[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[House]
[Pages 2379-2383]
[From the U.S. 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 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

[[Page 2380]]

     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.

       (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.

       (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;

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

     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

[[Page 2381]]

     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 
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

[[Page 2382]]

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), 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

[[Page 2383]]

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. 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.

                          ____________________