[House Report 113-156]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-156
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ALCOHOL AND TOBACCO TAX AND TRADE BUREAU PERSONNEL FLEXIBILITIES ACT
_______
July 16, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Issa, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 2067]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 2067) to amend title 5, United
States Code, to make permanent the authority of the Secretary
of the Treasury to establish a separate compensation and
performance management system with respect to persons holding
critical scientific, technical, or professional positions
within the Alcohol and Tobacco Tax and Trade Bureau, Department
of the Treasury, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
CONTENTS
Page
Committee Statement and Views.................................... 2
Section-by-Section............................................... 2
Explanation of Amendments........................................ 3
Committee Consideration.......................................... 3
Application of Law to the Legislative Branch..................... 3
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rule Makings.............................. 4
Federal Advisory Committee Act................................... 4
Unfunded Mandate Statement....................................... 4
Earmark Identification........................................... 4
Committee Estimate............................................... 4
Budget Authority and Congressional Budget Office Cost Estimate... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
Committee Statement and Views
PURPOSE AND SUMMARY
In 1998, Congress granted the Treasury Department the
authority to establish a three-year personnel management
demonstration project in the FY1999 Omnibus Appropriations Act.
The demonstration project's authority expired on October
20, 2012. Until President Obama's FY 2014 budget request, the
Alcohol and Tobacco Tax and Trade Bureau (TTB) of the
Department of the Treasury had asked for the continuation of
this authority in its own budget justification. The President's
FY 14 budget did not support extending the demonstration
project. Instead, the budget states the Administration would
``allow'' TTB to petition the Office of Personnel Management
(OPM) for authorization of a new demonstration project.
Moving legislation to grant TTB permanent authority for the
demonstration project is consistent with the Committee's effort
to strengthen the link between federal worker pay and
performance.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 2067, the Alcohol and Tobacco Tax and Trade Bureau
Personnel Flexibilities Act, would make permanent a
performance-based compensation system for the scientific and
technical employees of the Alcohol and Tobacco Tax and Trade
Bureau (TTB) of the Department of the Treasury.
LEGISLATIVE HISTORY
In 1998, Congress granted the Treasury Department the
authority to establish a three-year personnel management
demonstration project in the FY1999 Omnibus Appropriations Act
(P.L. 105-119).
In 2002, authority for the demonstration project was split
between the new Alcohol and Tobacco Tax and Trade Bureau (TTB)
and the Bureau of Alcohol, Tobacco, Firearms, and Explosives
(ATF) by direction of the Homeland Security Act. TTB has
received authorization to extend its pilot annually since
FY2004 through the appropriations process because of the
program's success and employee satisfaction. The program's
authority expired in October 2012 when the current continuing
resolution failed to include language extending it.
Section-by-Section
Section 1. Short title
This Act may be cited as the ``Alcohol and Tobacco Tax and
Trade Bureau Personnel Flexibilities Act.''
Section 2. Alcohol and Tobacco Tax and Trade Bureau
This section adds a new chapter to Title 5, U.S.C:
``Chapter 96--Alcohol and Tobacco Tax and Trade Bureau''.
It establishes a compensation and performance management
system using criteria the Secretary of the Treasury deems
appropriate for employees holding critical scientific,
technical, or professional positions within the Alcohol and
Tobacco Tax and Trade Bureau (TTB).
The total number of covered positions under this
compensation and performance management system may not exceed
the number equal to 50 percent of the total full time employees
within TTB.
The Secretary of the Treasury is required to consult with
the Director of the Office of Personnel Management (OPM) in
using the authority to establish this system. It does not
require agreement; it merely means TTB should share its plans
for continuing the demo with OPM as it moves forward, allowing
OPM the opportunity to comment as appropriate.
Nothing in this Act may provide for a waiver of employees'
rights as it relates to merit system principles. The system
established under this Act shall be consistent with collective
bargaining agreements and rights.
The Act also limits the level of compensation to ensure it
does not exceed level III of the Executive Schedule.
It requires managers have at least three levels of
performance review for employees.
Finally, it ensures that nothing in the Act would preclude
the Bureau from using an existing system that has already been
in effect so long as it complies with the requirements of this
Act.
The compensation and performance management system excludes
senior executives or an employee in the Senior Executive
Service.
Section 3. Study
This section requires the Government Accountability Office
to issue a report to Congress on the operation of the system
established in this Act, as well as the operation of ongoing
demonstration projects relating to a performance-based
compensation system no later than one year from enactment.
Explanation of Amendments
No amendments to H.R. 2067 were offered.
Committee Consideration
On May 22, 2013, the Committee met in open session and
ordered reported favorably the bill, H.R. 2067, by voice vote,
a quorum being present.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill establishes a compensation and performance management
system using criteria the Secretary of the Treasury deems
appropriate for employees holding critical scientific,
technical, or professional positions within the Alcohol and
Tobacco Tax and Trade Bureau (TTB). Legislative branch
employees and their families, to the extent that they are
otherwise eligible for the benefits provided by this
legislation, have equal access to its benefits.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Duplication of Federal Programs
No provision of H.R. 2067 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting H.R. 2067 does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the report include unfunded mandates.
In compliance with this requirement the Committee has received
a letter from the Congressional Budget Office included herein.
Earmark Identification
H.R. 2067 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of Rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2067. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 2067 from the Director of
Congressional Budget Office:
July 9, 2013.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Affairs and Government
Reform, House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2067, the Alcohol
and Tobacco Tax and Trade Bureau Personnel Flexibilities Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Santiago
Vallinas.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2067--Alcohol and Tobacco Tax and Trade Bureau Personnel
Flexibilities Act
Summary: H.R. 2067 would permanently authorize the
Secretary of the Treasury to establish a separate compensation
and performance management system for certain employees in
scientific, technical, or professional positions within the
Alcohol and Tobacco Tax and Trade Bureau (TBB). It also would
require the Government Accountability Office (GAO) to submit a
report to the Congress analyzing the effectiveness of the
system. CBO estimates that implementing this bill would cost
about $5 million over the 2014-2018 period, assuming
appropriations of the necessary amounts. Pay-as-you-go
procedures do not apply to this legislation because it would
not affect direct spending or revenues.
H.R. 2067 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2067 is shown in the following table.
The costs of this legislation fall within budget function 800
(general government).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 1 1 1 1 1 5
Estimated Outlays....................................... 1 1 1 1 1 5
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
2067 will be enacted late in 2013, and that appropriations will
be provided as estimated.
Currently, 123 employees at the TBB are under an
alternative pay system in which their yearly pay raises are
tied to their performance ratings. Those participants, who are
mostly chemists and auditors, are eligible to receive both
merit increases (until they reach the top of their pay band)
and bonuses. Authority for those employees to participate in
the performance-based system expires at the end of fiscal year
2013.
Based on information from the TBB, CBO anticipates that the
bureau would implement H.R. 2067 by making this existing system
permanent (rather than by creating a new performance-based pay
system). We also expect that the number of eligible employees
would remain roughly the same. Under the current performance-
based system, compensation would probably increase more quickly
than it would under the General Schedule, and many employees
could be paid bonuses in excess of what they would otherwise be
eligible to receive. As a result, based on information provided
by the TBB about the salaries of employees currently in the
performance-based system, CBO estimates that implementing H.R.
2067 would cost $5 million over the 2014-2018 period, assuming
appropriation of the necessary amounts.
The bill also would require GAO to submit a report, within
one year of the establishment of TBB's permanent compensation
system, that evaluates the system and other demonstration
projects. CBO estimates that that reporting requirement would
cost less than $500,000 in 2015.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 2067
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal costs: Santiago Vallinas;
Impact on state, local, and tribal governments: Elizabeth Cove
Delisle; Impact on the private sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) 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 (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
Chap. Sec.
* * * * * * *
Subpart I--Miscellaneous
Personnel flexibilities relating to the Internal Revenue Servi9501
9601Alcohol and Tobacco Tax and Trade Bureau..........................
* * * * * * *
SUBPART I--MISCELLANEOUS
* * * * * * *
CHAPTER 96--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU
9601. Definitions; applicability.
9602. Compensation and performance management system.
Sec. 9601. Definitions; applicability
(a) Definitions.--For purposes of this chapter--
(1) the term ``Secretary'' means the Secretary of the
Treasury;
(2) the term ``Bureau'' means the Alcohol and Tobacco
Tax and Trade Bureau, Department of the Treasury; and
(3) the terms ``senior executive'' and ``Senior
Executive Service position'' have the respective
meanings given them in section 3132(a).
(b) Applicability.--A compensation and performance management
system established under section 9602 shall not cover, and
nothing in any such system shall be considered to apply with
respect to, a senior executive or a Senior Executive Service
position.
Sec. 9602. Compensation and performance management system
(a) Establishment.--
(1) In general.--The Secretary shall establish a
system, applying such criteria and procedures as the
Secretary considers appropriate, which shall govern the
compensation and performance management of any number
of employees holding critical scientific, technical, or
professional positions in the Bureau.
(2) Authority.--Subject to the provisions of this
chapter--
(A) the establishment of a compensation and
performance management system under this
section shall not be limited by any lack of
specific authority under this title to take the
action contemplated, or by any provision of
this title or any rule or regulation prescribed
under this title which is inconsistent with the
action; and
(B) the total number of positions covered by
the system or systems established under
authority of this section (determined on a
full-time equivalent basis) may not at any time
exceed the number equal to 50 percent of the
total number of positions within the Bureau (so
determined).
(3) Consultation.--The Secretary shall consult with
the Director of the Office of Personnel Management in
the exercise of any authority under this section.
(b) Nonwaivable Provisions; Collaboration.--A compensation
and performance management system established under this
section--
(1) may not provide for a waiver of any provision of
law, rule, or regulation identified in section 4703(c);
and
(2) shall be established and implemented in a manner
consistent with subsections (f) and (g) of section
4703.
(c) Limitations on Compensation.--Except as otherwise
provided by law--
(1) no employee compensated under a system
established under this section may be paid at a rate of
basic pay in excess of the rate payable for level III
of the Executive Schedule under section 5314; and
(2) total payments made to employees under a system
so established shall be subject to any limitation on
payments under section 5307, to the same extent and in
the same manner as would apply in the case of employees
paid under section 5376.
(d) Levels of Performance.--A system established under this
section shall have not less than 2 levels of performance above
a retention standard.
(e) Disclosure of Information.--The Secretary of the
Treasury, on request of the Director of the Office of Personnel
Management, shall furnish information relating to the operation
of any compensation and performance management system
established under this section.