[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Rules and Regulations]
[Pages 14431-14432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6626]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 53 / Friday, March 17, 2000 / Rules 
and Regulations  

[[Page 14431]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 213, 315, and 335

RIN 3206-AI51


Excepted Service; The Career Conditional Employment System; 
Promotion and Internal Placement

AGENCY: Office of Personnel Management.

ACTION: Interim regulations with request for comments.

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SUMMARY: Pursuant to Section 511 of the Veterans Millennium Health Care 
and Benefits Act, OPM is reissuing interim regulations, with 
amendments, to implement the staffing provisions of the Veterans 
Employment Opportunities Act (VEOA) of 1998. Among other things, the 
VEOA allows preference eligibles or veterans who have been honorably 
discharged from the armed forces after 3 or more years of active 
service to apply for vacancies under merit promotion procedures when an 
agency is accepting applications from outside its own workforce. 
Comments are invited.

DATES: Interim rules are effective March 17, 2000. Comments must be 
received on or before April 17, 2000.

ADDRESSES: Send or deliver written comments to: Mary Lou Lindholm, 
Associate Director for Employment, Office of Personnel Management, Room 
6500, 1900 E Street, NW, Washington, DC 20415-9000.

FOR FURTHER INFORMATION CONTACT: Mr. Raleigh M. Neville on (202) 606-
0830 or FAX (202) 606-0390.

SUPPLEMENTARY INFORMATION: Under VEOA, Congress amended 5 U.S.C. 3304 
to allow eligible veterans to compete for vacancies under an agency's 
merit promotion procedures. The act also required OPM to create an 
appointing authority to permit the appointment of these veterans. 
However, absent specific legislation or Executive order, OPM has no 
authority to permit the noncompetitive appointment of candidates in the 
competitive service. Accordingly, OPM created an excepted appointing 
authority under Schedule B. This allowed eligible veterans to be 
appointed noncompetitively into the excepted service. OPM issued 
interim regulations (63 FR 66705) on December 3, 1998, to implement the 
VEOA.
    In enacting the Veterans Millennium and Health Care and Benefits 
Act (Pub. L. 106-117), Congress amended the VEOA to clarify that if an 
eligible veteran competes under the agency's merit promotion procedures 
and is selected, he or she will be given a career or career conditional 
appointment in the competitive service.
    Pub. L. 106-117 also clarified that veterans who are released from 
their initial tours of active duty shortly before completing the 3 
years required in the statute are also eligible to compete under these 
provisions. (In this connection, it is customary for the military to 
release individuals a few days before completing 3-year tours ``for the 
convenience of the Government.'' These individuals should normally be 
considered eligible.)
    As a result of these amendments, agencies may no longer make any 
new appointments under Schedule B authority YKB/Sch B 213.3202(n). 
However, OPM will temporarily leave the Schedule B authority in place 
until further notice. Veterans who were appointed under this Schedule B 
authority, but who did not compete under an agency merit promotion 
announcement, will remain under this authority until such time as they 
do compete and are selected. Veterans who competed under a merit 
promotion announcement must be converted to a career conditional or 
career appointment retroactive to the date of their original 
appointment under the VEOA. OPM is also making a technical update in 
Sec. 315.801 on when probation is required. OPM is deleting the list of 
persons subject to probation when appointed by special authority or by 
conversion (the list was not complete), and including a new subsection 
specifying that such persons are subject to probation unless 
specifically exempt in the authority itself.

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 delay in effective date is being waived 
because the provisions of the new law became effective upon enactment, 
November 30, 1999.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant impact 
on a substantial number of small entities (including small businesses, 
small organizational units and small governmental jurisdictions) 
because the regulations apply only to appointment procedures for 
certain employees in Federal agencies.

E.O. 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 Parts 213, 315, and 335

    Government employees, Reporting and recordkeeping requirements.
    Office of Personnel Management.

Janice R. Lachance,
Director.

    Accordingly, OPM is amending parts 213, 315, and 335 of Title 5, 
Code of Federal Regulations, as follows:

PART 213--EXCEPTED SERVICE

    1. The authority citation for part 213 is revised to read as 
follows:

    Authority: 5 U.S.C. 3301 and 3302, E.O. 10577, 3 CFR 1954-1958 
Comp., p. 218; Sec. 213.101 also issued under 5 U.S.C. 2103; 
Sec. 213.3102 also issued under 5 U.S.C. 3301, 3302, 3307, 8337(h) 
and 8456; E.O. 12364, 47 FR 22931, 3 CFR 1982 Comp., p. 185; 38 
U.S.C. 4301 et seq.; and Pub.L. 105-339.


Sec. 213.3202  [Amended]

    2. In Sec. 213.3202, paragraph (n) is revised to read as follows:
* * * * *
    (n) Positions when filled by preference eligibles or veterans who 
have been separated from the armed forces under honorable conditions 
after 3 years or more of continuous active military service and who, in 
accordance with the provisions of Pub.L. 105-339, applied for these 
positions under merit promotion procedures when

[[Page 14432]]

applications were being accepted from individuals outside its own 
workforce. These veterans may be promoted, demoted, or reassigned, as 
appropriate, to other positions within the agency but would remain 
employed under this excepted authority as long as there is no break in 
service. No new appointments may be made under this authority after 
November 30, 1999.

PART 315--CAREER AND CAREER CONDITIONAL EMPLOYMENT

    3. The authority citation for part 315 is revised to read as 
follows:

    Authority: 5 U.S.C. 1302, 3301, and 3302; E.O. 10577. 3 CFR, 
1954-1958 Comp. P. 218, unless otherwise noted. Secs. 315.601 and 
315.609 also issued under 22 U.S.C. 3651 and 3652. Secs. 315.602 and 
315.604 also issued under 5 U.S.C. 1104. Sec. 315.603 also issued 
under 5 U.S.C. 8151. Sec. 315.605 also issued under E.O. 120034, 3 
CFR, 1978 Comp. p. 111. Sec. 315.606 also issued under E.O. 11219, 3 
CFR, 1964-1965 Comp. p. 303. Sec. 315.607 also issued under 22 
U.S.C. 2506. Sec. 315.608 also issued under E.O. 12721, 3 CFR, 1990 
Comp., p. 293. Sec. 315.610 also issued under 5 U.S.C. 3304(d). 
Sec. 315.611 also issued under Section 511, Pub. L. 106-117. 
Sec. 315.710 also issued under E.O. 12596, 3 CFR, 1987, Comp., p. 
229. Subpart I also issued under 5 U.S.C. 3321, E.O. 12107, 3 CFR, 
1978 Comp., p. 264.


Sec. 315.611  [Added]

    4. A new section 315.611 is added to subpart F to read as follows:

Subpart F--Career or Career-Conditional Appointment Under Special 
Authorities

* * * * *


Sec. 315.611  Appointment of certain veterans who have competed under 
agency merit promotion announcements.

    (a) Agency authority. An agency may appoint a preference eligible 
or a veteran who has substantially completed at least 3 years of 
continuous active military service provided
    (1) The veteran was selected from among the best qualified 
following competition under a merit promotion announcement open to 
candidates outside the agency's workforce; and
    (2) The veteran's most recent separation from the military was 
under honorable conditions.
    (b) Definitions. ``Agency'' in this context means an executive 
agency as defined in 5 U.S.C. 105. The agency determines in individual 
cases whether a candidate was released ``shortly before'' completing 
the required 3 years and should therefore be eligible for appointment.


Sec. 315.801  [Revised]

    5. In Sec. 315.801 paragraph (a) is revised and a new paragraph (e) 
is added to read as follows:

Subpart H--Probation on Initial Appointment to a Competitive 
Position


Sec. 315.801  Probationary period; when required.

    (a) The first year of service of an employee who is given a career 
or career-conditional appointment under this part is a probationary 
period when the employee:
    (1) Was appointed from a competitive list of eligibles established 
under subpart C of this part;
    (2) Was reinstated under subpart D of this part unless during any 
period of service which affords a current basis for reinstatement, the 
employee completed a probationary period or served with competitive 
status under an appointment which did not require a probationary 
period.
* * * * *
    (e) A person who is appointed to the competitive service either by 
special appointing authority or by conversion under subparts F or G of 
this part serves a 1-year probationary period unless specifically 
exempt from probation by the authority itself.

PART 335--PROMOTION AND INTERNAL PLACEMENT

    6. 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 1954-
1958 Comp., p. 218; 5 U.S.C. 3304 (f), and Pub.L. 106-117.


Sec. 335.106  [Revised]

    7. Section 335.106 is revised to read as follows:


Sec. 335.106  Special selection procedures for certain veterans under 
merit promotion.

    Preference eligibles or veterans who have been separated under 
honorable conditions from the armed forces after completing (as 
determined by the agency) 3 or more years of continuous active military 
service may compete for vacancies under merit promotion when an agency 
accepts applications from individuals outside its own workforce. Those 
veterans selected will be given career or career conditional 
appointments under Sec. 315.611 of this chapter.

[FR Doc. 00-6626 Filed 3-16-00; 8:45 am]
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