[Federal Register Volume 64, Number 88 (Friday, May 7, 1999)]
[Rules and Regulations]
[Pages 24503-24505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11513]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 88 / Friday, May 7, 1999 / Rules and 
Regulations  

[[Page 24503]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR PART 330

RIN 3206-AI56


Interagency Career Transition Assistance for Displaced Former 
Panama Canal Zone Employees

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management is issuing interim 
regulations that provide certain displaced employees of the former 
Panama Canal Zone with interagency priority consideration for vacant 
competitive service positions in the continental United States. These 
regulations are applicable to eligible displaced employees of the 
former Panama Canal Zone who are now being separated.

DATES: These interim regulations are effective May 7, 1999. Written 
comments will be considered if received no later than July 6, 1999.

ADDRESSES: Send written comments to Mary Lou Lindholm, Associate 
Director for Employment, Office of Personnel Management, Room 6F08, 
1900 E Street, NW, Washington, DC 20415-9000.

FOR FURTHER INFORMATION CONTACT: Thomas A. Glennon or Jacqueline R. 
Yeatman, 202-606-0960, FAX 202-606-2329.

SUPPLEMENTARY INFORMATION:

Background

    The Panama Canal Treaty of 1977, as implemented through Public Law 
96-70 (93 Stat. 452, The Panama Canal Act of 1979, approved September 
27, 1979, and generally effective October 1, 1979), provides for the 
final transfer of Panama Canal operations and full control of the 
former Canal Zone geographic area from the Government of the United 
States to the Republic of Panama on December 31, 1999. This action will 
result in the involuntary separation, or geographic relocation, of most 
United States citizens presently working as Federal employees in the 
Canal Area.
    Section 1212(a) of the Panama Canal Act, as codified in 22 U.S.C. 
3652, authorized the President to establish the Panama Canal Employment 
System in accordance with applicable Treaty requirements and other 
provisions of law. Most Federal employees in the Canal Area hold 
excepted service positions under the Panama Canal Employment System. 
However, Sec. 1212(a) requires full interchange between these excepted 
service Panama Canal Employment System positions and positions in the 
competitive service.
    Section 1232 of the Panama Canal Act, as codified in 22 U.S.C. 
3672, provides certain employees of the former Canal Zone with priority 
consideration for continuing vacant Federal positions.
    Specifically, Sec. 1232(a) of the Act authorizes special selection 
priority for any citizen of the United States who, on March 31, 1979, 
was an employee of the Panama Canal Company or the Canal Zone 
Government, who is involuntarily separated. This priority is not 
available to otherwise eligible employees who are placed in another 
appropriate Federal position that is located in the Republic of Panama.
    Similarly, Sec. 1232(b) of the Act authorizes special selection 
priority for any citizen of the United States who, on March 31, 1979, 
was employed in the Canal Zone under the Panama Canal Employment System 
as an employee of an executive branch agency (including the Smithsonian 
Institution), and whose position was eliminated as the result of the 
Panama Canal Treaty of 1977 and related agreements. This priority is 
not available to otherwise eligible employees who are appointed to 
another appropriate Federal position that is located in the Republic of 
Panama.
    Section 1232(c) of the Act mandates that OPM establish and 
administer a Government-wide special selection priority program for all 
eligible displaced employees of the former Canal Zone.

New Interagency Career Transition Assistance Program for Displaced 
Panama Canal Zone Employees

    Eligible displaced employees of the former Panama Canal Zone are 
eligible for interagency special selection priority consideration in 
this new program on a similar basis as that provided to many displaced 
Federal employees under the Interagency Career Transition Assistance 
Plan, which is authorized by 5 CFR 330, subpart G. However, eligible 
displaced employees of the former Canal Zone receive special selection 
priority when applying for vacant positions throughout the continental 
United States, while the Interagency Career Transition Assistance Plan 
provides priority consideration to other displaced Federal employees 
only in the local commuting area where the displaced employee last 
worked.

Waiver of Notice of Proposed Rulemaking and Delay in Effective Date

    Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists 
for waiving the general notice of proposed rulemaking because it would 
be contrary to the public interest to delay access to benefits provided 
by law. Also, pursuant to 5 U.S.C. 553(d)(3), I find that good cause 
exists to waive the effective date and make this amendment effective in 
less than 30 days in order to provide eligible displaced employees of 
the former Canal Zone with special selection priority at the earliest 
practicable date.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it affects 
only certain Federal employees.

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.

Office of Personnel Management.
Janice R. Lachance,
Director.
    Accordingly, OPM is amending part 330 of title 5, Code of Federal 
Regulations, as follows:

[[Page 24504]]

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; Sec. 330.102 also issued under 5 U.S.C 3327; subpart 
B also issued under 5 U.S.C. 3315 and 8151; Sec. 330.401 also issued 
under 5 U.S.C. 3310; subpart I also issued under sec. 4432 of Pub. 
L. 102-484, 106 Stat. 2315; subpart K also issued under sec. 11203 
of Pub. L. 105-33, 111 Stat. 738; subpart L also issued under sec. 
1232 of Pub. L. 96-70, 93 Stat. 452.

    2. Subpart L of part 330 is added to read as follows:

Subpart L--Interagency Career Transition Assistance for Displaced 
Former Panama Canal Zone Employees

Sec.
330.1201  Purpose.
330.1202  Definitions.
330.1203  Eligibility
330.1204  Selection.

Subpart L--Interagency Career Transition Assistance for Displaced 
Former Panama Canal Zone Employees


Sec. 330.1201  Purpose.

    This subpart implements Section 1232 of Public Law 96-70 (the 
Panama Canal Act of 1979) and provides eligible displaced employees of 
the former Panama Canal Zone with interagency special selection 
priority consideration for continuing Federal vacant positions in the 
continental United States.


Sec. 330.1202  Definitions.

    For purposes of this subpart:
    (a) Agency means an Executive Department, a Government corporation, 
and an independent establishment as cited in 5 U.S.C. 105. For the 
purposes of this program, the term ``agency'' includes all components 
of an organization, including its Office of Inspector General.
    (b) Canal Zone is the definition set forth in 22 U.S.C. 3602(b)(1), 
and means the areas and installations in the Republic of Panama made 
available to the United States pursuant to the Panama Canal Treaty of 
1977 and related agreements;
    (c) Eligible displaced employee of the former Panama Canal Zone 
means a citizen of the United States who:
    (1) Holds or held a position in the Panama Canal Employment System 
that is in retention tenure group 1 or 2, as defined in Sec. 351.501(a) 
of this chapter;
    (2)(i) Was an employee of the Panama Canal Company or the Canal 
Zone Government on March 31, 1979, and has been continuously employed 
in the former Panama Canal Zone under the Panama Canal Employment 
System; or
    (ii) Has been continuously employed since March 31, 1979, in the 
former Panama Canal Zone under the Panama Canal Employment System as an 
employee of an executive agency, or as an employee of the Smithsonian 
Institution;
    (3) Holds or held a position that is eliminated as the result of 
the implementation of the Panama Canal Treaty of 1977 and related 
agreements;
    (4) Is not appointed to another appropriate Federal position 
located in the Republic of Panama; and
    (5) Has received a specific notice of separation by reduction in 
force, and meets the additional eligibility criteria covered in 
Sec. 330.1203.
    (d) Special selection priority means that an eligible displaced 
employee of the former Panama Canal Zone who applies for a competitive 
service vacancy, and who the hiring agency in the continental United 
States determines is well-qualified, has the same special selection 
priority as a current or former displaced Federal employee who is 
eligible under 5 CFR 330, subpart G (the Interagency Career Transition 
Assistance Plan), or under 5 CFR 330, subpart K (Federal Employment 
Priority Consideration for Displaced Employees of the District of 
Columbia Department of Corrections). Eligible displaced employees of 
the former Panama Canal Zone have special selection priority under this 
subpart to positions throughout the continental United States.
    (e) Vacancy means a competitive service position to be filled for a 
total of 121 days or more, including all extensions, which the agency 
is filling, regardless of whether the agency issues a specific vacancy 
announcement.
    (f) Well-qualified employee means an eligible displaced former 
employee of the Panama Canal Zone who possesses the knowledge, skills, 
and abilities which clearly exceed the minimum qualification 
requirements for the position. A well-qualified employee will not 
necessarily meet the agency's definition of highly or best qualified, 
when evaluated against other candidates who apply for a particular 
vacancy, but must satisfy the following criteria, as determined and 
consistently applied by the agency:
    (1) Meets the basic qualification standards and eligibility 
requirements for the position, including any medical qualifications, 
suitability, and minimum educational and experience requirements;
    (2) Satisfies one of the following qualifications requirements:
    (i) Meets all selective factors where applicable. Meets appropriate 
quality rating factor levels as determined by the agency. Selective and 
quality ranking factors cannot be so restrictive that they run counter 
to the goal of placing displaced employees. In the absence of selective 
and quality ranking factors, selecting officials will document the job-
related reason(s) the eligible employee is or is not considered to be 
well-qualified; or
    (ii) Is rated by the agency to be above minimally qualified in 
accordance with the agency's specific rating and ranking process. 
Generally, this means that the individual may or may not meet the 
agency's test for highly qualified, but would in fact, exceed the 
minimum qualifications for the position;
    (3) Is physically qualified, with reasonable accommodation where 
appropriate, to perform the essential duties of the position;
    (4) Meets any special qualifying condition(s) that OPM has approved 
for the position; and
    (5) Is able to satisfactorily perform the duties of the position 
upon entry.


Sec. 330.1203  Eligibility.

    (a) In order to be eligible for special selection priority, an 
eligible displaced employee of the former Panama Canal Zone must:
    (1) Have received a specific notice of separation by reduction in 
force;
    (2) Have not been appointed to another appropriate position in the 
Government of the United States in Panama;
    (3) Apply for a vacancy within the time frames established by the 
hiring agency; and
    (4) Be found by the hiring agency as well-qualified for that 
specific vacancy.
    (b) Eligibility for special selection priority as an eligible 
displaced employee of the former Panama Canal Zone begins on the date 
that the employee receives a specific notice of separation by reduction 
in force.
    (c) Eligibility for special selection priority as an eligible 
displaced employee of the former Panama Canal Zone expires on the 
earliest of:
    (1) One year after the effective date of the reduction in force;
    (2) The date that the employee receives a career, career-
conditional, or excepted appointment without time limit in any agency 
at any grade level; or
    (3) The date that the employee is separated involuntarily for cause 
prior to the effective date of the reduction in force action.

[[Page 24505]]

Sec. 330.1204.  Selection.

    If two or more individuals apply for a vacancy and the hiring 
agency determines the individuals to be well-qualified, the agency has 
the discretion to select any of these employees eligible for priority 
under subpart G of this part (the Interagency Career Transition 
Assistance Plan), under subpart K of this part (Federal Employment 
Priority Consideration for Displaced Employees of the District of 
Columbia Department of Corrections), or under subpart L of this part 
(Interagency Career Transition Assistance for Displaced Former Panama 
Canal Zone Employees).

[FR Doc. 99-11513 Filed 5-6-99; 8:45 am]
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