Congressional Record, Volume 150 Issue 21 (Wednesday, February 25, 2004)

[Congressional Record Volume 150, Number 21 (Wednesday, February 25, 2004)]
[House]
[Pages H579-H583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

GAO HUMAN CAPITAL REFORM ACT OF 2003

Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, pursuant to the order of
the House of February 24, 2004, I call up the bill (H.R. 2751) to
provide new human capital flexibilities with respect to the GAO, and
for other purposes, and ask for its immediate consideration in the
House.
The Clerk read the title of the bill.
The SPEAKER pro tempore (Mr. LaHood). Pursuant to the order of the
House of February 24, 2004, the bill is considered read for amendment.
The text of H.R. 2751 is as follows:

H.R. 2751

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

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.

(a) Short Title.--This Act may be cited as the ``GAO Human
Capital Reform Act of 2003''.
(b) Amendment of Title 31.--Except as otherwise expressly
provided, whenever in this Act an amendment is expressed in
terms of an amendment to a section or other provision, the
reference shall be considered to be made to a section or
other provision of title 31, United States Code.

SEC. 2. AMENDMENTS TO PUBLIC LAW 106-303.

Sections 1 and 2 of Public Law 106-303 (5 U.S.C. 8336 note
and 5597 note) are amended by striking ``for purposes of the
period beginning on the date of the enactment of this Act and
ending on December 31, 2003'' each place it appears and
inserting ``October 13, 2000''.

SEC. 3. ANNUAL PAY ADJUSTMENTS.

(a) Officers and Employees Generally.--Paragraph (3) of
section 732(c) is amended to read as follows:
``(3) except as provided under section 733(a)(3)(B) of this
title, basic pay rates of officers and employees of the
Office shall be adjusted annually to such extent as the
Comptroller General shall determine, taking into
consideration--
``(A) the principle that there be equal pay for
substantially equal work within each local pay area;
``(B) the Consumer Price Index;
``(C) any existing pay disparities between officers and
employees of the Office and non-Federal employees in each
local pay area;
``(D) the pay rates for the same levels of work for
officers and employees of the Office and non-Federal
employees in each local pay area;
``(E) the appropriate distribution of agency funds between
annual adjustments under this section and performance-based
compensation; and
``(F) such other criteria as the Comptroller General
considers appropriate, including, but not limited to, the
funding level for the Office, amounts allocated for
performance-based compensation, and the extent to which the
Office is succeeding in fulfilling its mission and
accomplishing its strategic plan;

notwithstanding any other provision of this paragraph, an
adjustment under this paragraph shall not be applied in the
case of any officer or employee whose performance is not at a
satisfactory level, as determined by the Comptroller General
for purposes of such adjustment;''.
(b) Officers and Employees in the Office Senior Executive
Service.--Subparagraph (B) of section 733(a)(3) is amended to
read as follows:
``(B) adjusted annually by the Comptroller General after
taking into consideration the factors listed under section
732(c)(3) of this title, except that an adjustment under this
subparagraph shall not be applied in the case of any officer
or employee whose performance is not at a satisfactory level,
as determined by the Comptroller General for purposes of such
adjustment;''.
(c) Conforming Amendment.--Section 732(b)(6) is amended by
striking ``title 5.'' and inserting ``title 5, except as
provided under subsection (c)(3) of this section and section
733(a)(3)(B) of this title.''.

SEC. 4. PAY RETENTION.

Paragraph (5) of section 732(c) is amended to read as
follows:
``(5) the Comptroller General shall prescribe regulations
under which an officer or employee of the Office shall be
entitled to pay retention if, as a result of any reduction-
in-force or other workforce adjustment procedure, position
reclassification, or other appropriate circumstances as
determined by the Comptroller General, such officer or
employee is placed in or holds a position in a lower grade or
band with a maximum rate of basic pay that is less than the
rate of basic pay payable to the officer or employee
immediately before the reduction in grade or band; such
regulations--
``(A) shall provide that the officer or employee shall be
entitled to continue receiving the rate of basic pay that was
payable to the officer or employee immediately before the
reduction in grade or band until such time as the retained
rate becomes less than the maximum rate for the grade or band
of the position held by such officer or employee; and
``(B) shall include provisions relating to the minimum
period of time for which an officer or employee must have
served or for which the position must have been classified at
the higher grade or band in order for pay retention to apply,
the events that terminate the right to pay retention (apart
from the one described in subparagraph (A)), and exclusions
based on the nature of an appointment; in prescribing
regulations under this subparagraph, the Comptroller General
shall be guided by the provisions of sections 5362 and 5363
of title 5.''.

SEC. 5. RELOCATION BENEFITS.

Section 731 is amended by adding after subsection (e) the
following:
``(f) The Comptroller General shall prescribe regulations
under which officers and employees of the Office may, in
appropriate circumstances, be reimbursed for any relocation
expenses under subchapter II of chapter 57 of title 5 for
which they would not otherwise be eligible, but only if the
Comptroller General determines that the transfer giving

[[Page H580]]

rise to such relocation is of sufficient benefit or value to
the Office to justify such reimbursement.''.

SEC. 6. INCREASED ANNUAL LEAVE FOR UPPER-LEVEL EMPLOYEES.

Section 731 is amended by adding after subsection (f) (as
added by section 5) the following:
``(g) The Comptroller General shall prescribe regulations
under which officers and employees of the Office in high-
grade, managerial, or supervisory positions who have less
than 3 years of service may, in appropriate circumstances,
accrue leave in accordance with section 6303(a)(2) of title
5. Such regulations shall define high-grade, managerial, or
supervisory positions and set forth the factors in
determining which officers and employees should be allowed to
accrue leave in accordance with this subsection.''.

SEC. 7. EXECUTIVE EXCHANGE PROGRAM.

Section 731 is amended by adding after subsection (g) (as
added by section 6) the following:
``(h) The Comptroller General may by regulation establish
an executive exchange program under which officers and
employees of the Office in high-grade, managerial, or
supervisory positions may be assigned to private sector
organizations, and employees of private sector organizations
may be assigned to the Office, for work of mutual concern and
benefit. Regulations to carry out any such program--
``(1) shall include provisions which define high-grade,
managerial, or supervisory positions, and provisions
(consistent with sections 3702-3704 of title 5) as to matters
concerning (A) the duration and termination of assignments,
(B) reimbursements, and (C) status, entitlements, benefits,
and obligations of program participants;
``(2) shall limit (A) the number of officers and employees
who are assigned to private sector organizations at any one
time to not more than 30, and (B) the number of employees
from private sector organizations who are assigned to the
Office at any one time to not more than 30; and
``(3) shall provide for the inclusion, in all reports
submitted to the Congress under section 719(a) of this title,
of a review of the work being done by all individuals
participating in the program and an assessment of the
effectiveness and usefulness of the program.''.

SEC. 8. REDESIGNATION.

(a) In General.--The General Accounting Office is hereby
redesignated the Government Accountability Office.
(b) References.--Any reference to the General Accounting
Office in any law, rule, regulation, certificate, directive,
instruction, or other official paper in force on the date of
the enactment of this Act shall be considered to refer and
apply to the Government Accountability Office.

SEC. 9. EFFECTIVE DATES.

(a) In General.--Except as provided in subsection (b), this
Act and the amendments made by this Act shall take effect on
the date of the enactment of this Act.
(b) Pay Adjustments.--
(1) In general.--Section 3 and the amendments made by
section 3 shall take effect on October 1, 2005, and shall
apply in the case of any annual pay adjustment taking effect
on or after that date.
(2) Interim authorities.--In connection with any pay
adjustment taking effect under section 732(c)(3) or
733(a)(3)(B) of title 31, United States Code, before October
1, 2005, the Comptroller General may by regulation--
(A) provide that such adjustment not be applied in the case
of any officer or employee whose performance is not at a
satisfactory level, as determined by the Comptroller General
for purposes of such adjustment; and
(B) provide that such adjustment be reduced if and to the
extent necessary because of extraordinary economic conditions
or serious budget constraints.
(3) Additional authority.--
(A) In general.--The Comptroller General may by regulation
delay the effective date of section 3 and the amendments made
by section 3 for groups of officers and employees that the
Comptroller General considers appropriate.
(B) Interim authorities.--If the Comptroller General
provides for a delayed effective date under subparagraph (A)
with respect to any group of officers or employees, paragraph
(2) shall, for purposes of such group, be applied by
substituting such date for ``October 1, 2005''.

The SPEAKER pro tempore. The amendment printed in the bill is
adopted.
The text of H.R. 2751, as amended, is as follows:

H.R. 2751

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

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.

SEC. 2. AMENDMENTS TO PUBLIC LAW 106-303.

(a) Authorities Made Permanent.--Sections 1 and 2 of Public
Law 106-303 (5 U.S.C. 8336 note and 5597 note) are amended by
striking ``for purposes of the period beginning on the date
of the enactment of this Act and ending on December 31,
2003'' each place it appears and inserting ``October 13,
2000''.
(b) Sense of Congress.--
(1) Voluntary early retirement authority.--Section 1 of
Public Law 106-303 is amended by adding at the end the
following:
``(e) Sense of Congress.--It is the sense of Congress that
the implementation of this section is intended to reshape the
General Accounting Office workforce and not downsize the
General Accounting Office workforce.''.
(2) Voluntary separation incentive payments.--Section 2 of
Public Law 106-303 is amended by adding at the end the
following:
``(g) Sense of Congress.--It is the sense of Congress that
the implementation of this section is intended to reshape the
General Accounting Office workforce and not downsize the
General Accounting Office workforce.''.
(c) Additional Limitation Relating to VSIPs.--Section 2(b)
of Public Law 106-303 is amended by striking paragraph (2)
and inserting the following:
``(2) subsection (a)(2)(G) of such section shall be
applied--
``(A) by construing the citations therein to be references
to the appropriate authorities in connection with employees
of the General Accounting Office; and
``(B) by deeming such subsection to be amended by striking
`Code.' and inserting `Code, or who, during the thirty-six
month period preceding the date of separation, performed
service for which a student loan repayment benefit was or is
to be paid under section 5379 of title 5, United States
Code.';''.

SEC. 3. ANNUAL PAY ADJUSTMENTS.

(a) Officers and Employees Generally.--Paragraph (3) of
section 732(c) is amended to read as follows:
``(3) except as provided under section 733(a)(3)(B) of this
title, basic rates of officers and employees of the Office
shall be adjusted annually to such extent as determined by
the Comptroller General, and in making that determination the
Comptroller General shall consider--
``(A) the principle that equal pay should be provided for
work of equal value within each local pay area;
``(B) the need to protect the purchasing power of officers
and employees of the Office, taking into consideration the
Consumer Price Index or other appropriate indices;
``(C) any existing pay disparities between officers and
employees of the Office and non-Federal employees in each
local pay area;
``(D) the pay rates for the same levels of work for
officers and employees of the Office and non-Federal
employees in each local pay area;
``(E) the appropriate distribution of agency funds between
annual adjustments under this section and performance-based
compensation; and
``(F) such other criteria as the Comptroller General
considers appropriate, including, but not limited to, the
funding level for the Office, amounts allocated for
performance-based compensation, and the extent to which the
Office is succeeding in fulfilling its mission and
accomplishing its strategic plan;

SEC. 4. PAY RETENTION.

[[Page H581]]

General shall be guided by the provisions of sections 5362
and 5363 of title 5.''.

SEC. 5. RELOCATION BENEFITS.

SEC. 6. INCREASED ANNUAL LEAVE FOR KEY EMPLOYEES.

Section 731 is amended by adding after subsection (f) (as
added by section 5 of this Act) the following:
``(g) The Comptroller General shall prescribe regulations
under which key officers and employees of the Office who have
less than 3 years of service may accrue leave in accordance
with section 6303(a)(2) of title 5, in those circumstances in
which the Comptroller General has determined such increased
annual leave is appropriate for the recruitment or retention
of such officers and employees. Such regulations shall define
key officers and employees and set forth the factors in
determining which officers and employees should be allowed to
accrue leave in accordance with this subsection.''.

SEC. 7. EXECUTIVE EXCHANGE PROGRAM.

Section 731 is amended by adding after subsection (g) (as
added by section 6 of this Act) the following:
``(h) The Comptroller General may by regulation establish
an executive exchange program under which officers and
employees of the Office may be assigned to private sector
organizations, and employees of private sector organizations
may be assigned to the Office, to further the institutional
interests of the Office or Congress, including for the
purpose of providing training to officers and employees of
the Office. Regulations to carry out any such program--
``(1) shall include provisions (consistent with sections
3702 through 3704 of title 5) as to matters concerning--
``(A) the duration and termination of assignments;
``(B) reimbursements; and
``(C) status, entitlements, benefits, and obligations of
program participants;
``(2) shall limit--
``(A) the number of officers and employees who are assigned
to private sector organizations at any one time to not more
than 15; and
``(B) the number of employees from private sector
organizations who are assigned to the Office at any one time
to not more than 30;
``(3) shall require that an employee of a private sector
organization assigned to the Office may not have access to
any trade secrets or to any other nonpublic information which
is of commercial value to the private sector organization
from which such employee is assigned;
``(4) shall require that, before approving the assignment
of an officer or employee to a private sector organization,
the Comptroller General shall determine that the assignment
is an effective use of the Office's funds, taking into
account the best interests of the Office and the costs and
benefits of alternative methods of achieving the same results
and objectives; and
``(5) shall not allow any assignment under this subsection
to commence after the end of the 5-year period beginning on
the date of the enactment of this subsection.
``(i) An employee of a private sector organization assigned
to the Office under the executive exchange program shall be
considered to be an employee of the Office for purposes of--
``(1) chapter 73 of title 5;
``(2) sections 201, 203, 205, 207, 208, 209, 603, 606, 607,
643, 654, 1905, and 1913 of title 18;
``(3) sections 1343, 1344, and 1349(b) of this title;
``(4) chapter 171 of title 28 (commonly referred to as the
`Federal Tort Claims Act') and any other Federal tort
liability statute;
``(5) the Ethics in Government Act of 1978 (5 U.S.C. App.);
``(6) section 1043 of the Internal Revenue Code of 1986;
and
``(7) section 27 of the Office of Federal Procurement
Policy Act (41 U.S.C. 423).''.

SEC. 8. REDESIGNATION.

(a) In General.--The General Accounting Office is hereby
redesignated the Government Accountability Office.
(b) References.--Any reference to the General Accounting
Office in any law, rule, regulation, certificate, directive,
instruction, or other official paper in force on the date of
enactment of this Act shall be considered to refer and apply
to the Government Accountability Office.

SEC. 9. PERFORMANCE MANAGEMENT SYSTEM.

Paragraph (1) of section 732(d) is amended to read as
follows:
``(1) for a system to appraise the performance of officers
and employees of the General Accounting Office that meets the
requirements of section 4302 of title 5 and in addition
includes--
``(A) a link between the performance management system and
the agency's strategic plan;
``(B) adequate training and retraining for supervisors,
managers, and employees in the implementation and operation
of the performance management system;
``(C) a process for ensuring ongoing performance feedback
and dialogue between supervisors, managers, and employees
throughout the appraisal period and setting timetables for
review;
``(D) effective transparency and accountability measures to
ensure that the management of the system is fair, credible,
and equitable, including appropriate independent
reasonableness, reviews, internal assessments, and employee
surveys; and
``(E) a means to ensure that adequate agency resources are
allocated for the design, implementation, and administration
of the performance management system;''.

SEC. 10. CONSULTATION.

Before the implementation of any changes authorized under
this Act, the Comptroller General shall consult with any
interested groups or associations representing officers and
employees of the General Accounting Office.

SEC. 11. REPORTING REQUIREMENTS.

(a) Annual Reports.--The Comptroller General shall
include--
(1) 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, a
summary review of all actions taken under sections 2, 3, 4,
6, 7, 9, and 10 of this Act during the period covered by such
report, including--
(A) the respective numbers of officers and employees--
(i) separating from the service under section 2 of this
Act;
(ii) receiving pay retention under section 4 of this Act;
(iii) receiving increased annual leave under section 6 of
this Act; and
(iv) engaging in the executive exchange program under
section 7 of this Act, as well as the number of private
sector employees participating in such program and a review
of the general nature of the work performed by the
individuals participating in such program;
(B) a review of all actions taken to formulate the
appropriate methodologies to implement the pay adjustments
provided for under section 3 of this Act, except that nothing
under this subparagraph shall be required if no changes are
made in any such methodology during the period covered by
such report; and
(C) an assessment of the role of sections 2, 3, 4, 6, 7, 9,
and 10 of this Act in contributing to the General Accounting
Office's ability to carry out its mission, meet its
performance goals, and fulfill its strategic plan; and
(2) in each report submitted to Congress under such section
719(a) after the effective date of section 3 of this Act and
before the close of the 5-year period referred to in
paragraph (1)--
(A) a detailed description of the methodologies applied
under section 3 of this Act and the manner in which such
methodologies were applied to determine the appropriate
annual pay adjustments for officers and employees of the
Office;
(B) the amount of the annual pay adjustments afforded to
officers and employees of the Office under section 3 of this
Act; and
(C) a description of any extraordinary economic conditions
or serious budget constraints which had a significant impact
on the determination of the annual pay adjustments for
officers and employees of the Office.
(b) Final Report.--Not later than 6 years after the date of
enactment of this Act, the Comptroller General shall submit
to Congress a report concerning the implementation of this
Act. Such report shall include--
(1) a summary of the information included in the annual
reports required under subsection (a);
(2) recommendations for any legislative changes to section
2, 3, 4, 6, 7, 9, or 10 of this Act; and
(3) any assessment furnished by the General Accounting
Office Personnel Appeals Board or any interested groups or
associations representing officers and employees of the
Office for inclusion in such report.
(c) Additional Reporting.--Notwithstanding any other
provision of this section, the reporting requirement under
subsection (a)(2)(C) shall apply in the case any report
submitted under section 719(a) of title 31, United States
Code, whether during the 5-year period beginning on the date
of enactment of this Act (as required by subsection (a)) or
at any time thereafter.

SEC. 12. TECHNICAL AMENDMENT.

Section 732(h)(3)(A) is amended by striking ``reduction
force'' and inserting ``reduction in force''.

SEC. 13. EFFECTIVE DATES.

(a) In General.--Except as provided in subsection (b), this
Act and the amendments made by this Act shall take effect on
the date of enactment of this Act.
(b) Pay Adjustments.--
(1) In general.--Section 3 of this Act and the amendments
made by that section shall take effect on October 1, 2005,
and shall apply in the case of any annual pay adjustment
taking effect on or after that date.
(2) Interim authorities.--In connection with any pay
adjustment taking effect under section 732(c)(3) or
733(a)(3)(B) of title 31, United States Code, before October
1, 2005, the Comptroller General may by regulation--
(A) provide that such adjustment not be applied in the case
of any officer or employee whose performance is not at a
satisfactory level, as determined by the Comptroller General
for purposes of such adjustment; and
(B) provide that such adjustment be reduced if and to the
extent necessary because of extraordinary economic conditions
or serious budget constraints.
(3) Additional authority.--
(A) In general.--The Comptroller General may by regulation
delay the effective date of section 3 of this Act and the
amendments made by that section for groups of officers and
employees that the Comptroller General considers appropriate.
(B) Interim authorities.--If the Comptroller General
provides for a delayed effective date under subparagraph (A)
with respect to any group of officers or employees, paragraph
(2) shall, for purposes of such group, be applied by
substituting such date for ``October 1, 2005''.

The SPEAKER pro tempore. The gentlewoman from Virginia (Mrs. Jo Ann

[[Page H582]]

Davis) and the gentleman from Illinois (Mr. Davis) each will control 30
minutes.
The Chair recognizes the gentlewoman from Virginia (Mrs. Jo Ann
Davis).

General Leave

Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I ask unanimous consent
that all Members may have 5 legislative days within which to revise and
extend their remarks and to include extraneous material on the subject
of the bill, H.R. 2751.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Virginia?
There was no objection.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I yield myself such time
as I may consume.
Mr. Speaker, I rise in support of H.R. 2751, the GAO Human Capital
Reform Act of 2003. I want to thank the leadership for bringing this
important legislation to the floor.
This legislation, which I introduced last year, has broad support in
both Houses and on both sides of the political aisle. It was crafted in
collaboration with Democrats on the Committee on Government Reform and
the Senate Governmental Affairs Committee.
In essence, H.R. 2751 expands the management flexibilities that the
GAO already has. Among its provisions, this legislation makes permanent
the GAO's authority to offer early retirement and buyouts in order to
provide GAO with the necessary tools to streamline and reshape its
workforce. The legislation enhances GAO's ability to reimburse
employees for relocation expenses and establishes an employee exchange
program with the private sector in areas of mutual concern and
positions where GAO has a supply-and-demand imbalance.
It also permits the Comptroller General to increase the annual leave
benefits for employees who joined the GAO in mid-career. Right now, for
example, even seasoned employees who joined the GAO with extensive
experience in the private sector are only entitled to 13 days of annual
leave for the first 3 years with the agency. That is the same amount of
leave that is given to a recent college graduate. Under this
legislation, they could receive up to 20 days a year.
Mr. Speaker, H.R. 2751 also changes the name of the organization from
the General Accounting Office to the Government Accountability Office,
which better reflects the agency's modern-day mission.
Most importantly, the GAO Human Capital Reform Act gives the
Comptroller General more authority to reward employees for good work
and establishes a meaningful pay-for-performance system. Annual pay
raises would be based on individual performance, also taking into
account inflation and differences in competitive compensation by
locality.
At both the Subcommittee on Civil Service and Agency Organization,
which I chair, and the full Committee on Government Reform, this
legislation received overwhelming bipartisan support. It is endorsed by
the Comptroller General, the GAO Employees Advisory Council, and by
outside observers of the civil service.
This legislation will be a great benefit to the GAO and to Congress,
which relies heavily on the expertise and skill of the GAO employees.
The GAO has been a leader in creating a performance-based environment
and will continue to do so when this bill becomes law. I urge passage
of H.R. 2751.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I would like to thank the gentleman from Virginia
(Chairman Tom Davis); the gentlewoman from Virginia (Chairwoman Jo Ann
Davis); the gentleman from California (Mr. Waxman), the ranking member;
and their respective staffs for working so diligently to improve the
General Accounting Office Human Capital Reform Act which we are
considering today.
I believe that GAO is a good demonstration project for reform that
may eventually be extended to the rest of the government. As a matter
of fact, in the November 2003 issue of Washingtonian magazine, the GAO
is listed as one of 50 great places to work in the D.C. area. GAO was
noted for a pay system that rewards top performance, stability, upward
mobility, and such benefits as repaying employees' student loans, on-
site child care, and Metro subsidies. This does not mean that GAO is
perfect, but it has set an example of how to prepare for and implement
human capital flexibilities.
Unfortunately, I cannot say that for the Department of Defense and a
host of other agencies that are asking for and receiving unprecedented
exemptions from title V. Most agencies are simply ill equipped to
manage such major reforms. We should be concentrating our efforts on
government-wide reforms rather than agency-by-agency requests.
Having said that, several improvements were made to the bill during
the subcommittee markup and subsequently by Ranking Member Waxman. The
original bill did not contain any reporting requirements. I offered an
amendment that requires GAO to submit an annual report to Congress on
its use of flexibilities under the bill. Additionally, the original
version of the bill only allowed enhanced annual leave for high-grade
managerial or supervisory positions. My amendment changed that so it
would apply to all GAO employees.
I also requested and received written assurance from the Comptroller
General that GAO would provide the Subcommittee on Civil Service and
Agency Organization with an annual report on pay adjustments received
by women minorities and veterans at the Government Accounting Office.
The gentleman from California (Mr. Waxman) insisted on additional
changes to the executive program that have been incorporated into the
bill. These changes include reducing the number of participants who can
participate in the program, having the program sunset after 5 years,
and ensuring that private employees working at GAO are subject to
Federal ethics and conflict-of-interest laws, and do not have access to
trade secrets. Now we have a responsibility to continue our oversight
of agencies like GAO that have received human capital flexibilities to
ensure that they are working and working in a fair and equitable
manner.
Finally, I would like to take note that this bill has bipartisan and
bicameral support, the result of doing civil service reform the right
way; and I trust that we will learn from that as we continue to reform
the government.
I support this bill and encourage my colleagues to do the same.
Mr. Speaker, I reserve the balance of my time.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I reserve the balance of
my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield such time as he may
consume to the gentleman from California (Mr. Waxman), the ranking
member of the Committee on Government Reform and Oversight.
Mr. WAXMAN. Mr. Speaker, I thank the gentleman for yielding me this
time.
The House is considering this bill, which would give personnel
flexibilities to the General Accounting Office. These flexibilities
will help GAO in the recruitment and retention of its employees which,
in turn, will allow GAO to do a better job in serving the Members of
the Congress.
In general, I believe civil service reform ought to be done on a
government-wide basis, not an agency-by-agency basis. A piecemeal
approach creates a hodgepodge of personnel systems which limits the
mobility of employees and increases the potential for unfair treatment.
Nevertheless, Comptroller General David Walker has made a very strong
case for why GAO should be granted the personnel flexibilities in this
bill. On that basis, I support the bill. I also believe that GAO would
be an appropriate place to experiment with these reforms before we
consider them for other agencies.
In developing this legislation, the Comptroller General consulted
with GAO's employee representatives, gave guarantees to employees about
their future pay, and worked with Members on both sides of the aisle in
the Congress of the United States and in both the House and in the
Senate. When the gentleman from Illinois (Mr. Davis),

[[Page H583]]

the ranking member of the Subcommittee on Civil Service, and I
expressed concerns about several provisions in the bill, the
Comptroller General worked to find language that we could support. The
end result is the bill that is before us today. It is a bipartisan
bill. It has been improved by compromise, and it is supported by every
member of our committee. For that reason, I would urge the Members of
the House to accept the legislation as well.
As other agencies approach Congress for personnel flexibilities in
the future, I hope they will look to GAO's consensus-building approach
as a model. I want to thank the Comptroller General, the gentleman from
Virginia (Chairman Tom Davis), and the gentlewoman from Virginia
(Chairwoman Jo Ann Davis) for their cooperation and, of course, our
ranking member, the gentleman from Illinois (Mr. Danny Davis). I urge
my colleagues to support the bill.

{time} 1030

Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I reserve the balance of
my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I would like to engage in a colloquy with the
gentlewoman from Virginia (Mrs. Jo Ann Davis) to clarify our
understanding regarding section 7 of this bill.
This section relates to the executive exchange program, which
authorizes a small number of private sector employees to work at GAO.
The bill states that these private sector detailees shall be considered
GAO employees for the purpose of several Federal ethics provisions. In
1979 and 1999, the Justice Department stated that GAO employees are
subject to 18 U.S.C. 208 and 209, which cover financial conflicts of
interest. The Comptroller General has confirmed that it is a long-
standing practice for GAO employees to be subject to these provisions.
Our understanding is that private sector detailees to GAO shall be
subject to the financial conflict of interest provisions in 18 U.S.C.
208 and 209. My question is, does the Chair of the Subcommittee on
Civil Service and Agency Organization have this same understanding?
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, will the gentleman yield?
Mr. DAVIS of Illinois. I yield to the gentlewoman from Virginia.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, yes, that is our
understanding as well.
Mr. DAVIS of Illinois. I thank the gentlewoman so very much, and I
continue to urge support for the bill.
Mr. Speaker, I have no further speakers, and I yield back the balance
of my time.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I thought we had one
other speaker on his way, but I would just urge that the House pass
H.R. 2751.
Mr. TOM DAVIS of Virginia. Mr. Speaker, please include the attached
exchange of letters between Chairman Bill Thomas of the Committee on
Ways and Means and myself in the Congressional Record at the end of the
debate on H.R. 2751.
House of Representatives,

Committee on Government Reform,

Washington, DC, January 28, 2004.
Hon. William M. Thomas,
Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Chairman Thomas: Thank you for your recent letter
regarding your committee's jurisdictional interest in H.R.
2751, the GAO Human Capital Reform Act of 2003. I appreciate
all of your efforts to ensure that the Government Accounting
Office has the resources it needs to effectively carry out
its responsibilities.
I acknowledge your committee's jurisdictional interest in
this legislation and appreciate your cooperation in allowing
speedy consideration of the bill. I agree that your decision
to forego further action on the bill will not prejudice the
Committee on Ways and Means with respect to its
jurisdictional prerogatives on this or similar legislation. I
will support your request for outside conferees should there
be a House-Senate conference on this or similar legislation.
Finally, I will include a copy of your letter and this
response in the Congressional Record when the House considers
the legislation.
Sincerely,
Tom Davis,
Chairman.
____

House of Representatives,

Committee on Ways and Means,

Washington, DC, January 28, 2004.
Hon. Tom Davis,
Chairman, Committee on Government Reform, Rayburn House
Office Building, Washington, DC.
Dear Chairman Davis: I am writing concerning H.R. 2751, the
``GAO Human Capital Reform Act of 2003,'' which was reported
by the Committee on Government on November 19, 2003.
As you know, the Committee on Ways and Means has
jurisdiction over matters concerning the Internal Revenue
Code. Sec. 7 of H.R. 2751 deems persons participating in the
Executive Exchange Program to be an ``employee of the General
Accounting Office'' for the purposes of section 1043 of the
Internal Revenue Code, which governs ethics-related
divestiture by government employees. However, in order to
expedite this legislation for floor consideration we will not
take action on this particular proposal. This is being done
with the understanding that it does not in any way prejudice
the Committee with respect to the appointment of conferees or
its jurisdictional prerogatives on this or similar
legislation.
I would appreciate your response to this letter, confirming
this understanding with respect to H.R. 2751, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration.
Best regards,
Bill Thomas,
Chairman.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I rise in strong support of
H.R. 2751, the GAO Human Capital Reform Act of 2003.
Over the last couple of years, the Government Reform Committee has
worked tirelessly to revitalize the federal civil service in an effort
to bring the Federal workforce into the 21st century. In November 2002,
Congress granted the new Department of Homeland Security the authority
to develop its own human resources management system, largely outside
of the confines of the 50-year-old Federal civil service system. In
June 2003, Congress authorized the Securities and Exchange Commission
to utilize streamlined hiring procedures to address critical staff
shortages at the Commission. In November 2003, Congress granted the
Defense Department authority similar to Homeland Security to develop a
human resources management system for its civilian workforce. In
January of this year, Congress authorized a number of new workforce
authorities for NASA that will enable the space agency to compete with
the private sector in recruiting and retaining a highly specialized
workforce.
Now GAO--a legislative branch agency that helped us to craft these
reforms--has asked Congress to provide it with some of the same
personnel flexibilities that we have provided to these other agencies.
Civil Service Subcommittee Chair Jo Ann Davis responded by introducing
H.R. 2751, which would provide GAO with the authority to offer early
buyout packages, base employee compensation on performance, offer
additional relocation benefits, offer more flexible annual leave
policies, and establish an executive exchange program with the private
sector.
H.R. 2751 was developed in coordination with the minority members of
the Government Reform Committee, the General Accounting Office and the
Senate Governmental Affairs Committee, all in a bipartisan manner. We
in this body rely on the GAO to ensure the performance and
accountability of the Federal Government, and this legislation will
assist the Comptroller General in ensuring a vibrant and effective
workforce to meet this important task.
I urge Members to support this important legislation.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I yield back the balance
of my time.
The SPEAKER pro tempore (Mr. LaHood). All time for debate has
expired.
Pursuant to the order of the House of Tuesday, February 24, the
previous question is ordered on the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this bill will be postponed.

____________________