(2) secretaries and other immediate staff assistants to the President in the Executive Office of the President

shall be appointed by the head of the agency concerned subject to the civilservice laws, rules, and regulations.

(c) Placing a position under the civil-service laws, rules, and regulations, by or pursuant to this Act shall not thereby give the then incumbent of such position any status under such laws, rules, and regulations, except upon (1) recommendation by the head of the agency concerned within one year after such office or position has been placed under such laws, rules, and regulations; (2) certification within such period by such head that such encumbent served with merit for not less than six months immediately prior to the date such position was placed under such laws, rules, and regulations; and (3) compliance by such incumbent, after examination of his qualifications, with minimum civilservice qualification requirements for such position. An incumbent who fails to meet such minimum qualification requirements shall within not more than six months after such failure be separated from the service. When the incumbent receives a status under the civil-service laws, rules, and regulations, his appointment (if the position is in the apportioned civil service in the District of Columbia) shall be charged to the apportionment of his State, and for this purpose the term "State" includes a Territory and the District of Columbia.

DECENTRALIZATION OF PERSONNEL MANAGEMENT, AND SO FORTH

SEC. 3. Section 1753 of the Revised Statutes is amended to read as follows: "SEC. 1753. (a) The President is authorized to promulgate rules governing the admission of persons into the civil service of the United States, and governing the recruitment, appointment, demotion, assignment, transfer, furlough, dismissal, and reinstatement of persons therein.

"(b) Rules promulgated pursuant to this section shall, as nearly as the conditions of good administration will in the the opinion of the President warrant, be formulated in accordance with the following policies:

"(1) Personnel management in the executive branch of the Government should, except where it is determined that the interests of economy and efficiency otherwise require, be decentralized so that each executive agency will have the responsibility of conducting all of its own personnel operations, subject only to the Civil Service Act of January 16, 1883, as amended; the Veterans' Preference Act of 1944, as amended; and other applicable provisions of law and to such principles and policies as may be prescribed by the President in his rules in order to (A) assure that positions under the civil-service laws, rules, and regulations shall be governed by a genuine merit system; (B) secure economy of operations; (C) secure uniform observance of Government-wide policies concerning civil rights, employee loyalty, and veterans' preferences; (D) promote coordination among the various executive agencies in their personnel practices; and (E) facilitate transfers of employees and applications for employment among agencies. "(2) Compliance on the part of the various executive agencies with the personnel principles and policies established in the President's rules should be enforced (A) by means of inspections and post-audits of personnel operations and reports thereon to the President for such action by the President as he deems appropriate (which may include the withdrawal from any agency of its right to conduct its own personnel operations for such period or periods as the President deems appropriate, and may also include directions to the agency to correct, retroactively or otherwise, the effects of any noncompliance on individual employees), (B) by means of employee appeals provided for in section 3 of the Civil Service Act of January 16, 1883, as amended, and (C) by means of such other appeals (which may include appeals by applicants for employment from examination ratings) as the President may prescribe.

"(3) So far as practicable, applications for appointment should be received in such manner and at such times that current lists of eligible applicants can be continuously maintained; and on such lists the applicants should, so far as practicable after examination of their qualifications, be assigned to qualifications categories, such as 'Exceptionally qualified', 'Well qualified', 'Qualified'. Where the position to be filled is such that, in the opinion of the President it can be better filled by dispensing with rating of applicants within the qualifications categories, rating of applicants within the particular categories should be dispensed with. "(4) Appointments in the classified civil service in the various executive agencies in the District of Columbia should be apportioned among the several States and Territories and the District of Columbia upon the basis of their

population as ascertained in the last preceding census, and every application for appointment in any of the executive agencies in the District of Columbia should be accompanied by a certificate of an officer with his official seal attached, of the county and State of which an applicant claims to be a citizen, that such applicant was, at the time of making such application, a legal or voting resident of such county and State, and had been, or is the wife (living with her husband) of an individual who had been, such a resident for period of not less than one year next preceding. The rules in this respect should not, however, apply to individuals who may be in positions under the civil-service laws, rules, and regulations and seek promotion or appointment in a different executive agency.

"(5) Initial appointment to a position under the civil-service laws, rules, and regulations should be for a fixed probationary period, and absolute appointment not made until after service with merit during the probationary period."

PAY AND PAY ADMINISTRATION

SEC. 4. (a) Within the limits of such maximum and minimum rates of basic compensation for civilian officers and employees in the executive branch of the Government as Congress may from time to time prescribe, the President is authorized to promulgate from time to time schedules and rules governing the rates of basic compensation to be paid officers and employees in the executive branch of the Government, except officers of any executive department of or above the rank of assistant secretary, and officers of any other executive agency whose responsibilities correspond to or exceed in kind and level those of assistant secretaries of an executive department, as determined by the President.

(b) Rules promulgated by the President pursuant to this section shall, to the extent prescribed by the President therein, supersede existing laws, regulations, orders, and directives fixing the rates of pay of the officers and employees covered thereby, or providing for placing their positions in grades or classes for pay purposes.

(c) Until Congress prescribes maximum and minimum rates of basic compensation provided for in subsection (a), no rules may be promulgated by the President under this section which prescribe or authorize pay at a rate less than 75 cents per hour (in the case of personnel to be compensated on an hourly basis) or less than $2,020 per annum (in the case of personnel to be compensated on a salary basis), or which prescribe or authorize basic compensation at a rate greater than the rate of compensation payable to an assistant secretary of an executive department.

(d) Rules promulgated pursuant to this section shall, as nearly as the conditions of good administration will in the opinion of the President warrant, be formulated in accordance with the following principles and policies;

(1) Pay administration in the executive branch of the Government should, except as hereinafter provided, be decentralized so that each executive agency will have the responsibility of making its own job evaluations and classifying the various positions and jobs in that agency for pay purposes, subject to such principles and policies as may be prescribed by the President in his rules in order to secure coordination among the executive agencies in this respect and prevent competition among agencies in the matter of pay alone.

(2) Compliance on the part of the executive agencies with the principles and policies established in the President's rules should be enforced by means of inspections and postaudits of job-evaluation programs and of the applications thereof to the various positions and incumbents, and reports thereon to the President for such action by the President as he deems appropriate, which may include the withdrawal from any agency of the right to conduct its own pay programs and administration for such period or periods as the President deems appropriate, may include directions to the agency to make, retroactively or otherwise, such corrections in pay programs and administration as the President deems are warranted under the circumstances, and may also include directions to the ageny to correct, retroactively or otherwise, the effects of any noncompliance on individual employees.

(3) Administrators and supervisors should receive appropriate pay recognition for effective and economical performance of functions for which they are responsible.

(4) Appropriate pay relationships as between persons employed in the Federal Government and persons employed in private employment, in the various areas throughout the United States and in the various types of work therein, should be established and maintained for such areas and types of work in all cases where

it is practicable and consistent with good administration to do so, and only in cases where it is not practicable and consistent with good administration to establsh and maintain such relationships should pay be fixed on a basis of Nation-wide uniformity.

CIVIL SERVICE COMMISSION

SEC. 5. The first sentence of the Civil Service Act of January 16, 1883, as amended, is amended as follows:

(a) After the first sentence, there is inserted a new sentence reading as follows: "The President shall designate the Commissioner who shall be Chairman." (b) The last sentence of the first paragraph is amended to read as follows: "The Commissioners shall hold no other official place under the United States, except that the Chairman of the Commission shall, ex officio, be the head of the Office of Personnel in the Executive Office of the President."

DUTIES OF COMMISSION AND OF THE CHAIRMAN

SEC. 6. Section 2 of the Civil Service Act of January 16, 1883, as amended, is amended to read as follows:

"SEC. 2. (a) The Chairman of the Commission shall be the chief executive and administrative officer of the Commission and have the power and responsibility of making appointments of Commission personnel, the responsibility of executing, administering, and enforcing the civil service, pay, and personnel rules of the President and the regulations of the Commission issued pursuant thereto, and the responsibility of directing the internal management of the Commission's affairs.

"(b) The Commission shall have (1) the duty of aiding the President, as he may request, in preparing, under section 1753 of the Revised Statutes, as amended, and in accordance with policies hereinafter set forth, rules relating to personnel policies in the executive branch of the Government; (2) the duty of aiding the President, as he may request, in preparing, under section 4 of the Federal Personnel Policy Act of 1949, rules governing pay of the various officers and employees in the executive branch of the Government; (3) the duty, as hereinafter provided, of determining employee appeals from agency personnel actions and issuing such orders in connection therewith as the Commission may deem appropriate; and (4) the duty of formulating and promulgating, with the approval of the President, regulations to carry out the rules of the President and the provisions of this Act.

"(c) The Chairman, on behalf of the Commission, may make investigations concerning the facts, and report upon all matters touching the enforcement and effects of civil service and pay rules and regulations.

"(d) The Commission shall make an annual report to the President for transmission to Congress."

ABOLITION OF STATUTORY OFFICE OF CHIEF EXAMINER AND SECRETARY; DESIGNATION OF DEPUTY CHAIRMAN

SEC. 7.(a) The statutory office of Chief Examiner and the statutory office of Secretary provided for in section 3 of the Civil Service Act of January 16, 1883, as amended, are abolished.

(b) The Chairman of the Civil Service Commission is authorized to designate one of the officers or employees of the Commission as Deputy Chairman of the Commission. The Deputy Chairman shall perform such duties as the Chairman shall direct.

UNIFORM STATUS, APPEAL PRIVILEGES, AND SO FORTH

SEC. 8. Section 3 of the Civil Service Act of January 16, 1883, as amended, is amended to read as follows:

"SEC. 3. (a) All persons, after being initially appointed to positions under the civil-service laws, rules, and regulations and completing the prescribed probationary period, shall have equal status as regards promotion, transfer, reassignment, and reinstatement.

"(b) Every person, after being initially appointed to a position under the civil-service laws, rules, and regulations, and completing the prescribed probationary period, shall have the right to a full and fair hearing on any action which impairs or may impair his pay, rank, status, or continuity of employment. Such hearing shall consist of

"first, the normal grievance procedure that has been established in the executive agency concerned;

"second, if the employee is still aggrieved, a formal hearing conducted by the head of agency or his designated representative or representatives;

"third, if the employee is still aggrieved, an appeal to the Civil Service Commission from the action of the agency determined upon after such formal hearing, except that the Civil Service Commission may refuse to hear an appeal if the evidence presented by the employee concerned fails to raise a definite doubt as to the justification of the action taken by the executive agency concerned.

"(c) For the purposes of the appeals to the Civil Service Commission provided for herein, and the hearing and determination of such appeals by the Commission, the provisions of sections 9 and 10 (relating to the attendance of witnesses and the production of books, papers, and documents) of the Federal Trade Commission Act of September 16, 1914, as amended, are hereby made applicable to the powers and duties of the Commission.

"(d) All employees in the executive branch of the Government may, as individuals or through their employee organizations, comment upon and recommend to the Congress, the President, the Civil Service Commission, and the heads of executive agencies-policies, procedures, and practices which affect the general welfare of Federal employees; and make suggestions as to greater efficiency and economy in the conduct of the work of the Government."

APPRAISALS OF PERFORMANCE

SEC. 9. Section 4 of the Civil Service Act of January 16, 1883, as amended, is amended to read as follows:

"SEC. 4. Efficiency and other performance ratings designed to afford a mandatory basis for increasing or decreasing compensation, or for promotion, demotion, or dismissal, are hereby abolished. In lieu thereof, but primarily for the purpose of (a) assisting employees to recognize their own strengths and deficiencies in job performance and thereby give them concrete objectives for the future and increase their future effectiveness and (b) developing ability and service-record ratings covering each employee, periodic conferences shall be held between the employee and his supervisor and the supervisor's appraisal of the employee's qualifications, strengths, and deficiencies discussed in full with the employee."

APPOINTMENTS, AND SO FORTH, SOLELY ON MERIT

SEC. 10. Section 10 of the Civil Service Act of January 16, 1883, as amended, is amended to read as follows:

"SEC. 10. No person in the public service is for that reason under any obligations to contribute to any political fund, or to render any political service, and no such person is liable to be removed or otherwise prejudiced for refusing to do so. No person in the public service has any right to use his official authority or influence to coerce the political action of any person or body. No political test or qualification shall be permitted or given consideration, and no basis other than merit shall be used, in the selection, promotion, demotion, assignment, transfer, furlough, lay-off, dismissal, discipline, compensation, or reinstatement of employees in positions under the civil-service laws, rules, and regulations. Any officer in the executive branch of the Government (who was appointed by the President either with or without the advice and consent of the Senate) who is found by the President to have violated this section shall be removed from office by the President, and any officer or employee of an executive agency (who was appointed by the head of such agency) who is found by the head of such agency to have violated this section shall be removed from office by the head of such agency. This section shall not be construed to prohibit any holder of political office in the United States from furnishing recommendations relative to the character, ability, and general fitness of an applicant for Federal employment."

PERSONNEL DEVELOPMENT

SEC. 11. (a) It is hereby declared to be a policy of Congress to promote effectiveness and economy in the performance of the authorized functions of the Federal service by recognizing and encouraging the training of Federal employees.

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(b) Executive agencies are hereby specifically authorized to establish and conduct, either separately or jointly, training for employees of such agencies.

(c) Executive agencies may by contract or other means arrange for the training of their employees by educational institutions, research laboratories, public and private agencies or individuals, and shall use established educational institutions whenever, in the judgment of the agency concerned, it is in the interest of the Government to do so. Travel to and from and attendance at such educational institutions, laboratories, or establishments shall be deemed to be official business and the agency is authorized to pay training charges including tuition and other fees.

(d) Executive agencies may grant leave at full or part pay to technical, scientific, and professional employees continuing their technical, professional, or scientific education or engaging in special research on determination by the agency that such training or research would be to the interest of the Government. (e) In the interest of increasing the value of their employees to the Government, executive agencies may authorize attendance of technical, professional, or scientific employees at technical, professional, or scientific meetings as part of their official duties, including travel to and from such meetings, and may encourage the preparation and publication of technical, professional, and scientific articles.

(f) The Civil Service Commission shall conduct research and establish standards on training, and make reviews to determine compliance with standards and maintain a clearing house, reference, and library service on training, and shall provide the other Government agencies upon request with advice and technical assistance in the planning and conduct of their training programs.

(g) The term "training" as used in this section is limited to instruction for, (1) improvement of performance by employees of the agency; (2) the preparation of employees for more difficult or advanced work; (3) insuring the use by employees of new or improved methods, procedures, technical developments, or discoveries related to their work; and (4) affording Federal employees who are war veterans an opportunity to acquire or reacquire knowledges and skills necessary to most efficiently perform the jobs to which appointed and to secure promotions. (h) The authority granted by this section shall be in addition to and not in lieu of other provisions of law authorizing training of employees in the Federal service,

VETERANS' BENEFITS AND PREFERENCES

SEC. 12. (a) Under such arrangements as the President may prescribe, there shall be established throughout the United States facilities for the counseling, testing, and placement in suitable Federal employment of veterans. Such facilities shall be known as "Veterans' Civil Service Counseling and Placement Facilities." Each veteran who applies therefor at any such facility shall have his aptitudes and qualifications tested and evaluated, shall be advised as to any Federal employment or employments for which he appears to be qualified, and shall be provided active assistance in locating and being placed in any suitable Federal vacancy.

(b) The first section of the Veterans' Preference Act of 1944 is amended to read as follows:

"That (a) This Act may be cited as the 'Veterans' Preference Act of 1944.' "(b) As used in this Act-

"(1) the term 'veteran' means an individual described in clause (1) or clause (4) of section 2 of this Act;

"(2) the term 'preference eligible' means an individual described in clause (1), (2), (3), (4), (5), or (6) of section 2 of this Act;

"(3) the term 'special preference eligible' means an individual described in clause (1), (2), (3), (5), or (6) of section 2 of this Act."

(c) Section 3 of the Veterans' Preference Act of 1944 is amended to read as follows:

"SEC. 3. Preference eligibles who are determined on examination to meet at least the minimum qualifications requirements established for any class or classes of positions shall have preference as follows:

"(1) In the case of all positions (except professional, scientific, and technical positions for which the entrance salary exceeds $3,000 per annum), (A) special preference eligibles who qualify shall have their names placed on special registers and shall have preference in certification and appointment over all other preference eligibles as well as over all qualified applicants who are not preference