LETTER TO ANDREA L. NELSON FROM JOHN E. BACON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R000200060013-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 86
• Document Creation Date: December 23, 2016
• Document Release Date: November 14, 2012
• Sequence Number: 13
• Publication Date: May 24, 1988
• Content Type: LETTER

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Central Intel) `fence Agency
Ms. Andrea L. Nelson, Counsel
Subcommittee on Civil Service
122 Cannon House Office Building
Washington, D.C. 20515
24 May 1988
(74A ~?qy
Last week, you requested that we provide you with the
estimated costs for implementation of Section 12 of the
Excellence in Government Management Act of 1988. I have asked
the people responsible for managing the Agency Undergraduate
Program, which is analogous to Section 12, to estimate the
costs based on actual Agency experience.
The actual average cost per student, per year is placed at
$18,800.00. Item costs are as follows:
--Tuition:
$7500.00.
--Books/Study material:
$500.00.
--Salary (GS 2)
$10,800.00.
STAT
The Agency also pays for room and board for the student.
These costs--$5,000.00 per year, per student-- were not
included in our estimate because Section 12 of the bill did not
allow for such reimbursement. Because NSA does not pay for
room and board, the House Permanent Select Intelligence
Committee in its Report on the FY 1989 Authorization Bill
instructed the Agency and NSA to resolve this inconsistency. I
have reason to believe that the CIA will probably stop paying
for student room and board next year.
I hope this information is helpful.
is anything more you need.
Let me know if there
Office of Congressional Affairs
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100TH CONGRESS l HOUSE OF REPRESENTATIVES { REPORT
2d Session J 100-759
EXCELLENCE IN GOVERNMENT MANAGEMENT ACT OF
1988
JULY 7, 1988.-Committed to the Committee of the Whole House on the State of the
Union and ordered to be printed
Mrs. SCHROEDER, from the Committee on Post Office and Civil
Service, submitted the following
REPORT
[To accompany H.R. 2882]
The Committee on Post Office and Civil Service, to whom was re-
ferred the bill (H.R. 2882) to amend title 5, United States Code, to
increase the productivity of the Government by promoting excel-
lence in Government management and by reducing improper politi-
cal pressures on career civil servants, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu thereof
the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.-This Act may be cited as the "Excellence in Government Man-
agement Act of 1988".
(b) TABLE OF CONTENTS.-The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Statement of purpose.
Sec. 3. Designation of career reserved positions.
Sec. 4. Calculating the maximum number of noncareer appointees allowed.
Sec. 5. Limitation on the number of positions which may be excepted from the competitive service because of
their confidential, policy-making, or policy-determining character.
Sec. 6. Report relating to individuals receiving certain appointments after holding noncareer positions.
Sec. 7.OPM qualifications review boards relating to appointments in the Senior Executive Service.
Sec. 8. Geographic relocation benefits.
Sec. 9. Restriction on the authority to reassign, detail, or remove a career appointee in the Senior Executive
Service within 120 days after the appointment of certain superiors.
Sec. 10. Encouragement of sabbaticals and other forms of professional development by career appointees in the
SES.
Sec. 11. Reports on the Senior Executive Service.
Sec. 12. Government service fellowship programs.
Sec. 13. Training requirements for supervisors, managers, and executives.
Sec. 14. Adjustment of Presidential rank award amounts.
Sec. 15. Requirement that the Director of OPM periodically consult with certain advisory groups consisting of
Federal employees.
Sec. 16. Limitation on payments.
19-006
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SEC. 2. STATEMENT OF PURPOSE.
The purpose of this Act is to increase the productivity and effectiveness of the
Government by-
(1) increasing the ability of the Government to recruit, retain, and effectively
deploy the best employees;
(2) ensuring that those who occupy management positions in Government are
qualified to do so;
(3) providing career civil servants with an expanded role in the management
of the civil service; and
(4) avoiding improper political pressures on career civil servants.
SEC. 3. DESIGNATION OF CAREER RESERVED POSITIONS.
The second sentence of section 3132(bXl) of title 5, United States Code, is amended
to read as follows: "The criteria and regulations shall provide that a position shall
be designated as a career reserved position if the filling of the position by a career
appointee is necessary to insure impartiality, or the public's confidence in the im-
partiality, of the Government, if the principal responsibilities of the position relate
to managing career employees, or if otherwise necessary to carry out the purposes
of this subchapter.".
SEC. 4. CALCULATING THE MAXIMUM NUMBER OF NONCAREER APPOINTEES ALLOWED.
(a) LIMITATIONS BASED ON AVERAGE LEVELS.-
(1) IN GENERAL.-Section 3134 of title 5, United States Code, is amended-
(A) in subsection (b), by striking the second sentence and inserting in lieu
thereof the following: "The total number of noncareer appointees in all
agencies may not, during any fiscal year, exceed 10 percent of the average
number of senior executives employed in Senior Executive Service positions
during the preceding fiscal year, as determined under subsection (fXl).";
(B) by amending subsection (e) to read as follows:
"(e) The total number of limited emergency appointees and limited term appoint-
ees in all agencies may not, during any fiscal year, exceed 5 percent of the average
number of senior executives employed in Senior Executive Service positions during
the preceding fiscal year, as determined under subsection (fXl).";
(C) by amending subsection (d) to read as follows:
"(dxl) The number of Senior Executive Service positions in any agency which are
filled by noncareer appointees may not at any time exceed 25 percent of the average
number of senior executives employed in Senior Executive Service positions in the
agency during the preceding fiscal year, as determined under subsection (02).
"(2XA) This subsection shall not apply in the case of any agency having fewer
than 4 Senior Executive Service positions.
"(B) The Office may, in the case of a newly created agency or an agency which
undergoes a substantial change in function, waive the application of this subsection
for not to exceed 2 years. The Office shall report any waiver under this subpara-
graph to the Congress in writing."; and
(D) by adding at the end the following.
"(f (1) For purposes of subsections (b) and (e), the average number of senior execu-
tives employed in Senior Executive Service positions during a fiscal year shall be
equal to-
"(A) the sum of the total number of senior executives employed in Senior Ex-
ecutive Service positions as of December 31, March 31, June 30, and September
30 of such fiscal year, respectively;
"(B) divided by 4.
"(2) For purposes of subsection (dXl), the average number of senior executives em-
ployed in Senior Executive Service positions in an agency during a fiscal year shall
be equal to-
"(A) the sum of the total number of senior executives employed in Senior Ex-
ecutive Service positions in such agency as of December 31, March 31, June 30,
and September 30 of such fiscal year, respectively;
"(B) divided by 4.".
(2) EFFECTIVE DATE.-The amendments made by paragraph (1) shall become
effective on January 20, 1989.
(b) TEMPORARY ALTERNATIVE LIMITATION.-
(1) GENERAL RULE.-Effective for the period beginning on January 20, 1989,
and ending at the end of fiscal year 1990, and notwithstanding any amendment
made by subsection (aX1XC), the number of Senior Executive Service positions
in any agency which may be filled by noncareer appointees may not at any time
exceed-
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(A) the maximum number which would then otherwise be allowable
under section 3134(dXl) of title 5, United States Code (as amended by sub-
section (aX1XC)); or
(B) if greater, the number determined in accordance with section
3134(dX2) of such title (as in effect on the date of the enactment of this Act).
(2) DEFlrrrrloxs.-For purposes of paragraph (1), "Senior Executive Service po-
sition", "agency", and "noncareer appointee" have the meanings set forth in
section 3132(a) of title 5, United States Code.
SEC. 5. LIMITATION ON THE NUMBER OF POSITIONS WHICH MAY BE EXCEPTED FROM THE COM-
PETITIVE SERVICE BECAUSE OF THEIR CONFIDENTIAL, POLICY-MAKING, OR POLICY-
DETERMINING CHARACTER.
(a) IN GENERAL.-Section 3302 of title 5, United States Code, is amended-
(1) by inserting "(a)" before "The President"; and
(2) by adding at the end the following:
"(bXl) Subject to paragraph (2), the maximum number of positions which may be
excepted from the competitive service under the rules because of their confidential,
policy-making, or policy-determining character may not exceed 1,000.
"(2) The limitation under this subsection shall not apply with respect to any posi-
tion which is in grade GS-12 of the General Schedule or lower.".
(b) CONFORMING AMENDMENTS.-Sections 3304(b) and 3361 of title 5, United States
Code, are amended by striking "3302" and inserting in lieu thereof "3302(a)".
(c) EFFECTIVE DATE.-The amendments made by this section shall become effective
on January 20, 1989.
SEC. 6. REPORT RELATING TO INDIVIDUALS RECEIVING CERTAIN APPOINTMENTS AFTER HOLD-
ING NONCAREER POSITIONS.
(a) IN GENERAL.-Title 5, United States Code, is amended by inserting after sec-
tion 3328 the following:
"? 3329. Reporting requirement
"(a) For the purpose of this section-
"(1) the term 'noncareer appointment' means an appointment-
"(A) to a position excepted from the competitive service because of its
confidential, policy-making, or policy-determining character;
"(B) as a noncareer appointee in the Senior Executive Service;
"(C) as a limited term or limited emergency appointee in the Senior Exec-
utive Service, excluding any appointee who, immediately before becoming
such an appointee, held an appointment in the competitive service; or
"(D) described in paragraph (2) or (4) of section 3324(a); and
"(2) the terms 'Senior Executive Service position', 'career appointee', 'nonca-
reer appointee', 'limited term appointee', and 'limited emergency appointee'
have the meanings set forth in section 3132(a).
"(b) The Office of Personnel Management shall submit a written report to the
Committee on Post Office and Civil Service of the House of Representatives and the
Committee on Governmental Affairs of the Senate with respect to any individual
who is appointed to a position within the competitive service or to a position within
the Senior Executive Service as a career appointee if, at any time during the 6-
month period ending on the effective date of the appointment, such individual
served under a noncareer appointment in any agency (including the Executive
Office of the President).
"(c) A report under subsection (b)-
"(1) shall be submitted no later than 30 days after the effective date of the
individual's appointment; and
"(2) shall include-
"(A) the title of the position within the competitive service or within the
Senior Executive Service to which the individual is being or was most re-
cently appointed or assigned;
"(B) the title of any position held by such individual under a noncareer
appointment during the 6-month period ending on the effective date of the
appointment referred to in subparagraph (A);
"(C) a brief description of the individual's qualifications with respect to
the position referred to in subparagraph (A); and
"(D) a brief description of the process by which the position under sub-
paragraph (A) was filled.
However, the individual's name may not be used in any such report.".
(b) CHAPTER ANALYSIS.-The analysis for chapter 33 of title 5, United States Code,
is amended by inserting after the item relating to section 3328 the following:
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"3329. Reporting requirement.".
SEC. 7. OPM QUALIFICATIONS REVIEW BOARDS RELATING TO APPOINTMENTS IN THE SENIOR EX-
ECUTIVE SERVICE.
(a) CAREER APPOINTMENTS.-
(1) ESTABLISHMENT.-Section 3393(cXl) of title 5, United States Code, is
amended to read as follows:
"(cXl) The Office shall establish a qualifications review board. It is the function of
the board to certify the executive qualifications of candidates for initial appoint-
ment as career appointees in accordance with regulations prescribed by the Office.
Of the members of the board, more than one-half shall be appointed from among
career appointees. Each appointment to the board shall be for a term of 2 years and
shall be made on a non-partisan basis, the sole selection criterion being the profes-
sional knowledge of public management and knowledge of appropriate occupational
fields. Any panel of board members may, if so authorized by the board, take any
action which the board is authorized to take, except that any such panel shall con-
sist of at least 3 members and more than one-half of the panel members shall be
career appointees.".
(2) CONFORMING AMENDMENT.-Section 3393(cX2) of title 5, United States
Code, is amended by striking "the various qualification review boards," and in-
serting in lieu thereof "the qualifications review board,".
(b) NONCAREER AND LIMITED APPOINTMENTs.-Section 3394 of title 5, United States
Code, is amended by adding at the end the following:
"(c) The Office shall establish a qualifications review board which shall certify the
executive qualifications of candidates for initial appointment as noncareer, limited
term, or limited emergency appointees, in accordance with regulations prescribed by
the Office. Appointments to the board shall be made subject to the same terms and
conditions as apply with respect to the qualifications review board under section
3393(c), but without regard to the requirement that more than one-half of all board
members (or members of a duly constituted panel) be career appointees.".
SEC. 8. GEOGRAPHIC RELOCATION BENEFITS.
Section 3395(a) of title 5, United States Code, is amended by adding at the end the
following:
"(3XA) Subject to subparagraph (C), an agency shall pay from its appropriations a
geographic relocation benefit to any career appointee reassigned to a Senior Execu-
tive Service position outside the career appointee's commuting area.
"B) An amount under this paragraph-
"(i) shall be equal to-
"(I) 10 percent of the annual rate of basic pay payable to the career ap-
pointee immediately before the reassignment; and
"(II) any additional amount, not to exceed the amount under subclause
(I), which the agency head considers appropriate, taking into account any
higher costs of living resulting from the reassignment, any moving ex-
penses not reimbursable or otherwise covered by the Government, and
other similar factors;
"(ii) shall be in addition to basic pay, and any other amount otherwise pay-
able under this title; and
"(iii) shall be paid in a lump sum.
"(C) An agency may pay a geographic relocation benefit under this paragraph
only after the individual reassigned agrees in writing to remain in Government
service for 12 months after the reassignment, unless separated for reasons beyond
such individual's control which are acceptable to the agency concerned. If the indi-
vidual violates the agreement, the amount paid under this paragraph shall be recov-
erable from the individual as a debt due the United States.
"(D) Benefits afforded under this paragraph in the case of a career appointee who
is reassigned to another position within the same agency shall also be afforded in
the case of a career appointee who is transferred to another position in a different
agency. For purposes of administering this paragraph with respect to a transferred
career appointee, any reference in the preceding subparagraphs to an agency shall
be considered to be a reference to the receiving agency, and any reference to an
agency head shall be considered to be a reference to the head of the receiving
agency.
"(4XA) Under such regulations as the President may prescribe, an agency may, at
the time of a career appointee's reassignment to a Senior Executive Service position
outside the career appointee's commuting area, enter into an agreement under
which the employing agency agrees that, if the career appointee accepts the reas-
signment and satisfies the career appointee's obligations under the agreement with
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respect to the reassignment, the agency will pay travel and transportation expenses
(as specified in the agreement) incident to the career appointee's relocating from the
place of reassignment.
"(B) The types of expenses allowable under this paragraph shall include any ex-
penses, allowances, or other benefits (including those associated with one's immedi-
ate family and for household goods or personal effects) which would be available
under subchapter II of chapter 57 if the relocation involved represented a transfer,
in the interest of the Government, from one official station to another for perma-
nent duty, as referred to in section 5724(a).
"(C) An agreement under this paragraph may not be entered into unless-
11(i) at the time of the reassignment, the career appointee meets the age and
service requirements for entitlement to an immediate annuity under subchapter
III of chapter 83, or under chapter 84; or
"(ii) the career appointee would meet the requirements for entitlement to an
immediate annuity if such career appointee were to be involuntarily separated
for failure to accept the reassignment.
"(D) An agreement under this paragraph shall include-
"(i) provisions relating to the period of time within which the relocation must
be made after completing the requirements associated with the reassignment;
"(ii) provisions relating to the place to which the relocation must or may be
made in order to qualify for the benefits involved; and
"(iii) such other terms or conditions as may be appropriate.
"(EXi) Benefits under this paragraph shall not be available in connection with any
relocation to any place outside the United States.
"(ii) For purposes of this subparagraph, `United States', means the several States,
the District of Columbia, the Commonwealth of Puerto Rico, and any territory or
possession of the United States.
"(F) Benefits under this paragraph shall be in addition to any benefit provided
under paragraph (3) or any other provision of law.
"(G) A career appointee may not receive benefits under this paragraph in connec-
tion with more than 1 relocation.
"(H) Under the regulations, the benefits allowable under this paragraph in the
case of a career appointee who is reassigned to another position within the same
agency shall also be available in the case of a career appointee who is transferred to
another position in a different agency, except that any determination of eligibility
shall be made without regard to subparagraph (Cxii). Any authority under this sub-
paragraph may be exercised only by the receiving agency.".
SEC. 9. RESTRICTION ON THE AUTHORITY TO REASSIGN, DETAIL, OR REMOVE A CAREER AP-
POINTEE IN THE SENIOR EXECUTIVE SERVICE WITHIN 120 DAYS AFTER THE APPOINT-
MENT OF CERTAIN SUPERIORS.
(a) REASSIGNMENT OR DETAIL.-Section 3395(e) of title 5, United States Code, is
amended-
(1) by striking subparagraph (B) of paragraph (1) and inserting in lieu thereof
the following:
"(B) within 120 days after the appointment in the agency of a noncareer ap-
pointee who has the authority to reassign or detail the career appointee."; and
(2) by adding at the end the following:
"(3) For the purpose of applying paragraph (1) to any career appointee, any days
(not to exceed a total of 60) during which such career appointee is serving pursuant
to a detail or other temporary assignment apart from such appointee's regular posi-
tion shall not be counted in determining the number of days that have elapsed since
an appointment referred to in subparagraph (A) or (B) of such paragraph.".
(b) REMOVAL.-Section 3592(b) of title 5, United States Code, is amended-
(1) by striking subparagraph (B) of paragraph (1) and inserting in lieu thereof
the following:
"(B) within 120 days after the appointment in the agency of a noncareer ap-
pointee who has the authority to remove the career appointee."; and
(2) by adding at the end the following:
"(3) For the purpose of applying paragraph (1) to any career appointee, any days
(not to exceed a total of 60) during which such career appointee is serving pursuant
to a detail or other temporary assignment apart from such appointee's regular posi-
tion shall not be counted in determining the number of days that have elapsed since
an appointment referred to in subparagraph (A) or (B) of such paragraph.".
SEC. 10. ENCOURAGEMENT OF SABBATICALS AND OTHER FORMS OF PROFESSIONAL DEVELOP-
MENT BY CAREER APPOINTEES IN THE SES.
Section 3396(d) of title 5, United States Code, is amended-
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(1) by inserting "(1)" after "(d)"; and
(2) by adding at the end the following:
"(2) In order to promote the professional development of career appointees and to
assist them in achieving their maximum levels of proficiency, the Office shall, in a
manner consistent with the needs of the Government, provide appropriate informa-
tional services and otherwise encourage career appointees to take advantage of any
opportunities relating to-
"(A) sabbaticals;
"(B) training; or
"(C) details or other temporary assignments in other agencies, State or local
government, or the private sector.".
SEC. 11. REPORTS ON THE SENIOR EXECUTIVE SERVICE.
(a) INFORMATION RELATING TO SABBATICALS AND OTHER FORMS OF PROFESSIONAL
DEvELOPMErrr.-Section 3135(a) of title 5, United States Code, is amended-
(1) by striking "and" at the end of paragraph (9);
(2) by redesignating paragraph (10) as paragraph (11); and
(3) by inserting after paragraph (9) the following:
"(10) in the aggregate and by agency, the number of career appointees who
applied for sabbaticals under section 3396(c) during the preceding fiscal year
and the number of applications granted (including the name of each individual
whose application was granted and a brief description of how the sabbatical was
to be used); and".
(b) OTHER AMENDMENTS.-Section 3135 of title 5, United States Code, is further
amended-
(1) in the first sentence of subsection (a), by striking "during each odd-num-
bered" and inserting in lieu thereof "each";
(2) by striking "(a) The" and inserting in lieu thereof "The"; and
(3) by striking subsection (b).
(c) SECTION HEADING.-
(1) AMENDMENT TO SECTION.-The heading for section 3135 of title 5, United
States Code, is amended to read as follows:
" 0 3135. Annual report".
(2) AMENDMENT To CHAPTER ANALYSIS.-The analysis for chapter 31 of title 5,
United States Code, is amended by striking the item relating to section 3135 and
inserting the following:
"3135. Annual report.".
SEC. 12. GOVERNMENT SERVICE FELLOWSHIP PROGRAMS.
(a) IN GENERAL.-Subpart B of part III of title 5, United States Code, is amended
by adding at the end the following:
"CHAPTER 37-GOVERNMENT SERVICE FELLOWSHIP
PROGRAMS
Sec
3701. Definitions.
"3702. Establishment.
"3703. General requirements for fellowship programs.
3704. Terms and conditions for individual participation.
3705. Reports.
" 0 3701. Definitions
"For the purpose of this chapter-
"(1) the term `agency' means an Executive agency and a military department;
"(2) the term 'institution of higher education' means an educational institu-
tion in any State which-
"(A) admits as regular students only individuals having a certificate of
graduation from a high school, or the recognized equivalent of such a certif-
icate;
"(B) is legally authorized within such State to provide a program of edu-
cation beyond high school;
"(C) provides an educational program for which it awards a baccalaureate
degree; and
"(D) is accredited by a nationally recognized accrediting agency or asso-
ciation; and
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"(3) the term 'State' means a State of the United States, the District of Co-
lumbia, the Commonwealth of Puerto Rico, and any territory or possession of
the United States.
"? 3702. Establishment
"The head of an agency may, by regulations consistent with guidelines which the
Office of Personnel Management shall prescribe, establish a program under which
fellowships may be awarded to individuals pursuing post-secondary degrees in fields
of study as to which the agency requires, or anticipates that it will require, employ-
ees with proficiency or expertise.
"$ 3703. General requirements for fellowship programs
"(aXi) Under any agency program established under this chapter, the primary
bases for the selection of fellowship repipients shall be individual accomplishments
and demonstrated abilities or aptitudes.
"(2) In addition to the criteria under paragraph (1), an agency may also, consistent
with the merit system principles set forth in paragraphs (1) and (2) of section
2301(b)-
"(A) take into consideration the need to maintain a balanced workforce in
which women and members of racial and ethnic minority groups are appropri-
ately represented in Government service; and
"(B) to the extent permitted by section 3110(b) and any other provision of law
which may apply, and if all other things are equal, give preference to a child of
a career employee serving in or under an agency.
"(bXl) A fellowship may be awarded by an agency to a student under this chapter
only for any period during which such student is pursuing a baccalaureate or ad-
vanced degree at an institution of higher education which is qualified to participate
in the agency's program under this chapter.
"(2) An institution of higher education shall not be considered qualified to partici-
pate in an agency's program under this chapter unless it demonstrates that it has
established a system under which fellowship recipients would receive academic and
career counseling, particularly with respect to any subjects or areas which the
agency head may from time to time identify.
"(c) Agencies may offer-
"(1) fellowships covering the full period of a student's undergraduate educa-
tion, not to exceed 4 years; and
"(2) fellowships covering the last 2 years of a student's undergraduate educa-
tion (or the equivalent thereof, in the case of individuals enrolled in accelerated
programs).
To the extent the head of an agency considers appropriate, fellowships may also be
offered to students pursuing an advanced degree.
"? 3704. Terms and conditions for individual participation
"(aXi) A fellowship recipient is entitled to receive, by advance payment or reim-
bursement-
"(A) the full cost of tuition; and
"(B) the full cost of books and other appropriate study materials.
"(2) In addition to the benefits under paragraph (1), so long as a student's fellow-
ship continues, such student is entitled to receive, on a biweekly basis-
"(A) during each academic term, an amount equal to the minimum biweekly
rate of basic pay payable for grade GS-2 of the General Schedule; and
"(B) with respect to each period during which the student is serving in a posi-
tion in fulfillment of work requirements under subsection (bX1XA), the mini-
mum biweekly rate of basic pay payable for the grade of the position under the
General Schedule or, in the case of a position not covered by the General Sched-
ule, the minimum biweekly rate of basic pay normally payable for the position.
"(3) A fellowship recipient shall not, for any purpose, be considered an employee
by reason of such recipient's participation in a program under this chapter except-
"(A) in accordance with the terms under which the individual is appointed to
a position in connection with fulfilling any work requirement under subsection
(bX1XA); and
"(B) as provided under subsection (bX3XD).
"(bXl) To be eligible for a fellowship under this chapter, an individual must agree
in writing-
"(A) to satisfy such work requirements as the agency head may by regulation
prescribe with respect to the period before completion of such individual's un-
dergraduate or advanced studies, as the case may be; and
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"(B) to work for a period after completing such individual's undergraduate or
advanced studies (as the case may be) equivalent to the period of time over
which any biweekly payments described in subsection (aX2) were made.
"(2) With respect to paragraph (1XA)-
"(A) work requirements shall be established in such a way so that they may
be satisfied during periods between consecutive academic terms in a year, or
during the period between consecutive academic years;
"(B) any position to which the individual is appointed, and the types of tasks
required to be performed, shall be consistent with the individual's background
and experience, and shall be determined in a way that complements the individ-
ual's education and contributes to the individual's preparation for post fellow-
ship Government service; and
` (C) the individual-
"(i) may not receive any appointment other than a temporary appoint-
ment not to exceed 120 days; and
"(ii) shall be appointed in accordance with such procedures as the agency
head (in consultation with the Director of the Office of Personnel Manage-
ment) shall by regulation prescribe, including provisions under which any
application or other appointment-related requirements may be waived.
An agency may, for any individual, waive the work requirements under paragraph
(1XA), in whole or in part, in such circumstances as the agency may by regulation
prescribe.
"(3) With respect to paragraph (1)(B)-
"(A) the position to which an individual is appointed shall be selected in a
way that, to the extent practicable, makes use of the individual's education and
training;
"(B) appointment shall be carried out in accordance with such procedures as
the agency head (in consultation with the Director of the Office of Personnel
Management) shall by regulation prescribe, including provisions under which
an individual's preferences as to geographic location shall be taken into ac-
count, any application or other appointment-related requirements may be
waived, and appropriate minimum levels of pay and responsibility are fixed for
post-fellowship appointment;
"(C) appropriate opportunities for continuing education or career develop-
ment, such as seminars, conferences, and specialized training, shall be offered
during post-fellowship service; and
"(D) the individual shall, while performing post-fellowship service, be consid-
ered an employee of the employing agency for all purposes, including for pur-
poses of determining basic pay and eligibility for benefits.
Nothing in this paragraph shall be considered to authorize the appointment of an
individual to a position other than a permanent position which is-
Ai) in the competitive service; or
"(ii) excepted from the competitive service either under regulations prescribed
by the Office of Personnel Management (other than a position of a confidential,
policy-making, or policy-determining character) or by statute.
"(cXl) In addition to the matters described in subsection (b), each agreement re-
ferred to in such subsection shall include provisions under which-
"(A) an agency shall reserve the right to terminate, at.. any time, an. individ-
ual's fellowship, or post-fellowship employment with the United States (in ful-
fillment of such individual's obligations to the agency under this chapter), based
on misconduct or any other reason which may be specified in the agreement;
and
`(B) the student agrees to reimburse the agency for any amounts which were
paid either to or on behalf of the student under the fellowship program (exclud-
ing any amounts under subsection (aX2) and any amounts based on post-fellow-
ship service) if the individual involved is unable to complete the required educa-
tional course of study or otherwise satisfy such individual's obligations under
the agreement.
"(2XAXi) The obligation to reimburse the United States under :n y provision de-
scribed in paragraph (1XB) shall for all purposes be treated as debt owing the
United States.
"(ii) The head of an agency may release an individual from the obligation referred
to in clause (i), or from any part thereof, if the agency head determines that equity
or the interests of the United States so require.
"(B) Termination of an agreement by an agency under paragraph (1XA) releases
the individual from ?a11`requirements and obligations toiro'hich such individual would
otherwise be subject under the agreement.
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3705. Reports
"(01) The head of each agency which establishes a fellowship program under this
chapter shall prepare and submit to the Office, of .Personnel Management an annual
report. Each such report shall. contain-
"(A) a description of the agency's program, including any modifications made
during the period covered by the report;
"(B) the number of individuals participating in the program;
"(C) the criteria by which any students selected during the period covered by
the report were chosen;
"(D) an assessment of how successful the program was, during the period cov-
ered by the report, in meeting the purposes for which the program was estab-
lished; and
"(E) any other information which the agency head considers appropriate.
"(2) The Office-
"(A) shall establish guidelines relating to the preparation and submission of
reports under paragraph (1); and
"(B) shall transmit to Congress all agency reports received by the Office each
year, together with any written comments of the Office.
"(b) The General Accounting Office shall annually review each fellowship pro-
gram established under this chapter to ensure that such program is in compliance
with the requirements of this chapter (particularly those under section 3703(ax2)).
Findings under each such review shall be reported to the Congress in writing.".
(b) CONFORMING AMENDMENT.-The analysis for part III of title 5, United States
Code, is amended by inserting after the item relating to chapter 35 the following:
"37. Government Service Fellowship Programs ......................................................................................................... 3701".
SEC. 13. TRAINING REQUIREMENTS FOR SUPERVISORS, MANAGERS, AND EXECUTIVES.
(a) SENIOR EXECUTIVES, SUPERVISORS, AND MANAGEMENT OFFICIALS.-Section 4103
of title 5, United States Code, is amended by adding at the end the following:
"(c)(1) For the purpose of this subsection-
"(A) the term `senior executive' has the meaning given under section
3132(a)(3);
"(B) the term `supervisor' has the meaning given under section 7103(axlO);
and
"(C) the term `management official' has the meaning given under section
7103(aXll).
"(2) The regulations prescribed under section 4118 shall include provisions under
which each senior executive, supervisor, and management official shall, except as
provided in paragraph (3), be required to participate in a minimum number of hours
of executive,. supervisory or management training each year (or over the course of
such greater period as the Office may prescribe). The regulations shall specify, by
appropriate categories, the minimum period of training required for individuals sub-
ject to this subsection.
"(3) Under the regulations, an agency head may exclude an individual from this
subsection if the period of training required under this subsection would be inappro-
priate considering the individual's anticipated term of service.
"(4) The regulations may include provisions under which a period of participation
in the Executive Exchange Program of the President's Commission on Executive Ex-
change may be counted toward satisfying the requirements of this subsection.".
(b) OTHER OFFICIALS.-
(1) IN GENERAL.-Chapter 41 of title 5, United States Code, is amended by
adding at the end the following:
"? 4120. Training for noncareer appointees
"(a) For the purpose of this section, the term `noncareer appointee' means-
"(1) an individual appointed by the President to an office or position in the
executive branch (whether or not Senate confirmation is required);
"(2) a noncareer appointee, as defined by section 3132(aX7);
"(3) an individual appointed to a position which is in grade GS-13 of the Gen-
eral Schedule or higher, and which is excepted from the competitive service be-
cause of the confidential, policy-making, or policy-determining character of the
position; and
"(4) any other individual holding a similar appointment, as determined under
regulations prescribed by the President.
"(b) The Director of the Office of Personnel Management shall establish a train-
ing program designed to acquaint noncareer appointees with the operations of the
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Government, procedures covering the civil service, good public management prac-
tices, and ethical standards for public servants.
"(c) Under such regulations as the President may prescribe, each noncareer ap-
pointee shall be required to complete an appropriate period of training under this
section before the end of the 90-day period beginning on the date on which that indi-
vidual's appointment becomes final, unless-
"(1) extraordinary circumstances prevent completion within such period; or
"(2) participation in the training program is unnecessary, due to the individ-
ual's having recently completed a period of Government service, having recent-
ly completed a similar period of training, or otherwise, as determined under
those regulations.
"(d) Under such regulations as the President may prescribe, an individual who
has been nominated by the President for an office or position requiring Senate con-
firmation may, prior to final Senate action on that nomination, be allowed to par-
ticipate in training under this section.".
(2) CHAPTER ANALYSIS.-The analysis for chapter 41 of title 5, United States
Code, is amended by adding at the end the following:
"4120. Training for noncareer appointees.".
SEC. 14. ADJUSTMENT OF PRESIDENTIAL RANK AWARD AMOUNTS.
(a) IN GENERAL.-Section 4507(e) of title 5, United States Code, is amended by
adding at the end the following:
"(3XA) Subject to subparagraph (B), whenever an adjustment takes effect under
section 5305 in the rates of pay under the General Schedule, each dollar amount
specified in the preceding provisions of this subsection shall be adjusted by an
amount, rounded to the nearest multiple of $100 (or, if midway between multiples of
$100, to the next higher multiple of $100), equal to the percentage corresponding to
the overall average percentage of the adjustment in the rates of pay under the Gen-
eral Schedule (as set forth in the report transmitted to the Congress under such sec-
tion).
"(B) Each adjustment under section 5305 which first takes effect (or which first
took effect) after September 30, 1987, shall be taken into account for purposes of
subparagraph (A).".
(b) APPLICABILITY.-The amendment made by subsection (a) shall not apply with
respect to any award paid before the date of the enactment of this Act.
SEC. 15. REQUIREMENT THAT THE DIRECTOR OF OPM PERIODICALLY CONSULT WITH CERTAIN
ADVISORY GROUPS CONSISTING OF FEDERAL EMPLOYEES.
Section 1103 of title 5, United States Code, is amended by adding at the end the
following:
"(cXl) In order to assist the Director in discharging obligations relating to the
management of the Senior Executive Service, the Director shall establish and peri-
odically consult with a panel of career appointees (as defined by section 3132(aX4))
who-
"(A) shall be appointed by the Director from among individuals generally rec-
ognized for their knowledge, interest, and experience with respect to matters re-
lating to executive management, or for the excellence of their performance as
senior executives (as defined by section 3132(aX3)); and
"(B) shall be responsible for providing advice to the Director with respect to
actions affecting the Senior Executive Service.
Appointments under this paragraph may also be made from among former career
appointees.
"(2) In order to assist the Director in discharging obligations relating to the man-
agement of the civil service, the Director shall establish and periodically consult
with a panel of employees holding career appointments in the civil service who-
"(A) shall be appointed by the Director from among individuals (including in-
dividuals on leave without pay to serve as a full-time officer or employee of an
organization composed primarily of employees) recommended by labor organiza-
tions or other organizations representing the interests of employees generally or
specific groups of employees; and
"(B) shall be responsible for providing advice to the Director with respect to
actions affecting the civil service.
An individual appointed to a panel under paragraph (1) or (2) shall not be entitled
to any additional pay, allowances, or benefits by reason of appointment to such
panel.".
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SEC. 16. LIMITATION ON PAYMENTS.
Any authority to make payments under any amendment made by this Act shall
be effective only to such extent or in such amounts as are provided for in advance
by appropriation Acts.
EXPLANATION OF AMENDMENT
The committee amendment strikes all after the enacting clause
and inserts a new text. The explanation of the committee amend-
ment is contained in the explanation of the bill set forth later in
this report.
PURPOSE
The purpose of this legislation is to increase the Federal Govern-
ment's ability to recruit, retain, and effectively deploy the best em-
ployees, to ensure that those who occupy management positions are
qualified to do so, to provide career civil servants with a greater
role in managing the civil service, and to avoid improper political
pressures on career civil servants.
COMMITTEE ACTION
On July 1, 1987, Representative Pat Schroeder introduced H.R.
2882, a bill to promote excellence in government management.
H.R. 2882 was referred to the Committee on Post Office and Civil
Service.
The Subcommittee on Civil Service held two hearings on H.R.
2882 (Serial No. 100-46). On March 24, 1988, testimony was pre-
sented by Paul Volcker, Chairman of the National Commission on
the Public Service, accompanied by Norman Ornstein, Commission
Member, and Charles Levine, Commission Deputy Director; Charles
A. Bowsher, Comptroller General of the United States, accompa-
nied by Milton J. Socolar, Assistant Comptroller General, and Ross-
lyn Kleeman, Senior Associate Director, General Government Divi-
sion, General Accounting Office.
Testimony was also presented at the March 24, 1988, hearing by
Ray Kline, President of the National Academy of Public Adminis-
tration; Harry Freeman, Executive Vice President of the American
Express Company; Mark Abramson, Executive Director, Center for
Excellence in Government; Alfred Zuck, Executive Director of the
National Association of Schools of Public Affairs and Administra-
tion; Chester A. Newland, Professor at the University of Southern
California; and Patricia Ingraham, Professor of Public Administra-
tion at the Maxwell School of Syracuse University.
The second hearing was held on April 14, 1988. Testimony was
presented by Carl M. Brauer, Director of the Public/Private Ca-
reers Project, John F. Kennedy School of Government at Harvard
University; G. Jerry Shaw, General Counsel, Senior Executives As-
sociation; Hugh Heclo, Professor, George Mason University; and
Robert Weatherall, Director, Office of Career Services and Pre-Pro-
fessional Advising, Massachusetts Institute of Technology.
On May 19, 1988, the Subcommittee on Civil Service met to con-
sider H.R. 2882. Chairwoman Schroeder offered an amendment in
the nature of a substitute, which was adopted by the subcommittee.
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The subcommittee voted 4-0, a quorum being present, to approve
the bill for full committee consideration.
On June 8, 1988, the Committee on Post Office and Civil Service
ordered H.R. 2882, as amended, favorably reported by a record vote
of 18-1, a quorum being present.
SHORT SUMMARY OF BILL
Section 1 contains the short title-the Excellence in Government
Management Act-and the table of contents.
Section 2 states that the purpose of the act is to increase the pro-
ductivity and effectiveness of Government.
Section 3 requires that a Senior Executive Service (SES) position
be filled only by a career appointee if it is necessary to insure im-
partiality or if a principal responsibility of the job is personnel
management.
Section 4 clarifies that, effective January 20, 1989, the 10 percent
limit on noncareer senior executives government-wide and the 25
percent limitation on individual agencies applies to the average
number of filled positions during the preceding fiscal year, not to
the number of established positions.
Section 5 limits to 1,000 the number of Schedule C (political) ap-
pointees at grades GS-13 or above, effective January 20, 1989.
Section 6 requires the Office of Personnel Management to report
to Congress within 30 days after the appointment to a career posi-
tion of an individual who was, within the preceding six months, a
political appointee. The individual's name will not be reported.
Section 7 establishes one career and one noncareer Qualifications
Review Board (QRB) to certify the Executive qualifications of can-
didates for appointment to SES positions. Members of the QRBs
serve two-year terms.
Section 8 establishes a geographic relocation benefit of no less
than 10 percent nor more than 20 percent of pay for senior execu-
tives who are reassigned outside their commuting area. Further,
section 8 authorizes an agency to enter into an agreement under
which a career senior executive who is eligible to retire accepts a
geographic reassignment in exchange for the Government paying
for that executives last move home.
Section 9 provides that details (of up to 60 days) during the 120-
day "get acquainted period" do not count toward the four-month
period during which a career appointee may not be reassigned or
removed.
Section 10 requires OPM to encourage senior executives to make
greater use of the authority to take sabbaticals. Fewer than two
dozen sabbaticals have been taken since the authority was estab-
lished in 1978.
Section 11 requires OPM to report on sabbatical usage in its
annual report to Congress on the SES.
Section 12 creates a Government service fellowship program,
based on the ROTC model. Agencies may offer scholarships to col-
lege and graduate students on the basis of academic merit (not fi-
nancial need). Agencies may give modest preference to applicants
from groups underrepresented at that agency (racial, ethnic mi-
norities or women) and to children of career Federal employees.
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Fellowship recipients will receive a stipend at grade level GS-2,
and will work between academic terms or during summers at the
sponsoring agency. Upon graduation, the fellowship recipient will
receive a regular appointment and must work for the agency one
year for each year of the fellowship. The agency can terminate the
fellowship program at any time, and if so, there is no payback re-
quirement of either money or service. If the student terminates the
fellowship, the agency is authorized to collect amounts paid for tui-
tion and fees. The General Accounting Office will conduct an
annual audit of the program. Further, each agency shall report an-
nually on its use of the program.
Section 13 requires OPM to establish minimum periods of re-
quired management training over a fixed period of time for super-
visors, managers, and executives. It also establishes a required
training program for political appointees at grade levels GS-13 and
above in the operations of Government and ethics.
Section 14 provides that the dollar value of Presidential rank
awards for outstanding career senior executives is adjusted each
time there is a pay adjustment for the civil service.
Section 15 requires the Director of OPM to appoint two advisory
panels: one made up of career senior executives to advise on the
running of the SES and one made up of career civil servants repre-
senting organizations of civil servants to advise on the running of
the civil service.
Section 16 states that any authority to make payments under
this act shall be effective only to the extent or in such amounts as
provided in appropriations acts.
STATEMENT
Many of the most perceptive students of the public service are
warning that the quality of the Government's workforce has start-
ed and will continue to decline in the years ahead. They say the
Government can no longer attract and retain the best employees,
that the ability of Government to perform key functions is endan-
gered, and that the new retirement system, which permits employ-
ees to leave at any time in their careers without penalty, will exac-
erbate the retention problem.
DATA ON DECLINING QUALITY
The committee has attempted to substantiate allegations of a de-
cline in the quality of employees in the Federal service. Unfortu-
nately, the only data readily available is anecdotal. Most of the an-
ecdotal evidence suggest a quality decline. Some of that informa-
tion is contained in this report.
No one in the Federal Government collects broad-scale, systemat-
ic data on quality of the workforce. On August 19, 1986, the Com-
mittee requested the General Accounting Office (GAO) to develop a
methodology by which quality could be tracked over time. As part
of this study, GAO survey Government agencies and came to the
same conclusion: no one is now tracking quality. The GAO study on
methodology is expected shortly.
In a recent survey of senior executives by Government Executive
magazine, 73 percent of respondents said that their agencies have
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suffered a brain drain. Nearly sixty percent said that the quality of
new recruits is declining.
FACTORS LEADING TO DECLINING QUALITY
While the hard evidence of a quality decline is not available,
there are numerous indicia that make it reasonable to believe that
a quality slide is in progress. Government pay and benefits contin-
ue to decline relative to the private sector. The President's pay
agent stated that a 23.74 percent increase in pay on October 1,
1987, would have been necessary to make Federal salaries compa-
rable to the private sector. Whether this is an accurate gauge of
comparability or not, using the same gauge in 1978 showed a 8.4
percent shortfall. Hence, the Federal pay gap has grown by more
than 15 percent in the past decade.
During the last ten years, the value of the Civil Service Retire-
ment System (CSRS) has been reduced through a variety of budget
cutting devices. For employees first hired in 1984 and later, there
is a new, less generous retirement system, called the Federal Em-
ployees Retirement System (FERS). During the same period, the
cost of health insurance to employees has increased substantially,
while copayment requirements and deductibles have reduced the
value of plans offered through the Federal Employees Health Bene-
fits Program.
The decreasing attractiveness of Federal employment has not
come merely from declining pay and benefits. Over the past decade
and longer, many of the functions of the Federal Government have
been divested to contractors or to State and local governments. In-
creasingly, Federal employees are the overseers of contracts or of
State Government performance of federally-funded functions. Such
work is less satisfying for many individuals. Control over the deliv-
ery of services is attenuated, meaning that the employee garners
less satisfaction from job performance.
This loss of control for civil servants has come in another way as
well. As a result of perceived executive branch abuses, Congress
has imposed many more statutory limitations on executive action.
While these limitations may be well justified individually, they
have the effect of reducing the discretion of Federal employees and,
consequently, make their jobs less interesting.
Another constraint on Federal employees has been the growth
both in the number of political appointees and the types of posi-
tions which those political appointees occupy. The effects of the in-
creased presence of political appointees are numerous. More politi-
cal appointees at the top means fewer promotional opportunities
for career civil servants. This has been especially true in the For-
eign Service.
Political appointees, especially below the cabinet level, tend to
remain in their positions less that two years on average. While
some come into their positions with a strong knowledge of their
program responsibilities, others are ill-equipped to handle their as-
signments without a substantial learning period. This learning
period is often hard on career civil servants who have to conduct
the training and keep the program running at the same time.
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Everyone was to be proud of the work they do. The atmosphere
surrounding Federal employment has made such pride difficult to
maintain. On an nearly daily basis, the press reports revelations of
governmental misconduct. Whether the issue is the Iran-Contra
arms diversion, the Pentagon contracting scandal, or the Attorney
General's involvement with Wedtech, legal and ethical misconduct
have become enmeshed with the public's view of Federal Govern-
ment employees. While most of the documented wrongdoing has
been the action of political appointees, the public fails to make
such distinctions. Rather, there is a general perception that the
whole Government is crooked. This perception makes it very hard
on Federal employees and their families.
Lastly, workers do not like being pilloried by their bosses. The
last two presidents have gratuitously slandered the bureaucracy.
President Reagan recently compared the Soviet bureaucracy to the
American bureaucracy, saying that both stood in the way of
change. This latest charge came on the heels of a decade of nega-
tive Presidential rhetoric which portrayed Government service as
no longer being on the cutting edge of social issues, serving the
public, and making America a better place in which to live. Rather,
Government service has been painted as paper-pushing and not
wealth-producing.
EFFECTS OF QUALITY DECLINE
The effects of the declining quality of Federal employees can not
be pinpointed with precision. Still, the failures of Government serv-
ice can logically be traced to inadequate staff, poorly trained staff,
or poor quality staff. Just as frequent airline travelers each have
their own horror stories of lost luggage and cancelled flights, many
who have dealt with a Federal agency have encountered misinforma-
tion and delays.
The General Accounting Office estimated that, during the 1988
income tax season, the IRS hotline gave taxpayers the wrong infor-
mation 40 percent of the time. The IRS Commissioner said the
error rate was "only" about 25 percent.
Retirees from the Federal Government routinely must wait three
to six months without income, while their agencies and entry level
clerks at the Office of Personnel Management process the annuity
application. These delays cause serious inconvenience and financial
hardship for retirees.
The House Committee on Government Operations recently held
hearings on payment of travel vouchers by the State Department.
Numerous fraudulent or fictitious claims were paid due to inad-
equate staff or poor training of staff. One voucher in the name of
William Shakespeare was paid.
The recent Pentagon procurement scandal demonstrates once
again how weak the controls on defense contracting are. There are
not enough well-trained and effectively-deployed contracting offi-
cials to effectively monitor the multi-billion dollar contracting for
goods and services conducted each year by the Defense Depart-
ment.
Whether these instances of bad Government service are a result
of a decline in worker quality is impossible to know for sure. It is
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clear, however, that a lower quality workforce will be more prone
to error and misjudgment. For the Federal Government to retain
its credibility with the American taxpayer, it needs to do its job
well. The Government can only do its job well if it has qualified
workers to carry out the mission.
A reversal of the quality slide is essential if the Government is to
be able to do its job-to safely launch the next space shuttle, to
oversee development of a $20 million new bomber, or to try to find
a cure for AIDS. HR. 2882 was developed to address the causes of
the Federal workforce's deteriorating quality in a low-cost way.
Not all agencies have trouble recruiting the top-quality talent.
On December 7, 1985, over 16,000 people took the written exam
which is the first step in the hiring process into the Foreign Serv-
ice. Approximately 2,800 were invited back for oral interviews; 220
eventually were offered employment. While numbers fail to tell the
whole story, reports from State Department officials are that high
quality young people continue to seek careers in the Foreign Serv-
ice.
Other agencies have not been as successful. The Internal Reve-
nue Service hires accountants in the 54th percentile of all those
taking the American Certified Public Accounting Examination,
while those being hired by the Big Eight accounting firms rank in
the 86th percentile of that exam, according to testimony presented
to the Subcommittee on Civil Service by Syracuse University Pro-
fessor Patricia Ingraham.
It has been suggested that the Government should not seek out
the best; that the mediocre are good enough. The Subcommittee on
Civil Service heard testimony that, "[The] Government does not
need top graduates . . ., administrative offices staffed with MBA's
from Wharton, or policy shops full of the best and brightest what-
evers. Government's goal should be not employee excellence, but
`employee sufficiency'." (Testimony of Harry L. Freeman before the
Subcommittee on Civil Service, March 24, 1988, quoting Wall
Street Journal article by Terry W. Culler, former Associate Direc-
tor for Workforce Effectiveness, U.S. Office of Personnel Manage-
ment). This view was repudiated by Mr. .Harry Freeman, Executive
Vice President of the American Express Company, and by others as
well, including former Attorney General Elliot Richardson in a
subsequent Wall Street Journal article.
Top graduates perceive the Federal Government as a second
class employer; an employer of last resort. Several factors contrib-
ute to that perception. Bright students who have always been on
the fast track want to do substantive, exciting work quickly. They
view the complex, lengthy Federal hiring process as an ominous
tip-off that nothing in Government is accomplished quickly, and
that initiative on the individual's part will be frustrated.
Pay seems to be less of a factor in recruitment than it is in re-
tention of top employees. For graduates in nontechnical majors,
Federal starting salaries are similar to those offered by small pri-
vate sector firms or non-profit- organizations, but- -decidedly.. -less
than those offered by major private sector firms. Students who
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have majored in engineering or the hard sciences often find the
private sector offering several thousand dollars more per year than
the Federal Government. According to Robert Weatherall, Director
of Career Services for the Massachusetts Institute of Technology, in
1985, only 13 MIT students graduating with bachelors or masters
degrees in engineering took Government jobs, compared to 394 who
entered private industry. In 1986, 10 engineering graduates went to
work for the Government, while 375 went to industry. Of graduates
in electrical engineering, 3 went to Government, and 189 to indus-
try.
Moreover, for a generation that grew up in designer jeans, office
environment is very important, and prospective recruits react
poorly to grey metal desks and computer equipment three-genera-
tions behind the personal computers they use at home.
FELLOWSHIP PROGRAM
Several Federal agencies report they have experienced difficulty
in recruiting top graduates. In the mid-1980's, the Central Intelli-
gence Agency (CIA) and the National Security Agency (NSA) had
come to Congress with similar concerns. In an effort to enhance
these agencies' abilities to recruit the best qualified individuals,
Congress in 1986 authorized internship programs under which the
two agencies could offer scholarships and summer employment to
undergraduate students. In return, the students agree to work for
the agencies upon graduation.
H.R. 2882 proposes to extend this initiative to other Federal
agencies. Section 12 of the bill contains the Government service fel-
lowship program, which provides Federal agencies with a valuable
new tool to use to meet recruiting needs.
Under this authority, an agency head may offer scholarships to
undergraduate students or graduate students on the basis of aca-
demic merit. Financial need is not a basis for receipt of a scholar-
ship. Agencies may give modest preference to women and to mem-
bers of ethnic and racial minority groups underrepresented at that
agency. Agencies are also encouraged to give preference, assuming
the applicants have the requisite academic merit, to the children of
career Federal employees.
During the academic term, fellowship recipients will receive pay-
ment or reimbursement for the costs of tuition, books and other
study materials, and a stipend equivalent to a GS-2 salary (cur-
rently an annual salary of $11,032). During breaks between aca-
demic years (or long breaks between academic terms, such as the
January interim), the fellowship recipient will work for the spon-
soring agency. The agency may place the student in any position,
at any grade level for which the student is qualified. Upon gradua-
tion, the fellowship recipient will receive a regular civil service ap-
pointment and must work for the agency one year for each year of
the fellowship.
The agency can terminate the fellowship at any time, but if it
does so, there is no payback requirement of either money or serv-
ice. If the student terminates the fellowship, the agency is author-
ized to collect the amounts paid for tuition and books, but not the
amounts paid as a stipend or for summer employment. Agencies
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may waive reimbursement if equity or the interests of the Govern-
ment so require. Each agency offering a Fellowship program will
report annually on its use of the program. Further, the General
Accounting Office will conduct an annual audit of each program to
be sure that merit principles are obeyed.
RETENTION
Turnover among the Government's top career executives-mem-
bers of the Senior Executive Service (SES)-averages about 8 per-
cent per year. It would surely be greater were it not for the
"golden handuffs" of the Civil Service Retirement System. Even so,
most members of the Senior Executive Service retire within 3 years
of becoming eligible, with the largest block separating from Feder-
al service between ages 55 and 60. Nearly one-quarter go on to
work in private industry.
In 1987, the General Accounting Office conducted an extensive
study on reasons why career members left the Senior Executive
Service. GAO identified 10 of the most important reasons that
career employees leave the SES.
By far the most significant reason for leaving was dissatisfaction
with top management and dissatisfaction with political appointees,
a reason cited as important by nearly half the departing execu-
tives. Next in importance was perceived favoritism in the distribu-
tion of bonuses. One former SES member commented that SES bo-
nuses were used to supplement the income of favorite employees.
rather than to reflect performance.
Fourth in importance, cited by nearly 40 percent of former
SESers, was frustration with proposed and actual changes to com-
pensation-the Federal pay and retirement systems-and a desire
to leave the Government before additional cuts were made which
would further erode retirement benefits. Next, cited as important
by 37 percent of these executives, was frustration with the criti-
cism of Federal workers by the press, politicians, and the public.
The GAO report quoted one former member who commented that,
"the public degradation of civil service ... is destroying the desire
of people like myself to stay in the Government." Unfair distribu-
tion of rank awards was also cited, along with the view that too
few bonuses were available. Former members were dissatisfied
with the amount of freedom they were given to manage the job as
they saw fit.
Finally, more than one-third of the departing senior executives
cited too much political interference as a significant factor in their
decision to leave.
A recent survey of 4,000 senior executives by Government Execu-
tive magazine reflected similar demoralization among the SES.
Government senior executives felt abused and unappreciated. Fifty
seven percent of the senior executives surveyed said they would not
advise a person starting a career today to enter public service. It is
common for career executives to assert that they would encourage
their own sons and daughters to follow in their footsteps in pursu-
ing a civil service career.
A number of provisions in H.R. 2882 are intended to improve re-
tention of the Government's most experienced managers by
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making continued service more attractive. Specifically, section 8,
provides two types of benefits for geographic relocation of senior
executives. Section 9 provides more protection against reassign-
ment during a political transition. Section 14 provides for the in-
dexing of presidential rank awards to account for inflation.
Early in the Reagan Administration, several agencies adopted
the tactic of reassigning disfavored senior executives to distant geo-
graphic locations-either to a field office, if the executives were
based in Washington, D.C., or vice versa. While the number of such
geographic reassignments was small, the threat was a powerful re-
minder to senior executives of who was in charge. Recently, geo-
graphic reassignments have occurred less frequently.
Regardless of the reason for a reassignment, the exercise fre-
quently results in financial hardship for the senior executive.
Rarely are the reassigned executives fully reimbursed for moving
expenses or losses on the sale or rental of a home. Further, execu-
tives who are reassigned from the field to Washington, D.C., New
York, San Francisco, or other major urban areas face a tremendous
increase in the cost of housing, food, and living expenses. For these
executives, a reassignment can have the effect of a cut in salary.
Some, rather than accept the cut that goes with the reassignment,
choose instead to take a discontinued service annuity and go to the
private sector.
Section 8 of the bill requires an agency to pay a geographic relo-
cation benefit to a career senior executive who is reassigned out-
side the executive's commuting area. The benefit will be 10 percent
of the employee's base pay. In addition, an agency may offer the
executive an additional 10 percent of pay if, for example, the em-
ployee is reassigned to a high-cost area, or for other reasons. The
geographic relocation benefit is in addition to basic pay and will be
paid to the reassigned career employee in a lump sum.
Section 8 also provides for payment of a different type of geo-
graphic relocation benefit to induce a senior executive to accept a
reassignment rather than retire. Under this section, an agency
could offer to a career senior executive who is eligible to retire (in-
cluding someone who would become eligible to retire for failure to
accept reassignment), an agreement to pay travel and transporta-
tion expenses to the place the executive wishes to retire (within the
United States) upon completion of the reassignment.
This latter provision might be used by an agency to move to
Washington a highly skilled manager located in Denver who is
planning to retire to Arizona. Under current law, failure to accept
a directed reassignment could make this manager eligible for an
immediate annuity. Rather than accept a position in Washington,
which would mean that the manager would have to pay his or her
own moving expenses from Washington to Arizona, the senior exec-
utive could retire on the spot. By providing payment for the move
home upon completion of the reassignment, H.R. 2882 eliminates
the financial disincentive associated with the move, and thus en-
courages the senior career executive to accept the reassignment.
Similar provisions apply to a senior career executive who trans-
fers between agencies. In such a case, the receiving agency would
pay the geographic relocation benefits.
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Section 9 of the bill concerns reassignments, details, and remov-
als of career executives. It prohibits the reassignment, detail, or re-
moval of a career executive during the 120-day "get-acquainted
period" after the appointment of a political appointee who has the
authority to reassign, detail, or remove a career appointee. The
Committee amendment clarifies that any detail or reassignment
(up to 60 days) during the get-acquainted period does not count in
determining the start and finish of the 4-month period.
Section 14 of the bill adjusts Presidential rank awards by the
same percentage as the pay increase for employees under the Gen-
eral Schedule. When viewed as a percentage of the senior execu-
tive's base pay, the value of awards for meritorious or distin-
guished service has been seriously eroded during the 10 years since
the awards were established by the Civil Service Reform Act. When
the Civil Service Reform Act was signed into law, a Distinguished
Executive rank equalled 40 percent of an ES-4 salary. Today, a
Distinguished rank award equals 27.6 percent of an ES-4 salary.
Adjusting the level of rank awards by the same measure as the
General Schedule is adjusted annually will guard against further
erosion, but will not restore the lost value of these awards.
Government works when political appointees who know what
they want to accomplish work with career employees who know
how to get it done. The number of political appointees in the Gov-
ernment has mushroomed in the last twenty years, while the over-
all number of employees has remained basically the same. In addi-
tion to making policy decisions, political appointees are now run-
ning major programs. While each Administration has its political
appointee stars, such as William Ruckelshaus, George Ball, George
Shultz, and Joseph Califano, most of the three thousand or so polit-
ical appointees are not of this caliber. Many are campaign workers
or contributors, with no training, experience or aptitude to run
major Federal programs.
Indeed, Senator John Glenn (D-Ohio) noted in a report issued
August 5, 1987, that "the SES has become politicized by the
Reagan Administration at the expense of the career service." Sena-
tor Glenn continued, "This Administration is breaking the spirit of
the career service on the rack of cronyism."
Senator Glenn was particularly disturbed by the increase in po-
litical appointees at agencies having responsibility for managing
the Government's workforce. According to Senator Glenn, "the
Office of Personnel Management decreased its career SES by half,
but increased its noncareer SES by 120 percent and its Schedule C
employees by 86 percent. At the General Services Administration,
the career SES fell by 9 percent, while the noncareer SES jumped
by 166 percent and the Schedule C employees increased by 283 per-
cent."
The committee believes it is inappropriate for political appoint-
ees to be so heavily involved in personnel management. Section 3
of H.R. 2882 expands the circumstances under which a senior exec-
utive service position must be designated as career-reserved to in-
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clude positions the principal responsibilities of which relate to per-
sonnel management of career employees.
The Civil Service Reform Act recognized the value of a career
service's institutional memory and expertise in implementing
policy. The Reform Act set a limit on the number of non-career
senior executives at 25 percent within each agency, and up to 10
percent of the SES government-wide. The common understanding
was that no more than 10 percent of the Senior Executive Service
would be political appointees.
Yet, shortly after enactment of the Reform Act, the issue arose
of whether the 10 percent imitation should be calculated as a per-
centage of authorized positions or as a percentage of positions
filled. With an average vacancy rate of nearly 14 percent during
the first seven years of the SES, the determination of this issue
would raise or lower the total permitted number of political senior
executives by over 100. Even if career appointees were not hired to
fill all slotted positions, agencies could appoint political appointees
up to the percentage limit if the limitation applied to authorized
positions. Thus, the number of political senior executives relative
to career appointees could easily exceed the anticipated limit.
Senator Glenn's comments were based on a report by the Gener-
al Accounting Office entitled "Trends in Career and Noncareer
Employee Appointments in the Executive Branch," (GAO/GGD-
87-96FS). The GAO reports that politicization of the senior execu-
tive service was particularly severe in the following agencies:
Department of Education: 20 percent decrease in career SES;
25 percent increase in noncareer SES.
Department of Housing and Urban Development: 14 percent
decrease in career SES, 29 percent increase in noncareer SES.
Department of Justice: 2 percent decrease in career SES ap-
pointees but 126 percent increase in its noncareer SES appoint-
ees.
Conversely, the GAO reported that at NASA, only 3 percent of
the top leadership is political; at IRS, there are only two political
appointees.
The GAO concluded, "the number of noncareer members of the
SES has grown 13 percent over the 1980-1986 period (from 582 to
658), while the number of career members has fallen over 5 percent
(from 6,379 to 6,044)."
In commenting on Senator Glenn's report, the National Commis-
sion on the Public Service, chaired by the Honorable Paul Volcker,
wrote, "It is no accident that several of the Departments men-
tioned in that study with high percentages of political appointees
have experienced declining morale, high turnover rates in both po-
litical and career cadres, and a sustained overall record of inad-
equate performance."
H.R. 2882 addresses this issue in section 4. The bill clarifies that
the percentage limitations on noncareer senior executives are to be
calculated based on the number of positions filled by career ap-
pointees, rather than on the number of positions authorized. If this
standard had been in place earlier, four agencies-Education,
HUD, State and USIA-would have been over the limit. Newly cre-
ated agencies, as well as agencies that have experienced a substan-
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tial change in function (not merely a reorganization) may be ex-
empted from this section for 2 years.
Section 4 also sets out a formula for determining the number of
positions filled, as the sum of the total number of senior executives
employed in SES positions as of December 31, March 31, June 30,
and September 30 of the preceding fiscal year, divided by four.
Using this average will avoid any sudden impact of a seasonal
fluke in the number of senior executives in Government.
Section 4 also eliminates a grandparent provision which allowed
agencies with more than 25 percent noncareer supergrades before
the passage of the Civil Service Reform Act to continue to ignore
the limit. This provision affects the Small Business Administration
and a few smaller agencies. The repeal of this provision occurs on
September 30, 1990.
The GAO report to Senator Glenn also highlighted the increase
during the Reagan Administration in the number of Schedule C ap-
pointees. These are strict political appointees, exempted from the
competitive service because of their confidential, policy-making, or
policy-determining character.
According to data supplied by the Office of Personnel Manage-
ment, there were approximately 740 Schedule C's at grades GS-13
and above in the last two years of the Carter Administration.
During the Reagan Administration, there was a steady increase in
the number of high-level Schedule C's, from 778 in 1982 to 996 in
1988.
Section 5 of H.R. 2882 limits the number of Schedule C appoint-
ees at grades GS-13 and above to 1,000. The new limitation will
become effective on January 20, 1989; therefore, no current Sched-
ule C appointee will be adversely affected. The provision caps
future growth but does not roll back the current number.
The Reagan Administration came to Washington intent on re-
ducing the bureaucracy. Now, in the last months of the Administra-
tion, many of the political appointees who railed against the civil
service are seeking the job security it can offer. According to stud-
ies by the General Accounting Office, during the period of January
1, 1987, to March 31, 1988, there were 285 noncareer appointees
who converted to career civil service jobs. Of these, 31 had formerly
been Schedule C's, and another 10 were noncareer senior execu-
tives. The Subcommittee on Civil Service has requested that the
General Accounting Office continue to monitor such appointments
through February of 1989.
Section 6 of H.R. 2882 sets up a mechanism for the Congress to
monitor the process of political appointees who convert to career
civil service jobs. Under section 6, the Office of Personnel Manage-
ment is required to submit a written report to Congress each time
an individual is appointed to a competitive service position or to a
career position within the Senior Executive Service if, during the 6-
month period immediately preceding the appointment, that individ-
ual held a noncareer appointment. The report must identify both
the noncareer and the career positions held by the individual, al-
though the individual's name will not be included in the report.
During Donald Devine's tenure as Director of the Office of Per-
sonnel Management, ad hoc quality review boards were set up as
needed to approve managerial qualifications of appointees to the
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Senior Executive Service. Some appointments were promptly ap-
proved; others languished. This distorted the intended purpose of
the Qualifications Review Boards: to provide an independent check
on the qualifications on career members of the Senior Executive
Service.
Section 7 of H.R. 2882 addresses the issue of ad hoc boards by
establishing permanent quality review boards, one for career ap-
pointments in the SES, and one for noncareer appointments. The
function of these boards is to certify the executive qualifications of
nominees. More than one-half of the members of the permanent
quality review board charged with reviewing career nominees must
themselves be career appointees. Each member will serve for a 2-
year term, and the board is authorized to act in 3-member panels.
Similar provisions apply to the board charged with reviewing non-
career appointees, except that there is no requirement that the
composition of this board include more than one-half career ap-
pointees.
Another continuing source of displeasure for career civil servants
is their perception that the political appointees at the head of the
Office of Personnel Management act without sufficient input from
career civil servants. Section 15 tries to ensure adequate input by
requiring the Director of the Office of Personnel Management to
appoint and consult with two advisory groups, one of career senior
executives, and the other of individuals holding career appoint-
ments in the civil service and recommended by employee organiza-
tions.
TRAINING FOR GOVERNMENT EXECUTIVES
Federal employees are generally hired for expertise in a disci-
pline, be it physics, public administration, or law, and then promot-
ed into managerial positions. One of the reasons for passage of the
Civil Service Reform Act of 1978 was to train career civil servants
in their second occupation as Government managers. The lack of
managerial training is sometimes even more acute for political ap-
pointees.
In testimony before the Subcommittee on Civil Service, Harry
Freeman, Executive Vice President of the American Express Com-
pany, stated that it was his impression that, "management develop-
ment programs within the Government are often more a wish than
a reality." Mr. Freeman went on to describe his company's ap-
proach to career development, which included tuition reimburse-
ment for employees pursuing MBA degrees. He acknowledged that,
upon completion of the additional training, these employees would
likely move on to an area outside of their former area of responsi-
bility. "Yet, this has never bothered me; I know the company as a
whole derives the benefit of the extra training," he said.
Such a long-term approach to investment in employee training
appears to be lacking in the Federal Government. At the request of
the Subcommittee on Civil Service, the General Accounting Office
has studied the issue of Federal employee training. GAO concluded
that, although the Government spends quite a bit of money on
training, it does not have career development programs targeted to
specific employees. Further, the GAO found that 52 percent of all
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executives and 43 percent of all managers and supervisors each
year received no training. The GAO testified that, "we don't do the
kinds of needs assessments that one should do before you send a
person to training." Interestingly enough, the GAO, itself, has spe-
cific career development programs for its career employees, super-
visors, and prospective members of the Senior Executive Service.
Two sections of H.R. 2882 will enhance the career development of
Federal employees. Section 10 strongly encourages agencies and
the Office of Personnel Management to make more use of sabbati-
cals during which senior executives can study, or work in State and
local governments or the private sector. The Committee notes that
since 1978, when agencies were first authorized to offer sabbaticals,
only 15 agencies have done so and only 21 sabbaticals have been
taken. Sabbaticals offer a unique opportunity for executives to step
out of their Federal workplace and garner expertise and exposure
which will enhance management skills.
Section 13 requires the Office of Personnel Management to devel-
op regulations under which each senior executive, supervisor, and
manager would receive a minimum number of hours of training
over prescribed periods of time.
Section 13 also requires training for noncareer appointees in the
Government's ethics laws. Noncareer appointees at grade level GS-
13 and above would be required to receive training in the oper-
ations of the Government, civil service personnel procedures, good
management practices, and the ethical standards for public serv-
ants. A noncareer appointee would have to complete this training
within 90 days after appointment. A nominee for a position requir-
ing Senate confirmation may take this training prior to final
Senate action on the nomination.
The growing gap between Federal and private sector pay makes
it difficult to recruit good people at all points on the Federal spec-
trum. In the spring of 1987, the Government was forced to offer
clerical workers in Washington, DC, San Francisco, and a few
other high-cost areas special rate increases of up to 23 percent of
salary. Low Federal pay was identified by Robert Weatherall, Di-
rector of Career Services at the Massachusetts Institute of Technol-
ogy, as perhaps the major reason that MIT engineering graduates
look to the private sector rather than the Federal Government.
Similarly, graduates of schools of public administration who par-
ticipate in the Presidential Management Intern program, the clos-
est the Government comes to fast-tracking, enter Government serv-
ice at a GS-9 salary (currently $22,907). That salary may have been
competitive when the program was started back in 1978, but it is
no longer competitive. State and local governments offer substan-
tially higher starting salaries. State and local governments also
offer positions with greater responsibility attached. A reasonable
person could conclude that the Federal Government is doing it's
best to keep top quality graduates out of Federal service.
Perhaps the greatest disparity is at the senior executive level. At
the top levels, executives have always made more money in the pri-
vate sector. When Federal pay lags only slightly behind the private
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sector, the lower pay can be viewed as a tolerable sacrifice. With
Federal pay as far behind the private sector as it is now, the once
"tolerable sacrifice" is, instead, an insult to the Federal employee.
Low pay is making it increasingly difficult to recruit and retain the
best qualified. You get what you pay for.
A report by the President's Commission on Compensation of
Career Federal Executives, issued February 26, 1988, cautioned
that recruitment of the best talent available is becoming difficult.
The Commission found the current SES compensation system, "not
conducive to recruitment and retention of the highest quality can-
didates and members of the career SES and poorly positioned to
meet the increasing challenges of the future." The Commission rec-
ommended several changes including increasing pay for senior ex-
ecutives by one to 15 percent; increasing the size of bonuses, and
using bonuses for recruitment and retention payments; eliminating
the ceiling on the total compensation an executive can receive in
one year; and permitting members of the Senior Executive Service
to cash out their portion of accumulated annual leave in excess of
120 hours.
H.R. 2882 does not attempt to deal with the pay disparity issue.
In light of the current huge Federal budget deficit, elevating Feder-
al pay to levels comparable with the private sector appears politi-
cally impossible. Yet, Congress needs to face the issue, and to con-
sider whether the taxpayers are being ill-served by the Federal
Government's inability to attract and retain the best talent. As an
alternative to raising pay, enactment of the non-pay remedies con-
tained in H.R. 2882 may make working for the Federal Govern-
ment less of a hardship.
SECTION ANALYSIS
Section 1-Short title; table of contents
Section 1 states that the title of the bill is the "Excellence in
Government Management Act of 1988," and lists the table of con-
tents of the bill.
Section 2-Statement of purpose
Section 2 states that the purpose of the bill is to increase the pro-
ductivity and effectiveness of the Federal Government by increas-
ing the ability of the Government to recruit, retain, and effectively
deploy the best employees, by ensuring that those who occupy man-
agement positions in Government are qualified to do so; by provid-
ing career civil servants with an expanded role in the management
of the civil service; and by avoiding improper political pressures on
career civil servants.
Section 3-Designation of career reserved positions
Section 3 amends the second sentence of section 3132(b)(1) of title
5, United States Code, to provide that a position shall be designated
as a career reserved position in the Senior Executive Service if the
principal responsibilities of the position relate to personnel man-
agement of career employees or if necessary to insure impartiality
or the public's confidence in the impartiality of the Government.
The committee amendment reinforces the intent of the Civil Serv-
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ice Reform Act that the merit system of personnel management
should be run by career employees and not, as has frequently been
agency practice, by political appointees.
Section 4-Calculating the maximum number of noncareer appoint-
ees allowed
Section 4(a) amends section 3134 of title 5, United States Code, to
change the formula for calculating the maximum number of nonca-
reer Senior Executive Service appointees allowed in individual
agencies and government-wide, from a percentage of the total
number of SES positions authorized to a percentage of the average
number of senior executive positions filled in the preceding fiscal
year. The average number of positions filled will be determined on
the basis of the actual number of senior executives employed in
Senior Executive Service positions on four specific dates in the
fiscal year.
The committee amendment amends subsection 3134(b) by strik-
ing the second sentence and stating that the total number of nonca-
reer appointees in all agencies may not, during any fiscal year,
exceed 10 percent of the average number of senior executives em-
ployed in Senior Executive Service positions during the preceding
fiscal year.
Section 3134(e) of title 5, United States Code is amended to pro-
vide that the total number of limited emergency appointees and
limited term appointees in all agencies may not, during any fiscal
year, exceed 5 percent of the average number of senior executives
employed in Senior Executive Services positions during the preced-
ing fiscal year.
Section 3134(d) is amended as follows: Subsection (d)(1) restates
the existing limitation on the number of noncareer senior execu-
tives within an agency and clarifies the basis for the 25 percent
limitation on noncareer senior executives as being the average
number of SES positions filled rather than the number authorized.
Subsection (d)(2)(A) restates the provision of existing law which pro-
vides that the described limitation shall not apply in the case of an
agency having fewer than four Senior Executive Service positions.
Subsection (d)(2)(B) authorizes the Office of Personnel Manage-
ment to waive, for up to 2 years, the application of the limitations
imposed by the subsection to a newly created agency or an agency
which undergoes a substantial change in function. In the case of a
newly created agency, there will be no numbers from the preceding
fiscal year to form a base. If an agency has a substantial change in
function, especially a large increase in duties and responsibilities, a
limitation based on the much smaller number of Senior Executive
Service members from the preceding fiscal year could hamper the
agency's ability to perform its additional functions.
Section 4(a)(1)(D) of the bill adds a new subsection (f) to section
3134 of title 5, United States Code, establishing the formula for de-
termining the average number of SES positions during any fiscal
year as the sum of the total number of senior executives employed
in Senior Executive Service positions as of December 31, March 31,
June 30, and September 30 of such fiscal year, divided by 4. Subsec-
tion (f)(1) applies this formula government-wide (for limitations in
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subsections (b) and (e)). Subsection (f)(2) applies this formula to indi-
vidual agencies (for limitations in subsection (d)(1)).
The amendments made by section 4(a) shall become effective on
January 20, 1989.
Section 4(b) phases out the alternative limitation on noncareer
appointments contained in present law in subsection (d)(2) of sec-
tion 3134 of title 5, United States Code, effective two years after
the date of enactment of this Act. As of March 31, 1984, this alter-
native limitation applied to only 5 agencies (Federal Home Loan
Bank Board, National Endowment for the Arts, National Endow-
ment for the Humanities, Occupational Safety and Health Review
Commission, and the Small Business Administration).
Administrative Law Judges are not to be considered as noncareer
appointees for purposes of the application of this section.
Section 5-Limitation on the number of positions which may be ex-
cepted from the competitive service because of their confiden-
tial, policy-making or policy-determining character
Section 5(a) amends section 3302 of title 5, United States Code,
by creating a new subsection (b). Subsection (b)(1) limits to 1,000
the maximum number of positions which may be expected from the
competitive service under the rules because of their confidential,
policy-making, or policy-determining character [Schedule C]. Sub-
section (b)(2) exempts positions in grades GS-12 or lower from this
limitation.
Section 5(b) makes conforming amendments to sections 3304(b)
and 3361 of title 5, United States Code.
Section 5(c) provides that the amendments in this section shall
become effective on January 20, 1989.
Section 6-Report relating to individuals receiving certain appoint-
ments after holding noncareer positions
Section 6 adds a new section 3329, entitled "Reporting require-
ment," to title 5, United States Code.
New section 3329(a) defines the terms used in this section. The
term "noncareer appointment" means an appointment to a posi-
tion excepted from the competitive service because of its confiden-
tial, policy-making, or policy-determining character [Schedule C];
an appointment as a noncareer appointee in the Senior Executive
Service; an appointment as a limited term or limited emergency
appointee in the Senior Executive Service, excluding any appointee
who, immediately before becoming such an appointee, held an ap-
pointment in the competitive service [i.e., without a break in serv-
ice]; or an appointment described in paragraph (2) or (4) of section
3324(a) [presidential appointees]. The terms "Senior Executive
Service", "career appointee," "noncareer appointee" "limited term
appointee", and "limited emergency appointee" have the meanings
set forth in section 3132(a) of title 5, United States Code.
New section 3329(b) requires the Office of Personnel Manage-
ment to submit a written report to the Committee on Post Office
and Civil Service of the House of Representatives and the Commit-
tee on Governmental Affairs of the Senate each time an individual
is appointed to a position in the competitive service or to a position
in the Senior Executive Service as a career appointee if, during the
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preceding 6-month period, that individual held a noncareer ap-
pointment in any agency (including the Executive Office of the
President.)
New section 3329(c) requires that any such report as required by
subsection 3329(b) be sent to the Congress within 30 days after the
effective date of the individual's appointment. The report must in-
clude four items: the title of the position in the competitive service
or in the Senior Executive Service to which the individual is ap-
pointed; the title of the position the individual held as a noncareer
appointee during the six-month period immediately preceding the
new appointment; a brief description of the individual's qualifica-
tions for the career position; and a brief description of the process
by which the individual was selected for the career position. How-
ever, the individual's name is not to be included in the report to
the Congress.
Section 6(b) amends the chapter analysis for chapter 33 of title 5,
United States Code, to include section 3329.
Section 7-OPM qualifications review boards relating to appoint-
ments in the Senior Executive Service
Section 7 provides for the establishment of qualifications review
boards for appointments to the Senior Executive Service.
Section 7(a) pertains to career appointees. It amends section
3393(c)(1) of title 5, United States Code, to require the Office of Per-
sonnel Management to establish one permanent qualifications
review board for career appointees. Appointments to the board are
for 2-year terms. No ad hoc boards are permitted. Its function is to
certify the executive qualifications of candidates for career appoint-
ment to the Senior Executive Service. More than one-half of the
members of the board must be career appointees. Further, appoint-
ments to the board must be on a non-partisan basis, with the sole
selection criterion being the professional knowledge of public man-
agement and of appropriate occupational fields.
A panel of board members may, if authorized by the board, take
any action which the board is authorized to take. Any such panel
must consist of at least 3 members and more than one-half of the
panel members must be career appointees.
Subsection (a)(2) makes a conforming amendment to section
3393(c)(2) of title 5, United States Code.
Section 7(b) pertains to noncareer and limited appointments. It
amends section 3394 of title 5, United States Code, by adding a new
subsection (c). New subsection (c) requires the Office of Personnel
Management to establish a permanent qualifications review board
whose function is to certify the executive qualifications of candi-
dates for initial appointment as noncareer, limited term, or limited
emergency appointees. Appointments to the board are subject to
the same terms and conditions as apply to the qualification review
board for career appointments, except that there is no require-
ments that more than one-half of the board (or a panel) be career
appointees.
Section 8-Geographic relocation benefits
Section 8 amends section 3395(a) of title 5, United States Code,
by adding new paragraphs (3) and (4). Paragraph 3 deals with relo-
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cation benefits for career appointees reassigned to Senior Executive
Service positions outside their commuting areas. Paragraph 4 pro-
vides for relocation benefits relative to a career appointee's last
move home consistent with the individual's eligibility for retire-
ment.
New paragraph (3XA) of section 3395(a) of title 5, United States
Code, requires an agency to pay a geographic relocation benefit to
any career appointee reassigned to a Senior Executive Service posi-
tion outside the career appointee's commuting area. The agency
must pay this benefit from its appropriations. Paragraph (3)(B) re-
quires that the amount of the geographic relocation benefit be no
less than 10 percent of the annual rate of basic pay payable to the
career appointee immediately before the reassignment. An addi-
tional amount of up to 10 percent of the career appointee's rate of
basic pay may be payable if the agency head considers it appropri-
ate, taking into account any higher costs of living resulting from
the reassignment, any moving expenses not reimbursable or other-
wise covered by the Government, and other similar factors. The ge-
ographic relocation benefit under this section shall be in addition
to basic pay and any other amount otherwise payable under this
title, and it shall be paid to the career appointee in a lump sum.
Paragraph (3XC) provides that an agency may pay a geographic
relocation benefit only after the individual reassigned agrees in
writing to remain in Government service for 12 months after the
reassignment, unless separated for reasons beyond the individual's
control which are acceptable to the agency. If the individual vio-
lates the agreement, the individual must repay the geographic relo-
cation benefit amount to the Government.
New paragraph (3)(D) requires payment of geographic relocation
benefits (as set forth in subparagraphs (A), (B), and (C), above) to a
career Senior Executive Service employee who is transferred to an-
other position in a different agency. The agency receiving the
transferred career employee is obligated to pay the geographic relo-
cation benefit. The head of the agency receiving the transferred
employee is responsible for deciding whether the additional 10 per-
cent payment is to be made to the transferred employee.
New paragraph (4)(A) of section 3395(a) of title 5, United States
Code, authorizes the President to prescribe regulations under
which an agency may enter into an agreement with a career ap-
pointee in the Senior Executive Service to pay for the appointee's
last move home under certain conditions. At the time of a career
appointee's reassignment to a SES position outside the career ap-
pointee's commuting area, the agency may agree to pay travel and
transportation expenses (as specified in the agreement) so that the
career appointee can relocate from the place of reassignment.
New paragraph (4XB) describes the types of expenses which can
be covered under such an agreement. These include any expense,
allowances, or other benefits (including those associated with one's
immediate family and for household goods or personal effects)
which would be available under subchapter II of chapter 57 if the
relocation involved represented a transfer from one official perma-
nent duty station to another, as referred to in section 5724(a) of
title 5, United States Code.
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Under new paragraph (4)(C), a career appointee may enter into
such an agreement only if, at the time of the reassignment, the
career appointee meets the age and service requirements for enti-
tlement to an immediate annuity, or would meet the requirements
for entitlement to an immediate annuity if the career appointee
were to be involuntarily separated for failure to accept the reas-
signment.
New paragraph (4)(D) sets out the requirements for an agree-
ment concerning these geographic relocation benefits. An agree-
ment must specify the period of time within which the relocation
must be made after the executive completes the requirements of
the reassignment; the place to which the executive will be relo-
cated; and other terms and conditions as may be appropriate.
Under subparagraph (E), benefits will only be payable for reloca-
tion within the United. States (defined to include the several States,
the District of Columbia, Puerto Rico, and territories and posses-
sions of the United States).
Subparagraph (F) provides that geographic relocation benefits
under paragraph (4) shall be in addition to any other relocation
benefit provided under paragraph (3) or any other provision of law.
Subparagraph (G) provides that a career appointee in the Senior
Executive Service may not receive benefits under this paragraph in
connection with more than 1 relocation. An executive who meets
the requirements to enter into such an agreement could take more
than one reassignment, and the relocation agreement could be re-
negotiated so long as only one relocation benefit was paid when the
executive finally left Federal service.
Subparagraph (H) requires that the geographic relocation bene-
fits under section (4) also be available to a career appointee in the
Senior Executive Service who is transferred to another position in
a different agency. The receiving agency is authorized to enter into
the agreement. However, in order to be eligible under this subsec-
tion, the career executive must meet the age and service require-
ments to be entitled to an immediate annuity. Eligibility on the
basis of separation for failure to accept a reassignment is not appli-
cable in the case of a transferred employee.
Section 9-Restriction on the authority to reassign, detail, or remove
a career appointee in the Senior Executive Service within 120
days after the appointment of certain superiors
Section 9(a) of the bill pertains to reassignments or details. It
amends section 3395(e) of title 5, United States Code, to provide
that a career appointee may not be involuntarily reassigned during
the 120-day period after the appointment of a noncareer appointee
who has the authority to reassign or detail the career appointee. A
new subparagraph (3) is added to section 3395(e) which provides
that any detail or temporary assignment (of up to 60 days) during
this "get-acquainted period does not count in determining the
start and finish of the 120-day period.
Section 9(b) makes parallel changes in law concerning removal
from the Senior Executive Service. It amends section 3592(b) of
title 5, United States Code, to provide that a career appointee may
not be involuntarily removed within 120 days after the appoint-
ment in the agency of a noncareer appointee who has the authority
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to remove the career appointee. A new subparagraph (3) is added to
section 3592(b) which provides that any detail or reassignment (of
up to 60 days) during this "get-acquainted period" does not count
in determining the start and finish of the 120-day period.
Section 10-Encouragement of Sabbaticals and Other Forms of pro-
fessional development by career appointees in the SES.
Section 10 amends section 3396(d) of title 5, United States Code,
by adding a new subsection (d)(2). New subsection (d)(2) requires the
Office of Personnel Management to encourage career appointees to
take advantage of opportunities for sabbaticals, training, or details
or other temporary assignments in other agencies, State or local
governments, or the private sector. The committee notes that since
1978, when agencies were first authorized to offer sabbaticals, only
15 agencies have done so and only 21 sabbaticals have been taken.
Section 11 Reports on the Senior Executive Service
Section 11(a) amends section 3135(a) of title 5, United States
Code, by adding a new paragraph (10). It requires the Office of Per-
sonnel Management to include in its report on the Senior Execu-
tive Service to Congress information, in the aggregate and by
agency, on the number career appointees who applied for sabbati-
cals under section 3396(c) during the preceding fiscal year and the
number of applications granted (including the name of each indi-
vidual whose application was granted and a brief description of
how the sabbatical was to be used).
Section 11(b) makes further technical amendments to section
3135 of title 5, United States Code. In the first sentence of subsec-
tion (a), it provides that OPM will no longer send report during
each "odd-numbered" year and instead send the report each year.
Subsection (b) is deleted.
Section 11(c) amends the heading for section 3135 and the chap-
ter analysis for chapter 31 of title 5, United States Code, to change
the section title for section 3135 to read, "Annual report."
Section 12-Government service fellowship program
Section 12 creates a new chapter 37 in subchapter B of part III of
title 5, United States Code. Unless otherwise noted, section refer-
ences are to sections of chapter 37 as added by section 12 of the
bill.
Section 3701 defines the terms used in this chapter. "Agency"
means an Executive agency and a military department. "Institu-
tion of higher education" means an educational institution in any
State which admits as regular students only individuals who have
been graduated from high school or who have received the recog-
nized equivalent of a graduation certificate; is legally authorized
within such State to provide a program of education beyond high
school; provides an educational program for which it awards a bac-
calaureate degree; and is accredited by a nationally recognized
agency or association. "State" means any State of the United
States, the District of Columbia, the Commonwealth of Puerto Rico,
and any territory or possession of the United States.
Section 3702 authorizes the head of an agency to establish a pro-
gram to offer fellowships to individuals pursuing post-secondary de-
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grees in fields of study as to which the agency requires, or antici-
pates that it will require, employees with expertise. The agency
head's decision to establish a fellowship program is discretionary.
The Office of Personnel management is directed to prescribe guide-
lines for the operation of a fellowship program. Each agency will
develop regulations consistent with the OPM guidelines.
Section 3703 sets out the general requirements for fellowship
programs.
Subsection (a) requires an agency to select fellowship recipients
on the basis of individual accomplishments and demonstrated abili-
ties or aptitudes. An agency must abide by the merit principles of
paragraphs (1) and (2) of section 2301(b) of title 5, United States
Code concerning recruitment and applicants for employment, re-
spectively. An agency should also give modest preference to women
and members of racial and ethnic minority groups if they are un-
derrepresented at that agency, and to children of career Federal
employees (taking into account the restrictions on employment of
relatives in section 3110 of title 5, United States Code).
Under subsection (b), a fellowship may be awarded only while
the student is pursuing a baccalaureate or advanced degree at an
institution of higher learning qualified under this chapter. In order
to be qualified under this chapter, an institution of higher educa-
tion must have established a system under which fellowship recipi-
ents would receive academic and career counseling, particularly
with respect to any subjects or areas which the agency head may
identify.
In order to provide an agency with the flexibility to meet its re-
cruitment needs, subsection (c) authorizes an agency to offer fellow-
ships covering the full period of a student's undergraduate educa-
tion (not to exceed 4 years), and fellowships covering the last 2
years of a student's undergraduate education (or an equivalent
time period if the student is enrolled in an accelerated program). If
the agency head considers it necessary and appropriate, fellowships
may also be offered to students pursuing an advanced degree,
either as a continuation of an undergraduate fellowship or begin-
ning for the first time at the graduate school level. The committee
intends that Government service fellowships be used primarily as a
device to recruit talented undergraduate students.
Section 3704 sets out the terms and conditions for individual par-
ticipation. In summary, the student will receive benefits for tuition,
books, and a stipend during the academic year. During longer
school breaks (summers or January interim term, for example), the
student will be placed in a position at the sponsoring agency. Upon
graduation, the fellowship recipient will receive -a permanent ap-
pointment at the sponsoring agency, and must complete 1 year of
Government service for each year the student participated in the
fellowship program.
Under section 3704(a)(1), a fellowship recipient is entitled to re-
ceive, by advance payment or reimbursement, the full cost of tui-
tion and the full cost of books and other appropriate study materi-
als.
Subsection (a)(2)(A) provides that during the academic term, the
fellowship recipient is entitled to receive a stipend (on a biweekly
basis) equivalent to the rate of basic pay payable for grade GS-2.
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Subsection (aX2)(B) provides that during longer school breaks when
the student is placed in a position with the sponsoring agency, the
student will receive the salary of the position. If the position is not
under the General Schedule, the student should receive the pay
normally payable for the position to which he or she is appointed.
Subsection (a)(3) clarifies that a fellowship recipient shall not, for
any purpose, be considered a Federal employee except during the
period that the student holds a temporary appointment during
school breaks. Of course, when the student receives a permanent
appointment following graduation, he or she will be a Federal em-
ployee for all purposes.
Section 3704(b) describes the fellowship recipient's obligation to
work for the sponsoring agency, both during the academic period of
the fellowship and upon graduation.
An individual applying for a fellowship must agree in writing to
satisfy such work requirements as the agency head may by regula-
tion prescribe for the period before the student graduates (para-
graph (1)(A)). The applicant must also agree in writing to work,
upon graduation or receipt of the advanced degree, one year for
each year of the fellowship (paragraph (1)(B)). The fellowship period
includes the time during which the student received the GS-2 sti-
pend and the time the student was employed as a temporary ap-
pointee. Thus, the fellowship recipient will work one calendar year
for each calendar year the student received the stipend and worked
during school breaks.
Subsection (b)(2) describes the student's work obligations prior to
graduating.
Subparagraph (A) of subsection (b)(2) requires an agency head to
establish work requirements in such a way that they may be satis-
fied by the student working between consecutive academic terms
(such as a long January interim period) or during the summer
break between consecutive academic years. An agency should make
full use of the student's talents. Subparagraph (B) of subsection
(b)(2) requires that the position to which the student is appointed
and the task assigned be consistent with the individual's back-
ground and experience, complement the individual education, and
contribute to the individuals preparation for post-fellowship Gov-
ernment service.
Subparagraph (C) of subsection (b)(2) specifies that, during work
periods prior to graduating, the individual will receive a temporary
appointment not to exceed 120 days. Like all temporary appointees,
the fellowship recipient will be protected under the Federal Tort
Claims Act, Worker's Compensation; will receive sick and annual
leave and holidays; and will pay into the Social Security system
but not the Federal employees Retirement System. No life or
health insurance would be available under the temporary appoint-
ment.
Paragraph (2XC) further directs an agency head to prescribe reg-
ulations (in consultation with the Director of the Office of Person-
nel Management) under which any application or other appoint-
ment-related requirements may be waived. The regulations should
also permit the agency head to waive the work requirement if, for
example, the student pursues an accelerated program or attends
school during the breaks.
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Subsection (b)(3) describes the fellowship recipient's work obliga-
tion upon graduation.
Subparagraph (A) of subsection (b)(3) requires that the individual
be appointed to a position that, to the extent practicable, makes
use of the individual's education and training.
Subparagraph (B) requires that the agency head develop regula-
tions (in consultation with the Director of the Office of Personnel
Management) concerning a post-fellowship appointment. The regu-
lations should include provisions under which an individual's pref-
erences as to geographic location are taken into account, any appli-
cation or other appointment-related requirements may be waived,
and appropriate minimum levels of pay and responsibility for the
post-fellowship appointment are fixed.
Subparagraph (C) requires the agency to offer continuing educa-
tion and career development, such as seminars, conferences, and
specialized training, during the post-fellowship appointment.
Subparagraph (D) provides that, while performing post-fellowship
service, the individual shall be considered an employee of the em-
ploying agency for all purposes, including the determination of
basic pay and eligibility for benefits.
The individual must receive a permanent appointment to a posi-
tion in the competitive service or to a Schedule A or Schedule B
position excepted from the competitive service.
Section 3704(c) pertains to termination of the fellowship.
Paragraph (1) of subsection (c) prescribes matters relative to ter-
mination of the fellowship which must be included in a fellowship
agreement.
Under paragraph (1)(A), an agency may terminate the individ-
ual's fellowship or post-fellowship employment at any time, based
on misconduct or any other reason which may be specified in the
agreement between the individual and the agency. Under para-
graph (1)(B), the student must agree to reimburse the agency for
any amounts which were paid for tuition, books, and other appro-
priate study materials if the student is unable to complete the edu-
cational requirements of the program or otherwise satisfy obliga-
tions under the agreement. The student need not reimburse the
agency for amounts paid as a stipend or for pregraduation or post-
fellowship employment.
Paragraph (2) of subsection (c) provides that the obligation to re-
imburse the United States shall be treated as a debt owing the
United States. However, under subparagraph (A)(ii), an agency
head may waive the indebtedness if the agency head determines
that equity or the interests of the United States so require. Waiver
would be appropriate, for example, if the student were forced to
drop out of the program because of illness or family emergency.
Subparagraph (B) provides that if the agency terminates the fel-
lowship, the fellowship recipient is relieved of all money and serv-
ice obligations.
Section 3705 specifies the types of reports required on the fellow-
ship program. Under subsection (a)(1), the head of each agency
which establishes a fellowship program must prepare an annual
report containing the following information: a description of the
agency's program, the number of individuals participating in the
program, the criteria used to select fellowship recipients, an assess-
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ment of the program's success in meeting the agency's recruitment
needs, and any other information which the agency head considers
appropriate. Each agency is required to submit this report to the
Office of Personnel Management.
Under subsection (aX2), OPM is required to establish guidelines
for the preparation of these reports. OPM is also responsible for
transmitting all agency reports received by the Office each year,
without change, to Congress. OPM is free to also submit written
comments.
Subsection (b) requires the General Accounting Office to annual-
ly review each fellowship program to ensure that it complies with
the requirements of this chapter, and to report its findings to Con-
gress.
Section 12(b) of the bill makes a conforming amendment to the
analysis for part III of title 5, United States Code.
Section 13-Training requirements for supervisors, managers, and
executives
Section 13(a) concerns training programs for senior executives,
supervisors, and management officials. It amends section 4103 of
title 5, United States Code, by adding a new subsection (c).
New section 4103(cXl) defines the terms used by cross-reference.
It defines "senior executive" as having the meaning given such
term under section 3132(a)(3); defines "supervisor" as under section
7103(a)(10); and defines "management official" as under 7103(a)(11).
Subsection (c)(2) requires the Office of Personnel Management to
include in regulations (under section 4118 of title 5, United States
Code) provisions under which each senior executive, supervisor,
and management official would be required to participate in a min-
imum number of hours of executive, supervisory, or management
training each year. The regulations must specify, by category of
employee, the minimum amount of training required. Under sub-
section (c)(3), the regulations must permit an agency head to ex-
clude an individual from training if the individuals anticipated
length of service does not justify extensive training. The regula-
tions may allow participation in the Executive Exchange Program
of the Presidents Commission on Executive Exchange to count
toward satisfying training requirements.
Section 13(b) of the bill concerns training for other officials. It
amends chapter 41 of title 5, United States Code, by creating a new
section 4120, entitled "Training for noncareer appointees."
New section 4120(a) defines the term "noncareer appointee", for
purposes of this section, as an individual appointed by the Presi-
dent to an office or position in the executive branch (whether or
not Senate confirmation is required); an individual in a Senior Ex-
ecutive Service position who is not a career appointee, a limited
term appointee, or a limited emergency appointee; an individual
appointed to a Schedule C position which is in grade GS-13 of the
General Schedule or higher; and any other individual holding a
similar appointment, as determined under regulations which the
President must prescribe.
Section 4120(b) requires the Director of the Office of Personnel
Management to establish a training program for noncareer ap-
pointees, which will cover the operations of the Government, civil
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service personnel procedures, good public management practices,
and ethical standards for public servants.
Section 4120(c) provides that, under regulations which the Presi-
dent may prescribe, each noncareer appointee would be required to
complete the training program within 90 days of the date of that
individual's appointment. Exceptions can be made for extraordi-
nary circumstances which prevent completion of training within
the prescribed period or when the noncareer appointee has recent-
ly completed a period of Government service or a similar period of
training.
Section 4120(d) provides that, under regulations which the Presi-
dent may prescribe, an individual who has been nominated by the
President for a position requiring Senate confirmation may be al-
lowed to participate in the training program prior to final Senate
action on the nomination.
Section 13(b)(2) of the bill amends the chapter analysis for chap-
ter 41 of title 5, United States Code, to add section 4120.
Section 14-Adjustment of Presidential rank award amounts
Section 14(a) amends section 4507(e) of title 5, United States
Code, by adding a new subsection (e)(3). Under subsection (e)(3),
whenever General Schedule pay rates are adjusted under section
5305 of title 5, United States Code, each dollar amount specified for
the award of ranks for Meritorious Executive under subsection
(e)(1) or Distinguished Executive under subsection (e)(2) shall be ad-
justed by an amount, rounded up to the nearest multiple of $100,
equal to the percentage increase in the General Schedule pay rates.
Each pay adjustment taking effect after September 30, 1987, shall
be taken into account for purposes of computing the adjustment in-
crease for rank awards.
Section 14(b) provides that the amendment made by section (a)
does not apply to any award paid before the date of enactment of
this Act.
Section 15-Requirement that the Director of OPM periodically con-
sult with certain advisory groups consisting of Federal employ-
ees
Section 15 amends section 1103 of title 5, United States Code, by
adding a new subsection (c). Subsection (c)(1) requires the Director
of the Office of Personnel Management to establish and periodical-
ly consult with a panel of Senior Executive Service career (or
former career) appointees (defined as in 3132(a)(4) of title 5, United
States Code), in order to assist the Director in discharging obliga-
tions relating to the management of the Senior Executive Service.
The Director will appoint the panel from individuals who are rec-
ognized for their knowledge, interest, and experience relating to ex-
ecutive management, or for the excellence of their performance as
members of the Senior Executive Service. This panel is responsible
for advising the OPM Director on actions affecting the Senior Exec-
utive Service.
Subsection (c)(2) requires the Director of the Office of Personnel
Management to establish and periodically consult with a panel of
career employees in order to assist the Director in discharging obli-
gations relating to the management of the civil service. The Direc-
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tor will appoint the panel from among individuals recommended by
labor organizations or by other organizations representing the in-
terests of employees generally or specific groups of employees. An
individual on leave without pay to serve as a full-time officer or
employee of such an organization is eligible for such an appoint-
ment. This panel is responsible for advising the OPM Director on
actions affecting the civil service.
Any individual appointed to either the SES or civil service panel
is not entitled to any additional pay, allowances, or benefits by
reason of appointment to such panel.
Section 16-Limitation on payments
Section 16 states that any authority to make payments under
this act shall be effective only to the extent or in such amounts as
are provided for in advance by appropriation Acts. Funds for the
geographic relocation benefit and the Government service fellow-
ship program can be spent from monies available for salaries and
expenses, and need not be requested as separate line items.
COST
A Congressional Budget Office cost estimate was requested by
the Committee but was not received in time for inclusion in this
report.
OVERSIGHT
Under the rules of the Committee on Post Office and Civil Serv-
ice, the Subcommittee on Civil Service is vested with legislative
and oversight jurisdiction over the subject matter of this legisla-
tion. As a result of the hearings, the subcommittee concluded that
there is ample need and justification for enacting this legislation.
The subcommittee received no report of oversight findings or rec-
ommendations from the Committee on Government Operations
pursuant to clause 4(c)(2) of House Rule X.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(l)(4) of House Rule XI, the committee has
concluded that enactment of H.R. 2882 will have no inflationary
impact on the national economy.
ADMINISTRATION VIEWS
Set forth below are the views of the Office of Personnel Manage-
ment on this legislation.
U.S. OFFICE OF PERSONNEL MANAGEMENT
Washington, DC, June 7, 1988.
Hon. WILLIAM D. FORD,
Chairman, Committee on Post Office and Civil Service,
House of Representatives, Washington, DC.
DEAR MR. CHAIRMAN: We are writing to advise you of the strong
objections of the Office of Personnel Management to H.R. 2882, en-
titled the "Excellence in Government Management Act of 1988."
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Our comments address the substitute version of the bill that has
been reported to the full committee.
H.R. 2882 is a compilation of miscellaneous provisions which are
largely unneeded and would, in many cases, interfere with the re-
sponsiveness and efficiency of Government management. Various
provisions of the bill would restrict the number of noncareer ap-
pointees in the Senior Executive Service and the types of positions
to which they could be assigned; limit the number of Schedule C
positions in the Government; mandate geographic relocation bo-
nuses to certain members of the Senior Executive Service; impose
unneeded and inflexible training requirements; and establish an
unnecessary and potentially very costly Government service fellow-
ship program. While some of the provisions of the bill are innocu-
ous-such as placing in statute certain reporting requirements that
are already being met-or even helpful-such as providing for the
periodic adjustment of Presidential rank award amounts-the bill
taken as a whole would significantly harm our efforts to make the
Government more responsive, more flexible, and less burdened by
unneeded paperwork.
Accordingly, we strongly urge the Committee not to give H.R.
2882 favorable consideration.
The Office of Management and Budget advises that, -from the
standpoint of the Administration's program, there is no objection
to the submission of this report.
Sincerely,
CONSTANCE HORNER, Director.
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italic,
existing law in which no change is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
PART II-CIVIL SERVICE FUNCTIONS AND
RESPONSIBILITIES
CHAPTER 11-OFFICE OF PERSONNEL MANAGEMENT
? 1103. Functions of the Director
(a) * * *
* * * * * * *
(c)(1) In order to assist the Director in discharging obligations re-
lating to the management of the Senior Executive Service, the Direc-
tor shall establish and periodically consult with a panel of a career
appointees (as defined by section 3132(a)(4)) who-
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(A) shall be appointed by the Director from among individ-
uals generally recognized for their knowledge, interest, and ex-
perience with respect to matters relating to executive manage-
ment, or for the excellence of their performance as senior execu-
tives (as defined by section 3132(a)(3)); and
(B) shall be responsible for providing advice to the Director
with respect to actions affecting the Senior Executive Service.
Appointments under this paragraph may also be made from among
former career appointees.
(2) In order to assist the Director in discharging obligations relat-
ing to the management of the civil service, the Director shall estab-
lish and periodically consult with a panel of employees holding
career appointments in the civil service who-
(A) shall be appointed by the Director from among individ-
uals (including individuals on leave without pay to serve as a
full-time officer or employee of an organization composed pri-
marily of employees) recommended by labor organizations or
other organizations representing the interests of employees gen-
erally or specific groups of employees; and
(B) shall be responsible for providing advice to the Director
with respect to actions affecting the civil service.
An individual appointed to a panel under paragraph (1) or (2) shall
not be entitled to any additional pay, allowances, or benefits by
reason of appointment to such panel.
PART III-EMPLOYEES
Subpart A-General Provisions
Chap. Sec.
21. Definitions ................................................................................................................ 2101
23. Merit system principles ......................................................................................... 2301
29. Commissions, Oaths, Records and Reports ......................................................... 2901
Subpart B-Employment and Retention
31. Authority for Employment .................................................................................... 3101
33. Examination, Selection, and Placement ............................................................. 3301
34. Part-time career employment opportunities ...................................................... 3401
35. Retention Preference, Restoration, and Reemployment .................................. 3501
37. Government Service Fellowship Programs .......................................................... 3701
Subpart B-Employment and Retention
CHAPTER 31-AUTHORITY FOR EMPLOYMENT
Subchapter II-The Senior Executive Service
3131. The Senior Executive Service.
3132. Definitions and exclusions.
3133. Authorization of positions; authority for appointments.
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3134. Limitations on noncareer and limited appointments.
3135. [Biennial] Annual report.
3136. Regulations.
Subchapter 11-The Senior Executive Service
? 3132. Definitions and exclusions.
(a) * * *
(b)(1) For the purpose of paragraph (8) of subsection (a) of this
section, the Office shall prescribe the criteria and regulations gov-
erning the designation of career reserved positions. [The criteria
and regulations shall provide that a position shall be designated as
a career reserved position only if the filling of the position by a
career appointee is necessary to ensure impartiality, or the public's
confidence in the impartiality, of the Government.] The criteria
and regulations shall provide that a position shall be designated as
a career reserved position if the filling of the position by a career
appointee is necessary to insure impartiality, or the public's confi-
dence in the impartiality, of the Government, if the principal re-
sponsibilities of the position relate to managing career employees, or
if otherwise necessary to carry out the purposes of this subchapter.
The head of each agency shall be responsible for designating career
reserved positions in such agency in accordance with such criteria
and regulations.
? 3134. Limitations on noncareer and limited appointments
(a) * * *
(b) The number of noncareer appointees in each agency shall be
determined annually by the Office on the basis of demonstrated
need of the agency. [The total number of noncareer appointees in
all agencies may not exceed 10 percent of the total number of
Senior Executive Service positions in all agencies.] The total
number of noncareer appointees in all agencies may not, during any
fiscal year, exceed 10 percent of the average number of senior execu-
tives employed in Senior Executive Service positions during the pre-
ceding fiscal year, as determined under subsection (f)(1).
* * * * * * *
[(d) The number of Senior Executive Service positions in any
agency which are filled by noncareer appointees may not at any
time exceed the greater of-
[(1) 25 percent of the total number of Senior Executive Serv-
ice positions in the agency; or
[(2) the number of positions in the agency which were filled
on the date of the enactment of the Civil Service Reform Act of
1978 by-
[(A) noncareer executive assignments under subpart F
of part 305 of title 5, Code of Federal Regulations, as in
effect on such date, or
[(B) appointments to level IV or V of the Executive
Schedule which were not required on such date to be made
by and with the advice and consent of the Senate.
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[This subsection shall not apply in the case of any agency having
fewer than 4 Senior Executive Service positions.]
(d)(1) The number of Senior Executive Service positions in any
agency which are filled by noncareer appointees may not at any time
exceed 25 percent of the average number of senior executives em-
ployed in Senior Executive Service positions in the agency during the
preceding fiscal year, as determined under subsection (X2).
(2)(A) This subsection shall not apply in the case of any agency
having fewer than 4 Senior Executive Service positions.
(B) The Office may, in the case of a newly created agency or an
agency which undergoes a substantial change in function, waive the
application of this subsection for not to exceed 2 years. The Office
shall report any waiver under this subparagraph to the Congress in
writing.
[(e) The total number of limited emergency appointees and lim-
ited term appointees in all agencies may not exceed 5 percent of
the total number of senior Executive Service positions in all agen-
cies.]
(e) The total number of limited emergency appointees and limited
term appointees in all agencies may not, during any fiscal year,
exceed 5 percent of the average number of senior executives employed
in Senior Executive Service positions during the preceding fiscal
year, as determined under subsection ()(1).
()(1) For purposes of subsections (b) and (e), the average number of
senior executives employed in Senior Executive Service positions
during a fiscal year shall be equal to-
(A) the sum of the total number of senior executives employed
in Senior Executive Service positions as of December 31, March
31, June 30, and September 30 of such fiscal year, respectively.
(B) divided by 4.
(2) For purposes of subsection (d)(1), the average number of senior
executives employed in Senior Executive Service positions in an
agency during a fiscal year shall be equal to-
(A) the sum of the total number of senior executives employed
in Senior Executive Service positions in such agency as of De-
cember 31, March 31, June 30, and September 30 of such fiscal
year, respectively;
(B) divided by 4.
? 3135. [Biennial] Annual report
[(a)] The Office of Personnel Management shall submit to each
House of the Congress, at the time the budget is submitted by the
President to the Congress [during each odd-numbered] each cal-
endar year, a report on the Senior Executive Service. The report
shall include-
* * * * *
(9) the number of career appointees who have been placed in po-
sitions outside the Senior Executive Service under section 3594 of
this title as a result of a removal under section 3595 of this title;
[and]
(10) in the aggregate and iy-ageney, ,the number of career :appoint-
ees who applied for sabbaticals under section 3396(c) during the pre
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ceding fiscal year and the number of applications granted (includ-
ing the name of each individual whose application was granted and
a brief description of how the sabbatical was to be used); and
[(10)] (11) such other information regarding the Senior Execu-
tive Service as the Office considers appropriate.
[(b) The Office of Personnel Management shall submit to each
House of the Congress, at the time the budget is submitted to the
Congress during each even-numbered calendar year, an interim
report showing changes in matters required to be reported under
subsection (a) of this section- 3
CHAPTER 33-EXAMINATION, SELECTION, AND
PLACEMENT
Subchapter I-Examination, Selection, and Appointment
Sec. 3301. Civil service; generally.
3329. Reporting requirement.
? 3302. Competitive service; rules
(a) The President may prescribe rules governing the competitive
service. The rules shall provide, as nearly as conditions of good ad-
ministration warrant, for-
(1) necessary exceptions of positions from the competitive
service; and
(2) necessary exceptions from the provisions of sections 2951,
3304(a), 3321, 7202, 7203, 7321, and 7322 of this title.
Each officer and individual employed in an agency to which the
rules apply shall aid in carrying out the rules.
(b)(1) Subject to paragraph (2), the maximum number of positions
which may be excepted from the competitive service under the rules
because of their confidential, policy-making, or policy-determining
character may not exceed 1,000.
(2) The limitation under this subsection shall not apply with re-
spect to any position which is in grade GS-12 of the General Sched-
ule or lower.
? 3304. Competitive service; examinations
(a) * * *
(b) An individual may be appointed in the competitive service
only if he has passed an examination or is specifically excepted
from examination under section 3302(a) of this title. This subsec-
tion does not take from the President any authority conferred by
section 3301 of this title that is consistent with the provisions of
this title governing the competitive service.
?3329. Reporting requirement
(a) For the purpose of this section-
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(1) the term "noncareer appointment" means an appoint-
ment-
(A) to a position excepted from the competitive service be-
cause of its confidential, policy-making, or policy-determin-
ing character;
(B) as a noncareer appointee in the Senior Executive Serv-
ice;
(C) as a limited term or limited emergency appointee in
the Senior Executive Service, excluding any appointee who,
immediately before becoming such an appointee, held an
appointment in the competitive service; or
(D) described in paragraph (2) or (4) of section 3324(a);
and
(2) the terms "Senior Executive Service position"; "career ap-
pointee"; "noncareer appointee"; "limited term appointee'; and
"limited emergency appointee" have the meanings set forth in
section 3132(a).
(b) The Office of Personnel Management shall submit a written
report to the Committee on Post Office and Civil Service of the
House of Representatives and the Committee on Governmental Af-
fairs of the Senate with respect to any individual who is appointed
to a position within the competitive service or to a position within
the Senior Executive Service as a career appointee, if, at any time
during the 6-month period ending on the effective date of the ap-
pointment, such individual served under a noncareer appointment
in any agency (including the Executive Office of the President).
(c) A report under subsection (b)-
(1) shall be submitted no later than 30 days after the effective
date of the individual's appointment; and
(2) shall include-
(A) the title of the position within the competitive service
or within the Senior Executive Service to which the indi-
vidual is being or was most recently appointed or assigned;
(B) the title of any position held by such individual
under a noncareer appointment during the 6-month period
ending on the effective date of the appointment referred to
in subparagraph (A);
(C) a brief description of the individual's qualifications
with respect to the position referred to in subparagraph (A);
and
(D) a brief description of the process by which the posi-
tion under subparagraph (A) was filled.
However, the individual's name may not be used in any such report.
Subchapter V-Promotion
? 3361. Promotion; competitive service; examination
An individual may be promoted in the competitive service only if
he has passed an examination or is specifically excepted from ex-
amination under section 3302 (a) of this title. This section does not
take from the President any authority conferred by section 3301 of
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this title that is consistent with the provisions of this title govern-
ing the competitive service.
Subchapter VIII-Appointment, Reassignment, Transfer, and
Development in the Senior Executive Service
? 3393. Career appointments
* *
(a)
* * * * * * *
[(cxl) The Office shall establish one or more qualifications
review boards, as appropriate. It is the function of the boards to
certify the executive qualifications of candidates for initial appoint-
ment as career appointees in accordance with regulations pre-
scribed by the Office. Of the members of each board more than one-
half shall be appointed from among career appointees. Appoint-
ments to such boards shall be made on a non-partisan basis, the
sole selection criterion being the professional knowledge of public
management and knowledge of the appropriate occupational fields
of the intended appointee.]
(c)(1) The Office shall establish a qualifications review board. It is
the function of the board to certify the executive qualifications of
candidates for initial appointment as career appointees in accord-
ance with regulations precribed by the Office. Of the members of the
board, more than one-half shall be appointed from among career ap-
pointees. Each appointment to the board shall be for a term of 2
years and shall be made on a non-partisan basis, the sole selection
criterion being the professional knowledge of public management
and knowledge of appropriate occupational fields. Any panel of
board members may, if so authorized by the board, take any action
which the board is authorized to take, except that any such panel
shall consist of at least 3 members and more than one-half of the
panel members shall be career appointees.
(2) The Office shall, in consultation with the [various qualifica-
tion review boards] qualifications review board, prescribe criteria
for establishing executive qualifications for appointment of career
appointees. The criteria shall provide for-
? 3394. Noncareer and limited appointments
(a) * * *
* * * * * * *
(c) The Office shall establish a qualifications review board which
shall certify the executive qualifications of candidates for initial ap-
pointment as noncareer, limited term, or limited emergency appoint-
ees, in accordance with regulations prescribed by the Office. Ap-
pointments to the board shall be made subject to the same terms
and conditions as apply with respect to the qualifications review
board under section 3393(c), but without regard to the requirement
that more than one-half of all board members (or members of a duly
constituted panel) be career appointees.
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? 3395. Reassignment and transfer within the Senior Executive
Service
(aXi) *
(3)(A) Subject to subparagraph (C), an agency shall pay from its
appropriations a geographic relocation benefit to any career appoint-
ee reassigned to a Senior Executive Service position outside the
career appointee's commuting area.
(B) An amount under this paragraph-
(s) shall be equal to-
(I) 10 percent of the annual rate of basic pay payable to
the career appointee immediately before the reassignment;
and
(II) any additional amount, not to exceed the amount
under subclause (I), which the agency head considers appro-
priate, taking into account any higher costs of living result-
ing from the reassignment, any moving expenses not reim-
bursable or otherwise covered by the Government, and other
similar factors;
(ii) shall be in addition to basic pay, and any other amount
otherwise payable under this title;
(iii) shall be paid in a lump sum.
(C) An agency may pay a geographic relocation benefit under this
paragraph only after the individual reassigned agrees in writing to
remain in Government service for 12 months after the reassignment,
unless separated for reasons beyond such individual's control which
are acceptable to the agency concerned. If the individual violates the
agreement, the amount paid under this paragraph shall be recover-
able from the individual as a debt due the United States.
(D) Benefits afforded under this paragraph in the case of a career
appointee who is reassigned to another position within the same
agency shall also be afforded in the case of a career appointee who
is transferred to another position in a different agency. For purposes
of administering this paragraph with respect to a transferred career
appointee, any reference in the preceding subparagraphs to an
agency shall be considered to be a reference to the receiving agency,
and any reference to an agency head shall be considered to be a ref-
erence to the head of the receiving agency.
(4)(A) Under such regulations as the President may prescribe, an
agency may, at the time of a career appointee's reassignment to a
Senior Executive Service position outside the career appointee 's com-
muting area, enter into an agreement under which the employing
agency agrees that, if the career appointee accepts the reassignment
and satisfies the career appointee's obligations under the agreement
with respect to the reassignment, the agency will pay travel and
transportation expenses (as specified in the agreement) incident to
the career appointee's relocating from the place of reassignment.
(B) The types of expenses allowable under this paragraph shall in-
clude any expenses, allowances, or other benefits (including those as-
sociated with one's immediate family and for household goods or
personal effects) which would be available under subchapter II of
chapter 57 if the relocation involved represented a transfer, in the
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interest of the Government, from one official station to another for
permanent duty, as referred to in section 5724(a).
(C) An agreement under this paragraph may not be entered into
unless-
(i) at the time of the reassignment, the career appointee meets
the age and service requirements for entitlement to an immedi-
ate annuity under subchapter III of chapter 83, or under chap-
ter 84; or
(ii) the career appointee would meet the requirements for enti-
tlement to an immediate annuity if such career appointee were
to be involuntarily separated for failure to accept the reassign-
ment.
(D) An agreement under this paragraph shall include-
(i) provisions relating to the period of time within which the
relocation must be made after completing the requirements asso-
ciated with the reassignment;
(ii) provisions relating to the place to which the relocation
must or may be made in order to qualify for the benefits in-
volved; and
(iii) such other terms or conditions as may be appropriate.
(E)(i) Benefits under this paragraph shall not be available in con-
nection with any relocation to any place outside the United States.
(ii) For purposes of this subparagraph, "United States"; means the
several States, the District of Columbia, the Commonwealth of
Puerto Rico, and any territory or possession of the United States.
(F) Benefits under this paragraph shall be in addition to any ben-
efit provided under paragraph (3) or any other provision of law.
(G) A career appointee may not receive benefits under this para-
graph in connection with more than 1 relocation.
(H) Under the regulations, the benefits allowable under this para-
graph in the case of a career appointee who is reassigned to another
position within the same agency shall also be available in the case
of a career appointee who is transferred to another position in a dif-
ferent agency, except that any determination of eligibility shall be
made without regard to subparagraph (C)(ii). Any authority under
this subparagraph may be exercised only by the receiving agency.
(e)(1) Except as provided in paragraph (2) of this subsection, a
career appointee in an agency may not be involuntarily reas-
signed-
(A) within 120 days after an appointment of the head of the
agency; or
[(B) within 120 days after the appointment in the agency of
the career appointee's most immediate supervisor who-
[(i) is a noncareer appointee; and
[(ii) has the authority to reassign the career appoint-
ee.]
(B) within 120 days after the appointment in the agency of a
noncareer appointee who has the authority to reassign or detail
the career appointee.
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(3) For the purpose of applying paragraph (1) to any career ap-
pointee, any days (not to exceed a total of 60) during which such
career appointee is serving pursuant to a detail or other temporary
assignment apart from such appointee's regular position shall not
be counted in determining the number of days that have elapsed
since an appointment referred to in subparagraph (A) or (B) of such
paragraph.
? 3396. Development for and within the Senior Executive Service
(a) * * *
* * * * s * s
(d) (1) The Office shall encourage and assist individuals to im-
prove their skills and increase their contribution by service in a va-
riety of agencies as well as by accepting temporary placements in
State or local governments or in the private sector.
(2) In order to promote the professional development of career ap-
pointees and to assist them in achieving their maximum levels of
proficiency, the Office shall, in a manner consistent with the needs
of the Government, provide appropriate informational services and
otherwise encourage career appointees to take advantage of any op-
portunities relating to-
(A) sabbaticals;
(B) training; or
(C) details or other temporary assignments in other agencies,
State or local government, or the private sector.
? 3592. Removal from the Senior Executive Service
(a) * * *
(bXl) Except as provided in paragraph (2) of this subsection, a
career appointee in an agency may not be involuntarily removed-
(A) within 120 days after an appointment of the head of the
agency; or
[(B) within 120 days after the appointment in the agency of
the career appointee's most immediate supervisor who-
E(i) is a noncareer appointee; and
[(ii) has the authority to remove the career appointee.]
(B) within 120 days after the appointment in the agency of a
noncareer appointee who has the authority to remove the career
appointee.
(3) For the purpose of applying paragraph (1) to any career ap-
pointee, any days (not to exceed a total of 60) during which such
career appointee is serving pursuant to a detail or other temporary
assignment apart from such appointee's regular position shall not
be counted in determining the number of days that have elapsed
since an appointment referred to in subparagraph (A) or (B) of such
paragraph.
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CHAPTER 37-GOVERNMENT SERVICE FELLOWSHIP
PROGRAMS
See.
3701. Definitions.
3702. Establishment.
3703. General requirements for fellowship programs.
3704. Terms and conditions for individual participation.
3705. Reports.
3701. Definitions
For the purpose of this chapter-
(1) the term "agency" means an Executive agency and a mili-
tary department;
(2) the term "institution of higher education" means an edu-
cational institution in any State which-
(A) admits as regular students only individuals having a
certificate of graduation from a high school, or the recog-
nized equivalent of such a certificate;
(B) is legally authorized within such State to provide a
program of education beyond high school;
(C) provides an educational program for which it awards
a baccalaureate degree; and
(D) is accredited by a nationally recognized accrediting
agency or association; and
(3) the term "State" means a State of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, and
any territory or possession of the United States.
? 3702. Establishment
The head of an agency may, by regulations consistent with guide-
lines which the Office of Personnel Management shall prescribe, es-
tablish a program under which fellowships may be awarded to indi-
viduals pursuing post-secondary degrees in fields of study as to
which the agency requires, or anticipates that it will require, em-
ployees with proficiency or expertise.
? 3703. General requirements for fellowship programs
(a)(1) Under any agency program established under this chapter,
the primary bases for the selection of fellowship recipients shall be
individual accomplishments and demonstrated abilities or apti-
tudes.
(2) In addition to the criteria under paragraph (1), an agency may
also, consistent with the merit system principles set forth in para-
graphs (1) and (2) of section 2301(b)-
(A) take into consideration the need to maintain a balanced
workforce in which women and members of racial and ethnic
minority groups are appropriately represented in Government
service; and
(B) to the extent permitted by section 3110(b) and any other
provision of law which may apply, and if all other things are
equal, give preference to a child of a career employee serving in
or under an agency.
(b)(1) A fellowship may be awarded by an agency to a student
under this chapter only for any period during which such student is
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pursuing a baccalaureate or advanced degree at an institution Of
higher education which is qualified to participate in the agency s
program under this cha ter.
(2) An institution of higher education shall not be considered
qualified to participate in an agency's program under this chapter
unless it demonstrates that it has established a system under which
fellowship recipients would receive academic and career counseling,
particularly with respect to any subjects or areas which the agency
head may from time to time identify.
(c) Agencies may hoffer-
(1) fellowsips covering the full period of a student's under-
graduate education, not to exceed 4 years; and
(2) fellowships covering the last 2 years of a student's under-
graduate education (or the equivalent thereof, in the case of in-
dividuals enrolled in accelerated programs).
To the extent the head of an agency considers appropriate, fellow-
ships may also be offered to students pursuing an advanced degree.
93704. Terms and conditions for individual participation
(a)(1) A fellowship recipient is entitled to receive, by advance pay-
ment or reimbursement-
(A) the full cost of tuition; and
(B) the full cost of books and other appropriate study materi-
als.
(2) In addition to the benefits under paragraph (1), so long as a
student's fellowship continues, such student is entitled to receive, on
a biweekly basis-
(A) during each academic term, an amount equal to the mini-
mum biweekly rate of basic pay payable for grade GS-2 of the
General Schedule; and
(B) with respect to each period during which the student is
serving in aposition in fulfillment of work requirements under
subsection (bX1)(A), the minimum biweekly rate of basic pay
payable for the grade of the position under the General Sched-
ule or, in the case of a position not covered by the General
Schedule, the minimum biweekly rate of basic pay normally
payable for the position.
(3) A fellowship recipient shall not, for any purpose, be considered
an employee by reason of such recipients participation in a program
under this chapter except-
(A) in accordance with the terms under which the individual
is appointed to a position in connection with fulfilling any
work requirement under subsection (b)(1XA); and
(B) as provided under subsection (b)(3)(D).
(b)(1) To be eligible for a fellowship under this chapter, an indi-
vidual must agree in writing-
(A) to satisfy such work requirements as the agency head may
by regulation prescribe with respect to the period before comple-
tion of such individual's undergraduate or advanced studies, as
the case may be; and
(B) to work for a period after completing such individual's
undergraduate or advanced studies (as the case may be) equiva-
lent to the period-of time _over:which-?any biweekly:paymentsdde
scribed in subsection (a)(2) were made.
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(2) With respect to paragraph (1)(A)-
(A) work requirements shall be established in such a way so
that they may be satisfied during periods between consecutive
academic terms in a year, or during the period between consecu-
tive academic years;
(B) any position to which the individual is appointed, and
the types of tasks required to be performed, shall be consistent
with the individual's background and experience, and shall be
determined in a way that complements the individual's educa-
tion and contributes to the individual's preparation for post-fel-
lowship Government service; and
(C) the individual-
(i) may not receive any appointment other than a tempo-
rary appointment not to exceed 120 days; and
(ii) shall be appointed in accordance with such proce-
dures as the agency head (in consultation with the Director
of the Office of Personnel Management) shall by regulation
prescribe, including provisions under which any application
or other appointment-related requirements may be waived.
An agency may, for any individual, waive the work requirements
under paragraph (1)(A), in whole or in part, in such circumstances
as the agency may by regulation prescribe.
(3) With respect to paragraph (1)(B)-
(A) the position to which an individual is appointed shall be
selected in a way that, to the extent practicable, makes use of
the individual's education and training;
(B) appointment shall be carried out in accordance with such
procedures as the agency head (in consultation with the Direc-
tor of the Office of Personnel Management) shall by regulation
prescribe, including provisions under which an individual's
preferences as to geographic location shall be taken into ac-
count, any application or other appointment-related require-
ments may be waived, and appropriate minimum levels of pay
and responsibility are fixed for post-fellowship appointment;
(C) appropriate opportunities for continuing education or
career development, such as seminars, conferences, and special-
ized training, shall be offered during post-fellowship service;
and
(D) the individual shall, while performing post-fellowship
service, be considered an employee of the employing agency for
all purposes, including for purposes of determining basic pay
and eligibility for benefits.
Nothing in this paragraph shall be considered to authorize the ap-
pointment of an individual to a position other than a permanent po-
sition which is-
(i) in the competitive service; or
(ii) excepted from the competitive service either under regula-
tions prescribed by the Office of Personnel Management (other
than a position of a confidential, policy-making, or policy-deter-
mining character) or by statute.
(c)(1) In addition to the matters described in subsection (b), each
agreement referred to in such subsection shall include provisions
under which-
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(A) an agency shall reserve the right to terminate, at any
time, an individual's fellowship, or postfellowship employment
with the United States (in fulfillment of such individual's obli-
gations to the agency under this chapter), based on misconduct
orany other reason which may be specified in the agreement;
(B) the student agrees to reimburse the agency for any
amounts which were paid either to or on behalf of the student
under the fellowship program (excluding any amounts under
subsection (a)(2) and any amounts based on post-fellowship serv-
ice) if the individual involved is unable to complete the re-
quired educational course of study or otherwise satisfy such in-
dividual's obligations under the agreement.
(2)(AXi) The obligation to reimburse the United States under any
provision described in paragraph (1)(B) shall for all purposes be
treated as a debt owing the United States.
(ii) The head of an agency may release an individual from the ob-
ligation referred to in clause (i), or from any part thereof, if the
agency head determines that equity or the interests of the United
States so require.
(B) Termination of an agreement by an agency under paragraph
(1)(A) releases the individual from all requirements and obligations
to which such individual would otherwise be subject under the
agreement.
?3705. Reports
(a)(1) The head of each agency which establishes a fellowship pro-
gram under this chapter shall prepare and submit to the Office of
Personnel Management an annual report. Each such report shall
contain-
(A) a description of the agency's program, including any
modifications made during the period covered by the report;
(B) the number of individuals participating in the program;
(C) the criteria by which any students selected during the
period covered by the report were chosen;
(D) an assessment of how successful the program was, during
the period covered by the report, in meeting the purposes for
which the program was established; and
(E) any other information which the agency head considers
appropriate.
(2) The Office-
(A) shall establish guidelines relating to the preparation and
submission of reports under paragraph (1); and
(B) shall transmit to Congress all agency reports received by
the Office each year, together with any written comments of the
Office.
(b) The General Accounting Office shall annually review each fel-
lowship program established under this chapter to ensure that such
program is in compliance with the requirements of this chapter
(particularly those under section 3709(a)(2)). Findings under each
such review shall be reported to the Congress in writing.
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Subpart C-Employee Performance
CHAPTER 41-TRAINING
Sec. 4101. Definitions.
{ 4
4120. Training for noncareer appointees.
i f
? 4103. Establishment of training programs
(a) *
*
(c)(1) For the purpose of this subsection-
(A) the term "senior executive" has the meaning given under
section 3132(a)(3);
(B) the term "supervisor" has the meaning given under sec-
tion 7103(a)(10); and
(C) the term "management official" has the meaning given
under section 7103(a)(11).
(2) The regulations prescribed under section 4118 shall include
provisions under which each senior executive, supervisor, and man-
agement official shall, except as provided in paragraph (3), be re-
quired to participate in a minimum number of hours of executive,
supervisory or management training each year (or over the course of
such greater period as the Office may prescribe). The regulations
shall specify, by appropriate categories, the minimum period of
training required for individuals subject to this subsection.
(3) Under the regulations, an agency head may exclude an indi-
vidual from this subsection if the period of training required under
this subsection would be inappropriate considering the individual's
anticipated term of service.
(4) The regulations may include provisions under which a period
of participation in the Executive Exchange Program of the Presi-
dent's Commission on Executive Exchange may be counted toward
satisfying the requirements of this subsection.
4120. Training for noncareer appointees
(a) For the purpose of this section, the term "noncareer appointee"
means-
(1) an individual appointed by the President to an office or
position in the executive branch (whether or not Senate confir-
mation is required);
(2) a noncareer appointee, as defined by section 3132(a)(7);
(3) an individual appointed to a position which is in grade
GS-13 of the General Schedule or higher, and which is excepted
from the competitive service because of the confidential, policy-
making, or policy-determining character of the position; and
(4) any other individual holding a similar appointment, as
determined under regulations prescribed by the President.
(b) The Director of the Office of Personnel Management shall estab-
lish a training program designed to acquaint noncareer appointees
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with the operations of the Government, procedures covering the civil
service, good public management practices, and ethical standards
for public servants.
(c) Under such regulations as the President may prescribe, each
noncareer appointee shall be required to complete an appropriate
period of training under this section before the end of the 90-day
period beginning on the date on which that individual's appoint-
ment becomes final, unless-
(1) extraordinary circumstances prevent completion within
such period; or
(2) participation in the training program is unnecessary, due
to the individual's having recently completed a period of Gov-
ernment service, having recently completed a similar period of
training, or otherwise, as determined under those regulations.
(d) Under such regulations as the President may prescribe, an in-
dividual who has been nominated by the President for an office or
position requiring Senate confirmation may, prior to final Senate
action on that nomination, be allowed to participate in training
under this section.
CHAPTER 45-INCENTIVE A WARDS
Subchapter I-Awards for Superior Accomplishments
7507. Awarding of ranks in the Senior Executive Service
(a) * * *
* * * * * *
(e)(i) ***
* * * * * * *
(3)(A) Subject to subparagraph (B), whenever an adjustment takes
effect under section 5305 in the rates of pay under the General
Schedule, each dollar amount specified in the preceding provisions
of this subsection shall be adjusted by an amount, rounded to the
nearest multiple of $100 (or, if midway between multiples of $100, to
the next higher multiple of $100), equal to the percentage corre-
sponding to the overall average percentage of the adjustment in the
rates of pay under the General Schedule (as set forth in the report
transmitted to the Congress under such section).
(B) Each adjustment under section 5305 which first takes effect
(or which first took effect) after September 30, 1987, shall be taken
into account for purposes of subparagraph (A).
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100TH CONGRESS H. R. 2882
1ST SESSION
To amend title 5, United States Code, to increase the productivity of the
Government by promoting excellence in Government management and by
reducing improper political pressures on career civil servants.
IN THE HOUSE OF REPRESENTATIVES
JULY 1, 1987
Mrs. SCHROEDER introduced the following bill; which was referred to the
Committee on Post Office and Civil Service
A BILL
To amend title 5, United States Code, to increase the productiv-
ity of the Government by promoting excellence in Govern-
ment management and by reducing improper political pres-
sures on career civil servants.
1 Be it enacted by the Senate and House of Representa-
2 tines of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Excellence in Govern-
5 ment Management Act of 1987".
6 SEC. 2. FINDINGS AND PURPOSES.
7 (a) FINDINGS.-The Congress finds that-
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1 (1) career civil servants cannot aspire to the most
2 responsible and important positions in Government be-
3 cause those positions have, to an increasing extent in
4 recent years, been filled by political appointees;
5 (2) important management positions in the Gov-
6 ernment are too often filled by political appointees who
7 are not qualified by training, temperament, experience,
8 or knowledge for the positions they occupy;
9 (3) the institutional memory of the Government is
10 declining because the most responsible and important
11 positions in Government are increasingly being filled
12 by political appointees who generally serve for rela-
13 tively short periods of time;
14 (4) career Government executives are at risk of
15 being adversely affected by personnel actions motivated
16 by political considerations;
17 (5) the political forces on senior executives fre-
18 quently force top career managers to abandon Govern-
19 ment careers earlier than they otherwise would have;
20 (6) civil servants are paid substantially less than
21 their private sector counterparts;
22 (7) many of the most talented young people, espe-
23 cially those with training in fields of study most needed
24 by the Government, are not attracted to a career in
25 Government service; and
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1 (8) the civil service has been the target of unfair,
2 politically motivated, and productivity-reducing attacks
3 by elected officials.
4 (b) PuRPOSEs.-The purpose of this Act is to increase
5 the productivity and effectiveness of the Government by-
6 (1) increasing the ability of the Government to re-
7 cruit, retain, and effectively deploy the best employees;
8 (2) ensuring that those who occupy management
9 positions in Government are qualified to do so;
10 (3) providing career civil servants with an ex-
11 panded role in the management of the civil service; and
12 (4) eliminating, to the extent practicable, improper
13 political pressures on career civil servants.
14 SEC. 3. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR
15 OF THE OFFICE OF PERSONNEL MANAGEMENT.
16 Section 1102 of title 5, United States Code, is
17 amended-
18 (1) by redesignating subsections (c) and (d) as sub-
19 sections (d) and (e), respectively; and
20 (2) by inserting after subsection (b) the following:
21 "(c)(1) Whenever the office of the Director of the Office
22 of Personnel Management or the Deputy Director of the
23 Office of Personnel Management becomes vacant, the Presi-
24 dent shall appoint a panel, the functions of which shall be-
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1 "(A) to submit the names of qualified candidates
2 to the President; and
3 "(B) upon request of the President, to provide as-
4 sistance in evaluating potential nominees for the va-
5 cancy involved.
6 "(2) Appointments to panels shall be made-
7 "(A) on a nonpartisan basis; and
8 "(B) from among individuals who, by background,
9 training, and experience, have demonstrated a commit-
10 ment to public service.
11 "(3) An individual shall not be considered an employee
12 by reason of an appointment under this subsection and shall
13 not be entitled to pay by reason of service as a panel
14 member, but may be allowed travel or transportation ex-
15 penses in accordance with section 5703.".
16 SEC. 4. DESIGNATION OF CAREER RESERVED POSITIONS.
17 The second sentence of section 3132(b)(1) of title 5,
18 United States Code, is amended to read as follows: "The
19 criteria and regulations shall provide that a position shall be
20 designated as a career reserved position if the filling of the
21 position by a career appointee is necessary to insure impar-
22 tiality, or the public's confidence in the impartiality, of the
23 Government, if the principal responsibilities of the position
24 relate to managing career employees, or if otherwise neces-
25 sary to carry out the purposes of this subchapter.".
_T-W 9RR9 m
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1 SEC. 5. CALCULATING THE MAXIMUM NUMBER OF NON-
2 CAREER APPOINTEES ALLOWED.
3 Section 3134 of title 5, United States Code, is
4 amended-
5 (1) in subsections (b) and (e), by striking "Senior
6 Executive Service positions in all agencies" and insert-
7 ing in lieu thereof "senior executives employed in
8 Senior Executive Service positions at the end of the
9 preceding fiscal year"; and
10 (2) by amending subsection (d)(1) to read as
11 follows:
12 "(1) 25 percent of the total number of senior ex-
13 ecutives employed in Senior Executive Service posi-
14 tions within the agency at the end of the preceding
15 fiscal year; or".
16 SEC. 6. LIMITATION ON THE NUMBER OF POSITIONS WHICH
17 MAY BE EXCEPTED FROM THE COMPETITIVE
18 SERVICE BECAUSE OF THEIR CONFIDENTIAL
19 OR POLICY-DETERMINING CHARACTER.
20 (a) IN GENERAL.-Section 3302 of title 5, United
21 States Code, is amended-
22 (1) by inserting "(a)" before "The President"; and
23 (2) by adding at the end the following:
24 "(b)(1) Effective after September 30, 1988, and subject
25 to paragraph (2), the maximum number of positions which
26 may be excepted from the competitive service under the rules
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1 because of their confidential or policy-determining character
2 may not exceed 900.
3 "(2) The limitation under this subsection shall not apply
4 with respect to any position if the rate of basic pay payable
5 for such position is less than the minimum rate of basic pay
6 payable for GS-13 of the General Schedule.".
7 (b) CONFORMING AMENDMENTS.-Sections 3304(b)
8 and 3361 of title 5, United States Code, are amended by
9 striking "3302" and inserting in lieu thereof "3302(a)".
10 SEC. 7. REPORT RELATING TO INDIVIDUALS RECEIVING CER-
11 TAIN APPOINTMENTS AFTER HOLDING NON-
12 CAREER POSITIONS.
13 (a) IN GENERAL.-Title 5, United States Code, is
14 amended by inserting after section 3328 the following:
15 "? 3329. Reporting requirement
16 "(a) For the purpose of this section-
17 "(1) the term `noncareer appointment' means an
18 appointment-
19
"(A) to a position excepted from the com-
20 petitive service because of its confidential or
21 policy-determining character;
22 "(B) as a noncareer, limited term, or limited
23 emergency appointee in the Senior Executive
24 Service; or
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1 "(C) described in paragraph (2) or (4) of sec-
2 tion 3324(a); and
3 "(2) the terms `Senior Executive Service posi-
4 tion', `career appointee', `noncareer appointee', `limited
5 term appointee', and `limited emergency appointee'
6 have the meanings set forth in section 3132(a).
7 "(b) The Office of Personnel Management shall submit a
8 written report to the Committee on Post Office and Civil
9 Service of the House of Representatives and the Committee
10 on Governmental Affairs of the Senate with respect to any
11 individual who is appointed to a position within the competi-
12 tive service or to a Senior Executive Service position as a
13 career appointee if, at any time during the 6-month period
14 ending on the effective date of the appointment, such individ-
15 ual served under a noncareer appointment in any agency (in-
16 cluding the Executive Office of the President).
17 "(c) A report under subsection (b)-
18 "(1) shall be submitted no later than 30 days after
19 the effective date of the individual's appointment; and
20 "(2) shall include-
21 "(A) the title of the position within the com-
22 petitive service or the Senior Executive Service
23 position to which the individual is being or was
24 most recently appointed;
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1 "(B) the title of any position held by such in-
2 dividual under a noncareer appointment during
3 the 6-month period ending on the effective date of
4 the appointment referred to in subparagraph (A);
5 "(C) a brief description of the individual's
6 qualifications with respect to the position referred
7 to in subparagraph (A); and
8 "(D) a brief description of the process by
9 which the position under subparagraph (A) was
10 filled.".
11 (b) CHAPTER ANALYSIS.-The analysis for chapter 33
12 of title 5, United States Code, is amended by inserting after
13 the item relating to section 3328 the following:
"3329. Reporting requirement.".
14 SEC. 8. OPM QUALIFICATIONS REVIEW BOARDS RELATING TO
15 APPOINTMENTS IN THE SENIOR EXECUTIVE
16 SERVICE.
17 (a) CAREER APPOINTMENTS.
18 (1) ESTABLISHMENT.-Section 3393(c)(1) of title
19 5, United States Code, is amended to read as follows:
20 "(c)(1) The Office shall establish a qualifications review
21 board. It is the function of the board to certify the executive
22 qualifications of candidates for initial appointment as career
23 appointees in accordance with regulations prescribed by the
24 Office. At least one-half of the board members shall be ap-
25 pointed from among career appointees. Each appointment to
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1 the board shall be for a term of 2 years and shall be made on
2 a non-partisan basis, the sole selection criterion being the
3 professional knowledge of public management and knowledge
4 of appropriate occupational fields. Any panel of board mem-
5 bers may, if so authorized by the board, take any action
6 which the board is authorized to take, except that any such
7 panel shall consist of at least 3 members and at least one-half
8 of the panel members shall be career appointees.".
9 (2) CONFORMING AMENDMENT.-Section
10 3393(c)(2) of title 5, United States Code, is amended
11 by striking "the various qualification review boards,"
12 and inserting in lieu thereof "the qualifications review
13 board,".
14 (b) NONCAREER AND LIMITED APPOINTMENTS.-SeC-
15 tion 3394 of title 5, United States Code, is amended by
16 adding at the end the following:
17 "(c) The Office shall establish a qualifications review
18 board which shall certify the executive qualifications of candi-
19 dates for initial appointment as noncareer, limited term, or
20 limited emergency appointees, in accordance with regulations
21 prescribed by the Office. Appointments to the board shall be
22 made subject to the same terms and conditions as apply with
23 respect to the qualifications review board under section
24 3393(c), but without regard to the requirement that at least
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1 one-half of all board members (or members of a duly consti-
2 tuted panel) be career appointees.".
.3 SEC. 9. GEOGRAPHIC RELOCATION BENEFIT.
4 Section 3395(a) of title 5, United States Code, is
5 amended by adding at the end the following:
6 "(3)(A) Subject to subparagraph (C), an agency shall
7 pay from its appropriations a geographic relocation benefit to
8 any career appointee reassigned to a Senior Executive Serv-
9 ice position outside the career appointee's commuting area.
10 "(B) An amount under this paragraph-
11 "(i) shall be equal to-
12 "(I) 10 percent of the annual rate of basic
13 pay payable to the career appointee immediately
14 before the reassignment; and
15 "(II) any additional amount, not to exceed
16 the amount under subclause (I), which the agency
17 head considers appropriate, taking into account
18 any higher costs of living resulting from the reas-
19 signment, any moving expenses not reimbursable
20 or otherwise covered by the Government, and
21 other similar factors;
22 "(ii) shall be in addition to any amount otherwise
23 payable under this title; and
24 "(iii) shall be paid in a lump sum.
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1 "(C) An agency may pay a geographic relocation benefit
2 under this paragraph only after the individual reassigned
3 agrees in writing to remain in Government service for 12
4 months after the reassignment, unless separated for reasons
5 beyond such individual's control which are acceptable to the
6 agency concerned. If the individual violates the agreement,
7 the amount paid under this paragraph shall be recoverable
8 from the individual as a debt due the United States.".
9 SEC. 10. RESTRICTION ON THE AUTHORITY TO REASSIGN,
10 DETAIL, OR REMOVE A CAREER APPOINTEE IN
11 THE SENIOR EXECUTIVE SERVICE WITHIN 120
12 DAYS AFTER THE APPOINTMENT OF CERTAIN
13 SUPERIORS.
14 (a) REASSIGNMENT OR DETAIL.-Section 3395(e) of
15 title 5, United States Code, is amended-
16 (1) by striking subparagraph (B) of paragraph (1)
17 and inserting in lieu thereof the following:
18 "(B) within 120 days after the appointment in the
19 agency of a noncareer appointee who has the authority
20 to reassign or detail the career appointee."; and
21 (2) by adding at the end the following:
22 "(3) For the purpose of applying paragraph (1) to any
23 career appointee, any days during which such career appoint-
24 ee is serving pursuant to a detail or other temporary assign-
25 ment apart from such appointee's regular position shall not
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1 be counted in determining the number of days that have
2 elapsed since an appointment referred to in subparagraph (A)
3 or (B) of such paragraph.".
4 (b) REMOVAL.-Section 3592(b) of title 5, United
5 States Code, is amended-
6 (1) by striking subparagraph (B) of paragraph (1)
7 and inserting in lieu thereof the following:
8 "(B) within 120 days after the appointment in the
9 agency of a noncareer appointee who has the authority
10 to reassign or detail the career appointee."; and
11 (2) by adding at the end the following:
12 "(3) For the purpose of applying paragraph (1) to any
13 career appointee, any days during which such career appoint-
14 ee is serving pursuant to a detail or other temporary assign-
15 ment apart from such career appointee's regular position
16 shall not be counted in determining the number of days that
17 have elapsed since an appointment referred to in subpara-
18 graph (A) or (B) of such paragraph.".
19 SEC. 11. ENCOURAGEMENT OF SABBATICALS AND OTHER
20 FORMS OF PROFESSIONAL DEVELOPMENT BY
21 CAREER APPOINTEES IN THE SES.
22 Section 3396(d) of title 5, United States Code, is
23 amended-
24 (1) by inserting "(1)" after "(d)"; and
25 (2) by adding at the end the following:
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1 "(2) In order to promote the professional development of
2 career appointees and to assist them in achieving their maxi-
3 mum levels of proficiency, the Office shall, in a manner con-
4 sistent with the needs of the Government, provide appropri-
5 ate informational services and otherwise encourage career
6 appointees to take advantage of any opportunities relating
7 to-
"(A) sabbaticals;
9 "(B) training; or
10 "(C) details or other temporary assignments in
11 other agencies, State or local government, or the pri-
12 vate sector.".
13 SEC. 12. REPORTS ON THE SENIOR EXECUTIVE SERVICE.
14 (a) INFORMATION RELATING TO SABBATICALS AND
15 OTHER FORMS OF PROFESSIONAL DEVELOPMENT.-SeC-
16 tion 3135(a) of title 5, United States Code, is amended-
17 (1) by striking "and" at the end of paragraph (9);
18 (2) by redesignating paragraph (10) as paragraph
19 (11); and
20 (3) by inserting after paragraph (9) the following:
21 "(10) in the aggregate and by agency, the number
22 of career appointees who applied for sabbaticals under
23 section 3396(c) during the preceding fiscal year and
24 the number of applications granted (including the name
25 of each individual whose application was granted and a
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1 brief description of how the sabbatical was to be used);
2 and".
3 (b) OTHER AMENDMENTS.-Section 3135 of title 5,
4 United States Code, is further amended-
5 (1) in the first sentence of subsection (a), by strik-
6 ing "during each odd-numbered" and inserting in lieu
7 thereof "each";
8 (2) by striking "(a) The" and inserting in lieu
9 thereof "The"; and
10 (3) by striking subsection (b).
11 SEC. 13. GOVERNMENT SERVICE FELLOWSHIP PROGRAM.
12 Subpart B of part III of title 5, United States Code, is
13 amended by adding at the end the following:
14 "CHAPTER 37-GOVERNMENT SERVICE
15 FELLOWSHIP PROGRAM
"Sec.
"3701. Definitions.
"3702. Establishment.
"3703. General requirements for the fellowship program.
"3704. Terms and conditions for individual participation.
16 "? 3701. Definitions
17 "For the purpose of this chapter-
18 "(1) the term `Director' means the Director of the
19 Office of Personnel Management;
20 "(2) the term `Government' means the Govern-
21 ment of the United States;
22 "(3) the term `institution of higher education'
23 means an educational institution in any State which-
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1 "(A) admits as regular students only individ-
2 uals having a certificate of graduation from a high
3 school, or the recognized equivalent of such a
4 certificate;
5 "(B) is legally authorized within such State
6 to provide a program of education beyond high
7 school;
8 "(C) provides an educational program for
9 which it awards a baccalaureate degree; and
10 "(D) is accredited by a nationally recognized
11 accrediting agency or association, as identified by
12 the Director by publication in the Federal Regis-
13 ter; and
14 "(4) the term `State' means a State of the United
15 States, the District of Columbia, the Commonwealth of
16 Puerto Rico, and any territory or possession of the
17 United States.
18 "? 3702. Establishment
19 "The Director shall by regulation establish a program
20 under which fellowships shall be awarded to individuals pur-
21 suing post-secondary degrees in fields of study as to which
22 the Government requires, or anticipates that it will require,
23 employees with proficiency or expertise. Fellowships shall be
24 awarded in accordance with the provisions of this chapter,
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1 except that not more than 1,000 students may be admitted
2 into the program in any year.
3 "? 3703. General requirements for the fellowship program
4 "(a) Under the program, fellowships shall be awarded
5 by the Director-
6 "(1) in consultation with such other agency heads
7 as the Director considers appropriate;
8 "(2) taking into consideration the student's area
9 or areas of specialization and the current or anticipated
10 needs of the Government; and
11 "(3) in a manner consistent with the merit system
12 principles set forth in paragraphs (1) and (2) of section
13 2301(b).
14 "(b)(1) Fellowships under this chapter may be awarded
15 only to students pursuing a baccalaureate or advanced degree
16 at an institution of higher education qualified to participate
17 under this chapter, as described in paragraph (2).
18 "(2) In order to be considered qualified to participate
19 under this chapter, an institution of higher education shall be
20 required to demonstrate-
21 "(A) that its academic requirements satisfy such
22 standards as the Director may by regulation prescribe;
23 "(B) that it has established a system under which
24 fellowship recipients would receive academic and
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1 jects or areas which the Director may from time to
2 time identify; and
3 "(C) that it has satisfied any other requirements
4 which the Director may by regulation prescribe.
5 "? 3704. Terms and conditions for individual participation
6 "(a) Regulations prescribed by the Director in carrying
7 out this chapter shall include terms and conditions for individ-
8 ual participation in the program.
9 "(b) The terms and conditions referred to in subsection
10 (a) shall include provisions under which fellowship recipients
11 will, by advance payment or reimbursement, be afforded-
12 "(1) the full cost of tuition;
13 "(2) the full cost of books and other appropriate
14 study materials;
15 "(3) a monthly stipend of $100 during the aca-
16 demic year; and
17 "(4) allowances for subsistence or such other ex-
18 penses as the Director determines to be consistent with
19 prevailing practices under comparable Government
20 programs.
21 "(c)(1) Any individual who receives a fellowship under
22 this chapter shall agree-
23 "(A) to satisfy such work requirements as the Di-
24 rector may by regulation prescribe with respect to any
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1 period before completion of such individual's under-
2 graduate or advanced studies, as the case may be; and
3 "(B) to work for a period after completing such
4 individual's undergraduate or advanced studies (as the
5 case may be) equivalent to twice the period of time for
6 which such individual received financial assistance
7 under this chapter (excluding any period spent in satis-
8 fying the requirements of subparagraph (A).
9 "(2) With respect to paragraph (1)(A)-
10 "(A) the work requirement thereunder shall in-
11 volve service in a Government position which, taking
12 into consideration the individual's background and ex-
13 perience, shall contribute to the individual's prepara-
14 tion for Government service after completing the fel-
15 lowship program;
16 "(B) placement in a position shall be in accord-
17 ance with such procedures as the Director shall by reg-
18 ulation prescribe, including provisions waiving any ap-
19 plication or other requirements for appointment which
20 the Director considers appropriate; and
21 "(C) pay and eligibility for any benefits shall be
22 determined in the same way as in the case of any
23 other individual appointed to such a position for the
24 period involved.
25 "(3) With respect to paragraph (1)(B)-
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1 "(A) the position to which an individual is as-
2 signed shall be selected in a way that, to the extent
3 practicable, makes full use of the individual's expertise;
4 "(B) placement shall be in accordance with such
5 procedures as the Director shall by regulation pre-
6 scribe, including provisions under which an individual's
7 preferences as to geographic location shall be consid-
8 ered, any necessary waivers relating to application and
9 other appointment-related procedures shall be estab-
10 lished, and appropriate minimum levels of basic pay
11 shall be set consistent with the degree of expertise and
12 any other qualifications which the individual may pos-
13 sess; and
14 "(C) if an individual fails to satisfy the work re-
15 quirement thereunder (including as a result of not com-
16 pleting the requirements for the undergraduate or ad-
17 vaned degree, as the case may be), any financial as-
18 sistance received by such individual under this chapter
19 (as described in paragraphs (1) through (4) of subsec-
20 tion (b)) shall be recoverable from the individual as a
21 debt due the United States, unless such failure is due
22 to the individual's separation from Government service
23 for reasons which are beyond such individual's control
24 and which are satisfactory to the Director.
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1 The Director shall, through seminars, conferences, and other
2 similar means, provide continuing education or career devel-
3 opment opportunities to individuals during their period of
4 service under paragraph (1)(B).
5 "(4) Nothing in this subsection shall be considered to
6 authorize the placement of an individual in a position other
7 than a permanent position which is-
8 "(A) in the competitive service; or
9 "(B) excepted from the competitive service either
10 under regulations prescribed by the Office of Personnel
11 Management (other than a position of a confidential or
12 policy-determining character) or by statute.".
13 SEC. 14. TRAINING REQUIREMENTS FOR SUPERVISORS, MAN-
14 AGERS, AND EXECUTIVES.
15 (a) SENIOR EXECUTIVES, SUPERVISORS, AND MAN-
16 AGEMENT OFFICIALS.-Section 4103 of title 5, United
17 States Code, is amended by adding at the end the following:
18 "(c)(1) For the purpose of this subsection-
19 "(A) the term `senior executive' has the meaning
20 given under section 3132(a)(3);
21 "(B) the term `supervisor' has the meaning given
22 under section 7103(a)(10); and
23 "(C) the term `management official' has the mean-
24 ing given under section 7103(a)(11).
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1 "(2) The regulations prescribed under section 4118 shall
2 include provisions under which each senior executive, super-
3 visor, and management official shall, except as provided in
4 paragraph (3), be required to participate in a minimum
5 number of hours of supervisory or management training each
6 year (or over the course of such greater period as the Office
7 may prescribe).
8 "(3) Under the regulations, an agency head may exclude
9 an individual from this subsection if the required period of
10 training under this subsection would be inappropriate consid-
11 ering the individual's anticipated term of service.
12 "(4) The regulations may include provisions under
13 which a period of participation in the Executive Exchange
14 Program of the President's Commission on Executive Ex-
15 change may be counted towards satisfying the requirements
16 of this subsection.".
17 (b) OTHER OFFICIALS.-
18 (1) IN GENERAL.-Chapter 41 of title 5, United
19 States Code, is amended by adding at the end the fol-
20 lowing:
21 '14120. Training for noncareer appointees
22 "(a) For the purpose of this section, the term `noncareer
23 appointee' means-
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1 "(1) an individual appointed by the President to
2 an office or position in the Executive branch (whether
3 or not Senate confirmation is required);
4 "(2) a noncareer appointee, as defined by section
5 3132(a)(7);
6 "(3) an individual appointed to a position excepted
7 from the competitive service because of the confidential
8 or policy-determining character of the position; and
9 "(4) any other individual holding a similar ap-
10 pointment, as determined under regulations prescribed
11 by the President.
12 "(b) The Director of the Office of Personnel Manage-
13 ment shall establish a training program designed to acquaint
14 noncareer appointees with the operations of the Government,
15 procedures covering the civil service, good public manage-
16 ment practices, and ethical standards for public servants.
17 "(c) Under such regulations as the President may pre-
18 scribe, each noncareer appointee shall be required to com-
19 plete an appropriate period of training under this section
20 before the end of the 90-day period beginning on the date on
21 which that individual's appointment becomes final, unless-
22 "(1) extraordinary circumstances prevent comple-
23 tion within such period; or
24 "(2) participation in the training program is un-
25 necessary, due to the individual's having recently com-
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1 pleted a period of Government service, having recently
2 completed a similar period of training, or otherwise, as
3 determined under those regulations.
4 "(d) Under such regulations as the President may pre-
5 scribe, an individual who has been nominated by the Presi-
6 dent for an office or position requiring Senate confirmation
7 may, prior to final Senate action on that nomination, be al-
8 lowed to participate in training under this section.".
9 (2) CHAPTER ANALYSIS.-The analysis for chap-
10 ter 41 of title 5, United States Code, is amended by
11 adding at the end the following:
"4120. Training for noncareer appointees.".
12 SEC. 15. PERFORMANCE APPRAISAL OF NONCAREER AP-
13 POINTEES.
14 (a) REPORTING REQUIREMENT.-Section 4314(b) of
15 title 5, United States Code, is amended-
16 (1) by striking "and" at the end of paragraph (3);
17 (2) by striking the period at the end of paragraph
18 (4) and inserting in lieu thereof "; and"; and
19 (3) by adding at the end the following:
20 "(5) the appraisal and rating of each noncareer
21 appointee shall be transmitted to the President.".
22 (b) TECHNICAL AMENDMENT.-Section 4311 of title 5,
23 United States Code, is amended by inserting " `noncareer
24 appointee,' " after " `senior executive,' ".
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SEC. 16. ADJUSTMENT OF PRESIDENTIAL RANK AWARD
AMOUNTS.
(a) IN GENERAL.-Section 4507(e) of title 5, United
States Code, is amended by adding at the end the following:
"(3) Amounts paid under paragraph (1) or (2) on or after
the first day of any pay period in which an adjustment takes
effect under section 5305 (relating to comparability increases
for rates of pay under the General Schedule and other statu-
tory pay systems) shall be adjusted by an amount, rounded to
the nearest multiple of $100 (or, if midway between multiples
of $100, to the next higher multiple of $100), equal to the
percentage corresponding to the overall average percentage
of the adjustment in the rates of pay under the General
Schedule (as set forth in the report transmitted to the Con-
gress under such section).".
(b) EFFECTIVE DATE.-The amendment made by sub-
section (a) shall be effective after September 30, 1987.
SEC. 17. REQUIREMENT THAT THE DIRECTOR OF OPM PERI-
ODICALLY CONSULT WITH CERTAIN ADVISORY
GROUPS CONSISTING OF FEDERAL EM-
PLOYEES.
Section 1103 of title 5, United States Code, is amended
by adding at the end the following:
"(c)(1) In order to assist the Director in discharging ob-
ligations relating to the management of the Senior Executive
Service, the Director shall establish and periodically consult
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1 with a panel of career appointees (as defined by section
2 3132(a)(4)) who-
3 "(A) shall be appointed by the Director from
4 among individuals generally recognized for their knowl-
5 edge, interest, and experience with respect to matters
6 relating to executive management, or for the excel-
7 lence of their performance as senior executives (as de-
8 fined by section 3132(a)(3)); and
9 "(B) shall be responsible for providing advice to
10 the Director with respect to actions affecting the
11 Senior Executive Service.
12 "(2) In order to assist the Director in discharging obli-
13 gations relating to the management of the civil service, the
14 Director shall establish and periodically consult with a panel
15 of employees holding career appointments in the civil service
16 who-
17 "(A) shall be appointed by the Director from
18 among individuals (including individuals on leave with-
19 out pay to serve as a full-time officer or employee of
20 an organization composed primarily of employees) rec-
21 ommended by labor organizations or other organiza-
22 tions representing the interests of employees generally
23 or specific groups of employees; and
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1 "(B) shall be responsible for providing advice to
2 the Director with respect to actions affecting the civil
3 service.
4 An individual appointed to a panel under paragraph (1) or (2)
5 shall not be entitled to any additional pay, allowances, or
6 benefits by reason of appointment to such panel.".
7 SEC. 18. COUNCIL ON PUBLIC SERVICE.
8 (a) ESTABLISHMENT.-There shall be established a
9 Council on Public Service (hereinafter in this section referred
10 to as the "Council").
11 (b) DUTIES OF THE COUNCIL.-The Council shall-
12 (1) develop and implement a public information
13 program to encourage a positive image of public
14 service;
15 (2) develop an educational program for use in ele-
16 mentary, secondary, and post-secondary schools, focus-
17 ing on the importance of public service and encourag-
18 ing students to consider careers in public service; and
19 (3) make such recommendations to the President
20 and the Congress as the Council considers appropriate
21 in order to carry out the purposes of this section.
22 (C) MEMBERSHIP; QUALIFICATIONS; TERMS AND
23 VACANCIES; PAY.-
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1 (1) MEMBERSHIP.-The Council shall consist of
2 12 members who shall be appointed by the President,
3 except that-
4 (A) 4 of the members so appointed shall be
5 from individuals recommended by the majority
6 leader of the Senate after consultation with the
7 minority leader of the Senate; and
8 (B) 4 of the members so appointed shall be
9 from individuals recommended by the Speaker of
10 the House of Representatives after consultation
11 with the minority leader of the House of Repre-
12 sentatives.
13 (2) QUALIFICATIONS.-Members of the Council
14 shall, by background, training, and experience, have
15 demonstrated a commitment to public service.
16 (3) TERMS AND VACANCIES.-Members of the
17 Council shall be appointed for the life of the Council.
18 Any vacancy in the Council shall be filled in the
19 manner in which the original appointment was made.
20 (4) PAY.-
21 (A) FOR MEMBERS NOT OTHERWISE EM-
22 PLOYED BY THE GOVERNMENT.-Members of the
23 Council who are not otherwise employed by the
24 Government shall be paid at the daily equivalent
25 of the rate of basic pay in effect for level III of
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1 the Executive Schedule under section 5314 of
2 title 5, United States Code, for each day (includ-
3 ing travel time) during which they are engaged in
4 the performance of duties vested in the Council.
5 (B) FOR MEMBERS OTHERWISE EMPLOYED
6 BY THE GOVERNMENT.-Members of the Council
7 who are otherwise full-time officers or employees
8 of the United States shall receive no additional
9 pay, allowances, or benefits, by reason of their
10 service on the Council.
11 (c) DIRECTOR AND STAFF OF THE COUNCIL.-
12 (1) DIRECTOR.-The Council shall, without
13 regard to section 5311(b) of title 5, United States
14 Code, have a Director who shall be appointed by the
15 Council, and who shall be paid at the rate of basic pay
16 payable for level V of the Executive Schedule under
17 section 5316 of such title.
18 (2) STAFF.-With the approval of the Council,
19 and without regard to the provisions of title 5, United
20 States Code, governing appointments in the competi-
21 tive service, the Director is authorized to appoint and
22 fix the pay of such additional personnel as may be nec-
23 essary to carry out the functions of the Council, except
24 that no individual so appointed may receive pay in
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1 excess of the rate of basic pay payable for GS-18 of
2 the General Schedule.
3 (d) TERMINATION.-The Council shall cease to exist 2
4 years after the date on which the Council first meets.
5 (e) AUTHORIZATION OF APPROPRIATIONS.-There is
6 authorized to be appropriated $5,000,000, which shall be
7 available without fiscal year limitation, to carry out this
8 section.
0
-TYR 9AA9 ITT
Declassified in Part - Sanitized Copy Approved for Release 2012/11/15
CIA-RDP90M00005R000200060013-5