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                                                       Calendar No. 971

110th Congress 
 2d Session                      SENATE                          Report
                                                                110-466
_______________________________________________________________________




 TO PROVIDE FOR THE APPOINTMENT OF THE CHIEF HUMAN CAPITAL OFFICER OF 
   THE DEPARTMENT OF HOMELAND SECURITY BY THE SECRETARY OF HOMELAND 
                                SECURITY

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                         HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2816


 TO PROVIDE FOR THE APPOINTMENT OF THE CHIEF HUMAN CAPITAL OFFICER OF 
   THE DEPARTMENT OF HOMELAND SECURITY BY THE SECRETARY OF HOMELAND 
                                SECURITY




               September 16, 2008.--Ordered to be printed

                                ------

                    U.S. GOVERNMENT PRINTING OFFICE

                          WASHINGTON : 2008









        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                        Kenya N. Wiley, Counsel
   Thomas J.R. Richards, Professional Staff Member, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
         Amanda Wood, Minority Director of Governmental Affairs
    Jennifer A. Hemingway, Minority Staff Director, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
Tara L. Shaw, Minority Counsel, Subcommittee on Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk

























                                                       Calendar No. 971

110th Congress                                                  Report
 2d Session                SENATE                               110-466


======================================================================

 
 TO PROVIDE FOR THE APPOINTMENT OF THE CHIEF HUMAN CAPITAL OFFICER OF 
   THE DEPARTMENT OF HOMELAND SECURITY BY THE SECRETARY OF HOMELAND 
                                SECURITY

                                _______
                                

               September 16, 2008.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2816]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2816) to provide 
for the appointment of the Chief Human Capital Officer of the 
Department of Homeland Security by the Secretary of Homeland 
Security, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................1
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................4
  V. Evaluation of Regulatory Impact..................................4
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............5

                         I. Purpose and Summary

    The purpose of S. 2816 is to provide for the appointment or 
designation of the Chief Human Capital Officer (CHCO) of the 
Department of Homeland Security (DHS) by the Secretary of 
Homeland Security, so the DHS CHCO would be selected in the 
same manner as all other department and agency CHCOs.

              II. Background and Need for the Legislation

    The federal government's human capital management became a 
concern when the Government Accountability Office (GAO) 
included federal workforce management on its 2001 high-risk 
list:
    The government's approach to managing its people--its human 
capital--is the critical missing link in reforming and 
modernizing the federal government's management practices. Many 
agencies are experiencing serious human capital challenges, 
such as skills imbalances, succession planning challenges, 
outdated performance management systems, and understaffing. The 
combined effect of these challenges serves to place at risk the 
ability of agencies to efficiently, economically, and 
effectively accomplish their missions, manage critical 
programs, and adequately serve the American people both now and 
in the future. To a significant extent, serious management 
challenges across a wide range of federal agencies, covering 
programs that involve billions of federal expenditures, can be 
attributed to shortcomings in how agencies manage their human 
capital.\1\
---------------------------------------------------------------------------
    \1\ GAO, High Risk Series: An Update, GAO-01-263, January 1, 2001, 
pp. 8-9.
---------------------------------------------------------------------------
    In that report, the GAO identified leadership continuity as 
one of the human capital management challenges across the 
federal government.\2\
---------------------------------------------------------------------------
    \2\ Id. p. 18.
---------------------------------------------------------------------------
    The Chief Human Capital Officers Act of 2002 was enacted as 
part of the Homeland Security Act of 2002 to address the human 
capital problems identified by the GAO and help the federal 
government properly manage its workforce.\3\ To provide for the 
leadership continuity called for by the GAO, the Chief Human 
Capital Officers Act created CHCOs at the federal government's 
24 largest departments and agencies to assist the heads of 
agencies in selecting, developing, training, and managing a 
high-quality, productive workforce and to implement the laws, 
rules and regulations governing civil service within 
agencies.\4\ The head of each of those departments and agencies 
was given the authority to appoint or designate its agency's 
CHCO.\5\ The Act also established an interagency CHCO Council 
to advise and coordinate the personnel functions of each 
agency.\6\ The legislation required that the Council be chaired 
by the Director of the Office of Personnel Management and the 
Deputy Director for Management of the Office of Management and 
Budget.\7\
---------------------------------------------------------------------------
    \3\ Section 1302 of Public Law 107-296 (Nov. 25, 2002) (5 U.S.C. 
Secs. 1401-1402); 148 Cong. Rec. S11182 (November 15, 2002) (statement 
of Senator Voinovich).
    \4\ 5 U.S.C. Sec. 1401; 31 U.S.C. Sec. 901(b).
    \5\ Id.
    \6\ Section 1303 of Public Law 107-296 (Nov. 25, 2002) (5 U.S.C. 
Sec. 1401 note).
    \7\ Id.
---------------------------------------------------------------------------
    The Homeland Security Act of 2002 also provided for the 
Presidential appointment of a Secretary of Homeland Security 
and other DHS officers.\8\ Among the officers required to be 
appointed by the President is the DHS CHCO.\9\ The requirement 
that the President appoint the DHS CHCO is unique, for each 
head of the other federal agencies has the authority to appoint 
or designate its agency's CHCO.\10\ Agency heads have varied in 
appointing CHCOs who are political appointees as well as career 
employees; in June of 2008, 11 agencies represented on the CHCO 
Council had career employees filling the position.\11\
---------------------------------------------------------------------------
    \8\ 6 U.S.C. Sec. 112-113.
    \9\ 6 U.S.C. Sec. 113(d)(3).
    \10\ 5 U.S.C. Sec. 1401.
    \11\ Susan Marshall, Office of Personnel Management Director, 
Congressional Relations, email to Tara Shaw, September 8, 2008.
---------------------------------------------------------------------------
    S. 2816 would align the statutory appointment authority 
relating to the DHS CHCO with the appointment authority 
relating to other agency CHCOs by providing the Secretary of 
Homeland Security with the authority to appoint or designate 
the DHS CHCO.\12\
---------------------------------------------------------------------------
    \12\ 5 U.S.C. Sec. 1401; 31 U.S.C. Sec. 901(b).
---------------------------------------------------------------------------
    As noted by the GAO, sustained leadership is necessary to 
help agencies address their human capital needs, and the 
Committee believes that a long-term, stable CHCO is needed to 
help select, train, and manage the workforce at DHS, where 
approximately 180,000 employees were combined into a new entity 
less than six years ago.\13\ However, there have been seven 
CHCOs at DHS over the past five years.\14\ Three of those CHCOs 
were Acting CHCOs who served as CHCO an average of two and one-
half months.\15\ This turnover highlights the need for the 
Secretary of Homeland Security to have the authority and 
flexibility to designate a career DHS CHCO who can remain at 
DHS beyond the end of any given Presidential administration. In 
the May 14, 2008, Homeland Security and Governmental Affairs 
Committee hearing to consider the nomination of Paul A. 
Schneider to be Deputy Secretary of DHS, Mr. Schneider also 
expressed support for allowing the Secretary of Homeland 
Security to appoint or designate the DHS CHCO:
---------------------------------------------------------------------------
    \13\ GAO, High Risk Series: An Update, GAO-01-263, p. 18-19, 
January 1, 2001; GAO, Organizational Transformation: Implementing Chief 
Operating Officer/Chief Management Officer Positions in Federal 
Agencies, GAO-08-322T, p. 8, December 13, 2007.
    \14\ Jeffrey T. Readinger, U.S. Department of Homeland Security 
Director, Office of Legislative Affairs, e-mail to Tara Shaw, July 1, 
2008.
    \15\ Id.
---------------------------------------------------------------------------
    Being the chief human capital officer at the Department of 
Homeland Security is probably one of the toughest human 
resources or human capital positions in the federal government. 
The fact that by law it's a political appointee means that, for 
the most part, that person will leave on January 20th. You have 
no idea how difficult it was for us to recruit the gentleman 
that the president just announced to be the chief human capital 
officer for what turns out to be the remaining seven months of 
the administration. And the fact of the matter is one of the 
biggest challenges we have in this department is human capital 
. . . The challenges that we have in hiring, in professional 
development, are probably unique in the federal government. 
Having a career civil servant [as CHCO], especially, frankly, 
at this point in time, where somebody could carry over to the 
next administration, would be absolutely essential, I think, to 
improve the management operations of the department, especially 
in this very critical area.\16\
---------------------------------------------------------------------------
    \16\ Senate Homeland Security and Governmental Affairs Committee 
Hearing To Consider the Nomination of: Paul A. Schneider to be Deputy 
Secretary, U.S. Department of Homeland Security, May 14, 2008.
---------------------------------------------------------------------------

                        III. Legislative History

    S. 2816 was introduced by Senator Voinovich on April 3, 
2008. The bill was read twice and referred to the Committee on 
Homeland Security and Governmental Affairs. S. 2816 was co-
sponsored by Senator Akaka and Senator Domenici.
    On June 25, 2008, the Committee considered S. 2816. The 
Committee ordered the bill favorably reported without amendment 
by voice vote. Members present were Lieberman, Akaka, Carper, 
Pryor, McCaskill, Collins, Coleman, Coburn, and Sununu.

                    IV. Section-by-Section Analysis


Section 1. Appointment of the Chief Human Capital Officer by the 
        Secretary of Homeland Security

    This section amends section 103(d) of the Homeland Security 
Act of 2002 by striking paragraph (3) of that subsection, which 
provides for the appointment of the DHS CHCO by the President, 
and renumbering the remaining paragraphs.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office (CBO) states that there are no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and no costs on State, local, or 
tribal governments. The legislation contains no other 
regulatory impact.

                   VI. Estimated Cost of Legislation

                                                     June 27, 2008.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2816, a bill to 
provide for the appointment of the Chief Human Capital Officer 
of the Department of Homeland Security by the Secretary of 
Homeland Security.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

S. 2816--A bill to provide for the appointment of the Chief Human 
        Capital Officer of the Department of Homeland Security by the 
        Secretary of Homeland Security

    Under current law, the Chief Human Capital Officer of the 
Department of Homeland Security is appointed by the President. 
S. 2816 would remove this Presidential authority, thus enabling 
the Secretary of Homeland Security to appoint a person to this 
position. CBO estimates that implementing S. 2816 would have no 
significant costs to the federal government. Enacting the bill 
would not affect direct spending or revenues.
    S. 2816 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Mark Grabowicz. 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

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

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following 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):

                           UNITED STATES CODE

                       TITLE 6. DOMESTIC SECURITY

               CHAPTER 1. HOMELAND SECURITY ORGANIZATION


             SUBCHAPTER I. DEPARTMENT OF HOMELAND SECURITY


SEC. 113. OTHER OFFICERS.

           *       *       *       *       *       *       *


    (d) Other Officers.-- To assist the Secretary in the 
performance of the Secretary's functions, there are the 
following officers, appointed by the President:
          (1) A Director of the Secret Service.
          (2) A Chief Information Officer.
          [(3) A Chief Human Capital Officer.]
          [(4)] (3) An Officer for Civil Rights and Civil 
        Liberties.
          [(5)] (4) A Director for Domestic Nuclear Detection.