Unknown. Interim rule with request for comments

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2003-09-12.xml --- 68 177 Friday, September 12, 2003 Contents Agency Agency for Healthcare Research and Quality NOTICES Meetings: Health Care Policy and Research Special Emphasis Panel, 53741 03-23229 Agricultural Agricultural Marketing Service NOTICES Meetings: Burley Tobacco Advisory Committee, 53708 03-23216 Agricultural Agricultural Research Service NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive:

Aerotech Laboratories, Inc., 53708 03-23218 Agriculture Agriculture Department See Agricultural Marketing Service See Agricultural Research Service See Forest Service See Rural Utilities Service Air Force Air Force Department NOTICES Environmental statements; availability, etc.: Los Angeles Air Force Base, CA; land conveyance, construction, development, and consolidation, 53724 03-23211 Meetings: Science Advisory Board, 53724 03-23210 Army Army Department See Engineers Corps NOTICES Environmental statements; notice of intent:

Fort Bliss, TX; brackish water desalination plant and support facilities, 53724 03-23243 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Medicare & Medicaid Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 53741-53742 03-23213 03-23214 Coast Guard Coast Guard RULES Ports and waterways safety: Portland, OR; large passenger vessels; safety and security zone, 53677-53680 03-23303 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled RULES Nonprofit agencies; annual certifications; due dates, 53684-53685 03-23325 NOTICES Procurement list; additions and deletions, 53709-53711 03-23326 03-23327 Community Community Development Financial Institutions Fund NOTICES Grants and cooperative agreements; availability, etc.:

New Markets Tax Credit Program, 53780-53781 03-23280 Defense Defense Department See Air Force Department See Army Department See Engineers Corps Drug Drug Enforcement Administration RULES Schedules of controlled substances: Anabolic steroid products Suspension withdrawn, 53677 03-23287 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 53726-53727 03-23230 03-23231 Employment Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 53753-53754 03-23247 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 53754-53755 03-22894 Energy Energy Department See Federal Energy Regulatory Commission Engineers Engineers Corps NOTICES Environmental statements; notice of intent:

Port of Long Beach, CA; Pier S Marine Terminal Project, 53725-53726 03-23205 EPA Environmental Protection Agency PROPOSED RULES Small Business Liability Relief and Brownfields Revitalization Act; implementation: All Appropriate Inquiry Negotiated Rulemaking Committee— Meetings, 53687 03-23273 Water pollution control: Ocean dumping; site designations— Long Island Sound, CT, 53687-53696 03-22645 NOTICES Environmental statements; availability, etc.: Agency statements— Comment availability, 53728-53730 03-23306 Weekly receipts, 53730 03-23307 Environmental statements; notice of intent:

Yucaipa Valley Water District, CA; Regional Non-Potable Water Distribution System Project, 53730-53731 03-23308 Grants and cooperative agreements; availability, etc.: Region III Urban Initiative, 53731-53734 03-23275 Meetings: Clean Air Scientific Advisory Committee, 53734-53735 03-23274 Ecological Processes and Effects Committee, 53735-53736 03-23272 Science Advisory Board Executive Committee, 53736-53737 03-23264 Executive Executive Office of the President See Presidential Documents FAA Federal Aviation Administration RULES Airworthiness standards:

Special conditions— Cessna Model 680 Sovereign airplane, 53672-53674 03-23293 Class D and Class E airspace, 53674-53675 03-23298 Class E airspace, 53675, 53676 03-23296 03-23297 03-23299 03-23300 NOTICES Exemption petitions; summary and disposition, 53776 03-23295 Technical standard orders: Transport airplane seats certified by static testing, 53776-53777 03-23302 FCC Federal Communications Commission PROPOSED RULES Common carrier services: Antenna structures; construction, marking, and lighting— Communications towers; effects on migratory birds, 53696-53702 03-23311 Satellite communications— Satellite and earth station license procedures; electronic filings requirements, 53702-53705 03-23315 NOTICES Agency information collection activities; proposals, submissions, and approvals, 53737-53740 03-23312 03-23313 03-23314 Rulemaking proceedings; petitions filed, granted, denied, etc., 53740 03-23246 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings:

North Hartland, LLC., et al., 53727-53728 03-23253 Federal Reserve Federal Reserve System RULES Availability of fund and collection of checks (Regulation CC): Check processing operations restructuring; amendments Correction, 53672 03-23239 NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 53740-53741 03-23238 Federal Retirement Federal Retirement Thrift Investment Board NOTICES Meetings: Employee Thrift Advisory Council, 53741 03-23200 Fish Fish and Wildlife Service PROPOSED RULES Importation, exportation, and transportation of wildlife:

Injurious wildlife— Boiga snakes, 53705-53706 03-23286 NOTICES Endangered and threatened species and marine mammal permit applications, 03-23220 53746-53747 03-23222 Endangered and threatened species permit applications, 53747 03-23223 Environmental statements; availability, etc.: Survival enhancement permits— Southwestern willow flycatcher and Little Colorado River spinedace; Apache County, AZ; safe harbor agreement, 53747-53748 03-23244 Environmental statements; notice of intent:

Incidental take permits— Pima County, AZ; Multi-Species Conservation Plan, 53748-53751 03-23355 Marine mammal permit applications, 53751 03-23221 Meetings: Sport Fishing and Boating Partnership Council, 53751 03-23233 Food Food and Drug Administration NOTICES Anti-counterfeit drug initiative; correction, 53742-53743 03-23250 Forest Forest Service NOTICES Meetings: Resource Advisory Committees— Northeast Oregon Forests, 53708 03-23209 Health Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Coast Guard NOTICES Agency information collection activities; proposals, submissions, and approvals, 53745 03-23290 Meetings:

Support Anti-Terrorism by Fostering Effective Technologies Act of 2002; application process; seminars, 53745 03-23291 Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 53791-53813 03-23024 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Reclamation Bureau IRS Internal Revenue Service PROPOSED RULES Procedure and administration:

Testimony or production of records in court or other proceeding Correction, 53687 03-23318 NOTICES Agency information collection activities; proposals, submissions, and approvals, 03-23319 03-23320 03-23321 53781-53783 03-23322 Meetings: Taxpayer Advocacy Panels, 03-23323 53783-53784 03-23324 International International Trade Administration NOTICES Antidumping: Synthetic indigo from— China, 53711-53712 03-23317 International International Trade Commission NOTICES Import investigations:

Insect traps, 53752-53753 03-23219 Justice Justice Department See Drug Enforcement Administration Labor Labor Department See Employment and Training Administration See Employment Standards Administration NOTICES Reports and guidance documents; availability, etc.: Research misconduct; policy statement, 53861-53866 03-23248 Land Land Management Bureau NOTICES Organization, functions, and authority delegations: Pocatello Field Office, ID; relocation and address change, 53751-53752 03-23242 Maritime Maritime Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 53777 03-23281 National Archives National Archives and Records Administration RULES NARA facilities:

Exhibition Hall; hours of operation, 53680-53681 03-23201 National Communications National Communications System NOTICES Agency information collection activities; proposals, submissions, and approvals, 53755 03-23212 National Highway National Highway Traffic Safety Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 53777-53778 03-23409 NIH National Institutes of Health NOTICES Agency information collection activities; proposals, submissions, and approvals, 53743 03-23237 Meetings:

National Cancer Institute, 53744 03-23236 National Institute of Allergy and Infectious Diseases, 53744 03-23234 National Institute on Aging, 53744-53745 03-23235 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Pacific cod, 53686 03-23292 West Coast States and Western Pacific fisheries— West Coast salmon, 53685-53686 03-23204 PROPOSED RULES Fishery conservation and management: Caribbean, Gulf, and South Atlantic fisheries— Snapper-grouper, 53706-53707 03-23310 NOTICES Environmental statements; notice of intent:

Pacific Coast Groundfish Fishery Management Plan; cowcod, bacaccio, widow rockfish, and yelloweye rockfish; rebuilding plans, 53712-53714 03-23203 Marine mammals: Incidental taking; authorization letters, etc.— Norwegian Sea, Norway; oceanographic surveys at Storegga Slide, 53714-53720 03-23309 Permits: Scientific research, 53720-53721 03-23202 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.: STP Nuclear Operating Co., 53760-53761 03-23254 Meetings:

Reactor Safeguards Advisory Committee, 53761 03-23256 *Applications, hearings, determinations, etc.:* Omaha Public Power District, 53755-53758 03-23255 STP Nuclear Operating Co., 53758-53760 03-23252 Patent Patent and Trademark Office PROPOSED RULES Practice and procedure: 21st Century Strategic Plan; implementation, 53815-53859 03-23010 NOTICES Agency information collection activities; proposals, submissions, and approvals, 53721-53724 03-23245 Personnel Personnel Management Office RULES Pay administration:

Extended assignment incentives, 53667-53672 03-23132 Postal Postal Rate Commission NOTICES Meetings: Data reporting systems merger; briefing; correction, 53761 03-23232 Presidential Presidential Documents ADMINISTRATIVE ORDERS Terrorist attacks; continuation of national emergency with respect to certain (Notice of September 10, 2003), 53665 03-23511 Afghanistan; transmittal of report to the Congress on security needs (Memorandum of July 22, 2003), 53867-53869 03-23569 Railroad Railroad Retirement Board NOTICES Agency information collection activities; proposals, submissions, and approvals, 53761-53762 03-23215 Reclamation Reclamation Bureau NOTICES Central Valley Project Improvement Act:

Water management plans; evaluation criteria, 53752 03-23241 RUS Rural Utilities Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 53709 03-23217 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes: National Association of Securities Dealers, Inc., 53762-53770 03-23224 03-23226 03-23228 03-23288 Pacific Exchange, Inc., 53770-53773 03-23289 Philadelphia Stock Exchange, Inc., 53773-53774 03-23227 SBA Small Business Administration NOTICES Disaster loan areas:

Florida, 53774 03-23279 Nevada, 53774 03-23278 Meetings: Veterans Business Affairs Advisory Committee, 53774 03-23277 State State Department NOTICES Art objects; importation for exhibition: Rembrandt's Journey: Painter, Draftsman, Etcher, 53774-53775 03-23285 The Raphael, Cellini and a Renaissance Banker: The Patronage of Bindo Altoviti, 53775 03-23284 Meetings: Public Diplomacy, U.S. Advisory Commission, 53775 03-23282 Senior Executive Service: Performance Review Board; membership, 53775-53776 03-23283 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.:

Consolidated Rail Corp., 53778 03-23170 CSX Transportation, Inc., 53779 03-23257 R.J. Corman Equipment Co., LLC, 53779-53780 03-23258 Transportation Transportation Department See Federal Aviation Administration See Maritime Administration See National Highway Traffic Safety Administration See Surface Transportation Board Treasury Treasury Department See Community Development Financial Institutions Fund See Internal Revenue Service Veterans Veterans Affairs Department RULES Board of Veterans’ Appeals:

Appeals regulations and rules of practice— Aging veterans; speeding appellate review process, 53682-53684 03-23261 Grounds of clear and unmistakable error decisions, 53681-53682 03-23260 PROPOSED RULES Acquisition regulations: Sealed bidding and competitive proposals; withdrawn, 53705 03-23199 NOTICES Meetings: Medical Research Service Merit Review Committee, 53784 03-23263 VA Nursing National Commission, 53784 03-23262 Privacy Act: Systems of records, 53784-53789 03-23259 Separate Parts In This Issue Part II Housing and Urban Development Department, 53791-53813 03-23024 Part III Commerce Department, Patent and Trademark Office, 53815-53859 03-23010 Part IV Labor Department, 53861-53866 03-23248 Part V Executive Office of the President, Presidential Documents, 53867-53869 03-23569 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 68 177 Friday, September 12, 2003 Rules and Regulations OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 575 RIN 3206-AK01 Extended Assignment Incentives AGENCY: Office of Personnel Management. ACTION: Interim rule with request for comments.

SUMMARY: The Office of Personnel Management is issuing interim regulations to implement a recent statutory amendment that authorizes the payment of extended assignment incentives to certain categories of Federal employees in positions located in a territory or possession of the United States, the Commonwealth of Puerto Rico, or the Commonwealth of the Northern Mariana Islands. The interim regulations establish the criteria and procedures for the payment of extended assignment incentives.

DATES: *Effective Date:* The interim regulations will become effective on September 12, 2003. *Applicability Date:* The interim regulations apply on the 1st day of the first applicable pay period beginning on or after September 12, 2003. *Comment Date:* Comments must be received on or before November 12, 2003. ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy Associate Director for Pay and Performance Policy, Office of Personnel Management, Room 7H31, 1900 E Street NW., Washington, DC 20415, FAX:

(202)606-4264, or e-mail at *pay-performance-policy@opm.gov.* FOR FURTHER INFORMATION CONTACT: Lee Kara by telephone at

(202)606-2858; by fax at

(202)606-4264; or by e-mail at *pay-performance-policy@opm.gov.* SUPPLEMENTARY INFORMATION: The Office of Personnel Management

(OPM)is issuing interim regulations on the payment of extended assignment incentives authorized by section 207 of Public Law 107-273 (November 2, 2002). Section 207 adds a new section 5757 to chapter 57 of title 5, United States Code, to permit the head of an Executive agency to pay an extended assignment incentive to certain Federal employees assigned to positions located in a territory or possession of the United States, the Commonwealth of Puerto Rico, or the Commonwealth of the Northern Mariana Islands. Public Law 107-273 provides that section 207 will become effective on the 1st day of the first applicable pay period beginning on or after 6 months after the date of enactment of the Act (November 2, 2002). The 6-month period ended on May 2, 2003. Since biweekly pay periods for Federal employees begin on a Sunday, this provision became effective on May 4, 2003, for most employees. However, for the few agencies using an alternative biweekly payroll cycle, the law became effective on May 11, 2003. Extended Assignment Incentives Congress provided authority to pay extended assignment incentives to assist agencies in retaining experienced, well-trained employees in a U.S. territory, possession, or commonwealth for a longer period than the employee's initial tour of duty. The interim regulations permit the head of an Executive agency to provide an extended assignment incentive to an employee if

(1)the employee has completed at least 2 years of continuous service in one or more civil service positions located in a given territory or possession of the United States, the Commonwealth of Puerto Rico, or the Commonwealth of the Northern Mariana Islands;

(2)the agency determines that replacing the employee with another employee possessing the required qualifications and experience would be difficult; and

(3)the agency determines that it is in the best interest of the Government to encourage the employee to complete a specified additional period of employment with the agency in one of the covered locations. An employee must have completed the required 2 years of continuous service immediately before commencement of a service agreement to receive an extended assignment incentive. In determining whether it is in the best interest of the Government to retain the employee in a particular location, an agency may consider how the employee's departure would affect the agency's ability to carry out an activity or perform a function that the agency deems essential to its mission or to operate effectively. By law, the total amount of service an employee may perform in a particular territory, possession, or commonwealth under one or more extended assignment incentive service agreements with an agency may not exceed 5 years. The interim regulations require the head of the agency to establish an agency plan for authorizing extended assignment incentives. The plan must designate the agency officials with authority to review and approve incentive payments, agency criteria for authorizing extended assignment incentive payments and determining the amount of a payment, requirements governing service agreements, procedures for paying extended assignment incentives, and documentation and recordkeeping requirements sufficient to allow reconstruction of the action. Subject to the limitations in § 575.506, any employee who meets the definition of “employee” under 5 U.S.C. 2105 is eligible to receive an extended assignment incentive, including employees in General Schedule positions, senior-level and scientific or professional positions, Senior Executive Service positions, and prevailing rate positions covered by the Federal Wage System. Any agency-wide limitations or prohibitions regarding the categories of employees that may receive an extended assignment incentive should be documented in the agency plan. An employee may receive an extended assignment incentive not to exceed the greater of

(1)25 percent of the annual rate of basic pay of the employee at the beginning of the service period times the number of years in the service period; or

(2)$15,000 per year in the service period. The service period must begin on the first day of a pay period and end on the last day of a pay period. For example, assume an agency wishes to pay the maximum extended assignment incentive to an employee who signed an extended assignment incentive service agreement to serve 39 pay periods (546 days) and his or her annual rate of basic pay at the beginning of the service period is $65,335. To determine the maximum extended assignment incentive payments the agency may authorize, the following calculations must be made:

(1)$65,335 (annual rate) × .25 (25%) × 1.5 years (546/365) = $24,501; and

(2)$15,000 × 1.5 years = $22,500. Thus, the employee may receive extended assignment incentive payments of up to $24,501. Extended assignment incentives are subject to the aggregate compensation limitation established by 5 U.S.C. 5307 and regulated in 5 CFR part 530, subpart B. They constitute “other similar payments” under paragraph

(14)of the definition of “aggregate compensation” in § 530.202. Before paying an extended assignment incentive, an agency must require the employee to sign a written service agreement to complete a specified period of additional employment with the agency in one of the covered locations. The service agreement also must specify the amount of the incentive payment, the method of paying the incentive, the conditions under which an agreement may be terminated, the requirements and procedures for the repayment of incentive payments if an employee separates prior to completion of the service period, and any other terms and conditions for receiving and retaining extended assignment incentive payments. The method of paying the incentive may include an initial lump-sum payment, equal installments at the end of specified periods throughout the service period, variable payments at the end of specified periods, a final lump-sum payment, or a combination of payment methods. If an employee fails to fulfill the terms of the service agreement, he or she generally must reimburse the employing agency for the prorated share of any extended assignment incentive received for service not yet performed. (See § 575.513.) For example, assume an employee signed a 364-day (26 pay period) service agreement and received the full amount of a $15,000 extended assignment incentive as an initial lump-sum payment. If the employee voluntarily separates after 20 pay periods (280 days), he or she would incur a debt equal to 23.1 percent (84/364) of the incentive, or $3,465. The employee may keep 76.9 percent (280/364) of the incentive, or $11,535, unless the agency imposes an additional repayment penalty for not fulfilling the terms of the service agreement, as permitted by § 575.513(e). While the head of an agency may waive any debt owed to the Federal Government under 5 U.S.C. 5584, if warranted, waivers should be rare because the employee agreed to the repayment conditions at the time he or she signed the service agreement. If an employee fails to complete the agreed-upon service period because of voluntary separation or transfer or another reason covered by § 575.513, and the portion of the extended assignment incentive received to date is less than or equal to the prorated share attributable to the employee's completed service, the employee will have no repayment obligation unless the agency imposes an additional repayment penalty, as permitted under § 575.513(f). However, if provided in the service agreement, the agency may have an obligation to pay an additional amount for service completed by the employee. For example, assume that an employee who signed a 364-day (26 pay period) service agreement will receive a total extended assignment payment of $24,501 in two equal installment payments—i.e., $12,250.50 at the end of 13 pay periods of completed service and $12,250.50 at the end of the required service period. The employee receives the first payment of $12,250.50 and then voluntarily separates after 20 pay periods (280 days). If the service agreement provides that the employee is entitled to receive a prorated share of the planned extended assignment incentive based on the amount of service completed, he or she would receive an additional $6,590.77 (280/364 = 76.9%; 76.9% × $24,501 = $18,841.27; $18,841.27 − $12,250.50 = $6,590.77). On the other hand, if the service agreement provides that the employee would not receive any unpaid incentive amount in the event of voluntary separation from the position, then the employee would keep the $12,250.50 he or she received but would receive no additional payment. By law, an agency may not require repayment of an extended assignment incentive if an employee is involuntarily separated from his or her position or is involuntarily reassigned to a position stationed outside the particular area involved. Under the regulations, if such an employee has not received incentive payments equal to the prorated share of the planned incentive attributable to completed service, the agency must pay an additional incentive to make up the difference. No other additional payment may be made except as allowed by the service agreement. (See § 575.511.) Parallel rules apply to employees whose service agreement is terminated unilaterally by the agency as described in § 575.512. The determination to pay an extended assignment incentive must be made on a case-by-case basis for each employee. While an agency may identify targeted groups or organizational units performing functions that are deemed essential to the agency's mission for special consideration, incentive determinations must still be made on a case-by-case basis for each employee. An extended assignment incentive may not be provided to an employee who is fulfilling the requirements of a service agreement for the payment of a recruitment or relocation bonus or to an employee who is receiving a retention allowance. (See 5 CFR part 575, subparts A, B, and C.) Under 5 U.S.C. 5757(d), OPM must consult with affected agencies and submit a report to Congress assessing the effectiveness of the extended assignment incentive authority as a strategic human resources management tool and make recommendations for any changes necessary to improve the effectiveness of the incentive authority. OPM's report is due no later than May 4, 2006, which is 3 years after the effective date of section 207 of Public Law 107-273. To assist OPM in preparing the report, the interim regulations require agencies to provide data on their use of extended assignment incentives and to evaluate the extent to which these payments improved the retention of employees for longer than their initial tour of duty. In addition, OPM, invites agencies to provide recommendations for changes necessary to improve the effectiveness of extended assignment incentives. The interim regulations require agencies to provide the requested information for the period from May 2, 2003, through December 31, 2005. Agency reports are due to OPM by February 15, 2006. Waiver of Notice of Proposed Rule Making and Delay in Effective Date Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists to waive the general notice of proposed rulemaking. Also, pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists for making this rule effective upon publication in the **Federal Register** . These regulations implement section 207 of Public Law 107-273, which took effect on the first day of the first pay period beginning on or after May 2, 2003. Certain provisions cannot be applied, however, unless OPM issues implementing regulations. The waiver of the requirements for proposed rulemaking and a delay in the effective date are necessary to ensure timely implementation of the law as intended by Congress. Regulatory Flexibility Act I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they will affect only Federal agencies and employees. E.O. 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order 12866. List of Subjects in 5 CFR Part 575 Government employees, Wages. Office of Personnel Management. Kay Coles James, Director. Accordingly, OPM is amending part 575 of title 5 of the Code of Federal Regulations as follows: PART 575—RECRUITMENT AND RELOCATION BONUSES, RETENTION ALLOWANCES, SUPERVISORY DIFFERENTIALS, AND EXTENDED ASSIGNMENT INCENTIVES 1. The authority citation for part 575 is revised to read as follows: Authority: 5 U.S.C. 1104(a)(2), 5753, 5754, 5755, and 5757; Pub. L. 107-273, 116 stat. 1780; secs. 302 and 404 of the Federal Employees Pay Comparability Act of 1990 (FEPCA), Pub. L. 101-509, 104 Stat. 1462 and 1466, respectively; E.O. 12748, 3 CFR, 1992 Comp., p. 316. 2. A new subpart E is added to read as follows: Subpart E—Extended Assignment Incentives Sec. 575.501 Purpose. 575.502 Definitions. 575.503 Who may approve the payment of an extended assignment incentive? 575.504 What requirements must an agency satisfy before authorizing the payment of an extended assignment incentive? 575.505 What criteria must an agency use to determine who will receive an extended assignment incentive? 575.506 When is an agency prohibited from paying an extended assignment incentive? 575.507 What is the maximum extended assignment incentive that may be paid for a period of service? 575.508 What is the maximum amount of service that may be covered by an extended assignment incentive? 575.509 Is an extended assignment incentive considered basic pay for any purpose? 575.510 What requirements are associated with service agreements? 575.511 What happens when an employee is involuntarily separated or involuntarily reassigned prior to completion of the service period? 575.512 When may an agency terminate a service agreement? 575.513 What are the agency's and the employee's obligations when an employee fails to fulfill the terms of a service agreement? 575.514 What are an agency's monitoring responsibilities? 575.515 What records and reports are required? Subpart E—Extended Assignment Incentives § 575.501 Purpose. This subpart contains OPM regulations implementing 5 U.S.C. 5757, which authorizes the payment of extended assignment incentives. Subject to the requirements of this subpart, an agency may pay an extended assignment incentive to eligible Federal employees assigned to positions located in a territory or possession of the United States, the Commonwealth of Puerto Rico, or the Commonwealth of the Northern Mariana Islands who agree to complete a specified additional period of employment with the agency in that location. § 575.502 Definitions. In this subpart: *Agency* means an “Executive agency,” as defined in 5 U.S.C. 105. *Authorized agency official* means the head of an agency or an official who is authorized to act for the head of the agency in the matter concerned. *Employee* means an employee of an agency who satisfies the definition of that term in 5 U.S.C. 2105. *Involuntarily reassigned* refers to a reassignment initiated by an agency against an employee's will and without he employee's consent for reasons other than cause on charges of misconduct, delinquency, or inefficiency. *Involuntarily separated* refers to a separation initiated by an agency against an employee's will and without the employee's consent for reasons other than cause on charges of misconduct, delinquency, or inefficiency. In addition, when an employee is separated because he or she declines to accept reassignment to another geographic area outside one of the covered locations, the separation is involuntary if the employee's position description or other written agreement does not provide for such reassignment. However, an employee's separation is not involuntary if, after such a written mobility agreement is added, the employee accepts one reassignment outside his or her particular territory, possession, or commonwealth, but subsequently declines another reassignment. An employee's separation as a result of disability retirement, a disability that prevents an employee from continuing Federal service or is the basis for separation by the agency as determined by acceptable medical evidence, or the death of an employee is considered to be an involuntary separation. *Rate of basic pay* means the rate of pay fixed by law or administrative action for the position held by an employee before deductions and exclusive of additional pay of any kind. For example, a rate of basic pay may not include nonforeign area cost-of-living allowances under 5 U.S.C. 5941, night shift differentials under 5 U.S.C. 5343(f), or environmental differentials under 5 U.S.C. 5343(c)(4). *Service agreement* means a written agreement between an agency and an employee under which the employee agrees to a specified period of employment with the agency in a particular territory, possession, or commonwealth in return for payment of an extended assignment incentive. *Service period* means an agreed-upon period of employment an employee is obligated to complete under a service agreement. *Territory, possession, or commonwealth* means a territory or a possession of the United States, the Commonwealth of Puerto Rico, or the Commonwealth of the Northern Mariana Islands. § 575.503 Who may approve the payment of an extended assignment incentive? An authorized agency official must review and approve the offer of an extended assignment incentive for an employee, including the amount of such incentive. The authorized agency official must be at a higher level than the official who made the initial decision to offer an extended assignment incentive, unless there is no official at a higher level in the agency. § 575.504 What requirements must an agency satisfy before authorizing the payment of an extended assignment incentive? Before paying an extended assignment incentive under this subpart, an agency must establish an extended assignment incentive plan. This plan must include the following elements:

(a)The designation of authorized agency officials who must review and approve the payment of extended assignment incentives;

(b)The categories of employees which are prohibited from receiving an extended assignment incentive;

(c)The criteria that must be met or considered in authorizing extended assignment incentives, including criteria for determining the size of an incentive;

(d)The requirements governing service agreements, including the obligations of the agency and the employee when the service period is not completed;

(e)The procedures for paying extended assignment incentives; and

(f)Documentation and recordkeeping requirements sufficient to allow reconstruction of the action. § 575.505 What criteria must an agency use to determine who will receive an extended assignment incentive?

(a)An agency must base the payment of an extended assignment incentive on a written determination that—

(1)The eligible employee has completed at least 2 years of continuous service immediately before the commencement of the service agreement in one or more civil service positions located in a particular territory, possession, or commonwealth;

(2)It is in the best interest of the Government to encourage the employee to complete a specified additional period of employment with the agency in that location; and

(3)Replacing the employee with another employee possessing the required qualifications and experience would be difficult.

(b)In determining whether it is in the best interest of the Government to retain an employee under paragraph (a)(2) of this section, an agency may consider how the employee's departure would affect the agency's ability to operate effectively or to carry out an activity or perform a function which the agency deems essential to its mission.

(c)Any determination to approve an extended assignment incentive must be made on a case-by-case basis for each employee. However, an agency may consider common factors that apply to a category of employees, such as past recruitment and retention problems or the anticipation of such problems in the future. § 575.506 When is an agency prohibited from paying an extended assignment incentive?

(a)An extended assignment incentive may not be paid to the head of an agency, including an agency headed by a collegial body composed of two or more individual members.

(b)An agency may not begin paying an extended assignment incentive to an otherwise eligible employee who is fulfilling the requirements of a service agreement for the payment of a recruitment or relocation bonus or who is receiving a retention allowance. (See 5 CFR part 575, subparts A, B, and C.) § 575.507 What is the maximum extended assignment incentive that may be paid for a period of service?

(a)The total amount of extended assignment incentive payments that may be paid for a service period may not exceed the greater of—

(1)An amount equal to 25 percent of the annual rate of basic pay of the employee at the beginning of the service period times the number of years (including fractions of a year) in the service period; or

(2)$15,000 per year (including fractions of a year) in the service period.

(b)For hourly rate employees who do not have a scheduled annual rate of basic pay, the annual rate in paragraph

(a)of this section is computed by multiplying the applicable hourly rate in effect at the beginning of the service period by 2,087 hours.

(c)The number of years in the service period is computed by dividing the total number of calendar days in the service period (as established under § 575.510(a)) by 365 and rounding the result to two decimal places. For example, a service period covering 39 biweekly pay periods equals 546 days, and 546 days divided by 365 days equals 1.50 years. § 575.508 What is the maximum amount of service that may be covered by an extended assignment incentive? An employee's total service under one or more extended assignment incentive service agreements with a particular agency for service in a particular territory, possession, or commonwealth may not exceed 5 years. For this purpose, a year is equal to 365 days, resulting in a total service limit of 1,825 days. § 575.509 Is an extended assignment incentive considered basic pay for any purpose? No, an extended assignment incentive is not considered part of an employee's rate of basic pay for any purpose, nor is it included for the purpose of calculating a lump-sum payment for annual leave under 5 CFR 550.1205. § 575.510 What requirements are associated with service agreements?

(a)Before paying an extended assignment incentive, the agency must require the employee to sign a written service agreement to complete a specified period of employment with the agency in a particular territory, possession, or commonwealth. The service period must meet the following conditions:

(1)The service period must begin on the first day of a pay period and end on the last day of a pay period; and

(2)The service period must not cause an employee to exceed the 5-year lifetime limitation described in § 575.508.

(b)In addition to the service requirement in paragraph

(a)of this section, the service agreement may specify other terms and conditions of employment applicable to the employee. For example, the service agreement may specify the employee's work schedule, type of position, and performance level. In addition, the service agreement may address the extent to which periods of time on a detail, in a nonpay status, or in a paid leave status are creditable towards the completion of the service period.

(c)The service agreement must specify the method of payment of an extended assignment agreement. The agency may choose to pay an extended assignment incentive in an initial lump-sum payment at the beginning of the service period, in installments at the end of specified periods throughout the service period (biweekly, monthly, quarterly, etc.), in a lump-sum payment at the end of the entire service period, or through a combination of payment methods.

(d)The service agreement must include the conditions under which the employee would be required to repay an extended assignment incentive under § 575.513.

(e)The service agreement must specify the conditions under which the payment of an extended assignment incentive may be terminated by the agency under § 575.512.

(f)The service agreement must specify the conditions under which the agency may be obligated to pay an additional incentive payment for partially completed service, as provided in § 575.513(d).

(g)The service agreement must specify the conditions under which the agency may impose a repayment penalty under § 575.513(e) for an employee who fails to fulfill the terms of the service agreement.

(h)The service agreement must specify the conditions under which the agency may be obligated to pay an incentive payment attributable to some or all of the employee's *uncompleted* service for employees covered by § 575.511 or § 575.512. § 575.511 What happens when an employee is involuntarily separated or involuntarily reassigned prior to completion of the service period? An employee who is voluntarily separated or is involuntarily reassigned to a position outside the particular territory, possession, or commonwealth involved is not indebted to the Federal Government for any extended assignment incentive payments he or she has received. The employee is entitled to keep all incentive payments received and, if applicable, is entitled to receive any additional amount representing the difference between the amount received and the prorated share of the total incentive attributable to completed service. The employee may receive a portion or all of the incentive payment attributable to uncompleted service only to the extent provided in the service agreement. § 575.512 When may an agency terminate a service agreement?

(a)An agency may unilaterally terminate a service agreement based solely on the business needs of the agency. For example, an authorized agency official may terminate a service agreement when the employee's position is affected by a reduction in force or when there are insufficient funds to continue the planned incentive payments.

(b)If an agency terminates a service agreement under paragraph

(a)of this section, the employee is entitled to keep all incentive payments received and, if applicable, is entitled to receive any additional amount representing the difference between the amount received and the prorated share of the total incentive attributable to completed service. The employee may receive a portion or all of the incentive payment attributable to uncompleted service only to the extent provided in the service agreement. § 575.513 What are the agency's and the employee's obligations when an employee fails to fulfill the terms of a service agreement?

(a)This section does not apply when an employee is involuntarily separated or involuntarily reassigned to a position outside the particular territory, possession, or commonwealth involved, as provided in § 575.511 or when an agency unilaterally terminates a service agreement under § 575.112.

(b)An employee is indebted to the Federal Government and must repay the paying agency for an appropriate portion of an extended assignment incentive received by the employee if—

(1)The employee fails to complete the period of employment required in his or her service agreement; or

(2)The employee violates any other condition specified in the service agreement that would trigger termination of the agreement. (c)(1) If an employee does not fulfill the terms of a service agreement under the circumstances prescribed in paragraph

(b)of this section and has received incentive payments whose value as a percentage of the planned total sum of incentive payments for the entire service period exceeds the percentage reflecting the portion of the service period completed by the employee, he or she must repay the excess payment and any additional repayment penalty imposed by the agency under paragraph

(e)of this section.

(2)For example, consider an employee who signed a 364-day (26 pay period) service agreement and received the full amount of the extended assignment incentive as an initial lump-sum payment. If the employee voluntarily leaves after 20 pay periods (280 days), the employee will have received 100 percent of the total extended assignment incentive while completing only 76.9 percent (280/364) of the service period. The excess is 23.1 percent. Therefore, the employee must repay 23.1 percent (84/364) of the incentive. The employee is entitled to keep 76.9 percent of the incentive, unless the agency imposes an additional repayment penalty for failure to fulfill the service agreement under paragraph

(e)of this section. (d)(1) If an employee does not fulfill the terms of the service agreement under the circumstances prescribed in paragraph

(b)of this section and has received incentive payments whose value as a percentage of the planned total sum of incentive payments for the entire service period is less than or equal to the percentage reflecting the portion of the service period completed by the employee, the employee has no repayment obligation unless the agency imposes an additional repayment penalty under paragraph

(e)of this section. The agency may pay an additional incentive payment for some or all of the service completed by the employee if such additional payment is required by the service agreement. The total amount of incentive payments received by the employee may not exceed the prorated share of the planned incentive attributable to completed service.

(2)For example, consider an employee who signed a 364-day (26 pay period) service agreement to receive a total extended assignment payment of $24,501 in two equal installment payments—i.e., $12,250.50 at the end of 13 pay periods of completed service and $12,250.50 at the end of the required service period. If the employee voluntarily leaves after 20 pay periods (280 days), the employee will have received only 50 percent of the total extended assignment incentive while completing 76.9 percent (280/364) of the service agreement. The agency may pay the employee an additional amount of up to 26.9 percent of the incentive payment that is attributable to completed service, as allowed under the terms of the service agreement, assuming the agency does not impose an additional repayment penalty for failure to fulfill the service period under paragraph

(e)of this section.

(e)An agency may impose an additional repayment penalty on an employee who does not fulfill the terms of a service agreement. This repayment penalty is in addition to any repayment required by paragraph

(c)of this section. The specific terms and conditions governing the repayment penalty must be included in the service agreement. For example, an agency may adopt a schedule or formula that provides for varying penalty amounts based on the portion of the service period completed by the employee.

(f)If an employee fails to reimburse the paying agency for the full amount owed under this section, the amount outstanding must be recovered from the employee under the agency's regulations for collection by offset from an indebted Government employee under 5 U.S.C. 5514 and 5 CFR part 550, subpart K, or through the appropriate provisions for debt collection if the individual is no longer a Federal employee. However, the head of the agency may waive the debt under 5 U.S.C. 5584, if warranted. § 575.514 What are an agency's monitoring responsibilities? Each agency must monitor the use of extended assignment incentives to ensure that the agency's extended assignment incentive plan and the payment of extended assignment incentives are consistent with the requirements and criteria established under 5 U.S.C. 5757 and this subpart. § 575.515 What records and reports are required?

(a)Each agency must keep a record of each determination required by this subpart and make such records available for review upon OPM's request.

(b)Each agency must provide any information requested by OPM for its report to Congress, as required by 5 U.S.C. 5757(d). Before February 15, 2006, each agency must submit a written report to OPM on—

(1)The agency's use of extended assignment incentives by providing the data required in paragraph

(c)of this section;

(2)Whether the use of extended assignment incentives influenced employees to stay longer than their initial tour of duty at their current duty stations; and

(3)The agency's recommendations for changes necessary to improve the effectiveness of extended assignment incentives.

(c)Each agency report must contain the following data for the period from May 2, 2003, to December 31, 2005:

(1)The number of extended assignment service agreements that commenced in each fiscal year;

(2)The dollar amount expended on extended assignment incentives in each fiscal year;

(3)The number of employees who declined an extended assignment incentive, by occupational series and geographic location;

(4)The number of employees who signed an extended assignment incentive service agreement, the total amount of the planned incentives, and the total number of years of agreed-upon service, by occupational series and geographic location;

(5)The number of employees whose service agreements were terminated before completion of the agreed-upon service period, with subcounts showing the number covered by § 575.511, § 575.512, and § 575.513, respectively.

(6)The number of employees who incurred a repayment debt under § 575.513 (including any repayment penalty under § 575.513(e)) and the total amount of repayment debt incurred; and

(7)The portion of the repayment debt that, as of December 31, 2005—

(i)Has been recovered;

(ii)Is subject to ongoing collection efforts; and

(iii)Has been waived or written off. [FR Doc. 03-23132 Filed 9-11-03; 8:45 am]

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