[Senate Report 111-77]
[From the U.S. Government Publishing Office]


111th Congress 
 1st Session                     SENATE                          Report
                                                                 111-77
_______________________________________________________________________

                                     

                                                       Calendar No. 164

 
           FEDERAL EXECUTIVE BOARD AUTHORIZATION ACT OF 2009

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                 S. 806


   TO PROVIDE FOR THE ESTABLISHMENT, ADMINISTRATION, AND FUNDING OF 
            FEDERAL EXECUTIVE BOARDS, AND FOR OTHER PURPOSES




               September 22, 2009.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           JOHN McCAIN, Arizona
MARK L. PRYOR, Arkansas              GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana          JOHN ENSIGN, Nevada
CLAIRE McCASKILL, Missouri           LINDSEY GRAHAM, South Carolina
JON TESTER, Montana                  ROBERT F. BENNETT, Utah
ROLAND W. BURRIS, Illinois
MICHAEL F. BENNET, Colorado

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                       Jeffrey E. Greene, Counsel
    Jessica K. Nagasako, Professional Staff Member, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                    Lisa M. Nieman, Minority Counsel
Tara L. Shaw, Minority Counsel, Subcommittee on Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk


                                                       Calendar No. 164
111th Congress
                                 SENATE
                                                                 Report
 1st Session                                                     111-77

======================================================================




           FEDERAL EXECUTIVE BOARD AUTHORIZATION ACT OF 2009

                                _______
                                

               September 22, 2009.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 806]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 806) to provide for 
the establishment, administration, and funding of Federal 
Executive Boards, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................5
 IV. Section-by-Section Analysis......................................5
  V. Evaluation of Regulatory Impact..................................7
 VI. Congressional Budget Office Cost Estimate........................7
VII. Changes in Existing Law Made by the Bill, as Reported............9

                         I. Purpose and Summary

    The purpose of S. 806 is to provide a statutory basis for 
the establishment, administration, and funding of FEBs. FEBs, 
which have existed for almost half a century under executive 
branch authority, provide a forum for federal agencies to 
coordinate their regional activities outside of Washington, DC. 
S. 806 would put their establishment and administration into 
statute and provide for a mechanism to fund them.

              II. Background and Need for the Legislation

    In 1961, President Kennedy ``directed the Chairman of the 
Civil Service Commission to arrange for the establishment of a 
Board of Federal Executives in each of the Commission's 
administrative regions'' to ``provide means for closer 
coordination of Federal activities at the regional level.''\1\ 
As a result, FEBs exist today as ``a forum for communication 
and collaboration among Federal agencies outside of Washington, 
DC.''\2\ FEBs are currently located in Atlanta, Baltimore, 
Boston, Buffalo, Chicago, Cincinnati, Cleveland, Dallas-Fort 
Worth, Denver, Detroit, Honolulu, Houston, Kansas City, Los 
Angeles, Minnesota, Newark, New Mexico, New Orleans, New York 
City, Oklahoma, Oregon, Philadelphia, Pittsburgh, St. Louis, 
San Antonio, San Francisco, Seattle and South Florida, and help 
to coordinate the efforts of the almost 90 percent of federal 
employees who work outside the Washington, D.C. area.\3\
---------------------------------------------------------------------------
    \1\President John F. Kennedy, Memorandum on the Need for Greater 
Coordination of Regional and Field Activities of the Government, Nov. 
14, 1961, p. 1.
    \2\www.feb.gov.
    \3\Id.
---------------------------------------------------------------------------
    FEBs are composed of the heads of federal agency field 
offices\4\ and are overseen by OPM\5\ in accordance with 
federal regulations.\6\ FEBs are generally staffed by one or 
two full-time personnel\7\ and are involved in disseminating 
information about federal initiatives; sharing knowledge and 
best practices; providing training and alternative dispute 
resolution consortiums; communicating hazardous weather 
conditions and leave policies for federal employees; and 
responding to blood donation needs.\8\ Such activities have 
saved the federal government time and money; FEB-led 
alternative dispute resolution of cases in fiscal year 2008 
resulted in an estimated cost avoidance of more than $20 
million and FEB-provided training opportunities resulted in an 
estimated cost avoidance of more than $8 million.\9\
---------------------------------------------------------------------------
    4 U.S. Government Accountability Office, The Federal Workforce, 
Additional Steps Needed to Take Advantage of Federal Executive Boards' 
Ability to Contribute to Emergency Operations, GAO-07-515, p. 7.
    \5\http://www.feb.gov/overview.asp.
    \6\5 C.F.R. 960.
    \7\Supra n. 4 at 2.
    \8\http://www.feb.gov/overview.asp.
    \9\Federal Executive Board Network, Fiscal Year 2008 Annual Report, 
p. 16 (Apr. 2009).
---------------------------------------------------------------------------
    FEBs' work has also helped to prepare the federal workforce 
for emergencies; in fiscal year 2008 FEBs partnered with the 
Centers for Disease Control to provide briefings to federal, 
state and local communities on closed points of dispensing 
sites, which are public sites set up to dispense medication to 
employees in the event of a health emergency,\10\ and 
facilitated an emergency tabletop exercise to test agency 
continuity plans as well as evacuation, response and recovery 
procedures.\11\ Additionally, as part of the federal 
government's efforts relating to Hurricanes Gustav and Ike in 
2008, FEBs communicated with federal field offices about the 
storms' effects on agency readiness and operating status and 
provided guidance and assistance to such field offices to help 
them reconstitute following the storms.\12\ According to Dennis 
W. Bruhl, the District Manager of the Social Security 
Administration in Covington, Louisiana, this assistance from 
FEBs ``was invaluable'' in that it ``kept the lines of 
communication open between Federal agencies serving New Orleans 
and the surrounding area, and . . . kept us all apprised of the 
latest information regarding the storm.''\13\
---------------------------------------------------------------------------
    \10\Id. at p. 6.
    \11\Id. at p. 7.
    \12\Id. at p. 8.
    \13\Id. at p. 9.
---------------------------------------------------------------------------
    In 2004, the Government Accountability Office (GAO) 
released a report on the continuity of operations planning 
(COOP) in the federal sector, which recommended that OPM and 
the Federal Emergency Management Agency (FEMA) coordinate their 
efforts to improve guidance to federal agencies on emergency 
preparation and COOP.\14\ GAO observed that although FEBs are 
``not specifically tasked with coordinating emergency 
preparedness efforts, including COOP, FEBs are uniquely 
positioned to do so, given their general responsibility for 
improving coordination among federal activities in areas 
outside of Washington, D.C.''\15\ GAO recommended that OPM 
clearly define the role of FEBs in improving emergency 
preparedness coordination, including COOP, for areas outside of 
Washington, D.C.\16\
---------------------------------------------------------------------------
    \14\U.S. Government Accountability Office, Human Capital, 
Opportunities to Improve Federal Continuity Planning Guidance, GAO-04-
384, pp. 4-5.
    \15\Id. at Highlights Page.
    \16\Id. at 27.
---------------------------------------------------------------------------
    In 2007, GAO further reported on FEBs' work in performing 
emergency activities that advance the missions of both FEBs and 
FEMA, as well as FEBs' efforts to strengthen management 
practices, improve intergovernmental communication and 
participate in local affairs.\17\ GAO believed that FEBs could 
be ``a particularly valuable asset in pandemic preparedness and 
response'' because ``[w]ith the greatest burden of pandemic 
response resting on the local communities, the FEBs' outreach 
and their ability to coordinate across organizations suggest 
that they may be an important resource in preparing for and 
responding to a pandemic.''\18\
---------------------------------------------------------------------------
    \17\Supra n. 4, Highlights Page.
    \18\Id.
---------------------------------------------------------------------------
    However, GAO also noted that ``FEBs have no congressional 
charter and . . . rely on voluntary contributions from their 
member agencies'' to fund their activities.\19\ GAO found that 
this uncertainty of FEB funding impacts FEBs' ``ability to plan 
for and commit to providing emergency support services'' and 
recommended that OPM ``develop a proposal to address the 
uncertainty of funding sources for'' FEBs.\20\
---------------------------------------------------------------------------
    \19\Id.
    \20\Id.
---------------------------------------------------------------------------
    At a 2007 hearing to review GAO's findings and 
recommendations, OPM Associate Director Kevin Mahoney noted the 
important role FEBs play in building understanding and teamwork 
among federal agencies in the field, ensuring the security and 
safety of the federal workforce and contributing to emergency 
preparedness.\21\ Associate Director Mahoney specifically 
testified about the key role the New Orleans FEB played during 
Hurricane Katrina, which included coordinating with OPM and 
FEMA to communicate issues of concern regarding the federal 
workforce; organizing conference calls among agency executives 
to share federal workforce information to and from Washington, 
D.C.; and helping to identify the needs and the status of local 
federal workers and their families.\22\ FEMA Regional Director 
Art Cleaves similarly testified about FEBs' role as a 
``critical part of preparedness in response, recovery, 
mitigation, and in particular continuity of operations and 
continuity of government.''\23\ Also at the hearing, GAO 
Director of Strategic Issues Bernice Steinhardt again 
highlighted the need for OPM to address FEBs' funding 
uncertainties.\24\
---------------------------------------------------------------------------
    \21\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on The Role of Federal Executive Boards in 
Pandemic Preparedness, S. Hrg. 110-451 (Sept. 28, 2007), p. 5.
    \22\Id.
    \23\Id. at 7.
    \24\Id. at 4.
---------------------------------------------------------------------------
    Thereafter, OPM submitted a legislative proposal to the 
Senate entitled ``Federal Executive Board Authorization Act of 
2008.''\25\ S. 806 is based on that proposal. It statutorily 
authorizes the establishment of FEBs and provides for their 
management by OPM. It also provides for interagency funding for 
FEBs.
---------------------------------------------------------------------------
    \25\Michael W. Hager, Office of Personnel Management Acting 
Director, letter to the Honorable Richard Cheney, President of the 
Senate, November 19, 2008.
---------------------------------------------------------------------------
    Specifically, S. 806 calls on the Director of OPM to 
determine where to establish FEBs and requires the Director to 
consult with agencies in making that determination. It leaves 
in place those FEBs OPM already had created before the 
enactment of the bill, and subjects them to the law's new 
provisions. The bill also states that FEBs shall consist of 
senior officials from appropriate agencies in FEB areas. 
Additionally, S. 806 authorizes the Director of OPM to 
establish staffing policies for FEBs; designate an agency to 
staff each FEB; and establish communications policies, 
performance standards, and accountability initiatives for FEBs.
    S. 806 also requires each FEB to adopt by-laws or other 
rules for its internal governance; elect a Chairman from among 
its members; provide a forum for the exchange of information; 
and develop coordinated approaches to the development and 
operation of programs that have common characteristics. 
Additionally, FEBs would be required to communicate management 
initiatives and other concerns from Washington, D.C. to the 
field and develop relationships with state and local 
governments and private sector organizations.
    Lastly, S. 806 provides for a steady funding stream for 
FEBs to address the concerns raised by GAO in its 2007 report 
and at the 2007 hearing. More specifically, S. 806 establishes 
a fund for FEB staffing and operating expenses, which would be 
administered by OPM and would consist of contributions from 
each agency participating in FEBs. Agency contributions would 
be determined by a formula established by the Director of OPM 
in consultation with participating agencies and the Office of 
Management and Budget. That formula must take into account each 
agency's number of employees in areas served by FEBs. S. 806 
also requires OPM to pay for its own administrative and 
oversight activities relating to FEBs.
    On July 28, 2009, OPM Director John Berry expressed support 
for S. 806, writing, ``the stability of an express statutory 
authority as provided by S. 806 can only enhance the 
capabilities of [FEBs] to contribute to the coordination and 
operation of Federal programs in meaningful ways.''\26\
---------------------------------------------------------------------------
    \26\John Berry, Office of Personnel Management Director, letter to 
the Honorable George V. Voinovich, Ranking Member, Subcommittee on 
Oversight of Government Management, the Federal Workforce, and the 
District of Columbia, July 28, 2009.
---------------------------------------------------------------------------

                        III. Legislative History

    On April 2, 2009, S. 806 was introduced by Senator George 
V. Voinovich and was referred to the Committee on Homeland 
Security and Governmental Affairs. Senators Daniel K. Akaka and 
Mary L. Landrieu are cosponsors of the legislation.
    On July 29, 2009, the Committee on Homeland Security and 
Governmental Affairs ordered S. 806, as amended by a Voinovich-
Akaka substitute amendment, reported favorably by voice vote. 
The Voinovich-Akaka amendment makes technical changes to S. 806 
based on guidance from OPM and FEMA, and also requires OPM to 
report to Congress on costs associated with essential FEB 
functions, including basic staffing and operating expenses. The 
members present were Chairman Lieberman and Senators Akaka, 
Carper, Pryor, Landrieu, McCaskill, and Burris; Ranking 
Minority Member Collins and Senators Coburn and Voinovich.

                    IV. Section-by-Section Analysis


Section 1. Short title

    This section establishes the title of the act as the 
``Federal Executive Board Authorization Act of 2009.''

Section 2. Federal Executive Boards

    This section adds a new section 1106 to title 5 of the 
United States Code entitled ``Federal Executive Boards.''
    The new section 1106(a) describes the section's purposes as 
to strengthen the coordination of federal government 
activities, facilitate interagency collaboration to improve the 
efficiency and effectiveness of federal programs, facilitate 
communication and collaboration on federal activities outside 
the Washington, D.C. area, and provide stable funding for FEBs.
    A new section 1106(b) defines ``agency'' as an Executive 
agency as defined in 5 U.S.C. 105, but excluding GAO, and 
``Director'' as the Director of OPM. Section 1106(b) also 
defines a ``Federal Executive Board'' as an interagency entity 
established by the Director of OPM, in consultation with the 
headquarters of appropriate federal agencies, in an area with a 
high concentration of federal employees outside the Washington, 
D.C. area whose purpose is to strengthen the management and 
administration of federal activities and coordination among 
local federal offices to implement national initiatives in that 
area.
    In addition, a new section 1106(c) authorizes FEBs by 
requiring the Director of OPM to establish FEBs in areas 
outside the Washington, D.C. area. It does not require the re-
establishment of FEBs previously created by the OPM Director. 
Section 1106(c) provides that each FEB shall consist of 
appropriate senior officers for each agency in the FEB's area 
who may designate another senior officer in the agency as an 
alternate representative to attend meetings and otherwise 
represent the agency on the FEB. To ensure that FEBs are not 
unnecessarily created, the new section 1106(c) also provides 
that in determining the locations of FEBs, the Director of OPM 
must consider whether an FEB exists in the area on the date of 
enactment of S. 806, whether a geographic area has a strong, 
viable, and active Federal Executive Association that petitions 
OPM to become an FEB, and such other factors as the Director of 
OPM and the headquarters of appropriate agencies consider 
relevant. Further, the section requires the Director of OPM to 
consult with the headquarters of appropriate agencies before 
establishing FEBs that are not in existence on the date of 
enactment of S. 806.
    A new section 1106(d) provides for the administration and 
oversight of FEBs by the Director of OPM. Specifically, the 
Director of OPM is tasked with establishing staffing policies 
for FEBs in consultation with the headquarters of agencies 
participating in FEBs; designating an agency to staff each FEB 
based on recommendations from that FEB; establishing 
communications policies for dissemination of information to 
federal agencies; establishing performance standards for FEB 
staff in consultation with the headquarters of appropriate 
agencies; developing accountability initiatives to ensure FEBs 
are meeting performance standards; and administering FEB 
funding. To provide for continuity of staffing at existing 
FEBs, section 1106(d) also provides that in making staffing 
designations, the Director of OPM must give preference to 
agencies already staffing FEBs.
    Section 1106(e) is added to set forth the governance and 
activities of FEBs, similar to current provisions in the Code 
of Federal Regulations governing FEBs, including the 
requirements that each FEB adopt by-laws or other internal 
governance rules that are approved by the Director of OPM and 
elect a Chairperson from among its members to serve a set term. 
Also consistent with the Code of Federal Regulations, Section 
1106(e) provides that FEBs are to serve as instruments of 
outreach for the national headquarters of agencies relating to 
agency activities in the FEB's area; provide a forum for the 
exchange of information between the national headquarters of 
agencies and the field and among field elements in the FEB's 
area; develop coordinated approaches to the development and 
operation of programs in the FEB's area that have common 
characteristics; communicate management initiatives and other 
concerns from federal officers and employees in the Washington, 
D.C. area to federal officers and employees in the FEB's area; 
develop relationships with state and local governments and 
nongovernmental organizations to help coordinate agency 
outreach; and take other actions agreed to between the FEB and 
the Director of OPM.
    In new Section 1106(f), the Director of OPM is directed to 
establish a fund at OPM to finance essential FEB functions, 
including basic staffing and operating expenses for each FEB. 
The Director of OPM is precluded from using monies in the fund 
to finance OPM's costs relating to its administration and 
oversight of FEBs and instead must pay such costs from its 
direct appropriations. Section 1106(f) provides that each 
agency participating in FEBs must contribute to the fund in 
amounts determined by a formula established by the Director of 
OPM in consultation with the headquarters of contributing 
agencies and the Office of Management and Budget; specifies 
that such formula must consider the number of employees in each 
agency in all geographic areas served by FEBs; and ensures that 
each agency's contribution to the fund is recalculated at least 
every two years to account for changes in staffing levels at 
any given agency in any given area. Additionally, section 
1106(f) gives the Director of OPM the discretion to accept in-
kind contributions from agencies in lieu of monetary 
contributions to the FEB fund, such as contributions of office 
space from the General Services Administration. Pursuant to 
section 1106(f), any unobligated and unexpended balances in the 
fund that are in excess of amounts needed for essential FEB 
staffing and operating expenses are to be allocated by the 
Director of OPM to FEBs for authorized activities and other 
priorities such as conducting training; such monies must be 
allocated in consultation with the headquarters of agencies 
participating in FEBs.
    New section 1106(g) requires the Director of OPM to report 
annually to Congress and federal agencies about FEB programs 
and budgets.
    Also, a new section 1106(h) requires the Director of OPM to 
prescribe regulations to carry out section 1106.
    In addition, this section requires the Director of OPM to 
submit a report to the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on 
Oversight and Government Reform of the House of Representatives 
within 60 days of enactment of S. 806. That report must include 
a description of essential FEB functions, details of basic 
staffing requirements for each FEB, estimates of basic staffing 
and operating expenses for each FEB, and a comparison of basic 
staffing and operating expenses for FEBs operating before and 
after enactment of S. 806. The Committee expects that this 
report will indicate that OPM proposes staffing each FEB with 
two full time employees and providing an annual operating 
budget of $50,000 for each FEB. The Committee anticipates that 
the costs of operating FEBs before and after enactment of this 
Act will be very similar.
    Lastly, this section makes technical and conforming 
amendments to the table of sections for chapter 11 of title 5 
of the United States Code.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office (CBO) states that there are no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and no costs on State, local, or 
tribal governments. The legislation contains no other 
regulatory impact.

             VI. Congressional Budget Office Cost Estimate

                                                    August 7, 2009.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 806, the Federal 
Executive Board Authorization Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact for this 
estimate is Matthew Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 806--Federal Executive Board Authorization Act of 2009

    Summary: S. 806 would authorize the Office of Personnel 
Management (OPM) to establish Federal Executive Boards (FEBs) 
to coordinate government activities outside the Washington, 
D.C., metropolitan area. Individual agencies that participate 
in the program would be required to make contributions to a 
fund established in the bill to cover the costs of FEB 
operations.
    CBO estimates that implementing this legislation would cost 
about $2 million in 2010 and $14 million over the 2010-2014 
period, assuming appropriation of the necessary amounts. In 
addition, S. 806 could affect off-budget discretionary spending 
by the Social Security Administration, but we estimate that any 
increase would be less than $500,000 in any year and over the 
2010-2014 period.
    CBO estimates that any impact on direct spending from 
enacting S. 806 would be negligible. The bill would not affect 
revenues.
    S. 806 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 806 is shown in the following table. The 
costs of this legislation fall within budget function 800 
(general government) and any budget function that contains a 
salaries and expense account for an agency participating in the 
FEB program.

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2010     2011     2012     2013     2014   2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        2        3        3        3        3        14
Estimated Outlays.......................................        2        3        3        3        3        14
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
806 will be enacted near the beginning of fiscal year 2010 and 
that spending will follow historical patterns for similar 
programs.
    Federal Executive Boards were established by Presidential 
Directive in 1961 to improve cooperation and communication 
among federal agencies for activities outside of Washington, 
D.C. OPM is responsible for the organizational and programmatic 
activities of 28 FEBs located in areas with significant numbers 
of federal employees. The FEBs receive no specific 
appropriation but are funded by their local host agency or 
department. The program cost $5 million in 2008.
    S. 806 would establish statutory authority for the FEB 
program and change the way the boards are administered and 
funded. The bill would create uniform staffing and reporting 
requirements for all FEBs; currently, each board is staffed 
differently based on funding made available by its host agency. 
The legislation also would require participating agencies to 
make contributions to a new fund established to cover the costs 
of each FEB. Contributions would be determined by a formula 
based on the number of federal employees each agency has in an 
area served by an FEB.
    Based on information from OPM regarding the current costs 
of operating FEBs and the new staffing and administrative 
requirements under S. 806, CBO estimates that implementing S. 
806 would cost an additional $2 million in 2010 and $14 million 
over the 2010-2014 period.
    Enacting the bill also could affect direct spending by 
agencies not funded through annual appropriations (such as the 
Tennessee Valley Authority or the U.S. Postal Service). CBO 
estimates, however, that any increase in spending by those 
agencies would not be significant or would be offset by 
corresponding increases in rates charged by those entities.
    Intergovernmental and private-sector mandates: S. 806 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Spending: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle; Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

       VII. Changes in Existing Law Made By the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows: 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           UNITED STATES CODE

             TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES

          PART II. CIVIL SERVICE FUNCTIONS AND RESPONSIBLITIES


               CHAPTER 11. OFFICE OF PERSONNEL MANAGEMENT


SEC.

           *       *       *       *       *       *       *


1106. FEDERAL EXECUTIVE BOARDS.

           *       *       *       *       *       *       *


SEC. 1106. FEDERAL EXECUTIVE BOARDS.

    (a) Purposes.--The purposes of this section are to--
          (1) strengthen the coordination of Government 
        activities;
          (2) facilitate interagency collaboration to improve 
        the efficiency and effectiveness of Federal programs;
          (3) facilitate communication and collaboration on 
        Federal activities outside the Washington, D.C. 
        metropolitan area; and
          (4) provide stable funding for Federal Executive 
        Boards.
    (b) Definitions.--In this section:
          (1) Agency.--The term `agency'--
                  (A) means an Executive agency as defined 
                under section 105; and
                  (B) shall not include the Government 
                Accountability Office.
          (2) Director.--The term `Director' means the Director 
        of the Office of Personnel Management.
          (3) Federal executive board.--The term `Federal 
        Executive Board' means an interagency entity 
        established by the Director, in consultation with the 
        headquarters of appropriate agencies, in a geographic 
        area with a high concentration of Federal employees 
        outside the Washington, D.C. metropolitan area to 
        strengthen the management and administration of agency 
        activities and coordination among local Federal 
        officers to implement national initiatives in that 
        geographic area.
    (c) Establishment.--
          (1) In general.--The Director shall establish Federal 
        Executive Boards in geographic areas outside the 
        Washington, D.C. metropolitan area. Before establishing 
        Federal Executive Boards that are not in existence on 
        the date of enactment of this section, the Director 
        shall consult with the headquarters of appropriate 
        agencies to determine the number and location of the 
        Federal Executive Boards.
          (2) Membership.--Each Federal Executive Board for a 
        geographic area shall consist of an appropriate senior 
        officer for each agency in that geographic area. The 
        appropriate senior officer may designate, by title of 
        office, an alternate representative who shall attend 
        meetings and otherwise represent the agency on the 
        Federal Executive Board in the absence of the 
        appropriate senior officer. An alternate representative 
        shall be a senior officer in the agency.
          (3) Location of federal executive boards.--In 
        determining the location for the establishment of 
        Federal Executive Boards, the Director shall consider--
                  (A) whether a Federal Executive Board exists 
                in a geographic area on the date of enactment 
                of this section;
                  (B) whether a geographic area has a strong, 
                viable, and active Federal Executive 
                Association;
                  (C) whether the Federal Executive Association 
                of a geographic area petitions the Director to 
                become a Federal Executive Board; and
                  (D) such other factors as the Director and 
                the headquarters of appropriate agencies 
                consider relevant.
    (d) Administration and Oversight.--
          (1) In general.--The Director shall provide for the 
        administration and oversight of Federal Executive 
        Boards, including--
                  (A) establishing staffing policies in 
                consultation with the headquarters of agencies 
                participating in Federal Executive Boards;
                  (B) designating an agency to staff each 
                Federal Executive Board based on 
                recommendations from that Federal Executive 
                Board;
                  (C) establishing communications policies for 
                the dissemination of information to agencies;
                  (D) in consultation with the headquarters of 
                appropriate agencies, establishing performance 
                standards for the Federal Executive Board 
                staff;
                  (E) developing accountability initiatives to 
                ensure Federal Executive Boards are meeting 
                performance standards; and
                  (F) administering Federal Executive Board 
                funding through the fund established in 
                subsection (f).
          (2) Staffing.--In making designations under paragraph 
        (1)(B), the Director shall give preference to agencies 
        staffing Federal Executive Boards.
    (e) Governance and Activities.--Each Federal Executive 
Board shall--
          (1) subject to the approval of the Director, adopt 
        by-laws or other rules for the internal governance of 
        the Federal Executive Board;
          (2) elect a Chairperson from among the members of the 
        Federal Executive Board, who shall serve for a set 
        term;
          (3) serve as an instrument of outreach for the 
        national headquarters of agencies relating to agency 
        activities in the geographic area;
          (4) provide a forum for the exchange of information 
        relating to programs and management methods and 
        problems--
                  (A) between the national headquarters of 
                agencies and the field; and
                  (B) among field elements in the geographic 
                area;
          (5) develop local coordinated approaches to the 
        development and operation of programs that have common 
        characteristics;
          (6) communicate management initiatives and other 
        concerns from Federal officers and employees in the 
        Washington, D.C. area to Federal officers and employees 
        in the geographic area to achieve better mutual 
        understanding and support;
          (7) develop relationships with State and local 
        governments and nongovernmental organizations to help 
        in coordinating agency outreach; and
          (8) take other actions as agreed to by the Federal 
        Executive Board and the Director.
    (f) Funding.--
          (1) Establishment of fund.--The Director shall 
        establish a fund within the Office of Personnel 
        Management for financing essential Federal Executive 
        Board functions--
                  (A) including basic staffing and operating 
                expenses; and
                  (B) excluding the costs of the Office of 
                Personnel Management relating to administrative 
                and oversight activities conducted under 
                subsection (d).
          (2) Deposits.--There shall be deposited in the fund 
        established under paragraph (1) contributions from the 
        headquarters of each agency participating in Federal 
        Executive Boards, in an amount determined by a formula 
        established by the Director, in consultation with the 
        headquarters of such agencies and the Office of 
        Management and Budget.
          (3) Contributions.--
                  (A) Formula.--The formula for contributions 
                established by the Director shall consider the 
                number of employees in each agency in all 
                geographic areas served by Federal Executive 
                Boards. The contribution of the headquarters of 
                each agency to the fund shall be recalculated 
                at least every 2 years.
                  (B) In-kind contributions.--At the sole 
                discretion of the Director, the headquarters of 
                an agency may provide in-kind contributions 
                instead of providing monetary contributions to 
                the fund.
          (4) Use of excess amounts.--Any unobligated and 
        unexpended balances in the fund which the Director 
        determines to be in excess of amounts needed for 
        essential Federal Executive Board functions shall be 
        allocated by the Director, in consultation with the 
        headquarters of agencies participating in Federal 
        Executive Boards, among the Federal Executive Boards 
        for the activities under subsection (e) and other 
        priorities, such as conducting training.
          (5) Administrative and oversight costs.--The Office 
        of Personnel Management shall pay for costs relating to 
        administrative and oversight activities conducted under 
        subsection (d) from appropriations made available to 
        the Office of Personnel Management.
    (g) Reports.--The Director shall submit annual reports to 
Congress and agencies on Federal Executive Board program 
outcomes and budget matters.
    (h) Regulations.--The Director shall prescribe regulations 
necessary to carry out this section.

                                  
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