text: PILOT PROGRAM.
  
      (a) Amendment to Chapter 12 of Title 5.--Chapter 12 of title 5, 
  United States Code, is amended by adding immediately after section 1206 
  the following:
  ``Sec. 1207. Establishment of alternative dispute resolution program
      ``(a) In General.--
              ``(1) The Merit Systems Protection Board is authorized to 
          establish a 3-year program to provide employees and agencies 
          with alternative dispute resolution processes to apply to 
          workplace disputes and disagreements involving removals, 
          suspensions for more than 14 days, and other adverse actions 
          under section 7512.
              ``(2) The Board shall test and evaluate a variety of 
          alternative dispute resolution techniques, which may include--
                      ``(A) settlement judges or attorneys;
                      ``(B) mediation through use of shared neutrals;
                      ``(C) mediation by Merit Systems Protection Board 
                  staff or others as appointed by the Chairman;
                      ``(D) administrative arbitration; and
                      ``(E) certified alternative dispute resolution 
                  counselors (agency personnel specifically trained in 
                  Board law and alternative dispute resolution 
                  techniques).
      ``(b) Early Intervention Alternative Dispute Resolution.--
              ``(1) Invoking resolution process.--The Board's early 
          intervention alternative dispute resolution process may be 
          invoked after an agency has issued a notice letter of a 
          proposed action to an employee but before a final decision has 
          been made under section 7513.
              ``(2) Early intervention.--Any agency or employee may seek 
          early intervention alternative dispute resolution from the 
          Board by filing a request with the Board. If the Board 
          determines that alternative dispute resolution is appropriate, 
          the parties shall participate.
              ``(3) Mandatory resolution.--The Chairman of the Merit 
          Systems Protection Board is authorized to designate up to 3 
          agencies with a substantial volume of Board appeals for 
          participation in a mandatory early intervention alternative 
          dispute resolution program. Under this alternative dispute 
          resolution process, all matters appealable under section 7512 
          shall be subject to early intervention alternative dispute 
          resolution unless the Board determines that the matter is not 
          appropriate for the program or a statute or collective 
          bargaining agreement precludes inclusion of the matter in the 
          alternative dispute resolution program.
      ``(c) Alternative Dispute Resolution After an Appeal or Petition 
  for Review Is Filed.--
              ``(1) Appeal or petition for review.--Once an appeal or 
          petition for review is filed with the Board, any employee or 
          agency may request that a case be selected for alternative 
          dispute resolution. The request shall be filed with the 
          administrative judge assigned to the appeal or with the Clerk 
          of the Board if the matter is before the Board on petition for 
          review at the same time that the appeal or petition for review 
          is filed.
              ``(2) Selection of cases.--The Board shall have sole 
          authority to select cases for alternative dispute resolution 
          after an appeal or petition for review is filed. The Board may 
          also select cases for alternative dispute resolution as it 
          determines appropriate.
      ``(d) Implementation.--
              ``(1) Program duties.--In carrying out the program under 
          this section, the Board shall--
                      ``(A) develop and prescribe standards for selecting 
                  and handling cases in which alternative dispute 
                  resolution is to be used;
                      ``(B) take such actions as may be necessary, 
                  including waiver of all statutory, regulatory, or Board 
                  imposed adjudicatory time frames; and
                      ``(C) establish a time target within which it 
                  intends to complete the alternative dispute resolution 
                  process.
              ``(2) Extension.--A party may request an extension of the 
          alternative dispute resolution period, or the Board may extend 
          the time period as it finds appropriate.
              ``(3) Recruitment.--The Chairman of the Merit Systems 
          Protection Board may recruit and hire temporary staff or 
          contractors to carry out this section.
              ``(4) Regulations.--The Board is authorized to prescribe 
          such regulations as may be necessary to implement the 
          alternative dispute resolution program.
      ``(e) Evaluation.--
              ``(1) Criteria.--The Board's Office of Policy and 
          Evaluation shall establish criteria for evaluating the 
          alternative dispute resolution program and prepare a report 
          containing findings and recommendations as to whether mandatory 
          alternative dispute resolution is desirable, effective, and 
          appropriate for cases decided by Federal administrative 
          agencies under proceedings governed by chapters 5 and 7.
              ``(2) Report content.--The report shall include--
                      ``(A) the number of cases subject to the 
                  alternative dispute resolution program, the agencies 
                  involved, the results, and the resources expended;
                      ``(B) a comprehensive analysis of the effectiveness 
                  of the program, including whether it is cost-effective;
                      ``(C) a survey of the satisfaction of participants; 
                  and
                      ``(D) a recommendation regarding the desirability 
                  of extending the alternative dispute resolution program 
                  beyond the prescribed expiration date and any 
                  recommended changes.
              ``(3) Report date.--The report shall be submitted to the 
          President and the Congress 180 days following the close of the 
          alternative dispute resolution program.''.
      (b) Appropriations.--
              (1) In general.--For the purpose of carrying out the 
          alternative dispute resolution program established by the 
          amendment made by subsection (a), there are authorized to be 
          appropriated the following sums: $1,000,000 for fiscal year 
          2000; $1,000,000 adjusted by the most recent percentage change 
          in the employment cost index (ECI) for fiscal year 2001; and 
          $1,000,000 adjusted by the most recent percentage change in the 
          ECI for fiscal year 2002.
              (2) No reductions.--The authorization of appropriations by 
          paragraph (1) shall not have the effect of reducing any funds 
          appropriated for the Board for the purpose of carrying out its 
          statutory mission under section 1204.
      (c) Effective Date.--The amendment made by subsection (a) shall 
  take effect no later than the close of the 60th day after the date of 
  enactment of appropriations authorized by subsection (b)(1) for fiscal 
  year 2000 and shall remain in effect for 3 years from the effective 
  date.
      (d) Conforming Amendment.--The table of sections for subchapter I 
  of chapter 12 of title 5, United States Code, is amended by adding 
  after the item relating to section 1206 the following new item:
  
  ``1207. Establishment of alternative dispute resolution program.''.
  
  SEC. 3. POLICY AND FINDINGS.
  
      (a) Policy.--Chapter 53 of title 5, United States Code, is amended 
  to establish an MSPB Administrative Judge Pay Schedule and to provide 
  MSPB administrative judges with pay that is comparable to that of 
  immigration judges (IJs) and administrative law judges (ALJs).
      (b) Findings.--The Congress finds that--
              (1) MSPB administrative judges perform work at the same 
          level of importance and complexity as immigration judges and 
          administrative law judges. Federal employees deserve to have 
          their cases heard by judges with the same pay and status as the 
          judges who hear private sector benefits and employment law 
          cases. Veterans in the Federal workforce deserve to have their 
          cases heard by judges with the same pay and status as the 
          judges who hear cases involving illegal aliens.
              (2) MSPB administrative judges are leaving the Board for 
          positions with other adjudicatory agencies. During the past 4 
          years, the Board has lost 20 percent of its most experienced 
          judges to other adjudicatory agencies. MSPB administrative 
          judges should not have to leave the agency to achieve the pay 
          and status they deserve when they are adjudicating cases with 
          the same importance and complexity as cases heard by IJs and 
          ALJs.
  
  SEC. 4. MERIT SYSTEMS PROTECTION BOARD ADMINISTRATIVE JUDGES AND 
                COMPENSATION.
  
      (a) Amendment to Chapter 53 of Title 5.--Chapter 53 of title 5, 
  United States Code, is amended by adding immediately after section 
  5372a the following:
  ``Sec. 5372b. Merit Systems Protection Board administrative judges
      ``(a) Definitions.--For the purposes of this section--
              ``(1) the term `administrative judge (AJ)' means an 
          employee of the Merit Systems Protection Board appointed to an 
          administrative judge position and paid under the MSPB 
          Administrative Judge Schedule established by subsection (b); 
          and
              ``(2) the term `administrative judge (GS)' means an 
          employee of the Merit Systems Protection Board appointed to an 
          administrative judge position and paid under the General 
          Schedule described in section 5332 of this title.
      ``(b) In General.--There is established the MSPB Administrative 
  Judge Pay Schedule which shall have 4 levels of pay, designated as AJ-
  1, -2, -3, and -4. Each administrative judge (AJ) shall be paid at one 
  of those levels in accordance with subsection (c).
      ``(c) Rates of Pay.--
              ``(1) Basic pay.--The rates of basic pay for the levels of 
          the MSPB Administrative Judge Pay Schedule established by the 
          subsection (b) shall be as follows:
                      ``(A) AJ-1: 70 percent of the next to highest rate 
                  of basic pay for the Senior Executive Service.
                      ``(B) AJ-2: 80 percent of the next to highest rate 
                  of basic pay for the Senior Executive Service.
                      ``(C) AJ-3: 90 percent of the next to highest rate 
                  of basic pay for the Senior Executive Service.
                      ``(D) AJ-4: 92 percent of the next to highest rate 
                  of basic pay for the Senior Executive Service.
              ``(2) Locality pay.--Locality pay as provided by section 
          5304 shall be applied to the basic pay for administrative 
          judges (AJ) paid under the MSPB Administrative Judge Pay 
          Schedule.
      ``(d) Appointment and Advancement.--
              ``(1) Initial appointment.--Except as provided in paragraph 
          (3), initial appointment of an administrative judge (AJ) shall 
          be at the AJ-1 pay level. Subject to subsection (d)(2), an 
          administrative judge (AJ) shall be advanced to AJ-2 upon 
          completion of 104 weeks of service, to AJ-3 upon completion of 
          104 weeks of service at the next lower level, and to AJ-4 upon 
          completion of 52 weeks of service at the next lower level.
              ``(2) Advancement.--Advancement to the AJ-2, -3, and -4 
          levels as provided by paragraph (1) shall not be effected if 
          the Chairman of the Merit Systems Protection Board determines 
          that the work of an administrative judge (AJ) at the next lower 
          level is not of an acceptable level of competence. An 
          administrative judge (AJ) may appeal an adverse acceptable 
          level of competence determination to the Merit Systems 
          Protection Board under the same conditions by which an 
          administrative judge (GS) may appeal the denial of a periodic 
          step increase in pay under section 5335(c).
              ``(3) Exception.--Notwithstanding paragraph (1), the 
          Chairman of the Merit Systems Protection Board may provide for 
          initial appointment of an administrative judge (AJ) at a level 
          higher than AJ-1 under such circumstances as the Chairman may 
          determine appropriate.
              ``(4) Conversion.--An administrative judge (GS), who 
          occupies a level below grade 15 of the General Schedule, may, 
          when entitled by tenure and performance to be advanced to grade 
          15 of the General Schedule, be converted to the MSPB 
          Administrative Judge Pay Schedule and appointed at the AJ-1 
          level.''.
      (b) Transition Provisions.--
              (1) Conversion to mspb administrative judge pay schedule.--
          Subject to paragraphs (2) and (3), an administrative judge (GS) 
          who is serving as of the effective date of this section and who 
          occupies the grade 15 level of the General Schedule shall be 
          converted to the MSPB Administrative Judge Pay Schedule and 
          appointed as an administrative judge (AJ). Each administrative 
          judge (AJ) so converted shall be placed in the appropriate pay 
          level prescribed under section 5372(c) of title 5, United 
          States Code, as added by subsection (a), based on the amount of 
          time the administrative judge (AJ) has served as an 
          administrative judge (GS).
              (2) Limitation on conversion.--Conversion of an 
          administrative judge (GS) to administrative judge (AJ) under 
  paragraph (1) shall not be effected if the Chairman of the Merit 
  Systems Protection Board determines that the work of an administrative 
  judge (GS) at the grade 15 level of the General Schedule is not of an 
  acceptable level of competence. An administrative judge (AJ) may appeal 
  an adverse acceptable level of competence determination to the Merit 
  Systems Protection Board under the same conditions by which an 
  administrative judge (GS) may appeal the denial of a periodic step 
  increase in pay under section 5335(c).
              (3) Limitation on pay increases.--Notwithstanding the rates 
          of basic pay prescribed under section 5372(c) of title 5, 
          United States Code, as added by subsection (a), the Chairman of 
          the Merit Systems Protection Board may, on the effective date 
          of this section and each year for a period of 7 years 
          thereafter, limit the pay increase for each administrative 
          judge (AJ) to an adjustment equal to--
                      (A) the percentage pay adjustment received by 
                  members of the Senior Executive Service under section 
                  5382(c) of this title, if any;
                      (B) locality pay under section 5304; and
                      (C) an additional $3,000.
          The Senior Executive Service percentage pay adjustment, if any, 
          shall be included in basic pay. Annual adjustments in pay after 
          the effective date of this section will be made on the first 
          day of the first pay period of each calendar year. The 
          limitation on pay increases under this subsection may continue 
          during the time period prescribed by this subsection until such 
          time as the pay of each administrative judge (AJ) reaches the 
          appropriate rate of basic pay under section 5372b(c) of title 
          5, United States Code, as added by subsection (a). The Chairman 
          may waive any limitation on pay under this subsection in the 
          case of an administrative judge (AJ) serving as a chief 
          administrative judge.
              (4) Pay in relation to grade 15 of the general schedule.--
          In no case shall an administrative judge (AJ) who is converted 
          in accordance with paragraph (1), or whose pay increase in any 
          year is limited under paragraph (3), be paid after the 
          effective date of this section at a rate that is less than the 
          adminstrative judge's (AJ) rate of pay would have been had the 
          administrative judge (AJ) remained as an administrative judge 
          (GS) occupying the grade 15 level of the General Schedule.
              (5) Definitions.--For purposes of this subsection--
                      (A) the term ``administrative judge (AJ)'' means an 
                  employee of the Merit Systems Protection Board 
                  appointed to an administrative judge position and paid 
                  under the MSPB Administrative Judge schedule 
                  established by the amendment made by subsection (a); 
                  and
                      (B) the term ``administrative judge (GS)'' means an 
                  employee of the Merit Systems Protection Board 
                  appointed to an administrative judge position and paid 
                  under the General Schedule described in section 5332 of 
                  this title.
      (c) Appropriations.--
              (1) In general.--There are authorized to be appropriated 
          such sums as are necessary for the purpose of carrying out this 
          section.
              (2) No reduction.--The authorization of appropriations by 
          paragraph (1) shall not have the effect of reducing any funds 
          appropriated for the Board for the purpose of carrying out its 
          statutory mission under section 1204 of title 5, United States 
          Code.
      (d) Effective Date.--This section shall take effect on the first 
  day of the first pay period of the calendar year immediately following 
  the date of enactment of appropriations authorized by subsection 
  (c)(1).
      (e) Conforming Amendment.--The table of sections for subchapter VII 
  of chapter 53 of title 5, United States Code, is amended by adding 
  after the item relating to section 5372a the following new item:
  
  ``5372b. Merit Systems Protection Board administrative judges.''.
target: Amends Federal civil service law to authorize the Merit Systems Protection Board (MSPB) to establish a three-year program to provide Federal employees and agencies with alternative dispute resolution (ADR) processes to apply to workplace disputes and disagreements involving removals, suspensions for more than 14 days, and other adverse actions under Federal civil service law.  Directs the MSPB to test and evaluate a variety of ADR techniques.  Authorizes the MSPB to implement its early intervention ADR, allowing any agency or employee to request such early intervention, and authorizing the MSPB Chairman to designate up to three agencies with a substantial number of MSPB appeals for participation in a mandatory early intervention ADR program. 
  Allows any employee or agency to request ADR once an appeal or petition for review of a case is filed with the MSPB.  Outlines MSPB procedures for such cases.  Direct the MSPB's Office of Policy and Evaluation to establish criteria for evaluating the ADR program and to prepare a report as to whether mandatory ADR is desirable, effective, and appropriate for cases decided by Federal administrative agencies. 
  Authorizes appropriations for the ADR program. 
  Establishes the MSPB Administrative Judge Pay Schedule, with pay levels comparable to that of immigration judges and administrative law judges.  Provides, with respect to such Schedule, for initial appointment and advancement, and transition provisions for current judges.  Authorizes appropriations to carry out such Schedule.
feat_title: To amend title 5, United States Code, to authorize the Merit Systems Protection Board to conduct an alternative dispute resolution pilot program to assist Federal Government agencies in resolving serious workplace disputes, and to establish an administrative judge pay schedule for administrative judges employed by the Merit Systems Protection Board.