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104th Congress                                            Rept. 104-820
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
          PRESIDENTIAL AND EXECUTIVE OFFICE ACCOUNTABILITY ACT

                                _______
                                

               September 24, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Clinger, from the Committee on Government Reform and Oversight, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3452]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Government Reform and Oversight, to whom was 
referred the bill (H.R. 3452) to make certain laws applicable 
to the Executive Office of the President, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
  I.  Background and Need for the Legislation........................15
 II.  Legislative Hearings and Committee Actions.....................23
III.  Committee Hearings and Written Testimony.......................24
 IV.  Explanation of the Bill........................................26
  V.  Compliance with Rule XI........................................39
 VI.  Budget Analysis and Projections................................39
VII.  Cost Estimate of the Congressional Budget Office...............39
VIII. Inflationary Impact Statement..................................44

 IX.  Changes in Existing Law........................................44
  X.  Committee Recommendation.......................................64
 XI.  Congressional Accountability Act: Public Law 104-1.............64
XII.  Additional Views...............................................65
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Presidential and 
Executive Office Accountability Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Extension of certain rights and protections to presidential 
offices.
Sec. 3. Financial officers within the Executive Office of the 
President.
Sec. 4. Amendment to definition of ``special government employee''.
Sec. 5. Applicability of future employment laws.
Sec. 6. Repeal of section 320 of the Government Employee Rights Act of 
1991.
Sec. 7. Political affiliation.
Sec. 8. Establishment of Inspector General for Executive Office of the 
President.

SEC. 2. EXTENSION OF CERTAIN RIGHTS AND PROTECTIONS TO PRESIDENTIAL 
                    OFFICES.

  (a) In General.--Title 3, United States Code, is amended by adding at 
the end the following:

      ``CHAPTER 5--EXTENSION OF CERTAIN RIGHTS AND PROTECTIONS TO 
                          PRESIDENTIAL OFFICES

                   ``SUBCHAPTER I--GENERAL PROVISIONS

        ``Sec.
        ``401. Definitions.
        ``402. Application of laws.

          ``SUBCHAPTER II--EXTENSION OF RIGHTS AND PROTECTIONS

  ``Part A--Employment Discrimination, Family and Medical Leave, Fair 
 Labor Standards, Employee Polygraph Protection, Worker Adjustment and 
 Retraining, Employment and Reemployment of Veterans, and Intimidation

        ``411. Rights and protections under title VII of the Civil 
                        Rights Act of 1964, the Age Discrimination in 
                        Employment Act of 1967, the Rehabilitation Act 
                        of 1973, and title I of the Americans with 
                        Disabilities Act of 1990.
        ``412. Rights and protections under the Family and Medical 
                        Leave Act of 1993.
        ``413. Rights and protections under the Fair Labor Standards 
                        Act of 1938.
        ``414. Rights and protections under the Employee Polygraph 
                        Protection Act of 1988.
        ``415. Rights and protections under the Worker Adjustment and 
                        Retraining Notification Act.
        ``416. Rights and protections relating to veterans' employment 
                        and reemployment.
        ``417. Prohibition of intimidation or reprisal.

      ``Part B--Public Access Provisions Under the Americans With 
                        Disabilities Act of 1990

        ``420. Rights and protections under the Americans with 
                        Disabilities Act of 1990.

          ``Part C--Occupational Safety and Health Act of 1970

        ``425. Rights and protections under the Occupational Safety and 
                        Health Act of 1970; procedures for remedy of 
                        violations.

                  ``Part D--Labor-Management Relations

        ``430. Application of chapter 71 of title 5, relating to 
                        Federal service labor-management relations; 
                        procedures for remedy of violations.

                           ``Part E--General

        ``435. Generally applicable remedies and limitations.

   ``SUBCHAPTER III--ADMINISTRATIVE AND JUDICIAL DISPUTE-RESOLUTION 
                               PROCEDURES

        ``451. Procedure for consideration of alleged violations.
        ``452. Counseling and mediation.
        ``453. Election of proceeding.
        ``454. Appropriate agencies.
        ``455. Judicial review.
        ``456. Civil action.
        ``457. Judicial review of regulations.
        ``458. Other judicial review prohibited.
        ``459. Effect of failure to issue regulations.
        ``460. Expedited review of certain appeals.
        ``461. Payments.
        ``462. Confidentiality.
        ``463. Definitions.

                    ``SUBCHAPTER IV--EFFECTIVE DATE

        ``471. Effective date.

                   ``Subchapter I--General Provisions

``SEC. 401. DEFINITIONS.

  ``Except as otherwise specifically provided in this chapter, as used 
in this chapter:
          ``(1) Board.--The term `Board' means the Merit Systems 
        Protection Board under chapter 12 of title 5.
          ``(2) Covered employee.--The term `covered employee' means 
        any employee of an employing office.
          ``(3) Employee.--The term `employee' includes an applicant 
        for employment and a former employee.
          ``(4) Employing office.--The term `employing office' means--
                  ``(A) each office, agency, or other component of the 
                Executive Office of the President;
                  ``(B) the Executive Residence at the White House; and
                  ``(C) the official residence (temporary or otherwise) 
                of the Vice President.

``SEC. 402. APPLICATION OF LAWS.

  ``The following laws shall apply, as prescribed by this chapter, to 
all employing offices (including employing offices within the meaning 
of section 411, to the extent prescribed therein):
          ``(1) The Fair Labor Standards Act of 1938.
          ``(2) Title VII of the Civil Rights Act of 1964.
          ``(3) The Americans with Disabilities Act of 1990.
          ``(4) The Age Discrimination in Employment Act of 1967.
          ``(5) The Family and Medical Leave Act of 1993.
          ``(6) The Occupational Safety and Health Act of 1970.
          ``(7) Chapter 71 (relating to Federal service labor-
        management relations) of title 5.
          ``(8) The Employee Polygraph Protection Act of 1988.
          ``(9) The Worker Adjustment and Retraining Notification Act.
          ``(10) The Rehabilitation Act of 1973.
          ``(11) Chapter 43 (relating to veterans' employment and 
        reemployment) of title 38.

          ``Subchapter II--Extension of Rights and Protections

  ``PART A--EMPLOYMENT DISCRIMINATION, FAMILY AND MEDICAL LEAVE, FAIR 
 LABOR STANDARDS, EMPLOYEE POLYGRAPH PROTECTION, WORKER ADJUSTMENT AND 
 RETRAINING, EMPLOYMENT AND REEMPLOYMENT OF VETERANS, AND INTIMIDATION

``SEC. 411. RIGHTS AND PROTECTIONS UNDER TITLE VII OF THE CIVIL RIGHTS 
                    ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT 
                    ACT OF 1967, THE REHABILITATION ACT OF 1973, AND 
                    TITLE I OF THE AMERICANS WITH DISABILITIES ACT OF 
                    1990.

  ``(a) Discriminatory Practices Prohibited.--All personnel actions 
affecting covered employees shall be made free from any discrimination 
based on--
          ``(1) race, color, religion, sex, or national origin, within 
        the meaning of section 703 of the Civil Rights Act of 1964;
          ``(2) age, within the meaning of section 15 of the Age 
        Discrimination in Employment Act of 1967; or
          ``(3) disability, within the meaning of section 501 of the 
        Rehabilitation Act of 1973 and sections 102 through 104 of the 
        Americans with Disabilities Act of 1990.
  ``(b) Remedy.--
          ``(1) Civil rights.--The remedy for a violation of subsection 
        (a)(1) shall be--
                  ``(A) such damages as would be appropriate if awarded 
                under section 706(g) of the Civil Rights Act of 1964; 
                and
                  ``(B) such compensatory damages as would be 
                appropriate if awarded under section 1977 of the 
                Revised Statutes, or as would be appropriate if awarded 
                under sections 1977A(a)(1), 1977A(b)(2), and, 
                irrespective of the size of the employing office, 
                1977A(b)(3)(D) of the Revised Statutes.
          ``(2) Age discrimination.--The remedy for a violation of 
        subsection (a)(2) shall be--
                  ``(A) such damages as would be appropriate if awarded 
                under section 15(c) of the Age Discrimination in 
                Employment Act of 1967; and
                  ``(B) such liquidated damages as would be appropriate 
                if awarded under section 7(b) of such Act.
        In addition, the waiver provisions of section 7(f) of such Act 
        shall apply to covered employees.
          ``(3) Disabilities discrimination.--The remedy for a 
        violation of subsection (a)(3) shall be--
                  ``(A) such damages as would be appropriate if awarded 
                under section 505(a)(1) of the Rehabilitation Act of 
                1973 or section 107(a) of the Americans with 
                Disabilities Act of 1990; and
                  ``(B) such compensatory damages as would be 
                appropriate if awarded under sections 1977A(a)(2), 
                1977A(a)(3), 1977A(b)(2), and, irrespective of the size 
                of the employing office, 1977A(b)(3)(D) of the Revised 
                Statutes.
  ``(c) Definitions.--Except as otherwise specifically provided in this 
section, as used in this section:
          ``(1) Covered employee.--The term `covered employee' means 
        any employee of a unit of the executive branch, including the 
        Executive Office of thePresident, whether appointed by the 
President or by any other appointing authority in the executive branch, 
who is not otherwise entitled to bring an action under any of the 
statutes referred to in subsection (a), but does not include any 
individual--
                  ``(A) whose appointment is made by and with the 
                advice and consent of the Senate;
                  ``(B) who is appointed to an advisory committee, as 
                defined in section 3(2) of the Federal Advisory 
                Committee Act; or
                  ``(C) who is a member of the uniformed services.
          ``(2) Employing office.--The term `employing office', with 
        respect to a covered employee, means the office, agency, or 
        other entity in which the covered employee is employed (or 
        sought employment or was employed in the case of an applicant 
        or former employee, respectively).
  ``(d) Applicability.--Subsections (a) through (c), and section 417 
(to the extent that it relates to any matter under this section), shall 
apply with respect to violations occurring on or after the effective 
date of this chapter.

``SEC. 412. RIGHTS AND PROTECTIONS UNDER THE FAMILY AND MEDICAL LEAVE 
                    ACT OF 1993.

  ``(a) Family and Medical Leave Rights and Protections Provided.--
          ``(1) In general.--The rights and protections established by 
        sections 101 through 105 of the Family and Medical Leave Act of 
        1993 shall apply to covered employees.
          ``(2) Definitions.--For purposes of the application described 
        in paragraph (1)--
                  ``(A) the term `employer' as used in the Family and 
                Medical Leave Act of 1993 means any employing office; 
                and
                  ``(B) the term `eligible employee' as used in the 
                Family and Medical Leave Act of 1993 means a covered 
                employee who has been employed in any employing office 
                for 12 months and for at least 1,250 hours of 
                employment during the previous 12 months.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such damages, including liquidated damages, as would be appropriateif 
awarded under paragraph (1) of section 107(a) of the Family and Medical 
Leave Act of 1993.

``SEC. 413. RIGHTS AND PROTECTIONS UNDER THE FAIR LABOR STANDARDS ACT 
                    OF 1938.

  ``(a) Fair Labor Standards.--
          ``(1) In general.--The rights and protections established by 
        subsections (a)(1) and (d) of section 6, section 7, and section 
        12(c) of the Fair Labor Standards Act of 1938 shall apply to 
        covered employees.
          ``(2) Interns and volunteers.--For the purposes of this 
        section, the term `covered employee' does not include an intern 
        or a volunteer as defined in regulations under subsection (c).
          ``(3) Compensatory time.--Except as provided in regulations 
        under subsection (c)(3), covered employees may not receive 
        compensatory time in lieu of overtime compensation.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such damages, including liquidated damages, as would be appropriate if 
awarded under section 16(b) of the Fair Labor Standards Act of 1938.
  ``(c) Regulations To Implement Section.--
          ``(1) In general.--The President shall issue regulations to 
        implement this section.
          ``(2) Agency regulations.--Except as provided in paragraph 
        (3), the regulations issued under paragraph (1) shall be the 
        same as substantive regulations promulgated by the Secretary of 
        Labor to implement the statutory provisions referred to in 
        subsection (a) except insofar as the President may determine, 
        for good cause shown and stated together with the regulation, 
        that a modification of such regulations would be more effective 
        for the implementation of the rights and protections under this 
        section.
          ``(3) Irregular work schedules.--The President shall issue 
        regulations for covered employees whose work schedules directly 
        depend on the schedule of the President or the Vice President 
        that shall be comparable to the provisions in the Fair Labor 
        Standards Act of 1938 that apply to employees who have 
        irregular work schedules.

``SEC. 414. RIGHTS AND PROTECTIONS UNDER THE EMPLOYEE POLYGRAPH 
                    PROTECTION ACT OF 1988.

  ``(a) Polygraph Practices Prohibited.--No employing office may 
require a covered employee to take a lie detector test where such a 
test would be prohibited if required by an employer under paragraph 
(1), (2), or (3) of section 3 of the Employee Polygraph Protection Act 
of 1988. In addition, the waiver provisions of section 6(d) of such Act 
shall apply to covered employees.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such damages as would be appropriate if awarded under section 6(c)(1) 
of the Employee Polygraph Protection Act of 1988.
  ``(c) Regulations To Implement Section.--
          ``(1) In general.--The President shall issue regulations to 
        implement this section.
          ``(2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive regulations 
        promulgated by the Secretary of Labor to implement the 
        statutory provisions referred to in subsections (a) and (b) 
        except insofar as the President may determine, for good cause 
        shown and stated together with the regulation, that a 
        modification of such regulations would be more effective for 
        the implementation of the rights and protections under this 
        section.

``SEC. 415. RIGHTS AND PROTECTIONS UNDER THE WORKER ADJUSTMENT AND 
                    RETRAINING NOTIFICATION ACT.

  ``(a) Worker Adjustment and Retraining Notification Rights.--
          ``(1) In general.--Except as provided in paragraph (2), no 
        employing office shall be closed or mass layoff ordered within 
        the meaning of section 3 of the Worker Adjustment and 
        Retraining Notification Act until the end of a 60-day period 
        after the employing office serves written notice of such 
        prospective closing or layoff to representatives of covered 
        employees or, if there are no representatives, to covered 
        employees.
          ``(2) Exception.--
                  ``(A) In general.--In the event that a President 
                (hereinafter in this paragraph referred to as the 
                `previous President') does not succeed himself in 
                office as a result of the election of a new President, 
                no notice or waiting period shall be required under 
                paragraph (1) with respect to the separation of any 
                individual described in subparagraph (B), if such 
                separation occurs pursuant to a closure or mass layoff 
                ordered after the term of the new President commences.
                  ``(B) Description of individuals.--An individual 
                described in this subparagraph is any covered employee 
                serving pursuant to an appointment made during--
                          ``(i) the term of office of the previous 
                        President; or
                          ``(ii) any term, earlier than the term 
                        referred to in clause (i), during which such 
                        previous President served as President or Vice 
                        President.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such damages as would be appropriate if awarded under paragraphs (1), 
(2), and (4) of section 5(a) of the Worker Adjustment and Retraining 
Notification Act.
  ``(c) Regulations To Implement Section.--
          ``(1) In general.--The President shall issue regulations to 
        implement this section.
          ``(2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive regulations 
        promulgated by the Secretary of Labor to implement the 
        statutory provisions referred to in subsection (a) except 
        insofar as the President may determine, for good cause shown 
        and stated together with the regulation, that a modification of 
        such regulations would be more effective for the implementation 
        of the rights and protections under this section.

``SEC. 416. RIGHTS AND PROTECTIONS RELATING TO VETERANS' EMPLOYMENT AND 
                    REEMPLOYMENT.

  ``(a) Employment and Reemployment Rights of Members of the Uniformed 
Services.--
          ``(1) In general.--It shall be unlawful for an employing 
        office to--
                  ``(A) discriminate, within the meaning of subsections 
                (a) and (b) of section 4311 of title 38, against an 
                eligible employee;
                  ``(B) deny to an eligible employee reemployment 
                rights within the meaning of sections 4312 and 4313 of 
                title 38; or
                  ``(C) deny to an eligible employee benefits within 
                the meaning of sections 4316, 4317, and 4318 of title 
                38.
          ``(2) Definition.--For purposes of this section, the term 
        `eligible employee' means a covered employee performing service 
        in the uniformed services, within the meaning of section 
        4303(13) of title 38, whose service has not been terminated 
        upon the occurrence of any of the events enumerated in section 
        4304 of such title.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such damages as would be appropriate if awarded under paragraphs (1) 
and (2)(A) of section 4323(c) of title 38.
  ``(c) Regulations To Implement Section.--
          ``(1) In general.--The President shall issue regulations to 
        implement this section.
          ``(2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive regulations 
        promulgated by the Secretary of Labor to implement the 
        statutory provisions referred to in subsection (a) except to 
        the extent that the President may determine, for good cause 
        shown and stated together with the regulation, that a 
        modification of such regulations would be more effective for 
        the implementation of the rights and protections under this 
        section.

``SEC. 417. PROHIBITION OF INTIMIDATION OR REPRISAL.

  ``(a) In General.--It shall be unlawful for an employing office to 
intimidate, take reprisal against, or otherwise discriminate against, 
any covered employee because the covered employee has opposed any 
practice made unlawful by this chapter, or because the covered employee 
has initiated proceedings, made a charge, or testified, assisted, or 
participated in any manner in a hearing or other proceeding under this 
chapter.
  ``(b) Remedy.--A violation of subsection (a) may be remedied by any 
legal remedy available to redress the practice opposed by the covered 
employee or other violation of law as to which the covered employee 
initiated proceedings, made a charge, or engaged in other conduct 
protected under subsection (a).
  ``(c) Definitions.--For purposes of applying this section with 
respect to any practice or other matter to which section 411 relates, 
the terms `employing office' and `covered employee' shall each be 
considered to have the meaning given to it by such section.

      ``PART B--PUBLIC ACCESS PROVISIONS UNDER THE AMERICANS WITH 
                        DISABILITIES ACT OF 1990

``SEC. 420. RIGHTS AND PROTECTIONS UNDER THE AMERICANS WITH 
                    DISABILITIES ACT OF 1990.

  ``(a) Rights and Protections.--The rights and protections against 
discrimination in the provision of public services and accommodations 
established by sections 201, 202, and 204, and sections 302, 303, and 
309, of the Americans with Disabilities Act of 1990 shall apply, to the 
extent that public services, programs, or activities are provided, with 
respect to the White House and its appurtenant grounds and gardens, the 
Old Executive Office Building, the New Executive Office Buildings, and 
any other facility to the extent that offices are provided for 
employees of the Executive Office of the President.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
such remedy as would be appropriate if awarded under sections 203 or 
308 of the Americans with Disabilities Act of 1990, as the case may be, 
except that, with respect to any claim of employment discrimination, 
the exclusive remedy shall be under section 411 of this title. A remedy 
under the preceding sentence shall be enforced in accordance with 
applicable provisions of such sections 203 or 308, as the case may be.
  ``(c) Definition.--For purposes of the application under this section 
of the Americans with Disabilities Act of 1990, the term `public 
entity' as used in such Act, means, to the extent that public services, 
programs, or activities are provided, the White House and its 
appurtenant grounds and gardens, the Old Executive Office Building, the 
New Executive Office Buildings, and any other facility to the extent 
that offices are provided for employees of the Executive Office of the 
President.

          ``PART C--OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970

``SEC. 425. RIGHTS AND PROTECTIONS UNDER THE OCCUPATIONAL SAFETY AND 
                    HEALTH ACT OF 1970; PROCEDURES FOR REMEDY OF 
                    VIOLATIONS.

  ``(a) Occupational Safety and Health Protections.--
          ``(1) In general.--Each employing office and each covered 
        employee shall comply with the provisions of section 5 of the 
        Occupational Safety and Health Act of 1970.
          ``(2) Definitions.--For purposes of the application under 
        this section of the Occupational Safety and Health Act of 
        1970--
                  ``(A) the term `employer' as used in such Act means 
                an employing office; and
                  ``(B) the term `employee' as used in such Act means a 
                covered employee.
  ``(b) Remedy.--The remedy for a violation of subsection (a) shall be 
an order to correct the violation, including such order as would be 
appropriate if issued under section 13(a) of the Occupational Safety 
and Health Act of 1970.
  ``(c) Procedures.--
          ``(1) Requests for inspections.--Upon written request of any 
        employing office or covered employee, the Secretary of Labor 
        shall have the authority to inspect and investigate places of 
        employment under the jurisdiction of employing offices in 
        accordance with subsections (a), (d), (e), and (f) of section 8 
        of the Occupational Safety and Health Act of 1970.
          ``(2) Citations, notices, and notifications.--The Secretary 
        of Labor shall have the authority, in accordance with sections 
        9 and 10 of the Occupational Safety and Health Act of 1970, to 
        issue--
                  ``(A) a citation or notice to any employing office 
                responsible for correcting a violation of subsection 
                (a); or
                  ``(B) a notification to any employing office that the 
                Secretary of Labor believes has failed to correct a 
                violation for which a citation has been issued within 
                the period permitted for its correction.
          ``(3) Hearings and review.--If after issuing a citation or 
        notification, the Secretary of Labor determines that a 
        violation has not been corrected--
                  ``(A) the citation and notification shall be deemed a 
                final order (within the meaning of section 10(b) of the 
                Occupational Safety and Health Act of 1970) if the 
                employer fails to notify the Secretary of Labor within 
                15 days (excluding Saturdays, Sundays, and Federal 
                holidays) after receipt of the notice that he intends 
                to contest the citation or notification; or
                  ``(B) opportunity for a hearing before the 
                Occupational Safety and Health Review Commission shall 
                be afforded in accordance with section 10(c) of the 
                Occupational Safety and Health Act of 1970, if the 
                employer gives timely notice to the Secretary that he 
                intends to contest the citation or notification.
          ``(4) Variance procedures.--An employing office may request 
        from the Secretary of Labor an order granting a variance from a 
        standard made applicable by this section, in accordance with 
        sections 6(b)(6) and 6(d) of the Occupational Safety and Health 
        Act of 1970.
          ``(5) Judicial review.--Any person or employing office 
        aggrieved by a final decision of the Occupational Safety and 
        Health Review Commission under paragraph (3) or the Secretary 
        of Labor under paragraph (4) may file a petition for review 
        with the United States Court of Appeals for the Federal Circuit 
        pursuant to section 455.
          ``(6) Compliance date.--If new appropriated funds are 
        necessary to correct a violation of subsection (a) for which a 
        citation is issued, or to comply with an order requiring 
        correction of such a violation, correction or compliance shall 
        take place as soon as possible, but not later than the end of 
        the fiscal year following the fiscal year in which the citation 
        is issued or the order requiring correction becomes final and 
        not subject to further review.
  ``(d) Regulations To Implement Section.--
          ``(1) In general.--The President shall issue regulations to 
        implement this section.
          ``(2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive regulations 
        promulgated by the Secretary of Labor to implement the 
        statutory provisions referred to in subsection (a) except to 
        the extent that the President may determine, for good cause 
        shown and stated together with the regulation, that a 
        modification of such regulations would be more effective for 
        the implementation of the rights and protections under this 
        section.
          ``(3) Employing office responsible for correction.--The 
        regulations issued under paragraph (1) shall include a method 
        of identifying, for purposes of this section and for different 
        categories of violations of subsection (a), the employing 
        office responsible for correction of a particular violation.

                  ``PART D--LABOR-MANAGEMENT RELATIONS

``SEC. 430. APPLICATION OF CHAPTER 71 OF TITLE 5, RELATING TO FEDERAL 
                    SERVICE LABOR-MANAGEMENT RELATIONS; PROCEDURES FOR 
                    REMEDY OF VIOLATIONS.

  ``(a) Labor-Management Rights.--Chapter 71 of title 5 shall apply to 
employing offices and to covered employees and representatives of those 
employees, except that covered employees shall not have a right to 
reinstatement pursuant to section 7118(a)(7)(C) or 7123 of title 5.
  ``(b) Definition.--For purposes of the application under this section 
of chapter 71 of title 5, the term `agency' as used in such chapter 
means an employing office.

                           ``PART E--GENERAL

``SEC. 435. GENERALLY APPLICABLE REMEDIES AND LIMITATIONS.

  ``(a) Attorney's Fees.--If a covered employee, with respect to any 
claim under this chapter, or a qualified person with a disability, with 
respect to any claim under section 420, is a prevailing party in any 
proceeding under section 453(1), 455, or 456, the administrative agency 
or court, as the case may be, may award attorney's fees, expert fees, 
and any other costs as would be appropriate if awarded under section 
706(k) of the Civil Rights Act of 1964.
  ``(b) Interest.--In any proceeding under section 453(1), 455, or 456, 
the same interest to compensate for delay in payment shall be made 
available as would be appropriate if awarded under section 717(d) of 
the Civil Rights Act of 1964.
  ``(c) Civil Penalties and Punitive Damages.--Except as otherwise 
provided in this chapter, no civil penalty or punitive damages may be 
awarded with respect to any claim under this chapter.
  ``(d) Exclusive Procedure.--
          ``(1) In general.--Except as provided in paragraph (2), no 
        person may commence an administrative or judicial proceeding to 
        seek a remedy for the rights and protections afforded by this 
        chapter except as provided in this chapter.
          ``(2) Veterans.--A covered employee under section 416 may 
        also utilize any provisions of chapter 43 of title 38 that are 
        applicable to that employee.
  ``(e) Scope of Remedy.--Only a covered employee who has undertaken 
and completed the procedures described in section 452 may be granted a 
remedy under part A of this subchapter.
  ``(f) Construction.--
          ``(1) Definitions and exemptions.--Except where inconsistent 
        with definitions and exemptions provided in this chapter, the 
        definitions and exemptions in the laws made applicable by this 
        chapter shall apply under this chapter.
          ``(2) Size limitations.--Notwithstanding paragraph (1), 
        provisions in the laws made applicable under this chapter 
        (other than paragraphs (2) and (3) of section 2(a) of the 
        Worker Adjustment and Retraining Notification Act) determining 
        coverage based on size, whether expressed in terms of numbers 
        of employees, amount of business transacted, or other measure, 
        shall not apply in determining coverage under this chapter.
  ``(g) Definitions Relating to Section 411.--For purposes of applying 
this section with respect to any practice or other matter to which 
section 411 relates, the terms `employing office' and `covered 
employee' shall each be considered to have the meaning given to it by 
such section.

   ``Subchapter III--Administrative and Judicial Dispute-Resolution 
                               Procedures

``SEC. 451. PROCEDURE FOR CONSIDERATION OF ALLEGED VIOLATIONS.

  ``The procedure for consideration of alleged violations of part A of 
subchapter II consists of--
          ``(1) counseling and mediation as provided in section 452; 
        and
          ``(2) election, as provided in section 453, of either--
                  ``(A) an administrative proceeding as provided in 
                section 453(1) and judicial review as provided in 
                section 455; or
                  ``(B) a civil action in a district court of the 
                United States as provided in section 456.

``SEC. 452. COUNSELING AND MEDIATION.

  ``(a) In General.--The President shall by regulation establish 
procedures substantially similar to those under sections 402 and 403 of 
the Congressional Accountability Act of 1995 for the counseling and 
mediation of alleged violations of a law made applicable under part A 
of subchapter II.
  ``(b) Exhaustion Requirement.--A covered employee who has not 
exhausted counseling and mediation under subsection (a) shall be 
ineligible to make any election under section 453 or otherwise pursue 
any further form of relief under this subchapter.

``SEC. 453. ELECTION OF PROCEEDING.

  ``Not later than 90 days after a covered employee receives notice of 
the end of the period of mediation, but no sooner than 30 days after 
receipt of such notification, such covered employee may either--
          ``(1) file a complaint with the appropriate administrative 
        agency, as determined under section 454; or
          ``(2) file a civil action in accordance with section 456 in 
        the United States district court for the district in which the 
        employee is employed or for the District of Columbia.

``SEC. 454. APPROPRIATE AGENCIES.

  ``(a) In General.--Except as provided in subsection (b), the 
appropriate agency under this section with respect to an alleged 
violation of part A of subchapter II shall be the Board.
  ``(b) Exceptions.--
          ``(1) Discrimination.--For purposes of any action arising 
        under section 411 (or any action alleging intimidation, 
        reprisal, or discrimination under section 417 relating to any 
        practice made unlawful under section 411), the appropriate 
        agency shall be the Equal Employment Opportunity Commission, 
        and the complaint in any such action shall be processed under 
        the same administrative procedures as any such complaint filed 
        by any other Federal employee.
          ``(2) Mixed cases.--However, in the case of any covered 
        employee (within the meaning of section 411(c)(1)) who has been 
        affected by an action which an employee of an executive agency 
        may appeal to the Board and who alleges that a basis for the 
        action was discrimination prohibited by section 411 (or any 
        action alleging intimidation, reprisal, or discrimination under 
        section 417 relating to any practice made unlawful under 
        section 411), the initial appropriate agency shall be the 
        Board, and such matter shall thereafter be processed in 
        accordance with section 7702 (a)-(d) (disregarding paragraph 
        (2) of such subsection (a)) and (f) of title 5.
          ``(3) Judicial review.--Notwithstanding any other provision 
        of law (including any provision of law referenced in paragraph 
        (1) or (2)), judicial review of any administrative decision 
        under this subsection shall be by the court specified in 
        section 455.

``SEC. 455. JUDICIAL REVIEW.

  ``(a) In General.--The United States Court of Appeals for the Federal 
Circuit shall have jurisdiction over a petition for review of a final 
decision under this chapter of--
          ``(1) an appropriate agency (as determined under section 
        454);
          ``(2) the Federal Labor Relations Authority under chapter 71 
        of title 5, notwithstanding section 7123 of such title; or
          ``(3) the Secretary of Labor or the Occupational Safety and 
        Health Review Commission, made under part C of subchapter II.
  ``(b) Filing Deadline.--Any petition for review under this section 
must be filed within 30 days after the date the petitioner receives 
notice of the final decision.

``SEC. 456. CIVIL ACTION.

  ``(a) Jurisdiction.--The district courts of the United States shall 
have jurisdiction over any civil action commenced under section 453(2) 
and this section by a covered employee.
  ``(b) Parties.--The defendant shall be the employing office alleged 
to have committed the violation, or in which the violation is alleged 
to have occurred.
  ``(c) Jury Trial.--Any party may demand a jury trial where a jury 
trial would be available in an action against a private defendant under 
the relevant law made applicable by this chapter. In any case in which 
a violation of section 411 is alleged, the court shall not inform the 
jury of the maximum amount of compensatory damages available under 
section 411(b)(1) or 411(b)(3).

``SEC. 457. JUDICIAL REVIEW OF REGULATIONS.

  ``In any proceeding brought under section 455 or 456 in which the 
application of a regulation issued under this chapter is at issue, the 
court may review the validity of the regulation in accordance with the 
provisions of subparagraphs (A) through (D) of section 706(2) of title 
5. If the court determines that the regulation is invalid, the court 
shall apply, to the extent necessary and appropriate, the most relevant 
substantive executive agency regulation promulgated to implement the 
statutory provisions with respect to which the invalid regulation was 
issued. Except as provided in this section, the validity of regulations 
issued under this chapter is not subject to judicial review.

``SEC. 458. OTHER JUDICIAL REVIEW PROHIBITED.

  ``Except as expressly authorized by this chapter, the compliance or 
noncompliance with the provisions of this chapter and any action taken 
pursuant to this chapter shall not be subject to judicial review.

``SEC. 459. EFFECT OF FAILURE TO ISSUE REGULATIONS.

  ``In any proceeding under section 453(1), 455, or 456, if the 
President has not issued a regulation on a matter for which this 
chapter requires a regulation to be issued, the administrative agency 
or court, as the case may be, shall apply, to the extent necessary and 
appropriate, the most relevant substantive executive agency regulation 
promulgated to implement the statutory provision at issue in the 
proceeding.

``SEC. 460. EXPEDITED REVIEW OF CERTAIN APPEALS.

  ``(a) In General.--An appeal may be taken directly to the Supreme 
Court of the United States from any interlocutory or final judgment, 
decree, or order of a court upon the constitutionality of any provision 
of this chapter.
  ``(b) Jurisdiction.--The Supreme Court shall, if it has not 
previously ruled on the question, accept jurisdiction over the appeal 
referred to in subsection (a), advance the appeal on the docket, and 
expedite the appeal to the greatest extent possible.

``SEC. 461. PAYMENTS.

  ``A judgment, award, or compromise settlement against the United 
States under this chapter (including any interest and costs) shall be 
paid--
          ``(1) under section 1304 of title 31, if it arises out of an 
        action commenced in a district court of the United States (or 
        any appeal therefrom); or
          ``(2) out of amounts otherwise appropriated or available to 
        such office, if it arises out of an administrative proceeding 
        under this chapter (or any appeal therefrom).

``SEC. 462. CONFIDENTIALITY.

  ``(a) Counseling.--All counseling under section 452 shall be strictly 
confidential, except that, with the consent of the covered employee, 
the employing office may be notified.
  ``(b) Mediation.--All mediation under section 452 shall be strictly 
confidential.

``SEC. 463. DEFINITIONS.

  ``For purposes of applying this subchapter, the terms `employing 
office' and `covered employee' shall each, to the extent that section 
411 is involved, be considered to have the meaning given to it by such 
section.

                    ``Subchapter IV--Effective Date

``SEC. 471. EFFECTIVE DATE.

  ``This chapter shall take effect 1 year after the date of the 
enactment of the Presidential and Executive Office Accountability 
Act.''.
  (b) Regulations.--Appropriate measures shall be taken to ensure that 
any regulations needed to implement chapter 5 of title 3, United States 
Code, as amended by this section, shall be in effect by the effective 
date of such chapter.
  (c) Technical Amendment.--The table of chapters for title 3, United 
States Code, is amended by adding at the end the following:

``5. Extension of Certain Rights and Protections to              401''.
                            Presidential Offices.

SEC. 3. FINANCIAL OFFICERS WITHIN THE EXECUTIVE OFFICE OF THE 
                    PRESIDENT.

  (a) Chief Financial Officer.--Section 901 of title 31, United States 
Code, is amended by adding at the end the following:
  ``(c)(1) There shall be within the Executive Office of the President 
a Chief Financial Officer, who shall be appointed by the President from 
among individuals meeting the standards described in subsection (a)(3).
  ``(2) The Chief Financial Officer under this subsection shall have 
the same authority and shall perform the same functions as apply in the 
case of a Chief Financial Officer under section 902.
  ``(3) The Director of the Office of Management and Budget shall 
prescribe any regulations which may be necessary to ensure that, for 
purposes of implementing paragraph (2), the Executive Office of the 
President shall, to the extent practicable and appropriate, be treated 
(including for purposes of financial statements under section 3515) in 
the same way as an agency described in subsection (b).''.
  (b) Deputy Chief Financial Officer.--Section 903 of title 31, United 
States Code, is amended by adding at the end the following:
  ``(c)(1) There shall be within the Executive Office of the President 
a Deputy Chief Financial Officer, who, notwithstanding any provision of 
subsection (b), shall be appointed by the President from among 
individuals meeting the standards described in section 901(a)(3).
  ``(2) The Deputy Chief Financial Officer under this subsection shall 
have the same authority and shall perform the same functions as apply 
in the case of the Deputy Chief Financial Officer of an agency 
described in subsection (b).''.
  (c) Technical and Conforming Amendments.--
          (1) Title 31, united states code.--Section 503(a) of title 
        31, United States Code, is amended--
                  (A) in paragraph (7) by striking ``respectively.'' 
                and inserting ``respectively (excluding any officer 
                appointed under section 901(c) or 903(c)).''; and
                  (B) in paragraph (8) by striking ``Officers.'' and 
                inserting ``Officers (excluding any officer appointed 
                under section 901(c) or 903(c)).''.
          (2) Designation of agency head.--The President shall 
        designate an employee of the Executive Office of the President 
        (other than the Chief Financial Officer or Deputy Chief 
        Financial Officer appointed under the amendments made by 
        subsections (a) and (b), respectively), who shall be deemed 
        ``the head of the agency'' for purposes of carrying out section 
        902 of title 31, United States Code, with respect to the 
        Executive Office of the President.

SEC. 4. AMENDMENT TO DEFINITION OF ``SPECIAL GOVERNMENT EMPLOYEE''.

  (a) Amendment to Section 202(a).--Subsection (a) of section 202 of 
title 18, United States Code, is amended to read as follows:
  ``(a) For the purpose of sections 203, 205, 207, 208, and 209 of this 
title the term `special Government employee' shall mean--
          ``(1) an officer or employee as defined in subsection (c) who 
        is retained, designated, appointed, or employed in the 
        legislative or executive branch of the United States 
        Government, in any independent agency of the United States, or 
        in the government of the District of Columbia, and who, at the 
        time of retention, designation, appointment or employment, is 
        expected to perform temporary duties on a full-time or 
        intermittent basis for not to exceed one hundred and thirty 
        days during any period of three hundred and sixty-five 
        consecutive days;
          ``(2) a part-time United States commissioner;
          ``(3) a part-time United States magistrate;
          ``(4) an independent counsel appointed under chapter 40 of 
        title 28 and any person appointed by that independent counsel 
        under section 594(c) of title 28;
          ``(5) a person serving as a part-time local representative of 
        a Member of Congress in the Member's home district or State; 
        and
          ``(6) a Reserve officer of the Armed Forces, or an officer of 
        the National Guard of the United States, who is not otherwise 
        an officer or employee as defined in subsection (c) who is--
                  ``(A) on active duty solely for training 
                (notwithstanding section 2105(d) of title 5);
                  ``(B) serving voluntarily for not to exceed one 
                hundred and thirty days during any period of three 
                hundred and sixty-five consecutive days; or
                  ``(C) serving involuntarily.''.
  (b) Amendment to Section 202(c).--Subsection (c) of 202 of title 18, 
United States Code, is amended to read as follows:
  ``(c) The terms `officer' and `employee' in sections 203, 205, 207 
through 209, and 218 of this title shall include--
          ``(1) an individual who is retained, designated, appointed or 
        employed in the United States Government or in the government 
        of the District of Columbia, to perform, with or without 
        compensation and subject to the supervision of the President, 
        the Vice President, a Member of Congress, a Federal judge or an 
        officer or employee of the United States or of the government 
        of the District of Columbia, a Federal or District of Columbia 
        function under authority of law or an Executive act. As used in 
        this section, a Federal or District of Columbia function shall 
        include, but not be limited to--
                  ``(A) supervising, managing, directing or overseeing 
                a Federal or District of Columbia officer or employee 
                in the performance of such officer's or employee's 
                official duties;
                  ``(B) providing regular advice, counsel, or 
                recommendations to the President, the Vice President, a 
                Member of Congress, or any Federal or District of 
                Columbia officer or employee, or conducting meetings 
                involving any of those individuals, as part of the 
                Federal or District of Columbia government's internal 
                deliberative process; or
                  ``(C) obligating funds of the United States or the 
                District of Columbia;
          ``(2) a Reserve officer or officer of the National Guard of 
        the United States who is voluntarily serving a period of 
        extended active duty in excess of 130 days; and
          ``(3) the President, the Vice President, a Member of Congress 
        or a Federal judge only if specified in the section.''.
  (c) New Section 202(f).--Section 202 of title 18, United States Code, 
is amended by adding at the end the following:
  ``(f) The terms `officer or employee' and `special Government 
employee' as used in sections 203, 205, 207 through 209, and 218, shall 
not include enlisted members of the Armed Forces, nor shall they 
include an individual who is retained, designated or appointed without 
compensation specifically to act as a representative of a non-Federal 
(or non-District of Columbia) interest on an advisory committee 
established pursuant to the Federal Advisory Committee Act or any 
similarly established committee whose meetings are generally open to 
the public. The non-Federal interest to be represented must be 
specifically set forth in the statute, charter, or Executive act 
establishing the committee.''.

SEC. 5. APPLICABILITY OF FUTURE EMPLOYMENT LAWS.

  Each Federal law governing employment in the private sector, enacted 
later than 12 months after the date of the enactment of this Act, shall 
be deemed to apply with respect to ``employing offices'' and ``covered 
employees'' (within the meaning of section 401 of title 3, United 
States Code, as amended by this Act), unless such law specifically 
provides otherwise and expressly cites this section.

SEC. 6. REPEAL OF SECTION 320 OF THE GOVERNMENT EMPLOYEE RIGHTS ACT OF 
                    1991.

  (a) In General.--Section 320 of the Government Employee Rights Act of 
1991 is repealed.
  (b) Effective Date.--This section shall take effect 1 year after the 
date of the enactment of this Act.
  (c) Savings Provision.--The repeal under this section shall not 
affect proceedings in which the complaint was filed before the 
effective date of this section, and orders shall be issued in such 
proceedings and appeals shall be taken therefrom as if this section had 
not been enacted.

SEC. 7. POLITICAL AFFILIATION.

  It shall not be a violation of any provision of section 411 of title 
3, United States Code, as amended by this Act, to consider the party 
affiliation, or political compatibility with the employing office, of 
an employee who is a ``covered employee'' for purposes of such section 
411 with respect to employment decisions.

SEC. 8. ESTABLISHMENT OF INSPECTOR GENERAL FOR EXECUTIVE OFFICE OF THE 
                    PRESIDENT.

  (a) Establishment of Office.--Section 11 of the Inspector General Act 
of 1978 (5 U.S.C. App.) is amended--
          (1) in paragraph (1) by inserting ``the President (with 
        respect only to the Executive Office of the President),'' after 
        ``means''; and
          (2) in paragraph (2) by inserting ``the Executive Office of 
        the President,'' after ``means''.
  (b) Appointment of Inspector General.--Not later than 120 days after 
the effective date of this section, the President shall nominate an 
individual as the Inspector General of the Executive Office of the 
President pursuant to the amendments made by subsection (a).
  (c) Special Provisions Concerning Inspector General of the Executive 
Office of the President.--The Inspector General Act of 1978 (5 U.S.C. 
App.) is amended--
          (1) by redesignating the second section 8G (regarding a rule 
        of construction) as section 8I; and
          (2) by inserting after the first section 8G (regarding 
        requirements for Federal entities and designated Federal 
        entities) the following:

``SEC. 8H. SPECIAL PROVISIONS CONCERNING INSPECTOR GENERAL OF THE 
                    EXECUTIVE OFFICE OF THE PRESIDENT.

  ``(a) Authority, Direction, and Control of President.--
Notwithstanding the last 2 sentences of section 3(a), the Inspector 
General of the Executive Office of the President shall be under the 
authority, direction, and control of the President with respect to 
audits or investigations, or the issuance of subpoenas, which require 
access to information concerning--
          ``(1) ongoing criminal investigations or proceedings;
          ``(2) undercover operations;
          ``(3) the identity of confidential sources, including 
        protected witnesses;
          ``(4) deliberations and decisions on policy matters, 
        including documented information used as a basis for making 
        policy decisions;
          ``(5) intelligence or counterintelligence matters; or
          ``(6) other matters the disclosure of which would constitute 
        a serious threat to the national security, or would cause 
        significant impairment to the national interests (including 
        interests in foreign trade negotiations), of the United States.
  ``(b) Prohibiting Activities of Inspector General.--With respect to 
information described in subsection (a), the President may prohibit the 
Inspector General of the Executive Office of the President from 
carrying out or completing any audit or investigation, or issuing any 
subpoena, after the Inspector General has decided to initiate, carry 
out, or complete such audit or investigation or to issue such subpoena, 
if the President determines that--
          ``(1) the disclosure of that information would interfere with 
        the core functions of the constitutional responsibilities of 
        the President; and
          ``(2) the prohibition is necessary to prevent the disclosure 
        of that information.
  ``(c) Notice.--
          ``(1) Notice to inspector general.--If the President makes a 
        determination referred to in subsection (b)(1) or (2), the 
        President shall within 30 days notify the Inspector General in 
        writing stating the reasons for that determination.
          ``(2) Notice to congress.--Within 30 days after receiving a 
        notice under paragraph (1), the Inspector General shall 
        transmit a copy of the notice to each of the Chairman and the 
        ranking minority party member of the Committee on Government 
        Reform and Oversight of the House of Representatives, the 
        Committee on Governmental Affairs of the Senate, and other 
        appropriate committees or subcommittees of the Congress.
  ``(d) Semiannual Reports.--
          ``(1) Information to be included.--The Inspector General of 
        the Executive Office of the President shall include in each 
        semiannual report to the President under section 5, at a 
        minimum--
                  ``(A) a list of the title or subject of each 
                inspection, investigation, or audit conducted during 
                the reporting period;
                  ``(B) a statement of whether corrective action has 
                been completed on each significant recommendation 
                described in previous semiannual reports, and, in a 
                case where corrective action has been completed, a 
                description of such corrective action;
                  ``(C) a certification that the Inspector General has 
                had full and direct access to all information relevant 
                to the performance of functions of the Inspector 
                General;
                  ``(D) a description of all cases occurring during the 
                reporting period in which the Inspector General could 
                not obtain documentary evidence relevant to any 
                inspection, audit, or investigation due to a 
                determination of the President under subsection (b); 
                and
                  ``(E) such recommendations as the Inspector General 
                considers appropriate concerning legislation to promote 
                economy and efficiency in the administration of 
                programs and operations undertaken by the Executive 
                Office of the President, and to detect and eliminate 
                fraud, waste, and abuse in such programs and 
                operations.
          ``(2) Transmission to congress.--Within 30 days after 
        receiving a semiannual report under section 5 from the 
        Inspector General of the Executive Office of the President, the 
        President shall transmit the report to each of the Chairman and 
        the ranking minority party member of the Committee on 
        Government Reform and Oversight of the House of Representatives 
        and the Committee on Governmental Affairs of the Senate with 
        any comments the President considers appropriate.''.
  (d) Effective Date.--This section shall take effect on January 21, 
1997.

                      Short Summary of Legislation

    H.R. 3452, the ``Presidential and Executive Office 
Accountability Act,'' amends titles 3, 5, 18, and 31 of the 
United States Code (U.S.C.) and repeals title 2 U.S.C. 
Sec. 1219. It subjects the White House to the same laws that 
are applicable to Congress and the private sector. Eleven civil 
rights, labor and employment laws are made applicable to the 
Executive Office of the President, extending rights and 
protections under these laws to covered employees, and 
permitting administrative and judicial dispute-resolution 
procedures. The bill requires that in the future, all such laws 
will automatically apply to the White House unless they are 
specifically exempted.
    H.R. 3452 will improve accountability and oversight in the 
White House. It improves financial management by requiring the 
President to appoint a Chief Financial Officer for the 
Executive Office of the President. It provides the President 
with needed investigative and oversight skills by establishing 
an Office of Inspector General in the Executive Office of the 
President, with an Inspector General appointed by the 
President. It tightens the definition of ``special Government 
employee'' to make unofficial advisers more accountable to the 
American people.
          Major provisions of the bill include:
          Equal Employment.--White House employees and certain 
        other Presidential appointees will be protected from 
        discrimination based upon race, color, religion, sex, 
        national origin, age and disability. The applicable 
        laws are Title VII of the Civil Rights Act of 
        1964,1 the Age Discrimination in Employment Act of 
        1967,2 the Rehabilitation Act of 1973,3 and 
        Title I of the Americans with Disabilities Act of 
        1990.4
---------------------------------------------------------------------------
    \1\ 42 U.S.C. 2000e et seq.
    \2\ 29 U.S.C. 621 et seq.
    \3\ 29 U.S.C. 701 et seq.
    \4\ 42 U.S.C. 12101 et seq.
---------------------------------------------------------------------------
          Fair Labor Standards--White House employees would be 
        protected by the Fair Labor Standards Act 5 (FLSA) 
        which regulates minimum wages and overtime pay. The 
        bill includes an exception from the provisions of the 
        FLSA for interns and volunteers.
---------------------------------------------------------------------------
    \5\ 29 U.S.C. 201 et seq.
---------------------------------------------------------------------------
          Administrative and Judicial Dispute-Resolution 
        Procedures.--Counseling, mediation, and the election of 
        either administrative remedies or civil action remedies 
        before a United States District Court would be allowed. 
        Complaints would be filed with the Equal Employment 
        Opportunity Commission or the Merit Systems Protection 
        Board, as applicable.
          Generally Applicable Remedies and Limitations.--
        Employees whose rights are violated are entitled to the 
        same remedies, including, where applicable, liquidated 
        damages and compensatory damages, as in the private 
        sector. Remedies available to covered employees include 
        attorney fees, expert fees, and costs and interest 
        where applicable, in accordance with the Civil Rights 
        Act. Remedies available do not include injunctive 
        relief or punitive damages.
          Chief Financial Officer.--The President would be 
        required to appoint a Chief Financial Officer and a 
        Deputy Chief Financial Officer for the Executive Office 
        of the President. The bill provides that, to the extent 
        practicable and appropriate, the provisions of the 
        Chief Financial Officers Act of 1990,6 as amended 
        by the Government Management Reform Act of 1994,7 
        would apply.
---------------------------------------------------------------------------
    \6\ 31 U.S.C. 502(b-f)-504; 901-903.
    \7\ Pub. L. No. 103-356.
---------------------------------------------------------------------------
          Inspector General.--The President would be required 
        to appoint an Inspector General for the Executive 
        Office of the President, and otherwise comply with the 
        Inspector General Act of 1978,8 as amended. The 
        bill allows the President to prohibit certain actions 
        by the Inspector General based on constitutional 
        powers, national interest, national security or other 
        relevant considerations.
---------------------------------------------------------------------------
    \8\ 5 U.S.C. App. 3.
---------------------------------------------------------------------------
          Special Government Employee (SGE).--The bill amends 
        the definition of ``special Government employee'' in 
        section 202 of title 18, United States Code. It 
        tightens the definition to make it clear that informal 
        advisers may be subject to conflict-of-interest and 
        financial-disclosure statutes.

                  Background and Need for Legislation

                             a. background

    There is a general consensus that all employees of public 
institutions in the United States must be held accountable for 
their actions, including the White House. H.R. 3452 will help 
provide accountability. It will also ensure that the Executive 
Office of the President has to comply with the same laws that 
the rest of the country and Congress have to follow. The bill 
applies the following civil rights, labor, and employment laws 
to the Executive Office of the President:
          The Fair Labor Standards Act of 1938 (29 U.S.C. 201 
        et seq.);
          Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e et seq.);
          The Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.);
         The Age Discrimination in Employment Act of 1967 (29 
        U.S.C. 621 et seq.);
         The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
        seq.);
         The Family and Medical Leave Act of 1993 (29 U.S.C. 
        2611 et seq.);
         The Occupational Safety and Health Act of 1970 (29 
        U.S.C. 651 et seq.);
         Chapter 71 of title 5, United States Code, regulating 
        Federal Labor-Management relations;
         The Employee Polygraph Protection Act of 1988 (29 
        U.S.C. 2001 et seq.);
         The Worker Adjustment and Retraining Notification Act 
        (29 U.S.C. 2101 et seq.); and
         Chapter 43 of title 38, United States Code, regulating 
        veterans'' employment and reemployment rights.
    The Executive Office of the President is a collection of 
separate, disparate divisions. Executive Order 8248, of 
September 8, 1939 established the divisions of the Executive 
Office and defined their functions. Various agencies had been 
transferred to the Executive Office of the President by the 
President's Reorganization Plans I and II of 1939,\9\ effective 
July 1, 1939 under authority of the Reorganization Act of 
1939.\10\ At present there are twelve divisions. They are:
---------------------------------------------------------------------------
    \9\ 5 U.S.C. App.
    \10\ 5 U.S.C. 133-133r, 133t note.
---------------------------------------------------------------------------
         The White House Office;
         The Executive Residence at the White House;
         The Office of the Vice President;
         The Office of Policy Development;
         The Council of Economic Advisors,
         The Council on Environmental Quality and Office of 
        Environmental Quality;
         The National Security Council;
         The Office of Administration;
         The Office of Management and Budget;
         The Office of National Drug Control Policy;
         The Office of Science and Technology; and
         The Office of the United States Trade Representative.
    It is not clear how many employees at the White House are 
already covered by civil rights or employment laws. About one 
third (currently approximately 550 employees) work in the four 
offices closest to the President: the White House Office; the 
Office of the Vice President; the Office of Policy Development; 
and the Executive Residence. These employees are hired 
``without regard to any other provision of law regulating 
employment or compensation of persons in the government 
service,'' \11\ and serve at the pleasure of the President. 
They are often referred to as ``Title 3'' employees. Some Title 
3 employees work in the eight other divisions, but most are 
Title 5 employees who are covered by most of the workplace 
laws, according to testimony provided the committee by the 
Director of the Office of Administration, Executive Office of 
the President.
---------------------------------------------------------------------------
    \11\ 3 U.S.C. 105(b).
---------------------------------------------------------------------------
    The Fair Labor Standards Act does not apply to the White 
House. A Congressional Research Service American Law Division 
(CRS/ALD) memorandum \12\ states that, ``Under the enforcement 
scheme of the Act, the Office of Personnel Management (OPM) 
would make the initial administrative determination whether the 
Act covered any elements of the White House or the Executive 
Office of the President. It does not appear that OPM has made 
any formal determination of such coverage.''
---------------------------------------------------------------------------
    \12\ Memorandum on ``Proposed Presidential and Executive Office 
Accountability Act,'' June 21, 1996, Congressional Research Service 
American Law Division.
---------------------------------------------------------------------------
    The Family and Medical Leave Act of 1993 may already apply 
to some White House employees, but a recent judicial 
application of Title 3 United States Code Sec. 105 raises 
questions about the Act's applicability to the White 
House.13 Franklin Reeder, Director of the Office of 
Administration, Executive Office of the President, stated in 
testimony provided to the committee that, as a matter of 
policy, the White House complies with the Family and Medical 
Leave Act.\14\
---------------------------------------------------------------------------
    \13\ Memorandum on ``Application of Certain Rights and Labor Laws 
to White House Employees,'' February 13, 1996, Congressional Research 
Service American Law Division.
    \14\ Hearing on H.R. 3452 Before the House Committee on Government 
Reform and Oversight Subcommittee on Government Management, 
Information, and Technology, 104th Cong., 2nd Sess. (1996) (Statement 
of Franklin S. Reeder, Director, Office of Administration, Executive 
Office of the President).
---------------------------------------------------------------------------
    At the same hearing, Mr. Reeder also testified that, as a 
matter of policy, the White House is ``already compliant with 
the Polygraph Protection Act.''
    It is the committee's opinion that these laws from which 
the White House is currently exempt should apply as a matter of 
law, not only as a matter of policy. It is ironic that at the 
very time that President Clinton is pushing to expand the 
Family and Medical Leave Act and the Fair Labor Standards Act, 
his own employees are not entitled by law to the rights 
afforded private sector and Congressional employees.
    H.R. 3452 is modeled on the Congressional Accountability 
Act of 1995.15 This applied the eleven civil rights, 
labor, and workplace laws to employees of the Legislative 
Branch of the Federal Government, and established remedies and 
procedures for aggrieved employees in instances of violations 
of the laws. Some of the eleven laws had previously been 
extended to certain employees of the legislative branch, but 
the Congressional Accountability Act expanded the scope of 
employees covered by the laws and granted a right of judicial 
review to all covered employees.
---------------------------------------------------------------------------
    \15\ 2 U.S.C. 1301 et seq.
---------------------------------------------------------------------------
    The Government Employee Rights Act of 1991 16 had 
applied certain provisions of four of the laws to some officers 
or employees in the Executive Office of the President. These 
were:
---------------------------------------------------------------------------
    \16\ 2 U.S.C. 1219.
---------------------------------------------------------------------------
          Title VII of the Civil Rights Act of 1964;
          The Americans with Disabilities Act of 1990;
          The Age Discrimination in Employment Act of 1967; and
          The Rehabilitation Act of 1973.
    H.R. 3452 repeals the section in the Government Employee 
Rights Act of 1991 that provided coverage under the four laws 
listed above, since it is, in effect, reapplying them.
    Coverage under H.R. 3452 would extend to most Presidential 
appointees, except those appointed by the President with Senate 
confirmation, those appointed to advisory committees, and 
members of a uniformed service. Most White House employees 
would be entitled to the same remedies as a private sector 
worker, not including injunctive relief or punitive damages. 
Employees would have the option (1) of filing an administrative 
complaint with the Merit Systems Protection Board, the Federal 
Labor Relations Board, the Equal Employment Opportunity 
Commission or (2) of seeking redress in Federal court.
    This bill also establishes effective redress systems for 
employees who believe their rights under any of these laws have 
been violated. Following a mandatory period of counseling and 
mediation, the employee may choose between an administrative 
remedy with judicial review by the United States Court of 
Appeals for the Federal Circuit or a judicial remedy before the 
appropriate United States district court. The administrative 
remedy will be an appeal to the Merit Systems Protection Board 
or, in some discrimination cases, the Equal Employment 
Opportunity Commission.
    H.R. 3452, as originally drafted, included punitive damages 
as an available remedy and amended the Congressional 
Accountability Act to include punitive damages in the range of 
remedies available to employees who could show discrimination. 
The Congressional Accountability Act did not include a 
provision to allow the award of punitive damages. Employee 
grievances under the Congressional Accountability Act are filed 
against the office of the Member, not the Member individually. 
H.R. 3452 is intended to provide the same treatment to the 
Congress and to the Executive Office of the President. 
Accordingly, it was unanimously decided that the provisions to 
allow punitive damages should be eliminated, both as they 
applied to Congress and to the White House.
    The Federal Labor Relations Authority will administer 
labor-management relations at the White House. The Occupational 
Safety and Health Act will be administered by the Secretary of 
Labor and the Occupational Safety and Health Review Commission, 
as it is in the private sector.
    Finally, the bill also places the White House under the 
public access provisions of the Americans With Disabilities Act 
(ADA). The remedies and enforcement under the ADA would be the 
same as if the White House were a private entity.
    The bill strengthens accountability by requiring 
improvement in management practices. It does this in three 
ways. First, it improves financial management by setting up an 
office of Chief Financial Officer. Second, it gives the 
President a tool to uncover waste, fraud, and abuse by setting 
up an Office of Inspector General. Third, it heightens 
awareness of conflict-of-interest and other ethical 
considerations by clarifying the definition of a ``special 
Government employee.''
    It applies the Chief Financial Officers Act (CFO Act) to 
the White House. H.R. 3452 requires the President to appoint a 
Chief Financial Officer (CFO) and, to the fullest extent 
practicable, requires compliance by the Executive Office of the 
President with the requirements of the CFO Act. The CFO Act 
allows departments and agencies flexibility in setting up the 
Office of the CFO, and the Executive Office of the President 
would have similar flexibility, so long as accountability is 
retained, and reports are produced, by a single CFO Office. The 
CFO should hold a position in the organization sufficiently 
elevated to have access to the President.
    On July 23, 1996, Representative Bass (R-NH) introduced 
H.R. 3872, the ``White House Inspector General Act of 1996,'' 
which amends the Inspector General Act of 1978 and would 
establish an Office of Inspector General in the Executive 
Office of President. At the committee mark-up of H.R. 3452 on 
July 25, 1996, Mr. Bass offered H.R. 3872 as an amendment to 
H.R. 3452. Mr. Bass explained that the White House Inspector 
General (IG), like other IGs in the Executive Branch, would 
serve as the principal watchdog of White House financial 
management and fiscal resources. He felt that it complemented 
H.R. 3452's existing provision applying the Chief Financial 
Officer Act to the White House. Establishing a White House IG 
will provide future Presidents with a useful tool. The IG will 
act as a watchdog, bringing to the President's attention 
situations which could cause problems before such problems 
arise, and ensuring that controls are in place to prevent 
waste, fraud, or abuse.
    The bill includes a revised definition of a special 
Government employee which would tighten the application of the 
definition. It uses a functional test rather than a series of 
application criteria. The bill makes it clear that informal, 
unpaid advisers would be covered by conflict-of-interest and 
financial-disclosure laws.

                         b. legislative history

    On May 14, 1996, Representative John L. Mica (R-FL), 
Chairman of the Government Reform and Oversight Committee's 
Subcommittee on Civil Service, introduced H.R. 3452 with more 
than one hundred cosponsors. The Subcommittee on Government 
Management, Information and Technology held a legislative 
hearing on the bill on June 15, 1996, and on July 16, marked up 
the bill. Several amendments were offered and adopted at the 
subcommittee mark-up, and the bill, as amended was approved by 
voice vote. Subsequently, the Committee on Government Reform 
and Oversight marked up the bill on July 25, approving two 
amendments, and reporting it favorably, as amended, on a voice 
vote, for consideration by the House of Representatives.

                      c. need for the legislation

    The legislation is intended to satisfy two needs: the need 
to improve financial management practices and accountability in 
the White House; and the need for the White House to live under 
the same laws as Congress and the private sector.
    Recent congressional hearings have highlighted some of the 
shortcomings in White House financial responsibility. The White 
House is not now required to comply with workplace laws that 
the rest of the country has to follow. The White House has 
little or no controls over its financial and other management 
activities. The White House has a history of retaining informal 
advisers to the President who are present in the White House on 
a regular basis and who affect public policy without having 
accountability to the public.
    The White House financial operations lack both 
accountability and structure.17 The committee believes 
that the analysis and reorganization necessary to establish an 
Office of Chief Financial Officer in the White House would 
provide organizational structure for financial operations.
---------------------------------------------------------------------------
    \17\ Hearing on H.R. 3452 Before the House Committee on Government 
Reform and Oversight Subcommittee on Government Management, Information 
and Technology, 104th Cong., 2nd Sess. (1996)(Statement of 
Representative John L. Mica).
---------------------------------------------------------------------------
    The Chief Financial Officers Act was intended to help 
Executive Branch agencies improve their financial operations, 
and it has been effective in doing so, although much remains to 
be done. Extending the application of the CFO Act to the White 
House would bring about accountability to financial operations 
in the White House.
    If there had been a Chief Financial Officer (CFO) and an 
Inspector General (IG) in the White House, the unorthodox 
accounting practices that prevailed in the White House Travel 
Office, which the White House used as justification for firing 
longtime employees, would not have been allowed to continue. A 
CFO would have provided the Travel Office managers with the 
guidance and expert advice they sorely needed, but never 
received. An IG would provide oversight and conduct audits and 
investigations to root out waste, fraud and abuse.
    The White House Communications Agency is one of the 
entities contained in the White House complex although it is 
not a division of the Executive Office of the President. It is 
staffed primarily with personnel from the Department of Defense 
and is under the operational direction and control of the White 
House Military Office, a White House entity that controls 
military activities that directly support the President. A 
recent IG audit requested jointly by this committee and the 
Department of Defense uncovered serious financial management 
problems in the White House Communications Agency.18
---------------------------------------------------------------------------
    \18\ The audit uncovered serious deficiencies at the White House 
Communications Agency. Accounting controls were poor. The agency had 
$14.5 million in invalidated obligations. It paid for equipment and 
services that are no longer necessary. It paid for items that never 
arrived, and occasionally paid for the same item twice. Only 17 percent 
of its bills are paid on time, causing taxpayers to pay interest and 
penalties on the remaining 83 percent. This information is found in 
Report No. 96-033, November 29, 1995, ``White House Communications 
Agency'' and Report No. 96-100, April 29, 1996, ``White House 
Communications Agency--Phase II,'' both issued by the Office of 
Inspector General, Department of Defense.
---------------------------------------------------------------------------
    Having both an IG and a CFO would act as an effective 
control to prevent incidences of waste, fraud and abuse, 
whether minor, as in petty stealing, or serious, as in 
destroying records of national interest.
    Once H.R. 3452 is enacted, the Executive Office of the 
President would have to prepare and submit to Congress annual 
audited financial statements and semiannual Inspector General 
reports. This would bring accountability and oversight of 
management practices in the White House in line with Executive 
Branch agencies who are already under the CFO Act and the 
Inspector General Act.
    The Inspector General Act of 1978 established Offices of 
Inspector General in certain Federal departments and agencies 
to protect the integrity of Federal programs and resources. IGs 
are appointed without regard to political affiliation and 
solely on the basis of a strong background in accounting, 
auditing, financial management, and investigations. They are 
provided the authority and independence to perform audits and 
investigations in order to combat waste, fraud, and abuse. They 
report to Congress on a semiannual basis.
    Today, 61 entities have Inspectors General, including all 
14 Cabinet level departments. In 1994, investigations and 
audits performed by Inspectors General led to more than 14,000 
successful criminal and civil prosecutions, returned $1.9 
billion to the U.S. Treasury, and resulted in potential 
efficiency recommendations that would save $24 billion.19
---------------------------------------------------------------------------
    \19\ ``A Progress Report to the President Fiscal Year 1994,'' 
President's Council on Integrity and Efficiency and the Executive 
Council on Integrity and Efficiency.
---------------------------------------------------------------------------
    The strength and effectiveness of the Inspector General Act 
lies in the significant authority and independence afforded IGs 
to conduct their audits and investigations. IGs have direct 
access to all records and information of the agency and possess 
the power to issue subpoenas and administer oaths for taking 
testimony. IGs have full control over hiring and managing their 
own staff and resources and can be removed only by the 
President or the agency head who appointed them.
    The White House Inspector General would have all the basic 
powers that other IGs are granted under the Inspector General 
Act of 1978. However, H.R. 3452 has several special provisions 
to protect the constitutional prerogatives and operational 
effectiveness of the Presidency.
    The first, Sec. 8(h)(a), ensures that the White House IG 
will not intrude in any areas relating to policy, intelligence, 
national security interests, or other sensitive matters. He or 
she would be under the authority, control and direction of the 
President while conducting audits and investigations that 
require information concerning ongoing criminal investigations 
or proceedings; the identity of confidential sources or 
protected witnesses; deliberations and decisions on policy 
matters, intelligence matters, and counterintelligence; and 
matters of national security interest.
    The second provision, Sec. 8(h)(b), ensures that the IG 
does not hinder the President in carrying out his or her 
constitutional responsibilities. The President would have 
authority to prohibit the White House IG from conducting an 
audit if by doing so the IG would interfere with the core 
constitutional responsibilities of the President.
    These provisions are intended to make sure that the 
establishment of an IG in the White House does not interfere 
with the constitutional responsibilities of the President, 
thereby violating the separation of powers doctrine. In an 
analysis provided for the record, the American Law Division of 
the Congressional Research Service concluded that the 
legislation ``does not appear to create an improper balance 
between Congress and the Executive Branch * * * (and) does not 
appear to aggrandize Congress' power at the expense of the 
President's power in an impermissible manner.'' 20
---------------------------------------------------------------------------
    \20\ Memorandum on ``Legal Analysis of Bill Which Establishes an 
Office of Inspector General in the Executive Office of the President,'' 
October 22, 1993, Congressional Research Service American Law Division.
---------------------------------------------------------------------------
    The committee's intent is to set up in the Executive Office 
of the President a strong, effective, and independent Office of 
Inspector General that balances the interests of both the 
President and the Congress. The President must be able to carry 
out his or her constitutional responsibilities without undue 
interference. The Congress must be able to conduct effective 
oversight of the Executive Branch and ensure that the President 
is accountable to the American people.
     In addition to the above provisions intended to enhance 
accountability and oversight, the bill also applies to the 
entire Executive Office of the President for the first time 
certain civil rights, labor and employment laws. Employees in 
four divisions of the Executive Office of the President are not 
widely covered by employment laws.
    The divisions are:
          The White House Office,
          The Office of Policy Development,
          The Executive Residence at the White House, and
          The Office of the Vice President.
    It is the committee's opinion that all employees should 
have access to the same rights and remedies, whether they are 
employed in the private sector, in Congress, or the White 
House. H.R. 3452 would complete the process begun by the 
Congressional Accountability Act and make these laws apply to 
the White House as they apply in the private sector and to 
Congress.
    H.R. 3452 is based on the same three principles which 
guided the drafters of the Congressional Accountability Act.
    1. If a law is right for the private sector, it is right 
for Congress.
    2. Congress will write better laws when it has to live by 
the same laws it imposes on the private sector.
    3. The separation of powers embodied in the Constitution 
must be respected.
    H.R. 3452 has been examined carefully and revised in some 
instances to ensure that it adheres to the third principle. 
Some provisions are different from those in the Congressional 
Accountability Act because of the intention of the committee to 
respect the separation of powers doctrine. The President would 
not be subject to injunctive relief. That is, the President 
could not be ordered to hire, promote, or reinstate an 
employee. The requirements of the Inspector General Act and the 
Chief Financial Officers Act have also been adapted so as not 
to impermissibly encroach on the President's core 
constitutional responsibilities or interfere with his carrying 
out those responsibilities. There is an exception to the 
definition of a covered employee to allow the continuation of 
the White House Volunteer Program.
    H.R. 3452 addresses the serious lack of accountability of 
regular, unpaid, informal Presidential advisers. It does this 
by amending the definition of ``special Government employee'' 
in section 202 of title 18, United States Code. All informal 
advisors, paid or unpaid, of the President, the Vice President, 
or their respective spouses, should be accountable to the 
public if they function in such a manner that they are 
performing a Federal function. The definition of a ``special 
Government employee'' in H.R. 3452 would cover all such 
instances.
    Public accountability is required for informal advisors. If 
an unpaid adviser participates in the Government's internal 
decision-making process, he or she should be held accountable 
to the American people, as are full-time or regular Federal 
employees. H.R. 3452 would bring under the definition of 
special Government employee (SGE) individuals who perform 
Federal functions in the White House or elsewhere in the 
Legislative or Executive Branches. They will therefore be 
required to adhere to conflict-of-interest and financial-
disclosure rules.
    The statutory definition of a special Government employee 
has not been materially revised since its enactment in 1962. 
Under it, a special Government employee is someone who is 
retained or appointed to perform duties on a full-time or part-
time basis with or without compensation for no more than 130 
days within 365 consecutive days. This definition does not give 
adequate notice of who is covered by the definition and 
therefore covered by conflict-of-interest and financial-
disclosure laws. Guidance issued by the Office of Government 
Ethics and the Department of Justice focuses on whether the 
advisor is in fact performing a Federal function, but there is 
no functional test in the statute. Neither the current law nor 
this Federal agency guidance adequately covers the various 
situations in which informal advisers in the White House have 
performed Federal functions and otherwise participated in the 
Government's decision- or policy-making process in recent 
years.
    At the subcommittee hearing held on June 25, 1996, 
witnesses concurred that legislative revision of the definition 
of special Government employee was needed. Witnesses suggested 
that the definition be revised to adopt a functional test, one 
that concentrates on the nature of the Federal service the 
advisor is providing, rather than on the advisor's outside 
interests and affiliations.
    The purpose for this legislative revision of the definition 
of a special Government employee is to accomplish three 
objectives. First, it attempts to capture informal or outside 
advisors who are not specifically appointed to advisory 
committees or part-time commissions as representatives of a 
non-Federal interest. Second, it uses a functional test 
consider the nature of the services the person is retained to 
provide. Third, it covers the entire Executive Branch. The 
revised definition of a special Government employee in H.R. 
3452, in the committee's opinion, achieves these objectives.

             II. Legislative Hearings and Committee Actions

    Representative Mica, Chairman of the House Subcommittee on 
Civil Service, Committee on Government Reform and Oversight, 
introduced H.R. 3452 on May 14, 1996. The Subcommittee on 
Government Management, Information and Technology, Committee on 
Government Reform and Oversight held a legislative hearing on 
H.R. 3452 on June 25, 1996.
    The bill was marked up in the Subcommittee on Government 
Management, Information, and Technology on July 16, 1996. Five 
amendments were offered and accepted. Ranking Minority Member 
Maloney offered an amendment to the section on the definition 
of special Government employee that captures informal outside 
advisers, uses a functional test based on the nature of the 
services provided, and covers the entire Executive Branch. 
Another amendment, offered by Subcommittee Chairman Horn, made 
three technical corrections. Ranking Minority Member Maloney 
offered an ``en bloc'' amendment to allow: the White House 
Volunteer Program to continue; consideration of political 
affiliation and political compatibility in hiring; and the 
elimination of reinstatement as a remedy for employees. All 
three amendments were considered and adopted on a voice vote, 
without objection. Two other amendments were offered by 
Representative Maloney but were withdrawn. One was an amendment 
to the section on financial officers, the other proposed 
changing the civil rights, labor and employment laws applied by 
H.R. 3452 from the private sector laws to the laws already 
applicable to Executive Branch agencies. The legislation, as 
amended, passed unanimously by voice vote.
    The House Committee on Government Reform and Oversight met 
on July 25, 1996 to consider H.R. 3452. Two amendments were 
offered. One, offered by Subcommittee Chairman Horn, deleted 
the provisions relating to the award of punitive damages. A 
second amendment, offered by Representative Charles F. Bass (R-
NH), would establish an Inspector General (IG) in the White 
House. Both amendments were considered and adopted by voice 
vote without objection. Representative Maloney offered an 
amendment to the Bass amendment, to establish an IG in the 
White House based on the existing requirements for an IG in the 
House of Representatives. It was considered and rejected by 
voice vote. The legislation, as amended, was favorably reported 
to the House of Representatives unanimously by voice vote.

             III. Committee Hearings and Written Testimony

    On June 25, 1996, the Subcommittee on Government 
Management, Information, and Technology held a hearing to 
solicit comments from interested parties on H.R. 3452, the 
``Presidential and Executive Accountability Act.'' Witnesses 
testified concerning the intent of the bill; the bill's 
objectives; the reason for various provisions; and the need for 
certain changes.
    The first panel consisted of Representatives Mica (R-FL) 
and Shays (R-CT). Mr. Mica drafted and introduced H.R. 3452. 
Mr. Shays drafted and introduced the Congressional 
Accountability Act (P.L. 104-1) and is a co-sponsor of H.R. 
3452.
    The second panel consisted of individuals familiar with the 
employment laws included in H.R. 3452 were: Gregory S. Walden, 
Counsel, Mayer Brown & Platt, and former Associate White House 
Counsel to President Bush; Sandra J. Boyd, Assistant General 
Counsel, Labor Policy Association; and Deanna R. Gelak, 
Director of Congressional Affairs, Society for Human Resource 
Management and Chair, Congressional Coverage Coalition. All 
confirmed the need for the provisions of H.R. 3452 to apply to 
the White House and those other divisions of the Executive 
Office of the President that are not widely covered by 
employment laws.
    The last panel consisted of Franklin S. Reeder, Director, 
Office of Administration, Executive Office of the President, 
who testified for the administration on the impact H.R. 3452 
would have on the Executive Office of the President.
    Subcommittee Chairman Horn opened the hearing by referring 
to what James Madison had written in the Federalist Papers 
Number 57. ``One of the strongest bonds by which human policy 
can connect the rulers and the people'' and restrain the rulers 
from ``oppressive measures'' is that ``they can make no law 
which will not have its full operation on themselves and their 
friends, as well as the in the great mass of society.'' He 
stated that H.R. 3452 would ensure that the White House has to 
live by the same laws imposed on the American people.
    Mr. Mica noted that the intent of the bill was that the 
White House should not have any special privileges from which 
the private sector or Congress does not benefit. Ms. Gelak 
expressed surprise that the White House is exempt from the laws 
that apply to private companies and now to Congress, such as 
the minimum wage and overtime requirements of the Fair Labor 
Standards Act.
    A discussion followed of whether current White House 
compliance with the Fair Labor Standards and the Family and 
Medical Leave Act was satisfactory. It complies as a matter of 
policy with the latter but is not required to do so by law.
    Mr. Reeder admitted that the four offices, the White House 
Office, the Office of the Vice President, the Office of Policy 
Development, and the Executive Residence of the White House, 
comprises approximately 550 employees, are not covered since 
they serve at the pleasure of the President. He stated that in 
these four offices, certain laws such as discrimination laws 
and the Occupational Safety and Health Act do apply as a matter 
of law. Others such as the Family and Medical Leave Act, apply 
as a matter of policy.
    Mr. Horn asked whether employees in the four offices not 
widely covered receive overtime. Mr. Reeder responded that 
probably about 80 of the 550 did and that the application of 
the Fair Labor Standards Act to all 550 would have a 
significant effect on operations, just as it has had in 
Congress.
    Ranking Minority Member Maloney indicated that H.R. 3452 
may have the unintended result of forbidding the President from 
using political affiliation as a criterion in hiring and may 
make it impossible for the President to ask advice from outside 
experts. She suggested adding a section based on Section 502 of 
the Congressional Accountability Act to consider party 
affiliation and political compatibility in hiring practices. 
Mr. Shays reiterated his support for hiring people based on 
party affiliation and said that should be included in the bill.
    Representative Maloney also focused on the provision in 
section 411 of the bill which would give courts or 
administrative bodies the authority to order the President to 
hire, reinstate, or promote an individual. She asked whether 
this was unconstitutional under the Appointments Clause of 
Article 1 of the Constitution concerning Presidential 
appointments. Mr. Mica responded that it was not the intent to 
interfere with the President's authority and said he would be 
willing to work on the legislation to ensure that it did not 
dictate to the President regarding hiring or firing practices.
    In his testimony, Mr. Walden suggested that the definition 
of special Government employee, in Section 4 of H.R. 3452 
should be revised to include a functional test.
    At the subcommittee hearing, Mr. Horn entered into the 
record additional written testimony that had been received by 
the subcommittee.21 Subsequent to the hearing, additional 
information was received from Gregory Walden and from Stephen 
D. Potts, Director, Office of Government Ethics, concerning 
changes to the definition of a special Government employee.
---------------------------------------------------------------------------
    \21\ This included a July 12, 1996 letter from the United States 
Office of Government Ethics on the definition of a ``special Government 
employee,'' and two memoranda from the Congressional Research Service 
American Law Division, one dated June 24, 1996, on constitutional 
issues relating to establishing a Chief Financial Officer in the 
Executive Office of the President, the other dated June 21, 1996, on 
the proposed provisions of H.R. 3452, the ``Presidential and Executive 
Office Accountability Act.''
---------------------------------------------------------------------------
    On July 25, 1996 the Committee on Government Reform and 
Oversight marked up H.R. 3452. Subcommittee Chairman Horn 
offered an amendment which deleted the ``punitive damages'' 
provisions from the bill. Representative Bass offered an 
amendment to add an IG to the White House, based on H.R. 3872, 
the ``White House Inspector General Act of 1996,'' which he had 
introduced on July 23, 1996. Both were adopted on a voice vote.
    Ranking Minority Member Maloney offered an amendment to the 
IG amendment, applying the existing House rules on the IG to 
the Executive Office of the President. She stated that the 
intent of H.R. 3452 was to treat Congress and the White House 
similarly. She made the point that no parallel requirement for 
Congress exists. The Senate has no IG and that the IG in the 
House is limited to financial audits, a provision which is 
already in H.R. 3452. The amendment was rejected on a voice 
vote.
    Representative Flanagan (R-IL) expressed his view that for 
Congress to set up an IG in the White House who would report 
directly to Congress was an usurpation of the power of the 
President and not within Congress's power to require. However, 
if such legislation is in fact required, he felt that the 
amendment offered by Representative Bass is the best available 
because it did have checks and limitations attached to it.
    At the committee mark-up, written testimony on 
constitutional issues related to establishing an Inspector 
General in the Executive Office of the President from the 
American Law Division of the Congressional Research Service and 
from the Office of Legislative Affairs, United States 
Department of Justice, was put into the record.22
---------------------------------------------------------------------------
    \22\ The memorandum, dated October 22, 1993, concluded that 
encroachment by the Legislative Branch on the President's authority 
must be balanced by the need of Congress to be able to conduct 
effective oversight over the Executive Branch, and, on balance, the 
bill did not impermissibly encroach on the President's constitutional 
authority. The letter from the United States Department of Justice 
Office of Legal Counsel, undated but received July 24, 1996, claimed 
that to establish an Inspector General in the Executive Office of the 
President violated the separation of powers between the Executive and 
Legislative Branches and was not balanced by the Congress' need for 
effective oversight.
---------------------------------------------------------------------------
    Written testimony was also received from the Office of 
Legislative Affairs, Department of Justice supporting the 
removal of the injunctive relief provisions from the 
bill.23
---------------------------------------------------------------------------
    \23\ Letter undated but received July 24, 1996, United States 
Department of Justice Office of Legislative Affairs.
---------------------------------------------------------------------------

                      IV. Explanation of the Bill

                              A. OVERVIEW

    H.R. 3452 addresses three areas of concern:
         The Executive Office of the President is not subject 
        to the same employment laws that cover private 
        businesses and the Congress;
         Problematic management practices in the Executive 
        Office of the President; and
         Informal advisors in the White House who are not 
        accountable to the American people.
    H.R. 3452 strengthens accountability and oversight at the 
White House. It applies to the White House the same laws that 
Congress made applicable to itself in the Congressional 
Accountability Act. It requires the President to appoint a 
Chief Financial Officer and an Inspector General for the 
Executive Office of the President. This improves financial 
management and ensures that waste, fraud and abuse can be 
prevented or detected speedily. It amends the definition of 
special Government employee and makes future employment laws 
applicable.
    As a result of comments during the subcommittee hearing, 
certain amendments were made to the bill. These include:
         The employment provisions do not encroach on the 
        President's authority to hire or fire by allowing 
        injunctive relief as a remedy. Criticism was received 
        on the injunctive relief provisions, especially as they 
        allow reinstatement as a remedy for an aggrieved 
        employee.
    The definition of ``special Government employee'' is 
clarified to cover Presidential advisors and their work with 
the President. The definition of ``special Government 
employee'' is tightened by including a functional test, thus 
ensuring that unpaid, informal advisers are accountable to the 
public. Such advisers would have to comply with the conflict-
of-interest statutes.
    Consideration of party affiliation and political 
compatibility in making hiring decisions is permissible.
    The acceptance of volunteer services, or occasional advice 
from experts, is not prohibited. An amendment was made adding 
volunteers to the exclusion allowed for interns.
    No punitive damages can be awarded, while allowing the full 
range of other remedies. An amendment was made eliminating the 
section which had added punitive damages to the Congressional 
Accountability Act and those sections in the bill that had 
allowed punitive damages.
    An Office of Inspector General shall be set up in the White 
House. At the committee mark-up, Chairman Clinger remarked that 
he ``was struck, during the course of the ongoing Travel Office 
investigation, by a remark from the Clinton White House. When 
they suspected * * * that there was mismanagement in their 
travel office, they really had no one to call, no one to carry 
out or explore the allegations that were made. They eventually 
called in the FBI and, conceivably, the IRS. The President * * 
* should have his own Inspector General, somebody that is 
selected by him and reportable to him to keep an eye on the 
management of the Executive Office * * * [The IGs] have 
promoted efficiency and effectiveness in the Federal 
Government, and * * * have literally saved the taxpayers 
billions of dollars.''
    At the subcommittee hearing Franklin Reeder claimed that 
the Executive Office of the President could not reorganize to 
have one Chief Financial Officer and produce one set of audited 
financial statements. At the subcommittee mark-up Ranking 
Minority Member Maloney offered and withdrew an amendment 
relating to the Chief Financial Officer Act which would have 
changed the requirement to allow decentralized financial 
management in each of the twelve divisions instead of 
centralized financial management under one CFO as the CFO Act 
envisaged. It is the committee's opinion that the Executive 
Office of the President can comply with the CFO requirements of 
H.R. 3452. When the Chief Financial Officers Act became law in 
1990, the report of the House Committee on Government 
Operations stated that:

          The Committee concluded that legislating a rigid 
        organizational structure for financial management 
        activities would probably deprive agency heads of the 
        flexibility required to tailor an organizational 
        structure that best supports their assigned missions 
        and goals, thereby hindering the overall objective of 
        improving financial management operations.24
---------------------------------------------------------------------------
    \24\ Report No. 101-818, Part 1, on H.R. 5687, the ``Chief 
Financial Officer Act of 1990,'' p.19, Committee on Government 
Operations, House of Representatives.

    Several departments include several different agencies as 
component units. The Departments of Agriculture, the Interior, 
and the Treasury are all examples of this kind of organization 
structure. They have succeeded in establishing a CFO structure 
that meets the requirements of the CFO Act. The committee is 
confident that the Executive Office of the President can do 
likewise, and has not changed the provisions regarding the 
Chief Financial Officer.

                     b. section-by-section analysis

Section 1. Short title; table of contents

    The short title of this Act is the ``Presidential and 
Executive Office Accountability Act.'' The table of contents 
lists the nine separate sections of the bill.

Section 2. Extension of certain rights and protections to Presidential 
        offices

    Subsection (a) amends title 3, United States Code, by 
adding at the end a new chapter 5, containing the following 
sections:

                    Subchapter I. General Provisions

Section 401. Definitions

    (1) ``Board'' means the Merit Systems Protection Board.
    (2) ``Covered employee'' means an employee of an employing 
office.
    (3) ``Employee'' includes applicants for employment and 
former employees.
    (4) ``Employing Office'' means each agency office, or other 
component of the Executive Office of the President; the 
Executive Residence at the White House; and the official 
residence of the Vice President.

Section 402. Application of laws

    The following laws are made applicable to the Executive 
Office of the President as prescribed in the Act:
          1. The Fair Labor Standards Act
          2. Title VII of the Civil Rights Act of 1964
          3. The Americans with Disabilities Act of 1990
          4. The Age Discrimination in Employment Act of 1967
          5. The Rehabilitation Act of 1973
          6. The Family and Medical Leave Act of 1993
          7. The Occupational Safety and Health Act of 1970
          8. Chapter 71 of title 5, regulating Federal Labor-
        Management Relations
          9. The Employee Polygraph Protection Act of 1988
          10. The Worker Adjustment and Retraining Notification 
        Act
          11. Chapter 43 of title 38, regulating veterans' 
        employment and reemployment rights.

           Subchapter II. Extension of rights and protections

                                 Part A

Section 411. Equal employment

    This section applies Title VII of the Civil Rights Act of 
1964, the Age Discrimination in Employment Act of 1967, the 
Rehabilitation Act of 1973, and Title I of the Americans with 
Disabilities Act of 1990 to covered employees. This covers 
White House employees and certain other Presidential 
appointees. It prohibits discrimination based upon race, color, 
religion, sex, national origin, age (within the meaning of the 
Age Discrimination in Employment Act), and disability (within 
the meaning of section 501 of the Rehabilitation Act and 
sections 102 through 104 of the Americans with Disabilities Act 
of 1990). Employees whose rights under these laws are violated 
are entitled to the same remedies as private sector employees, 
including, where applicable, liquidated damages, and 
compensatory damages, excluding as a remedy the right to be 
hired, reinstated, or promoted.
    H.R. 3452 originally would have given courts and 
administrative bodies the power to invoke the full range of 
remedies on behalf of a White House employee who could show 
discrimination. This would have included injunctive relief, 
that is, requiring that the employee be hired, reinstated, or 
promoted, as applicable. At the hearing, witnesses testified 
that giving courts or administrative bodies the power to order 
the President to rehire or promote an employee presented a very 
serious constitutional problem. The Office of Legal Counsel at 
the Department of Justice concluded in a letter received on 
July 24, 1996 that the original wording of H.R. 3452 would 
violate the Constitution based on the powers given the 
President, the Appointments Clause of Article 2 of the 
Constitution, and on the separation of powers doctrine.
    Accordingly, H.R. 3452 was amended to limit the ability of 
courts to order the President to hire, reinstate, or promote 
any individual, while leaving intact a full range of other 
remedies available to aggrieved employees, such as back pay or 
compensatory pay. It is very narrowly drawn so as not to touch 
the range of substantive worker protections and procedural 
safeguards, it merely removes the single remedy, injunctive 
relief, that could violate the Constitution.
    This section also contains special definitions of ``covered 
employee'' and ``employing office'' to ensure coverage of all 
Presidential employees who were previously covered by section 
320 of the Government Employee Rights Act of 1991, which is 
repealed.
    Transition rules preserve the procedures and remedies of 
that Act for complaints filed under that Act before the 
effective date of this section.
    Covered employees do not include individuals whose 
appointment is made by and with the advice and consent of the 
Senate, individuals appointed to advisory committees, or 
members of the uniformed forces.

Section 412. Family and Medical Leave Act of 1993

    This section applies the rights and protections of sections 
101 through 105 of the Family and Medical Leave Act of 1993 to 
White House employees who have been employed by an ``employing 
office'' for 12 months and for at least 1,250 hours of 
employment during the previous 12 months. Employees whose 
rights are violated under this section are entitled to the same 
remedies, including liquidated damages, as private sector 
employee, excluding the right to be hired, reinstated, or 
promoted.

Section 413. The Fair Labor Standards Act of 1938

    Under this section, White House employees would be 
protected by the Fair Labor Standards Act, which regulates 
minimum wages and overtime pay. H.R. 3452 provides an exception 
to the requirements of the Fair Labor Standards Act (which 
prohibits individuals from volunteering their services without 
receiving compensation) for interns and volunteers. The 
exception states that interns and volunteers are not covered 
employees under the Fair Labor Standards Act.
    The White House Volunteer Program has hundreds of 
participants. Tens of thousands of individuals over the decades 
have contributed their time and energy to the White House, in 
both Democratic and Republican Administrations. Most of these 
volunteers are senior citizens, school children, or Boy or Girl 
Scouts. State and local governments, as well as Federal 
institutions such as the National Park Service and the 
Smithsonian Institution, are already permitted to accept 
volunteer services. Allowing volunteers leaves the White House 
on the same footing as these other entities.
    Except for employees whose schedules directly depend on the 
schedules of the President or Vice President, employees may not 
receive compensatory time in lieu of overtime. The remedy for a 
violation of the Fair Labor Standards Act is the same as that 
available to private sector employees, including liquidated 
damages; however, it excludes the right to be hired, 
reinstated, or promoted.
    The President is required to issue regulations to implement 
this section that are the same as regulations issued by the 
Secretary of Labor, unless the President determines for good 
cause shown and stated, that modification of the Secretary's 
regulations would be more effective for implementing the rights 
and protections under this section. The President's regulations 
shall also include provisions for employees whose schedules 
depend directly on his or the Vice President's schedule that 
are comparable to regulations issued by the Secretary covering 
employees who have irregular work schedules.

Section 414. The Employee Polygraph Protection Act of 1988

    This section extends the protections of paragraphs (1), 
(2), and (3) of section 3 and the waiver provision of section 
6(d) of the Employee Polygraph Protection Act of 1988 to White 
House employees. The White House would not be prohibited from 
requesting an employee to submit to a polygraph in connection 
with an ongoing investigation. The remedy for violations would 
be the same as provided for in the Employee Polygraph 
Protection Act for employees in the private sector, excluding 
the right to be hired, reinstated, or promoted. The President 
is required to issue regulations to implement this section that 
are the same as regulations issued by the Secretary of Labor, 
unless the President determines for good cause shown and 
stated, that modification of the Secretary's regulations would 
be more effective for implementing the rights and protections 
under this section.

Section 415. The Worker Adjustment and Retraining Notification Act

    This section provides that no employing office is allowed 
to close or order mass layoffs without giving 60 days notice to 
representatives of covered employees. However, there is an 
exception in the event that a President who does not succeed 
himself or herself fails to issue the required notices. In such 
an event no notice or waiting period is required with respect 
to the separation of an individual if such separation occurs 
pursuant to a closure or mass layoff ordered after the term of 
the new President commences. The individual is described as any 
covered employee serving pursuant to an appointment made during 
the term of office of the previous President, or any term, 
earlier than the term referred to above, during which such 
previous President served as President or Vice President. The 
remedy for a violation of this section is the same as would be 
provided under paragraphs (1), (2), and (4) of section 5(a) of 
the Worker Adjustment and Retraining Notification Act, but 
excluding the right to be hired, reinstated, or promoted.
    The President is required to issue regulations to implement 
this section that are the same as regulations issued by the 
Secretary of Labor, unless the President determines for good 
cause shown and stated, that modification of the Secretary's 
regulations would be more effective for implementing the rights 
and protections under this section.

Section 416. Veterans' Employment and Reemployment

    This section extends the protections of subsections (a) and 
(b) of section 4311, and sections 4312, 4313, 4316, 4317, and 
4318, of title 38, United States Code to eligible employees. An 
eligible employee is a covered employee performing service in 
the uniformed services within the meaning of 38 U.S.C. 
Sec. 4303(13) whose service has not been terminated under 38 
U.S.C. Sec. 4304. The remedy for a violation is the same as is 
provided under 38 U.S.C. Sec. 4323(c)(1), (2)(A), and (3), but 
excluding the right to be hired, reinstated, or promoted.
    The President is required to issue regulations to implement 
this section that are the same as regulations issued by the 
Secretary of Labor, unless the President determines for good 
cause shown and stated, that modification of the Secretary's 
regulations would be more effective for implementing the rights 
and protections under this section.

Section 417. Intimidation or reprisal prohibited

    This section prohibits an employing office from 
intimidation or reprisal against any covered employee because 
the covered employee has opposed any practice made unlawful by 
the provisions of this chapter, or because the covered employee 
has initiated proceedings, made a charge, or in any way 
participated in a hearing or other proceeding under this 
chapter. A violation can be remedied by any legal remedy 
available to redress the practice which the employee opposes or 
the violation of law which caused him or her to initiate 
proceedings. It excludes the right to be hired, reinstated, or 
promoted.

                                 Part B

Section 420. Public access provisions of the Americans with 
        Disabilities Act of 1990

    This section applies the public access provisions of the 
Americans with Disabilities Act of 1990 to the White House and 
its grounds, the Old Executive Office Building, the New 
Executive Office Building, and any other facilities that house 
employees of the Executive Office of the President, to the 
extent that public services, programs, or activities are 
provided. The remedy and enforcement mechanisms for a violation 
are those available under sections 203 or 308 of the Americans 
with Disabilities Act of 1990. However, section 411 of this Act 
provides the exclusive remedy for employment discrimination.

                                 Part C

Section 425. Occupational Safety and Health Act of 1970

    This section requires employing offices and employees to 
comply with section 5 of the Occupational Safety and Health Act 
of 1970 (OSHA) and provides for remedies under section 13(a) of 
that Act. The Secretary of Labor has the same authority to 
conduct inspections and investigations as he has with respect 
to private employers under subsections (a), (d), (e), and (f) 
of section 8 of OSHA; to issue citations and notifications in 
accordance with sections 9 and 10 of OSHA; and to grant 
variances under sections 6(b)(6) and 6(d). Administrative 
adjudications of disputes under this section are available 
before the Occupational Safety and Health Review Commission, 
with judicial review by the United States Court of Appeals for 
the Federal Circuit.
    The President is required to issue regulations to implement 
this section that are the same as regulations issued by the 
Secretary of Labor, unless the President determines for good 
cause shown and stated, that modification of the Secretary's 
regulations would be more effective for implementing the rights 
and protections under this section. This section takes effect 
one year after the enactment of this Act. Where new 
appropriations are necessary to correct a violation, the 
correction must be made as soon as possible but not later than 
the end of the fiscal year following the citation or final 
order.

                                 Part D

Section 430. The Federal Labor-Management Relations Act

    This section applies the Federal Labor Management Relations 
Act to the employing offices and covered employees, including 
administrative proceedings before the Federal Labor Relations 
Authority. Judicial review shall be by the United States Court 
of Appeals for the Federal Circuit.
            Subsection (a). Labor-management rights
    This section makes it clear that covered employees shall 
not have the right to be reinstated. It takes effect one year 
after the date of enactment.

                                 Part E

Section 435. Generally applicable remedies and limitations

    Covered employees who prevail in any action brought under 
this Act, or a qualified person with a disability who prevails 
with respect to a claim under section 420, may be entitled to 
attorney fees, expert fees, and costs in accordance with 
section 706(k) of the Civil Rights Act of 1964. Interest shall 
also be available under section 717(d). This Act does not allow 
any punitive damages to be awarded. The administrative and 
judicial procedures established by this Act are the exclusive 
procedures for remedying violations of the Act. However, 
covered employees who are veterans may also utilize the 
provisions of chapter 43 of title 38, United States Code, that 
are applicable to them. Covered employees may not receive a 
remedy under part A of title II unless they have exhausted the 
counseling and mediation procedures established pursuant to 
section 452 of this Act.
    Except where inconsistent with definitions and exemptions 
provided in this Act, the definitions and exemptions in the 
laws made applicable by this Act shall apply. However, 
provisions in such laws that limit coverage based on size, 
number of employees, amount of business transacted, or other 
measures shall not apply, except for paragraphs (2) and (3) of 
section 2(a) of the Worker Adjustment and Retraining 
Notification Act.
    For the purposes of this section, the definitions of 
``employing office'' and ``covered employee'' in section 411 
shall apply with respect to any matter to which section 411 
relates.

    Subchapter III. Administrative and judicial dispute-resolution 
                               procedures

Section 451. Procedures for consideration of alleged violations

    The procedures under this Act for remedying violations of 
part A of title II consist of counseling and mediation and the 
election of either an administrative remedy or a civil action 
remedy before a United States district court.

Section 452. Counseling and mediation

    The President is required to establish by regulation 
procedures substantially similar to those under sections 402 
and 403 of the Congressional Accountability Act of 1995 for 
counseling and mediation with respect to alleged violations of 
part A of title II. These procedures must be exhausted before 
the covered employee may pursue any further form of relief.

Section 453. Election of proceeding

    After completing counseling and mediation, a covered 
employee must elect either an administrative remedy or a civil 
action before a United States district court. The election must 
be made no later than 90 days after the employee receives 
notice of the end of the period of mediation, but no sooner 
than 30 days after receiving such notice.

Section 454. Appropriate agencies

    Complaints alleging violations of section 411 (or any 
related retaliation under section 417) shall be filed with the 
Equal Employment Opportunity Commission unless they involve a 
``mixed case,'' and shall be processed under the same 
administrative procedures as complaints filed by any other 
Federal employee. Some cases are ``mixed cases,'' involving 
both an action that an employee of an executive agency could 
file with the Merit Systems Protection Board and an allegation 
of discrimination under section 411 (or any related retaliation 
under section 417). Such cases shall be filed with the Board 
and processed in accordance with the mixed case procedures in 5 
U.S.C. Sec. 7702, except that judicial review shall lie with 
the United States Court of Appeals for the Federal Circuit 
rather than a Federal district court. Complaints alleging 
violations of any other section of part A of subchapter II 
shall be filed with the Merit Systems Protection Board.

Section 455. Judicial review

    Judicial review of administrative decisions under this act 
shall lie with the United States Court of Appeals for the 
Federal Circuit.

Section 456. Civil action

    The district courts of the United States shall have 
jurisdiction of any civil action brought under this Act. The 
defendant in such an action shall be the employing office 
alleged to have committed the violation or in which it is 
alleged to have occurred. Covered employees have the same right 
to a jury trial as a private sector employee. In any case under 
section 201, the court shall not inform the jury of the maximum 
amount of compensatory damages available under section 
411(b)(1) or 411(b)(3).

Section 457. Judicial review of regulations

    The court may review the validity of any regulation issued 
under this Act that is challenged in an action under section 
455 or 456 in accordance with 5 U.S.C. Sec. 706(2)(A)-(D). If 
the court determines that a regulation is invalid, it shall 
apply, to the extent necessary and appropriate, the most 
relevant substantive executive agency regulation promulgated to 
implement the statutory provision with respect to which the 
challenged regulation was issued. Except as provided by this 
Act, the validity of regulations issued under this Act is not 
subject to judicial review.

Section 458. Other judicial review prohibited

    The judicial review provided by this Act shall be the 
exclusive means of judicial review of matters arising under 
this Act.

Section 459. Effect of failure to issue regulations

    If the President has failed to issue a regulation required 
by this Act, the administrative agency or court shall apply, to 
the extent necessary and appropriate, the most relevant 
substantive agency regulation promulgated to implement the 
statutory provision at issue in the proceeding.

Section 460. Expedited review of certain appeals.

    This section establishes expedited procedures for Supreme 
Court review of court rulings on the constitutionality of any 
provision of this Act. Such a ruling may be appealed directly 
to the Supreme Court, and the Supreme Court is required to 
accept jurisdiction unless it has previously ruled on the 
question, advance the appeal on its docket, and expedite the 
appeal to the greatest extent possible.

Section 461. Payments

    Awards in and settlements of an action that commenced in a 
Federal district court shall be paid from the fund established 
by 31 U.S.C. Sec. 1304. Awards in and settlements of an action 
that arise from an administrative proceeding under this Act 
shall be paid out of amounts otherwise appropriated or 
available to such office.

Section 462. Confidentiality

    Counseling and mediation under this Act shall be strictly 
confidential.

Section 463. Definitions

    In applying subchapter III, ``employing office'' and 
``covered employee'' shall have the meaning given in section 
411 when that section is involved.

                     Subchapter IV. Effective Date

Section 471. Effective Date

    Chapter 5 shall take effect one year after the date of the 
enactment of this Act. However, this section also requires that 
regulations needed to implement it shall be in effect on the 
effective date and makes a technical amendment to the table of 
chapters for title 3, United States Code.

Section 3. Chief Financial Officer

    The President is required to appoint a Chief Financial 
Officer and a Deputy Chief Financial Officer for the Executive 
Office of the President. Both the Chief Financial Officer and 
the Deputy Chief Financial Officer shall meet the 
qualifications standards described in 31 U.S.C. Sec. 901(a)(3). 
The Chief Financial Officer shall perform the same functions as 
a Chief Financial Officer under 31 U.S.C. Sec. 902. The 
Director of the Office of Management and Budget shall prescribe 
regulations necessary to ensure that, to the extent practicable 
and appropriate, the Executive Office of the President shall be 
treated in the same way as an agency described in 31 U.S.C. 
Sec. 901(b).
    This section also makes technical and conforming amendments 
to 31 U.S.C.Sec. 503(a)(7) and (8). These exempt the Chief 
Financial Officer and Deputy Chief Financial Officer appointed 
under this Act from the requirements that the Director of the 
Office of Management and Budget establish qualification 
standards for agency Chief Financial Officers and Deputy Chief 
Financial Officers and advise the agency head on the selection 
of Deputy Chief Financial Officers. The President is also 
required to designate an employee of the Executive Office of 
the President as the ``agency head'' for the purposes of 
implementing 31 U.S.C. Sec. 902.

Section 4. Amendment to Definition of special Government employee

    This section amends the definition of special Government 
employee in subsection 202(a) of title 18, United States Code. 
This amendment is advisable, the committee believes, because 
hearings before the House Committee on Government Reform and 
Oversight on the ``Travelgate'' matter have uncovered 
allegations that certain advisers to the President may have 
used their position in the White House and the staff of the 
Executive Office of the President to promote their own business 
interests, by encouraging the firing of the White House Travel 
Office staff. The committee believes that such advisers should 
have been considered as special Government employees under the 
current tests used to interpret section 202. However, the 
committee deems it advisable to amend the statute to make it 
completely clear that, in the future, similarly situated 
informal advisers would be special Government employees and 
therefore subject to conflict-of-interest and financial-
disclosure laws.
    Under this amendment, an individual would meet the 
definition if two criteria are present. The first is that the 
individual was retained, designated, appointed, or employed in 
the Legislative or Executive Branch of the United States 
Government, or in any independent agency of the United States, 
to perform a Federal function, (or in the government of the 
District of Columbia to perform a District of Columbia 
function). The second is that the individual, at the time of 
retention, is expected to perform temporary duties on a full-
time or intermittent basis for a period not to exceed 130 days 
during any period of 365 consecutive days.
    Subsection 202 (c) is amended to define ``officer'' or 
``employee'' and ``Federal or District function.'' Such a 
function is defined as including the following activities:
          Supervising, managing, directing, or overseeing a 
        Federal or District of Columbia officer or employee in 
        the performance of such officer's or employee's 
        official duties.
          Providing regular advice, counsel, or recommendations 
        to the President, the Vice President, a Member of 
        Congress, or any other Federal or District of Columbia 
        officer or employee, or conducting meetings involving 
        any of those individuals, as part of the Federal or 
        District of Columbia government's internal deliberative 
        process.
          Obligating funds of the United States or the District 
        of Columbia.
    A person who is directing, supervising, or organizing 
Federal or District of Columbia employees or conducting 
meetings as described above can clearly be seen as performing a 
Federal function. It is a more difficult matter to determine 
when a person giving advice is also performing a Federal 
function. The following reflects the intent of the committee in 
how the functional test should be applied.
    The functional test would not cover the chairman of the 
Democratic National Committee or Republican National Committee, 
or other political adviser, including the President's pollster, 
so long as the political or polling advice is not regularly 
dispensed in the context of a meeting or discussion concerning 
official Government policy that is part of the Government's 
internal deliberative process.
    By ``internal,'' the committee's intent is to exclude 
advice given in a public forum.
    By ``deliberative process,'' the committee's intent is to 
exclude one-on-one discussions with the President, Vice 
President, or similar high-level official. One example would be 
a meeting with the head of the AFL-CIO or Chamber of Commerce, 
where no Government decision is being made or discussed among 
Government employees with decision-making authority or other 
responsibility concerning the matter. This would allow others 
to be present when the head of the AFL-CIO meets with the 
President.
    By ``regular,'' the committee's intent is to exclude any 
person from the coverage of the term who participates in only a 
single meeting, or only rarely meets, with the President or 
other Federal official.
    The committee does not intend to make any change in the 
substance of the coverage of Sec. 202(a) to military personnel.
    A new subsection 202(f) is added. It serves two purposes. 
First, it continues the present exemption that states that 
enlisted members of the Armed Forces are not to be considered 
``officers or employees'' or ``special Government employees'' 
for purposes of these conflicts of interest statutes. Second, 
it includes in the statute for the first time language 
reflecting longstanding interpretations that a special 
Government employee does not include an individual who is 
retained specifically to act as a representative of a non-
Federal or non-District of Columbia interest on a Government 
advisory body. Such a body includes an advisory committee 
established pursuant to the Federal Advisory Committee Act, 
\25\ or any similarly established committee whose meetings 
generally are open to the public.
---------------------------------------------------------------------------
    \25\ 5 U.S.C. App. 1.
---------------------------------------------------------------------------

Section 5. Applicability of future employment laws

    Future Federal laws regulating private sector employment 
shall apply to ``employing offices'' and ``covered employees'' 
under section 401 unless such laws expressly exempt the White 
House and cite this section.

Section 6. Repeal of Section 320 of the Government Employee Rights Act 
        of 1991

    This section repeals section 320 of the Government Employee 
Rights Act of 1991, effective one year after the enactment of 
this Act. Complaints filed pursuant to the Government Employee 
Rights Act of 1991 before the effective date of this Act shall 
be processed in accordance with that Act.

Section 7. Political Affiliation

    This section allows for consideration of political 
affiliation in the hiring process. H.R. 3452 originally did not 
include language giving the President the right to hire and 
fire based on party affiliation and political compatibility. 
The Congressional Accountability Act, upon which H.R. 3452 is 
based, did include this specific provision. An amendment was 
added at the subcommittee hearing to add a new section to the 
bill, modeled on the Congressional Accountability Act, to 
clarify the intent of the bill by explicitly allowing 
consideration of political affiliation in hiring. This 
provision is intended to make it clear that considering 
political affiliation in hiring is not a violation of section 
411 of this Act with respect to employment decisions.

Section 8. Establish an Office of Inspector General in the Executive 
        Office of the President

            Subsection 8(a)
    This subsection amends Section 11 of the Inspector General 
Act of 1978 to establish an Office of Inspector General in the 
Executive Office of the President.
            Subsection 8(b)
    The President is required to appoint an Inspector General 
not later than 120 days after the effective date of subsection 
8(d).
            Subsection 8(c)
    This adds a subsection to the applicable section of the 
U.S. Code, and renumbers the succeeding subsections. Subsection 
8H includes special provisions concerning the Inspector General 
of the Executive Office of the President. It specifies that the 
IG will be under the direction and control of the President 
with respect to activities which could be construed as 
interfering with the President's constitutional authority or 
the national interest. The President can prohibit the IG from 
carrying out investigative activity with respect to such 
information. He can do this if the disclosure of the 
information would interfere with the core functions of the 
constitutional responsibilities of the President; and if such 
prohibition is necessary to prevent disclosure of that 
information.
    The President must notify the IG of his or her decision 
within 30 days. In turn, within 30 days after receiving the 
notice, the IG must transmit a copy of the notice to each of 
the chairmen and ranking minority members of the House 
Committee on Government Reform and Oversight, the Senate 
Committee on Governmental Affairs, and other appropriate 
committees or subcommittees of Congress.
    The IG must submit semiannual reports to the President as 
other IGs do to their department or agency heads. The report 
must then be transmitted to Congress within 30 days after 
receipt.
            Subsection 8(d). Effective date
    The provisions of this subsection shall take effect on 
January 21, 1997.

                       V. Compliance With Rule XI

    Pursuant to rule XI, clause 2(l)(3)(A), of the Rules of the 
House of Representatives, under the authority of rule X, clause 
2(b)(1) and clause 3(f), the results and findings for those 
oversight activities are incorporated in the recommendations 
found in the bill and in this report.

                  VI. Budget Analysis and Projections

    This act provides for new authorizations. Consequently the 
provisions of section 252 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (pay-as-you-go-procedures) are 
applicable.

         VII. Cost Estimate of the Congressional Budget Office

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 5, 1996.
Hon. William F. Clinger, Jr.,
Chairman, Committee on Government Reform and Oversight, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3452, the 
Presidential and Executive Office Accountability Act.
    Becasue enacting this legislation could affect direct 
spending, pay-as-you-go procedures would apply.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    1. Bill number: H.R. 3452.
    2. Bill title: Presidential and Executive Office 
Accountability Act.
    3. Bill status: As ordered reported by the House Committee 
on Government Reform and Oversight on July 25, 1996.
    4. Bill purpose: H.R. 3452 would apply 11 employee 
protection laws to the 12 agencies and offices that comprise 
the Executive Office of the President (EOP). The bill also 
would establish within the EOP both a chief financial officer 
(CFO) and an Office of the Inspector General (OIG), and would 
amend the definition of special government employee. The 
application of the employee protection laws is nearly identical 
to Public Law 104-1, which applied these same laws to the 
legislative branch.
    The creation of the OIG would not take effect until January 
21, 1997. The extension of the workplace protection laws to EOP 
employees and the repeal of section 320 of the Government 
Employee Rights Act of 1991 would take effect one year after 
enactment. All other provisions would take effect upon 
enactment.
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing H.R. 3452 would cost about $2 million in fiscal 
year 1997, about $3 million in fiscal year 1998, and about $4 
million in each of fiscal years 1999 through 2002. These costs 
would result primarily from applying the Inspector General (IG) 
Act to the EOP. They would also include costs for applying the 
CFO Act in the EOP, applying both the Fair Labor Standards Act 
of 1938 (FLSA) and labor-management relations provisions to 
Title 3 employees, developing regulations to implement the 
employee protection laws, establishing administrative and 
judicial dispute-resolution procedures, and surveying and 
modifying EOP facilities to conform with the Americans with 
Disabilities Act (ADA) requirements. The estimated budgetary 
effects of the bill are summarized in the following table.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION                                  
                                                                                                                
Estimated authorization level.............................        2        3        4        4        4        4
Estimated outlays.........................................        2        3        4        4        4        4
----------------------------------------------------------------------------------------------------------------

    6. Basis of estimate:
    Office of the Inspector General.--The primary budgetary 
impact of H.R. 3452 would stem from applying the Inspector 
General Act of 1978 to the EOP. Based on the costs of the 
existing OIGs, CBO estimates that the new OIG would cost less 
than $0.5 million in fiscal year 1997, between $1 million and 
$1.5 million in fiscal year 1998, and between $1.5 million and 
$2 million each year thereafter. The estimate assumes that the 
inspector general would be appointed and approved by the Senate 
by the end of fiscal year 1997, and that to meet the act's 
responsibilities for conducting audits and investigations, the 
office would require about 12 employees, with additional costs 
to contract with a private accounting firm to audit the EOP's 
annual financial statements.
    Chief Financial Officer.--The bill also would apply, to the 
extent practicable and appropriate, the provisions of the Chief 
Financial Officers Act to the EOP. The bill would require the 
Director of the Office of Management and Budget (OMB) to 
prescribe the necessary regulations to implement the CFO Act in 
the EOP. Based on the experience of existing agency CFOs and on 
information provided by the Office of administration, OMB, and 
the General Accounting Office, CBO estimates that the CFO 
provisions would increase costs by less than $500,000 a year, 
beginning in fiscal year 1997. This estimate assumes that the 
President would appoint the CFO and deputy CFO by the middle of 
fiscal year 1997 and that either OMB or the Office of 
Administration would perform the main financial reporting 
responsibilities required under the CFO Act.
    Fair Labor Standards Act.--For the most part, employees of 
the EOP, who are classified in one of two categories, are 
already covered by the employee protection laws. About 550 EOP 
employees--including individuals that work in the Office of the 
White House, the Office of the Vice President, the Executive 
Residence, and the Office of Policy Development--are covered by 
Title 3 of the U.S. Code. Approximately 1,150 other EOP 
employees are covered by Title 5 of the U.S. Code. Of the 11 
laws cited in H.R. 3452, Title 3 employees are already 
covered--either by law or a as matter of policy--by seven. The 
four exceptions are the Employee Polygraph Protection Act of 
1988, the FLSA, the Worker Adjustment and Retraining 
Notification Act, and the labor-management provisions of 
Chapter 71 of Title 5. Title 5 employees are covered by 10 of 
the 11 laws, with the lone exception of the Employee Polygraph 
Protection Act of 1988.
    The FLSA requires employers to pay at least the minimum 
wage specified in law and to compensate certain employees for 
overtime in excess of 40 hours in one week. H.R. 3452 would 
require EOP employers to pay affected Title 3 employees 
according to those standards. (The bill would exclude interns 
and volunteers from this coverage.) For employees whose work 
schedules directly depend upon the schedule of the President or 
Vice President, the bill would allow EOP employers to grant 
compensatory time off at a rate of one and a half hours per 
hour of overtime worked in lieu of overtime pay if the employee 
so chooses. Thus, this provision would result in some 
combination of increased spending by EOP employers because of 
overtime pay, and increased time off for certain employees who 
opt for compensatory time instead of overtime pay. The impact 
of FLSA ultimately would depend on how the President defines 
which employees are to be covered by FLSA and which covered 
employees qualify for compensatory time off, as well as whether 
employees would choose overtime pay or compensatory time off.
    Of the four Title 3 agencies, only the Executive Residence 
regularly pays overtime to its employees. Thus, any effect of 
this provision would be on the approximately 450 other 
employees covered by Title 3. Based on the Department of Labor 
classifications for exempt employees and on information 
provided by the Office of Administration, we expect that about 
40 percent of the remaining title 3 employees--predominantly in 
the Office of the White House--would be eligible for overtime 
pay. The three offices do not know how much overtime these 
employees currently work. However, assuming that the 
individuals, on average, work no more than two to three hours 
of overtime a week, the total costs to the EOP to comply with 
the provision would still be less than $500,000 a year through 
fiscal year 2002.
    Federal Labor-Management Relations.--The bill would extend 
to Title 3 employees the same right that Title 5 employees 
currently have to organize, form bargaining units, select a 
union representative, negotiate with employers, and bring 
grievances to the Federal Labor Relations Authority (FLRA). If 
employees in the offices of the White House, vice President, 
Executive Residence, and Policy Development elected to organize 
and force their employers to negotiate with various bargaining 
units, the employers would incur additional staff costs in 
order to meet their responsibilities under the law. The 
employees within the Title 5 agencies of the EOP have so far 
elected not to form a union. Based on the experience of federal 
agencies whose employees have elected to unionize, it appears 
that an agency with one hundred to several hundred employees 
could spend $100,000 to $200,000 per year for legal assistance 
and part of the time of personnel officers who must work with 
the bargaining units. CBO cannot predict to what extent Title 3 
employees would decide to take advantage of their opportunity 
to organize; however, we do not expect that the costs would 
exceed $500,000 in any one year.
    Administrative and Judicial Dispute-Resolution 
Procedures.--H.R. 3452 would require the President to establish 
procedures substantially similar to those included in the 
Congressional Accountability Act for EOP employees to file 
complaints and answer questions and to receive counseling and 
mediation for alleged violations of the bill's employee 
protection laws. Depending on the outcome of the counseling and 
mediation steps, an employee may elect to further pursue the 
dispute in either an administrative hearing before the Merit 
Systems Protection Board (MSPB), or in the case of a violation 
of civil rights, the Equal Employment Opportunity Commission 
(EEOC), or by filing suit in a district court. Title 5 
employees are already entitled to an administrative or judicial 
hearing, as well as to a judicial appeal. Also, the Office of 
Administration already provides some counseling and assistance 
to EOP employees. Thus, based on the Office of Compliance's 
brief experience with the legislative branch, CBO estimates 
that complying with the bill's dispute resolution procedures 
would cost the EOP between $500,000 and $1 million each year, 
beginning in fiscal year 1998. This estimate assumes six to 
eight additional full-time employees, which would include 
counselors, attorneys, and support staff, as well as additional 
costs for outside mediators.
    Other Costs.--Most of the laws that would be applied by 
H.R. 3452 already govern employees of the EOP either through 
existing statute or as a matter of policy. In general, 
therefore, they are not likely to result in additional costs. 
However, requiring that EOP buildings conform with ADA 
standards would likely result in some minor modifications from 
the current Uniform Federal Accessibility Standards (UFAS), 
such as a greater use of signs with printing in Braille and the 
provision of text telephone and other devices to enhance 
communication access. To ensure compliance equivalent to 
existing private-sector requirements, either the General 
Services Administration (GSA), which controls the EOP 
properties, or an outside company would need to survey the 
properties and make any necessary modifications. Based on 
information provided by GSA, which has a revolving five-year 
plan to make necessary ADA modifications in GSA-controlled 
space, and based on the experience of the legislative branch, 
we do not expect such costs to be significant.
    H.R. 3452 also would clarify the definition of special 
government employee (SGE) to both include certain advisors not 
covered under current law, as well as to exclude other 
advisors. SGEs are individuals who provide temporary services 
to the federal government, such as an independent counsel or a 
member of a member of a federal advisory council. These 
individuals are required to submit forms reporting on their 
finances and on potential conflicts of interest. On the one 
hand, the bill would clarify that individuals who provide 
regular advice or counsel to the President, Vice President, a 
Member of Congress, or a federal judge are to be considered 
SGEs. On the other hand, the bill would clarify that an 
individual who serves on a federal committee with solely a 
nonfederal interest is not to be considered an SGE. Based on 
information provided by the Office of Government Ethics, we 
expect that the changes would have little impact on both the 
total number of individuals classified as SGEs and on the total 
costs to agencies and Congressional offices to review any 
additional disclosure forms that might arise from the bill's 
clarification.
    Finally, the bill would require the President to develop 
regulations for implementing many of the bill's employee 
protection laws. Based on the experience of the Office of 
Compliance, which is still in the process of writing its 
regulations, CBO estimates that the largely one-time cost to 
the EOP would be between $500,000 and $1 million in fiscal year 
1997. This estimate assumes that this task would require the 
equivalent of seven to 10 full-time employees for up to 12 
months.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
H.R. 3452 could affect direct spending. Thus, pay-as-you-go 
procedures would apply to the bill.
    The bill would allow a district court to order a remedy 
that could include compensation. Under H.R. 3452, after an 
employee has exhausted the procedures for counseling and 
mediation, the individual may elect either an administrative or 
a judicial hearing. In the case of an administrative hearing 
before either the MSPB, or if the complaint alleges 
discriminatory practice, the EEOC, the employee could receive 
compensation if successful, However, the bill would require 
that any such payment be made out of an agency's appropriated 
funds. In the case of a judicial hearing, the payment would be 
made from the Claims, Judgments, and Relief Acts fund, a 
mandatory account. Title 5 employees are already covered by 10 
of the bill's 11 workplace laws and can seek judicial relief 
under current law. Title 3 employees are covered by 7 of these 
laws, and only the application of FLSA is likely to affect 
awards of compensation to them. Therefore, we expect that H.R. 
3452 would not result either in a significant increase in 
complaints or in direct spending. The estimated pay-as-you-go 
impact is summarized in the following table.

                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                                 1996     1997     1998 
------------------------------------------------------------------------
Change in outlays............................        0        0        0
Change in receipts...........................        0       NA        0
------------------------------------------------------------------------

    8. Estimated impact on State, local, and tribal 
governments: H.R. 3452 contains no intergovernmental mandates 
as defined by the Unfunded Mandates Reform Act of 1995 (Public 
Law 104-4), and would not affect the budgets of State, local, 
or tribal governments.
    9. Estimated impact on the private sector: The bill 
contains no new private-sector mandates as defined by Public 
Law 104-4.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal Cost Estimate--John R. 
Righter; impact on State, local, and tribal governments--
Theresa Gullo; impact on the private sector: Matthew Eyles.
    12. Estimate approved by: Paul A Sunshine, for Paul N. Van 
de Water, Assistant Director for Budget Analysis.

                  VIII. Inflationary Impact Statement

    In accordance with rule XI, clause 2(l)(4) of the Rules of 
the House of Representatives, this legislation is assessed to 
have no inflationary impact on prices and costs in the 
operation of the national economy.

       IX. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 3, UNITED STATES CODE

Chap.                                                               Sec.
      Presidential Elections and Vacancies.............................1
     * * * * * * *
      Extension of Certain Rights and Protections to Presidential     5.
        Offices......................................................401
     * * * * * * *

CHAPTER 5--EXTENSION OF CERTAIN RIGHTS AND PROTECTIONS TO PRESIDENTIAL 
                                OFFICES

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec.
401. Definitions.
402. Application of laws.

           SUBCHAPTER II--EXTENSION OF RIGHTS AND PROTECTIONS

Part A--Employment Discrimination, Family and Medical Leave, Fair Labor 
    Standards, Employee Polygraph Protection, Worker Adjustment and 
  Retraining, Employment and Reemployment of Veterans, and Intimidation

411. Rights and protections under title VII of the Civil Rights Act of 
          1964, the Age Discrimination in Employment Act of 1967, the 
          Rehabilitation Act of 1973, and title I of the Americans with 
          Disabilities Act of 1990.
412. Rights and protections under the Family and Medical Leave Act of 
          1993.
413. Rights and protections under the Fair Labor Standards Act of 1938.
414. Rights and protections under the Employee Polygraph Protection Act 
          of 1988.
415. Rights and protections under the Worker Adjustment and Retraining 
          Notification Act.
416. Rights and protections relating to veterans' employment and 
          reemployment.
417. Prohibition of intimidation or reprisal.

 Part B--Public Access Provisions Under the Americans With Disabilities 
                               Act of 1990

420. Rights and protections under the Americans with Disabilities Act of 
          1990.

           Part C--Occupational Safety and Health Act of 1970

425. Rights and protections under the Occupational Safety and Health Act 
          of 1970; procedures for remedy of violations.

                   Part D--Labor-Management Relations

430. Application of chapter 71 of title 5, relating to Federal service 
          labor-management relations; procedures for remedy of 
          violations.

                             Part E--General

435. Generally applicable remedies and limitations.

     SUBCHAPTER III--ADMINISTRATIVE AND JUDICIAL DISPUTE-RESOLUTION 
                               PROCEDURES

451. Procedure for consideration of alleged violations.
452. Counseling and mediation.
453. Election of proceeding.
454. Appropriate agencies.
455. Judicial review.
456. Civil action.
457. Judicial review of regulations.
458. Other judicial review prohibited.
459. Effect of failure to issue regulations.
460. Expedited review of certain appeals.
461. Payments.
462. Confidentiality.
463. Definitions.

                      SUBCHAPTER IV--EFFECTIVE DATE

471. Effective date.

                    Subchapter I--General Provisions

SEC. 401. DEFINITIONS.

  Except as otherwise specifically provided in this chapter, as 
used in this chapter:
          (1) Board.--The term ``Board'' means the Merit 
        Systems Protection Board under chapter 12 of title 5.
          (2) Covered employee.--The term ``covered employee'' 
        means any employee of an employing office.
          (3) Employee.--The term ``employee'' includes an 
        applicant for employment and a former employee.
          (4) Employing office.--The term ``employing office'' 
        means--
                  (A) each office, agency, or other component 
                of the Executive Office of the President;
                  (B) the Executive Residence at the White 
                House; and
                  (C) the official residence (temporary or 
                otherwise) of the Vice President.

SEC. 402. APPLICATION OF LAWS.

  The following laws shall apply, as prescribed by this 
chapter, to all employing offices (including employing offices 
within the meaning of section 411, to the extent prescribed 
therein):
          (1) The Fair Labor Standards Act of 1938.
          (2) Title VII of the Civil Rights Act of 1964.
          (3) The Americans with Disabilities Act of 1990.
          (4) The Age Discrimination in Employment Act of 1967.
          (5) The Family and Medical Leave Act of 1993.
          (6) The Occupational Safety and Health Act of 1970.
          (7) Chapter 71 (relating to Federal service labor-
        management relations) of title 5.
          (8) The Employee Polygraph Protection Act of 1988.
          (9) The Worker Adjustment and Retraining Notification 
        Act.
          (10) The Rehabilitation Act of 1973.
          (11) Chapter 43 (relating to veterans' employment and 
        reemployment) of title 38.

           Subchapter II--Extension of Rights and Protections

PART A--EMPLOYMENT DISCRIMINATION, FAMILY AND MEDICAL LEAVE, FAIR LABOR 
    STANDARDS, EMPLOYEE POLYGRAPH PROTECTION, WORKER ADJUSTMENT AND 
 RETRAINING, EMPLOYMENT AND REEMPLOYMENT OF VETERANS, AND INTIMIDATION

SEC. 411. RIGHTS AND PROTECTIONS UNDER TITLE VII OF THE CIVIL RIGHTS 
                    ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT 
                    ACT OF 1967, THE REHABILITATION ACT OF 1973, AND 
                    TITLE I OF THE AMERICANS WITH DISABILITIES ACT OF 
                    1990.

  (a) Discriminatory Practices Prohibited.--All personnel 
actions affecting covered employees shall be made free from any 
discrimination based on--
          (1) race, color, religion, sex, or national origin, 
        within the meaning of section 703 of the Civil Rights 
        Act of 1964;
          (2) age, within the meaning of section 15 of the Age 
        Discrimination in Employment Act of 1967; or
          (3) disability, within the meaning of section 501 of 
        the Rehabilitation Act of 1973 and sections 102 through 
        104 of the Americans with Disabilities Act of 1990.
  (b) Remedy.--
          (1) Civil rights.--The remedy for a violation of 
        subsection (a)(1) shall be--
                  (A) such damages as would be appropriate if 
                awarded under section 706(g) of the Civil 
                Rights Act of 1964; and
                  (B) such compensatory damages as would be 
                appropriate if awarded under section 1977 of 
                the Revised Statutes, or as would be 
                appropriate if awarded under sections 
                1977A(a)(1), 1977A(b)(2), and, irrespective of 
                the size of the employing office, 
                1977A(b)(3)(D) of the Revised Statutes.
          (2) Age discrimination.--The remedy for a violation 
        of subsection (a)(2) shall be--
                  (A) such damages as would be appropriate if 
                awarded under section 15(c) of the Age 
                Discrimination in Employment Act of 1967; and
                  (B) such liquidated damages as would be 
                appropriate if awarded under section 7(b) of 
                such Act.
        In addition, the waiver provisions of section 7(f) of 
        such Act shall apply to covered employees.
          (3) Disabilities discrimination.--The remedy for a 
        violation of subsection (a)(3) shall be--
                  (A) such damages as would be appropriate if 
                awarded under section 505(a)(1) of the 
                Rehabilitation Act of 1973 or section 107(a) of 
                the Americans with Disabilities Act of 1990; 
                and
                  (B) such compensatory damages as would be 
                appropriate if awarded under sections 
                1977A(a)(2), 1977A(a)(3), 1977A(b)(2), and, 
                irrespective of the size of the employing 
                office, 1977A(b)(3)(D) of the Revised Statutes.
  (c) Definitions.--Except as otherwise specifically provided 
in this section, as used in this section:
          (1) Covered employee.--The term ``covered employee'' 
        means any employee of a unit of the executive branch, 
        including the Executive Office of the President, 
        whether appointed by the President or by any other 
        appointing authority in the executive branch, who is 
        not otherwise entitled to bring an action under any of 
        the statutes referred to in subsection (a), but does 
        not include any individual--
                  (A) whose appointment is made by and with the 
                advice and consent of the Senate;
                  (B) who is appointed to an advisory 
                committee, as defined in section 3(2) of the 
                Federal Advisory Committee Act; or
                  (C) who is a member of the uniformed 
                services.
          (2) Employing office.--The term ``employing office'', 
        with respect to a covered employee, means the office, 
        agency, or other entity in which the covered employee 
        is employed (or sought employment or was employed in 
        the case of an applicant or former employee, 
        respectively).
  (d) Applicability.--Subsections (a) through (c), and section 
417 (to the extent that it relates to any matter under this 
section), shall apply with respect to violations occurring on 
or after the effective date of this chapter.

SEC. 412. RIGHTS AND PROTECTIONS UNDER THE FAMILY AND MEDICAL LEAVE ACT 
                    OF 1993.

  (a) Family and Medical Leave Rights and Protections 
Provided.--
          (1) In general.--The rights and protections 
        established by sections 101 through 105 of the Family 
        and Medical Leave Act of 1993 shall apply to covered 
        employees.
          (2) Definitions.--For purposes of the application 
        described in paragraph (1)--
                  (A) the term ``employer'' as used in the 
                Family and Medical Leave Act of 1993 means any 
                employing office; and
                  (B) the term ``eligible employee'' as used in 
                the Family and Medical Leave Act of 1993 means 
                a covered employee who has been employed in any 
                employing office for 12 months and for at least 
                1,250 hours of employment during the previous 
                12 months.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such damages, including liquidated damages, as would 
be appropriate if awarded under paragraph (1) of section 107(a) 
of the Family and Medical Leave Act of 1993.

SEC. 413. RIGHTS AND PROTECTIONS UNDER THE FAIR LABOR STANDARDS ACT OF 
                    1938.

  (a) Fair Labor Standards.--
          (1) In general.--The rights and protections 
        established by subsections (a)(1) and (d) of section 6, 
        section 7, and section 12(c) of the Fair Labor 
        Standards Act of 1938 shall apply to covered employees.
          (2) Interns and volunteers.--For the purposes of this 
        section, the term ``covered employee'' does not include 
        an intern or a volunteer as defined in regulations 
        under subsection (c).
          (3) Compensatory time.--Except as provided in 
        regulations under subsection (c)(3), covered employees 
        may not receive compensatory time in lieu of overtime 
        compensation.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such damages, including liquidated damages, as would 
be appropriate if awarded under section 16(b) of the Fair Labor 
Standards Act of 1938.
  (c) Regulations To Implement Section.--
          (1) In general.--The President shall issue 
        regulations to implement this section.
          (2) Agency regulations.--Except as provided in 
        paragraph (3), the regulations issued under paragraph 
        (1) shall be the same as substantive regulations 
        promulgated by the Secretary of Labor to implement the 
        statutory provisions referred to in subsection (a) 
        except insofar as the President may determine, for good 
        cause shown and stated together with the regulation, 
        that a modification of such regulations would be more 
        effective for the implementation of the rights and 
        protections under this section.
          (3) Irregular work schedules.--The President shall 
        issue regulations for covered employees whose work 
        schedules directly depend on the schedule of the 
        President or the Vice President that shall be 
        comparable to the provisions in the Fair Labor 
        Standards Act of 1938 that apply to employees who have 
        irregular work schedules.

SEC. 414. RIGHTS AND PROTECTIONS UNDER THE EMPLOYEE POLYGRAPH 
                    PROTECTION ACT OF 1988.

  (a) Polygraph Practices Prohibited.--No employing office may 
require a covered employee to take a lie detector test where 
such a test would be prohibited if required by an employer 
under paragraph (1), (2), or (3) of section 3 of the Employee 
Polygraph Protection Act of 1988. In addition, the waiver 
provisions of section 6(d) of such Act shall apply to covered 
employees.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such damages as would be appropriate if awarded under 
section 6(c)(1) of the Employee Polygraph Protection Act of 
1988.
  (c) Regulations To Implement Section.--
          (1) In general.--The President shall issue 
        regulations to implement this section.
          (2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive 
        regulations promulgated by the Secretary of Labor to 
        implement the statutory provisions referred to in 
        subsections (a) and (b) except insofar as the President 
        may determine, for good cause shown and stated together 
        with the regulation, that a modification of such 
        regulations would be more effective for the 
        implementation of the rights and protections under this 
        section.

SEC. 415. RIGHTS AND PROTECTIONS UNDER THE WORKER ADJUSTMENT AND 
                    RETRAINING NOTIFICATION ACT.

  (a) Worker Adjustment and Retraining Notification Rights.--
          (1) In general.--Except as provided in paragraph (2), 
        no employing office shall be closed or mass layoff 
        ordered within the meaning of section 3 of the Worker 
        Adjustment and Retraining Notification Act until the 
        end of a 60-day period after the employing office 
        serves written notice of such prospective closing or 
        layoff to representatives of covered employees or, if 
        there are no representatives, to covered employees.
          (2) Exception.--
                  (A) In general.--In the event that a 
                President (hereinafter in this paragraph 
                referred to as the ``previous President'') does 
                not succeed himself in office as a result of 
                the election of a new President, no notice or 
                waiting period shall be required under 
                paragraph (1) with respect to the separation of 
                any individual described in subparagraph (B), 
                if such separation occurs pursuant to a closure 
                or mass layoff ordered after the term of the 
                new President commences.
                  (B) Description of individuals.--An 
                individual described in this subparagraph is 
                any covered employee serving pursuant to an 
                appointment made during--
                          (i) the term of office of the 
                        previous President; or
                          (ii) any term, earlier than the term 
                        referred to in clause (i), during which 
                        such previous President served as 
                        President or Vice President.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such damages as would be appropriate if awarded under 
paragraphs (1), (2), and (4) of section 5(a) of the Worker 
Adjustment and Retraining Notification Act.
  (c) Regulations To Implement Section.--
          (1) In general.--The President shall issue 
        regulations to implement this section.
          (2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive 
        regulations promulgated by the Secretary of Labor to 
        implement the statutory provisions referred to in 
        subsection (a) except insofar as the President may 
        determine, for good cause shown and stated together 
        with the regulation, that a modification of such 
        regulations would be more effective for the 
        implementation of the rights and protections under this 
        section.

SEC. 416. RIGHTS AND PROTECTIONS RELATING TO VETERANS' EMPLOYMENT AND 
                    REEMPLOYMENT.

  (a) Employment and Reemployment Rights of Members of the 
Uniformed Services.--
          (1) In general.--It shall be unlawful for an 
        employing office to--
                  (A) discriminate, within the meaning of 
                subsections (a) and (b) of section 4311 of 
                title 38, against an eligible employee;
                  (B) deny to an eligible employee reemployment 
                rights within the meaning of sections 4312 and 
                4313 of title 38; or
                  (C) deny to an eligible employee benefits 
                within the meaning of sections 4316, 4317, and 
                4318 of title 38.
          (2) Definition.--For purposes of this section, the 
        term ``eligible employee'' means a covered employee 
        performing service in the uniformed services, within 
        the meaning of section 4303(13) of title 38, whose 
        service has not been terminated upon the occurrence of 
        any of the events enumerated in section 4304 of such 
        title.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such damages as would be appropriate if awarded under 
paragraphs (1) and (2)(A) of section 4323(c) of title 38.
  (c) Regulations To Implement Section.--
          (1) In general.--The President shall issue 
        regulations to implement this section.
          (2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive 
        regulations promulgated by the Secretary of Labor to 
        implement the statutory provisions referred to in 
        subsection (a) except to the extent that the President 
        may determine, for good cause shown and stated together 
        with the regulation, that a modification of such 
        regulations would be more effective for the 
        implementation of the rights and protections under this 
        section.

SEC. 417. PROHIBITION OF INTIMIDATION OR REPRISAL.

  (a) In General.--It shall be unlawful for an employing office 
to intimidate, take reprisal against, or otherwise discriminate 
against, any covered employee because the covered employee has 
opposed any practice made unlawful by this chapter, or because 
the covered employee has initiated proceedings, made a charge, 
or testified, assisted, or participated in any manner in a 
hearing or other proceeding under this chapter.
  (b) Remedy.--A violation of subsection (a) may be remedied by 
any legal remedy available to redress the practice opposed by 
the covered employee or other violation of law as to which the 
covered employee initiated proceedings, made a charge, or 
engaged in other conduct protected under subsection (a).
  (c) Definitions.--For purposes of applying this section with 
respect to any practice or other matter to which section 411 
relates, the terms ``employing office'' and ``covered 
employee'' shall each be considered to have the meaning given 
to it by such section.

PART B--PUBLIC ACCESS PROVISIONS UNDER THE AMERICANS WITH DISABILITIES 
                              ACT OF 1990

SEC. 420. RIGHTS AND PROTECTIONS UNDER THE AMERICANS WITH DISABILITIES 
                    ACT OF 1990.

  (a) Rights and Protections.--The rights and protections 
against discrimination in the provision of public services and 
accommodations established by sections 201, 202, and 204, and 
sections 302, 303, and 309, of the Americans with Disabilities 
Act of 1990 shall apply, to the extent that public services, 
programs, or activities are provided, with respect to the White 
House and its appurtenant grounds and gardens, the Old 
Executive Office Building, the New Executive Office Buildings, 
and any other facility to the extent that offices are provided 
for employees of the Executive Office of the President.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be such remedy as would be appropriate if awarded under 
section 203 or 308 of the Americans with Disabilities Act of 
1990, as the case may be, except that, with respect to any 
claim of employment discrimination, the exclusive remedy shall 
be under section 411 of this title. A remedy under the 
preceding sentence shall be enforced in accordance with 
applicable provisions of such section 203 or 308, as the case 
may be.
  (c) Definition.--For purposes of the application under this 
section of the Americans with Disabilities Act of 1990, the 
term ``public entity'' as used in such Act, means, to the 
extent that public services, programs, or activities are 
provided, the White House and its appurtenant grounds and 
gardens, the Old Executive Office Building, the New Executive 
Office Buildings, and any other facility to the extent that 
offices are provided for employees of the Executive Office of 
the President.

           PART C--OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970

SEC. 425. RIGHTS AND PROTECTIONS UNDER THE OCCUPATIONAL SAFETY AND 
                    HEALTH ACT OF 1970; PROCEDURES FOR REMEDY OF 
                    VIOLATIONS.

  (a) Occupational Safety and Health Protections.--
          (1) In general.--Each employing office and each 
        covered employee shall comply with the provisions of 
        section 5 of the Occupational Safety and Health Act of 
        1970.
          (2) Definitions.--For purposes of the application 
        under this section of the Occupational Safety and 
        Health Act of 1970--
                  (A) the term ``employer'' as used in such Act 
                means an employing office; and
                  (B) the term ``employee'' as used in such Act 
                means a covered employee.
  (b) Remedy.--The remedy for a violation of subsection (a) 
shall be an order to correct the violation, including such 
order as would be appropriate if issued under section 13(a) of 
the Occupational Safety and Health Act of 1970.
  (c) Procedures.--
          (1) Requests for inspections.--Upon written request 
        of any employing office or covered employee, the 
        Secretary of Labor shall have the authority to inspect 
        and investigate places of employment under the 
        jurisdiction of employing offices in accordance with 
        subsections (a), (d), (e), and (f) of section 8 of the 
        Occupational Safety and Health Act of 1970.
          (2) Citations, notices, and notifications.--The 
        Secretary of Labor shall have the authority, in 
        accordance with sections 9 and 10 of the Occupational 
        Safety and Health Act of 1970, to issue--
                  (A) a citation or notice to any employing 
                office responsible for correcting a violation 
                of subsection (a); or
                  (B) a notification to any employing office 
                that the Secretary of Labor believes has failed 
                to correct a violation for which a citation has 
                been issued within the period permitted for its 
                correction.
          (3) Hearings and review.--If after issuing a citation 
        or notification, the Secretary of Labor determines that 
        a violation has not been corrected--
                  (A) the citation and notification shall be 
                deemed a final order (within the meaning of 
                section 10(b) of the Occupational Safety and 
                Health Act of 1970) if the employer fails to 
                notify the Secretary of Labor within 15 days 
                (excluding Saturdays, Sundays, and Federal 
                holidays) after receipt of the notice that he 
                intends to contest the citation or 
                notification; or
                  (B) opportunity for a hearing before the 
                Occupational Safety and Health Review 
                Commission shall be afforded in accordance with 
                section 10(c) of the Occupational Safety and 
                Health Act of 1970, if the employer gives 
                timely notice to the Secretary that he intends 
                to contest the citation or notification.
          (4) Variance procedures.--An employing office may 
        request from the Secretary of Labor an order granting a 
        variance from a standard made applicable by this 
        section, in accordance with sections 6(b)(6) and 6(d) 
        of the Occupational Safety and Health Act of 1970.
          (5) Judicial review.--Any person or employing office 
        aggrieved by a final decision of the Occupational 
        Safety and Health Review Commission under paragraph (3) 
        or the Secretary of Labor under paragraph (4) may file 
        a petition for review with the United States Court of 
        Appeals for the Federal Circuit pursuant to section 
        455.
          (6) Compliance date.--If new appropriated funds are 
        necessary to correct a violation of subsection (a) for 
        which a citation is issued, or to comply with an order 
        requiring correction of such a violation, correction or 
        compliance shall take place as soon as possible, but 
        not later than the end of the fiscal year following the 
        fiscal year in which the citation is issued or the 
        order requiring correction becomes final and not 
        subject to further review.
  (d) Regulations To Implement Section.--
          (1) In general.--The President shall issue 
        regulations to implement this section.
          (2) Agency regulations.--The regulations issued under 
        paragraph (1) shall be the same as substantive 
        regulations promulgated by the Secretary of Labor to 
        implement the statutory provisions referred to in 
        subsection (a) except to the extent that the President 
        may determine, for good cause shown and stated together 
        with the regulation, that a modification of such 
        regulations would be more effective for the 
        implementation of the rights and protections under this 
        section.
          (3) Employing office responsible for correction.--The 
        regulations issued under paragraph (1) shall include a 
        method of identifying, for purposes of this section and 
        for different categories of violations of subsection 
        (a), the employing office responsible for correction of 
        a particular violation.

                   PART D--LABOR-MANAGEMENT RELATIONS

SEC. 430. APPLICATION OF CHAPTER 71 OF TITLE 5, RELATING TO FEDERAL 
                    SERVICE LABOR-MANAGEMENT RELATIONS; PROCEDURES FOR 
                    REMEDY OF VIOLATIONS.

  (a) Labor-Management Rights.--Chapter 71 of title 5 shall 
apply to employing offices and to covered employees and 
representatives of those employees, except that covered 
employees shall not have a right to reinstatement pursuant to 
section 7118(a)(7)(C) or 7123 of title 5.
  (b) Definition.--For purposes of the application under this 
section of chapter 71 of title 5, the term ``agency'' as used 
in such chapter means an employing office.

                            PART E--GENERAL

SEC. 435. GENERALLY APPLICABLE REMEDIES AND LIMITATIONS.

  (a) Attorney's Fees.--If a covered employee, with respect to 
any claim under this chapter, or a qualified person with a 
disability, with respect to any claim under section 420, is a 
prevailing party in any proceeding under section 453(1), 455, 
or 456, the administrative agency or court, as the case may be, 
may award attorney's fees, expert fees, and any other costs as 
would be appropriate if awarded under section 706(k) of the 
Civil Rights Act of 1964.
  (b) Interest.--In any proceeding under section 453(1), 455, 
or 456, the same interest to compensate for delay in payment 
shall be made available as would be appropriate if awarded 
under section 717(d) of the Civil Rights Act of 1964.
  (c) Civil Penalties and Punitive Damages.--Except as 
otherwise provided in this chapter, no civil penalty or 
punitive damages may be awarded with respect to any claim under 
this chapter.
  (d) Exclusive Procedure.--
          (1) In general.--Except as provided in paragraph (2), 
        no person may commence an administrative or judicial 
        proceeding to seek a remedy for the rights and 
        protections afforded by this chapter except as provided 
        in this chapter.
          (2) Veterans.--A covered employee under section 416 
        may also utilize any provisions of chapter 43 of title 
        38 that are applicable to that employee.
  (e) Scope of Remedy.--Only a covered employee who has 
undertaken and completed the procedures described in section 
452 may be granted a remedy under part A of this subchapter.
  (f) Construction.--
          (1) Definitions and exemptions.--Except where 
        inconsistent with definitions and exemptions provided 
        in this chapter, the definitions and exemptions in the 
        laws made applicable by this chapter shall apply under 
        this chapter.
          (2) Size limitations.--Notwithstanding paragraph (1), 
        provisions in the laws made applicable under this 
        chapter (other than paragraphs (2) and (3) of section 
        2(a) of the Worker Adjustment and Retraining 
        Notification Act) determining coverage based on size, 
        whether expressed in terms of numbers of employees, 
        amount of business transacted, or other measure, shall 
        not apply in determining coverage under this chapter.
  (g) Definitions Relating to Section 411.--For purposes of 
applying this section with respect to any practice or other 
matter to which section 411 relates, the terms ``employing 
office'' and ``covered employee'' shall each be considered to 
have the meaning given to it by such section.

    Subchapter III--Administrative and Judicial Dispute-Resolution 
                               Procedures

SEC. 451. PROCEDURE FOR CONSIDERATION OF ALLEGED VIOLATIONS.

  The procedure for consideration of alleged violations of part 
A of subchapter II consists of--
          (1) counseling and mediation as provided in section 
        452; and
          (2) election, as provided in section 453, of either--
                  (A) an administrative proceeding as provided 
                in section 453(1) and judicial review as 
                provided in section 455; or
                  (B) a civil action in a district court of the 
                United States as provided in section 456.

SEC. 452. COUNSELING AND MEDIATION.

  (a) In General.--The President shall by regulation establish 
procedures substantially similar to those under sections 402 
and 403 of the Congressional Accountability Act of 1995 for the 
counseling and mediation of alleged violations of a law made 
applicable under part A of subchapter II.
  (b) Exhaustion Requirement.--A covered employee who has not 
exhausted counseling and mediation under subsection (a) shall 
be ineligible to make any election under section 453 or 
otherwise pursue any further form of relief under this 
subchapter.

SEC. 453. ELECTION OF PROCEEDING.

  Not later than 90 days after a covered employee receives 
notice of the end of the period of mediation, but no sooner 
than 30 days after receipt of such notification, such covered 
employee may either--
          (1) file a complaint with the appropriate 
        administrative agency, as determined under section 454; 
        or
          (2) file a civil action in accordance with section 
        456 in the United States district court for the 
        district in which the employee is employed or for the 
        District of Columbia.

SEC. 454. APPROPRIATE AGENCIES.

  (a) In General.--Except as provided in subsection (b), the 
appropriate agency under this section with respect to an 
alleged violation of part A of subchapter II shall be the 
Board.
  (b) Exceptions.--
          (1) Discrimination.--For purposes of any action 
        arising under section 411 (or any action alleging 
        intimidation, reprisal, or discrimination under section 
        417 relating to any practice made unlawful under 
        section 411), the appropriate agency shall be the Equal 
        Employment Opportunity Commission, and the complaint in 
        any such action shall be processed under the same 
        administrative procedures as any such complaint filed 
        by any other Federal employee.
          (2) Mixed cases.--However, in the case of any covered 
        employee (within the meaning of section 411(c)(1)) who 
        has been affected by an action which an employee of an 
        executive agency may appeal to the Board and who 
        alleges that a basis for the action was discrimination 
        prohibited by section 411 (or any action alleging 
        intimidation, reprisal, or discrimination under section 
        417 relating to any practice made unlawful under 
        section 411), the initial appropriate agency shall be 
        the Board, and such matter shall thereafter be 
        processed in accordance with section 7702 (a)-(d) 
        (disregarding paragraph (2) of such subsection (a)) and 
        (f) of title 5.
          (3) Judicial review.--Notwithstanding any other 
        provision of law (including any provision of law 
        referenced in paragraph (1) or (2)), judicial review of 
        any administrative decision under this subsection shall 
        be by the court specified in section 455.

SEC. 455. JUDICIAL REVIEW.

  (a) In General.--The United States Court of Appeals for the 
Federal Circuit shall have jurisdiction over a petition for 
review of a final decision under this chapter of--
          (1) an appropriate agency (as determined under 
        section 454);
          (2) the Federal Labor Relations Authority under 
        chapter 71 of title 5, notwithstanding section 7123 of 
        such title; or
          (3) the Secretary of Labor or the Occupational Safety 
        and Health Review Commission, made under part C of 
        subchapter II.
  (b) Filing Deadline.--Any petition for review under this 
section must be filed within 30 days after the date the 
petitioner receives notice of the final decision.

SEC. 456. CIVIL ACTION.

  (a) Jurisdiction.--The district courts of the United States 
shall have jurisdiction over any civil action commenced under 
section 453(2) and this section by a covered employee.
  (b) Parties.--The defendant shall be the employing office 
alleged to have committed the violation, or in which the 
violation is alleged to have occurred.
  (c) Jury Trial.--Any party may demand a jury trial where a 
jury trial would be available in an action against a private 
defendant under the relevant law made applicable by this 
chapter. In any case in which a violation of section 411 is 
alleged, the court shall not inform the jury of the maximum 
amount of compensatory damages available under section 
411(b)(1) or 411(b)(3).

SEC. 457. JUDICIAL REVIEW OF REGULATIONS.

  In any proceeding brought under section 455 or 456 in which 
the application of a regulation issued under this chapter is at 
issue, the court may review the validity of the regulation in 
accordance with the provisions of subparagraphs (A) through (D) 
of section 706(2) of title 5. If the court determines that the 
regulation is invalid, the court shall apply, to the extent 
necessary and appropriate, the most relevant substantive 
executive agency regulation promulgated to implement the 
statutory provisions with respect to which the invalid 
regulation was issued. Except as provided in this section, the 
validity of regulations issued under this chapter is not 
subject to judicial review.

SEC. 458. OTHER JUDICIAL REVIEW PROHIBITED.

  Except as expressly authorized by this chapter, the 
compliance or noncompliance with the provisions of this chapter 
and any action taken pursuant to this chapter shall not be 
subject to judicial review.

SEC. 459. EFFECT OF FAILURE TO ISSUE REGULATIONS.

  In any proceeding under section 453(1), 455, or 456, if the 
President has not issued a regulation on a matter for which 
this chapter requires a regulation to be issued, the 
administrative agency or court, as the case may be, shall 
apply, to the extent necessary and appropriate, the most 
relevant substantive executive agency regulation promulgated to 
implement the statutory provision at issue in the proceeding.

SEC. 460. EXPEDITED REVIEW OF CERTAIN APPEALS.

  (a) In General.--An appeal may be taken directly to the 
Supreme Court of the United States from any interlocutory or 
final judgment, decree, or order of a court upon the 
constitutionality of any provision of this chapter.
  (b) Jurisdiction.--The Supreme Court shall, if it has not 
previously ruled on the question, accept jurisdiction over the 
appeal referred to in subsection (a), advance the appeal on the 
docket, and expedite the appeal to the greatest extent 
possible.

SEC. 461. PAYMENTS.

  A judgment, award, or compromise settlement against the 
United States under this chapter (including any interest and 
costs) shall be paid--
          (1) under section 1304 of title 31, if it arises out 
        of an action commenced in a district court of the 
        United States (or any appeal therefrom); or
          (2) out of amounts otherwise appropriated or 
        available to such office, if it arises out of an 
        administrative proceeding under this chapter (or any 
        appeal therefrom).

SEC. 462. CONFIDENTIALITY.

  (a) Counseling.--All counseling under section 452 shall be 
strictly confidential, except that, with the consent of the 
covered employee, the employing office may be notified.
  (b) Mediation.--All mediation under section 452 shall be 
strictly confidential.

SEC. 463. DEFINITIONS.

  For purposes of applying this subchapter, the terms 
``employing office'' and ``covered employee'' shall each, to 
the extent that section 411 is involved, be considered to have 
the meaning given to it by such section.

                     Subchapter IV--Effective Date

SEC. 471. EFFECTIVE DATE.

  This chapter shall take effect 1 year after the date of the 
enactment of the Presidential and Executive Office 
Accountability Act.
                              ----------                              


                      TITLE 31, UNITED STATES CODE

          * * * * * * *

               CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET

          * * * * * * *

                       SUBCHAPTER I--ORGANIZATION

          * * * * * * *

Sec. 503. Functions of Deputy Director for Management

  (a) Subject to the direction and approval of the Director, 
the Deputy Director for Management shall establish 
governmentwide financial management policies for executive 
agencies and shall perform the following financial management 
functions:
          (1)  * * *
          * * * * * * *
          (7) Develop and maintain qualification standards for 
        agency Chief Financial Officers and for agency Deputy 
        Chief Financial Officers appointed under sections 901 
        and 903, [respectively.] respectively (excluding any 
        officer appointed under section 901(c) or 903(c)).
          (8) Provide advice to agency heads with respect to 
        the selection of agency Chief Financial Officers and 
        Deputy Chief Financial [Officers.] Officers (excluding 
        any officer appointed under section 901(c) or 903(c)).
          * * * * * * *

                   Subchapter VI--Property Management

          * * * * * * *

               Chapter 9--Agency Chief Financial Officers

Sec. 901. Establishment of agency Chief Financial Officers

  (a) * * *
          * * * * * * *
  (c)(1) There shall be within the Executive Office of the 
President a Chief Financial Officer, who shall be appointed by 
the President from among individuals meeting the standards 
described in subsection (a)(3).
  (2) The Chief Financial Officer under this subsection shall 
have the same authority and shall perform the same functions as 
apply in the case of a Chief Financial Officer under section 
902.
  (3) The Director of the Office of Management and Budget shall 
prescribe any regulations which may be necessary to ensure 
that, for purposes of implementing paragraph (2), the Executive 
Office of the President shall, to the extent practicable and 
appropriate, be treated (including for purposes of financial 
statements under section 3515) in the same way as an agency 
described in subsection (b).

Sec. 903. Establishment of agency Deputy Chief Financial Officers

  (a) * * *
  (c)(1) There shall be within the Executive Office of the 
President a Deputy Chief Financial Officer, who, 
notwithstanding any provision of subsection (b), shall be 
appointed by the President from among individuals meeting the 
standards described in section 901(a)(3).
  (2) The Deputy Chief Financial Officer under this subsection 
shall have the same authority and shall perform the same 
functions as apply in the case of the Deputy Chief Financial 
Officer of an agency described in subsection (b).
                              ----------                              


              SECTION 202 OF TITLE 18, UNITED STATES CODE

          * * * * * * *

Sec. 202. Definitions

  [(a) For the purpose of sections 203, 205, 207, 208, and 209 
of this title the term ``special Government employee'' shall 
mean an officer or employee of the executive or legislative 
branch of the United States Government, of any independent 
agency of the United States or of the District of Columbia, who 
is retained, designated, appointed, or employed to perform, 
with or without compensation, for not to exceed one hundred and 
thirty days during any period of three hundred and sixty-five 
consecutive days, temporary duties either on a full-time or 
intermittent basis, a part-time United States commissioner, a 
part-time United States magistrate, or, regardless of the 
number of days of appointment, an independent counsel appointed 
under chapter 40 of title 28 and any person appointed by that 
independent counsel under section 594(c) of title 28. 
Notwithstanding the next preceding sentence, every person 
serving as a part-time local representative of a Member of 
Congress in the Member's home district or State shall be 
classified as a special Government employee. Notwithstanding 
section 29(c) and (d) of the Act of August 10, 1956 (70A Stat. 
632; 5 U.S.C. 30r(c) and (d)), a Reserve officer of the Armed 
Forces, or an officer of the National Guard of the United 
States, unless otherwise an officer or employee of the United 
States, shall be classified as a special Government employee 
while on active duty solely for training. A Reserve officer of 
the Armed Forces or an officer of the National Guard of the 
United States who is voluntarily serving a period of extended 
active duty in excess of one hundred and thirty days shall be 
classified as an officer of the United States within the 
meaning of section 203 and sections 205 through 209 and 218. A 
Reserve officer of the Armed Forces or an officer of the 
National Guard of the United States who is serving 
involuntarily shall be classified as a special Government 
employee. The terms ``officer or employee'' and ``special 
Government employee'' as used in sections 203, 205, 207 through 
209, and 218, shall not include enlisted members of the Armed 
Forces.]
  (a) For the purpose of sections 203, 205, 207, 208, and 209 
of this title the term ``special Government employee'' shall 
mean--
          (1) an officer or employee as defined in subsection 
        (c) who is retained, designated, appointed, or employed 
        in the legislative or executive branch of the United 
        States Government, in any independent agency of the 
        United States, or in the government of the District of 
        Columbia, and who, at the time of retention, 
        designation, appointment or employment, is expected to 
        perform temporary duties on a full-time or intermittent 
        basis for not to exceed one hundred and thirty days 
        during any period of three hundred and sixty five 
        consecutive days;
          (2) a part-time United States commissioner;
          (3) a part-time United States magistrate;
          (4) an independent counsel appointed under chapter 40 
        of title 28 and any person appointed by that 
        independent counsel under section 594(c) of title 28;
          (5) a person serving as a part-time local 
        representative of a Member of Congress in the Member's 
        home district or State; and
          (6) a Reserve officer of the Armed Forces, or an 
        officer of the National Guard of the United States, who 
        is not otherwise an officer or employee as defined in 
        subsection (c) who is--
                  (A) on active duty solely for training 
                (notwithstanding section 2105(d) of title 5);
                  (B) serving voluntarily for not to exceed one 
                hundred and thirty days during any period of 
                three hundred and sixty five consecutive days; 
                or
                  (C) serving involuntarily.
          * * * * * * *
  [(c) Except as otherwise provided in such sections, the terms 
``officer'' and ``employee'' in sections 203, 205, 207 through 
209, and 218 of this title shall not include the President, the 
Vice President, a Member of Congress, or a Federal judge.]
  (c) The terms ``officer'' and ``employee'' in sections 203, 
205, 207 through 209, and 218 of this title shall include--
          (1) an individual who is retained, designated, 
        appointed or employed in the United States Government 
        or in the government of the District of Columbia, to 
        perform, with or without compensation and subject to 
        the supervision of the President, the Vice President, a 
        Member of Congress, a Federal judge or an officer or 
        employee of the United States or of the government of 
        the District of Columbia, a Federal or District of 
        Columbia function under authority of law or an 
        Executive act. As used in this section, a Federal or 
        District of Columbia function shall include, but not be 
        limited to--
                  (A) supervising, managing, directing or 
                overseeing a Federal or District of Columbia 
                officer or employee in the performance of such 
                officer's or employee's official duties;
                  (B) providing regular advice, counsel, or 
                recommendations to the President, the Vice 
                President, a Member of Congress, or any Federal 
                or District of Columbia officer or employee, or 
                conducting meetings involving any of those 
                individuals, as part of the Federal or District 
                of Columbia government's internal deliberative 
                process; or
                  (C) obligating funds of the United States or 
                the District of Columbia;
          (2) a Reserve officer or officer of the National 
        Guard of the United States who is voluntarily serving a 
        period of extended active duty in excess of 130 days; 
        and
          (3) the President, the Vice President, a Member of 
        Congress or a Federal judge only if specified in the 
        section.
          * * * * * * *
  (f) The terms ``officer or employee'' and ``special 
Government employee'' as used in sections 203, 205, 207 through 
209, and 218, shall not include enlisted members of the Armed 
Forces, nor shall they include an individual who is retained, 
designated or appointed without compensation specifically to 
act as a representative of a non-Federal (or non-District of 
Columbia) interest on an advisory committee established 
pursuant to the Federal Advisory Committee Act or any similarly 
established committee whose meetings are generally open to the 
public. The non-Federal interest to be represented must be 
specifically set forth in the statute, charter, or Executive 
act establishing the committee.
                              ----------                              


       SECTION 320 OF THE GOVERNMENT EMPLOYEE RIGHTS ACT OF 1991

[SEC. 320. COVERAGE OF PRESIDENTIAL APPOINTEES.

  [(a) In General.--
          [(1) Application.--The rights, protections, and 
        remedies provided pursuant to section 302 and 307(h) of 
        this title shall apply with respect to employment of 
        Presidential appointees.
          [(2) Enforcement by administrative action.--Any 
        Presidential appointee may file a complaint alleging a 
        violation, not later than 180 days after the occurrence 
        of the alleged violation, with the Equal Employment 
        Opportunity Commission, or such other entity as is 
        designated by the President by Executive Order, which, 
        in accordance with the principles and procedures set 
        forth in sections 554 through 557 of title 5, United 
        States Code, shall determine whether a violation has 
        occurred and shall set forth its determination in a 
        final order. If the Equal Employment Opportunity 
        Commission, or such other entity as is designated by 
        the President pursuant to this section, determines that 
        a violation has occurred, the final order shall also 
        provide for appropriate relief.
          [(3) Judicial review.--
                  [(A) In general.--Any party aggrieved by a 
                final order under paragraph (2) may petition 
                for review by the United States Court of 
                Appeals for the Federal Circuit.
                  [(B) Law applicable.--Chapter 158 of title 
                28, United States Code, shall apply to a review 
                under this section except that the Equal 
                Employment Opportunity Commission or such other 
                entity as the President may designate under 
                paragraph (2) shall be an ``agency'' as that 
                term is used in chapter 158 of title 28, United 
                States Code.
                  [(C) Standard of review.--To the extent 
                necessary to decision and when presented, the 
                reviewing court shall decide all relevant 
                questions of law and interpret constitutional 
                and statutory provisions. The court shall set 
                aside a final order under paragraph (2) if it 
                is determined that the order was--
                          [(i) arbitrary, capricious, an abuse 
                        of discretion, or otherwise not 
                        consistent with law;
                          [(ii) not made consistent with 
                        required procedures; or
                          [(iii) unsupported by substantial 
                        evidence.
                In making the foregoing determinations, the 
                court shall review the whole record or those 
                parts of it cited by a party, and due account 
                shall be taken of the rule of prejudicial 
                error.
                  [(D) Attorney's fees.--If the presidential 
                appointee is the prevailing party in a 
                proceeding under this section, attorney's fees 
                may be allowed by the court in accordance with 
                the standards prescribed under section 706(k) 
                of the Civil Rights Act of 1964 (42 U.S.C. 
                2000e-5(k)).
  [(b) Presidential Appointee.--For purposes of this section, 
the term ``Presidential appointee'' means any officer or 
employee, or an applicant seeking to become an officer or 
employee, in any unit of the Executive Branch, including the 
Executive Office of the President, whether appointed by the 
President or by any other appointing authority in the Executive 
Branch, who is not already entitled to bring an action under 
any of the statutes referred to in section 302 but does not 
include any individual--
          [(1) whose appointment is made by and with the advice 
        and consent of the Senate;
          [(2) who is appointed to an advisory committee, as 
        defined in section 3(2) of the Federal Advisory 
        Committee Act (5 U.S.C. App.); or
          [(3) who is a member of the uniformed services]
          * * * * * * *
                              ----------                              


                     INSPECTOR GENERAL ACT OF 1978

          * * * * * * *

SEC. 8H. SPECIAL PROVISIONS CONCERNING INSPECTOR GENERAL OF THE 
                    EXECUTIVE OFFICE OF THE PRESIDENT.

  (a) Authority, Direction, and Control of President.--
Notwithstanding the last 2 sentences of section 3(a), the 
Inspector General of the Executive Office of the President 
shall be under the authority, direction, and control of the 
President with respect to audits or investigations, or the 
issuance of subpoenas, which require access to information 
concerning--
          (1) ongoing criminal investigations or proceedings;
          (2) undercover operations;
          (3) the identity of confidential sources, including 
        protected witnesses;
          (4) deliberations and decisions on policy matters, 
        including documented information used as a basis for 
        making policy decisions;
          (5) intelligence or counterintelligence matters; or
          (6) other matters the disclosure of which would 
        constitute a serious threat to the national security, 
        or would cause significant impairment to the national 
        interests (including interests in foreign trade 
        negotiations), of the United States.
  (b) Prohibiting Activities of Inspector General.--With 
respect to information described in subsection (a), the 
President may prohibit the Inspector General of the Executive 
Office of the President from carrying out or completing any 
audit or investigation, or issuing any subpoena, after the 
Inspector General has decided to initiate, carry out, or 
complete such audit or investigation or to issue such subpoena, 
if the President determines that--
          (1) the disclosure of that information would 
        interfere with the core functions of the constitutional 
        responsibilities of the President; and
          (2) the prohibition is necessary to prevent the 
        disclosure of that information.
  (c) Notice.--
          (1) Notice to inspector general.--If the President 
        makes a determination referred to in subsection (b)(1) 
        or (2), the President shall within 30 days notify the 
        Inspector General in writing stating the reasons for 
        that determination.
          (2) Notice to congress.--Within 30 days after 
        receiving a notice under paragraph (1), the Inspector 
        General shall transmit a copy of the notice to each of 
        the Chairman and the ranking minority party member of 
        the Committee on Government Reform and Oversight of the 
        House of Representatives, the Committee on Governmental 
        Affairs of the Senate, and other appropriate committees 
        or subcommittees of the Congress.
  (d) Semiannual Reports.--
          (1) Information to be included.--The Inspector 
        General of the Executive Office of the President shall 
        include in each semiannual report to the President 
        under section 5, at a minimum--
                  (A) a list of the title or subject of each 
                inspection, investigation, or audit conducted 
                during the reporting period;
                  (B) a statement of whether corrective action 
                has been completed on each significant 
                recommendation described in previous semiannual 
                reports, and, in a case where corrective action 
                has been completed, a description of such 
                corrective action;
                  (C) a certification that the Inspector 
                General has had full and direct access to all 
                information relevant to the performance of 
                functions of the Inspector General;
                  (D) a description of all cases occurring 
                during the reporting period in which the 
                Inspector General could not obtain documentary 
                evidence relevant to any inspection, audit, or 
                investigation due to a determination of the 
                President under subsection (b); and
                  (E) such recommendations as the Inspector 
                General considers appropriate concerning 
                legislation to promote economy and efficiency 
                in the administration of programs and 
                operations undertaken by the Executive Office 
                of the President, and to detect and eliminate 
                fraud, waste, and abuse in such programs and 
                operations.
          (2) Transmission to congress.--Within 30 days after 
        receiving a semiannual report under section 5 from the 
        Inspector General of the Executive Office of the 
        President, the President shall transmit the report to 
        each of the Chairman and the ranking minority party 
        member of the Committee on Government Reform and 
        Oversight of the House of Representatives and the 
        Committee on Governmental Affairs of the Senate with 
        any comments the President considers appropriate.

               rule of construction of special provisions

  Sec. [8G.] 8I The special provisions under section 8, 8A, 8B, 
8C, 8D, or 8E of this Act relate only to the establishment 
named in such section and no inference shall be drawn from the 
presence or absence of a provision in any such section with 
respect to an establishment not named in such section or with 
respect to a designated Federal entity as defined under section 
8F(a).
          * * * * * * *
  Sec. 11. As used in this Act--
          (1) the term ``head of the establishment'' means the 
        President (with respect only to the Executive Office of 
        the President), the Secretary of Agriculture, Commerce, 
        Defense, Education, Energy, Health and Human Services, 
        Housing and Urban Development, the Interior, Labor, 
        State, Transportation, or the Treasury; the Attorney 
        General; the Administrator of the Agency for 
        International Development, Environmental Protection, 
        General Services, National Aeronautics and Space, or 
        Small Business, or Veterans' Affairs; the Director of 
        the Federal Emergency Management Agency, the Office of 
        Personnel Management or the United States Information 
        Agency; the Chairman of the Nuclear Regulatory 
        Commission or the Railroad Retirement Board; the 
        Chairperson of the Thrift Depositor Protection 
        Oversight Board; the Chief Executive Officer of the 
        Corporation for National and Community Service; the 
        Administrator of the Community Development Financial 
        Institutions Fund; and the chief executive officer of 
        the Resolution Trust Corporation; and the Chairperson 
        of the Federal Deposit Insurance Corporation; or the 
        Commissioner of Social Security, Social Security 
        Administration; as the case may be;
          (2) the term ``establishment'' means the Executive 
        Office of the President, the Department of Agriculture, 
        Commerce, Defense, Education, Energy, Health and Human 
        Services, Housing and Urban Development, the Interior, 
        Justice, Labor, State, Transportation, or the Treasury; 
        the Agency for International Development, the Community 
        Development Financial Institutions Fund, the 
        Environmental Protection Agency, the Federal Emergency 
        Management Agency, the General Services Administration, 
        the National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, the United States Information Agency, 
        the Corporation for National and Community Service, or 
        the Veterans' Administration, or the Social Security 
        Administration; as the case may be;
          * * * * * * *

                      X. Committee Recommendation

    On July 25, 1996, a quorum being present, the Committee 
ordered the bill, as amended, favorably reported to the House 
for consideration.

 committee on government reform and oversight--104th congress rollcall

    Date: July 25, 1996.
    Amendment No. 1.
    Description: Page 1, in the matter after line 5 and before 
line 6, strike the item relating to section 6 (and redesignate 
succeeding items accordingly). (Page and line nos. refer to 
Committee Print of July 17, 1996.)
    Offered By: Mr. Horn.
    Voice Vote: Ayes.
    Amendment No. 2.
    Description: Amendment to the Committee Print at the end of 
the bill add the following new section: Sec.  . Establishment 
of Inspector General for Executive Office of the President.
    Offered By: Mr. Bass.
    Voice Votes: Ayes.
    Final Passage of H.R. 3452.
    Offered By: Mr. Horn.
    Voice Vote: Ayes.

    XI. Congressional Accountability Act; Public Law 104-1; Section 
                               102(b)(3)

    This provision applies to the Executive Office of the 
President the eleven civil rights, labor and workplace laws 
that the CAA applied to Congress.
          ADDITIONAL VIEW OF REPRESENTATIVE CAROLYN B. MALONEY

    I strongly support the basic goal of H.R. 3452, the 
``Presidential and Executive Office Accountability Act,'' which 
is to apply the Congressional Accountability Act to the 
Executive Office of the President. The Federal government, 
including Congress and the entire Executive branch, should be 
required to abide by the same laws as the American people. I 
offered a number of amendments at the Subcommittee mark-up 
which were supported by the Majority. As a result, I was able 
to support the improved bill as it was reported by the 
Subcommittee.
    Unfortunately, an amendment was adopted at the full 
Committee which may cause me to oppose this bill, should it 
come to the House floor. Rep. Bass offered an amendment to 
mandate creating an Inspector General for the White House, 
which I oppose for a number of reasons.
    First, the Bass amendment is unconstitutional. The Office 
of Legal Counsel at the Justice Department has concluded that 
it violates the separation of powers doctrine. For the first 
time in American history, it would establish an office within 
the White House that is statutorily required to report to 
Congress on a regular basis. I have attached a copy of their 
letter on this issue.
    Second, the guiding principle behind the Presidential and 
Executive Office Accountability Act is that the President 
should be subject to the same laws as the Congress. The Bass 
Amendment violates that principle: the Senate has no Inspector 
General at all; the House has one, but it is limited to 
financial audits of non-legislative offices and reports only to 
the leadership.
    Third, the amendment is unnecessary. Congress, assisted by 
the GAO, exercises its oversight over the President through 
hearings and investigations. These safeguards have proven 
adequate throughout our history, and there is no need to rush 
to create an Inspector General at this time.
    Fourth, putting an Inspector General in the White House 
would create a new and expensive level of bureaucracy in the 
Executive Office of the President, which has traditionally been 
a small and flexible organization with only 1700 employees.
    Finally, there has not been one day of hearings on this 
issue during the 104th Congress. Putting an Inspector General 
in the White House would produce a fundamental shift in 
relations between two separate branches of government. The Bass 
Amendment was offered on the last day of the Government Reform 
and Oversight Committee's consideration of this bill, without 
any time for thoughtful consideration. Given the complexity of 
the matter, hearings are certainly required.

                        U.S. Department of Justice,
                             Office of Legislative Affairs,
                                     Washington, DC, July 24, 1996.
Hon. William F. Clinger,
Chairman, Committee on Government Reform and Oversight, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: I am writing to express further views on 
H.R. 3452, the ``Presidential and Executive Office 
Accountability Act.'' Previously we expressed our support for 
the Subcommittee's changes in the bill, which would limit the 
remedies to damages only.
    We understand that an amendment, embodying the White House 
Inspector General Act of 1996, may be offered as an amendment 
to H.R. 3452 during the Government Reform Committee's markup of 
this legislation tomorrow. This amendment would interfere 
significantly with the discharge of the President's 
constitutional authority. Accordingly, the Department of 
Justice believes that the amendment would raise serious 
constitutional concerns and we strongly oppose the amendment on 
separation of powers grounds.
    The Executive Office of the President is the designation of 
the President's closest advisors and aides. The amendment would 
add the Executive Office of the President to the list of 
Executive establishments subject to the Inspector General Act. 
An Inspector General is appointed for each covered 
establishment. Inspectors General, along with their staffs, are 
to be ``independent and objective units'' within their 
respective establishments and are ``to conduct and supervise 
audits and investigations relating to the programs and 
operations of the establishment;'' ``to provide leadership and 
coordination and recommend policies for activities designed (A) 
to promote economy, efficiency, and effectiveness in the 
administration of, and (B) to prevent and detect fraud and 
abuse in, such programs and operations;'' and ``to provide a 
means for keeping the head of the establishment and the 
Congress fully and currently informed about problems and 
deficiencies relating to the administration of such programs 
and operations and the necessity for and progress of corrective 
action.'' 5 U.S.C. app. 3, section 2.
    This general character is supplemented with a variety of 
specific duties. Inspectors General are to ``provide policy 
direction for and . . . conduct, supervise, and coordinate 
audits and investigations,'' review legislative proposals and 
make recommendations for legislation relating to their 
respective establishments; recommend policies for and actually 
conduct and supervise activities to promote ``economy and 
efficiency;' in the establishment's administration; detect and 
prevent ``fraud and abuse;'' supervise and coordinate 
relationships between the establishment and other Federal 
agencies, State and local governmental agencies and non-
government entities to promote efficiency and prevent fraud and 
abuse; and keep the heads of their respective establishments 
and the Congress fully and currently informed about matters 
within their jurisdiction and recommend corrective action. Id. 
at section 4(a). In addition to these duties, each Inspector 
General is required to submit to Congress semiannual reports 
extensively detailing the Inspector General's activities and 
findings from the preceding period. Id. at section 5.
    To carry out these duties, Inspectors General are vested 
with wide-ranging authority. Among other things, they are 
allowed access to all records, documents, and other materials 
relating to their respective establishments that pertain to 
their duties, and are authorized to make such investigations 
and reports as they deem ``necessary or desirable.'' Id. at 
section 6(a).
    In discharging their authority, Inspectors General are to 
report to and be under the general supervision of the heads of 
the establishments to which they are assigned. However, the 
head of an establishment may not prohibit or prevent the 
Inspector General from initiating, carrying out, or completing 
any audit or investigation, or from issuing any subpoena during 
the course of any audit or investigation. Id. at section 3(a).
    The amendment would depart somewhat from the existing 
framework under the Inspector General Act. The Inspector 
General in the Executive Office of the President would be 
subject to the authority, direction, and control of the 
President with respect to audits or investigations or the 
issuance of subpoenas that require access to information in any 
of six categories.\1\ The President would be permitted to 
prohibit such an audit, investigation, or subpoena, but only 
after the Inspector General had decided to initiate such action 
and only if the President determined that ``the disclosure of 
that information would interfere with the core functions of the 
constitutional responsibilities of the President'' and that 
``the prohibition is necessary to prevent the disclosure of 
that information.'' Id. at section 3. If the President 
exercised this preventive power, he would be required, within 
30 days, to submit in writing the reasons for the 
determinations regarding interference with constitutional 
responsibilities and the possibility of disclosure to the 
Inspector General. The Inspector General, in turn, would be 
required to transmit a copy of the President's submission to 
specified congressional committees. In addition, the Inspector 
General would be required to include a description of the 
episode in the public semiannual report.
---------------------------------------------------------------------------
    \1\ The categories are ongoing criminal investigations or 
proceedings, undercover operations, the identity of confidential 
sources, deliberations and decisions on policy matters, intelligence or 
counterintelligence matters, or other matters the disclosure of which 
constitute a serious threat to national security or cause significant 
impairment to the national interest. See section 3 (adding section 
8F(a) to 5 U.S.C. app. 3).
---------------------------------------------------------------------------
    These provisions would raise serious concerns about 
intrusion on the President's constitutional responsibilities. 
The Constitution assigns a variety of powers exclusively to the 
President. Examples include the powers to nominate Federal 
officers, grant reprieves and pardons, act as commander in 
chief, and receive ambassadors and other public ministers. See 
U.S. Const. art. II. Congress may not intrude upon the 
President's exercise of these exclusive powers. See, e.g., 
Public Citizen v. United States Department of Justice, 491 U.S. 
440 (1988) (Kennedy, J., concurring); Buckley v. Valeo, 424 
U.S. 1 (1976) (per curiam); United States v. Klein, 80 U.S. (13 
Wall.) 128 (1872); Ex Parte Garland, 71 U.S. (4 Wall.) 333 
(1866). Yet the amendment threatens just such an intrusion.
    Even as to those exclusive powers encompassed within one of 
the six categories where the President may stop an audit, 
investigations, or subpoena, the bill would intrude upon the 
executive function. The Inspector General would have authority 
to investigate, audit, and issue subpoenas in these areas 
unless the President prevented the Inspector General from 
exercising the authority. The President could act only after 
the Inspector General decided to investigate, audit, or issue a 
subpoena, and, even then, the President would have to make 
written findings and submit those findings to the Inspector 
General who would transmit them to Congress. In these findings, 
the President would have to determine that ``disclosure'' of 
the information would ``interfere with the core function of the 
constitutional responsibilities of the President.'' But where 
the President is exercising, or has exercised, exclusive 
constitutional authority, Congress is wholly without authority 
to impose such requirements on the President or the President's 
advisors.
    Furthermore, it is far from clear that all investigations, 
audits, or subpoenas concerning the exercise of exclusive 
constitutional powers would even fall within any of the six 
categories as to which the President would have preventive 
authority. For example, unless the deliberations of the 
President and his advisors regarding whom to nominate for a 
Federal office are ``policy matters,'' the President would be 
without statutory authority to prohibit the Inspector General 
from performing investigations and audits of the exercise of 
that power or from reporting to Congress on these matters. 
Another example is the pardon power. Even if the grant of a 
reprieve or pardon is a ``criminal * * * proceeding[],'' this 
category applies only to ``ongoing'' proceedings. Thus, the 
bill would subject the President's deliberations on pardons 
that already have been granted to investigation and audit, and 
ultimately disclosure. The Constitution prohibits Congress from 
doing this.
    With regard to those presidential powers that are not 
exclusive--powers in those spheres where Congress possesses 
authority to legislate--the doctrine of separation of powers 
still limits Congress's ability to adopt legislation that 
infringes on the President's constitutional role. In this area, 
a bill's validity depends on ``the extent to which the bill 
prevents the Executive Branch from performing its 
constitutionally assigned functions.'' Nixon v. Administrator 
of Gen. Servs., 433 U.S. 425, 443 (1977); see Morrison v. 
Olson, 487 U.S. 654 (1988), CFTC v. Schor, 478 U.S. 833 (1986). 
``Only where the potential for disruption is present must we 
then determine whether that impact is justified by an 
overriding need to promote objectives within the constitutional 
authority of Congress.'' Administrator of Gen. Servs., 425 U.S. 
at 443.
    Here, where the bill would invade powers exclusively 
committed to the President, it is unnecessary also to identify 
all of the ways in which the bill could invalidly intrude on 
the President's powers that are not exclusive. Rather, we note 
only that the amendment would create a strong potential for 
extensive interference with the ability of the President to 
perform all of his constitutional functions. At the least, the 
necessity for the President's constant vigilance about possible 
intrusions on his exclusive powers would impede the President's 
discharge of his non-exclusive constitutional powers. As we 
have recently observed, ``the Constitution's very structure 
suggests the importance of maintaining the `hallmarks of 
executive administration essential to effective act.' '' The 
Constitutional Separation of Powers between the President and 
Congress at 12 (May 7, 1996) (quoting Myers v. United States, 
272 U.S. 52, 134 (1926)). Application of the Inspector General 
Act to the Executive Office of the President would seriously 
undermine this constitutional structure and this should be 
strongly resisted.
    Thank you for the opportunity to present our views on H.R. 
3452. The Office of Management and Budget advises that there is 
no objection to the submission of this letter from the 
standpoint of the Administration's program.
            Sincerely,
                                             Ann M. Harkins
                     (For Andrew Fois, Assistant Attorney General).