119-hr687

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 687 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 687

 To amend title 5, United States Code, to provide for an alternative 
 removal for performance or misconduct for Federal employees.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 23, 2025

 Mr. Loudermilk (for himself, Mr. Carter of Georgia, Mrs. Houchin, Mr. 
 Crawford, Mr. Owens, Mr. Collins, Mrs. Luna, Mr. Webster of Florida, 
 Mr. Mann, Mr. Scott Franklin of Florida, Mr. Meuser, Mr. Babin, Ms. 
 Tenney, Mr. Baird, Mr. Steube, and Mr. Burchett) introduced the 
 following bill; which was referred to the Committee on Oversight and 
 Government Reform

_______________________________________________________________________

 A BILL

 To amend title 5, United States Code, to provide for an alternative 
 removal for performance or misconduct for Federal employees.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Modern Employment 
Reform, Improvement, and Transformation Act of 2025'' or the ``MERIT 
Act of 2025''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

Sec. 2. Termination of authority for chapter 43 performance-based 
 actions.

Sec. 3. Adverse actions based on performance or conduct.

Sec. 4. Prohibition on grieving adverse actions and reductions in 
 force.

Sec. 5. Actions against senior executives for performance or conduct.

Sec. 6. Actions against supervisors for performance or conduct.

Sec. 7. Modification of procedures for furlough.

Sec. 8. Reduction of annuity of employee convicted of a felony for 
 which an adverse action is or would have 
 been taken.

Sec. 9. Authority to recoup bonuses or awards paid to employees.

Sec. 10. Extension of probationary period for positions within the 
 Senior Executive Service.

Sec. 11. Extension of probationary period for employees in the 
 competitive service.

Sec. 12. Application.

SEC. 2. TERMINATION OF AUTHORITY FOR CHAPTER 43 PERFORMANCE-BASED 
 ACTIONS.

    (a) Repeal.--

Section 4303 of title 5, United States Code, is 
repealed.

    (b) Application.--Subsection

    (a) shall not apply to any 
performance-based action under 

section 4303 of title 5, United States 
Code, commenced before the effective date provided in 

section 12.
            (c) Conforming Amendments.--

    (1) Title 5.--Title 5, United States Code, is amended--
        (A) in 

section 2302

    (e)

    (1)
        (A) , by striking ``3504, 
 and 4303

    (e) '' and inserting ``and 3504'';
        (B) in 

section 4302
            (c) (6) , by striking ``but only 
 after an opportunity to demonstrate acceptable 
 performance'';
            (C) in 

section 7512, by striking subparagraph
            (D) and redesignating subparagraphs
        (E) and
        (F) as 
 subparagraphs
            (D) and
        (E) , respectively;
            (D) in 

section 7701
            (c) (1) , by striking ``decision'' 
 and all that follows through ``preponderance of the 
 evidence'' and inserting ``decision is supported by a 
 preponderance of the evidence'';
        (E) in 

section 9508
            (d) , by striking ``

    (1) In 
 applying'' and all that follows through ``

    (2) ''; and
        (F) in 

section 9902

    (a)

    (2) , by striking ``sections 
 4302 and 4303

    (e) '' and inserting ``

section 4302''.

    (2) Title 31.--

Section 732
            (d) (3) of title 31, United States 
 Code, is amended by striking ``consistent with 

section 4303 of 
 title 5''.
            (d) Clerical Amendment.--The table of sections for chapter 43 of 
title 5, United States Code, is amended by striking the item relating 
to 

section 4303.

SEC. 3. ADVERSE ACTIONS BASED ON PERFORMANCE OR CONDUCT.

    (a) In General.--

Section 7513 of title 5, United States Code, is 
amended to read as follows:
``

Sec. 7513. Cause and procedure
 ``

    (a) In General.--
 ``

    (1) Under regulations prescribed by the Office of 
 Personnel Management, an agency may take an action described in 
 paragraphs

    (1) through

    (4) of 

section 7512 against an employee 
 if the agency determines by a preponderance of the evidence the 
 performance or misconduct of the employee warrants such action.
 ``

    (2)
        (A) When making an initial decision on an action 
 described in paragraphs

    (1) through

    (4) of 

section 7512, the 
 deciding employee of the agency shall exclusively apply the 
 following factors:
 ``
            (i) The nature and seriousness of the offense, 
 and its relation to the employee's duties, position, 
 and responsibilities, including whether the offense was 
 intentional or technical or inadvertent, or was 
 committed maliciously or for gain, or was frequently 
 repeated.
 ``
            (ii) The employee's job level and type of 
 employment, including supervisory or fiduciary role, 
 and prominence of the position.
 ``
            (iii) The employee's past disciplinary records.
 ``
            (iv) The employee's past work record, including 
 length of service, performance on the job, ability to 
 get along with fellow workers, and dependability.
 ``
            (v) Mitigating circumstances surrounding the 
 offense such as unusual job tensions personality 
 problems, mental impairment, harassment, or bad faith, 
 malice or provocation on the part of others involved in 
 the matter.
 ``
        (B) The agency shall review the initial decision and 
 uphold such decision if it is supported by substantial 
 evidence.
 ``

    (b) Pay of Certain Employees Subject to a Reduction in Grade.--
 ``

    (1) Notwithstanding any other provision of law, an 
 employee subject to a reduction in grade shall, beginning on 
 the date of such reduction, receive the annual rate of pay 
 applicable to such grade.
 ``

    (2) An employee subject to a reduction in grade may not 
 be placed on administrative leave during the period during 
 which an appeal (if any) under this section is ongoing, and may 
 only receive pay if the employee reports for duty or is 
 approved to use accrued unused annual, sick, family medical, 
 military, or court leave.
 ``

    (3) If an employee subject to a reduction in grade does 
 not report for duty or receive approval to use accrued unused 
 leave, such employee shall not receive pay or other benefits.
 ``
            (c) Procedure.--
 ``

    (1)
        (A) The aggregate period for written notice, response, 
 and final decision of actions described in paragraphs

    (1) through

    (4) of 

section 7512 may not exceed 15 business days 
 unless there are reasonable causes to believe the employee has 
 committed a crime for which a sentence of imprisonment may be 
 imposed.
 ``
        (B) The period for which an employee may respond to a 
 notice of actions described in paragraphs

    (1) through

    (4) of 
 

section 7512 in writing and to furnish affidavits and other 
 documentary evidence in support of the response shall be 7 
 business days.
 ``

    (2) The agency shall issue a final decision with respect 
 to actions described in paragraphs

    (1) through

    (4) of 

section 7512 not later than 15 business days after the agency provides 
 notice, including a file containing all the evidence in support 
 of the proposed action, to the employee. The decision shall be 
 in writing and shall include the specific reasons therefor.
 ``
            (d) PIP.--The agency may carry out such actions described in 
paragraphs

    (1) through

    (4) of 

section 7512 without first placing an 
employee on a performance improvement plan.
 ``

    (e) Employee Rights.--An employee against whom actions described 
in paragraphs

    (1) through

    (4) of 

section 7512 is proposed is entitled 
to--
 ``

    (1) a written notice stating the specific reasons for the 
 proposed action;
 ``

    (2) be represented by an attorney or other 
 representative; and
 ``

    (3) a written decision and the specific reasons therefor 
 at the earliest practicable date.
 ``

    (f) Hearing.--An agency may provide, by regulation, for a hearing 
which may be in lieu of or in addition to the opportunity to answer 
provided under subsection
            (c) (1) (b) of this section.
 ``

    (g) Appeal.--An employee against whom an action described in 
paragraphs

    (1) through

    (4) of 

section 7512 is taken is entitled to 
appeal to the Merit Systems Protection Board under 

section 7701 of this 
title not later than 10 business days after the effective date of the 
action.
 ``

    (h) Procedure.--Copies of the notice of proposed action, the 
answer of the employee when written, a summary thereof when made 
orally, the notice of decision and reasons therefor, and any order 
effecting an action described in paragraphs

    (1) through

    (4) of 

section 7512, together with any supporting material, shall be maintained by the 
agency and shall be furnished to the Board upon its request. Upon the 
affected employee's request, copies of the documents described in the 
preceding sentence shall be furnished to the employee, to the extent 
those documents were not provided under subsection
            (c) .''.

    (b) Discipline of Supervisors Based on Retaliation Against 
Whistleblowers.--

Section 7515

    (b)

    (2)
        (B) of title 5, United States Code, 
is amended--

    (1) in clause
            (i) , by striking ``not later than 14 days'' 
 and inserting ``not more than 7 business days''; and

    (2) in clause
            (ii) , by striking ``14-day period'' and 
 inserting ``7-business-day period''.
            (c) Application.--The amendments made by subsections

    (a) and

    (b) shall not apply to any action under 

section 7513 or 7515 of title 5, 
United States Code, as amended by those subsections, respectively, 
commenced before the effective date provided in 

section 12.

SEC. 4. PROHIBITION ON GRIEVING ADVERSE ACTIONS AND REDUCTIONS IN 
 FORCE.

 

Section 7121 of title 5, United States Code, is amended--

    (1) in subsection

    (a)

    (1) , by striking ``the settlement 
 of'';

    (2) in subsection
            (c) --
        (A) by redesignating paragraphs

    (1) through

    (5) as 
 paragraphs

    (5) through

    (9) , respectively; and
        (B) by inserting before paragraph

    (5) , as so 
 redesignated, the following:
 ``

    (1) an adverse action under subchapter II of chapter 75;
 ``

    (2) a furlough of more than 30 days by a reduction in 
 force action under subchapter I of chapter 35;
 ``

    (3) a separation by a reduction in force action under 
 subchapter I of chapter 35;
 ``

    (4) a demotion by a reduction in force action under 
 subchapter I of chapter 35;'';

    (3) in subsection

    (e) --
        (A) in paragraph

    (1) --
            (i) by striking ``

    (1) Matters'' and all 
 that follows through ``but not both.''; and
            (ii) in the second sentence, by striking 
 ``Similar matters'' and inserting ``Matters 
 similar to those covered under subchapter II of 
 chapter 75''; and
        (B) by striking paragraph

    (2) ; and

    (4) in subsection

    (f) --
        (A) by striking the first sentence; and
        (B) in the second sentence, by striking ``In 
 matters similar to those covered under sections 4303 
 and 7512 of this title'' and inserting ``In matters 
 similar to those covered under subchapter II of chapter 
 75''.

SEC. 5. ACTIONS AGAINST SENIOR EXECUTIVES FOR PERFORMANCE OR CONDUCT.

    (a) Repeal of Pay Retention for Career Appointees Removed From the 
Senior Executive Service.--

Section 3594
            (c) (1)
        (B) of title 5, United 
States Code, is amended to read as follows:
 ``
        (B)
            (i) any career appointee placed under subsection

    (a) or

    (b)

    (2) of this section shall be entitled to receive basic 
 pay at the highest of--
 ``
            (I) the rate of basic pay in effect for the 
 position in which placed;
 ``
            (II) the rate of basic pay in effect at the time 
 of the placement for the position the career appointee 
 held in the civil service immediately before being 
 appointed to the Senior Executive Service; or
 ``
            (III) the rate of basic pay in effect for the 
 career appointee immediately before being placed under 
 subsection

    (a) or

    (b) of this section; and
 ``
            (ii) any career appointee placed under subsection

    (b)

    (1) of this section shall be entitled to receive basic pay at the 
 rate of basic pay in effect for the position in which placed; 
 and''.

    (b) Appraisal System Requirements.--

Section 4314

    (b) of title 5, 
United States Code, is amended--

    (1) in paragraph

    (3) , by inserting before the semicolon the 
 following: ``or, as warranted, from the civil service''; and

    (2) in paragraph

    (4) , by inserting before the period at the 
 end the following: ``or, as warranted, from the civil 
 service''.
            (c) Suspension for 14 Days or Less.--Paragraph

    (1) of 

section 7501 
of title 5, United States Code, is amended to read as follows:
 ``

    (1) `employee' means--
 ``
        (A) an individual in the competitive service who 
 is not serving a probationary period or trial period 
 under an initial appointment or who has completed 1 
 year of current continuous employment in the same or 
 similar positions under other than a temporary 
 appointment limited to 1 year or less; or
 ``
        (B) a career appointee in the Senior Executive 
 Service who--
 ``
            (i) has completed the probationary period 
 prescribed under 

section 3393
            (d) ; or
 ``
            (ii) was covered by the provisions of 
 subchapter II of this chapter immediately 
 before appointment to the Senior Executive 
 Service; and''.
            (d) Modification of Cause and Procedure for Suspension and 
Termination.--

Section 7543 of title 5, United States Code, is amended 
to read as follows:
``

Sec. 7543. Cause and procedure
 ``

    (a) Under regulations prescribed by the Office of Personnel 
Management, an agency may take an action covered by this subchapter 
against an employee if the agency determines by a preponderance of the 
evidence the performance or misconduct of the employee warrants such 
action.
 ``

    (b) When making an initial decision on an action covered by this 
subchapter, the deciding employee of the agency shall exclusively apply 
the following factors--
 ``

    (1) the nature and seriousness of the offense, and its 
 relation to the employee's duties, position, and 
 responsibilities, including whether the offense was intentional 
 or technical or inadvertent, or was committed maliciously or 
 for gain, or was frequently repeated; and
 ``

    (2) the employee's job level and type of employment, 
 including supervisory or fiduciary role, and prominence of the 
 position.
 ``
            (c) The agency shall review the initial decision and uphold such 
decision if it is supported by substantial evidence.
 ``
            (d) (1)
        (A) The aggregate period for written notice, response, and 
final decision of actions covered by this subchapter may not exceed 15 
business days unless there are reasonable causes to believe the 
employee has committed a crime for which a sentence of imprisonment may 
be imposed.
 ``
        (B) The period for which an employee may respond to a notice of 
actions covered by this subchapter in writing and to furnish affidavits 
and other documentary evidence in support of the response shall be 7 
business days.

    (2) The agency shall issue a final decision with respect 
to a covered actions not later than 15 business days after the agency 
provides notice, including a file containing all the evidence in 
support of the proposed action, to the employee. The decision shall be 
in writing and shall include the specific reasons therefor.
 ``

    (e) An employee against whom an action covered by this subchapter 
is proposed is entitled to--
 ``

    (1) a written notice stating the specific reasons for the 
 proposed action;
 ``

    (2) be represented by an attorney or other 
 representative; and
 ``

    (3) a written decision and the specific reasons therefor 
 at the earliest practicable date.
 ``

    (f) An agency may provide, by regulation, for a hearing which may 
be in lieu of or in addition to the opportunity to answer provided 
under subsection
            (d) (1)
        (B) of this section.
 ``

    (g) An employee against whom an action is taken under this 
section is entitled to appeal to the Merit Systems Protection Board 
under 

section 7701 of this title not later than 10 business days after 
the effective date of the action.
 ``

    (h) Copies of the notice of proposed action, the answer of the 
employee when written, a summary thereof when made orally, the notice 
of decision and reasons therefor, and any order effecting an action 
covered by this subchapter, together with any supporting material, 
shall be maintained by the agency and shall be furnished to the Board 
upon its request. Upon the affected employee's request, copies of the 
documents described in the preceding sentence shall be furnished to the 
employee, to the extent those documents were not provided under 
subsection
            (c) .
 ``
            (i) In this section, the term `misconduct' includes neglect of 
duty, malfeasance, or failure to accept a directed reassignment or to 
accompany a position in a transfer of function.''.

    (e) Relation to Other Provisions of Law.--

Section 3592

    (b)

    (1) of 
title 5, United States Code, deso not apply to an action under 

section 7543

    (a) , as amended in subsection
            (d) .

    (f) Conforming Amendments.--Title 5, United States Code, is 
amended--

    (1) in 

section 3592

    (b)

    (2)
        (B) , by striking ``any 
 disciplinary action'' and inserting ``any action under 

section 7543'';

    (2) in 

section 3593

    (a)

    (2) , by striking ``misconduct, 
 neglect of duty, malfeasance,'' and inserting ``a removal under 
 

section 7543'';

    (3) in 

section 3594, by adding at the end the following:
 ``
            (d) This section shall not apply to any career appointee who is 
subject to a personnel action under subchapter V of chapter 75.''; and

    (4) in 

section 7542, by striking ``or to a removal under 
 

section 3592 or 3595'' and inserting the following: ``to a 
 removal from the Senior Executive Service under 

section 3592 of 
 this title, to a reduction in force as defined in 

section 3595
            (d) of this title, or to a transfer of function as 
 described in 

section 3595

    (e) ''.

    (g) Application.--The amendments made by this section shall not 
apply to any personnel action under subchapter V of chapter 75 of title 
5, United States Code, commenced before the effective date of this Act.

SEC. 6. ACTIONS AGAINST SUPERVISORS FOR PERFORMANCE OR CONDUCT.

 Subchapter II of title 5, United States Code, is amended--

    (1) by redesignating sections 7514 and 7515 as sections 
 7516 and 7517, respectively; and

    (2) by inserting after 

section 7513 the following:
``

Sec. 7514. Supervisors
 ``

    (a) In General.--
 ``

    (1) The agency may take an action covered by this 
 subchapter against a supervisor, as defined in 

section 7103

    (a)

    (10) , if the agency determines by a preponderance of the 
 evidence that the performance or misconduct of the supervisor 
 warrants such action.
 ``

    (2) When making an initial decision on an action covered 
 by this subchapter, the deciding employee of the agency shall 
 exclusively apply the following factors:
 ``
        (A) The nature and seriousness of the offense, 
 and its relation to the supervisor's duties, position, 
 and responsibilities, including whether the offense was 
 intentional or technical or inadvertent, or was 
 committed maliciously or for gain, or was frequently 
 repeated.
 ``
        (B) The supervisor's job level and type of 
 employment, including supervisory or fiduciary role, 
 and prominence of the position.
 ``

    (3) The agency shall review the initial decision and 
 uphold such decision if it is supported by substantial 
 evidence.
 ``

    (4) A supervisor against whom an action covered by this 
 subchapter is proposed is entitled to--
 ``
        (A) a written notice stating the specific reasons 
 for the proposed action;
 ``
        (B) be represented by an attorney or other 
 representative; and
 ``
            (C) a written decision and the specific reasons 
 therefor at the earliest practicable date.
 ``

    (5) The agency may carry out such action covered by this 
 subchapter without first placing a supervisor on a performance 
 improvement plan.
 ``

    (6) The procedures under chapter 43 shall not apply to an 
 action covered by this subchapter.
 ``

    (b) Procedure.--

    (1)
        (A) The aggregate period for written notice, 
response, and final decision of actions covered by this subchapter may 
not exceed 15 business days unless there are reasonable causes to 
believe the employee has committed a crime for which a sentence of 
imprisonment may be imposed.
 ``
        (B) The period for which an employee may respond to a notice of 
actions covered by this subchapter in writing and to furnish affidavits 
and other documentary evidence in support of the response shall be 7 
business days.
 ``

    (2) The agency shall issue a final decision with respect to a 
covered action not later than 15 business days after the agency 
provides notice, including a file containing all the evidence in 
support of the proposed action, to the employee. The decision shall be 
in writing and shall include the specific reasons therefor.
 ``
            (c) Reduction in Grade.--
 ``

    (1) A reduction in grade under subsection

    (a) shall be 
 carried out as a reduction in grade for which the covered 
 individual is qualified, that the agency determines is 
 appropriate, and that reduces the annual rate of pay of the 
 supervisor.
 ``

    (2) Notwithstanding any other provision of law, any 
 supervisor subject to a reduction in grade--
 ``
        (A) shall, beginning on the date of such 
 demotion, receive the annual rate of pay applicable to 
 such grade;
 ``
        (B) may not be placed on administrative leave 
 during the period during which an appeal (if any) under 
 this section is ongoing, and may only receive pay if 
 the supervisor reports for duty or is approved to use 
 accrued unused annual, sick, family medical, military, 
 or court leave; and
 ``
            (C) who does not report for duty or receive 
 approval to use accrued unused leave shall not receive 
 pay or other benefits.
 ``
            (d) === Definition. ===
-In this section, the term `supervisor' has the 
meaning given that term under 

section 7103

    (a) .''.

SEC. 7. MODIFICATION OF PROCEDURES FOR FURLOUGH.

    (a) Furlough of 14 Days or Less; Emergency Furlough.--Subchapter I 
of chapter 75 of title 5, United States Code, is amended--

    (1) in 

section 7501, as amended by 

section 5
            (c) ,--
        (A) in paragraph

    (1) by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (2) as paragraph

    (4) ; and
            (C) by inserting the following after paragraph

    (1) the following:
 ``

    (2) `furlough' has the meaning given that term in 

section 7511

    (a)

    (5) ;
 ``

    (3) `emergency furlough' means a furlough due to a lapse 
 in appropriations;'';

    (2) in 

section 7502, by striking ``This subchapter'' and 
 all that follows through ``this title.'' and inserting the 
 following: ``This subchapter applies to--
 ``

    (1) a suspension for 14 days or less, but not a 
 suspension under 

section 7521 or 7532 or any action initiated 
 under 

section 1215;
 ``

    (2) a furlough for 14 days or less; and
 ``

    (3) an emergency furlough of any duration.'';

    (3) by redesignating 

section 7504 as 

section 7505; and

    (4) by inserting after 

section 7503, the following:
``

Sec. 7504. Furlough and emergency furlough cause and procedure
 ``

    (a) General Furlough.--
 ``

    (1) In general.--An employee may be subject to a furlough 
 for such cause as will promote the efficiency of the service. 
 Any employee furloughed under this section is entitled to the 
 procedures established under the regulations promulgated under 
 paragraph

    (2) .
 ``

    (2) Procedures.--Not later than 180 days after the date 
 of enactment of this section, the Office of Personnel 
 Management shall promulgate regulations providing for--
 ``
        (A) the circumstances under which an employee may 
 be furloughed under this section;
 ``
        (B) the procedures to be afforded furloughed 
 employees, including, to the extent appropriate and 
 practicable under the circumstances of the furlough 
 action--
 ``
            (i) a written notice stating the specific 
 reasons for the proposed action;
 ``
            (ii) be represented by an attorney or 
 other representative; and
 ``
            (iii) a written decision and the specific 
 reasons therefor at the earliest practicable 
 date; and
 ``
            (C) the materials that shall be furnished to a 
 furloughed employee and the Merit Systems Protection 
 Board upon request of the employee or the Board.
 ``

    (b) Emergency Furlough.--
 ``

    (1) In general.--An employee may be subject to an 
 emergency furlough.
 ``

    (2) Procedures.--
 ``
        (A) Notice.--Under regulations prescribed by the 
 Office of Personnel Management, any employee subject to 
 an emergency furlough shall be afforded notice 
 explaining the reasons for the emergency furlough. If 
 the notice cannot be provided in advance of the 
 emergency furlough, notice shall be provided as soon as 
 reasonably practicable.
 ``
        (B) Other procedures.--No other procedures, 
 including those provided under subsection

    (a) or any 
 other provision of this title, shall be available to 
 any employee subject to an emergency furlough under 
 this subsection.
 ``

    (3) === Definition. ===
-For the purposes of this section, the 
 term `employee' means any employee described under 

section 7501

    (1) .''.

    (b) Furlough of More Than 14 Days.--Subchapter II of chapter 75 of 
title 5, United States Code, is amended--

    (1) in 

section 7511

    (a)

    (5) by inserting before the period 
 the following: ``, but does not include an emergency furlough 
 as defined in 

section 7501 of title 5''.

    (2) in 

section 7512, as amended by 

section 2
            (c) --
        (A) in paragraph

    (5) by striking ``a furlough of 30 
 days or less'' and inserting ``a furlough of more than 
 14 days but less than 31 days'';
        (B) in subparagraph
            (D) , as redesignated by 

section 2
            (c) , by striking ``or'' at the end;
            (C) in subparagraph
        (E) , as redesignated by 

section 2
            (c) , by striking the period at the end and inserting 
 ``; or''; and
            (D) by adding at the end the following:
 ``
        (F) an emergency furlough action under 

section 7504.'';

    (3) by inserting after 

section 7514, as added by 

section 6, 
 the following:
``

Sec. 7515. Furlough cause and procedure
 ``

    (a) In General.--An employee may be subject to a furlough for 
such cause as will promote the efficiency of the service. Any employee 
furloughed under this section is entitled to the procedures established 
under the regulations promulgated under subsection

    (b) .
 ``

    (b) Procedures.--Not later than 180 days after the date of 
enactment of this section, the Office of Personnel Management shall 
promulgate regulations providing for--
 ``

    (1) the circumstances under which an employee may be 
 furloughed under this section;
 ``

    (2) the procedures provided under 

section 7513 to the 
 extent appropriate and practicable under the circumstances of 
 the furlough action; and
 ``

    (3) the materials that shall be furnished to a furloughed 
 employee and the Merit Systems Protection Board upon request of 
 the employee or the Board.
 ``
            (c) Appeal.--An employee against whom a furlough action is taken 
under this section is entitled to appeal to the Merit Systems 
Protection Board under 

section 7701 not later than 10 business days 
after the effective date of the action.''.
            (d) Administrative Law Judges.--

Section 7521

    (b) of title 5, United 
States Code, is amended--

    (1) in subparagraph
        (B) by striking ``or'' at the end;

    (2) in subparagraph
            (C) by striking the period at the end 
 and inserting ``or''; and

    (3) by adding at the end the following:
 ``
            (D) an emergency furlough action under 

section 7504.''.

    (e) Technical Amendments.--

    (1) Section 7503.--The heading of 

section 7503 of title 5, 
 United States Code, is amended by striking ``Cause and 
 procedure'' and inserting ``Suspension cause and procedure'',.

    (2) Section 7513.--

Section 7513 of title 5, United States 
 Code, is amended by striking ``Cause and procedure'' and 
 inserting ``Cause and procedure for actions other than 
 furlough''.

    (f) Clerical Amendments.--

    (1) Subchapter i of chapter 75 of title 5.--The table of 
 sections for subchapter I of chapter 75 of title 5, United 
 States Code, is amended by striking the items relating to 
 sections 7503 and 7504 and inserting the following:

``7503. Suspension cause and procedure.
``7504. Furlough and emergency furlough cause and procedure.
``7505. Regulations.''.

    (2) Subchapter ii of chapter 75 of title 5.--The table of 
 sections for subchapter II of chapter 75 of title 5, United 
 States Code, is amended by striking the items relating to 
 sections 7513 through 7515 and inserting the following:

``7513. Cause and procedure for actions other than furlough.
``7514. Supervisors.
``7515. Furlough cause and procedure.
``7516. Regulations.
``7517. Discipline of supervisors based on retaliation against 
 whistleblowers.''.

    (g) Application.--Notwithstanding 

section 12, the amendments made 
by this section shall take effect on the earlier of--

    (1) the date that is 180 days after the date of enactment 
 of this Act; or

    (2) the date on which the Office of Personnel Management 
 promulgates regulations provided under sections 7504 and 7515 
 of title 5, United States Code, as added by this section.

SEC. 8. REDUCTION OF ANNUITY OF EMPLOYEE CONVICTED OF A FELONY FOR 
 WHICH AN ADVERSE ACTION IS OR WOULD HAVE BEEN TAKEN.

    (a) Reduction of Annuity of Employee Convicted of a Felony for 
Which an Adverse Action Is Taken.--

    (1) In general.--Subchapter II of chapter 83 of title 5, 
 United States Code, is amended by adding at the end the 
 following:
``

Sec. 8323. Reduction of benefits of employees convicted of certain 
 crimes
 ``

    (a) Reduction of Annuity.--
 ``

    (1) In general.--The felonious service of a covered 
 individual shall not be taken into account for purposes of 
 calculating an annuity with respect to the individual under 
 subchapter III of this chapter or chapter 84 if--
 ``
        (A) the covered individual is finally convicted 
 of a felony; and
 ``
        (B) the head of the agency at which the 
 individual was employed determines that the conviction 
 was based on the acts or omissions of the covered 
 individual that--
 ``
            (i) were taken or not taken in the 
 performance of the covered individual's 
 official duties at the agency; and
 ``
            (ii) are sufficient to support a removal 
 action under 

section 7513, 7543, or any other 
 provision of law against the covered 
 individual.
 ``

    (2) Procedures.--A covered individual against whom a 
 determination is made under paragraph

    (1) shall be afforded--
 ``
        (A) notice of the determination not later than 15 
 business days in advance of a final order under 
 paragraph

    (3) ; and
 ``
        (B) an opportunity to respond to the 
 determination by not later than 10 business days after 
 receipt of the notice.
 ``

    (3) Final order.--The head of the agency shall issue a 
 final order to carry out paragraph

    (1) not later than--
 ``
        (A) in the case of a covered individual who 
 responds under paragraph

    (2)
        (B) , 5 business days after 
 receiving the response from the covered individual, to 
 the maximum extent practicable; or
 ``
        (B) in the case of a covered individual who does 
 not so respond, 15 business days after the date on 
 which the head of the agency provided notice to the 
 individual under paragraph

    (2)
        (A) , to the maximum 
 extent practicable.
 ``

    (4) Appeal.--A covered individual with respect to whom an 
 annuity is to be reduced under this subsection may appeal the 
 final order under paragraph

    (3) to the Merit Systems Protection 
 Board in accordance with any regulations that the Board may 
 prescribe for purposes of this subsection. An appeal may not be 
 made under this paragraph later than that date that is 10 
 business days after the date on which an order is issued under 
 paragraph

    (3) .
 ``

    (b) Administrative Requirements.--
 ``

    (1) In general.--Not later than 30 business days after 
 the date on which the head of an agency issues a final order 
 under subsection

    (a) or a final decision of the Merit Systems 
 Protection Board is rendered (as the case may be) with respect 
 to an individual, the applicable employing agency shall amend 
 the covered individual's retirement records to reflect the 
 period of service that is no longer creditable by operation of 
 this section and transmit the amended records to the Director 
 of the Office of Personnel Management.
 ``

    (2) Annuitants.--With respect to any covered individual 
 who is an annuitant on the date on which a final order is so 
 issued, the Director of the Office of Personnel Management 
 shall, not later than 30 business days after the receipt of 
 amended retirement records from an agency under paragraph

    (1) , 
 recalculate the annuity of the annuitant.
 ``
            (c) Lump-Sum Annuity Credit.--A covered individual with respect 
to whom an annuity is reduced under subsection

    (a) shall be entitled to 
be paid so much of the individual's lump-sum credit as is attributable 
to the period of felonious service.
 ``
            (d) Spouse Exception.--The spouse of any covered individual 
referred to in subsection

    (a) shall be eligible for spousal annuity 
benefits that, but for subsection

    (a) , would otherwise have been 
payable if the Attorney General of the United States or the attorney 
general of a State, a territory, or the District of Columbia determines 
that the spouse fully cooperated with authorities in the conduct of a 
criminal investigation and subsequent prosecution of the individual 
that resulted in the benefit reduction.
 ``

    (e) Application.--Nothing in this section shall be construed to 
affect or otherwise mitigate the application of any other section of 
this subchapter.
 ``

    (f) 

=== Definitions. ===
-In this section--
 ``

    (1) the term `covered individual' means--
 ``
        (A) an individual who is removed from a position 
 as an employee (as defined in 

section 2105) in the 
 civil service for performance or misconduct under 
 

section 7513, 7543, or any other provision of law; or
 ``
        (B) an individual who--
 ``
            (i) is an employee (as defined in 

section 2105) subject to a removal action for 
 performance or misconduct under 

section 7513, 
 7543, or any other provision of law; and
 ``
            (ii) voluntarily separates from service 
 with the employing agency prior to the issuance 
 of a final decision with respect to the removal 
 action;
 ``

    (2) the term `felonious service' means, with respect to a 
 covered individual, the period of service--
 ``
        (A) beginning on the date on which the head of 
 the employing agency determines that the individual 
 commenced engaging in the acts or omissions that gave 
 rise to the removal action or proposed removal action 
 described in paragraph

    (1) ; and
 ``
        (B) ending on the date that is the earlier of--
 ``
            (i) the date on which the individual is 
 removed from or voluntarily separates from a 
 position at the agency; or
 ``
            (ii) the date on which the individual 
 ceases engaging in the acts or omissions that 
 gave rise to the removal action or proposed 
 removal action described in paragraph

    (1) ;
 ``

    (3) the term `finally convicted' or `final conviction' 
 refers to a conviction of a felony--
 ``
        (A) that has not been appealed and is no longer 
 appealable because the time for taking an appeal has 
 expired; or
 ``
        (B) that has been appealed and the appeals 
 process for which is completed;
 ``

    (4) the term `lump-sum credit' has the meaning given that 
 term in 

section 8331

    (8) or 8401

    (19) (as the case may be); and
 ``

    (5) the term `service' has the meaning given that term in 
 

section 8331

    (12) or 8401

    (26) (as the case may be).''.

    (2) Clerical amendment.--The table of sections for 
 subchapter II of chapter 83 of title 5, United States Code, is 
 amended by adding at the end the following:

``8323. Reduction of benefits of employees convicted of certain 
 crimes.''.

    (b) Application.--

Section 8323 of title 5, United States Code, as 
added by subsection

    (a) , shall apply to acts or omissions described in 
subsection

    (a)

    (1)
        (B) of that section occurring after the date of 
enactment of this Act.
            (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 9. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES.

    (a) Adverse Findings and Employees Under Investigation.--Chapter 45 
of title 5, United States Code, is amended by adding at the end the 
following:

 ``Subchapter IV--Limitations on Bonus Authority

``

Sec. 4531. Certain forms of misconduct
 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Adverse 

=== finding ===
-
 ``
        (A) In general.--The term `adverse finding' means 
 a determination by the head of the agency employing an 
 employee that the conduct of the employee--
 ``
            (i) violated a policy of the agency for 
 which the employee may be removed or suspended 
 for a period of not less than 14 days; or
 ``
            (ii) violated a law for which the 
 employee may be imprisoned for more than 1 
 year.
 ``
        (B) Basis.--A determination described in 
 subparagraph
        (A) may be based on an investigation by, a 
 determination of, or information provided by the 
 Inspector General or another senior ethics official of 
 an agency or the Comptroller General of the United 
 States, as part of carrying out an activity, authority, 
 or function of the Inspector General, senior ethics 
 official, or Comptroller General, respectively, under a 
 provision of law other than this section.
 ``

    (2) Agency.--The term `agency' has the meaning given the 
 term in 

section 551.
 ``

    (3) Bonus.--The term `bonus' means any performance award 
 or cash award under--
 ``
        (A) section 4505a;
 ``
        (B) section 5384; or
 ``
            (C) section 5754.
 ``

    (4) Employee.--The term `employee' means an employee of 
 an agency.
 ``

    (b) Prohibition.--The head of an agency may not award a bonus to 
an employee of the agency until the date that is 5 years after the end 
of the fiscal year during which the head of an agency makes an adverse 
finding relating to the employee.
 ``
            (c) After Bonus Awarded.--
 ``

    (1) In general.--For a bonus awarded to an employee after 
 the date of enactment of this section, if the head of the 
 agency employing the employee makes an adverse finding relating 
 to the employee during the fiscal year in which the bonus is 
 awarded, the head of the agency, after notice and an 
 opportunity for a hearing, shall issue an order directing the 
 employee to repay the amount of the bonus.
 ``

    (2) Repayment plan.--An agency shall allow an employee 
 who is required to repay a bonus under paragraph

    (1) to repay 
 that bonus using a repayment plan.
 ``

    (3) Hearings.--A hearing under this subsection shall be 
 conducted in accordance with regulations relating to hearings 
 promulgated by the head of the agency under chapter 75.
 ``
            (d) Condition of Receipt.--As a condition of receiving a bonus 
awarded after the date of enactment of this section, an employee shall 
sign a certification stating that the employee shall repay the bonus in 
accordance with a final order issued under subsection
            (c) .
 ``

    (e) Appeal.--An employee determined to be ineligible for a bonus 
under subsection

    (b) or against whom an order is issued under 
subsection
            (c) may submit an appeal to the Merit Systems Protection 
Board under 

section 7701.''.

    (b) Rulemaking.--The head of each agency, as defined in 

section 551 
of title 5, United States Code, may promulgate rules to carry out 

section 4531 of title 5, United States Code, as added by subsection

    (a) .
            (c) Technical and Conforming Amendment.--The table of sections for 
chapter 45 of title 5, United States Code, is amended by adding at the 
end the following:

 ``subchapter iv--limitations on bonus authority

``4531. Certain forms of misconduct.

SEC. 10. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE 
 SENIOR EXECUTIVE SERVICE.

    (a) In General.--

Section 3393
            (d) of title 5, United States Code, is 
amended by striking ``1-year'' and inserting ``2-year''.

    (b) Conforming Amendment.--

Section 3592

    (a)

    (1) of title 5, United 
States Code, is amended by striking ``1-year'' and inserting ``2-
year''.
            (c) Application.--The amendments made by this section shall apply 
in the case of any individual initially appointed as a career appointee 
under 

section 3393 of title 5, United States Code, on or after the 
effective date provided in 

section 12 of this Act.

SEC. 11. EXTENSION OF PROBATIONARY PERIOD FOR EMPLOYEES IN THE 
 COMPETITIVE SERVICE.

    (a) Extension of Probationary Period.--

    (1) In general.--

Section 3321 of title 5, United States 
 Code, is amended--
        (A) in subsection

    (a) , by striking ``The 
 President'' and inserting ``Subject to subsections
            (c) and
            (d) , the President'';
        (B) by redesignating subsection
            (c) as subsection

    (e) ; and
            (C) by inserting after subsection

    (b) the 
 following:
 ``
            (c) (1) The length of a probationary period established under 
paragraph

    (1) or

    (2) of subsection

    (a) shall--
 ``
        (A) with respect to any position that requires formal 
 training, begin on the date of the appointment to the position 
 and end on the date that is 2 years after the date on which the 
 formal training is completed;
 ``
        (B) with respect to any position that requires a license, 
 begin on the date of the appointment to the position and end on 
 the date that is 2 years after the date of the appointment or 
 the date on which the license is granted, whichever is later; 
 and
 ``
            (C) with respect to any position not covered by 
 subparagraph
        (A) or
        (B) , be a period of 2 years beginning on 
 the date of the appointment to the position.
 ``

    (2) For purposes of paragraph

    (1) --
 ``
        (A) the term `formal training' means, with respect to any 
 position, a training program required by law, rule, or 
 regulation, or otherwise required by the employing agency, to 
 be completed by the employee before the employee is able to 
 successfully execute the duties of the applicable position; and
 ``
        (B) the term `license' means a license, certification, or 
 other grant of permission to engage in a particular activity.
 ``
            (d) The head of each agency shall, in the administration of this 
section, take appropriate measures to ensure that--
 ``

    (1) any announcement of a vacant position and any offer 
 of appointment made to an individual with respect to a vacant 
 position clearly states the terms and conditions of any 
 applicable probationary period, including any formal training 
 period and any license requirement;
 ``

    (2) any individual who is required to complete a 
 probationary period under this section receives timely notice 
 of any requirements, including performance requirements, that 
 must be met in order to satisfactorily complete that period;
 ``

    (3) any supervisor or manager of an individual who is 
 required to complete a probationary period under this section 
 receives periodic notifications of the end date of that period 
 not later than 1 year, 6 months, 3 months, and 30 days before 
 the end date; and
 ``

    (4) if the agency head decides to retain an individual 
 after the completion of a probationary period under this 
 section, the agency head submits a certification to that effect 
 to the President, supported by a brief statement of the basis 
 for the certification, in such form and manner as the President 
 may by regulation prescribe.''.

    (2) Technical amendment.--

Section 3321

    (e) of title 5, 
 United States Code (as so redesignated by paragraph

    (1) ), is 
 amended by striking ``Subsections

    (a) and

    (b) '' and inserting 
 ``Subsections

    (a) through
            (d) ''.

    (3) Application.--This subsection and the amendments made 
 by this subsection shall apply in the case of any appointment 
 (as referred to in 

section 3321

    (a)

    (1) of title 5, United States 
 Code) and any initial appointment (as referred to in 

section 3321

    (a)

    (2) of that title) taking effect on or after the 
 effective date provided in 

section 12 of this Act.

    (b) Adverse Actions.--

    (1) Subchapter i of chapter 75 of title 5.--

Section 7501

    (1) of title 5, United States Code, as amended by sections 5
            (c) and 
 7

    (a)

    (1) , is further amended--
        (A) by striking ``or, except'' and inserting ``and, 
 except''; and
        (B) by striking ``1 year of current'' and inserting 
 ``2 years of current''.

    (2) Subchapter ii of chapter 75 of title 5.--

Section 7511

    (a)

    (1) of title 5, United States Code, is amended--
        (A) in subparagraph
        (A) --
            (i) in clause
            (i) , by striking ``; or'' and 
 inserting ``; and''; and
            (ii) in clause
            (ii) , by striking ``1 year'' 
 the first place it appears and inserting ``2 
 years'';
        (B) in subparagraph
        (B) , by striking ``1 year'' and 
 inserting ``2 years''; and
            (C) in subparagraph
            (C) 
            (i) , by striking ``; or'' 
 and inserting ``; and''.

    (3) Application.--The amendments made by paragraphs

    (1) and

    (2) shall apply in the case of any individual whose period of 
 continuous service commences on or after the effective date 
 provided in 

section 12.
            (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 12. APPLICATION.

    (a) Effective Date.--Unless otherwise specifically provided for in 
this Act, the amendments made by this Act shall take effect on the date 
that is 1 year after the date of enactment of this Act.

    (b) Collective Bargaining Agreements.--Notwithstanding any other 
provision of law, the procedures established or amended by this Act 
shall supersede any collective bargaining agreement to the extent that 
the agreement is inconsistent with those procedures.
            (c) Definition of Business Day.--For purposes of carrying out this 
Act and the amendments made by this Act, the term ``business day'' 
means any day other than a Saturday, Sunday, or legal public holiday 
under 

section 6103

    (a) of title 5, United States Code.
 <all>