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115th Congress   }                                  {    Rept. 115-435
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                  {           Part 1

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



 
          SECRET SERVICE RECRUITMENT AND RETENTION ACT OF 2017

                                _______
                                

                December 4, 2017.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3731]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 3731) to provide overtime pay for 
employees of the United States Secret Service, 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....................................     1
Section-by-Section...............................................     4
Explanation of Amendments........................................     5
Committee Consideration..........................................     5
Roll Call Votes..................................................     5
Application of Law to the Legislative Branch.....................     5
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     5
Statement of General Performance Goals and Objectives............     5
Duplication of Federal Programs..................................     6
Disclosure of Directed Rule Makings..............................     6
Federal Advisory Committee Act...................................     6
Unfunded Mandates Statement......................................     6
Earmark Identification...........................................     6
Committee Estimate...............................................     6
Budget Authority and Congressional Budget Office Cost Estimate...     6
Changes in Existing Law Made by the Bill, as Reported............     9

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    H.R. 3731, the Secret Service Recruitment and Retention Act 
of 2017, extends until the end of calendar year 2018 the U.S. 
Secret Service-specific waiver of the pay cap for basic and 
premium overtime pay. Congress authorized this waiver in the 
Overtime Pay for Protective Services Act of 2016. Lifting the 
pay cap allows Secret Service personnel to be partially 
compensated for overtime hours that result in owed compensation 
above the cap. The additional premium overtime pay will not be 
creditable for retirement annuity or annual leave calculations. 
In addition, the bill mandates a series of reports and 
information to Congress to assess future changes that might 
reduce the agency's reliance on premium overtime pay.

                  BACKGROUND AND NEED FOR LEGISLATION

    The United States Secret Service is a federal law 
enforcement agency whose chief responsibility is the protection 
of the President of the United States, the Vice President of 
the United States, immediate families of the occupants of both 
positions, and select other individuals and events of national 
significance.\1\ The Secret Service also has a role in 
investigating certain cybercrimes and currency 
counterfeiting.\2\ The agency has three main personnel types: 
special agents; uniformed division officers; and 
administrative, professional, and technical staff.\3\
---------------------------------------------------------------------------
    \1\18 U.S.C. Sec. 3056.
    \2\Reporting Computer, Internet-Related, or Intellectual Property 
Crime, Dep't of Justice, https://www.justice.gov/criminal-ccips/
reporting-computer-internet-related-or-intellectual-property-crime 
(last accessed Sept. 22, 2017).
    \3\Join, U.S. Secret Service, https://www.secretservice.gov/join/
careers/ (last accessed Sept. 22, 2017).
---------------------------------------------------------------------------
    There is no margin for failure with respect to the Secret 
Service's protective mission. Unfortunately, a December 2015 
Committee investigative report found the Secret Service ``is 
experiencing a staffing crisis that threatens to jeopardize 
[that] critical mission.''\4\ When the report was released, the 
Secret Service had fewer employees (6,306) than at any point 
over the previous decade.\5\ Since then, the agency has moved 
to increase staffing levels, reaching its goal of 6,800 
personnel for FY2017.\6\ Even with these modest gains, Secret 
Service personnel have been required to work excessive overtime 
to fully staff the agency's protective mission. In addition, 
due to the size of the President's family, the Secret Service 
is responsible for 11 more permanent protectees than during the 
previous Administration.\7\ Together, the agency's staffing 
shortages and increased protective responsibilities have caused 
Secret Service personnel to reach the statutory pay cap before 
the end of the year, meaning some overtime is not compensated.
---------------------------------------------------------------------------
    \4\H. Comm. on Oversight & Gov't Reform, United States Secret 
Service: an Agency in Crisis 18 (Dec. 9, 2015) [hereinafter ``Committee 
Report''].
    \5\Id. at 117.
    \6\Briefing by Susan Yarwood, Chief Human Capital Officer, U.S. 
Secret Service, to staff, H. Comm. on Oversight & Gov't Reform (Sept. 
15, 2017) [hereinafter ``Secret Service Briefing''].
    \7\Leg. Proposal from U.S. Secret Service to Congress, USSS and DHS 
Aggregate Pay Cap Legislative Proposal (n.d.), at 7 [hereinafter 
``Secret Service Leg. Proposal''].
---------------------------------------------------------------------------
    Total aggregate compensation for a pay period, which 
includes basic and premium overtime pay, for Secret Service 
personnel on the General Schedule is capped at the biweekly pay 
equivalent of an annual salary of $161,900.\8\ As a result, 
during any pay period Secret Service personnel can only be 
compensated for the overtime hours they 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.\9\
---------------------------------------------------------------------------
    \8\5 U.S.C. Sec. 5547.
    \9\Secret Service Briefing, supra note 6.
---------------------------------------------------------------------------
    H.R. 3731 extends the pay cap waiver Congress granted to 
the Secret Service in 2016 as part of the Overtime Pay for 
Protective Services Act. That bill raised the cap for all 
protective work conducted during the 2016 presidential election 
cycle. For the aforementioned reasons, the Secret Service needs 
an extended waiver. H.R. 3731 extends the waiver to the end of 
calendar year 2018 for work on the agency's protective mission. 
As in the previous Act, H.R. 3731 subjects Secret Service 
personnel to a new aggregate pay cap of Level II of the 
Executive Schedule, or $187,000 in 2017. Approximately 1,300 
Secret Service personnel will benefit from the legislation in 
2017--with approximately 144 still having some unpaid overtime 
if the legislation is enacted.\10\ However, the bill will 
provide at least partial relief to all Secret Service personnel 
with overtime for which they were not compensated.
---------------------------------------------------------------------------
    \10\Secret Service Leg. Proposal, supra note 7, at 5.
---------------------------------------------------------------------------
    As the Committee has made clear, the Secret Service cannot 
continue to rely on expensive premium overtime pay to meet its 
mission. The agency needs to improve both hiring and retention 
at the agency so it has an appropriate number of personnel. The 
Secret Service has made improvements on this front, having 
decreased its agency-wide attrition by 1.37 percent over the 
past year.\11\ The time-to-hire also decreased from an average 
of 406 days to 117 days.\12\ Work remains, however, and the 
legislation directs the Secret Service to issue a report to 
Congress on further recruitment and retention initiatives at 
the agency. It also requires the Secret Service to submit the 
questions used during polygraph examinations for agency job 
applicants to Congress so Congress can understand the extent to 
which the questions might be affecting the agency's effort to 
recruit and hire new talent.
---------------------------------------------------------------------------
    \11\Secret Service Briefing, supra note 6.
    \12\Id.
---------------------------------------------------------------------------
    In addition, the bill will require the Secret Service 
provide Congress information on the scope of its mission. The 
Committee's investigative report in 2015 found the Secret 
Service's mission has dramatically expanded, and the agency and 
Congress need to assess the effect of the agency's 
investigative mission on the protective mission in a time of 
low staffing levels.\13\ The scope of the protective mission 
should also be assessed. The bill directs the Secret Service to 
submit updated threat assessments, with some exceptions, to 
Congress so that it can evaluate if statutory changes are 
needed to revise who must be protected by the agency. For 
similar reasons, the bill also directs the Secret Service to 
notify Congress and provide an updated threat assessment if a 
protective detail is extended.
---------------------------------------------------------------------------
    \13\Committee Report, supra note 4, at 178.
---------------------------------------------------------------------------
    Ultimately, H.R. 3731 remedies an immediate problem and 
does so in a timely manner, as a stop-gap measure. It is 
incumbent upon the agency to continue making progress with the 
recruitment and retention of personnel and on Congress to 
remain engaged with finding a solution to the agency's scope of 
mission problem. Finally, the bill is tailored for the unique 
circumstances the agency faces regarding staffing its 
protective mission, and the Committee will not regard it as 
precedent for waiving pay caps for any other agency.

                          LEGISLATIVE HISTORY

    On September 11, 2017, Representative John Katko (R-NY) 
introduced H.R. 3731, the Secret Service Recruitment and 
Retention Act of 2017, with Chairman Trey Gowdy (R-SC); Ranking 
Member Elijah Cummings (D-MD); Chairman Michael McCaul (R-TX) 
and Ranking Member Bennie Thompson (D-MS) of the Committee on 
Homeland Security; Representatives Daniel Donovan (R-NY), 
Sheila Jackson Lee (D-TX), John Ratcliffe (R-TX), and Bonnie 
Watson Coleman (D-NJ); and Delegate Eleanor Holmes Norton (D-
DC). H.R. 3731 was referred to the House Committee on the 
Judiciary and in addition the House Committee on Oversight and 
Government Reform. The Committee on Oversight and Government 
Reform considered H.R. 3731 at a business meeting on September 
13, 2017, and ordered the bill reported favorably, without 
amendment, by voice vote.
    In the 114th Congress, Representative Jason Chaffetz (R-UT) 
introduced a similar bill to H.R. 3731, which was H.R. 6302, 
the Overtime Pay for Protective Services Act of 2016. On 
November 16, 2016, the Committee on Oversight and Government 
Reform ordered H.R. 6302 reported favorably, without amendment, 
by voice vote, and on November 30, 2016, the House passed the 
bill by voice vote under suspension of the rules. The Senate 
passed H.R. 6302, as amended, on December 10, 2016 by unanimous 
consent. The House then concurred to the Senate amendments on 
December 13, 2016 by unanimous consent. On December 16, 2016 
President Obama signed H.R. 6302 into law, with the bill 
becoming Public Law No. 114-311.
    Prior to consideration of H.R. 6302, the Committee on 
Oversight and Government Reform held a hearing on compensation 
and staffing problems at the Secret Service. The hearing was 
held on November 15, 2016.\14\ At that hearing, Members 
discussed the Secret Service's challenges in hiring and 
retaining a sufficient number of special agents in order to 
mitigate excessive overtime in violation of the pay cap.
---------------------------------------------------------------------------
    \14\Oversight of the Secret Service: Hearing Before the H. Comm. on 
Oversight & Gov't Reform, 114th Cong. (2016).
---------------------------------------------------------------------------

                           Section-by-Section


Sec. 1. Short title

    Section 1 establishes the short title of the bill.

Sec. 2. Extension of overtime pay exception through 2018 for protective 
        services

    Section 2 amends the Overtime Pay for Protective Services 
Act of 2016 by extending the pay cap waiver for covered 
employees of the Secret Service from December 31, 2016, to 
December 31, 2018. Section 2 also requires two reports to the 
Committee on Homeland Security and the Committee on Oversight 
and Government Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the 
Senate on the effects of the changes, including the total 
number of Secret Service personnel receiving additional premium 
pay; the total amount of additional premium pay paid under the 
waiver; and other information.

Sec. 3. Recruitment and retention efforts

    Section 3 requires the Director of the Secret Service to 
conduct and transmit to the appropriate committees of Congress, 
updated threat assessments on most individuals protected by the 
Secret Service within 180 days of enactment. Relatedly, this 
section requires the Department to notify those committees when 
the President exercises the authority to designate additional 
protectees and threat assessments on them. Section 3 also 
requires a report on the Secret Service's efforts to remedy the 
personnel shortage within the agency, and a list of polygraph 
examination questions be submitted to the committees.

                       Explanation of Amendments

    There were no amendments to H.R. 3731 offered or adopted 
during Committee consideration of the bill.

                        Committee Consideration

    On September 13, 2017, the Committee met in open session 
and, with a quorum being present, ordered the bill favorably 
reported by voice vote.

                            Roll Call Votes

    There were no roll call votes requested or conducted during 
Full Committee consideration of H.R. 3731.

              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 extends the U.S. Secret Service-specific waiver of 
the pay cap for basic and premium overtime pay until the end of 
calendar year 2018. 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 or objective of this bill is to provide overtime pay for 
employees of the United States Secret Service on a temporary 
basis.

                    Duplication of Federal Programs

    In accordance with clause 2(c)(5) of rule XIII no provision 
of this bill establishes or reauthorizes a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of section 551 of title 5, United States Code.

                     Federal Advisory Committee Act

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

                      Unfunded Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates 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 included below a letter received from the Congressional 
Budget Office.

                         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

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

   New Budget Authority and Congressional Budget Office Cost Estimate

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 14, 2017.
Hon. Trey Gowdy,
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. 3731, the Secret 
Service Recruitment and Retention Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                             Mark P. Hadley
                                        (For Keith Hall, Director).
    Enclosure.

H.R. 3731--Secret Service Recruitment and Retention Act of 2017

    Summary: H.R. 3731 would remove certain limits on premium 
pay earned by employees of the Secret Service who either 
provided protective services in calendar year 2017 or will 
provide them in 2018. The bill's provisions would not apply to 
years after 2018. CBO estimates that enacting the bill would 
increase direct spending by $10 million in fiscal year 2018. We 
also estimate that implementing the bill would increase 
spending subject to appropriation by about $7 million in fiscal 
year 2018 and $3 million in fiscal year 2019.
    Because enacting H.R. 3731 would affect direct spending, 
pay-as-you-go procedures apply. Enacting the bill would not 
affect revenues.
    CBO estimates that enacting H.R. 3731 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 3731 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 3731 is shown in the following table. 
The costs of this legislation fall within budget function 750 
(administration of justice).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Estimated Budget Authority........................      10       0       0       0       0       0       0       0       0       0        10         10
Estimated Outlays.................................      10       0       0       0       0       0       0       0       0       0        10         10
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level.....................       7       3       0       0       0       0       0       0       0       0        10         10
Estimated Outlays.................................       7       3       0       0       0       0       0       0       0       0        10         10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in early 2018 and that the necessary 
amounts will be appropriated for fiscal years 2018 and 2019. 
Estimated outlays are based on the historical rate of spending 
for Secret Service pay.

Direct spending (Retroactive pay)

    H.R. 3731 would remove certain limits on premium pay earned 
by employees of the Secret Service who provided protective 
services in calendar year 2017. Assuming the bill is enacted in 
early 2018, nearly all the additional pay earned in calendar 
year 2017 would be paid retroactively in fiscal year 2018. The 
retroactive pay authorized by H.R. 3731 would be considered an 
entitlement for federal employees who have already performed 
the work for which the bill would provide compensation.
    Based on 2017 pay records through September of this year, 
the Secret Service expects that the legislation would benefit 
about 1,200 employees who would be paid about $8,600 more, on 
average, for hours worked in calendar year 2017. Thus, CBO 
estimates that enacting the bill would increase direct spending 
by about $10 million in fiscal year 2018. (For comparison 
purposes, the Secret Service disbursed about $13 million in 
similar additional premium pay in calendar year 2016, which was 
a presidential election year and for which limits on employee 
compensation also were lifted.) If the bill is enacted later in 
2018, then it would increase direct spending by more than $10 
million because more retroactive pay would be required.

Spending subject to appropriation

    For any hours worked in calendar year 2018--after the 
assumed enactment of the bill--we expect that any additional 
compensation would not be retroactive, but would be paid on a 
regular basis (probably biweekly) as those hours are worked by 
employees. Based on an analysis of information provided by the 
Secret Service, CBO estimates that enacting the bill would cost 
about $7 million in fiscal year 2018 and about $3 million in 
fiscal year 2019, assuming appropriation of the necessary 
amounts. If the bill is enacted later in 2018, then 2018 
spending subject to appropriation would be less than $7 million 
because more compensation would be paid retroactively (direct 
spending).
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

     CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3731, THE SECRET SERVICE RECRUITMENT AND RETENTION ACT OF 2017, AS ORDERED REPORTED BY THE HOUSE
                                           COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM ON SEPTEMBER 13, 2017.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact....................      10       0       0       0       0       0       0       0       0       0        10         10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    Mandates: H.R. 3731 contains no intergovernmental or 
private-sector mandates as defined in UMRA and would impose no 
costs on state, local, or tribal governments.
    Estimate prepared by: Federal costs: Mark Grabowicz; 
Mandates: Zach Byrum.
    Estimate 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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

            OVERTIME PAY FOR PROTECTIVE SERVICES ACT OF 2016


SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Overtime Pay for Protective 
Services Act of 2016''.

SEC. 2. PREMIUM PAY EXCEPTION IN [2016]  2016 THROUGH 2018 FOR 
                    PROTECTIVE SERVICES.

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

                                  [all]