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115th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      115-1069

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



 
               SECRET SERVICE OVERTIME PAY EXTENSION ACT

                                _______
                                

 December 10, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 6893]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 6893) to amend the Overtime Pay for 
Protective Services Act of 2016 to extend the Secret Service 
overtime pay exception through 2019, and for other purposes, 
having considered the same, report favorably thereon with 
amendments and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Summary and Purpose of Legislation...............................     2
Background and Need for Legislation..............................     2
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     4
Statement of General Performance Goals and Objectives............     4
Legislative History..............................................     4
Committee Consideration..........................................     4
Roll Call Votes..................................................     5
Explanation of Amendments........................................     5
Application of Law to the Legislative Branch.....................     5
Duplication of Federal Programs..................................     5
Disclosure of Directed Rule Makings..............................     5
Federal Advisory Committee Act...................................     5
Unfunded Mandates Statement......................................     5
Earmark Identification...........................................     5
Committee Estimate...............................................     6
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................     6
Section-by-Section Analysis......................................     7
Changes in Existing Law Made by the Bill, as Reported............     7

    The amendments are as follows:
  Section 2 is amended--
          (1) in the heading for such section, by striking 
        ``2019'' and inserting ``2020'';
          (2) in paragraph (1), by striking ``2019'' and 
        inserting ``2020'';
          (3) in paragraph (2), by striking ``or 2019'' and 
        inserting ``2019, or 2020''; and
          (4) in paragraph (3)--
                  (A) by striking ``or 2018'' and inserting 
                ``and 2018''; and
                  (B) by striking ``or 2019'' and inserting 
                ``2019, and 2020''.

                   Summary and Purpose of Legislation

    H.R. 6893, the Secret Service Overtime Pay Extension Act 
extends a waiver of the annual pay cap for basic and premium 
overtime pay for the U.S. Secret Service until the end of 
calendar year 2020. Congress first authorized this waiver in 
the Overtime Pay for Protective Services Act of 2016 (P.L. 114-
311), and extended it in the Secret Service Recruitment and 
Retention Act of 2018 (P.L. 115-160). Lifting the pay cap 
allows Secret Service personnel to be partially compensated for 
overtime hours that result in owed compensation above the cap. 
The additional premium overtime pay will not be creditable 
toward the retirement annuity or annual leave calculations.

                  Background and Need for Legislation

    The United States Secret Service is a federal law 
enforcement agency whose chief responsibility is the protection 
of the President of the United States, the Vice President of 
the United States, immediate families of the occupants of both 
positions, and select other individuals and events of national 
significance.\1\ The Secret Service also has a role in 
investigating certain cybercrimes and currency 
counterfeiting.\2\ The agency has four main personnel types: 
special agents; uniformed division officers; administrative, 
professional, and technical staff; and special officers.\3\
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    \1\18 U.S.C. 3056.
    \2\Reporting Computer, Internet-Related, or Intellectual Property 
Crime, Dep't of Justice, https://www.justice.gov/criminal-ccips/
reporting-computer-internet-related-or-intellectual- property-crime 
(last accessed Oct. 1, 2018).
    \3\See, e.g., Join, U.S. Secret Service, https://
www.secretservice.gov/join/careers/ (last accessed Oct. 1, 2018).
---------------------------------------------------------------------------
    The Committee has a longstanding interest in the Secret 
Service's recruitment and retention issues and a number of 
outstanding recommendations to address them.\4\ In a July 2018 
briefing for Committee staff, the Secret Service provided 
information on its significant efforts to rectify its staffing 
shortage. As of July 27, 2018, the Secret Service was 
projecting net growth of 350 personnel in fiscal year (FY) 
2018, with total personnel totals reaching 7,250.\5\ In 
addition, overall attrition rates were projected to decline to 
7.55 percent, a 1.2 percentage point drop from FY 2016.\6\ 
While attrition is expected to oscillate during election years 
due to the additional workload, the overall trend of declining 
attrition represents progress.
---------------------------------------------------------------------------
    \4\See H. Comm. on Oversight & Gov't Reform, Secret Service 
Recruitment and Retention Act of 2017 1-4, 115th Cong. (Dec. 4, 2017) 
(H. Rep. 115-435, Part I); H. Comm. on Oversight & Gov't Reform, United 
States Secret Service: An Agency in Crisis, 114th Cong. (Dec. 9, 2015) 
(H. Rep. 114-385).
    \5\Briefing by staff, U.S. Secret Service, to staffs, H. Comm. on 
Oversight & Gov't Reform, S. Comm. on Homeland Sec. & Governmental 
Affairs, H. Comm. on Homeland Sec., H. Comm. on the Judiciary, & S. 
Comm. on the Judiciary (July 27, 2018) [hereinafter U.S. Secret Service 
Briefing].
    \6\Id.
---------------------------------------------------------------------------
    Even with these modest gains, Secret Service personnel are 
required to work excessive overtime to ensure the agency's 
protective mission is fully staffed. In calendar year 2017, for 
example, 1,171 Secret Service personnel worked enough overtime 
to reach the statutory annual premium pay cap.\7\ The statutory 
annual premium pay cap limits total aggregate compensation, 
which includes basic and premium overtime pay, for all Federal 
employees on the General Schedule at the biweekly pay 
equivalent of an annual salary of $163,654.\8\
---------------------------------------------------------------------------
    \7\U.S. Secret Service, Secret Service Overtime Payments For 
Protective Services For Calendar Year 2017 3 (Sept. 25, 2018) 
[hereinafter U.S. Secret Service Report].
    \8\5 U.S.C. 5547; See also Office of Personnel Mgmt., Biweekly Caps 
on Premium Pay, https://www.opm.gov/policy-data-oversight/pay-leave/
pay-administration/#url=Biweekly-Pay-Caps (last accessed Oct. 3, 2018); 
The biweekly rate of pay limitation is adjusted for locality pay area, 
and so may be lower or higher depending on the individual's duty 
location. The $163,654 limitation is for the Washington, D.C., locality 
pay area in 2018, the highest in the country. Because the limitation is 
tied to the rate of pay applicable to certain positions (GS-15, step 10 
locality rate, or level V of the Executive Schedule), the value of the 
limitation will also fluctuate depending on any pay increases approved 
by the President or Congress.
---------------------------------------------------------------------------
    Together, the agency's staffing shortages and increased 
protective responsibilities have consistently caused Secret 
Service personnel to reach the statutory pay cap before the end 
of the year, meaning some overtime is not compensated.\9\ 
``Maxing out,'' as it is known within the Secret Service, has 
been reported as a top issue affecting employee morale and 
retention.\10\ In response, Congress raised the premium pay cap 
limitation to level II of the Executive Schedule, which was 
$189,600 in 2018, for calendar years 2016-2018.\11\ Raising the 
premium pay cap limitation resulted in Secret Service personnel 
receiving over $9.7 million in 2017.\12\ The average increase 
in pay was $8,324, while the median increase was $6,211.\13\ 
The greatest amount received by an individual was $26,961.\14\
---------------------------------------------------------------------------
    \9\U.S. Secret Service Briefing, supra note 5.
    \10\Id.
    \11\Overtime Pay for Protective Services Act of 2016, Pub. L. No. 
114-311, 130 Stat. 1531, 1532; Secret Service Recruitment and Retention 
Act of 2017, Pub. L. No. 115-160, 132 Stat. 1246, 1248.
    \12\U.S. Secret Service Report, supra note 7.
    \13\Id.
    \14\Id.
---------------------------------------------------------------------------
    H.R. 6893 will further extend the premium pay cap waiver 
provided to the Secret Service for work on the agency's 
protective mission through the 2020 election year. This is done 
to ensure the Secret Service does not backtrack on its staffing 
improvements and to give more time for the Committee to receive 
the reports required in the most recent extension of the 
premium pay cap waiver.\15\ In keeping with previous practice, 
the bill subjects Secret Service personnel to a new aggregate 
pay cap of level II of the Executive Schedule. Due to changes 
made by the Secret Service Recruitment and Retention Act, 
Secret Service personnel will only be able to collect the 
additional money if the agency is specifically appropriated the 
additional funds.\16\
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    \15\Secret Service Recruitment and Retention Act of 2017, Pub. L. 
No. 115-160, 132 Stat. 1246, 1248, 2(c), 3.
    \16\Id., at 2(a)(1)(C).
---------------------------------------------------------------------------
    Between 700 and 900 Secret Service personnel will be 
eligible for the raised premium pay cap in calendar year 2019, 
while 1,100-1,200 will be eligible in 2020.\17\ Between 80 and 
120 will not be fully compensated in 2019, while 300-500 will 
still have some unpaid overtime in 2020 if the legislation is 
enacted.\18\ However, H.R. 6893 provides partial relief to all 
Secret Service personnel with overtime for which they would not 
otherwise be compensated.
---------------------------------------------------------------------------
    \17\U.S. Secret Service Briefing, supra note 5
    \18\Id.
---------------------------------------------------------------------------

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the previous section.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal or objective of this bill is to amend the Overtime Pay for 
Protective Services Act of 2016 to extend the Secret Service 
overtime pay exception through 2020.

                          Legislative History

    On September 25, 2018, Representative Steve Russell (R-OK) 
introduced H.R. 6893, the Secret Service Overtime Pay Extension 
Act, with Representatives John Katko (R-NY) and Bonnie Watson 
Coleman (D-NJ). H.R. 6893 was referred to the Committee on 
Oversight and Government Reform. The Committee considered H.R. 
6893 at a business meeting on September 27, 2018 and ordered 
the bill favorably reported, as amended, by voice vote.
    H.R. 6893 extends the Secret Service-specific annual 
premium pay cap waiver previously authorized by H.R. 3731, the 
Secret Service Recruitment and Retention Act of 2018, and H.R. 
6302, the Overtime Pay for Protective Services Act of 2016. The 
latter was considered in the 114th Congress. Both were enacted 
into law as P.L. 115-160 and P.L. 114-311, respectively.
    Prior to consideration of H.R. 6302 in the 114th Congress, 
the Committee on Oversight and Government Reform held a hearing 
on compensation and staffing problems at the Secret Service. 
The hearing was held on November 15, 2016.\19\ At that hearing, 
Members discussed the Secret Service's challenges in hiring and 
retaining a sufficient number of special agents in order to 
mitigate excessive overtime in violation of the pay cap.
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    \19\Oversight of the Secret Service: Hearing Before the H. Comm. on 
Oversight & Gov't Reform, 114th Cong. (2016).
---------------------------------------------------------------------------

                        Committee Consideration

    On September 27, 2018, the Committee met in open session 
and, with a quorum being present, ordered the bill favorably 
reported, as amended, by voice vote.

                            Roll Call Votes

    There were no roll call votes requested or conducted during 
Committee consideration of H.R. 6893.

                       Explanation of Amendments

    During Committee consideration of the bill, Representative 
Elijah Cummings (D-MD), the Ranking Minority Member of the 
Committee, offered an amendment to extend the life of the 
Secret Service-specific annual premium pay cap waiver through 
2020. The introduced version of the bill allowed for an 
extension through 2019. The amendment was adopted by voice 
vote.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill amends the Overtime Pay for Protective Services Act 
of 2016 to extend the Secret Service overtime pay exception 
through 2020. As such, this bill does not relate to employment 
or access to public services and accommodations in the 
legislative branch.

                    Duplication of Federal Programs

    In accordance with clause 2(c)(5) of rule XIII no provision 
of this bill 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

    This bill does not direct the completion of any specific 
rule makings within the meaning of section 551 of title 5, 
United States Code.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of Section 5(b) of the appendix to title 5, 
United States Code.

                      Unfunded Mandates Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974 the Committee has included a letter received from the 
Congressional Budget Office below.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the House of Representatives.

                           Committee Estimate

    Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of 
the House of Representatives, the Committee includes below a 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.

   New Budget Authority and Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the House of 
Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

H.R. 6893--Secret Service Overtime Pay Extension Act

    H.R. 6893 would remove certain limits on premium pay for 
employees of the Secret Service who provide protective services 
in calendar years 2019 and 2020. The bill's provisions would 
not apply to years after 2020. The bill would extend the 
provisions that governed such premium pay during calendar years 
2016, 2017, and 2018.
    Under current law, the Secret Service disbursed a total of 
about $23 million in additional premium pay for calendar years 
2016 (a presidential election year) and 2017. The agency 
expects such premium pay to decline somewhat in 2019 and 2020 
because a recent increase in permanent staff has reduced the 
need for overtime. Using information from the Secret Service, 
CBO estimates that implementing the bill would cost a total of 
$17 million over the fiscal year 2019-2021 period, assuming 
appropriation of the necessary amounts. We expect overtime 
spending to surge in the first quarter of fiscal year 2021 
(October through December) as a result of the 2020 presidential 
election. The costs of this bill are shown in the following 
table and fall within budget function 750 (administration of 
justice).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2019    2020    2021    2022    2023   2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level................................       5       8       4       0       0        17
Estimated Outlays............................................       5       8       4       0       0        17
----------------------------------------------------------------------------------------------------------------

    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 6893 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 6893 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 establishes the short title of the bill.

Section 2. Extension of overtime pay exception through 2020 for 
        protective services

    Section 2 amends the Overtime Pay for Protective Services 
Act of 2016 by extending the waiver of the Secret Service-
specific annual premium pay cap in section 5547 of title 5, 
United States Code, for covered employees of the Secret Service 
to the end of 2020. The new premium pay cap will be set at 
level II of the Executive Schedule, consistent with previous 
extensions of the annual premium pay cap waiver at the Secret 
Service.

         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):

            OVERTIME PAY FOR PROTECTIVE SERVICES ACT OF 2016




           *       *       *       *       *       *       *
SEC. 2. PREMIUM PAY EXCEPTION DURING 2016 THROUGH [2018]  2020 FOR 
                    PROTECTIVE SERVICES.

  (a) Definition.--In this section, the term ``covered 
employee'' means any officer, employee, or agent employed by 
the United States Secret Service who performs protective 
services for an individual or event protected by the United 
States Secret Service during 2016, 2017, [or 2018] 2018, 2019, 
or 2020.
  (b) Exception to the Limitation on Premium Pay for Protective 
Services.--
          (1) In general.--Notwithstanding any other provision 
        of law, including section 5547(a) of title 5, United 
        States Code, and only to the extent that an 
        appropriation is provided specifically in an 
        appropriations Act for premium pay in excess of the 
        annual equivalent of the limitation on the rate of pay 
        contained in section 5547(a), any covered employee may 
        receive premium pay during 2016, 2017, [and 2018] 2018, 
        2019, and 2020, to the extent provided under section 
        118 of the Treasury and General Government 
        Appropriations Act, 2001 (5 U.S.C. 5547 note).
          (2) Technical and conforming amendment.--Section 118 
        of the Treasury and General Government Appropriations 
        Act, 2001 (as enacted into law by section 1(3) of 
        Public Law 106-554; 114 Stat. 2763A-134) is amended, in 
        the first sentence, by inserting ``or, if the employee 
        qualifies for an exception to such limitation under 
        section 2(b)(1) of the Overtime Pay for Protective 
        Services Act of 2016, to the extent that such aggregate 
        amount would exceed the rate of basic pay payable for a 
        position at level II of the Executive Schedule under 
        section 5313 of title 5, United States Code'' after 
        ``of that limitation''.
  (c) Treatment of Additional Pay.--If subsection (b) results 
in the payment of additional premium pay to a covered employee 
of a type that is normally creditable as basic pay for 
retirement or any other purpose, that additional pay shall 
not--
          (1) be considered to be basic pay of the covered 
        employee for any purpose; or
          (2) be used in computing a lump-sum payment to the 
        covered employee for accumulated and accrued annual 
        leave under section 5551 or section 5552 of title 5, 
        United States Code.
  (d) Aggregate Limit.--With respect to the application of 
section 5307 of title 5, United States Code, the payment of any 
additional premium pay to a covered employee as a result of 
subsection (b) shall not be counted as part of the aggregate 
compensation of the covered employee.
  (e) Effective Date.--This section and the amendments made by 
this section shall take effect as if enacted on December 31, 
2015.

                                  [all]