5 U.S.C. § 4703 — Demonstration projects

Page 497 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 4703 Editorial Notes AMENDMENTS 2008—Subsec. (a)(1)(B). Pub. L. 110–417 substituted ‘‘National Geospatial-Intelligence Agency’’ for ‘‘Na- tional Imagery and Mapping Agency’’. 2004—Subsec. (a)(1)(C). Pub. L. 108–271 substituted ‘‘Government Accountability Office’’ for ‘‘General Ac- counting Office’’. 1996—Subsec. (a)(1)(B). Pub. L. 104–201 substituted ‘‘National Imagery and Mapping Agency’’ for ‘‘Central Imagery Office’’. 1994—Subsec. (a)(1)(B). Pub. L. 103–359 inserted ‘‘the Central Imagery Office,’’ after ‘‘Defense Intelligence Agency,’’. 1990—Subsec. (a)(1). Pub. L. 101–474 struck out ‘‘, the Administrative Office of the United States Courts,’’ after ‘‘means an Executive agency’’. 1979—Subsec. (b). Pub. L. 96–54 substituted ‘‘chapter’’ for ‘‘subchapter’’ and ‘‘28 U.S.C. 509’’ for ‘‘5 U.S.C. 5108’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Government Publishing Office’’ substituted for ‘‘Government Printing Office’’ in subsec. (a)(1) on au- thority of section 1301(b) of Pub. L. 113–235, set out as a note preceding section 301 of Title 44, Public Printing and Documents. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–201 effective Oct. 1, 1996, see section 1124 of Pub. L. 104–201, set out as a note under section 193 of Title 10, Armed Forces. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–54 effective July 12, 1979, see section 2(b) of Pub. L. 96–54, set out as a note under section 305 of this title. EFFECTIVE DATE Section effective 90 days after Oct. 13, 1978, see sec- tion 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS Pub. L. 108–136, div. A, title XI, § 1126, Nov. 24, 2003, 117 Stat. 1640, provided that: ‘‘A pay-for-performance sys- tem may not be initiated under chapter 47 of title 5, United States Code, after the date of the enactment of this Act [Nov. 24, 2003], unless it incorporates the fol- lowing elements: ‘‘(1) Adherence to merit principles set forth in sec- tion 2301 of such title. ‘‘(2) A fair, credible, and transparent employee per- formance appraisal system. ‘‘(3) A link between elements of the pay-for-per- formance system, the employee performance ap- praisal system, and the agency’s strategic plan. ‘‘(4) A means for ensuring employee involvement in the design and implementation of the system. ‘‘(5) Adequate training and retraining for super- visors, managers, and employees in the implementa- tion and operation of the pay-for-performance sys- tem. ‘‘(6) A process for ensuring ongoing performance feedback and dialogue between supervisors, man- agers, and employees throughout the appraisal pe- riod, and setting timetables for review. ‘‘(7) Effective safeguards to ensure that the man- agement of the system is fair and equitable and based on employee performance. ‘‘(8) A means for ensuring that adequate agency re- sources are allocated for the design, implementation, and administration of the pay-for-performance sys- tem.’’ § 4702. Research programs The Office of Personnel Management shall— (1) establish and maintain (and assist in the establishment and maintenance of) research programs to study improved methods and technologies in Federal personnel manage- ment; (2) evaluate the research programs estab- lished under paragraph (1) of this section; (3) establish and maintain a program for the collection and public dissemination of infor- mation relating to personnel management re- search and for encouraging and facilitating the exchange of information among interested persons and entities; and (4) carry out the preceding functions di- rectly or through agreement or contract. (Added Pub. L. 95–454, title VI, § 601(a), Oct. 13, 1978, 92 Stat. 1185.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 90 days after Oct. 13, 1978, see sec- tion 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title. § 4703. Demonstration projects (a) Except as provided in this section, the Of- fice of Personnel Management may, directly or through agreement or contract with one or more agencies and other public and private organiza- tions, conduct and evaluate demonstration projects. Subject to the provisions of this sec- tion, the conducting of demonstration projects shall not be limited by any lack of specific au- thority under this title to take the action con- templated, or by any provision of this title or any rule or regulation prescribed under this title which is inconsistent with the action, in- cluding any law or regulation relating to— (1) the methods of establishing qualification requirements for, recruitment for, and ap- pointment to positions; (2) the methods of classifying positions and compensating employees; (3) the methods of assigning, reassigning, or promoting employees; (4) the methods of disciplining employees; (5) the methods of providing incentives to employees, including the provision of group or individual incentive bonuses or pay; (6) the hours of work per day or per week; (7) the methods of involving employees, labor organizations, and employee organiza- tions in personnel decisions; and (8) the methods of reducing overall agency staff and grade levels. (b) Before conducting or entering into any agreement or contract to conduct a demonstra- tion project, the Office shall— (1) develop a plan for such project which identifies— (A) the purposes of the project; (B) the types of employees or eligibles, categorized by occupational series, grade, or organizational unit; (C) the number of employees or eligibles to be included, in the aggregate and by cat- egory; Page 498 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 4703 1 So in original. Probably should be ‘‘of’’. (D) the methodology; (E) the duration; (F) the training to be provided; (G) the anticipated costs; (H) the methodology and criteria for eval- uation; (I) a specific description of any aspect of the project for which there is a lack of spe- cific authority; and (J) a specific citation to any provision of law, rule, or regulation which, if not waived under this section, would prohibit the con- ducting of the project, or any part of the project as proposed; (2) publish the plan in the Federal Register; (3) submit the plan so published to public hearing; (4) provide notification of the proposed proj- ect, at least 180 days in advance of the date any project proposed under this section is to take effect— (A) to employees who are likely to be af- fected by the project; and (B) to each House of the Congress; (5) obtain approval from each agency in- volved of the final version of the plan; and (6) provide each House of the Congress with a report at least 90 days in advance of the date the project is to take effect setting forth the final version of the plan as so approved. (c) No demonstration project under this sec- tion may provide for a waiver of— (1) any provision of chapter 63 or subpart G of this title; (2)(A) any provision of law referred to in sec- tion 2302(b)(1) of this title; or (B) any provision of law implementing any provision of law referred to in section 2302(b)(1) of this title by— (i) providing for equal employment oppor- tunity through affirmative action; or (ii) providing any right or remedy avail- able to any employee or applicant for em- ployment in the civil service; (3) any provision of chapter 15 or subchapter III of chapter 73 of this title; (4) any rule or regulation prescribed under any provision of law referred to in paragraph (1), (2), or (3) of this subsection; or (5) any provision of chapter 23 of this title, or any rule or regulation prescribed under this title, if such waiver is inconsistent with any merit system principle or any provision there- of relating to prohibited personnel practices. (d)(1) Each demonstration project shall— (A) involve not more than 5,000 individuals other than individuals in any control groups necessary to validate the results of the proj- ect; and (B) terminate before the end of the 5-year period beginning on the date on which the project takes effect, except that the project may continue beyond the date to the extent necessary to validate the results of the proj- ect. (2)(A) Except as provided in subparagraph (B), not more than 10 active demonstration projects may be in effect at any time. (B) Any demonstration project authorized under this section that is active for a period greater than 10 years shall not count for pur- poses of applying the limitation in subparagraph (A). (e) Subject to the terms of any written agree- ment or contract between the Office and an agency, a demonstration project involving the agency may be terminated by the Office, or the agency, if either determines that the project creates a substantial hardship on, or is not in the best interests of, the public, the Federal Government, employees, or eligibles. (f) Employees within a unit with respect to which a labor organization is accorded exclusive recognition under chapter 71 of this title shall not be included within any project under sub- section (a) of this section— (1) if the project would violate a collective bargaining agreement (as defined in section 7103(8) of this title) between the agency and the labor organization, unless there is another written agreement with respect to the project between the agency and the organization per- mitting the inclusion; or (2) if the project is not covered by such a col- lective bargaining agreement, until there has been consultation or negotiation, as appro- priate, by the agency with the labor organiza- tion. (g) Employees within any unit with respect to which a labor organization has not been ac- corded exclusive recognition under chapter 71 of this title shall not be included within any proj- ect under subsection (a) of this section unless there has been agency consultation regarding the project with the employees in the unit. (h) The Office shall provide for an evaluation of the results of each demonstration project and its impact on improving public management. (i) Upon request of the Director of the Office of Personnel Management, agencies shall cooper- ate with and assist the Office, to the extent practicable, in any evaluation undertaken under subsection (h) of this section and provide the Of- fice with requested information and reports re- lating to the conducting of demonstration projects in their respective agencies. (j) Each agency at which a demonstration project authorized by this section is ongoing shall submit an annual report to the Office of Personnel Management, the Office and 1 Manage- ment and Budget, the Committee on Homeland Security and Governmental Affairs of the United States Senate, and the Committee on Oversight and Government Reform of the United States House of Representatives that includes— (1) the aggregate performance appraisal rat- ings and compensation costs for employees under a demonstration project; (2) an assessment of the results of the dem- onstration project, including its impact on mission goals, employee recruitment, reten- tion, and satisfaction, and which may include the results of the survey authorized under sec- tion 1128 of the National Defense Authoriza- tion Act for Fiscal Year 2004 (Public Law 108–136; 5 U.S.C. 7101 note), commonly referred Page 499 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 4802 to as the Federal Employee Viewpoint Survey, and performance management for employees; and (3) a comparison of the items listed in (1) and (2) with employees not covered by the demonstration project. (Added Pub. L. 95–454, title VI, § 601(a), Oct. 13, 1978, 92 Stat. 1186; amended Pub. L. 115–232, div. A, title XI, § 1106, Aug. 13, 2018, 132 Stat. 2001.) Editorial Notes AMENDMENTS 2018—Subsec. (d)(2). Pub. L. 115–232, § 1106(1), added par. (2) and struck out former par. (2) which read as fol- lows: ‘‘Not more than 10 active demonstration projects may be in effect at any time.’’ Subsec. (j). Pub. L. 115–232, § 1106(2), added subsec. (j). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Con- gress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representa- tives by House Resolution No. 5, One Hundred Eight- eenth Congress, Jan. 9, 2023. EFFECTIVE DATE Section effective 90 days after Oct. 13, 1978, see sec- tion 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title. AUTHORITY OF EXPORT-IMPORT BANK TO CONDUCT DEMONSTRATION PROGRAM Pub. L. 104–97, § 2, Jan. 11, 1996, 109 Stat. 984, provided that: ‘‘Notwithstanding section 4701(a)(1)(A) of title 5, United States Code, the Export-Import Bank of the United States may conduct a demonstration project in accordance with section 4703 of such title.’’ § 4704. Allocation of funds Funds appropriated to the Office of Personnel Management for the purpose of this chapter may be allocated by the Office to any agency con- ducting demonstration projects or assisting the Office in conducting such projects. Funds so al- located shall remain available for such period as may be specified in appropriation Acts. No con- tract shall be entered into under this chapter unless the contract has been provided for in ad- vance in appropriation Acts. (Added Pub. L. 95–454, title VI, § 601(a), Oct. 13, 1978, 92 Stat. 1188.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 90 days after Oct. 13, 1978, see sec- tion 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title. § 4705. Regulations The Office of Personnel Management shall pre- scribe regulations to carry out the purpose of this chapter. (Added Pub. L. 95–454, title VI, § 601(a), Oct. 13, 1978, 92 Stat. 1188, § 4706; renumbered § 4705, Pub. L. 105–362, title XIII, § 1302(b)(2)(B)(i), Nov. 10, 1998, 112 Stat. 3293.) Editorial Notes PRIOR PROVISIONS A prior section 4705, added Pub. L. 95–454, title VI, § 601(a), Oct. 13, 1978, 92 Stat. 1188, required annual re- port on research programs and demonstration projects, prior to repeal by Pub. L. 105–362, title XIII, § 1302(b)(2)(B)(i), Nov. 10, 1998, 112 Stat. 3293. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 90 days after Oct. 13, 1978, see sec- tion 907 of Pub. L. 95–454, set out as an Effective Date of 1978 Amendment note under section 1101 of this title. [§ 4706. Renumbered § 4705] CHAPTER 48—AGENCY PERSONNEL DEMONSTRATION PROJECT Sec. 4801. Nonapplicability of chapter 47. 4802. Securities and Exchange Commission. § 4801. Nonapplicability of chapter 47 Chapter 47 shall not apply to this chapter. (Added Pub. L. 107–123, § 8(a), Jan. 16, 2002, 115 Stat. 2398.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 2001, see section 11 of Pub. L. 107–123, set out as an Effective Date of 2002 Amendment note under section 78ee of Title 15, Commerce and Trade. § 4802. Securities and Exchange Commission (a) In this section, the term ‘‘Commission’’ means the Securities and Exchange Commission. (b) The Commission may appoint and fix the compensation of such officers, attorneys, econo- mists, examiners, and other employees as may be necessary for carrying out its functions under the securities laws as defined under section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c). (c) Rates of basic pay for all employees of the Commission may be set and adjusted by the Commission without regard to the provisions of chapter 51 or subchapter III of chapter 53. (d) The Commission may provide additional compensation and benefits to employees of the Commission if the same type of compensation or benefits are then being provided by any agency referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforce- ment Act of 1989 (12 U.S.C. 1833b) or, if not then being provided, could be provided by such an agency under applicable provisions of law, rule, or regulation. In setting and adjusting the total amount of compensation and benefits for em- ployees, the Commission shall consult with, and seek to maintain comparability with, the agen- cies referred to under section 1206 of the Finan- cial Institutions Reform, Recovery, and Enforce- ment Act of 1989 (12 U.S.C. 1833b). (e) The Commission shall consult with the Of- fice of Personnel Management in the implemen- tation of this section.