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Mr. McCAIN (for Mr. Thurmond) proposed an amendment to the bill, S. 1745, supra; as follows:
At the end of title XI add the following:
Subtitle B--Defense Intelligence Personnel
SEC. 1131. SHORT TITLE.
This subtitle may be cited as the `Department of Defense Civilian Intelligence Personnel Reform Act of 1996'.
SEC. 1132. CIVILIAN INTELLIGENCE PERSONNEL MANAGEMENT.
Section 1590 of title 10, United States Code, is amended to read as follows:
`1590. Management of civilian intelligence personnel of the Department of Defense
`(a) General Personnel Management Authority: The Secretary of Defense may, without regard to the provisions of any other law relating to the appointment, number, classification, or compensation of employees--
`(1) establish--
`(A) as positions in the excepted service, such defense intelligence component positions (including Intelligence Senior Level positions) as the Secretary determines necessary to carry out the intelligence functions of the defense intelligence components, but not to exceed in number the number of the defense intelligence component positions established as of January 1, 1996; and
`(B) such Intelligence Senior Executive Service positions as the Secretary determines necessary to carry out functions referred to in subparagraph (B);
`(2) appoint individuals to such positions (after taking into consideration the availability of preference eligibles for appointment to such positions); and
`(3) fix the compensation of such individuals for service in such positions.
`(b) Basic Pay: (1)(A) Subject to subparagraph (B) and paragraph (2), the Secretary of Defense shall fix the rates of basic pay for positions established under subsection (a) in relation to the rates of basic pay provided in subpart D of part III of title 5 for positions subject to that subpart which have corresponding levels of duties and responsibilities.
`(B) Except as otherwise provided by law, no rate of basic pay fixed under subparagraph (A) for a position established under subsection (a) may exceed--
`(i) in the case of an Intelligence Senior Executive Service position, the maximum rate provided in section 5382 of title 5;
`(ii) in the case of an Intelligence Senior Level position, the maximum rate provided in section 5382 of title 5; and
`(iii) in the case of any other defense intelligence component position, the maximum rate provided in section 5306(e) of title 5.
`(2) The Secretary of Defense may, consistent with section 5341 of title 5, adopt such provisions of that title as provide for prevailing rate systems of basic pay and may apply those provisions to positions for civilian employees in or under which the Department of Defense may employ individuals described by section 5342(a)(2)(A) of such title.
`(c) Additional Compensation, Incentives, and Allowances: (1) Employees in defense intelligence component positions may be paid additional compensation, including benefits, incentives, and allowances, in accordance with this subsection if, and to the extent, authorized in regulations prescribed by the Secretary of Defense.
`(2) Additional compensation under this subsection shall be consistent with, and not in excess of the levels authorized for, comparable positions authorized by title 5.
`(3)(A) Employees in defense intelligence component positions, if citizens or nationals of the United States, may be paid an allowance while stationed outside the continental United States or in Alaska.
`(B) Subject to subparagraph (C), allowances under subparagraph (A) shall be based on--
`(i) living costs substantially higher than in the District of Columbia;
`(ii) conditions of environment which differ substantially from conditions of environment in the continental United States and warrant an allowance as a recruitment incentive; or
`(iii) both of the factors described in clauses (i) and (ii).
`(C) An allowance under subparagraph (A) may not exceed an allowance authorized to be paid by section 5941(a) of title 5 for employees whose rates of basic pay are fixed by statute.
`(d) Intelligence Senior Executive Service: (1) The Secretary of Defense may establish an Intelligence Senior Executive Service for defense intelligence component positions established pursuant to subsection (a) that are equivalent to Senior Executive Service positions.
`(2) The Secretary of Defense shall prescribe regulations for the Intelligence Senior Executive Service which are consistent with the requirements set forth in sections 3131, 3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title 5, subsections (a), (b), and (c) of section 7543 of such title (except that any hearing or appeal to which a member of the Intelligence Senior Executive Service is entitled shall be held or decided pursuant to the regulations), and subchapter II of chapter 43 of such title. To the extent that the Secretary determines it practicable to apply to members of, or applicants for, the Intelligence Senior Executive Service other provisions of title 5 that apply to members of, or applicants for, the Senior Executive Service, the Secretary shall also prescribe regulations to implement those sections with respect to the Intelligence Senior Executive Service.
`(e) Award of Rank to Members of the Intelligence Senior Executive Service: The President, based on the recommendations of the Secretary of Defense, may award a rank referred to in section 4507 of title 5 to members of the Intelligence Senior Executive Service whose positions may be established pursuant to this section. The awarding of such rank shall be made in a manner consistent with the provisions of that section.
`(f) Intelligence Senior Level Positions: The Secretary of Defense may, in accordance with regulations prescribed by the Secretary, designate as an Intelligence Senior Level position any defense intelligence component position that, as determined by the Secretary--
`(1) is classifiable above grade GS-15 of the General Schedule;
`(2) does not satisfy functional or program management criteria for being designated an Intelligence Senior Executive Service position; and
`(3) has no more than minimal supervisory responsibilities.
`(g) Time Limited Appointments: (1) The Secretary of Defense may, in regulations, authorize appointing officials to make time limited appointments to defense intelligence component positions specified in the regulations.
`(2) The Secretary of Defense shall review each time limited appointment in a defense intelligence component position at the end of the first year of the period of the appointment and determine whether the appointment should be continued for the remainder of the period. The continuation of a time limited appointment after the first year shall be subject to the approval of the Secretary.
`(3) An employee serving in a defense intelligence component position pursuant to a time limited appointment is not eligible for a permanent appointment to an Intelligence Senior Executive Service position (including a position in which serving) unless selected for the permanent appointment on a competitive basis.
`(4) In this subsection, the term `time limited appointment' means an appointment (subject to the condition in paragraph (2)) for a period not to exceed two years.
`(h) Termination of Civilian Intelligence Employees: (1) Notwithstanding any other provision of law, the Secretary of Defense may terminate the employment of any employee in a defense intelligence component position if the Secretary--
`(A) considers such action to be in the interests of the United States; and
`(B) determines that the procedures prescribed in other provisions of law that authorize the termination of the employment of such employee cannot be invoked in a manner consistent with the national security.
`(2) A decision by the Secretary of Defense to terminate the employment of an employee under this subsection is final and may not be appealed or reviewed outside the Department of Defense.
`(3) The Secretary of Defense shall promptly notify the Committee on National Security and the Permanent Select Committee on Intelligence of the House of Representatives and the Committee on Armed Services and the Select Committee on Intelligence of the Senate whenever the Secretary terminates the employment of any employee under the authority of this subsection.
`(4) Any termination of employment under this subsection shall not affect the right of the employee involved to seek or accept employment with any other department or agency of the United States if that employee is declared eligible for such employment by the Director of the Office of Personnel Management.
`(5) The authority of the Secretary of Defense under this subsection may be delegated only to the Deputy Secretary of Defense and the head of a defense intelligence component (with respect to employees of that component). An action to terminate employment of such an employee by any such official may be appealed to the Secretary of Defense.
`(i) Reductions and Other Adjustments in Force: (1) The Secretary of Defense, in consultation with the Director of the Office of Personnel Management, shall prescribe regulations for the separation of employees in defense intelligence component positions, including members of the Intelligence Senior Executive Service and employees in Intelligence Senior Level positions, in a reduction in force or other adjustment in force. The regulations shall apply to such a reduction in force or other adjustment in force notwithstanding sections 3501(b) and 3502 of title 5.
`(2) The regulations shall give effect to--
`(A) tenure of employment;
`(B) military preference, subject to sections 3501(a)(3) and 3502(b) of title 5;
`(C) the veteran's preference under section 3502(b) of title 5;
`(D) performance; and
`(E) length of service computed in accordance with the second sentence of section 3502(a) of title 5.
`(2) The regulations relating to removal from the Intelligence Senior Executive Service in a reduction in force or other adjustment in force shall be consistent with section 3595(a) of title 5.
`(3)(A) The regulations shall provide a right of appeal regarding a personnel action under the regulations. The appeal shall be determined within the Department of Defense. An appeal determined at the highest level provided in the regulations shall be final and not subject to review outside the Department of Defense. A personnel action covered by the regulations is not subject to any other provision of law that provides appellate rights or procedures.
`(B) Notwithstanding subparagraph (A), a preference eligible referred to in section 7511(a)(1)(B) of title 5 may appeal to the Merit Systems Protection Board any personnel action taken under the regulations. Section 7701 of title 5 shall apply to any such appeal.
`(j) Applicability of Merit System Principles: Section 2301 of title 5 shall apply to the exercise of authority under this section.
`(k) Collective Bargaining Agreements: Nothing in this section may be construed to impair the continued effectiveness of a collective bargaining agreement with respect to an agency or office that is a successor to an agency or office covered by the agreement before the succession.
`(l) Notification of Congress: At least 60 days before the effective date of regulations prescribed to carry out this section, the Secretary of Defense shall submit the regulations to the Committee on National Security and the Permanent Select Committee on Intelligence of the House of Representatives and the Committee on Armed Services and the Select Committee on Intelligence of the Senate.
`(m) Definitions: In this section:
`(1) The term `defense intelligence component position' means a position of civilian employment as an intelligence officer or employee of a defense intelligence component.
`(2) The term `defense intelligence component' means each of the following components of the Department of Defense:
`(A) The National Security Agency.
`(B) The Defense Intelligence Agency.
`(C) The Central Imagery Office.
`(D) Any component of a military department that performs intelligence functions and is designated as a defense intelligence component by the Secretary of Defense.
`(E) Any other component of the Department of Defense that performs intelligence functions and is designated as a defense intelligence component by the Secretary of Defense.
`(F) Any successor to a component listed in, or designated pursuant to, this paragraph.
`(3) The term `Intelligence Senior Level position' means a defense intelligence component position designated as an Intelligence Senior Level position pursuant to subsection (f).
`(4) The term `excepted service' has the meaning given such term in section 2103 of title 5.
`(5) The term `preference eligible' has the meaning given such term in section 2108(3) of title 5.
`(6) The term `Senior Executive Service position' has the meaning given such term in section 3132(a)(2) of title 5.
`(7) The term `collective bargaining agreement' has the meaning given such term in section 7103(8) of title 5.'.
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SEC. 1133. REPEALS.
(a) Defense Intelligence Senior Executive Service: Sections 1601, 1603, and 1604 of title 10, United States Code, are repealed.
(b) National Security Agency Personnel Management Authorities: (1) Sections 2 and 4 of the National Security Agency Act of 1959 (50 U.S.C. 402 note) are repealed.
(2) Section 303 of the Internal Security Act of 1950 (50 U.S.C. 833) is repealed.
SEC. 1134. CLERICAL AMENDMENTS.
(a) Amended Section Heading: The item relating to section 1590 in the table of sections at the beginning of chapter 81 of title 10, United States Code, is amended to read as follows:
`1590. Management of civilian intelligence personnel of the Department of Defense.'.
(b) Repealed Sections: The table of sections at the beginning of chapter 83 of title 10, United States Code, is amended by striking out the items relating to sections 1601, 1603, and 1604.