) shall take effect on the date of the enactment of this
Act; and
(2) shall apply with respect to orders issued on or after
the date of the enactment of this Act, notwithstanding the
provisions of any collective bargaining agreement.
SEC. 306. COLLECTION AND REPORTING OF TRAINING INFORMATION.
(a) Training Within Government.--The Office of Personnel
Management shall collect information concerning training
programs, plans, and methods utilized by agencies of the
Government and submit a report to the Congress on this
activity on an annual basis.
(b) Training Outside of Government.--The Office of
Personnel Management, to the extent it considers appropriate
in the public interest, may collect information concerning
training programs, plans, and methods utilized outside the
Government. The Office, on request, may make such information
available to an agency and to Congress.
TITLE IV--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER BENEFITS
Subtitle A--Additional Investment Funds for the Thrift Savings Plan
SEC. 401. SHORT TITLE.
This subtitle may be cited as the ``Thrift Savings
Investment Funds Act of 1996''.
SEC. 402. 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. 403. 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. 404. 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 Account Liquidity
SEC. 411. SHORT TITLE.
This subtitle may be cited as the ``Thrift Savings Plan Act
of 1996''.
SEC. 412. 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'';
[[Page H11553]]
(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. 413. 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 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
(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 title), with
respect to an annuity which has not commenced before the
implementation date of this title as provided by regulation
by the Executive Director in accordance with section 407,
shall be invalid.
SEC. 414. 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. 415. 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. 416. 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.
[[Page H11554]]
(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. 417. 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. 418. EFFECTIVE DATE.
This subtitle shall take effect on the date of the
enactment of this Act and withdrawals 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.
Subtitle C--Other Provisions Relating to the Thrift Savings Plan
SEC. 421. PERCENTAGE LIMITATIONS ON CONTRIBUTIONS.
(a) Amendments Relating to FERS.--
(1) In general.--Subsection (a) of section 8432 of title 5,
United States Code, is amended by striking ``10 percent of''.
(2) Justices and judges.--Subsection (b) of section 8440a
of title 5, United States Code, is amended--
(A) by striking paragraph (2) and by redesignating
paragraphs (3) through (7) as paragraphs (2) through (6),
respectively; and
(B) in paragraph (6) (as so redesignated by subparagraph
(A)) by striking ``paragraphs (4) and (5)'' and inserting
``paragraphs (3) and (4)''.
(3) Bankruptcy judges and magistrates.--Subsection (b) of
section 8440b of title 5, United States Code, is amended--
(A) by striking paragraph (2) and by redesignating
paragraphs (3) through (8) as paragraphs (2) through (7),
respectively;
(B) in paragraph (4) (as so redesignated by subparagraph
(A)) by striking ``paragraph (4)(A), (B), or (C)'' and
inserting ``paragraph (3)(A), (B), or (C)''; and
(C) in paragraph (7) (as so redesignated by subparagraph
(A)) by striking ``Notwithstanding paragraph (4),'' and
inserting ``Notwithstanding paragraph (3),''.
(4) Court of federal claims judges.--Subsection (b) of
section 8440c of title 5, United States Code, is amended--
(A) by striking paragraph (2) and by redesignating
paragraphs (3) through (8) as paragraphs (2) through (7),
respectively;
(B) in paragraph (4) (as so redesignated by subparagraph
(A)) by striking ``paragraph (4)(A) or (B)'' and inserting
``paragraph (3)(A) or (B)''; and
(C) in paragraph (7) (as so redesignated by subparagraph
(A)) by striking ``Notwithstanding paragraph (4),'' and
inserting ``Notwithstanding paragraph (3),''.
(5) Judges of the united states court of veterans
appeals.--Paragraph (2) of section 8440d(b) of title 5,
United States Code, is amended to read as follows:
``(2) For purposes of contributions made to the Thrift
Savings Fund, basic pay does not include any retired pay paid
pursuant to section 7296 of title 38.''.
(b) Amendments Relating to CSRS.--Paragraph (2) of section
8351(b) of title 5, United States Code, is amended by
striking ``5 percent of''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect 6 months after the date of the enactment of this
Act or such earlier date as the Executive Director may by
regulation prescribe.
(2) Coordination with election periods.--The Executive
Director shall by regulation determine the first election
period in which elections may be made consistent with the
amendments made by this section.
(3) Definitions.--For purposes of this subsection--
(A) the term ``election period'' means a period afforded
under section 8432(b) of title 5, United States Code; and
(B) the term ``Executive Director'' has the meaning given
such term by section 8401(13) of title 5, United States Code.
SEC. 422. LOANS UNDER THE THRIFT SAVINGS PLAN FOR FURLOUGHED
EMPLOYEES.
Section 8433(g) of title 5, United States Code, is amended
by adding at the end the following:
``(6) An employee who has been furloughed due to a lapse in
appropriations may not be denied a loan under this subsection
solely because such employee is not in a pay status.''.
SEC. 423. IMMEDIATE PARTICIPATION IN THE THRIFT SAVINGS PLAN.
(a) Elimination of Certain Waiting Periods for Purposes of
Employee Contributions.--Paragraph (4) of section 8432(b) of
title 5, United States Code, is amended to read as follows:
``(4) The Executive Director shall prescribe such
regulations as may be necessary to carry out the following:
``(A) Notwithstanding subparagraph (A) of paragraph (2), an
employee or Member described in such subparagraph shall be
afforded a reasonable opportunity to first make an election
under this subsection beginning on the date of commencing
service or, if that is not administratively feasible,
beginning on the earliest date thereafter that such an
election becomes administratively feasible, as determined by
the Executive Director.
``(B) An employee or Member described in subparagraph (B)
of paragraph (2) shall be afforded a reasonable opportunity
to first make an election under this subsection (based on the
appointment or election described in such subparagraph)
beginning on the date of commencing service pursuant to such
appointment or election or, if that is not administratively
feasible, beginning on the earliest date thereafter that such
an election becomes administratively feasible, as determined
by the Executive Director.
``(C) Notwithstanding the preceding provisions of this
paragraph, contributions under paragraphs (1) and (2) of
subsection (c) shall not be payable with respect to any pay
period before the earliest pay period for which such
contributions would otherwise be allowable under this
subsection if this paragraph had not been enacted.
``(D) Sections 8351(a)(2), 8440a(a)(2), 8440b(a)(2),
8440c(a)(2), and 8440d(a)(2) shall be applied in a manner
consistent with the purposes of subparagraphs (A) and (B), to
the extent those subparagraphs can be applied with respect
thereto.
``(E) Nothing in this paragraph shall affect paragraph
(3).''.
(b) Technical and Conforming Amendments.--(1) Section
8432(a) of title 5, United States Code, is amended--
(A) in the first sentence by striking ``(b)(1)'' and
inserting ``(b)''; and
(B) by amending the second sentence to read as follows:
``Contributions under this subsection pursuant to such an
election shall, with respect to each pay period for which
such election remains in effect, be made in accordance with a
program of regular contributions provided in regulations
prescribed by the Executive Director.''.
(2) Section 8432(b)(1)(B) of such title is amended by
inserting ``(or any election allowable by virtue of paragraph
(4))'' after ``subparagraph (A)''.
(3) Section 8432(b)(3) of such title is amended by striking
``Notwithstanding paragraph (2)(A), an'' and inserting
``An''.
(4) Section 8432(i)(1)(B)(ii) of such title is amended by
striking ``either elected to terminate individual
contributions to the Thrift Savings Fund within 2 months
before commencing military service or''.
(5) Section 8439(a)(1) of such title is amended by
inserting ``who makes contributions or'' after ``for each
individual'' and by striking ``section 8432(c)(1)'' and
inserting ``section 8432''.
(6) Section 8439(c)(2) of such title is amended by adding
at the end the following: ``Nothing in this paragraph shall
be considered to limit the dissemination of information only
to the times required under the preceding sentence.''.
(7) Sections 8440a(a)(2) and 8440d(a)(2) of such title are
amended by striking all after ``subject to'' and inserting
``subject to this chapter.''.
(c) Effective Date.--This section shall take effect 6
months after the date of the enactment of this Act or such
earlier date as the Executive Director (within the meaning of
section 8401(13) of title 5, United States Code) may by
regulation prescribe.
Subtitle D--Resumption of Certain Survivor Annuities That Terminated by
Reason of Marriage
SEC. 431. RESUMPTION OF CERTAIN SURVIVOR ANNUITIES THAT
TERMINATED BY REASON OF MARRIAGE.
(a) Civil Service Retirement System.--Section 8341(e) of
title 5, United States Code, is amended by adding at the end
the following:
``(4) If the annuity of a child under this subchapter
terminates under paragraph (3)(E) because of marriage, then,
if such marriage ends (whether by death of the spouse,
divorce, or annulment), such annuity shall resume on the
first day of the month in which the marriage ends, but only
if--
``(A) any lump sum paid is returned to the Fund; and
``(B) that individual is not otherwise ineligible for such
annuity.''.
(b) Federal Employees' Retirement System.--Section 8443(b)
of such title is amended by adding at the end the following:
``If the annuity of a child under this subchapter terminates
under subparagraph (E) because of marriage, then, if such
marriage ends (whether by death of the spouse, divorce, or
annulment), such annuity shall resume on the first day of the
month in which the marriage ends, but only if any lump sum
paid is
[[Page H11555]]
returned to the Fund, and that individual is not otherwise
ineligible for such annuity.''.
(c) Health Benefits Program.--Section 8908 of title 5,
United States Code, is amended by adding at the end the
following:
``(d) An individual--
``(1) whose survivor annuity under section 8341(e) is
terminated, and then later restored under paragraph (4)
thereof, or
``(2) whose survivor annuity under section 8443(b) is
terminated, and then later restored under the last sentence
thereof,
may, under regulations prescribed by the Office, enroll in a
health benefits plan described by section 8903 or 8903a if
such individual was covered by any such plan immediately
before such annuity so terminated.''.
(d) Applicability.--The amendments made by this section
shall apply with respect to any termination of marriage
taking effect before, on, or after the date of the enactment
of this Act, except that no amount shall be payable by reason
of the amendments made by subsections (a) and (b),
respectively, except to the extent of any amounts accruing
for periods beginning on or after the first day of the first
month beginning on or after the later of--
(1) the date of the enactment of this Act; or
(2) the date as of which termination of marriage takes
effect.
Subtitle E--Life Insurance Benefits
SEC. 441. DOMESTIC RELATIONS ORDERS.
(a) In General.--Section 8705 of title 5, United States
Code, is amended--
(1) in subsection (a) by striking ``(a) The'' and inserting
``(a) Except as provided in subsection (e), the''; and
(2) by adding at the end the following:
``(e)(1) Any amount which would otherwise be paid to a
person determined under the order of precedence named by
subsection (a) shall be paid (in whole or in part) by the
Office to another person if and to the extent expressly
provided for in the terms of any court decree of divorce,
annulment, or legal separation, or the terms of any court
order or court-approved property settlement agreement
incident to any court decree of divorce, annulment, or legal
separation.
``(2) For purposes of this subsection, a decree, order, or
agreement referred to in paragraph (1) shall not be effective
unless it is received, before the date of the covered
employee's death, by the employing agency or, if the employee
has separated from service, by the Office.
``(3) A designation under this subsection with respect to
any person may not be changed except--
``(A) with the written consent of such person, if received
as described in paragraph (2); or
``(B) by modification of the decree, order, or agreement,
as the case may be, if received as described in paragraph
(2).
``(4) The Office shall prescribe any regulations necessary
to carry out this subsection, including regulations for the
application of this subsection in the event that 2 or more
decrees, orders, or agreements, are received with respect to
the same amount.''.
(b) Directed Assignment.--Section 8706(e) of title 5,
United States Code, is amended--
(1) by striking ``(e)'' and inserting ``(e)(1)''; and
(2) by adding at the end the following:
``(2) A court decree of divorce, annulment, or legal
separation, or the terms of a court-approved property
settlement agreement incidental to any court decree of
divorce, annulment, or legal separation, may direct that an
insured employee or former employee make an irrevocable
assignment of the employee's or former employee's incidents
of ownership in insurance under this chapter (if there is no
previous assignment) to the person specified in the court
order or court-approved property settlement agreement.''.
SEC. 442. EXCEPTION FROM PROVISIONS REQUIRING REDUCTION IN
ADDITIONAL OPTIONAL LIFE INSURANCE.
(a) In General.--Subsection (c) of section 8714b of title
5, United States Code, is amended by adding at the end the
following:
``(3)(A) The amount of additional optional insurance
continued under paragraph (2) shall be continued, without any
reduction under the last two sentences thereof, if--
``(i) at the time of retirement, there is in effect a
designation under section 8705 under which the entire amount
of such insurance would be paid to an individual who is
permanently disabled; and
``(ii) an election under subsection (d)(3) on behalf of
such individual is made in timely fashion.
``(B) Notwithstanding subparagraph (A), any reduction
required under paragraph (2) shall be made if--
``(i) the additional optional insurance is not in fact paid
in accordance with the designation under section 8705, as in
effect at the time of retirement;
``(ii) the Office finds that adequate arrangements have not
been made to ensure that the insurance provided under this
section will be used only for the care and support of the
individual so designated; or
``(iii) the election referred to in subparagraph (A)(ii)
terminates at any time before the death of the individual who
made such election.
``(C) For purposes of this paragraph, the term `permanently
disabled' shall have the meaning given such term under
regulations which the Office shall prescribe based on
subparagraphs (A) and (C) of section 1614(a)(3) of the Social
Security Act, except that, in applying subparagraph (A) of
such section for purposes of this subparagraph, `which can be
expected to last permanently' shall be substituted for `which
has lasted or can be expected to last for a continuous period
of not less than twelve months'.''.
(b) Continued Withholdings.--Subsection (d) of such section
8714b is amended by adding at the end the following:
``(3)(A) To be eligible for unreduced additional optional
insurance under subsection (c)(3), the insured individual
shall be required to elect, at such time and in such manner
as the Office by regulation requires (including procedures
for demonstrating compliance with the requirements of
subsection (c)(3)), to have the full cost thereof continue to
be withheld from the former employee's annuity or
compensation, as the case may be, beginning as of when such
withholdings would otherwise cease under the second sentence
of paragraph (1).
``(B) An election made by an insured individual under
subparagraph (A) (and withholdings pursuant thereto) shall
terminate in the event that--
``(i) the insured individual--
``(I) revokes such election; or
``(II) makes any redesignation or other change in the
designation under section 8705 (as in effect at the time of
retirement); or
``(ii) the Office finds, upon the application of the
insured individual or on its own initiative, that any of the
requirements or conditions for unreduced additional optional
insurance under subsection (c)(3) are, at any time, no longer
met.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) Election for certain individuals not otherwise
eligible.--The Office of Personnel Management shall prescribe
regulations under which an election under section
8714b(d)(3)(A) of title 5, United States Code (as amended by
this section) may be made, within 1 year after the date of
the enactment of this Act, by any individual not otherwise
eligible to make such an election, but only if such
individual--
(A) separated from service on or after the first day of the
50-month period ending on the date of enactment of this Act;
and
(B) would have been so eligible had the amendments made by
this section (and implementing regulations) been in effect as
of the individual's separation date (or, if earlier, the last
day for making such an election based on that separation).
(3) Withholdings.--
(A) Prospective effect.--If an individual makes an election
under paragraph (2), withholdings under section
8714b(d)(3)(A) of such title 5 shall thereafter be made from
such individual's annuity or compensation, as the case may
be.
(B) Earlier amounts.--If, pursuant to such election,
benefits are in fact paid in accordance with section
8714b(c)(3) of such title 5 upon the death of the insured
individual, an appropriate reduction (computed under
regulations prescribed by the Office) shall be made in such
benefits to reflect the withholdings that--
(i) were not made (before the commencement of withholdings
under subparagraph (A)) by reason of the cessation of
withholdings under the second sentence of section 8714b(d)(1)
of such title; but
(ii) would have been made had the amendments made by this
section (and implementing regulations) been in effect as of
the time described in paragraph (2)(B).
(4) Notice.--The Office shall, by publication in the
Federal Register and such other methods as it considers
appropriate, notify current and former Federal employees as
to the enactment of this section and any benefits for which
they might be eligible pursuant thereto. Included as part of
such notification shall be a brief description of the
procedures for making an election under paragraph (2) and any
other information that the Office considers appropriate.
SEC. 403. TEMPORARY CONTINUATION OF FEDERAL EMPLOYEES' LIFE
INSURANCE.
Section 8706 of title 5, United States Code, is amended by
adding at the end the following:
``(g)(1) Notwithstanding subsections (a) and (b) of this
section, an employee whose coverage under this chapter would
otherwise terminate due to a separation described in
paragraph (3) shall be eligible to continue basic insurance
coverage described in section 8704 in accordance with this
subsection and regulations the Office may prescribe, if the
employee arranges to pay currently into the Employees Life
Insurance Fund, through the former employing agency or, if an
annuitant, through the responsible retirement system, an
amount equal to the sum of--
``(A) both employee and agency contributions which would be
payable if separation had not occurred; plus
``(B) an amount, determined under regulations prescribed by
the Office, to cover necessary administrative expenses, but
not to exceed 2 percent of the total amount under
subparagraph (A).
``(2) Continued coverage under this subsection may not
extend beyond the date which is 18 months after the effective
date of the separation which entitles a former employee to
coverage under this subsection. Termination of continued
coverage under this subsection shall be subject to provision
for temporary extension of life insurance coverage and for
conversion to an individual policy of life insurance as
provided by subsection (a). If an eligible employee does not
[[Page H11556]]
make an election for purposes of this subsection, the
employee's insurance will terminate as provided by subsection
(a).
``(3)(A) This subsection shall apply to an employee who, on
or after the date of enactment of this subsection and before
the applicable date under subparagraph (B)--
``(i) is involuntarily separated from a position due to a
reduction in force, or separates voluntarily from a position
the employing agency determines is a `surplus position' as
defined by section 8905(d)(4)(C); and
``(ii) is insured for basic insurance under this chapter on
the date of separation.
``(B) The applicable date under this subparagraph is
October 1, 1999, except that, for purposes of any involuntary
separation referred to in subparagraph (A) with respect to
which appropriate specific notice is afforded to the affected
employee before October 1, 1999, the applicable date under
this subparagraph is February 1, 2000.''.
TITLE V--REORGANIZATION FLEXIBILITY
SEC. 501. VOLUNTARY REDUCTIONS IN FORCE.
Section 3502(f) of title 5, United States Code, is amended
to read as follows:
``(f)(1) The head of an Executive agency or military
department may--
``(A) separate from service any employee who volunteers to
be separated under this subparagraph even though the employee
is not otherwise subject to separation due to a reduction in
force; and
``(B) for each employee voluntarily separated under
subparagraph (A), retain an employee in a similar position
who would otherwise be separated due to a reduction in force.
``(2) The separation of an employee under paragraph (1)(A)
shall be treated as an involuntary separation due to a
reduction in force, except for purposes of priority placement
programs and advance notice.
``(3) An employee with critical knowledge and skills (as
defined by the head of the Executive agency or military
department concerned) may not participate in a voluntary
separation under paragraph (1)(A) if the agency or department
head concerned determines that such participation would
impair the performance of the mission of the agency or
department (as applicable).
``(4) The regulations prescribed under this section shall
incorporate the authority provided in this subsection.
``(5) No authority under paragraph (1) may be exercised
after September 30, 2001.''.
SEC. 502. NONREIMBURSABLE DETAILS TO FEDERAL AGENCIES BEFORE
A REDUCTION IN FORCE.
(a) In General.--Section 3341 of title 5, United States
Code, is amended to read as follows:
``Sec. 3341. Details; within Executive agencies and military
departments; employees affected by reduction in force
``(a) The head of an Executive agency or military
department may detail employees, except those required by law
to be engaged exclusively in some specific work, among the
bureaus and offices of the agency or department.
``(b) The head of an Executive agency or military
department may detail to duties in the same or another agency
or department, on a nonreimbursable basis, an employee who
has been identified by the employing agency as likely to be
separated from the Federal service by reduction in force or
who has received a specific notice of separation by reduction
in force.
``(c)(1) Details under subsection (a)--
``(A) may not be for periods exceeding 120 days; and
``(B) may be renewed (1 or more times) by written order of
the head of the agency or department, in each particular
case, for periods not exceeding 120 days each.
``(2) Details under subsection (b)--
``(A) may not be for periods exceeding 90 days; and
``(B) may not be renewed.
``(d) The 120-day limitation under subsection (c)(1) for
details and renewals of details does not apply to the
Department of Defense in the case of a detail--
``(1) made in connection with the closure or realignment of
a military installation pursuant to a base closure law or an
organizational restructuring of the Department as part of a
reduction in the size of the armed forces or the civilian
workforce of the Department; and
``(2) in which the position to which the employee is
detailed is eliminated on or before the date of the closure,
realignment, or restructuring.
``(e) For purposes of this section--
``(1) the term `base closure law' means--
``(A) section 2687 of title 10;
``(B) title II of the Defense Authorization Amendments and
Base Closure and Realignment Act; and
``(C) the Defense Base Closure and Realignment Act of 1990;
and
``(2) the term `military installation'--
``(A) in the case of an installation covered by section
2687 of title 10, has the meaning given such term in
subsection (e)(1) of such section;
``(B) in the case of an installation covered by the Act
referred to in subparagraph (B) of paragraph (1), has the
meaning given such term in section 209(6) of such Act; and
``(C) in the case of an installation covered by the Act
referred to in subparagraph (C) of paragraph (1), has the
meaning given such term in section 2910(4) of such Act.''.
(b) Clerical Amendment.--The table of sections for chapter
33 of title 5, United States Code, is amended by striking the
item relating to section 3341 and inserting the following:
``3341. Details; within Executive agencies and military departments;
employees affected by reduction in force.''.
(c) Effective Date.--The amendments made by this section
shall take effect 30 days after the date of the enactment of
this Act.
TITLE VI--SOFT-LANDING PROVISIONS
SEC. 601. CONTINUED ELIGIBILITY FOR LIFE INSURANCE.
(a) In General.--Section 8706 of title 5, United States
Code, is amended by redesignating subsections (d) through (f)
as subsections (e) through (g), respectively, and by
inserting after subsection (c) the following:
``(d)(1) Notwithstanding subsection (b), any employee who,
on or after the date of the enactment of this subsection and
before the applicable date under paragraph (2)--
``(A) is involuntarily separated from a position, or
voluntarily separated from a surplus position, in or under an
Executive agency due to a reduction in force,
``(B) based on the separation referred to in subparagraph
(A), retires on an immediate annuity under subchapter III of
chapter 83 or subchapter II of chapter 84, but does not
satisfy the requirements of subsection (b)(1), and
``(C) is insured on the date of separation,
may, within 60 days after the date of separation, elect to
continue such employee's insurance and arrange to pay
currently into the Employees' Life Insurance Fund both the
employee and agency contributions therefor, in accordance
with procedures prescribed by the Office. If the employee
does not so elect, such employee's insurance will terminate
as provided by subsection (a).
``(2) The applicable date under this paragraph is October
1, 1999, except that, for purposes of any involuntary
separation referred to in paragraph (1)(A) with respect to
which appropriate specific notice is afforded to the affected
employee before October 1, 1999, the applicable date under
this paragraph is February 1, 2000.
``(3) For purposes of this subsection, the term `surplus
position', with respect to an agency, means any position
determined in accordance with regulations under section
8905a(d)(4)(C) for such agency.''.
(b) Conforming Amendment.--Section 8706(g) of title 5,
United States Code, as so redesignated by subsection (a), is
amended by striking ``subsection (e)'' and inserting
``subsection (f)''.
SEC. 602. CONTINUED ELIGIBILITY FOR HEALTH INSURANCE.
(a) Continued Eligibility After Retirement.--Section 8905
of title 5, United States Code, is amended--
(1) in the first sentence of subsection (b) by striking
``An'' and inserting ``Subject to subsection (g), an''; and
(2) by adding at the end the following:
``(g)(1) The Office shall waive the requirements for
continued enrollment under subsection (b) in the case of any
individual who, on or after the date of the enactment of this
subsection and before the applicable date under paragraph
(2)--
``(A) is involuntarily separated from a position, or
voluntarily separated from a surplus position, in or under an
Executive agency due to a reduction in force,
``(B) based on the separation referred to in subparagraph
(A), retires on an immediate annuity under subchapter III of
chapter 83 or subchapter II of chapter 84, and
``(C) is enrolled in a health benefits plan under this
chapter as an employee immediately before retirement.
``(2) The applicable date under this paragraph is October
1, 1999, except that, for purposes of any involuntary
separation referred to in paragraph (1)(A) with respect to
which appropriate specific notice is afforded to the affected
employee before October 1, 1999, the applicable date under
this paragraph is February 1, 2000.
``(3) For purposes of this subsection, the term `surplus
position', with respect to an agency, means any position
determined in accordance with regulations under section
8905a(d)(4)(C) for such agency.''.
(b) Temporary Continued Eligibility After Being
Involuntarily Separated.--Section 8905a(d)(4) of title 5,
United States Code, is amended--
(1) in subparagraph (A) by striking ``the Department of
Defense'' and inserting ``an Executive agency''; and
(2) by amending subparagraph (C) to read as follows:
``(C) For purposes of this paragraph, the term `surplus
position' means a position that, as determined under
regulations prescribed by the head of the agency involved, is
identified during planning for a reduction in force as being
no longer required and is designated for elimination during
the reduction in force.''.
SEC. 603. PRIORITY PLACEMENT PROGRAMS FOR FEDERAL EMPLOYEES
AFFECTED BY A REDUCTION IN FORCE.
(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. Priority placement programs for employees
affected by a reduction in force
``(a) Not later than 3 months after the date of the
enactment of this section, each Executive agency shall
establish an agencywide priority placement program, to
facilitate employment placement for employees who--
``(1) are scheduled to be separated from service due to a
reduction in force under--
``(A) regulations prescribed under section 3502; or
[[Page H11557]]
``(B) procedures established under section 3595;
``(2) are separated from service due to such a reduction in
force; or
``(3) have received a rating of at least fully successful
(or the equivalent) as the last performance rating of record
used for retention purposes (except for employees in
positions excluded from a performance appraisal system by
law, regulation, or administrative action taken by the Office
of Personnel Management).
``(b)(1) Each agencywide priority placement program under
this section shall include provisions under which a vacant
position shall not (except as provided in this subsection) be
filled by the appointment or transfer of any individual from
outside of that agency (other than an individual described in
paragraph (2)) if--
``(A) there is then available any individual described in
paragraph (2) who is qualified for the position; and
``(B) 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 clause
(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.
``(2) For purposes of an agencywide priority placement
program, an individual shall be considered to be described in
this paragraph if such individual is--
``(A) an employee of such agency who is scheduled to be
separated, as described in subsection (a)(1); or
``(B) an individual who became a former employee of such
agency as a result of a separation, as described in
subsection (a)(2).
``(c)(1) If after a reduction in force the agency has no
positions of any type within the local commuting areas
specified in this section, the individual may designate a
different local commuting area where the agency has
continuing positions in order to exercise reemployment rights
under this section. 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.
``(2) At its option, an agency may administratively extend
reemployment rights under this section to include other local
commuting areas.
``(d)(1) In selecting employees for positions under this
section, the agency shall place qualified present and former
employees in retention order by veterans' preference subgroup
and tenure group.
``(2) 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.
``(3) Within a subgroup, the agency may select a qualified
present or former employee without regard to the individual's
total creditable service.
``(e) An individual is eligible for reemployment priority
under this section for 2 years from the effective date of the
reduction in force from which the individual will be, or has
been, separated under section 3502.
``(f) An individual qualified present or former employee
loses eligibility for reemployment priority under this
section when the individual--
``(1) requests removal in writing;
``(2) accepts or declines a bona fide offer under this
section or fails to accept such an offer within the period of
time allowed for such acceptance, or
``(3) separates from the agency before being separated
under section 3502.
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 section 3502 retains eligibility for positions with a
higher representative rate up to the rate of the individual's
last position.
``(g) Whenever more than one individual is qualified for a
position under this section, the agency shall select the most
highly qualified individual, subject to subsection (d).
``(h) The Office of Personnel Management shall issue
regulations to implement this section.''.
(b) Clerical Amendment.--The table of sections for chapter
33 of title 5, United States Code, is amended by adding after
the item relating to the section 3330 the following:
``3330a. Priority placement programs for employees affected by a
reduction in force.''.
SEC. 604. JOB PLACEMENT AND COUNSELING SERVICES.
(a) Authority for Services.--The head of each Executive
agency may establish a program to provide job placement and
counseling services to current and former employees.
(b) Types of Services Authorized.--A program established
under this section may include such services as--
(1) career and personal counseling;
(2) training in job search skills; and
(3) job placement assistance, including assistance provided
through cooperative arrangements with State and local
employment service offices.
(c) Eligibility for Services.--Services authorized by this
section may be provided to--
(1) current employees of the agency or, with the approval
of such other agency, any other agency; and
(2) employees of the agency or, with the approval of such
other agency, any other agency who have been separated for
less than 1 year, if the separation was not a removal for
cause on charges of misconduct or delinquency.
(d) Reimbursement for Costs.--The costs of services
provided to current or former employees of another agency
shall be reimbursed by that agency.
SEC. 605. EDUCATION AND RETRAINING INCENTIVES.
(a) Non-Federal Employment Incentive Payments.--
(1) Definitions.--For purposes of this subsection--
(A) the term ``eligible employee'' means an employee who is
involuntarily separated from a position, or voluntarily
separated from a surplus position, in or under an Executive
agency due to a reduction in force, except that such term
does not include an employee who, at the time of
separation, meets the age and service requirements for an
immediate annuity under subchapter III of chapter 83 or
chapter 84 of title 5, United States Code, other than
under section 8336(d) or 8414(b) of such title;
(B) the term ``non-Federal employer'' means an employer
other than the Government of the United States or any agency
or other instrumentality thereof;
(C) the term ``Executive agency'' has the meaning given
such term by section 105 of title 5, United States Code; and
(D) the term ``surplus position'' has the meaning given
such term by section 8905(d)(4)(C) of title 5, United States
Code.
(2) Authority.--The head of an Executive agency may pay
retraining and relocation incentive payments, in accordance
with this subsection, in order to facilitate the reemployment
of eligible employees who are separated from such agency.
(3) Retraining incentive payment.--
(A) Agreement.--The head of an Executive agency may enter
into an agreement with a non-Federal employer under which the
non-Federal employer agrees--
(i) to employ an individual referred to in paragraph (2)
for at least 12 months for a salary which is mutually
agreeable to the employer and such individual; and
(ii) to certify to the agency head any costs incurred by
the employer for any necessary training provided to such
individual in connection with the employment by such
employer.
(B) Payment of retraining incentive payment.--The agency
head shall pay a retraining incentive payment to the non-
Federal employer upon the employee's completion of 12 months
of continuous employment by that employer. The agency head
shall prescribe the amount of the incentive payment.
(C) Proration rule.--The agency head shall pay a prorated
amount of the full retraining incentive payment to the non-
Federal employer for an employee who does not remain employed
by the non-Federal employer for at least 12 months, but only
if the employee remains so employed for at least 6 months.
(D) Limitation.--In no event may the amount of the
retraining incentive payment paid for the training of any
individual exceed the amount certified for such individual
under subparagraph (A), subject to subsection (c).
(4) Relocation incentive payment.--The head of an agency
may pay a relocation incentive payment to an eligible
employee if it is necessary for the employee to relocate in
order to commence employment with a non-Federal employer.
Subject to subsection (e), the amount of the incentive
payment shall not exceed the amount that would be payable for
travel, transportation, and subsistence expenses under
subchapter II of chapter 57 of title 5, United States Code,
including any reimbursement authorized under section 5724b of
such title, to a Federal employee who transfers between the
same locations as the individual to whom the incentive
payment is payable.
(5) Duration.--No incentive payment may be paid for
training or relocation commencing after June 30, 2000.
(6) Source.--An incentive payment under this subsection
shall be payable from appropriations or other funds available
to the agency for purposes of training (within the meaning of
section 4101(4) of title 5, United States Code).
(b) Educational Assistance.--
(1) In general.--Under regulations prescribed by the Office
of Personnel Management, all or any part of the amount
described in subsection (c) may be afforded to any employee
described in paragraph (2) in the form of educational
assistance.
(2) Eligible employee.--An individual shall not be eligible
for educational assistance under this subsection unless such
individual--
(A) is an eligible employee, within the meaning of
subsection (a); and
(B) has completed at least 3 years of current continuous
service in any Executive agency or agencies.
(c) Aggregate Limitation.--No incentive payment or other
amount may be paid under this section to or on behalf of any
individual to the extent that such amount would cause the
aggregate amount otherwise paid or payable under this
section, to or on behalf of such individual, to exceed
$10,000.
[[Page H11558]]
TITLE VII--MISCELLANEOUS
SEC. 701. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY
INSURANCE.
(a) Authority.--Notwithstanding any other provision of law,
any amounts appropriated, for fiscal year 1997 or any fiscal
year thereafter, for salaries and expenses of Government
employees may be used to reimburse any qualified employee for
not to exceed one-half the costs incurred by such employee
for professional liability insurance. A payment under this
section shall be contingent upon the submission of such
information or documentation as the employing agency may
require.
(b) Qualified Employee.--For purposes of this section, the
term ``qualified employee'' means--
(1) an agency employee whose position is that of a law
enforcement officer;
(2) an agency employee whose position is that of a
supervisor or management official; or
(3) such other employee as the head of the agency considers
appropriate
(c) Definitions.--For purposes of this section--
(1) the term ``agency'' means an Executive agency, as
defined by section 105 of title 5, United States Code;
(2) the term ``law enforcement officer'' means an employee,
the duties of whose position are primarily the investigation,
apprehension, prosecution, or detention of individuals
suspected or convicted of offenses against the criminal laws
of the United States, including any law enforcement officer
under section 8331(20) or 8401(17) of such title 5;
(3) the terms ``supervisor'' and ``management official''
have the respective meanings given them by section 7103(a) of
such title 5; and
(4) the term ``professional liability insurance'' means
insurance which provides coverage for--
(A) legal liability for damages due to injuries to other
persons, damage to their property, or other damage or loss to
such other persons (including the expenses of litigation and
settlement) resulting from or arising out of any tortious
act, error, or omission of the covered individual (whether
common law, statutory, or constitutional) while in the
performance of such individual's official duties as a
qualified employee; and
(B) the cost of legal representation for the covered
individual in connection with any administrative or judicial
proceeding (including any investigation or disciplinary
proceeding) relating to any act, error, or omission of the
covered individual while in the performance of such
individual's official duties as a qualified employee, and
other legal costs and fees relating to any such
administrative or judicial proceeding.
SEC. 702. EMPLOYMENT RIGHTS FOLLOWING CONVERSION TO CONTRACT.
(a) In General.--An employee whose position is abolished
because an activity performed by an Executive agency (within
the meaning of section 105 of title 5, United States Code, is
converted to contract shall receive from the contractor an
offer in good faith of a right of first refusal of employment
under the contract for a position for which the employee is
deemed qualified based upon previous knowledge, skills,
abilities, and experience. The contractor shall not offer
employment under the contract to any person prior to having
complied fully with this obligation, except as provided in
subsection (b), or unless no employee whose position is
abolished because such activity has been converted to
contract can demonstrate appropriate qualifications for the
position.
(b) Exception.--Notwithstanding the contractor's obligation
under subsection (a), the contractor is not required to offer
a right of first refusal to any employee who, in the 12
months preceding conversion to contract, has been the subject
of an adverse personnel action related to misconduct or has
received a less than fully successful performance rating.
(c) Limitation.--No employee shall have a right to more
than 1 offer under this section based on any particular
separation due to the conversion of an activity to contract.
(d) Regulations.--Regulations to carry out this section may
be prescribed by the President.
SEC. 703. DEBARMENT OF HEALTH CARE PROVIDERS FOUND TO HAVE
ENGAGED IN FRAUDULENT PRACTICES.
(a) In General.--Section 8902a of title 5, United States
Code, is amended--
(1) in subsection (a)(2)(A) by striking ``subsection (b) or
(c)'' and inserting ``subsection (b), (c), or (d)'';
(2) in subsection (b)--
(A) by striking ``may'' and inserting ``shall'' in the
matter before paragraph (1); and
(B) by amending paragraph (5) to read as follows:
``(5) Any provider that is currently suspended or excluded
from participation under any program of the Federal
Government involving procurement or nonprocurement
activities.'';
(3) by redesignating subsections (c) through (i) as
subsections (d) through (j), respectively, and by inserting
after subsection (b) the following:
``(c) The Office may bar the following providers of health
care services from participating in the program under this
chapter:
``(1) Any provider--
``(A) whose license to provide health care services or
supplies has been revoked, suspended, restricted, or not
renewed, by a State licensing authority for reasons relating
to the provider's professional competence, professional
performance, or financial integrity; or
``(B) that surrendered such a license while a formal
disciplinary proceeding was pending before such an authority,
if the proceeding concerned the provider's professional
competence, professional performance, or financial integrity.
``(2) Any provider that is an entity directly or indirectly
owned, or with a 5 percent or more controlling interest, by
an individual who is convicted of any offense described in
subsection (b), against whom a civil monetary penalty has
been assessed under subsection (d), or who has been excluded
from participation under this chapter.
``(3) Any provider that the Office determines, in
connection with claims presented under this chapter, has
charged for health care services or supplies in an amount
substantially in excess of such provider's customary charges
for such services or supplies (unless the Office finds there
is good cause for such charge), or charged for health care
services or supplies which are substantially in excess of the
needs of the covered individual or which are of a quality
that fails to meet professionally recognized standards for
such services or supplies.
``(4) Any provider that the Office determines has committed
acts described in subsection (d).'';
(4) in subsection (d), as so redesignated by paragraph (3),
by amending paragraph (1) to read as follows:
``(1) in connection with claims presented under this
chapter, that a provider has charged for a health care
service or supply which the provider knows or should have
known involves--
``(A) an item or service not provided as claimed;
``(B) charges in violation of applicable charge limitations
under section 8904(b); or
``(C) an item or service furnished during a period in which
the provider was excluded from participation under this
chapter pursuant to a determination by the Office under this
section, other than as permitted under subsection
(g)(2)(B);'';
(5) in subsection (f), as so redesignated by paragraph (3),
by inserting ``(where such debarment is not mandatory),''
after ``under this section'' the first place it appears;
(6) in subsection (g), as so redesignated by paragraph
(3)--
(A) by striking ``(g)(1)'' and all that follows through the
end of paragraph (1) and inserting the following:
``(g)(1)(A) Except as provided in subparagraph (B),
debarment of a provider under subsection (b) or (c) shall be
effective at such time and upon such reasonable notice to
such provider, and to carriers and covered individuals, as
shall be specified in regulations prescribed by the Office.
Any such provider that is excluded from participation may
request a hearing in accordance with subsection (h)(1).
``(B) Unless the Office determines that the health or
safety of individuals receiving health care services warrants
an earlier effective date, the Office shall not make a
determination adverse to a provider under subsection (c)(4)
or (d) until such provider has been given reasonable notice
and an opportunity for the determination to be made after a
hearing as provided in accordance with subsection (h)(1).'';
(B) in paragraph (3)--
(i) by inserting ``of debarment'' after ``notice''; and
(ii) by adding at the end the following: ``In the case of a
debarment under paragraphs (1) through (4) of subsection (b),
the minimum period of exclusion shall not be less than 3
years, except as provided in paragraph (4)(B)(ii).''; and
(C) in paragraph (4)(B)(i)(I) by striking ``subsection (b)
or (c)'' and inserting ``subsection (b), (c), or (d)'';
(7) in subsection (h)--
(A) by striking ``(h)(1)'' and all that follows through the
end of paragraph (2) and inserting the following:
``(h)(1) Any provider of health care services or supplies
that is the subject of an adverse determination by the Office
under this section shall be entitled to reasonable notice and
an opportunity to request a hearing of record, and to
judicial review as provided in this subsection after the
Office renders a final decision. The Office shall grant a
request for a hearing upon a showing that due process rights
have not previously been afforded with respect to any finding
of fact which is relied upon as a cause for an adverse
determination under this section. Such hearing shall be
conducted without regard to subchapter II of chapter 5 and
chapter 7 of this title by a hearing officer who shall be
designated by the Director of the Office and who shall not
otherwise have been involved in the adverse determination
being appealed. A request for a hearing under this subsection
must be filed within such period and in accordance with such
procedures as the Office shall prescribe by regulation.
``(2) Any provider adversely affected by a final decision
under paragraph (1) made after a hearing to which such
provider was a party may seek review of such decision in the
United States District Court for the District of Columbia or
for the district in which the plaintiff resides or has his
principal place of business by filing a notice of appeal in
such court within 60 days from the date the decision is
issued and simultaneously sending
[[Page H11559]]
copies of such notice by certified mail to the Director of
the Office and to the Attorney General. In answer to the
appeal, the Director of the Office shall promptly file in
such court a certified copy of the transcript of the record,
if the Office conducted a hearing, and other evidence upon
which the findings and decision complained of are based. The
court shall have power to enter, upon the pleadings and
evidence of record, a judgment affirming, modifying, or
setting aside, in whole or in part, the decision of the
Office, with or without remanding the cause for a rehearing.
The district court shall not set aside or remand the decision
of the Office unless there is not substantial evidence on the
record, taken as a whole, to support the findings by the
Office of a cause for action under this section or unless
action taken by the Office constitutes an abuse of
discretion.''; and
(8) in subsection (i), as so redesignated by paragraph
(3)--
(A) by striking ``subsection (c)'' and inserting
``subsection (d)''; and
(B) by adding at the end the following: ``The amount of a
penalty or assessment as finally determined by the Office, or
other amount the Office may agree to in compromise, may be
deducted from any sum then or later owing by the United
States to the party against whom the penalty or assessment
has been levied.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section shall take effect on the date of the enactment of
this Act.
(2) Exceptions.--(A) Paragraphs (2) and (4) of section
8902a(c) of title 5, United States Code, as amended by
subsection (a), shall apply only to the extent that the
misconduct which is the basis for debarment thereunder occurs
after the date of the enactment of this Act.
(B) Section 8902a(d)(1)(B) of title 5, United States Code,
as amended by subsection (a), shall apply only with respect
to charges which violate section 8904(b) of such title 5 for
items and services furnished after the date of the enactment
of this Act.
(C) Section 8902a(g)(3) of title 5, United States Code, as
amended by subsection (a), shall apply only with respect to
debarments based on convictions occurring after the date of
the enactment of this Act.
SEC. 704. EXTENSION OF CERTAIN PROCEDURAL AND APPEAL RIGHTS
TO CERTAIN PERSONNEL OF THE FEDERAL BUREAU OF
INVESTIGATION.
(a) In General.--Section 7511(b)(8) of title 5, United
States Code, is amended by striking ``the Federal Bureau of
Investigation,''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to any personnel action taking
effect after the end of the 45-day period beginning on the
date of the enactment of this Act.
SEC. 705. CONVERSION OF CERTAIN EXCEPTED SERVICE POSITIONS IN
THE UNITED STATES FIRE ADMINISTRATION TO
COMPETITIVE SERVICE 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.
SEC. 706. ELIGIBILITY FOR CERTAIN SURVIVOR ANNUITY BENEFITS.
For the purpose of determining eligibility for survivor
annuity benefits for a former spouse under section 8341 of
title 5, United States Code, an application of any former
spouse shall be approved if--
(1) the annuitant is deceased;
(2) the former spouse was living as of January 1, 1992;
(3) the former spouse has not received Social Security
benefits based on eligibility as the spouse of the annuitant;
(4) such application was filed on or after January 1, 1989;
(5) the annuitant rendered at least 25 years of creditable
service to the Federal Government;
(6) at the time of the annuitant's retirement, the
annuitant and the former spouse had been married at least 25
years;
(7) at the time of the annuitant's retirement, the
annuitant designated the former spouse to receive survivor
annuity benefits;
(8) the annuitant and the former spouse were divorced prior
to September 14, 1978, and after the annuitant retired;
(9) neither at the time of the divorce nor at any time
thereafter was a joint waiver of survivor annuity benefits
executed between the annuitant and the former spouse;
(10) the divorce decree was silent as to survivor annuity
benefits or designated the former spouse to receive survivor
annuity benefits;
(11) subsequent to the divorce of the annuitant and the
former spouse, the annuitant advised the Office of Personnel
Management of the divorce;
(12) neither the annuitant nor the former spouse married
any other individual after their divorce from each other;
(13) no direct notice outlining or defining the former
spouse's survivor annuity benefits election rights was
delivered to the former spouse by the Office of Personnel
Management; and
(14) the former spouse has exhausted all judicial remedies
up to and including remedies available through the United
States Court of Appeals.
AMENDMENT IN THE NATURE OF A SUBSTITUTE OFFERED BY MR. MICA
Mr. MICA. Mr. Speaker, I offer an amendment in the nature of a
substitute.
The Clerk read as follows.
Amendment in the nature of a substitute offered by Mr.
Mica: Strike out all after the enacting clause and insert in
lieu thereof:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Omnibus
Civil Service Reform Act of 1996''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--DEMONSTRATION PROJECTS
Sec. 101. Demonstration projects.
TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT
Sec. 201. No appeal of denial of periodic step-increases.
Sec. 202. Performance appraisals.
Sec. 203. Amendments to incentive awards authority.
Sec. 204. Due process rights of managers under negotiated grievance
procedures.
Sec. 205. Collection and reporting of training information.
TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER
BENEFITS
Sec. 301. Loans under the Thrift Savings Plan for furloughed employees.
Sec. 302. Domestic relations orders.
Sec. 303. Unreduced additional optional life insurance.
TITLE IV--REORGANIZATION FLEXIBILITY
Sec. 401. Voluntary reductions in force.
Sec. 402. Nonreimbursable details to Federal agencies before a
reduction in force.
TITLE V--SOFT-LANDING PROVISIONS
Sec. 501. Temporary continuation of Federal employees' life insurance.
Sec. 502. Continued eligibility for health insurance.
Sec. 503. Job placement and counseling services.
Sec. 504. Education and retraining incentives.
TITLE VI--MISCELLANEOUS
Sec. 601. Reimbursements relating to professional liability insurance.
Sec. 602. Employment rights following conversion to contract.
Sec. 603. Debarment of health care providers found to have engaged in
fraudulent practices.
Sec. 604. Consistent coverage for individuals enrolled in a health plan
administered by the Federal banking agencies.
Sec. 605. Amendment to Public Law 104-134.
Sec. 606. Miscellaneous amendments relating to the health benefits
program for Federal employees.
Sec. 607. Pay for certain positions formerly classified at GS-18.
Sec. 608. Repeal of section 1307 of title 5 of the United States Code.
Sec. 609. Extension of certain procedural and appeal rights to certain
personnel of the Federal Bureau of Investigation.
TITLE I--DEMONSTRATION PROJECTS
SEC. 101. DEMONSTRATION PROJECTS.
(a) Definitions.--Paragraph (1) of section 4701(a) of title
5, United States Code, is amended by striking subparagraph
(A) and by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
[[Page H11560]]
(b) Pre-Implementation Procedures.--Subsection (b) of
section 4703 of title 5, United States Code, is amended to
read as follows:
``(b) Before an agency or the Office may conduct or enter
into any agreement or contract to conduct a demonstration
project, the Office--
``(1) shall develop or approve a plan for such project
which identifies--
``(A) the purposes of the project;
``(B) the methodology;
``(C) the duration; and
``(D) the methodology and criteria for evaluation;
``(2) shall publish the plan in the Federal Register;
``(3) may solicit comments from the public and interested
parties in such manner as the Office considers appropriate;
``(4) shall obtain approval from each agency involved of
the final version of the plan; and
``(5) shall provide notification of the proposed project,
at least 30 days in advance of the date any project proposed
under this section is to take effect--
``(A) to employees who are likely to be affected by the
project; and
``(B) to each House of the Congress.''.
(c) Nonwaivable Provisions.--Section 4703(c) of title 5,
United States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) any provision of subchapter V of chapter 63 or
subpart G of part III of this title;''; and
(2) by striking paragraph (3) and inserting the following:
``(3) any provision of chapter 15 or subchapter II or III
of chapter 73 of this title;''.
(d) Limitations.--Subsection (d) of section 4703 of title
5, United States Code, is amended to read as follows:
``(d)(1) Each demonstration project shall terminate before
the end of the 5-year period beginning on the date on which
the project takes effect, except that the project may
continue for a maximum of 2 years beyond the date to the
extent necessary to validate the results of the project.
``(2)(A) Not more than 15 active demonstration projects may
be in effect at any time, and of the projects in effect at
any time, not more than 5 may involve 5,000 or more
individuals each.
``(B) Individuals in a control group necessary to validate
the results of a project shall not, for purposes of any
determination under subparagraph (A), be considered to be
involved in such project.''.
(e) Evaluations.--Subsection (h) of section 4703 of title
5, United States Code, is amended by adding at the end the
following: ``The Office may, with respect to a demonstration
project conducted by another agency, require that the
preceding sentence be carried out by such other agency.''.
(f) Provisions for Termination of Project or Making It
Permanent.--Section 4703 of title 5, United States Code, is
amended--
(1) in subsection (i) by inserting ``by the Office'' after
``undertaken''; and
(2) by adding at the end the following:
``(j)(1) If the Office determines that termination of a
demonstration project (whether under subsection (e) or
otherwise) would result in the inequitable treatment of
employees who participated in the project, the Office shall
take such corrective action as is within its authority. If
the Office determines that legislation is necessary to
correct an inequity, it shall submit an appropriate
legislative proposal to both Houses of Congress.
``(2) If the Office determines that a demonstration project
should be made permanent, it shall submit an appropriate
legislative proposal to both Houses of Congress.''.
TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT
SEC. 201. NO APPEAL OF DENIAL OF PERIODIC STEP-INCREASES.
(a) In General.--Section 5335(c) of title 5, United States
Code, is amended--
(1) by striking the second sentence;
(2) in the third sentence by striking ``or appeal''; and
(3) in the last sentence by striking ``and the entitlement
of the employee to appeal to the Board do not apply'' and
inserting ``does not apply''.
(b) Performance Ratings.--Section 5335 of title 5, United
States Code, as amended by subsection (a), is further
amended--
(1) in subsection (a)(B) by striking ``work of the employee
is of an acceptable level of competence'' and inserting
``performance of the employee is at least fully successful'';
(2) in subsection (c)--
(A) in the first sentence by striking ``work of an employee
is not of an acceptable level of competence,'' and inserting
``performance of an employee is not at least fully
successful,''; and
(B) in the last sentence by striking ``acceptable level of
competence'' and inserting ``fully successful work
performance''; and
(3) by adding at the end the following:
``(g) For purposes of this section, the term `fully
successful' denotes work performance that satisfies the
requirements of section 351.504(d)(3)(D) of title 5 of the
Code of Federal Regulations (as deemed to be amended by
section 3502(g)(2)(B)).''.
SEC. 202. PERFORMANCE APPRAISALS.
(a) In General.--Section 4302 of title 5, United States
Code, is amended--
(1) in subsection (b) by striking paragraphs (5) and (6)
and inserting the following:
``(5) assisting employees in improving unacceptable
performance, except in circumstances described in subsection
(c); and
``(6) reassigning, reducing in grade, removing, or taking
other appropriate action against employees whose performance
is unacceptable.''; and
(2) by adding at the end the following:
``(c) Upon notification of unacceptable performance, an
employee shall be afforded an opportunity to demonstrate
acceptable performance before a reduction in grade or removal
may be proposed under section 4303 based on such performance,
except that an employee so afforded such an opportunity shall
not be afforded any further opportunity to demonstrate
acceptable performance if the employee's performance again is
determined to be at an unacceptable level.''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), this section and
the amendments made by this section shall take effect 180
days after the date of the enactment of this Act.
(2) Exception.--The amendments made by this section shall
not apply in the case of any proposed action as to which the
employee receives advance written notice, in accordance with
section 4303(b)(1)(A) of title 5, United States Code, before
the effective date of this section.
SEC. 203. AMENDMENTS TO INCENTIVE AWARDS AUTHORITY.
Chapter 45 of title 5, United States Code, is amended--
(1) by amending section 4501 to read as follows:
``Sec. 4501. Definitions
``For the purpose of this subchapter--
``(1) the term `agency' means--
``(A) an Executive agency;
``(B) the Library of Congress;
``(C) the Office of the Architect of the Capitol;
``(D) the Botanic Garden;
``(E) the Government Printing Office; and
``(F) the United States Sentencing Commission;
but does not include--
``(i) the Tennessee Valley Authority; or
``(ii) the Central Bank for Cooperatives;
``(2) the term `employee' means an employee as defined by
section 2105; and
``(3) the term `Government' means the Government of the
United States.'';
(2) by amending section 4503 to read as follows:
``Sec. 4503. Agency awards
``(a) The head of an agency may pay a cash award to, and
incur necessary expense for the honorary recognition of, an
employee who--
``(1) by his suggestion, invention, superior
accomplishment, or other personal effort, contributes to the
efficiency, economy, or other improvement of Government
operations or achieves a significant reduction in paperwork;
or
``(2) performs a special act or service in the public
interest in connection with or related to his official
employment.
``(b)(1) If the criteria under paragraph (1) or (2) of
subsection (a) are met on the basis of the suggestion,
invention, superior accomplishment, act, service, or other
meritorious effort of a group of employees collectively, and
if the circumstances so warrant (such as by reason of the
infeasibility of determining the relative role or
contribution assignable to each employee separately),
authority under subsection (a) may be exercised--
``(A) based on the collective efforts of the group; and
``(B) with respect to each member of such group.
``(2) The amount awarded to each member of a group under
this subsection--
``(A) shall be the same for all members of such group,
except that such amount may be prorated to reflect
differences in the period of time during which an individual
was a member of the group; and
``(B) may not exceed the maximum cash award allowable under
subsection (a) or (b) of section 4502, as applicable.''; and
(3) in subsection (a)(1) of section 4505a by striking ``at
the fully successful level or higher'' and inserting ``higher
than the fully successful level''.
SEC. 204. DUE PROCESS RIGHTS OF MANAGERS UNDER NEGOTIATED
GRIEVANCE PROCEDURES.
(a) In General.--Paragraph (2) of section 7121(b) of title
5, United States Code, is amended to read as follows:
``(2) The provisions of a negotiated grievance procedure
providing for binding arbitration in accordance with
paragraph (1)(C)(iii) shall, if or to the extent that an
alleged prohibited personnel practice is involved, allow the
arbitrator to order a stay of any personnel action in a
manner similar to the manner described in section 1221(c)
with respect to the Merit Systems Protection Board.''.
(b) Effective Date.--The amendment made by subsection (a)--
(1) shall take effect on the date of the enactment of this
Act; and
(2) shall apply with respect to orders issued on or after
the date of the enactment of this Act, notwithstanding the
provisions of any collective bargaining agreement.
SEC. 205. COLLECTION AND REPORTING OF TRAINING INFORMATION.
(a) Training Within Government.--The Office of Personnel
Management shall collect information concerning training
programs, plans, and methods utilized by agencies of the
Government and submit a report to the Congress on this
activity on an annual basis.
(b) Training Outside of Government.--The Office of
Personnel Management, to the
[[Page H11561]]
extent it considers appropriate in the public interest, may
collect information concerning training programs, plans, and
methods utilized outside the Government. The Office, on
request, may make such information available to an agency and
to Congress.
TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER
BENEFITS
SEC. 301. LOANS UNDER THE THRIFT SAVINGS PLAN FOR FURLOUGHED
EMPLOYEES.
Section 8433(g) of title 5, United States Code, is amended
by adding at the end the following:
``(6) An employee who has been furloughed due to a lapse in
appropriations may not be denied a loan under this subsection
solely because such employee is not in a pay status.''.
SEC. 302. DOMESTIC RELATIONS ORDERS.
(a) In General.--Section 8705 of title 5, United States
Code, is amended--
(1) in subsection (a) by striking ``(a) The'' and inserting
``(a) Except as provided in subsection (e), the''; and
(2) by adding at the end the following:
``(e)(1) Any amount which would otherwise be paid to a
person determined under the order of precedence named by
subsection (a) shall be paid (in whole or in part) by the
Office to another person if and to the extent expressly
provided for in the terms of any court decree of divorce,
annulment, or legal separation, or the terms of any court
order or court-approved property settlement agreement
incident to any court decree of divorce, annulment, or legal
separation.
``(2) For purposes of this subsection, a decree, order, or
agreement referred to in paragraph (1) shall not be effective
unless it is received, before the date of the covered
employee's death, by the employing agency or, if the employee
has separated from service, by the Office.
``(3) A designation under this subsection with respect to
any person may not be changed except--
``(A) with the written consent of such person, if received
as described in paragraph (2); or
``(B) by modification of the decree, order, or agreement,
as the case may be, if received as described in paragraph
(2).
``(4) The Office shall prescribe any regulations necessary
to carry out this subsection, including regulations for the
application of this subsection in the event that 2 or more
decrees, orders, or agreements, are received with respect to
the same amount.''.
(b) Directed Assignment.--Section 8706(e) of title 5,
United States Code, is amended--
(1) by striking ``(e)'' and inserting ``(e)(1)''; and
(2) by adding at the end the following:
``(2) A court decree of divorce, annulment, or legal
separation, or the terms of a court-approved property
settlement agreement incidental to any court decree of
divorce, annulment, or legal separation, may direct that an
insured employee or former employee make an irrevocable
assignment of the employee's or former employee's incidents
of ownership in insurance under this chapter (if there is no
previous assignment) to the person specified in the court
order or court-approved property settlement agreement.''.
SEC. 303. UNREDUCED ADDITIONAL OPTIONAL LIFE INSURANCE.
(a) In General.--Section 8714b of title 5, United States
Code, is amended--
(1) in subsection (c)--
(A) by striking the last 2 sentences of paragraph (2); and
(B) by adding at the end the following:
``(3) The amount of additional optional insurance continued
under paragraph (2) shall be continued, with or without
reduction, in accordance with the employee's written election
at the time eligibility to continue insurance during
retirement or receipt of compensation arises, as follows:
``(A) The employee may elect to have withholdings cease in
accordance with subsection (d), in which case--
``(i) the amount of additional optional insurance continued
under paragraph (2) shall be reduced each month by 2 percent
effective at the beginning of the second calendar month after
the date the employee becomes 65 years of age and is retired
or is in receipt of compensation; and
``(ii) the reduction under clause (i) shall continue for 50
months at which time the insurance shall stop.
``(B) The employee may, instead of the option under
subparagraph (A), elect to have the full cost of additional
optional insurance continue to be withheld from such
employee's annuity or compensation on and after the date such
withholdings would otherwise cease pursuant to an election
under subparagraph (A), in which case the amount of
additional optional insurance continued under paragraph (2)
shall not be reduced, subject to paragraph (4).
``(C) An employee who does not make any election under the
preceding provisions of this paragraph shall be treated as if
such employee had made an election under subparagraph (A).
``(4) If an employee makes an election under paragraph
(3)(B), that individual may subsequently cancel such
election, in which case additional optional insurance shall
be determined as if the individual had originally made an
election under paragraph (3)(A).''; and
(2) in the second sentence of subsection (d)(1) by
inserting ``if insurance is continued as provided in
subparagraph (A) of paragraph (3),'' after ``except that,''.
(b) Effective Date.--The amendments made by this section
shall take effect on the 120th day after the date of the
enactment of this Act and shall apply to employees who become
eligible, on or after such 120th day, to continue additional
optional insurance during retirement or receipt of
compensation.
TITLE IV--REORGANIZATION FLEXIBILITY
SEC. 401. VOLUNTARY REDUCTIONS IN FORCE.
Section 3502(f) of title 5, United States Code, is amended
to read as follows:
``(f)(1) The head of an Executive agency or military
department may, in accordance with regulations prescribed by
the Office of Personnel Management--
``(A) separate from service any employee who volunteers to
be separated under this subparagraph even though the employee
is not otherwise subject to separation due to a reduction in
force; and
``(B) for each employee voluntarily separated under
subparagraph (A), retain an employee in a similar position
who would otherwise be separated due to a reduction in force.
``(2) The separation of an employee under paragraph (1)(A)
shall be treated as an involuntary separation due to a
reduction in force, except for purposes of priority placement
programs and advance notice.
``(3) An employee with critical knowledge and skills (as
defined by the head of the Executive agency or military
department concerned) may not participate in a voluntary
separation under paragraph (1)(A) if the agency or department
head concerned determines that such participation would
impair the performance of the mission of the agency or
department (as applicable).
``(4) The regulations prescribed under this section shall
incorporate the authority provided in this subsection.
``(5) No authority under paragraph (1) may be exercised
after September 30, 2001.''.
SEC. 402. NONREIMBURSABLE DETAILS TO FEDERAL AGENCIES BEFORE
A REDUCTION IN FORCE.
(a) In General.--Section 3341 of title 5, United States
Code, is amended to read as follows:
``Sec. 3341. Details; within Executive agencies and military
departments; employees affected by reduction in force
``(a) The head of an Executive agency or military
department may detail employees, except those required by law
to be engaged exclusively in some specific work, among the
bureaus and offices of the agency or department.
``(b) The head of an Executive agency or military
department may detail to duties in the same or another agency
or department, on a nonreimbursable basis, an employee who
has been identified by the employing agency as likely to be
separated from the Federal service by reduction in force or
who has received a specific notice of separation by reduction
in force.
``(c)(1) Details under subsection (a)--
``(A) may not be for periods exceeding 120 days; and
``(B) may be renewed (1 or more times) by written order of
the head of the agency or department, in each particular
case, for periods not exceeding 120 days each.
``(2) Details under subsection (b)--
``(A) may not be for periods exceeding 90 days; and
``(B) may not be renewed.
``(d) The 120-day limitation under subsection (c)(1) for
details and renewals of details does not apply to the
Department of Defense in the case of a detail--
``(1) made in connection with the closure or realignment of
a military installation pursuant to a base closure law or an
organizational restructuring of the Department as part of a
reduction in the size of the armed forces or the civilian
workforce of the Department; and
``(2) in which the position to which the employee is
detailed is eliminated on or before the date of the closure,
realignment, or restructuring.
``(e) For purposes of this section--
``(1) the term `base closure law' means--
``(A) section 2687 of title 10;
``(B) title II of the Defense Authorization Amendments and
Base Closure and Realignment Act; and
``(C) the Defense Base Closure and Realignment Act of 1990;
and
``(2) the term `military installation'--
``(A) in the case of an installation covered by section
2687 of title 10, has the meaning given such term in
subsection (e)(1) of such section;
``(B) in the case of an installation covered by the Act
referred to in subparagraph (B) of paragraph (1), has the
meaning given such term in section 209(6) of such Act; and
``(C) in the case of an installation covered by the Act
referred to in subparagraph (C) of paragraph (1), has the
meaning given such term in section 2910(4) of such Act.''.
(b) Clerical Amendment.--The table of sections for chapter
33 of title 5, United States Code, is amended by striking the
item relating to section 3341 and inserting the following:
``3341. Details; within Executive agencies and military departments;
employees affected by reduction in force.''.
(c) Effective Date.--The amendments made by this section
shall take effect 30 days after the date of the enactment of
this Act.
[[Page H11562]]
TITLE V--SOFT-LANDING PROVISIONS
SEC. 501. TEMPORARY CONTINUATION OF FEDERAL EMPLOYEES' LIFE
INSURANCE.
Section 8706 of title 5, United States Code, is amended by
adding at the end the following:
``(g)(1) Notwithstanding subsections (a) and (b) of this
section, an employee whose coverage under this chapter would
otherwise terminate due to a separation described in
paragraph (3) shall be eligible to continue basic insurance
coverage described in section 8704 in accordance with this
subsection and regulations the Office may prescribe, if the
employee arranges to pay currently into the Employees Life
Insurance Fund, through the former employing agency or, if an
annuitant, through the responsible retirement system, an
amount equal to the sum of--
``(A) both employee and agency contributions which would be
payable if separation had not occurred; plus
``(B) an amount, determined under regulations prescribed by
the Office, to cover necessary administrative expenses, but
not to exceed 2 percent of the total amount under
subparagraph (A).
``(2) Continued coverage under this subsection may not
extend beyond the date which is 18 months after the effective
date of the separation which entitles a former employee to
coverage under this subsection. Termination of continued
coverage under this subsection shall be subject to provision
for temporary extension of life insurance coverage and for
conversion to an individual policy of life insurance as
provided by subsection (a). If an eligible employee does not
make an election for purposes of this subsection, the
employee's insurance will terminate as provided by subsection
(a).
``(3)(A) This subsection shall apply to an employee who, on
or after the date of enactment of this subsection and before
the applicable date under subparagraph (B)--
``(i) is involuntarily separated from a position due to a
reduction in force, or separates voluntarily from a position
the employing agency determines is a `surplus position' as
defined by section 8905(d)(4)(C); and
``(ii) is insured for basic insurance under this chapter on
the date of separation.
``(B) The applicable date under this subparagraph is
October 1, 2001, except that, for purposes of any involuntary
separation referred to in subparagraph (A) with respect to
which appropriate specific notice is afforded to the affected
employee before October 1, 2001, the applicable date under
this subparagraph is February 1, 2002.''.
SEC. 502. CONTINUED ELIGIBILITY FOR HEALTH INSURANCE.
(a) Continued Eligibility After Retirement.--Section 8905
of title 5, United States Code, is amended--
(1) in the first sentence of subsection (b) by striking
``An'' and inserting ``Subject to subsection (g), an''; and
(2) by adding at the end the following:
``(g)(1) The Office shall waive the requirements for
continued enrollment under subsection (b) in the case of any
individual who, on or after the date of the enactment of this
subsection and before the applicable date under paragraph
(2)--
``(A) is involuntarily separated from a position, or
voluntarily separated from a surplus position, in or under an
Executive agency due to a reduction in force,
``(B) based on the separation referred to in subparagraph
(A), retires on an immediate annuity under subchapter III of
chapter 83 or subchapter II of chapter 84, and
``(C) is enrolled in a health benefits plan under this
chapter as an employee immediately before retirement.
``(2) The applicable date under this paragraph is October
1, 2001, except that, for purposes of any involuntary
separation referred to in paragraph (1)(A) with respect to
which appropriate specific notice is afforded to the affected
employee before October 1, 2001, the applicable date under
this paragraph is February 1, 2002.
``(3) For purposes of this subsection, the term `surplus
position', with respect to an agency, means any position
determined in accordance with regulations under section
8905a(d)(4)(C) for such agency.''.
(b) Temporary Continued Eligibility After Being
Involuntarily Separated.--Section 8905a(d)(4) of title 5,
United States Code, is amended--
(1) in subparagraph (A) by striking ``the Department of
Defense'' and inserting ``an Executive agency''; and
(2) by amending subparagraph (C) to read as follows:
``(C) For purposes of this paragraph, the term `surplus
position' means a position that, as determined under
regulations prescribed by the head of the agency involved, is
identified during planning for a reduction in force as being
no longer required and is designated for elimination during
the reduction in force.''.
SEC. 503. JOB PLACEMENT AND COUNSELING SERVICES.
(a) Authority for Services.--The head of each Executive
agency may establish a program to provide job placement and
counseling services to current and former employees.
(b) Types of Services Authorized.--A program established
under this section may include such services as--
(1) career and personal counseling;
(2) training in job search skills; and
(3) job placement assistance, including assistance provided
through cooperative arrangements with State and local
employment service offices.
(c) Eligibility for Services.--Services authorized by this
section may be provided to--
(1) current employees of the agency or, with the approval
of such other agency, any other agency; and
(2) employees of the agency or, with the approval of such
other agency, any other agency who have been separated for
less than 1 year, if the separation was not a removal for
cause on charges of misconduct or delinquency.
(d) Reimbursement for Costs.--The costs of services
provided to current or former employees of another agency
shall be reimbursed by that agency.
SEC. 504. EDUCATION AND RETRAINING INCENTIVES.
(a) Non-Federal Employment Incentive Payments.--
(1) Definitions.--For purposes of this subsection--
(A) the term ``eligible employee'' means an employee who is
involuntarily separated from a position, or voluntarily
separated from a surplus position, in or under an Executive
agency due to a reduction in force, except that such term
does not include an employee who, at the time of separation,
meets the age and service requirements for an immediate
annuity under subchapter III of chapter 83 or chapter 84 of
title 5, United States Code, other than under section 8336(d)
or 8414(b) of such title;
(B) the term ``non-Federal employer'' means an employer
other than the Government of the United States or any agency
or other instrumentality thereof;
(C) the term ``Executive agency'' has the meaning given
such term by section 105 of title 5, United States Code; and
(D) the term ``surplus position'' has the meaning given
such term by section 8905(d)(4)(C) of title 5, United States
Code.
(2) Authority.--The head of an Executive agency may pay
retraining and relocation incentive payments, in accordance
with this subsection, in order to facilitate the reemployment
of eligible employees who are separated from such agency.
(3) Retraining incentive payment.--
(A) Agreement.--The head of an Executive agency may enter
into an agreement with a non-Federal employer under which the
non-Federal employer agrees--
(i) to employ an individual referred to in paragraph (2)
for at least 12 months for a salary which is mutually
agreeable to the employer and such individual; and
(ii) to certify to the agency head any costs incurred by
the employer for any necessary training provided to such
individual in connection with the employment by such
employer.
(B) Payment of retraining incentive payment.--The agency
head shall pay a retraining incentive payment to the non-
Federal employer upon the employee's completion of 12 months
of continuous employment by that employer. The agency head
shall prescribe the amount of the incentive payment.
(C) Proration rule.--The agency head shall pay a prorated
amount of the full retraining incentive payment to the non-
Federal employer for an employee who does not remain employed
by the non-Federal employer for at least 12 months, but only
if the employee remains so employed for at least 6 months.
(D) Limitation.--In no event may the amount of the
retraining incentive payment paid for the training of any
individual exceed the amount certified for such individual
under subparagraph (A), subject to subsection (c).
(4) Relocation incentive payment.--The head of an agency
may pay a relocation incentive payment to an eligible
employee if it is necessary for the employee to relocate in
order to commence employment with a non-Federal employer.
Subject to subsection (e), the amount of the incentive
payment shall not exceed the amount that would be payable for
travel, transportation, and subsistence expenses under
subchapter II of chapter 57 of title 5, United States Code,
including any reimbursement authorized under section 5724b of
such title, to a Federal employee who transfers between the
same locations as the individual to whom the incentive
payment is payable.
(5) Duration.--No incentive payment may be paid for
training or relocation commencing after June 30, 2002.
(6) Source.--An incentive payment under this subsection
shall be payable from appropriations or other funds available
to the agency for purposes of training (within the meaning of
section 4101(4) of title 5, United States Code).
(b) Educational Assistance.--
(1) Definitions.--For purposes of this subsection--
(A) the term ``eligible employee'' means an eligible
employee, within the meaning of subsection (a), who --
(i) is employed full-time on a permanent basis;
(ii) has completed at least 3 years of current continuous
service in any Executive agency or agencies; and
(iii) is admitted to an institution of higher education
within 1 year after separation;
(B) the term ``Executive agency'' has the meaning given
such term by section 105 of title 5, United States Code;
(C) the term ``educational assistance'' means payments for
educational assistance as provided in section 127(c)(1) of
the Internal Revenue Code of 1986 (26 U.S.C. 127(c)(1)); and
[[Page H11563]]
(D) the term ``institution of higher education'' has the
meaning given such term by section 1201(a) of the Higher
Education Act of 1965 (20 U.S.C. 1141(a)).
(2) Authority.--Under regulations prescribed by the Office
of Personnel Management, and subject to the limitations under
subsection (c), the head of an Executive agency may, in his
or her discretion, provide educational assistance under this
subsection to an eligible employee for a program of education
at an institution of higher education after the separation of
the employee.
(3) Duration.--No educational assistance under this
subsection may be paid later than 10 years after the
separation of the eligible employee.
(4) Source.--Educational assistance payments shall be
payable from appropriations or other funds which would have
been used to pay the salary of the eligible employee if the
employee had not separated.
(5) Regulations.--The Office of Personnel Management shall
prescribe regulations for the administration of this
subsection. Such regulations shall provide that educational
assistance payments shall be limited to amounts necessary for
current tuition and fees only.
(c) Limitations.--
(1) Aggregate limitation.--No incentive payment or
educational assistance payment may be paid under this section
to or on behalf of any individual to the extent that such
amount would cause the aggregate amount otherwise paid or
payable under this section, to or on behalf of such
individual, to exceed $10,000.
(2) Limitation relating to educational assistance.--The
total amount paid under subsection (b) to any individual--
(A) may not exceed $6,000 if the individual has at least 3
but less than 4 years of qualifying service; and
(B) may not exceed $8,000 if the individual has at least 4
but less than 5 years of qualifying service.
(3) Qualifying service.--For purposes of paragraph (2), the
term ``qualifying service'' means service performed as an
employee, within the meaning of section 2105 of title 5,
United States Code, on a permanent full-time or permanent
part-time basis (counting part-time service on a prorated
basis).
TITLE VI--MISCELLANEOUS
SEC. 601. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY
INSURANCE.
(a) Authority.--Notwithstanding any other provision of law,
any amounts appropriated, for fiscal year 1997 or any fiscal
year thereafter, for salaries and expenses of Government
employees may be used to reimburse any qualified employee for
not to exceed one-half the costs incurred by such employee
for professional liability insurance. A payment under this
section shall be contingent upon the submission of such
information or documentation as the employing agency may
require.
(b) Qualified Employee.--For purposes of this section, the
term ``qualified employee'' means--
(1) an agency employee whose position is that of a law
enforcement officer;
(2) an agency employee whose position is that of a
supervisor or management official; or
(3) such other employee as the head of the agency considers
appropriate
(c) Definitions.--For purposes of this section--
(1) the term ``agency'' means an Executive agency, as
defined by section 105 of title 5, United States Code;
(2) the term ``law enforcement officer'' means an employee,
the duties of whose position are primarily the investigation,
apprehension, prosecution, or detention of individuals
suspected or convicted of offenses against the criminal laws
of the United States, including any law enforcement officer
under section 8331(20) or 8401(17) of such title 5;
(3) the terms ``supervisor'' and ``management official''
have the respective meanings given them by section 7103(a) of
such title 5; and
(4) the term ``professional liability insurance'' means
insurance which provides coverage for--
(A) legal liability for damages due to injuries to other
persons, damage to their property, or other damage or loss to
such other persons (including the expenses of litigation and
settlement) resulting from or arising out of any tortious
act, error, or omission of the covered individual (whether
common law, statutory, or constitutional) while in the
performance of such individual's official duties as a
qualified employee; and
(B) the cost of legal representation for the covered
individual in connection with any administrative or judicial
proceeding (including any investigation or disciplinary
proceeding) relating to any act, error, or omission of the
covered individual while in the performance of such
individual's official duties as a qualified employee, and
other legal costs and fees relating to any such
administrative or judicial proceeding.
(d) Policy Limits.--
(1) In general.--Reimbursement under this section shall not
be available except in the case of any professional liability
insurance policy providing for--
(A) not to exceed $1,000,000 of coverage for legal
liability (as described in subsection (c)(4)(A)) per
occurrence per year; and
(B) not to exceed $100,000 of coverage for the cost of
legal representation (as described in subsection (c)(4)(B))
per occurrence per year.
(2) Adjustments.--The head of an agency may from time to
time adjust the respective dollar amount limitations
applicable under this subsection to the extent that the head
of such agency considers appropriate to reflect inflation.
SEC. 602. EMPLOYMENT RIGHTS FOLLOWING CONVERSION TO CONTRACT.
(a) In General.--An employee whose position is abolished
because an activity performed by an Executive agency (within
the meaning of section 105 of title 5, United States Code) is
converted to contract shall receive from the contractor an
offer in good faith of a right of first refusal of employment
under the contract for a position for which the employee is
deemed qualified based upon previous knowledge, skills,
abilities, and experience. The contractor shall not offer
employment under the contract to any person prior to having
complied fully with this obligation, except as provided in
subsection (b), or unless no employee whose position is
abolished because such activity has been converted to
contract can demonstrate appropriate qualifications for the
position.
(b) Exception.--Notwithstanding the contractor's obligation
under subsection (a), the contractor is not required to offer
a right of first refusal to any employee who, in the 12
months preceding conversion to contract, has been the subject
of an adverse personnel action related to misconduct or has
received a less than fully successful performance rating.
(c) Limitation.--No employee shall have a right to more
than 1 offer under this section based on any particular
separation due to the conversion of an activity to contract.
(d) Regulations.--Regulations to carry out this section may
be prescribed by the President.
SEC. 603. DEBARMENT OF HEALTH CARE PROVIDERS FOUND TO HAVE
ENGAGED IN FRAUDULENT PRACTICES.
(a) In General.--Section 8902a of title 5, United States
Code, is amended--
(1) in subsection (a)(2)(A) by striking ``subsection (b) or
(c)'' and inserting ``subsection (b), (c), or (d)'';
(2) in subsection (b)--
(A) by striking ``may'' and inserting ``shall'' in the
matter before paragraph (1); and
(B) by amending paragraph (5) to read as follows:
``(5) Any provider that is currently suspended or excluded
from participation under any program of the Federal
Government involving procurement or nonprocurement
activities.'';
(3) by redesignating subsections (c) through (i) as
subsections (d) through (j), respectively, and by inserting
after subsection (b) the following:
``(c) The Office may bar the following providers of health
care services from participating in the program under this
chapter:
``(1) Any provider--
``(A) whose license to provide health care services or
supplies has been revoked, suspended, restricted, or not
renewed, by a State licensing authority for reasons relating
to the provider's professional competence, professional
performance, or financial integrity; or
``(B) that surrendered such a license while a formal
disciplinary proceeding was pending before such an authority,
if the proceeding concerned the provider's professional
competence, professional performance, or financial integrity.
``(2) Any provider that is an entity directly or indirectly
owned, or with a 5 percent or more controlling interest, by
an individual who is convicted of any offense described in
subsection (b), against whom a civil monetary penalty has
been assessed under subsection (d), or who has been excluded
from participation under this chapter.
``(3) Any provider that the Office determines, in
connection with claims presented under this chapter, has
charged for health care services or supplies in an amount
substantially in excess of such provider's customary charges
for such services or supplies (unless the Office finds there
is good cause for such charge), or charged for health care
services or supplies which are substantially in excess of the
needs of the covered individual or which are of a quality
that fails to meet professionally recognized standards for
such services or supplies.
``(4) Any provider that the Office determines has committed
acts described in subsection (d).'';
(4) in subsection (d), as so redesignated by paragraph (3),
by amending paragraph (1) to read as follows:
``(1) in connection with claims presented under this
chapter, that a provider has charged for a health care
service or supply which the provider knows or should have
known involves--
``(A) an item or service not provided as claimed;
``(B) charges in violation of applicable charge limitations
under section 8904(b); or
``(C) an item or service furnished during a period in which
the provider was excluded from participation under this
chapter pursuant to a determination by the Office under this
section, other than as permitted under subsection
(g)(2)(B);'';
(5) in subsection (f), as so redesignated by paragraph (3),
by inserting ``(where such debarment is not mandatory)''
after ``under this section'' the first place it appears;
(6) in subsection (g), as so redesignated by paragraph
(3)--
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(A) by striking ``(g)(1)'' and all that follows through the
end of paragraph (1) and inserting the following:
``(g)(1)(A) Except as provided in subparagraph (B),
debarment of a provider under subsection (b) or (c) shall be
effective at such time and upon such reasonable notice to
such provider, and to carriers and covered individuals, as
shall be specified in regulations prescribed by the Office.
Any such provider that is excluded from participation may
request a hearing in accordance with subsection (h)(1).
``(B) Unless the Office determines that the health or
safety of individuals receiving health care services warrants
an earlier effective date, the Office shall not make a
determination adverse to a provider under subsection (c)(4)
or (d) until such provider has been given reasonable notice
and an opportunity for the determination to be made after a
hearing as provided in accordance with subsection (h)(1).'';
(B) in paragraph (3)--
(i) by inserting ``of debarment'' after ``notice''; and
(ii) by adding at the end the following: ``In the case of a
debarment under paragraphs (1) through (4) of subsection (b),
the minimum period of exclusion shall not be less than 3
years, except as provided in paragraph (4)(B)(ii).''; and
(C) in paragraph (4)(B)(i)(I) by striking ``subsection (b)
or (c)'' and inserting ``subsection (b), (c), or (d)'';
(7) in subsection (h), as so redesignated by paragraph (3),
by striking ``(h)(1)'' and all that follows through the end
of paragraph (2) and inserting the following:
``(h)(1) Any provider of health care services or supplies
that is the subject of an adverse determination by the Office
under this section shall be entitled to reasonable notice and
an opportunity to request a hearing of record, and to
judicial review as provided in this subsection after the
Office renders a final decision. The Office shall grant a
request for a hearing upon a showing that due process rights
have not previously been afforded with respect to any finding
of fact which is relied upon as a cause for an adverse
determination under this section. Such hearing shall be
conducted without regard to subchapter II of chapter 5 and
chapter 7 of this title by a hearing officer who shall be
designated by the Director of the Office and who shall not
otherwise have been involved in the adverse determination
being appealed. A request for a hearing under this subsection
must be filed within such period and in accordance with such
procedures as the Office shall prescribe by regulation.
``(2) Any provider adversely affected by a final decision
under paragraph (1) made after a hearing to which such
provider was a party may seek review of such decision in the
United States District Court for the District of Columbia or
for the district in which the plaintiff resides or has his
principal place of business by filing a notice of appeal in
such court within 60 days from the date the decision is
issued and simultaneously sending copies of such notice by
certified mail to the Director of the Office and to the
Attorney General. In answer to the appeal, the Director of
the Office shall promptly file in such court a certified copy
of the transcript of the record, if the Office conducted a
hearing, and other evidence upon which the findings and
decision complained of are based. The court shall have power
to enter, upon the pleadings and evidence of record, a
judgment affirming, modifying, or setting aside, in whole or
in part, the decision of the Office, with or without
remanding the cause for a rehearing. The district court shall
not set aside or remand the decision of the Office unless
there is not substantial evidence on the record, taken as a
whole, to support the findings by the Office of a cause for
action under this section or unless action taken by the
Office constitutes an abuse of discretion.''; and
(8) in subsection (i), as so redesignated by paragraph
(3)--
(A) by striking ``subsection (c)'' and inserting
``subsection (d)''; and
(B) by adding at the end the following: ``The amount of a
penalty or assessment as finally determined by the Office, or
other amount the Office may agree to in compromise, may be
deducted from any sum then or later owing by the United
States to the party against whom the penalty or assessment
has been levied.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section shall take effect on the date of the enactment of
this Act.
(2) Exceptions.--(A) Paragraphs (2) and (4) of section
8902a(c) of title 5, United States Code, as amended by
subsection (a), shall apply only to the extent that the
misconduct which is the basis for debarment thereunder occurs
after the date of the enactment of this Act.
(B) Section 8902a(d)(1)(B) of title 5, United States Code,
as amended by subsection (a), shall apply only with respect
to charges which violate section 8904(b) of such title 5 for
items and services furnished after the date of the enactment
of this Act.
(C) Section 8902a(g)(3) of title 5, United States Code, as
amended by subsection (a), shall apply only with respect to
debarments based on convictions occurring after the date of
the enactment of this Act.
SEC. 604. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A
HEALTH PLAN ADMINISTERED BY THE FEDERAL BANKING
AGENCIES.
Section 5 of the FEGLI Living Benefits Act (Public Law 103-
409; 108 Stat. 4232) is amended--
(1) by inserting ``and the Board of Governors of the
Federal Reserve System'' after ``Office of the Comptroller of
the Currency and the Office of Thrift Supervision'' each
place it appears;
(2) in subsection (a), by inserting ``or under a health
benefits plan not governed by chapter 89 of such title in
which employees and retirees of the Board of Governors of the
Federal Reserve System participated before January 4, 1997,''
after ``January 7, 1995,'';
(3) in subsection (b)--
(A) by inserting ``(in the case of the Comptroller of the
Currency and the Office of Thrift Supervision) or on January
4, 1997 (in the case of the Board of Governors of the Federal
Reserve System)'' after ``on January 7, 1995'' each place it
appears;
(B) by inserting ``, or in which employees and retirees of
the Board of Governors of the Federal Reserve System
participate,'' after ``Office of the Comptroller of the
Currency or the Office of Thrift Supervision'' each place it
appears; and
(C) by inserting ``(in the case of the Comptroller of the
Currency and the Office of Thrift Supervision) or after
January 5, 1997 (in the case of the Board of Governors of the
Federal Reserve System)'' after ``January 8, 1995'' each
place it appears;
(4) in subsection (b)(1)(A), by striking ``title;'' and
inserting ``title or a retiree (as defined in subsection
(e);''; and
(5) by adding at the end the following:
``(e) Definition.--For purposes of this section, the term
`retiree' shall mean an individual who is receiving benefits
under the Retirement Plan for Employees of the Federal
Reserve System.''.
SEC. 605. AMENDMENT TO PUBLIC LAW 104-134.
Paragraph (3) of section 3110(b) of the Omnibus
Consolidated Rescissions and Appropriations Act of 1996
(Public Law 104-134; 110 Stat. 1321-343) is amended to read
as follows:
``(3) The Corporation shall pay to the Thrift Savings Fund
such employee and agency contributions as are required by
sections 8432 and 8351 of title 5, United States Code, for
those employees who elect to retain their coverage under the
Civil Service Retirement System or the Federal Employees'
Retirement System pursuant to paragraph (1).''.
SEC. 606. MISCELLANEOUS AMENDMENTS RELATING TO THE HEALTH
BENEFITS PROGRAM FOR FEDERAL EMPLOYEES.
(a) Definition of a Carrier.--Paragraph (7) of section 8901
of title 5, United States Code, is amended by striking
``organization;'' and inserting ``organization and the
Government-wide service benefit plan sponsored by an
association of organizations described in this paragraph;''.
(b) Service Benefit Plan.--Paragraph (1) of section 8903 of
title 5, United States Code, is amended by striking ``plan,''
and inserting ``plan, underwritten by participating
affiliates licensed in any number of States,''.
(c) Preemption.--Section 8902(m) of title 5, United States
Code, is amended by striking ``(m)(1)'' and all that follows
through the end of paragraph (1) and inserting the following:
``(m)(1) The terms of any contract under this chapter which
relate to the nature, provision, or extent of coverage or
benefits (including payments with respect to benefits) shall
supersede and preempt any State or local law, or any
regulation issued thereunder, which relates to health
insurance or plans.''.
SEC. 607. PAY FOR CERTAIN POSITIONS FORMERLY CLASSIFIED AT
GS-18.
Notwithstanding any other provision of law, the rate of
basic pay for positions that were classified at GS-18 of the
General Schedule on the date of the enactment of the Federal
Employees Pay Comparability Act of 1990 shall be set and
maintained at the rate equal to the highest rate of basic pay
for the Senior Executive Service under section 5382(b) of
title 5, United States Code.
SEC. 608. REPEAL OF SECTION 1307 OF TITLE 5 OF THE UNITED
STATES CODE.
(a) In General.--Section 1307 of title 5, United States
Code, is repealed.
(b) Clerical Amendment.--The table of sections for chapter
13 of title 5, United States Code, is amended by repealing
the item relating to section 1307.
SEC. 609. EXTENSION OF CERTAIN PROCEDURAL AND APPEAL RIGHTS
TO CERTAIN PERSONNEL OF THE FEDERAL BUREAU OF
INVESTIGATION.
(a) In General.--Section 7511(b)(8) of title 5, United
States Code, is amended by striking ``the Federal Bureau of
Investigation,''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to any personnel action taking
effect after the end of the 45-day period beginning on the
date of the enactment of this Act.
Mr. MICA (during the reading). Mr. Speaker, I ask unanimous consent
that the amendment in the nature of a substitute be considered as read
and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
The SPEAKER pro tempore. The question is on the amendment in the
nature of a substitute offered by the gentleman from Florida [Mr.
Mica].
The amendment in the nature of a substitute was agreed to.
The bill was ordered to be engrossed and read a third time, was read
the
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third time, and passed, and a motion to reconsider was laid on the
table.
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