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114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-837

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



 
           OVERTIME PAY FOR SECRET SERVICE AGENTS ACT OF 2016

                                _______
                                

 November 29, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 6302]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 6302) to provide an increase in 
premium pay for United States Secret Service agents performing 
protective services during 2016, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     3
Explanation of Amendments........................................     4
Committee Consideration..........................................     4
Roll Call Votes..................................................     4
Application of Law to the Legislative Branch.....................     4
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     4
Statement of General Performance Goals and Objectives............     5
Duplication of Federal Programs..................................     5
Disclosure of Directed Rule Makings..............................     5
Federal Advisory Committee Act...................................     5
Unfunded Mandate Statement.......................................     5
Earmark Identification...........................................     5
Committee Estimate...............................................     5
Budget Authority and Congressional Budget Office Cost Estimate...     5
Changes in Existing Law Made by the Bill, as Reported............     6
Additional Views.................................................     8

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    H.R. 6302, the Overtime Pay for Secret Service Agents Act 
of 2016, lifts the biweekly pay cap for basic and premium 
overtime pay to Level II of the Executive Schedule for the 2016 
calendar year for Secret Service special agents. Lifting the 
pay cap allows Secret Service special agents who worked on the 
2016 presidential election to be partially compensated for the 
overtime hours they worked that were in excess of the normal 
biweekly pay cap. The additional premium overtime pay would not 
be creditable for retirement annuity or annual leave 
calculations.

                  BACKGROUND AND NEED FOR LEGISLATION

    The United States Secret Service is a federal law 
enforcement agency whose chief responsibility is the protection 
of the President of the United States and his or her family.\1\ 
In 1968, the mission of the Secret Service was expanded to 
include the protection of major presidential candidates and 
their spouses during a presidential election year.\2\
---------------------------------------------------------------------------
    \1\18 U.S.C. Sec. 3056.
    \2\Pub. L. No. 90-331 (1968).
---------------------------------------------------------------------------
    In December 2015, the Committee issued an investigative 
report finding the Secret Service ``is experiencing a staffing 
crisis that threatens to jeopardize its critical mission.''\3\ 
At the time of the report's publication, the Secret Service had 
fewer employees than at any point over the previous decade.\4\ 
Special agents have been required to work excessive overtime to 
fulfill the agency's protective mission and, in some cases, 
this overtime is not compensated.
---------------------------------------------------------------------------
    \3\H. Comm. on Oversight and Government Reform, United States 
Secret Service: An Agency in Crisis, 114th Cong. (Dec. 9, 2015).
    \4\Id.
---------------------------------------------------------------------------
    The ``protective mission [of the Secret Service] requires 
continued, uninterrupted coverage for . . . protectees''\5\, 
meaning overtime hours for special agents can be high relative 
to other law enforcement agencies. While increased overtime in 
a presidential election year is normal, the agency's staffing 
shortages have exacerbated the amount of overtime worked by 
special agents in 2016.
---------------------------------------------------------------------------
    \5\H. Comm. on Oversight and Government Reform, Oversight of the 
Secret Service, 114th Cong. (Nov. 15, 2016) (written statement of 
Thomas E. Dougherty, Chief Strategy Officer, Office of Strategic 
Planning and Policy, United States Secret Service).
---------------------------------------------------------------------------
    Total aggregate compensation for a pay period, which 
includes basic and premium overtime pay, for special agents on 
the General Schedule is capped at the biweekly pay equivalent 
of an annual salary of $160,300.\6\ As a result, during any pay 
period Secret Service special agents can only be compensated 
for the overtime hours they may work until they reach the 
biweekly pay cap. This overtime cap, commonly referred to as a 
``max out'' within the Secret Service, has consistently been 
reported to the Committee as a top issue affecting employee 
morale and retention.\7\
---------------------------------------------------------------------------
    \6\5 U.S.C. Sec. 5547.
    \7\U.S. Secret Service, U.S. Secret Service Workforce Retention 
Initiatives Legislative Proposals (Feb. 24, 2016).
---------------------------------------------------------------------------
    H.R. 6302 would raise the biweekly pay cap for special 
agents who worked on the presidential campaign in calendar year 
2016 to the pay period equivalent of Level II of the Executive 
Schedule, $185,100. Under the proposal, every Secret Service 
special agent with overtime for which they were not compensated 
would receive partial relief for their unpaid overtime. In 
2016, 1,077 Secret Service employees exceeded the present pay 
cap by some amount.\8\ The Committee calculates that special 
agents with outstanding overtime will receive, on average, 
$20,427 in additional compensation for the overtime they have 
worked under this legislation. The Committee urges that 
appropriations sufficient to fund this additional overtime be 
included in any measure making appropriations for the remainder 
of 2016. Based on information provided by the Secret Service, 
the Committee estimates that approximately 170 employees will 
still have some unpaid overtime under the bill.\9\
---------------------------------------------------------------------------
    \8\Email from U.S. Secret Service to H. Comm. on Oversight and 
Government Reform staff (Nov. 4, 2016).
    \9\Email and phone calls from U.S. Secret Service to H. Comm. on 
Oversight and Government Reform staff (Nov. 7, 2016).
---------------------------------------------------------------------------
    Ultimately, H.R. 6302 remedies an immediate problem facing 
the Secret Service and does so in a timely manner. It provides 
additional compensation for hours already worked to individuals 
who put their lives on hold and at risk during the 2016 
presidential election. However, this legislation does not solve 
the challenges facing the Secret Service. In fact, it remains 
incumbent on Secret Service management to take action to 
immediately address all of the causes that have led to its poor 
staffing levels and high attrition rates. The agency must 
continue to improve its hiring practices and management 
effectiveness and reduce collateral or non-essential aspects of 
Secret Service's mission. Additionally, the bill is 
specifically tailored for the circumstances regarding the 
agency's staffing and protective mission and is not intended to 
serve as precedent for waiving pay caps for any other agency.

                          LEGISLATIVE HISTORY

    H.R. 6302 was introduced on November 14, 2016 by Chairman 
Jason Chaffetz (R-UT) and referred to the Committee on 
Oversight and Government Reform. On November 16, 2016, the 
Committee ordered H.R. 6302 favorably reported to the House by 
voice vote.
    Prior to consideration of H.R. 6302, the Committee held a 
hearing on compensation and staffing problems at the Secret 
Service on November 15, 2016.\10\ At that hearing, Members 
discussed the Secret Service's challenges in hiring and 
retaining special agents necessary to ensure staffing levels 
sufficient to mitigate excessive overtime in violation of the 
pay cap.
---------------------------------------------------------------------------
    \10\H. Comm. on Oversight and Government Reform, Oversight of the 
Secret Service, 114th Cong. (Nov. 15, 2016).
---------------------------------------------------------------------------

                           Section-by-Section


Section 1. Short title

    Designates the short title of the bill as the ``Overtime 
Pay for Secret Service Agents Act of 2016.''

Section 2. Premium pay exception in 2016 for work authorized under 
        Section 3056 of Title 18

    Subsection (a) authorizes Secret Service special agents who 
worked overtime during the presidential election in calendar 
year 2016 to be paid for the overtime so long as their total 
annual compensation does not exceed the annual amount payable 
in basic pay to Level II of the Executive Schedule.
    Subsection (b) prohibits the overtime compensation 
authorized to be paid to Secret Service special agents during 
the presidential election in calendar year 2016 from being used 
to calculate a special agent's retirement or annual leave 
benefits.
    Subsection (c) defines employee as a special agent of the 
Secret Service that is a law enforcement officer but is not a 
member of the Secret Service's Uniformed Division or an 
officer, employee, agent, or law enforcement officer of any 
other Federal agency.
    Subsection (d) makes a conforming amendment to ensure that 
Secret Service special agents' bi-weekly compensation may 
include the pay they receive for the overtime they have worked 
during the presidential election in calendar year 2016.

                       Explanation of Amendments

    During Full Committee consideration of the bill, Ranking 
Member Elijah Cummings (D-MD) offered an amendment that would 
raise the pay cap to Level I of the Executive Schedule and make 
it applicable to all future presidential elections. The 
amendment was ultimately withdrawn by Rep. Cummings after a 
colloquy with the Chairman during which it was agreed that the 
Committee would receive quarterly updates from the Secret 
Service to inform the Committee's further consideration of the 
pay cap issue next year.

                        Committee Consideration

    On November 16, 2016, the Committee met in open session and 
ordered reported favorably the bill, H.R. 6302, by voice vote, 
a quorum being present.

                            Roll Call Votes

    No roll call votes were requested or conducted during Full 
Committee consideration of H.R. 6302.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill provides an increase in premium pay for United States 
Secret Service agents performing protective services during 
2016. As such this bill does not relate to employment or access 
to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

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

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal and objective of the bill is to provide an increase in 
premium pay for United States Secret Service agents performing 
protective services during 2016.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. Sec. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

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

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 29, 2016.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6302, the Overtime 
Pay for Secret Service Agents Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 6302--Overtime Pay for Secret Service Agents Act of 2016

    H.R. 6302 would remove certain limits on premium pay earned 
by special agents of the Secret Service who provided protective 
services in calendar year 2016; the bill's provisions would not 
apply to years after 2016. The agency expects the legislation 
to benefit about 1,200 agents who would be paid about $13,000 
more, on average, for hours worked in 2016.
    Based on that information provided by the Secret Service, 
CBO estimates that enacting the bill would increase direct 
spending by $16 million in fiscal year 2017. The cost could be 
more depending on the number of hours worked by agents in 
December. The retroactive pay authorized by H.R. 6302 would be 
considered an entitlement for federal employees who have 
already performed the work for which the bill would provide 
compensation. Thus, the bill would increase direct spending and 
pay-as-you-go procedures apply. Enacting the legislation would 
not affect revenues.
    CBO estimates that enacting H.R. 6302 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 6302 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

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

        TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 2001




           *       *       *       *       *       *       *
TITLE I--DEPARTMENT OF THE TREASURY

           *       *       *       *       *       *       *


  Sec. 118. Hereafter, and except as provided in section 2 of 
the Overtime Pay for Secret Service Agents Act of 2016, funds 
made available by this or any other Act may be used to pay 
premium pay for protective services authorized by section 
3056(a) of title 18, United States Code, without regard to the 
restrictions contained in section 5547 of title 5, United 
States Code, except that such premium pay shall not be payable 
to an employee to the extent that the aggregate of the 
employee's basic and premium pay for the year would otherwise 
exceed the annual equivalent of that limitation. The term 
premium pay refers to the provisions of law cited in the first 
sentence of section 5547(a) of title 5, United States Code. 
Payment of additional premium pay payable under this section 
may be made in a lump sum on the last payday of the calendar 
year.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    Committee Democrats support H.R. 6302, the Overtime Pay for 
Secret Service Agents Act of 2016. The bill would authorize an 
increase in the annual salary and overtime limit up to level II 
of the Executive Schedule so that Secret Service agents would 
be eligible to receive additional back pay for overtime they 
worked in 2016.
    Last year, the Committee adopted a bipartisan report 
concluding that the Secret Service ``is experiencing a staffing 
crisis that threatens to jeopardize its critical mission'' due 
in large part to ``significant cuts imposed by the Budget 
Control Act of 2011.'' The unanimous report recommended that 
Congress ``ensure that Secret Service has sufficient funds to 
restore staffing to required levels.''\1\
---------------------------------------------------------------------------
    \1\House Committee on Oversight and Government Reform, United 
States Secret Service: An Agency in Crisis (Dec. 9, 2015).
---------------------------------------------------------------------------
    Although 2016 has been a year of extraordinary demand and 
strain on the Secret Service, significant hours of overtime are 
required in every presidential campaign year. In addition to 
providing protection at large-scale national security events, 
additional staffing resources will be needed in future 
presidential election years for national political conventions 
and around-the-clock protection of candidates and their 
families.
    For these reasons, all Committee Democrats joined together 
to introduce more substantial legislation to ensure that Secret 
Service agents are paid for the overtime they have worked in 
2016 and will work in all future presidential years. On 
November 16, 2016, they introduced H.R. 6318, the Fair Pay for 
Presidential Protection Act of 2016, which would also authorize 
a greater level of overtime compensation than H.R. 6302.
    The Federal Law Enforcement Officers Association, which 
represents rank-and-file Secret Service agents, testified 
before the Committee that there should be a legislative fix to 
raise the overtime pay cap ``at a minimum, during a 
presidential campaign year.'' The witness added that although 
``this last election season was unprecedented in many respects, 
we do not believe it will prove to be unique in the years 
ahead,'' and he stressed ``the importance of working together 
to find a permanent solution to the effect that the pay cap has 
on the USSS.''
    During the markup of H.R. 6302 on November 16, 2016, 
Ranking Member Cummings offered an amendment that would have 
incorporated provisions of H.R. 6318 by proposing a permanent 
solution that would have authorized increasing the salary caps 
in all future presidential election years.
    Ranking Member Cummings withdrew the amendment after a 
colloquy in which Chairman Chaffetz agreed that the Committee 
will ask the Secret Service to provide additional updates on 
the overtime pay issue and staffing on a quarterly basis. 
Chairman Chaffetz also agreed to hold a roundtable or public 
hearings with the Secret Service on these issues in 2017.

                                        Elijah E. Cummings,
                                                    Ranking Member.

                                  [all]