[Congressional Record Volume 146, Number 111 (Tuesday, September 19, 2000)]
[House]
[Pages H7799-H7804]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 GAO PERSONNEL FLEXIBILITY ACT OF 2000

  Mr. BURTON of Indiana. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4642) to make certain personnel flexibilities 
available with respect to the General Accounting Office, and for other 
purposes, as amended.
  The Clerk read as follows:

                               H.R. 4642

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. VOLUNTARY EARLY RETIREMENT AUTHORITY.

       (a) Civil Service Retirement System.--Effective for 
     purposes of the period beginning on the date of enactment of 
     this Act and ending on December 31, 2003, paragraph (2) of 
     section 8336(d) of title 5, United States Code, shall, with 
     respect to officers and employees of the General Accounting 
     Office, be applied as if it had been amended to read as 
     follows:
       ``(2)(A) has been employed continuously by the General 
     Accounting Office for at least the 31-day period immediately 
     preceding the start of the period referred to in subparagraph 
     (D);
       ``(B) is serving under an appointment that is not time 
     limited;
       ``(C) has not received a notice of involuntary separation, 
     for misconduct or unacceptable performance, with respect to 
     which final action remains pending; and
       ``(D) is separated from the service voluntarily during a 
     period with respect to which the Comptroller General 
     determines that the application of this subsection is 
     necessary and appropriate for the purpose of--
       ``(i) realigning the General Accounting Office's workforce 
     in order to meet budgetary constraints or mission needs;
       ``(ii) correcting skill imbalances; or
       ``(iii) reducing high-grade, managerial, or supervisory 
     positions;''.
       (b) Federal Employees' Retirement System.--Effective for 
     purposes of the period beginning on the date of enactment of 
     this Act and ending on December 31, 2003, subparagraph (B) of 
     section 8414(b)(1) of title 5, United States Code, shall, 
     with respect to officers and employees of the General 
     Accounting Office, be applied as if it had been amended to 
     read as follows:
       ``(B)(i) has been employed continuously by the General 
     Accounting Office for at least the 31-day period immediately 
     preceding the start of the period referred to in clause (iv);
       ``(ii) is serving under an appointment that is not time 
     limited;
       ``(iii) has not received a notice of involuntary 
     separation, for misconduct or unacceptable performance, with 
     respect to which final action remains pending; and
       ``(iv) is separated from the service voluntarily during a 
     period with respect to which the Comptroller General 
     determines that the application of this subsection is 
     necessary and appropriate for the purpose of--
       ``(I) realigning the General Accounting Office's workforce 
     in order to meet budgetary constraints or mission needs;
       ``(II) correcting skill imbalances; or
       ``(III) reducing high-grade, managerial, or supervisory 
     positions;''.
       (c) Numerical Limitation.--Not to exceed 10 percent of the 
     General Accounting Office's workforce (as of the start of a 
     fiscal year) shall be permitted to take voluntary early 
     retirement in such fiscal year pursuant to this section.
       (d) Regulations.--The Comptroller General shall prescribe 
     any regulations necessary to carry out this section, 
     including

[[Page H7800]]

     regulations under which an early retirement offer may be made 
     to any employee or group of employees based on--
       (1) geographic area, organizational unit, or occupational 
     series or level;
       (2) skills, knowledge, or performance; or
       (3) such other similar factors (or combination of factors 
     described in this or any other paragraph of this subsection) 
     as the Comptroller General considers necessary and 
     appropriate in order to achieve the purpose involved.

     SEC. 2. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

       (a) In General.--Effective for purposes of the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2003, the authority to provide voluntary 
     separation incentive payments shall be available to the 
     Comptroller General with respect to employees of the General 
     Accounting Office.
       (b) Terms and Conditions.--The authority to provide 
     voluntary separation incentive payments under this section 
     shall be available in accordance with the provisions of 
     subsections (a)(2)-(e) of section 663 of the Treasury, Postal 
     Service, and General Government Appropriations Act, 1997, as 
     contained in Public Law 104-208 (5 U.S.C. 5597 note), except 
     that--
       (1) subsection (a)(2)(D) of such section shall be 
     disregarded;
       (2) subsection (a)(2)(G) of such section shall be applied 
     by construing the citations therein to be references to the 
     appropriate authorities in connection with employees of the 
     General Accounting Office;
       (3) subsection (b)(1) of such section shall be applied by 
     substituting ``Committee on Government Reform'' for 
     ``Committee on Government Reform and Oversight'';
       (4)(A) subsection (b)(2)(A) of such section shall be 
     applied by substituting ``eliminated (if any)'' for 
     ``eliminated'';
       (B) subsection (b)(2)(C) of such section shall be applied 
     by substituting ``such positions or functions as are to be 
     eliminated and such employees as are to be separated'' for 
     ``the eliminated positions and functions''; and
       (C) the agency strategic plan referred to in subsection (b) 
     of such section shall, in addition to the information 
     described in paragraph (2) thereof, contain the following: 
     the steps to be taken to realign the General Accounting 
     Office's workforce in order to meet budgetary constraints or 
     mission needs, correct skill imbalances, or reduce high-
     grade, managerial, or supervisory positions;
       (5) subsection (c)(1) of such section shall be applied by 
     substituting ``to the extent necessary (A) to realign the 
     General Accounting Office's workforce in order to meet 
     budgetary constraints or mission needs, (B) to correct skill 
     imbalances, or (C) to reduce high-grade, managerial, or 
     supervisory positions, in conformance with that agency's 
     strategic plan (as referred to in subsection (b)).'' for the 
     matter following ``only'';
       (6) subsection (c)(2)(D) of such section shall be applied 
     by substituting ``December 31, 2003, or the end of the 3-
     month period beginning on the date on which such payment is 
     offered to such employee, whichever is earlier'' for 
     ``December 31, 1997''; and
       (7) instead of the amount described in paragraph (1) of 
     subsection (d) of such section, the amount required under 
     such paragraph shall be determined in accordance with 
     subsection (c)(1) of this section.
       (c) Additional Contribution to Retirement Fund.--
       (1) Determination of amount required.--The amount required 
     under this paragraph shall be the amount determined under 
     subparagraph (A) or (B), whichever is greater, for the fiscal 
     year involved.
       (A) First method.--The amount required under this 
     subparagraph shall be determined as follows:
       (i) First, determine the sum of the following:

       (I) The amount equal to 19 percent of the final basic pay 
     of each employee described in paragraph (2) who takes early 
     retirement under section 8336(d) of title 5, United States 
     Code.
       (II) The amount equal to 58 percent of the final basic pay 
     of each employee described in paragraph (2) who retires on an 
     immediate annuity under section 8336 of such title 5 (not 
     including any employee covered by subclause (I)).

       (ii) Second, reduce the sum of the amounts determined under 
     clause (i) by the sum of the following (but not below zero):

       (I) The amount equal to 419 percent of the final basic pay 
     of each employee described in paragraph (2), who is covered 
     by subchapter III of chapter 83 of title 5, United States 
     Code, and who resigns.
       (II) The amount equal to 17 percent of the final basic pay 
     of each employee described in paragraph (2) who takes early 
     retirement under section 8414(b) of such title 5.
       (III) The amount equal to 8 percent of the final basic pay 
     of each employee described in paragraph (2) who retires on an 
     immediate annuity under section 8412 of such title 5.
       (IV) The amount equal to 211 percent of the final basic pay 
     of each employee described in paragraph (2), who is covered 
     by chapter 84 of such title 5, and who resigns.

       (B) Second method.--The amount required under this 
     subparagraph shall be equal to 45 percent of the final basic 
     pay of each employee described in paragraph (2).
       (2) Computations to be based on separations occurring in 
     the fiscal year involved.--The employees described in this 
     paragraph are those employees who receive a voluntary 
     separation incentive payment under this section based on 
     their separating from service during the fiscal year 
     involved.
       (3) Regulations.--
       (A) In general.--The Office of Personnel Management shall 
     prescribe any regulations necessary to carry out this 
     subsection, including provisions under which any additional 
     contribution determined under this subsection shall, at the 
     election of the General Accounting Office, be payable either 
     in a lump sum or through installment payments made over a 
     period of not to exceed 3 years.
       (B) Interest.--The regulations shall include provisions 
     under which, if the installment method is chosen, interest 
     shall be payable at the same rate as provided for under 
     section 8348(f) of title 5, United States Code.
       (4) Rule of construction.--As used in this subsection, the 
     term ``resign'' shall not be considered to include early 
     retirement or a separation giving rise to an immediate 
     annuity.
       (d) Definitions.--
       (1) Final basic pay.--As used in this section, the term 
     ``final basic pay'' has the same meaning as under section 
     663(d)(2) of the Treasury, Postal Service, and General 
     Government Appropriations Act, 1997, as contained in Public 
     Law 104-208 (5 U.S.C. 5597 note).
       (2) Employee.--As used in this section and, for purposes of 
     this section, the provisions of law cited in subsection (b), 
     the term ``employee'' shall be considered to refer to an 
     officer or employee of the General Accounting Office.
       (e) Numerical Limitation.--Not to exceed 5 percent of the 
     General Accounting Office's workforce (as of the start of a 
     fiscal year) shall be permitted to receive a voluntary 
     separation incentive payment under this section based on 
     their separating from service in such fiscal year.
       (f) Regulations.--The Comptroller General shall prescribe 
     any regulations necessary to carry out this section, 
     excluding subsection (c). Such regulations shall include 
     provisions under which a voluntary separation incentive 
     payment may be offered to any employee or group of employees 
     based on--
       (1) geographic area, organizational unit, or occupational 
     series or level;
       (2) skills, knowledge, or performance; or
       (3) such other similar factors (or combination of factors 
     described in this or any other paragraph of this subsection) 
     as the Comptroller General considers necessary and 
     appropriate in order to achieve the purpose involved.

     SEC. 3. REDUCTIONS IN FORCE.

       (a) Modified Procedures.--
       (1) In general.--Subsection (h) of section 732 of title 31, 
     United States Code, is amended to read as follows:
       ``(h)(1)(A) Notwithstanding any other provision of law, the 
     Comptroller General shall prescribe regulations, consistent 
     with regulations issued by the Office of Personnel Management 
     under authority of section 3502(a) of title 5 for the 
     separation of employees of the General Accounting Office 
     during a reduction in force or other adjustment in force.
       ``(B) The regulations must give effect to the following 
     factors in descending order of priority--
       ``(i) tenure of employment;
       ``(ii) military preference subject to section 3501(a)(3) of 
     title 5;
       ``(iii) veterans' preference under sections 3502(b) and 
     3502(c) of title 5;
       ``(iv) performance ratings;
       ``(v) length of service computed in accordance with the 
     second sentence of section 3502(a) of title 5; and
       ``(vi) other objective factors such as skills and knowledge 
     that the Comptroller General considers necessary and 
     appropriate to realign the agency's workforce in order to 
     meet current and future mission needs, to correct skill 
     imbalances, or to reduce high-grade, managerial, or 
     supervisory positions.
       ``(C) Notwithstanding subparagraph (B), the regulations 
     relating to removal from the General Accounting Office Senior 
     Executive Service in a reduction in force or other adjustment 
     in force shall be consistent with section 3595(a) of title 5.
       ``(2)(A) The regulations shall provide a right of appeal to 
     the General Accounting Office Personnel Appeals Board 
     regarding a personnel action under the regulations, 
     consistent with section 753 of this title.
       ``(B) The regulations shall provide that final decision by 
     the General Accounting Office Personnel Appeals Board may be 
     reviewed by the United States Court of Appeals for the 
     Federal Circuit consistent with section 755 of this title.
       ``(3)(A) Except as provided in subparagraph (B), an 
     employee may not be released, due to a reduction force, 
     unless such employee is given written notice at least 60 days 
     before such employee is so released. Such notice shall 
     include--
       ``(i) the personnel action to be taken with respect to the 
     employee involved;
       ``(ii) the effective date of the action;
       ``(iii) a description of the procedures applicable in 
     identifying employees for release;
       ``(iv) the employee's ranking relative to other competing 
     employees, and how that ranking was determined; and
       ``(v) a description of any appeal or other rights which may 
     be available.
       ``(B) The Comptroller General may, in writing, shorten the 
     period of advance notice

[[Page H7801]]

     required under subparagraph (A) with respect to a particular 
     reduction in force, if necessary because of circumstances not 
     reasonably foreseeable, except that such period may not be 
     less than 30 days.''.
       (2) Effective date.--Subject to paragraph (3), the 
     amendment made by paragraph (1) shall apply with respect to 
     all reduction-in-force actions taking effect on or after--
       (A) the 180th day following the date of enactment of this 
     Act; or
       (B) if earlier, the date the Comptroller General issues the 
     regulations required under such amendment.
       (3) Savings provisions.--If, before the effective date 
     determined under paragraph (2), specific notice of a 
     reduction-in-force action is given to an individual in 
     accordance with section 1 of chapter 5 of GAO Order 2351.1 
     (dated February 28, 1996), then, for purposes of determining 
     such individual's rights in connection with such action, the 
     amendment made by paragraph (1) shall be treated as if it had 
     never been enacted.
       (b) Authority To Permit Voluntary Separations To Avoid 
     Reductions in Force.--
       (1) In general.--Section 732 of title 31, United States 
     Code (as amended by subsection (a)), is amended by adding at 
     the end the following:
       ``(i) The regulations under subsection (h) shall include 
     provisions under which, at the discretion of the Comptroller 
     General, the opportunity to separate voluntarily (in order to 
     permit the retention of an individual occupying a similar 
     position) shall, with respect to the General Accounting 
     Office, be available to the same extent and in the same 
     manner as described in subsection (f)(1)-(4) of section 3502 
     of title 5 (with respect to the Department of Defense or a 
     military department).''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on the date of enactment of this Act.

     SEC. 4. SENIOR-LEVEL POSITIONS.

       (a) Critical Positions.--
       (1) In general.--Title 31, United States Code, is amended 
     by inserting after section 732 the following:

     ``Sec. 732a. Critical positions

       ``(a) The Comptroller General may establish senior-level 
     positions to meet critical scientific, technical or 
     professional needs of the General Accounting Office. An 
     individual serving in such a position shall--
       ``(1) be subject to the laws and regulations applicable to 
     the General Accounting Office Senior Executive Service under 
     section 733 of this title, with respect to rates of basic 
     pay, performance awards, ranks, carry over of annual leave, 
     benefits, performance appraisals, removal or suspension, and 
     reductions in force;
       ``(2) have the same rights of appeal to the General 
     Accounting Office Personnel Appeals Board as are provided to 
     the Office Senior Executive Service;
       ``(3) be exempt from the same provisions of law as are made 
     inapplicable to the Office Senior Executive Service under 
     section 733(d) of this title, except for section 732(e) of 
     this title;
       ``(4) be entitled to discontinued service retirement under 
     chapter 83 or 84 of title 5 as if a member of the Office 
     Senior Executive Service; and
       ``(5) be subject to reassignment by the Comptroller General 
     to any position in the Office Senior Executive Service under 
     section 733 of this title, as the Comptroller General 
     determines necessary and appropriate.
       ``(b) Senior-level positions under this section may include 
     positions referred to in section 731(d), (e)(1), or (e)(2) of 
     this title.''.
       (2) Numerical limitation applies.--Section 732(c)(4) of 
     title 31, United States Code, is amended--
       (A) by inserting ``(including senior-level positions under 
     section 732a of this title)'' after ``129 positions''; and
       (B) by striking ``title);'' and inserting ``title and 
     senior-level positions described in section 732a(b) of this 
     title);''.
       (3) Clerical amendment.--The table of sections for chapter 
     7 of title 31, United States Code, is amended by inserting 
     after the item relating to section 732 the following:

``732a. Critical positions.''.
       (b) Reassignment to Senior-Level Positions.--Section 733(a) 
     of title 31, United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (6);
       (2) by redesignating paragraph (7) as paragraph (8); and
       (3) by inserting after paragraph (6) the following:
       ``(7) allowing the Comptroller General to reassign an 
     officer or employee in the Office Senior Executive Service to 
     any senior-level position established under section 732a of 
     this title, as the Comptroller General determines necessary 
     and appropriate; and''.

     SEC. 5. EXPERTS AND CONSULTANTS.

       Section 731(e) of title 31, United States Code, is 
     amended--
       (1) in paragraph (1) by striking ``not more than 3 years'' 
     and inserting ``terms of not more than 3 years, but which 
     shall be renewable''; and
       (2) in paragraph (2) by striking ``level V'' and inserting 
     ``level IV''.

     SEC. 6. REPORTING REQUIREMENTS.

       (a) Annual Reports.--The Comptroller General shall include 
     in each report submitted to Congress under section 719(a) of 
     title 31, United States Code, during the 5-year period 
     beginning on the date of enactment of this Act--
       (1) a review of all actions taken pursuant to sections 1 
     through 3 of this Act during the period covered by the 
     report, including--
       (A) the number of officers or employees who separated from 
     service pursuant to section 1 or 2, or who were released 
     pursuant to a reduction in force conducted under the 
     amendment made by section 3, during such period;
       (B) an assessment of the effectiveness and usefulness of 
     those sections in contributing to the agency's ability to 
     carry out its mission, meet its performance goals, and 
     fulfill its strategic plan; and
       (C) with respect to the amendment made by section 3, an 
     assessment of the impact such amendment has had with respect 
     to preference eligibles, including--
       (i) whether a disproportionate number or percentage of 
     preference eligibles were included among those who became 
     subject to reduction-in-force actions as a result of such 
     amendment;
       (ii) whether a disproportionate number or percentage of 
     preference eligibles were in fact released pursuant to 
     reductions in force under such amendment; and
       (iii) to the extent that either of the foregoing is 
     answered in the affirmative, the reasons for the 
     disproportionate impact involved (particularly, whether such 
     amendment caused or contributed to the disproportionate 
     impact involved); and
       (2) recommendations for any legislation which the 
     Comptroller General considers appropriate with respect to any 
     of those sections.
       (b) Three-Year Assessment.--Not later than 3 years after 
     the date of enactment of this Act, the Comptroller General 
     shall submit to the Congress a report concerning the 
     implementation and effectiveness of this Act. Such report 
     shall include--
       (1) a summary of the portions of the annual reports 
     required under subsection (a);
       (2) recommendations for continuation of section 1 or 2 or 
     any legislative changes to section 1 or 2 or the amendment 
     made by section 3; and
       (3) any assessment or recommendations of the General 
     Accounting Office Personnel Appeals Board or of any 
     interested groups or associations representing officers or 
     employees of the General Accounting Office.
       (c) Preference Eligible Defined.--For purposes of this 
     section, the term ``preference eligible'' has the meaning 
     given such term under section 2108(3) of title 5, United 
     States Code.

  The SPEAKER pro tempore (Mr. Shimkus). Pursuant to the rule, the 
gentleman from Indiana (Mr. Burton) and the gentleman from California 
(Mr. Waxman) each will control 20 minutes.
  The Chair recognizes the gentleman from Indiana (Mr. Burton).

                              {time}  1530


                             General Leave

  Mr. BURTON of Indiana. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on H.R. 4642.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  Mr. BURTON of Indiana. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise to express my support for H.R. 4642, a bill to 
improve the effectiveness of the General Accounting Office through 
improvement to its personnel system. I would like to thank my 
colleague, the gentleman from Florida (Mr. Scarborough), chairman of 
the Subcommittee on Civil Service for his work and efforts on this 
legislation.
  The General Accounting Office sometimes referred to as the 
``watchdog'' of Congress or the ``investigative arm'' of Congress today 
faces many of the same personnel problems confronting other Federal 
agencies. As my colleagues know, the Federal Government is nearing a 
crisis in its ability to recruit, retain and reward a skilled, trained, 
and knowledgeable workforce for the 21st century.
  Mr. Speaker, like the rest of the government, GAO is fundamentally 
constrained by personnel issues in its ability to meet future 
obligations to Congress and the country. It is to ensure that GAO can 
successfully confront these personnel problems and secure its future 
that I rise in support of this very important legislation.
  Mr. Speaker, I think that I can safely speak for all Members on both 
sides of the aisle in saying that GAO makes many contributions to 
helping us improve the economy, effectiveness and efficiency of 
government and in pointing out waste and abuse in government programs. 
Not a week goes by without a major GAO report about some important 
aspect of government operations.
  From my own perspective and experience, I know that the Committee on 
Government Reform has a unique relationship with GAO, not only does the

[[Page H7802]]

committee authorize GAO, but under House rules, it also officially 
receives every GAO record that is sent to Congress. The Committee on 
Government Reform also receives more GAO testimony than any other 
committee in Congress.
  The agency is invaluable to the entire congressional community. All 
Members of Congress, including myself, rely upon GAO for briefings, 
testimony, oversight, information and review of executive operations.
  Mr. Speaker, I urge my colleagues to support this legislation for GAO 
to ensure that our watchdog can continue to effectively do its job for 
Congress in the future.
  As my colleagues know, we have a new Comptroller General at GAO, 
David M. Walker, who was confirmed about 19 months ago. Mr. Walker is 
committed to making sure that the agency can successfully meet its 
mission. Mr. Walker has developed a new strategic plan to keep aligned 
with our needs on the Hill. He has embarked on a reorganization 
designed to streamline operations and remove redundancies and he has 
determined to meet personnel crises head on.
  As Mr. Walker seeks to make constructive changes, continue 
improvements in GAO, he faces a personnel quandary that has been many 
years in the making, a series of budget cuts in the last decade forced 
GAO to undergo a severe downsizing and a hiring freeze which resulted 
in a 39 percent staff reduction and significant imbalances among the 
staff remaining.
  The impact of these cuts and freezes continues to hamper the agency. 
GAO also faces one of the government's most significant problems of the 
next few years. The anticipated retirement of many mid-level and 
senior-level employees who have been with the government for decades 
and who represent the greatest source of knowledge and experience in 
the Federal sector.
  For example, nearly 55 percent of GAO's senior executive service are 
eligible to retire in the next 4 years and 34 percent of the agency's 
total workforce will be eligible to leave government.

  This potential mass exodus has the ability to undermine GAO's 
effectiveness to an unprecedented loss of institutional memory that 
could directly impact its products and services to Congress. These 
executives and personnel have provided such long service to the 
government and have a storehouse of knowledge and experience that 
cannot be duplicated or easily replaced.
  In the case of GAO, because of the wide variety of issues they 
handle, this is a loss of expertise across many, many areas of 
government. The expected loss of so many seasoned executives and 
supervisors, combined with the massive downsizing experienced during 
the past decades, when taken together, is at the core of GAO's current 
and future personnel problems.
  Indeed, it is this one-two punch of recent and expected personnel 
departures that Mr. Walker and the GAO are now trying to confront, in 
part through the legislation now before us.
  In his efforts to more effectively focus GAO on the needs of Congress 
in the 21st century, the Comptroller General has also recognized that 
the skills GAO employees have today may not always be suited for the 
agency's needs in the future. GAO has undertaken a number of 
initiatives from the new strategic plan to a skills and knowledge 
database of its employees.
  These efforts will help the agency to ascertain both the current 
skill set and future skills gap of its work force. The legislation will 
also help to remedy this problem by providing flexibility in filling 
the gaps.
  Mr. Speaker, as I think my comments have proved, GAO urgently needs 
this important legislation to help it face the future and by doing so 
help us here in the Congress. This bill will allow GAO to overcome its 
pressing personnel problems by providing the Comptroller General with 
the ability to correct workforce skill imbalances to successfully 
handle current and future issues, and to help achieve a more balanced, 
productive and focused workforce.
  H.R. 4642 provides the agency with a set of tools so that it can 
better fulfill its mission to support Congress. The bill will help GAO 
build a workforce for the future to implement its strategic plan and be 
positioned to serve the varied important needs of the Congress.
  The bill has three main provisions, which I will address very 
briefly. First, the legislation will allow the Comptroller General to 
hire scientific and technical experts who will have the same pay and 
benefits as the SES and reclassify senior executives without loss of 
pay. This creates a new career path for selected technical positions 
and helps to redress the loss of institutional memory so critical to 
the agency's work.
  Second, the Comptroller General will be able to offer voluntary early 
retirement and cash buyouts to employees in jobs deemed surplus. This 
tool which the Comptroller General would use judiciously can help to 
realign the agency in ways to improve its focus in critical areas.
  The final provision addresses the Comptroller General's ability to 
run a reduction in force or a RIF. The Comptroller General already has 
the authority to conduct a RIF; but under existing rules, a RIF would 
be based largely on a person's length of service but also would rely 
upon tenure and military preference.
  Under this legislation, a RIF would be based on a person's skills, 
performance, and knowledge, as well as length of service and tenure, 
while retaining the statutory preference for military veterans, which I 
strongly support.
  This is an important change because, absent this provision, efforts 
to reshape the agency to better serve Congress in the future could be 
hampered by continued loss of employees critical to implementing 
strategic plans, goals, and objectives.
  This legislation gives GAO the flexibility it needs to maximize its 
performance and focus on the future. It helps rebalance the agency's 
personnel structure after years of budget and personnel cuts, and it 
continues efforts to sustain an environment in which performance in 
government matters.
  I have been pleased to sponsor this legislation with my good friend, 
the gentleman from Florida (Chairman Scarborough) of the Subcommittee 
on Civil Service; and we have been supported by the gentleman from 
California (Mr. Waxman) in the legislation that has been discussed in 
several hearings in which the Comptroller General outlined the 
importance of the bill and the reasons why it was necessary to take 
this action.
  Mr. Speaker, as a result of this bill's progress in Congress, there 
is considerable Member support and recognition of the need for this 
important legislation. The legislation is also supported by Mr. 
Walker's two predecessors in office, Comptrollers General, Elmer Staats 
and Charles Browser, who together represent 30 years of GAO leadership 
supported it.
  I would further note that the administration does not oppose this 
bill as it only affects the agency of the legislative branch. It is 
important to highlight that the provisions of this bill will not have 
an impact on executive branch agencies or their employees.
  I know that several of my colleagues initially objected to this bill 
because they believed it might have an impact on some of their 
constituents. Let me reiterate that this legislation will only affect 
the GAO and does not have any application to the executive branch of 
the Federal Government.
  Furthermore, I hope that my colleagues recognize that the legislation 
before them now includes several changes from the original bill which 
are designed to ensure that the provisions, if they are implemented, 
are done so in an equitable and responsible manner.
  This includes a requirement that GAO must issue regulations on RIF 
selection criteria after a public comment period. GAO must also report 
back to the Congress on how it implemented the law.
  I believe these and other safeguards will help to satisfy any 
concerns of the local delegation.
  In summary, Mr. Speaker, I urge my colleagues to support this bill so 
that GAO can achieve its goal of being a model Federal agency of 
sustaining a strong and effective workforce and of meeting its mission 
to Congress and to the American people.
  Mr. Speaker, I include for the Record a legislative history of GAO's 
personnel legislation.

[[Page H7803]]

     Legislation Authorizing GAO To Take Certain Personnel Actions


                               I. Purpose

       The General Accounting Office (GAO) has requested these 
     personnel authorities to enable the agency to effectively 
     address human capital challenges in order to more effectively 
     fulfill its mission. GAO explained that it recently completed 
     a thorough evaluation of its workforce needs and resources 
     and found that they do not match up. This arose in part 
     because of the severe downsizing and hiring freezes from 
     1992-1997. Also, the kinds of skills, knowledge, and 
     performance needed by GAO in its workforce are changing with 
     the impact of information technology, globalization, and 
     other trends in the broader society. Finally, these kinds of 
     imbalances threaten to become worse, because the retirement 
     of many employees possessing necessary expertise are or are 
     close to being eligible for retirement.
       GAO has said that it is doing what it can administratively 
     to correct these imbalances, e.g., by enhanced entry-level 
     recruitment, active management of promotion decisions, and 
     compilation of an inventory of the agency's human capital 
     needs and resources. The agency is also being restructured to 
     have less hierarchy and fewer field offices. GAO explained, 
     however, that its current law is designed for ``downsizing,'' 
     not ``rightsizing,'' and prevents GAO from taking needed 
     management steps.
       GAO has thus explained why this new legislative authority 
     is necessary to enable GAO to effectively address the 
     agency's human capital requirements. This legislation is 
     appropriate for GAO considering its role and responsibilities 
     in the legislative branch and its unique relationship to the 
     Congress, and also taking account of the specific, fact-based 
     demonstration that GAO has made explaining why the requested 
     authority is needed and appropriate.


                       II. Summary of provisions

       The legislation provides narrowly tailored authority, 
     preserving due process protections, in four specific areas: 
     (1) to offer early retirement (early-outs) on a voluntary 
     basis to a limited number of qualified employees in each 
     fiscal year; (2) to offer separation pay (buyouts) on a 
     voluntary basis to a limited number of qualified employees in 
     each fiscal year for a five-year period after enactment of 
     the legislation; (3) to release officers and employees in a 
     reduction in force (RIF) or an adjustment in force carried 
     out for downsizing, realigning, or correcting skill 
     imbalances; and (4) to establish senior-level positions to 
     meet critical scientific, technical or professional needs and 
     to extend to those positions the rights and benefits of 
     Senior Executive Service employees. Regulations governing the 
     RIF provision must give effect to tenure, military 
     preference, veterans preference, performance, length of 
     service, and other factors such as skills and knowledge.
       In addition, the legislation requires that the Comptroller 
     General report annually to the Congress on the use and 
     effectiveness of the legislation, and provide the Congress 
     with a report in three years summarizing the use and 
     effectiveness of the legislation and recommending whether it 
     should be continued or changed.


     III. Employee Rights and Protections Under the New Authorities

       First, as a general matter, it is essential that the 
     Comptroller General consult with employees concerning plans 
     for implementation of the legislation in advance of issuing 
     proposed orders or regulations for comment. GAO has described 
     the efforts taken by the Comptroller General to foster two-
     way communication between the Office of the Comptroller 
     General and all agency officers and employees, including 
     extensive discussions regarding the need for and development 
     of this legislation. Broad consultation with officers and 
     employees should be continued at each stage of the 
     legislation's implementation. In addition, in developing 
     implementing regulations, GAO is obligated under existing law 
     to afford notice and opportunity for comment, and GAO has 
     said it will follow the best practices of regulatory agencies 
     in regards to summarizing and responding on the public record 
     to significant comments received.
       The legislation itself contains a number of provisions and 
     preserves rights and protections under existing laws to 
     assure that employees will not be subject to arbitrary and 
     illegal action. Notably, this legislation in no way affects 
     existing laws that prohibit discrimination on the basis of 
     race, color, religion, sex, national origin, age, and 
     disability, that forbid prohibited personnel practices, or 
     that require compliance with merit principles. GAO's 
     implementation of the authorities granted by this legislation 
     must continue to be in conformity with those existing laws.
       This legislation requires that, to implement the provisions 
     authorizing early retirement, separation pay, and reductions 
     in force, the agency must issue regulations that provide 
     criteria for, in effect, two levels of decision-making: the 
     decision to use the authorities and the decision regarding 
     which officers or employees shall be subject to actions under 
     the authorities.
       GAO has stated that these regulations must set forth 
     clearly defined criteria and require consistent and well 
     documented application of those criteria. Any decisions based 
     upon individual data, such as skills/knowledge and 
     performance, will be based on identification and measurement 
     systems. Ratings from the agency's performance appraisal 
     systems will be the basis for measuring individual 
     performance, and GAO has stated that an individual's ratings 
     for three years will be used. Similarly, skills and knowledge 
     must be ascertained in a well-documented skills inventory. 
     GAO has explained that its staff will fill out such a skills 
     inventory, subject to supervisory review, which will be used 
     in conjunction with the agency's strategic plan to identify 
     any ``gaps'' or ``overages'' in workforce skills and 
     knowledge. If GAO finds it necessary to use the RIF authority 
     before a skills inventory is completed, the agency would use 
     existing organizational groups and units.
       In giving effect to military preference, GAO must comply 
     with the requirements of its own Personnel Act, section 
     732(b)(5) of title 31, which requires GAO to provide a 
     preference to veterans in a way and to an extent consistent 
     with the system in the executive branch. In the executive 
     branch under section 3502(b) of title 5, a preference 
     eligible with a compensable service connected disability 
     of at least 30% and whose performance has not been rated 
     unacceptable is retained in preference to other preference 
     eligibles. Section 3502(c) of title 5 requires that all 
     other preference eligibles whose performance has not been 
     rated unacceptable be retained in preference to all other 
     competing employees. Therefore, these provisions would 
     bind GAO, and preference eligibles would be the last to be 
     terminated in their applicable unit/job or skill group 
     under a reduction in force.
       The legislation allows the provisions authorizing early 
     retirement, separation pay, and reductions in force to be 
     exercised only for workforce realignment and other purposes 
     as specified in the legislation. Addressing individual 
     employee performance is not among these specified purposes, 
     and it is only for the specified purposes that the 
     Comptroller General may consider individual performance data 
     among the criteria for offering early retirement or 
     separation pay or for carrying out a reduction in force. For 
     example, GAO may not use these authorities for the purpose of 
     replacing lower-performing employees with higher-performing 
     employees or to address problems in individual employees' 
     performance. To address performance problems, GAO must 
     continue to use its performance management system under 
     existing law, which affords affected employees particular 
     procedural and substantive rights. Under this legislation as 
     under existing law, individuals are not subject to being 
     ``targeted,'' i.e., reductions in force may not be carried 
     out for the purpose of removing a particular individual or 
     individuals.
       The legislation requires that GAO regulations governing 
     RIFs be consistent with Office of Personnel Management 
     regulations. The use of the term ``consistent with'' 
     recognizes that because of the form of GAO's personnel 
     system, GAO's organizational structure, and the authorities 
     granted under this and other legislation applicable to GAO, 
     the implementing GAO regulations may vary from the approach 
     taken by OPM. Nevertheless, the GAO regulations should follow 
     the OPM approach where such considerations do not apply.
       GAO's Personnel Appeals Board (PAB) will serve as an 
     independent body to review and decide any cases arising out 
     of a reduction in force where individuals feel they have not 
     been treated in accordance with law or regulations. GAO has 
     stated that this review authority of the PAB is established 
     under existing statute and under provisions of GAO's existing 
     regulations that GAO will retain. If an action under the RIF 
     authority was unlawful, the individual employee shall be 
     restored to the grade or rate of pay to which the employee is 
     entitled, retroactively effective to the date of the improper 
     action.
       As to the senior level positions established under the 
     legislation, employees appointed to those positions will 
     generally enjoy the same rights and privileges as members of 
     GAO's Senior Executive Service. Furthermore, except as 
     otherwise specified in the legislation, the employees 
     appointed to the new senior level positions will enjoy the 
     rights and protections that apply generally to professional 
     employees at GAO. Any employees transferred under this 
     provision from GAO's SES to a non-executive senior level 
     position will retain their current pay and will have an 
     equivalent pay system to what they had in the SES.
       The new early-out authority will be in addition to, and 
     will not detract from, any rights to early retirement 
     established under existing law.
       Finally, the legislation requires GAO to report on the 
     implementation of the new authorities both annually and in a 
     3-year assessment, and GAO has said that these reports will 
     include information about any impact upon employee attitudes 
     and opinions, as measured by employee feedback survey 
     responses. The 3-year assessment will include not only 
     recommendations of the Comptroller General for continuation 
     or change of the authorities granted by this legislation, but 
     also any assessments or recommendations of the GAO Personnel 
     Appeals Board and of any interested GAO employee groups.

  I encourage all Members to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WAXMAN. Mr. Speaker, I yield myself such time as I may consume.

[[Page H7804]]

  Mr. Speaker, Members of Congress are well acquainted with the General 
Accounting Office. It is Congress' and the Nation's primary watchdog 
agency responsible for providing credible, objective and nonpartisan 
reports and evaluations of the programs and management of the executive 
branch.
  The GAO has for years provided Congress with invaluable assistance, 
now it is asking us for assistance by providing GAO with needed human 
capital authorities, and we should meet this request.
  Mr. Speaker, from 1992 to 1997, GAO's budget was cut by one-third. In 
order to achieve these reductions, the GAO was forced to reduce its 
staff by almost 40 percent and close many field offices. Since then, it 
has had to impose hiring freezes, cut training and suspend incentive 
programs. During the same period, GAO has faced a problem common to 
much of the Federal Government, an aging workforce.
  By the end of fiscal year 2004, over one-third of the GAO's employees 
would be eligible for retirement. As a result of these pressures, GAO's 
workforce is out of shape. There are too many senior- and middle-level 
employees and too few at the lower levels. These imbalances have been 
well documented in a human capital profile completed by the Comptroller 
General.
  In addition, the types of skills, knowledge and performance needed by 
GAO have changed over time as the world has been radically altered by 
the information age technology. Major policy issues have also become 
increasingly complex, requiring greater technical skill and 
sophistication to support the needs of Congress.
  Mr. Speaker, all of these trends have led to a human capital profile 
at the General Accounting Office which does not currently operate in 
the most efficient or effective manner. More seriously, it puts the GAO 
at risk of being unable to meet the demands and needs of the Congress 
in the future.
  The legislation before us would provide GAO with authority to address 
these concerns. For example, the bill would authorize the Comptroller 
General to offer early retirement opportunities and separation pay to a 
limited number of qualified personnel each of the next 3 fiscal years.
  Under the legislation, the Comptroller could also establish senior-
level positions to meet critical scientific or technical needs. 
Finally, the bill requires the Comptroller to report annually to the 
Congress on the effect of this legislation and to submit a 3-year 
assessment of the implementation and effectiveness of this act.
  These and other flexibilities in the bill will bring the GAO closer 
to the personnel policies of our legislative branch organizations such 
as the Committees of Congress and the Congressional Budget Office. 
However, this legislation should not be viewed as a precedent for 
changes in executive branch personnel policy.
  Mr. Speaker, we have an outstanding Comptroller General in Mr. 
Walker. He is putting all of his efforts into making the GAO the kind 
of agency that we will all be proud of.

                              {time}  1545

  This legislation before us today is a result of an enormous amount of 
effort that he has put into giving us recommendations to make GAO a 
better organization. I think that we ought to join together in a 
bipartisan move today in supporting this legislation and making sure 
that the GAO will be there to serve the needs of the Congress and the 
American people.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BURTON of Indiana. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion 
offered by the gentleman from Indiana (Mr. Burton) that the House 
suspend the rules and pass the bill, H.R. 4642, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________