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114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-771

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



 
 FEDERAL AVIATION ADMINISTRATION VETERAN TRANSITION IMPROVEMENT ACT OF 
                                  2016

                                _______
                                

 September 20, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5957]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5957) to include disabled veteran 
leave in the personnel management system of the Federal 
Aviation Administration, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Legislative History and Consideration............................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
New Budget Authority and Tax Expenditures........................     2
Congressional Budget Office Cost Estimate........................     3
Performance Goals and Objectives.................................     4
Advisory of Earmarks.............................................     4
Duplication of Federal Programs..................................     4
Disclosure of Directed Rule Makings..............................     4
Federal Mandate Statement........................................     4
Preemption Clarification.........................................     4
Advisory Committee Statement.....................................     4
Applicability of Legislative Branch..............................     5
Section-by-Section Analysis of Legislation.......................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                         Purpose of Legislation

    H.R. 5957 grants veterans with certain service-connected 
disabilities employed by the Federal Aviation Administration 
additional leave for medical treatment consistent with the 
Wounded Warriors Federal Leave Act (Public Law 114-75).

                  Background and Need for Legislation

    H.R. 5957 would extend the protections of the Wounded 
Warriors Federal Leave Act to employees of the Federal Aviation 
Administration. The Wounded Warriors Federal Leave Act allows 
veterans with service-connected disabilities of 30 percent or 
more who are newly hired by the federal government to receive 
up to 104 hours of paid leave to undergo treatment for such 
disabilities during their first year of employment.
    This legislation is necessary because previous reforms to 
the Federal Aviation Administration's personnel and acquisition 
authorities removed automatic application of title 5, United 
States Code federal employment provisions. As a result, the 
Wounded Warriors Federal Leave Act applies to veterans newly 
employed by most federal agencies, but not those employed by 
the Federal Aviation Administration. H.R. 5957 ensures veterans 
newly employed by the Federal Aviation Administration are 
eligible for such benefits.

                                Hearings

    No hearings were held on H.R. 5957.

                 Legislative History and Consideration

    On September 8, 2016, Representative Rick Larsen (D-WA) 
introduced, for himself and Representative Frank LoBiondo (R-
NJ), H.R. 5957, a bill to include disabled veteran leave in the 
personnel management system of the Federal Aviation 
Administration.
    On September 14, 2016, the Committee on Transportation and 
Infrastructure met in open session. The Committee ordered the 
bill reported favorably to the House of Representatives by 
voice vote with a quorum present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no record votes taken in connection 
with consideration of H.R. 5957.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 5957 from the 
Director of the Congressional Budget Office:

                                                September 19, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5957, the Federal 
Aviation Administration Veteran Transition Improvement Act of 
2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 5957--Federal Aviation Administration Veteran Transition 
        Improvement Act of 2016

    Under current law, the personnel management system of the 
Federal Aviation Administration (FAA) is exempt from many of 
the requirements of Title V of the United States Code, which 
governs the organization and personnel policies of most federal 
civilian agencies. H.R. 5957 would require the FAA to adopt 
policies, specified in Title V, related to the use of medical 
leave by certain disabled veterans.
    CBO estimates that enacting H.R. 5957 would not affect the 
federal budget. According to the FAA, the agency is already in 
the process of updating its personnel policies to provide 
medical leave benefits for disabled veterans that are 
consistent with the provisions of Title V. As a result, CBO 
estimates that enacting H.R. 5957 would have no further effect 
on the agency's personnel policies or federal spending for the 
compensation and benefits of FAA employees, which is subject to 
appropriation. H.R. 5957 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5957 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 5957 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 Megan Carroll. 
The estimate was approved by Theresa Gullo, Assistant Director 
for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
include disabled veteran leave in the personnel management 
system of the Federal Aviation Administration thereby ensuring 
parity between veterans at the Federal Aviation Administration 
and other federal agencies.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 5957 establishes 
or reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that enacting H.R. 5957 does not direct the 
completion of a specific rule making within the meaning of 
section 551 of title 5, United States Code.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 5957 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation


Section 1. Short title

    The short title of the bill is the ``Federal Aviation 
Administration Veteran Transition Improvement Act of 2016.''

Section 2. Inclusion of disabled veteran leave in Federal Aviation 
        Administration personnel management system

    Section 2 amends section 40122 of title 49, United States 
Code to apply 5 U.S.C. 6329 to the Federal Aviation 
Administration personnel management system.

         Changes in Existing Law Made by the Bill, as Reported

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

                      TITLE 49, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


SUBPART I--GENERAL

           *       *       *       *       *       *       *


CHAPTER 401--GENERAL PROVISIONS

           *       *       *       *       *       *       *



Sec. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system 
        initially implemented by the Administrator of the 
        Federal Aviation Administration on April 1, 1996, the 
        Administrator shall negotiate with the exclusive 
        bargaining representatives of employees of the 
        Administration certified under section 7111 of title 5 
        and consult with other employees of the Administration.
          (2) Dispute resolution.--
                  (A) Mediation.--If the Administrator does not 
                reach an agreement under paragraph (1) or the 
                provisions referred to in subsection (g)(2)(C) 
                with the exclusive bargaining representative of 
                the employees, the Administrator and the 
                bargaining representative--
                          (i) shall use the services of the 
                        Federal Mediation and Conciliation 
                        Service to attempt to reach such 
                        agreement in accordance with part 1425 
                        of title 29, Code of Federal 
                        Regulations (as in effect on the date 
                        of enactment of the FAA Modernization 
                        and Reform Act of 2012); or
                          (ii) may by mutual agreement adopt 
                        alternative procedures for the 
                        resolution of disputes or impasses 
                        arising in the negotiation of the 
                        collective-bargaining agreement.
                  (B) Mid-term bargaining.--If the services of 
                the Federal Mediation and Conciliation Service 
                under subparagraph (A)(i) do not lead to the 
                resolution of issues in controversy arising 
                from the negotiation of a mid-term collective-
                bargaining agreement, the Federal Service 
                Impasses Panel shall assist the parties in 
                resolving the impasse in accordance with 
                section 7119 of title 5.
                  (C) Binding arbitration for term 
                bargaining.--
                          (i) Assistance from federal service 
                        impasses panel.--If the services of the 
                        Federal Mediation and Conciliation 
                        Service under subparagraph (A)(i) do 
                        not lead to the resolution of issues in 
                        controversy arising from the 
                        negotiation of a term collective-
                        bargaining agreement, the Administrator 
                        and the exclusive bargaining 
                        representative of the employees (in 
                        this subparagraph referred to as the 
                        ``parties'') shall submit their issues 
                        in controversy to the Federal Service 
                        Impasses Panel. The Panel shall assist 
                        the parties in resolving the impasse by 
                        asserting jurisdiction and ordering 
                        binding arbitration by a private 
                        arbitration board consisting of 3 
                        members.
                          (ii) Appointment of arbitration 
                        board.--The Executive Director of the 
                        Panel shall provide for the appointment 
                        of the 3 members of a private 
                        arbitration board under clause (i) by 
                        requesting the Director of the Federal 
                        Mediation and Conciliation Service to 
                        prepare a list of not less than 15 
                        names of arbitrators with Federal 
                        sector experience and by providing the 
                        list to the parties. Not later than 10 
                        days after receiving the list, the 
                        parties shall each select one person 
                        from the list. The 2 arbitrators 
                        selected by the parties shall then 
                        select a third person from the list not 
                        later than 7 days after being selected. 
                        If either of the parties fails to 
                        select a person or if the 2 arbitrators 
                        are unable to agree on the third person 
                        in 7 days, the parties shall make the 
                        selection by alternately striking names 
                        on the list until one arbitrator 
                        remains.
                          (iii) Framing issues in 
                        controversy.--If the parties do not 
                        agree on the framing of the issues to 
                        be submitted for arbitration, the 
                        arbitration board shall frame the 
                        issues.
                          (iv) Hearings.--The arbitration board 
                        shall give the parties a full and fair 
                        hearing, including an opportunity to 
                        present evidence in support of their 
                        claims and an opportunity to present 
                        their case in person, by counsel, or by 
                        other representative as they may elect.
                          (v) Decisions.--The arbitration board 
                        shall render its decision within 90 
                        days after the date of its appointment. 
                        Decisions of the arbitration board 
                        shall be conclusive and binding upon 
                        the parties.
                          (vi) Matters for consideration.--The 
                        arbitration board shall take into 
                        consideration such factors as--
                                  (I) the effect of its 
                                arbitration decisions on the 
                                Federal Aviation 
                                Administration's ability to 
                                attract and retain a qualified 
                                workforce;
                                  (II) the effect of its 
                                arbitration decisions on the 
                                Federal Aviation 
                                Administration's budget; and
                                  (III) any other factors whose 
                                consideration would assist the 
                                board in fashioning a fair and 
                                equitable award.
                          (vii) Costs.--The parties shall share 
                        costs of the arbitration equally.
          (3) Ratification of agreements.--Upon reaching a 
        voluntary agreement or at the conclusion of the binding 
        arbitration under paragraph (2)(C), the final 
        agreement, except for those matters decided by an 
        arbitration board, shall be subject to ratification by 
        the exclusive bargaining representative of the 
        employees, if so requested by the bargaining 
        representative, and the final agreement shall be 
        subject to approval by the head of the agency in 
        accordance with the provisions referred to in 
        subsection (g)(2)(C).
          (4) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall use every 
        reasonable effort to find cost savings and to increase 
        productivity within each of the affected bargaining 
        units.
          (5) Annual budget discussions.--The Administration 
        and the exclusive bargaining representatives of the 
        employees shall meet annually for the purpose of 
        finding additional cost savings within the 
        Administration's annual budget as it applies to each of 
        the affected bargaining units and throughout the 
        agency.
  (b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration 
shall employ outside experts to provide an independent 
evaluation of the effectiveness of the system within 3 months 
after such date. For this purpose, the Administrator may 
utilize the services of experts and consultants under section 
3109 of title 5 without regard to the limitation imposed by the 
last sentence of section 3109(b) of such title, and may 
contract on a sole source basis, notwithstanding any other 
provision of law to the contrary.
  (c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in 
excess of the annual rate of basic pay payable to the 
Administrator.
  (d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the 
Office of Government Ethics, including those set forth in 
section 2635 of title 5 of the Code of Federal Regulations.
  (e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay 
provided employees of the Administration shall not be 
involuntarily adversely affected by reason of the enactment of 
this section, except for unacceptable performance or by reason 
of a reduction in force or reorganization or by agreement 
between the Administration and the affected employees' 
exclusive bargaining representative.
  (f) Labor-Management Agreements.--Except as otherwise 
provided by this title, all labor-management agreements 
covering employees of the Administration that are in effect on 
the effective date of the Air Traffic Management System 
Performance Improvement Act of 1996 shall remain in effect 
until their normal expiration date, unless the Administrator 
and the exclusive bargaining representative agree to the 
contrary.
  (g) Personnel Management System.--
          (1) In general.--In consultation with the employees 
        of the Administration and such non-governmental experts 
        in personnel management systems as he may employ, and 
        notwithstanding the provisions of title 5 and other 
        Federal personnel laws, the Administrator shall develop 
        and implement, not later than January 1, 1996, a 
        personnel management system for the Administration that 
        addresses the unique demands on the agency's workforce. 
        Such a new system shall, at a minimum, provide for 
        greater flexibility in the hiring, training, 
        compensation, and location of personnel.
          (2) Applicability of title 5.--The provisions of 
        title 5 shall not apply to the new personnel management 
        system developed and implemented pursuant to paragraph 
        (1), with the exception of--
                  (A) section 2302(b), relating to 
                whistleblower protection, including the 
                provisions for investigation and enforcement as 
                provided in chapter 12 of title 5;
                  (B) sections 3308-3320, relating to veterans' 
                preference;
                  (C) chapter 71, relating to labor-management 
                relations;
                  (D) section 7204, relating to 
                antidiscrimination;
                  (E) chapter 73, relating to suitability, 
                security, and conduct;
                  (F) chapter 81, relating to compensation for 
                work injury;
                  (G) chapters 83-85, 87, and 89, relating to 
                retirement, unemployment compensation, and 
                insurance coverage;
                  (H) sections 1204, 1211-1218, 1221, and 7701-
                7703, relating to the Merit Systems Protection 
                Board[; and];
                  (I) subsections (b), (c), and (d) of section 
                4507 (relating to Meritorious Executive or 
                Distinguished Executive rank awards) and 
                subsections (b) and (c) of section 4507a 
                (relating to Meritorious Senior Professional or 
                Distinguished Senior Professional rank awards), 
                except that--
                          (i) for purposes of applying such 
                        provisions to the personnel management 
                        system--
                                  (I) the term ``agency'' means 
                                the Department of 
                                Transportation;
                                  (II) the term ``senior 
                                executive'' means a Federal 
                                Aviation Administration 
                                executive;
                                  (III) the term ``career 
                                appointee'' means a Federal 
                                Aviation Administration career 
                                executive; and
                                  (IV) the term ``senior career 
                                employee'' means a Federal 
                                Aviation Administration career 
                                senior professional;
                          (ii) receipt by a career appointee or 
                        a senior career employee of the rank of 
                        Meritorious Executive or Meritorious 
                        Senior Professional entitles the 
                        individual to a lump-sum payment of an 
                        amount equal to 20 percent of annual 
                        basic pay, which shall be in addition 
                        to the basic pay paid under the Federal 
                        Aviation Administration Executive 
                        Compensation Plan; and
                          (iii) receipt by a career appointee 
                        or a senior career employee of the rank 
                        of Distinguished Executive or 
                        Distinguished Senior Professional 
                        entitles the individual to a lump-sum 
                        payment of an amount equal to 35 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan[.]; and
                  (J) subject to paragraph (4) of this 
                subsection, section 6329, relating to disabled 
                veteran leave.
          (3) Appeals to merit systems protection board.--Under 
        the new personnel management system developed and 
        implemented under paragraph (1), an employee of the 
        Administration may submit an appeal to the Merit 
        Systems Protection Board and may seek judicial review 
        of any resulting final orders or decisions of the Board 
        from any action that was appealable to the Board under 
        any law, rule, or regulation as of March 31, 1996. 
        Notwithstanding any other provision of law, retroactive 
        to April 1, 1996, the Board shall have the same 
        remedial authority over such employee appeals that it 
        had as of March 31, 1996.
          (4) Certification of disabled veteran leave.--In 
        order to verify that leave credited to an employee 
        pursuant to paragraph (2)(J) is used for treating a 
        service-connected disability, that employee shall, 
        notwithstanding section 6329(c) of title 5, submit to 
        the Assistant Administrator for Human Resource 
        Management of the Federal Aviation Administration 
        certification, in such form and manner as the 
        Administrator of the Federal Aviation Administration 
        may prescribe, that the employee used that leave for 
        purposes of being furnished treatment for that 
        disability by a health care provider.
          [(4)] (5) Effective date.--This subsection shall take 
        effect on April 1, 1996.
  (h) Right To Contest Adverse Personnel Actions.--An employee 
of the Federal Aviation Administration who is the subject of a 
major adverse personnel action may contest the action either 
through any contractual grievance procedure that is applicable 
to the employee as a member of the collective bargaining unit 
or through the Administration's internal process relating to 
review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment, or under 
section 40122(g)(3).
  (i) Election of Forum.--Where a major adverse personnel 
action may be contested through more than one of the indicated 
forums (such as the contractual grievance procedure, the 
Federal Aviation Administration's internal process, or that of 
the Merit Systems Protection Board), an employee must elect the 
forum through which the matter will be contested. Nothing in 
this section is intended to allow an employee to contest an 
action through more than one forum unless otherwise allowed by 
law.
  (j) Definition.--In this section, the term ``major adverse 
personnel action'' means a suspension of more than 14 days, a 
reduction in pay or grade, a removal for conduct or 
performance, a nondisciplinary removal, a furlough of 30 days 
or less (but not including placement in a nonpay status as the 
result of a lapse of appropriations or an enactment by 
Congress), or a reduction in force action.

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