[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Rules and Regulations]
[Pages 40505-40506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19045]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 143 / Tuesday, July 27, 1999 / Rules 
and Regulations  

[[Page 40505]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 330

RIN 3206-AI69


Positions Restricted to Preference Eligibles

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 covering competitive service positions that are restricted 
to preference eligibles. These regulations update the responsibilities 
of both individual agencies and OPM to provide career transition 
assistance to preference eligibles who are separated by reduction in 
force because their positions are contracted out to the private sector 
under authority of Office of Management and Budget Circular A-76.

DATES: These interim regulations are effective July 27, 1999. Written 
comments will be considered if received no later than September 27, 
1999.

ADDRESSES: Send written comments to Mary Lou Lindholm, Associate 
Director for Employment, Office of Personnel Management, Room 6500, 
1900 E Street, NW, Washington, DC 20415.

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

SUPPLEMENTARY INFORMATION:

Background

    Section 5 U.S.C. 3310 limits entrance examinations for the 
positions of custodian, elevator operator, guard, and messenger only to 
preference eligibles, provided that preference eligibles are available 
for these positions.
    In final regulations published on September 30, 1985, at 50 FR 
39876, OPM provided special career transition benefits for preference 
eligible employees who hold restricted positions that are contracted 
out to the private sector under authority of OMB Circular A-76. These 
regulations were revised on June 27, 1994, at 59 FR 32873, to include 
changes in OPM's programs for displaced employees.
    OPM is now revising this subpart to reflect subsequent changes in 
available placement programs, including the Career Transition 
Assistance Plan authorized by 5 CFR part 330, subpart F, and the 
Interagency Career Transition Assistance Plan authorized by 5 CFR part 
330, subpart G.

Updated Provisions Applicable to Preference Eligibles Displaced 
From Restricted Positions

    Revised 5 CFR 330.404 affirms that both individual agencies and OPM 
have additional responsibilities when the agency, under authority of 
Office of Management and Budget Circular A-76, contracts out the work 
of a preference eligible who holds a restricted position.
    Revised Sec. 330.405 affirms that, if a preference eligible is 
separated from a restricted position by reduction in force because the 
agency contracts out the veteran's work under OMB Circular A-76, the 
agency must provide the employee with transition services and selection 
priority authorized under the Career Transition Assistance Plan and the 
Interagency Career Transition Assistance Plan. The agency is also 
responsible for applying OMB's policy directives on the preference 
eligible's right of first refusal for positions that are contracted out 
to the private sector. Finally, the agency is required to cooperate 
with State dislocated worker units in retraining the displaced 
preference eligible for other continuing positions.
    Revised 5 CFR 330.406 updates OPM's responsibilities under 5 CFR 
part 330, subpart D. OPM's responsibilities for preference eligibles 
displaced from restricted positions as the result of contracting out 
include requiring agencies to provide the veterans with both internal 
selection priority (e.g., the Career Transition Assistance Plan), and 
with interagency selection priority (e.g., the Interagency Career 
Transition Assistance Plan). Other OPM responsibilities include 
encouraging cooperation between local Federal activities to assist 
these displaced preference eligibles in obtaining other Federal 
positions, including positions with the U.S. Postal Service, and 
monitoring these placement efforts.
    Revised 5 CFR 330.407 provides that preference eligibles who are 
separated from restricted positions by reduction in force because their 
work is contracted out have interagency selection priority under the 
Interagency Career Transition Assistance Plan for 2 years following 
separation by reduction in force. Other Federal employees have this 
interagency selection priority for 1 year following reduction in force 
separation.

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 preference 
eligibles 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.

U.S. Office of Personnel Management,
Janice R. Lachance,
Director.

    Accordingly, OPM is amending part 330 of title 5, Code of Federal 
Regulations, as follows:

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

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

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

[[Page 40506]]

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 D of part 330 is revised to read as follows:

Subpart D--Positions Restricted to Preference Eligibles

Sec.
330.401  Competitive examination.
330.402  Direct recruitment.
330.403  Noncompetitive actions.
330.404  Displacement of preference eligibles occupying restricted 
positions in contracting out situations.
330.405  Agency placement assistance.
330.406  OPM placement assistance.
330.407  Eligibility for the Interagency Career Transition 
Assistance Plan.

Subpart D--Positions Restricted To Preference Eligibles


Sec. 330.401  Competitive examination.

    In each entrance examination for the positions of custodian, 
elevator operator, guard, and messenger (referred to in this subpart as 
restricted positions), OPM shall restrict competition to preference 
eligibles as long as preference eligibles are available.


Sec. 330.402  Direct recruitment.

    In direct recruitment by an agency under delegated authority, the 
agency shall fill each restricted position by the appointment of a 
preference eligible as long as preference eligibles are available.


Sec. 330.403  Noncompetitive actions.

    An agency may fill a restricted position by the appointment by 
noncompetitive action of a nonpreference eligible only when authorized 
by OPM.


Sec. 330.404  Displacement of preference eligibles occupying restricted 
positions in contracting out situations.

    An individual agency and OPM both have additional responsibilities 
when the agency decides, in accordance with the Office of Management 
and Budget (OMB) Circular A-76, to contract out the work of a 
preference eligible who holds a restricted position. These additional 
responsibilities are applicable if a preference eligible holds a 
competitive service position that is:
    (a) A restricted position as designated in 5 U.S.C. 3310 and 
Sec. 330.401; and
    (b) In retention tenure group tenure I or II, as defined in 
Secs. 351.501(b) (1) and (2) of this chapter.


Sec. 330.405  Agency placement assistance.

    An agency that separates a preference eligible from a restricted 
position by reduction in force under part 351 of this chapter because 
of a contracting out situation covered in Sec. 330.404 must, consistent 
with Sec. 330.602, advise the employee of the opportunity to 
participate in available career transition programs. The agency is also 
responsible for:
    (a) Applying OMB's policy directives on the preference eligibles' 
right of first refusal for positions that are contracted out to the 
private sector; and
    (b) Cooperating with State dislocated worker units, as designated 
or created under title III of the Job Training Partnership Act, to 
retrain displaced preference eligibles for other continuing positions.


Sec. 330.406  OPM placement assistance.

    OPM's responsibilities include:
    (a) Assisting agencies in operating positive placement programs, 
such as the Career Transition Assistance Plan, which is authorized by 
subpart F of this part;
    (b) Providing interagency selection priority through the 
Interagency Career Transition Assistance Plan, which is authorized by 
subpart G of this part; and
    (c) Encouraging cooperation between local Federal activities to 
assist these displaced preference eligibles in applying for other 
Federal positions, including positions with the U.S. Postal Service.


Sec. 330.407  Eligibility for the Interagency Career Transition 
Assistance Plan.

    (a) A preference eligible who is separated from a restricted 
position by reduction in force under part 351 of this chapter because 
of a contracting out situation covered in Sec. 330.404 has interagency 
selection priority under the Interagency Career Transition Assistance 
Plan, which is authorized by subpart G of this part. Section 330.704 
covers the general eligibility requirements for the Interagency Career 
Transition Assistance Plan.
    (b) A preference eligible covered by this subpart is eligible for 
the Interagency Career Transition Assistance Plan for 2 years following 
separation by reduction in force from a restricted position.

[FR Doc. 99-19045 Filed 7-26-99; 8:45 am]
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