[Federal Register Volume 68, Number 77 (Tuesday, April 22, 2003)]
[Rules and Regulations]
[Pages 19707-19708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9831]



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 Rules and Regulations
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  Federal Register / Vol. 68, No. 77 / Tuesday, April 22, 2003 / Rules 
and Regulations  

[[Page 19707]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531

RIN 3206-AJ62


Locality Pay Areas

AGENCY: Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management is issuing final 
regulations on behalf of the President's Pay Agent to tie the 
metropolitan area portion of locality pay area boundaries to the 
geographic scope of Metropolitan Statistical Area and Consolidated 
Metropolitan Statistical Area definitions that are contained in the 
attachments to Office of Management and Budget Bulletin 99-04.

EFFECTIVE DATE: These regulations will become effective on May 22, 
2003.

FOR FURTHER INFORMATION CONTACT: Allan Hearne, (202) 606-2838; FAX: 
(202) 606-4264; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 5304(f) of title 5, United States 
Code, authorizes the President's Pay Agent (the Secretary of Labor, the 
Director of the Office of Management and Budget (OMB), and the Director 
of the Office of Personnel Management (OPM)) to determine appropriate 
pay localities. The Pay Agent must give thorough consideration to the 
views and recommendations of the Federal Salary Council, a body 
composed of experts in the fields of labor relations and pay policy and 
representatives of Federal employee organizations. The President 
appoints the members of the Federal Salary Council, who submit annual 
recommendations to the President's Pay Agent about the locality pay 
program for General Schedule employees. The establishment or 
modification of locality pay area boundaries must conform with the 
notice and comment provisions of the Administrative Procedure Act (5 
U.S.C. 553).
    Based on the Council's recommendations in 1993, the Pay Agent 
approved using Metropolitan Statistical Area (MSA) and Consolidated 
Metropolitan Statistical Area (CMSA) definitions as the basis for 
defining locality pay areas. OMB defines MSAs and CMSAs based on 
population size, population density, and commuting patterns. The 
Council also recommended and the Pay Agent approved criteria for adding 
adjoining areas to locality pay areas that are not already part of the 
MSA or CMSA as defined by OMB. Under our current regulations, the 
metropolitan area portion of locality pay areas changes automatically 
when OMB revises its metropolitan area definitions.
    In October 2000, the Federal Salary Council recommended that the 
Pay Agent revise the regulations to hold the current MSA or CMSA 
portion of locality pay areas constant until the Pay Agent and the 
Federal Salary Council have had an opportunity to review new 
metropolitan area definitions and new commuting patterns and other data 
from the 2000 census. OMB plans to revise its metropolitan area 
definitions substantially in 2003 based on new census data and new 
criteria. The Council also recommended that the Pay Agent continue to 
monitor counties adjacent to locality pay areas during this period and 
make minor adjustments in locality pay area boundaries if a 
particularly egregious situation justifies such action.
    Under the final rule, locality pay areas will no longer change 
automatically if OMB changes metropolitan area definitions. The new 
reference to the ``geographic scope'' of an MSA or CMSA is designed to 
make certain that locality pay area boundaries are not affected by 
county name changes or changes in the geographic boundaries of counties 
within the original geographic scope of the MSA. Dade County, FL, 
changed its name to Miami-Dade County, and the County of Broomfield, 
CO, recently was created out of portions of Adams, Boulder, Jefferson, 
and Weld Counties. All of these areas were already within the 
geographic scope of the Miami or Denver CMSA, as listed in attachments 
to OMB Bulletin 99-04, and remain covered by the existing locality pay 
areas.
    A full listing of locality pay areas is at http://opm.gov/oca/02tables/locdef.asp. The change to hold constant the metropolitan area 
portion of locality pay areas will have no effect on current locality 
pay area boundaries or locality rates.
    We received two comments on the proposal. One comment from a 
Federal agency concurred with the proposed rule and the other comment 
from a Federal employee was outside the scope of the proposal.

E.O. 12866, Regulatory Review

    The Office of Management and Budget has reviewed this rule in 
accordance with E.O. 12866.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
will apply only to Federal agencies and employees.

List of Subjects in 5 CFR Part 531

    Government employees, Law enforcement officers, Wages.

Office of Personnel Management.
Kay Coles James,
Director.
    Accordingly, OPM is amending 5 CFR part 531 as follows:

PART 531--PAY UNDER THE GENERAL SCHEDULE

0
1. The authority citation for Part 531 continues to read as follows:


    Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Pub. L. 103-
89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., p. 
316;
    Subpart B also issued under 5 U.S.C. 5303(g), 5333, 5334(a), and 
7701(b)(2);
    Subpart C also issued under 5 U.S.C. 5304, 5305, and 5553; 
sections 302 and 404 of the Federal Employees Pay Comparability Act 
of 1990 (FEPCA), Pub. L. 101-509, 104 Stat. 1462 and 1466; and 
section 3(7) of Pub. L. 102-378, 106 Stat. 1356;
    Subpart D also issued under 5 U.S.C. 5335(g) and 7701(b)(2);
    Subpart E also issued under 5 U.S.C. 5336;
    Subpart F also issued under 5 U.S.C. 5304, 5305(g)(1), and 5553; 
E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682; and E.O. 13106, 
63 FR 68151, 3 CFR, 1998 Comp., p. 224;
    Subpart G also issued under 5 U.S.C. 5304, 5305, and 5553; 
section 302 of FEPCA, Pub.

[[Page 19708]]

L. 101-509, 104 Stat. 1462; and E.O. 12786, 56 FR 67453, 3 CFR, 1991 
Comp., p. 376.

Subpart F--Locality-Based Comparability Payments

0
2. In Sec.  531.602, the definitions of CMSA and MSA are revised to 
read as follows:


Sec.  531.602  Definitions.

* * * * *
    CMSA means the geographic scope of a Consolidated Metropolitan 
Statistical Area, as defined by the Office of Management and Budget 
(OMB) in List II of the attachments to OMB Bulletin 99-04.
* * * * *
    MSA means the geographic scope of a Metropolitan Statistical Area, 
as defined by the Office of Management and Budget (OMB) in List I of 
the attachments to OMB Bulletin 99-04.
* * * * *

0
3. In Sec.  531.606, paragraph (g) is revised to read as follows:


Sec.  531.606  Administration of locality rates of pay.

* * * * *
    (g) In the event of a change in the geographic coverage of a 
locality pay area, the effective date of the change in an employee's 
entitlement to a locality rate of pay under this subpart is the first 
day of the first applicable pay period beginning on or after the date 
on which the change in geographic coverage becomes effective.
* * * * *
[FR Doc. 03-9831 Filed 4-21-03; 8:45 am]
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