[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Rules and Regulations]
[Pages 52293-52295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21947]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 168 / Tuesday, August 29, 2000 / 
Rules and Regulations  

[[Page 52293]]



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: Final rule.

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SUMMARY: The Office of Personnel Management is issuing final 
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 were separated because of the transfer of 
Panama Canal operations and full control to the Republic of Panama.

DATES: These final regulations are effective September 28, 2000.

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

SUPPLEMENTARY INFORMATION:

Background

    On May 7, 1999, OPM published interim regulations at 64 FR 24504 
that authorize special interagency selection priority for certain 
employees who are displaced from positions under the Panama Canal 
Employment System. The interim regulations were effective upon 
publication in the Federal Register. Interested parties had 60 days to 
submit written comments.
    For reference, 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 resulted in the involuntary separation, or geographic 
relocation, of most United States citizens 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 held 
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 was an employee of 
the Panama Canal Company or the Canal Zone Government on March 31, 
1979, and was subsequently involuntarily separated by reduction in 
force. 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.

Comments

    OPM received one comment, from a Federal agency, on the interim 
regulations.
    The agency suggested that the final regulations limit interagency 
selection priority only to positions with no greater promotion 
potential than the displaced employee's former position under the 
Panama Canal Employment System. OPM did not adopt this suggestion 
because of the difficulty that a hiring agency could encounter in 
determining the promotion potential of the employee's former Panama 
Canal Employment System position, particularly after the cessation of 
activities on December 31, 1999.
    The agency also suggested that the final regulations clarify that, 
in order to be eligible for this interagency selection program, a 
displaced employee must have a last performance rating of ``Fully 
Successful'' or equivalent (i.e., Summary Level 3, as defined in 5 CFR 
430.208(d)). OPM adopted this suggestion, which was implied in the 
interim regulations. The final regulations clarify OPM's intention that 
the placement program for displaced former Panama Canal Zone employees 
follows the general eligibility requirements set forth in 5 CFR 
330.704(a)(2) for other displaced employees, who are eligible for 
selection priority under the Interagency Career Transition Assistance 
Plan, which is authorized by 5 CFR 330, subpart G.
    On another item, the agency suggested that OPM clarify that these 
regulations follow the same general order of selection that is provided 
under 5 CFR 330.705(a) for actions under the Interagency Career 
Transition Assistance Plan. OPM has also adopted this suggestion, again 
because the final regulations clarify OPM's intention that the 
placement program for displaced former Panama Canal Zone employees 
follows the general provisions applicable to displaced employees who 
are eligible for selection priority under the Interagency Career 
Transition Assistance Plan.

[[Page 52294]]

    In addition, the agency suggested that OPM provide a definition of 
``Continental United States.'' Upon review, we believe that this issue 
is presently covered by paragraph 5 CFR 210.102(b)(9), which provides 
that ``Overseas means outside the continental United States, but does 
not include Alaska, Guam, Hawaii, the Isthmus of Panama, Puerto Rico, 
or the Virgin Islands.''
    Finally, the agency suggested that OPM provide information on the 
payment of relocation expenses for displaced employees. This issue is 
beyond the scope of OPM's statutory and regulatory responsibility, and 
is therefore not covered in these final regulations.

Final Regulations on the 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 in this new program 
on a similar basis as that provided to many displaced Federal employees 
under the Interagency Career Transition Assistance Plan. 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 was separated.

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, the interim rule which was published at 64 FR 24504 is 
adopted as final with the following changes:

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 revised to read as follows:

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 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) 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 was continuously employed in the 
former Panama Canal Zone under the Panama Canal Employment System; or
    (ii) Was 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) Held a position that was eliminated as the result of the 
implementation of the Panama Canal Treaty of 1977 and related 
agreements;
    (4) Was not appointed to another appropriate Federal position 
located in the Republic of Panama; and
    (5) 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 part 330, subpart G (the Interagency Career 
Transition Assistance Plan), or under 5 CFR part 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 that 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;

[[Page 52295]]

    (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;
    (5) Is able to satisfactorily perform the duties of the position 
upon entry; and
    (6) Has a last performance rating of at least ``Fully Successful'' 
or equivalent.


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 received 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.


Sec. 330.1204.  Selection.

    (a) 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 the individuals 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).
    (b) Except as provided in Sec. 330.705(c), when filling a position 
from outside the agency's workforce, the agency must select:
    (1) Current or former agency employees eligible under the agency's 
Reemployment Priority List described in subpart B of this part; then
    (2) At the agency's option, any other former employee displaced 
from the agency (under appropriate selection procedures, then:
    (3) Current or former Federal employees displaced from other 
agencies who are eligible under subparts G, K, or L of this part, and 
then:
    (4) Any other candidate (under appropriate selection procedures) 
(optional).

[FR Doc. 00-21947 Filed 8-28-00; 8:45 am]
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