[Federal Register Volume 61, Number 56 (Thursday, March 21, 1996)]
[Rules and Regulations]
[Pages 11499-11501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6916]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 56 / Thursday, March 21, 1996 / Rules 
and Regulations  

[[Page 11499]]


OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 330, 333, and 335

RIN 3206-AH25


Agency Funding for Federal Employment Information

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing final 
regulations requiring each agency to pay a fee for its share of the 
cost of providing employment information through OPM to Federal 
employees and the public. The regulations implement a permanent 
statutory provision of Public Law 104-52, which authorizes OPM to 
charge fees to agencies to pay the cost of providing Federal employment 
information and related services. The fee for FY 96 will be based on 
each agency's proportionate share of the Federal competitive service 
workforce as of March 31, 1995, including all permanent and 
nonpermanent employees.

EFFECTIVE DATE: March 21, 1996.

FOR FURTHER INFORMATION CONTACT:
Richard Whitford on 202-606-2525, TDD 202-606-0591, or FAX 202-606-
5049.

SUPPLEMENTARY INFORMATION: The Treasury, Postal Service, and General 
Government Appropriations Act, 1996 (Pub. L. 104-52, November 19, 1995) 
shifts the funding for the Federal employment information function from 
OPM appropriations to a combination of OPM appropriations and fees for 
services to be paid by agencies into OPM's revolving fund.

Employment Information

    Under 5 U.S.C. 3327, agencies must notify OPM of (1) competitive 
examinations and (2) vacancies in the competitive service and Senior 
Executive Service for which the agency will consider applicants from 
outside the Federal service. Under 5 U.S.C. 3330, agencies must notify 
OPM of competitive service job announcements open to applicants outside 
an agency's own workforce. Under both laws, OPM is responsible for 
disseminating the information to the public.
    Agencies also are required by the Interagency Career Transition 
Assistance Plan for Displaced Employees in 5 CFR part 330 (60 FR 67281, 
December 29, 1995) to notify OPM of competitive service vacancies open 
to candidates outside an agency's workforce, including temporary 
vacancies lasting 90 days or more. OPM makes this information available 
to assist displaced employees in finding employment. The Plan 
implemented, in part, the President's memorandum of September 12, 1995, 
entitled ``Career Transition Assistance for Federal Employees.''
    In addition to carrying out the obligations discussed above, OPM 
provides employment information to support outplacement services of 
agency career transition centers. OPM also responds to a large volume 
of inquiries from the public, Federal employees, Congressional offices, 
and others on a broad range of employment topics.
    Public Law 104-52 amended 5 U.S.C. 3330, which addresses 
competitive service announcements, to authorize OPM to charge fees to 
agencies to pay the cost of providing services under section 3330 and 
for related Federal employment information.

Proposed Regulations and Comments

    On January 8, 1996, OPM issued proposed regulations at 61 FR 546 to 
implement the new funding arrangement. We proposed that fees for FY 96 
be based on each agency's proportionate share of the Federal 
competitive service workforce as of March 31, 1995, including all 
permanent and nonpermanent employees. We received written comments from 
five agencies.
    One agency disagreed with the proposal to base fees on each 
agency's proportionate share of competitive service employees and 
suggested that fees be based on the number of inquiries handled 
annually. The commenter believes the OPM proposal would cause smaller 
agencies to subsidize larger agencies that use the OPM services more 
frequently.
    OPM believes that a fee based on employment levels is fair. Such a 
funding mechanism reflects the centralized recruitment benefits to an 
agency, employment services to its employees, and dissemination of 
information and responses to a high volume of inquiries to the general 
public that otherwise would go to individual agencies.
    OPM can identify the number of inquiries handled through its 
employment information system but not the source of contacts nor the 
agencies of interest to individual job seekers. Furthermore, there is 
no evidence that larger agencies make relatively greater use of OPM's 
employment information system than smaller agencies do.
    Three agencies disagreed with the use of employment levels as of 
March 31, 1995, and suggested, respectively, mid-September 1995, 
October 31, 1995, or March 31, 1996, as more appropriate for the period 
in which services are provided. OPM has retained March 31, 1995. If 
future agency fees are based on employment levels, OPM will need to 
notify agencies of their share by the third quarter of the fiscal year 
preceding the one in which the fee is due to allow for agency budget 
planning. Employment levels will be taken from OPM's Central Personnel 
Data File (CPDF). Because agencies transmit personnel actions to CPDF 
on a quarterly basis, the most recent available data will be as of 
March 31, of each year.
    An official from a component of a department commented that fees 
based on employment levels as of March 31 would not be appropriate for 
his organization because in a recent reorganization a considerable 
number of employees were transferred to a different component. OPM will 
notify each agency/department headquarters of its total agency fee 
(unless an agency requests otherwise). How the total fee is assessed 
among the components will be an internal matter for each agency.
    One agency recommended that assessment be waived for any agency 
that does not have an appropriation for the current year. While we 
understand the concerns of agencies under a continuing resolution, we 
do not believe an exemption would be equitable to

[[Page 11500]]
other agencies--which also may be operating under a reduced 
appropriation.
    Another agency suggested that it be given the option of using 
either OPM employment information services or developing its own 
recruitment and outreach programs. The OPM employment information 
function complements individual agency recruitment programs. However, 
agencies do not have an option under 5 U.S. 3327 and 3330; they are 
required to report examinations and vacancies to OPM. Nor does OPM have 
an option. The law requires OPM to disseminate employment information 
to the public, and Congress has made clear through Public Law 104-52 
that agencies are to share in the funding of that responsibility.
    The Administration and Congress clearly favor a single job 
information system over multiple agency-based systems. Beginning with 
National Performance Review recommendations to the President's 
initiative on career transition assistance and recent amendments to 
title 5, U.S.C, the support for an interagency information system has 
been clear and consistent. Thus, as agencies undergo downsizing and 
restructuring, a major consideration should be the appropriateness and 
cost-effectiveness of developing or operating duplicative employment 
information systems. Agencies also should note that adjustments to 
personnel reductions may be eased through more effective use of the 
Federal Employment Information System. Agencies may take the following 
steps:
     Refer inquiries about vacancies and employment that can be 
handled by OPM's automated Governmentwide employment information system 
directly to it, such as requests for job announcements and application 
materials.
     Make a single entry of vacancies to the Federal Employment 
Information System instead of mailing hard copy announcements to 
multiple recruiting points or third-party providers, or using paid 
advertising.
     When entering jobs into the database, make maximum use of 
the ``remarks'' section of the job record to provide information and 
minimize job seekers' follow-up calls to the personnel office. Also, to 
further minimize the number of inquiries to agencies and reduce 
personnel office workload, OPM will provide job announcements directly 
to job seekers (from electronic files of job announcements agencies 
transmit to OPM).
    OPM recognizes that not every agency is prepared at present to 
provide electronic files of job announcements. We plan to work with 
those agencies during a transition period in which we will continue to 
provide entry assistance. In light of the benefits that will accrue to 
agencies through electronic transmission, our goal is that they acquire 
the necessary capability and assume the data entry and vacancy 
announcement uploading functions by May 1, 1996.
    One agency commented that the proposal removes agency flexibility 
to determine how best to notify State employment offices of 
examinations/vacancies, and that agency discretion be restored because 
agency funds are affected. Section 3327 of title 5, U.S.C., requires 
OPM to make this information available to State Employment Service 
offices. Since 1989, OPM has met this statutory requirement through 
regular electronic reports of job listings in the Federal Employment 
Information System to America's Job Bank, a Department of Labor funded 
organization that disseminates vacancy information to State Employment 
Service offices. Agencies need take no further action. Any attempt to 
delete selected agency data, as proposed, would have an adverse impact 
on this cost-effective approach as it now operates.
    A competitive service agency suggested that excepted service 
agencies also be assessed for their fair share because they too benefit 
from the system. OPM lacks legal authority to assess excepted agencies 
because 5 U.S.C. 3327 and 3330 do not cover excepted positions.

Final Regulations

    OPM is adopting the regulations as proposed with only minor 
editorial changes. The fee for FY 96 will be based on each agency's 
proportionate share of the Federal competitive service workforce as of 
March 31, 1995, including all permanent and nonpermanent employees. OPM 
has been appropriated $2.5 million for the employment information 
function in FY 96. The balance to be collected through agency fees is 
$2.8 million. OPM will bill at the agency headquarters level to 
minimize billing and accounting unless we hear otherwise from an 
agency.
    Concerning future years, OPM will soon establish a working group of 
the Interagency Advisory Group, consisting of officials from 
representative agencies and OPM, to review the level, quality and costs 
of information services provided and make recommendations for improving 
efficiency and effectiveness. All agencies will have the opportunity, 
through the Interagency Advisory Group, to discuss and comment on 
recommendations of the working group prior to implementation.
    OPM will regularly report to agencies the information it collects 
regarding customer satisfaction and complaints. OPM also will notify 
each agency annually of the costs of the services, its obligation and 
of payment procedures.
    The final regulations also consolidate the public notice 
requirements for competitive service positions in parts 330, 333, and 
335.

Waiver of Delay in Effective Date

    Pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists to 
waive the delay in effective date and make these regulations effective 
in less than 30 days. The statutory basis for these regulations (Pub. 
L. 104-52) was effective on November 19, 1995, and OPM's reduced FY 96 
appropriations will not allow it to continue the employment information 
function without reimbursement from agencies. It would be contrary to 
the public interest and impracticable to delay implementation.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it pertains 
only to Federal agencies.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 330

    Armed forces reserves, Government employees.

List of Subjects in 5 CFR Parts 333 and 335

    Government employees.

U.S. Office of Personnel Management.
James B. King,
Director.

    Accordingly, OPM is amending 5 CFR parts 330, 333, and 335, as 
follows:

PART 330--RECRUITMENT, SELECTION, AND PLACEMENT (GENERAL)

    1. The authority citation for part 330 is revised to read as 
follows:

    Authority: 5 U.S.C. 1302, 3301, 3302; E.O. 10577, 3 CFR, 1954-58 
Comp., p. 218.

    Section 330.102 also issued under 5 U.S.C. 3327 and 3330.
    
[[Page 11501]]

    Subpart B also issued under 5 U.S.C. 3315 and 8151.
    Section 330.401 also issued under 5 U.S.C. 3310.
    Subpart H also issued under 5 U.S.C. 8337(h) and 8457(b).
    Subpart I also issued under 106 Stat. 2720, 5 U.S.C. 3301 note.

    2. Section 330.102 is revised, to read as follows:


Sec. 330.102  Federal employment information.

    (a) Vacancies open to the public. (1) Notice required--(i) Under 5 
U.S.C. 3327, Federal agencies must notify OPM promptly of:
    (A) Open competitive examinations;
    (B) Vacancies in the competitive service to be filled under direct 
hire procedures or part 333 of this chapter; and
    (C) Vacancies in the Senior Executive Service for which the agency 
seeks applications from persons outside the Federal service. Also, in 
accordance with Sec. 317.501(b)(2) of this chapter, agencies must 
notify OPM of all Senior Executive Service vacancies to be filled by 
initial career appointment.
    (ii) OPM will provide this information to the employment offices of 
the United States Employment Service.
    (2) Agencies covered. Paragraph (a)(1) of this section applies to:
    (i) The executive departments listed at 5 U.S.C. 101;
    (ii) The military departments listed at 5 U.S.C. 102;
    (iii) Government owned corporations in the executive branch as 
described at 5 U.S.C. 103;
    (iv) Independent establishments in the executive branch as 
described at 5 U.S.C. 104, including the Nuclear Regulatory Commission; 
and
    (v) Government Printing Office.
    (b) All other vacancies--(1) Notice required. Under 5 U.S.C. 3330, 
OPM must maintain, and make available to the public, a list of agency 
vacancy announcements for positions in the competitive service. Under 
Sec. 330.706 of this chapter, agencies must notify OPM promptly of 
competitive service vacancies to be filled for more than 90 days when 
the agency will accept applications from individuals outside the 
agency's own work force.
    (2) Agencies covered. Except for any executive agency or unit 
thereof whose principal function is the conduct of foreign intelligence 
or counterintelligence activities, as determined by the President, 
paragraph (b)(1) of this section applies to:
    (i) The executive departments listed at 5 U.S.C. 101;
    (ii) The military departments listed at 5 U.S.C. 102;
    (iii) Government corporations in the executive branch as described 
at 5 U.S.C. 103; and
    (iv) Independent establishments in the executive branch as 
described at 5 U.S.C. 104.
    (c) Funding. Under 5 U.S.C. 3330(f), OPM is authorized to charge 
fees to agencies for their share of the cost of providing employment 
information to the public and to Federal employees. OPM will work with 
agencies to review the effectiveness and efficiency of the Federal 
Employment Information System in meeting Federal agency and public 
needs and identify improvements to the system, consistent with the 
minimum level of service and statutory requirements. Subsequently, OPM 
will annually compute the cost of providing employment information and 
notify each agency of its share, along with a full accounting of the 
costs, and payment procedures.

PART 333--RECRUITMENT AND SELECTION FOR TEMPORARY AND TERM 
APPOINTMENTS OUTSIDE THE REGISTER

    3. The authority citation for part 333 is revised to read as 
follows:

    Authority: 5 U.S.C. 1302, 3301, 3302, 3327, 3330; E.O. 10577, 3 
CFR 1954-58 Comp., p. 218; section 333.203 also issued under 5 
U.S.C. 1104.

    4. Section 333.102 is revised to read as follows:


Sec. 333.102  Notice of job announcements to OPM.

    Under 5 U.S.C. 3327 and 3330, agencies are required to report job 
announcements to OPM when recruiting outside the register. This 
requirement is implemented through Sec. 330.102 of this chapter.

PART 335--PROMOTION AND INTERNAL PLACEMENT

    5. The authority citation for part 335 is revised to read as 
follows:

    Authority: 5 U.S.C. 3301, 3302, 3330; E.O. 10577, 3 CFR 1957-58 
Comp., p. 218.

    6. Section 335.105 is revised to read as follows:


Sec. 335.105  Notice of job announcements to OPM.

    Under 5 U.S.C. 3330, agencies are required to report job 
announcements to OPM for vacancies for which an agency will accept 
applications from outside the agency's work force. This requirement is 
implemented through Sec. 330.102 of this chapter.

[FR Doc. 96-6916 Filed 3-21-96; 8:45 am]
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