[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4361 Referred in Senate (RFS)]
<DOC>
114th CONGRESS
2d Session
H. R. 4361
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 7, 2016
Received; read twice and referred to the Committee on Homeland Security
and Governmental Affairs
_______________________________________________________________________
AN ACT
To amend section 3554 of title 44, United States Code, to provide for
enhanced security of Federal information systems, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Government Reform
and Improvement Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--FEDERAL INFORMATION SYSTEMS SAFEGUARDS
Sec. 101. Agency discretion to secure information technology and
information systems.
TITLE II--ELIMINATING PORNOGRAPHY FROM AGENCIES
Sec. 201. Prohibition on accessing pornographic web sites from federal
computers.
TITLE III--EXTENSION OF PROBATIONARY PERIOD FOR CAREER EMPLOYEES
Sec. 301. Extension of probationary period for positions within the
competitive service.
Sec. 302. Appeals from adverse actions.
TITLE IV--SENIOR EXECUTIVE SERVICE ACCOUNTABILITY
Sec. 401. Biennial justification of Senior Executive Service positions.
Sec. 402. Extension of probationary period for career appointees.
Sec. 403. Modification of pay retention for career appointees removed
for under performance.
Sec. 404. Advanced establishment of performance requirements under
Senior Executive Service performance
appraisal systems.
Sec. 405. Amendments with respect to adverse actions against career
appointees.
Sec. 406. Mandatory leave for career appointees subject to removal.
Sec. 407. Expedited removal of career appointees for performance or
misconduct.
Sec. 408. Mandatory reassignment of career appointees.
TITLE V--OPM REPORT ON OFFICIAL TIME
Sec. 501. Reporting requirement.
TITLE VI--MIDNIGHT RULE RELIEF
Sec. 601. Moratorium on midnight rules.
Sec. 602. Special rule on statutory, regulatory, and judicial
deadlines.
Sec. 603. Exception.
Sec. 604. Judicial review.
Sec. 605. Definitions.
TITLE VII--REQUIREMENT TO MAINTAIN RECORDS
Sec. 701. Requirement to maintain records.
TITLE I--FEDERAL INFORMATION SYSTEMS SAFEGUARDS
SEC. 101. AGENCY DISCRETION TO SECURE INFORMATION TECHNOLOGY AND
INFORMATION SYSTEMS.
(a) In General.--In carrying out section 3554 of title 44, United
States Code, any action taken by the head of an agency that is
necessary to limit, restrict, or prohibit access to any website the
head of the agency determines to present a current or future security
weakness or risk to the information technology or information system
under the control of the agency, and any impact or implementation of
such action, shall not be subject to chapter 71 of title 5, United
States Code.
(b) Information Security Protocol.--An agency employee acting in
the official capacity of the employee may not establish, operate,
maintain, or otherwise permit the use of information technology that is
not certified by the appropriate Federal entity responsible for
information security (either the Director of the Office of Management
and Budget, the head of the agency, the Secretary of Homeland Security,
or the Chief Information Officer of the agency, as applicable) as in
compliance with the established information security policies,
procedures, and programs.
(c) Definitions.--In this section--
(1) the terms ``agency'' and ``information system'' have
the meanings given the terms in section 3502 of title 44,
United States Code; and
(2) the term ``information technology'' has the meaning
given the term in section 3552 of title 44, United States Code.
TITLE II--ELIMINATING PORNOGRAPHY FROM AGENCIES
SEC. 201. PROHIBITION ON ACCESSING PORNOGRAPHIC WEB SITES FROM FEDERAL
COMPUTERS.
(a) Prohibition.--Except as provided in subsection (b), not later
than 90 days after the date of the enactment of this Act, the Director
of the Office of Management and Budget shall issue guidelines that
prohibit the access of a pornographic or other explicit web site from a
Federal computer.
(b) Exception.--The prohibition described in subsection (a) shall
not apply to any Federal computer that is used for an investigative
purpose that requires accessing a pornographic web site.
TITLE III--EXTENSION OF PROBATIONARY PERIOD FOR CAREER EMPLOYEES
SEC. 301. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE
COMPETITIVE SERVICE.
(a) In General.--Section 3321 of title 5, United States Code, is
amended--
(1) in subsection (a), by striking ``The President'' and
inserting ``Subject to subsections (c) and (d), the
President'';
(2) by redesignating subsection (c) as subsection (e); and
(3) by inserting after subsection (b) the following:
``(c)(1) Except as provided in paragraph (2), the length of a
probationary period established under paragraph (1) or (2) of
subsection (a) shall be--
``(A) with respect to any position that requires formal
training, a period of 2 years beginning on the date that such
formal training is completed;
``(B) with respect to any position that requires a license,
a period of 2 years beginning on the date that such license is
granted; and
``(C) with respect to any position not covered by
subparagraph (A) or (B), not less than 2 years.
``(2) The length of a probationary period established under
paragraph (1) or (2) of subsection (a) in the case of a preference
eligible shall be not longer than--
``(A) if the appointment (as referred to in subsection
(a)(1)) or the initial appointment (as referred to in
subsection (a)(2)) is to a position that exists on the
effective date of this subsection, the length of the
probationary period which applies to such position as of such
effective date; or
``(B) if the appointment (as referred to in subsection
(a)(1)) or the initial appointment (as referred to in
subsection (a)(2)) is to a position that does not exist on the
effective date of this subsection, such length of time as the
President may establish, consistent with the purposes of this
subparagraph.
``(3) In paragraph (1)--
``(A) the term `formal training' means, with respect to any
position, a training program required by law, rule, or
regulation, or otherwise required by the employing agency, to
be completed by the employee before the employee is able to
successfully execute the duties of the applicable position; and
``(B) the term `license' means a license, certification, or
other grant of permission to engage in a particular activity.
``(d) The head of each agency shall, in the administration of this
section, take appropriate measures to ensure that--
``(1) any announcement of a vacant position within such
agency and any offer of appointment made to any individual with
respect to any such position shall clearly state the terms and
conditions of the probationary period applicable to such
position;
``(2) any individual who is required to complete a
probationary period under this section shall receive timely
notice of the performance and other requirements which must be
met in order to successfully complete the probationary period;
and
``(3) upon successful completion of a probationary period
under this section, certification to that effect shall be made,
supported by a brief statement of the basis for that
certification, in such form and manner as the President may by
regulation prescribe.''.
(b) Technical Amendment.--Section 3321(e) of title 5, United States
Code (as so redesignated by subsection (a)(2)) is amended by striking
``Subsections (a) and (b)'' and inserting ``Subsections (a) through
(d)''.
(c) Effective Date.--This section and the amendments made by this
section--
(1) shall take effect 180 days after the date of enactment
of this Act; and
(2) shall apply in the case of any appointment (as referred
to in section 3321(a)(1) of title 5, United States Code) and
any initial appointment (as referred to in section 3321(a)(2)
of such title) taking effect on or after the date on which this
section takes effect.
SEC. 302. APPEALS FROM ADVERSE ACTIONS.
(a) Subchapter I of Chapter 75 of Title 5.--Section 7501(1) of
title 5, United States Code, is amended--
(1) by striking ``1 year'' the first place it appears and
inserting ``not less than 2 years''; and
(2) by striking ``1 year'' the second place it appears and
inserting ``2 years''.
(b) Subchapter II of Chapter 75 of Title 5.--Section 7511(a)(1) of
title 5, United States Code, is amended--
(1) in subparagraph (A)(ii), by striking ``1 year'' the
first place it appears and inserting ``not less than 2 years'';
and
(2) in subparagraph (C)(ii), by striking ``2 years'' the
first place it appears and inserting ``not less than 2 years''.
(c) Effective Date.--The amendments made by subsections (a) and
(b)--
(1) shall take effect 180 days after the date of enactment
of this Act; and
(2) shall apply in the case of any individual whose period
of continuous service (as referred to in the provision of law
amended by paragraph (1) or (2) of subsection (b), as the case
may be) commences on or after the date on which this section
takes effect.
TITLE IV--SENIOR EXECUTIVE SERVICE ACCOUNTABILITY
SEC. 401. BIENNIAL JUSTIFICATION OF SENIOR EXECUTIVE SERVICE POSITIONS.
Section 3133(a)(2) of title 5, United States Code, is amended by
inserting after ``positions'' the following: ``, with a justification
for each position (by title and organizational location) and the
specific result expected from each position, including the impact of
such result on the agency mission,''.
SEC. 402. EXTENSION OF PROBATIONARY PERIOD FOR CAREER APPOINTEES.
(a) In General.--Section 3393(d) of title 5, United States Code, is
amended by striking ``1-year'' and inserting ``2-year''.
(b) Conforming Amendment.--Section 3592(a)(1) of such title is
amended by striking ``1-year'' and inserting ``2-year''.
SEC. 403. MODIFICATION OF PAY RETENTION FOR CAREER APPOINTEES REMOVED
FOR UNDER PERFORMANCE.
Section 3594(c)(1)(B) of title 5, United States Code, is amended to
read as follows:
``(B)(i) any career appointee placed under subsection (a)
or (b)(2) of this section shall be entitled to receive basic
pay at the highest of--
``(I) the rate of basic pay in effect for the
position in which placed;
``(II) the rate of basic pay in effect at the time
of the placement for the position the career appointee
held in the civil service immediately before being
appointed to the Senior Executive Service; or
``(III) the rate of basic pay in effect for the
career appointee immediately before being placed under
subsection (a) or (b) of this section; and
``(ii) any career appointee placed under subsection (b)(1)
of this section shall be entitled to receive basic pay at the
rate of basic pay in effect for the position in which placed;
and''.
SEC. 404. ADVANCED ESTABLISHMENT OF PERFORMANCE REQUIREMENTS UNDER
SENIOR EXECUTIVE SERVICE PERFORMANCE APPRAISAL SYSTEMS.
Section 4312(b)(1) of title 5, United States Code, is amended--
(1) by striking ``on or'' and inserting ``not later than 30
calendar days''; and
(2) by inserting ``in writing'' after ``communicated''.
SEC. 405. AMENDMENTS WITH RESPECT TO ADVERSE ACTIONS AGAINST CAREER
APPOINTEES.
(a) Suspension for 14 Days or Less for Senior Executive Service
Employee.--Paragraph (1) of Section 7501 of title 5, United States
Code, is amended to read as follows:
``(1) `employee' means--
``(A) an individual in the competitive service who
is not serving a probationary period or trial period
under an initial appointment or who has completed 1
year of current continuous employment in the same or
similar positions under other than a temporary
appointment limited to 1 year or less; or
``(B) a career appointee in the Senior Executive
Service who--
``(i) has completed the probationary period
prescribed under section 3393(d); or
``(ii) was covered by the provisions of
subchapter II of this chapter immediately
before appointment to the Senior Executive
Service; and''.
(b) Modification of Cause and Procedure for Suspension and
Termination.--
(1) In general.--Section 7543 of title 5, United States
Code, is amended--
(A) in subsection (a), by striking ``misconduct,''
and inserting ``such cause as would promote the
efficiency of the service, misconduct,''; and
(B) in subsection (b)(1), by striking ``30'' and
inserting ``15''.
(2) Conforming amendments.--Subchapter V of chapter 35 of
title 5, United States Code, is amended--
(A) in section 3593--
(i) in subsection (a)(2), by striking
``misconduct,'' and inserting ``such cause as
would promote the efficiency of the service,
misconduct,''; and
(ii) in subsection (b), by striking
``misconduct,'' and inserting ``such cause as
would promote the efficiency of the service,
misconduct,''; and
(B) in section 3594(a), by striking ``misconduct,''
and inserting ``such cause as would promote the
efficiency of the service, misconduct,''.
SEC. 406. MANDATORY LEAVE FOR CAREER APPOINTEES SUBJECT TO REMOVAL.
(a) In General.--Subchapter II of chapter 63 of title 5, United
States Code, is amended by adding at the end the following:
``Sec. 6330. Mandatory leave for Senior Executive Service career
appointees subject to removal
``(a) In this section--
``(1) the term `employee' means an employee (as that term
is defined in section 7541(1)) who has received written notice
of removal from the civil service under subchapter V of chapter
75; and
``(2) the term `mandatory leave' means, with respect to an
employee, an absence with pay but without duty during which
such employee--
``(A) shall be charged accrued annual leave for the
period of such absence; and
``(B) may not accrue any annual leave under section
6303 for the period of such absence.
``(b) Under regulations prescribed by the Office of Personnel
Management, an agency may place an employee on mandatory leave for
misconduct, neglect of duty, malfeasance, or such cause as would
promote the efficiency of the service.
``(c) If an agency determines that an employee should be placed on
mandatory leave under subsection (b), such leave shall begin no earlier
than the date on which the employee received written notice of a
removal under subchapter V of chapter 75.
``(d) If a final order or decision is issued in favor of such
employee with respect to removal under subchapter V of chapter 75 by
the agency, the Merit Systems Protection Board, or the United States
Court of Appeals for the Federal Circuit, any annual leave that is
charged to an employee by operation of this section shall be restored
to the applicable leave account of such employee.''.
(b) Clerical Amendment.--The table of sections of chapter 63 of
title 5, United States Code, is amended by adding after the item
relating to section 6328 the following new item:
``6330. Mandatory leave for Senior Executive Service career appointees
subject to removal.''.
(c) Regulations.--Not later than 6 months after the date of
enactment of this Act, the Director of the Office of Personnel
Management shall prescribe regulations with respect to the leave
provided by the amendment in subsection (a).
SEC. 407. EXPEDITED REMOVAL OF CAREER APPOINTEES FOR PERFORMANCE OR
MISCONDUCT.
(a) In General.--Chapter 75 of title 5, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER VI--SENIOR EXECUTIVE SERVICE: EXPEDITED REMOVAL
``Sec. 7551. Definitions
``In this subchapter--
``(1) the term `employee' has the meaning given such term
in section 7541(1), but does not include any career appointee
in the Senior Executive Service within the Department of
Veterans Affairs; and
``(2) the term `misconduct' includes neglect of duty,
malfeasance, or failure to accept a directed reassignment or to
accompany a position in a transfer of function.
``Sec. 7552. Actions covered
``This subchapter applies to a removal from the civil service or a
transfer from the Senior Executive Service, but does not apply to an
action initiated under section 1215, to a removal under section 3592 or
3595, to a suspension under section 7503, to a suspension or removal
under section 7532, to a suspension or removal under section 7542, or
to a suspension or removal under section 713 of title 38.
``Sec. 7553. Cause and procedure
``(a)(1) Under regulations prescribed by the Office of Personnel
Management, the head of an agency may remove an employee of the agency
from the Senior Executive Service if the head determines that the
performance or misconduct of the individual warrants such removal. If
the head so removes such an individual, the head may--
``(A) remove the individual from the civil service; or
``(B) in the case of an employee described in paragraph
(2), transfer the employee from the Senior Executive Service to
a General Schedule position at any grade of the General
Schedule for which the employee is qualified and that the head
determines is appropriate.
``(2) An employee described in this paragraph is an individual
who--
``(A) previously occupied a permanent position within the
competitive service;
``(B) previously occupied a permanent position within the
excepted service; or
``(C) prior to employment as a career appointee at the
agency, did not occupy any position within the Federal
Government.
``(3) An employee against whom an action is proposed under
paragraph (1) is entitled to 5 days' advance written notice.
``(b)(1) Notwithstanding any other provision of law, including
section 3594, any employee transferred to a General Schedule position
under subsection (a)(1)(B) shall, beginning on the date of such
transfer, receive the annual rate of pay applicable to such position.
``(2) An employee so transferred may not be placed on
administrative leave or any other category of paid leave during the
period during which an appeal (if any) under this section is ongoing,
and may only receive pay if the individual reports for duty. If an
employee so transferred does not report for duty, such employee shall
not receive pay or other benefits pursuant to section 7554(e).
``(c) Not later than 30 days after removing or transferring an
employee under subsection (a), the applicable head of the agency shall
submit to Congress notice in writing of such removal or transfer and
the reason for such removal or transfer.
``(d) Section 3592(b)(1) does not apply to an action to remove or
transfer an employee under this section.
``(e) Subject to the requirements of section 7554, an employee may
appeal a removal or transfer under subsection (a) to the Merit Systems
Protection Board under section 7701, but only if such appeal is made
not later than seven days after the date of such removal or transfer.
``Sec. 7554. Expedited review of appeal
``(a) Upon receipt of an appeal under section 7553(d), the Merit
Systems Protection Board shall refer such appeal to an administrative
judge pursuant to section 7701(b)(1). The administrative judge shall--
``(1) expedite any such appeal under such section; and
``(2) in any such case, issue a decision not later than 21
days after the date of the appeal.
``(b) Notwithstanding any other provision of law, including section
7703, the decision of an administrative judge under subsection (a)
shall be final and shall not be subject to any further appeal.
``(c) In any case in which the administrative judge cannot issue a
decision in accordance with the 21-day requirement under subsection
(a)(2), the removal or transfer is final. In such a case, the Merit
Systems Protection Board shall, within 14 days after the date that such
removal or transfer is final, submit to Congress a report that explains
the reasons why a decision was not issued in accordance with such
requirement.
``(d) The Merit Systems Protection Board or administrative judge
may not stay any removal or transfer under this section.
``(e) During the period beginning on the date on which an employee
appeals a removal from the civil service under section 7553(d) and
ending on the date that the administrative judge issues a final
decision on such appeal, such employee may not receive any pay, awards,
bonuses, incentives, allowances, differentials, student loan
repayments, special payments, or benefits.''.
(b) Application.--
(1) In general.--Subchapter VI of chapter 75 of title 5,
United States Code, as added by subsection (a), shall not apply
to any personnel action against a career appointee (as that
term is defined in section 3132(a)(4) of title 5, United States
Code) that was commenced before the date of enactment of this
Act.
(2) Relation to other authorities.--The authority provided
by such subchapter is in addition to the authority provided
under section 3592 or subchapter V of chapter 75 of title 5,
United States Code.
(c) Technical Amendments.--
(1) Title 5.--Title 5, United States Code, is amended--
(A) in section 3592(b)(2)--
(i) by striking ``or'' at the end of
subparagraph (A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``; or''; and
(iii) by adding at the end the following:
``(C) any removal under subchapter VI of this title or
section 713 of title 38.'';
(B) in section 3393(g), by striking ``1215,, 3592,
3595, 7532, or 7543 of this title'' and inserting
``1215, 3592, 3595, 7532, 7543, or 7553 of this title
or section 713 of title 38''; and
(C) in section 7542, by striking ``or to a removal
under section 3592 or 3595 of this title'' and
inserting ``to a removal under section 3592 or 3595 of
this title, to a suspension under section 7503, to a
removal or transfer under section 7553, or a removal or
transfer under section 713 of title 38''.
(2) Title 38.--Section 713(f)(1) of title 38, United States
Code, is amended by striking ``or subchapter V'' and inserting
``, chapter 43, or subchapters V and VI''.
(d) Clerical Amendment.--The table of sections at the beginning of
chapter 75 of title 5, United States Code, is amended by adding after
the item relating to section 7543 the following:
``subchapter vi--senior executive service: expedited removal
``7551. Definitions.
``7552. Actions covered.
``7553. Cause and procedure.
``7554. Expedited review of appeal.''.
SEC. 408. MANDATORY REASSIGNMENT OF CAREER APPOINTEES.
(a) In General.--Section 3395(a) of title 5, United States Code, is
amended by adding at the end the following:
``(3)(A) Consistent with the requirements of paragraphs (1) and
(2), at least once every five years beginning on the date that a career
appointee is initially appointed to the Senior Executive Service, each
career appointee at an agency shall be reassigned to another Senior
Executive Service position at the agency at a different geographic
location that does not include the supervision of the same agency
personnel or programs.
``(B) The head of an agency may waive the requirement under
subparagraph (A) for any career appointee if the head submits notice of
the waiver and an explanation of the reasons for the waiver to the
Committee on Oversight and Government Reform of the House of
Representatives and the Committee on Homeland Security and Governmental
Affairs of the Senate.''.
(b) Conforming Amendment.--Section 3395(a)(1)(A) of title 5, United
States Code, is amended by striking ``paragraph (2)'' and inserting
``paragraphs (2) and (3)''.
(c) Effective Date.--The amendments made by this section shall take
effect 90 days after the date of enactment of this Act.
TITLE V--OPM REPORT ON OFFICIAL TIME
SEC. 501. REPORTING REQUIREMENT.
(a) In General.--Section 7131 of title 5, United States Code, is
amended by adding at the end the following:
``(e)(1)(A) Not later than March 31 of each calendar year, the
Office of Personnel Management, in consultation with the Office of
Management and Budget, shall submit to each House of Congress a report
on the operation of this section during the fiscal year last ending
before the start of such calendar year.
``(B) Not later than December 31 of each calendar year, each agency
(as defined by section 7103(a)(3)) shall furnish to the Office of
Personnel Management the information which such Office requires, with
respect to such agency, for purposes of the report which is next due
under subparagraph (A).
``(2) Each report by the Office of Personnel Management under this
subsection shall include, with respect to the fiscal year described in
paragraph (1)(A), at least the following information:
``(A) The total amount of official time granted to
employees.
``(B) The average amount of official time expended per
bargaining unit employee.
``(C) The specific types of activities or purposes for
which official time was granted, and the impact which the
granting of such official time for such activities or purposes
had on agency operations.
``(D) The total number of employees to whom official time
was granted, and, of that total, the number who were not
engaged in any activities or purposes except activities or
purposes involving the use of official time.
``(E) The total amount of compensation (including fringe
benefits) afforded to employees in connection with activities
or purposes for which they were granted official time.
``(F) A description of any room or space designated at the
agency (or its subcomponent) where official time activities
will be conducted, including the square footage of any such
room or space.
``(3) All information included in a report by the Office of
Personnel Management under this subsection with respect to a fiscal
year--
``(A) shall be shown both agency-by-agency and for all
agencies; and
``(B) shall be accompanied by the corresponding information
(submitted by the Office in its report under this subsection)
for the fiscal year before the fiscal year to which such report
pertains, together with appropriate comparisons and analyses.
``(4) For purposes of this subsection, the term `official time'
means any period of time, regardless of agency nomenclature--
``(A) which may be granted to an employee under this
chapter (including a collective bargaining agreement entered
into under this chapter) to perform representational or
consultative functions; and
``(B) during which the employee would otherwise be in a
duty status.''.
(b) Applicability.--The amendment made by subsection (a) shall be
effective beginning with the report which, under the provisions of such
amendment, is first required to be submitted by the Office of Personnel
Management to each House of Congress by a date which occurs at least 6
months after the date of the enactment of this Act.
TITLE VI--MIDNIGHT RULE RELIEF
SEC. 601. MORATORIUM ON MIDNIGHT RULES.
Except as provided under sections 602 and 603, during the
moratorium period, an agency may not propose or adopt any midnight rule
unless the Administrator finds the midnight rule will not result in any
of the following:
(1) An annual effect on the economy of $100,000,000 or
more.
(2) A major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions.
(3) Significant adverse effects on competition, employment,
wages, investment, productivity, innovation, or on the ability
of United States-based enterprises to compete with foreign-
based enterprises in domestic and export markets.
(4) A significant economic impact on a substantial number
of small entities.
SEC. 602. SPECIAL RULE ON STATUTORY, REGULATORY, AND JUDICIAL
DEADLINES.
(a) In General.--Section 601 shall not apply with respect to any
midnight rule required by statute, other regulation, or judicial order
to be proposed or adopted by a deadline that--
(1) was established before the beginning of the moratorium
period; and
(2) occurs during the moratorium period.
(b) Publication of Deadlines.--Not later than 30 days after the
beginning of a moratorium period, the Administrator shall identify and
publish in the Federal Register a list of midnight rules covered by
subsection (a).
SEC. 603. EXCEPTION.
(a) Emergency Exception.--Section 601 shall not apply to a midnight
rule if the President determines by Executive order that the midnight
rule is--
(1) necessary because of an emergency;
(2) necessary for the enforcement of criminal laws;
(3) necessary for the national security of the United
States; or
(4) issued pursuant to any statute implementing an
international trade agreement.
(b) Deregulatory Exception.--Section 601 shall not apply to a
midnight rule that the Administrator finds is limited to repealing an
existing rule and certifies such finding in writing. The certification
shall be published in the Federal Register.
SEC. 604. JUDICIAL REVIEW.
Any person or entity subject to the any midnight rule promulgated
in violation of this title is entitled to judicial review.
SEC. 605. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Office of Information and Regulatory
Affairs within the Office of Management and Budget.
(2) Agency.--The term ``agency'' has the meaning given that
term under section 551 of title 5, United States Code, except
such term does not include--
(A) the Federal Election Commission;
(B) the Board of Governors of the Federal Reserve
System;
(C) the Federal Deposit Insurance Corporation; or
(D) the United States Postal Service.
(3) Deadline.--The term ``deadline'' means any date certain
for fulfilling any obligation or exercising any authority
established by or under any Federal statute or rule, or by or
under any court order implementing any Federal statute,
regulation, or rule.
(4) Emergency.--The term ``emergency'' means a declaration
by the President of a state of emergency.
(5) Midnight rule.--The term ``midnight rule'' means a rule
proposed or adopted during the moratorium period.
(6) Moratorium period.--The term ``moratorium period''
means the day after the day referred to in section 1 of title
3, United States Code, through January 20 of the following
year, in which a President is not serving a consecutive term.
(7) Rule.--The term ``rule'' has the meaning given that
term under section 551 of title 5, United States Code.
(8) Small entity.--The term ``small entity'' has the
meaning given the term ``small business'' under section 601 of
title 5, United States Code.
TITLE VII--REQUIREMENT TO MAINTAIN RECORDS
SEC. 701. REQUIREMENT TO MAINTAIN RECORDS.
(a) Amendment.--Chapter 31 of title 44, United States Code, is
amended by adding at the end the following new section:
``Sec. 3108. Requirement to maintain records
``(a) In General.--If the Internal Revenue Service obtains a
preserved record, the Internal Revenue Service shall preserve for not
less than 3 years from the date on which the record was obtained--
``(1) the preserved record or a copy of the preserved
record; and
``(2) all records related to the preserved record.
``(b) Preserved Record Defined.--In this section, the term
`preserved record' means any record that is maintained by a person
other than the Federal Government pursuant to a rule, guidance, or
other directive from the Internal Revenue Service that requires or
recommends the person maintain records for a particular period of time
on a particular matter.
``(c) Rule of Construction.--Nothing in this section shall be
construed as--
``(1) limiting the preservation of a preserved record for a
longer period of time than is required by this section; or
``(2) shortening the period of time a preserved record is
otherwise required to be maintained.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 31 of title 44, United States Code, is amended by adding at the
end the following new item:
``3108. Requirement to maintain records.''.
(c) Effective Date; Applicability.--The amendments made by this
section shall take effect as of the date of the enactment of this Act
and shall apply with respect to any preserved record (as such term is
defined in section 3108(b) of title 44, United States Code, as added by
subsection (a)) obtained on or after the effective date.
Passed the House of Representatives July 7 (legislative day
July 6), 2016.
Attest:
KAREN L. HAAS,
Clerk.