SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alcohol and Tobacco Tax and Trade 
Bureau Personnel Flexibilities Act''.

SEC. 2. ALCOHOL AND TOBACCO TAX AND TRADE BUREAU.

    (a) In General.--Subpart I of part III of title 5, United States 
Code, is amended by inserting after chapter 95 the following:

         ``CHAPTER 96--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

``9601. Definitions; applicability.
``9602. Compensation and performance management system.
``Sec. 9601. Definitions; applicability
    ``(a) Definitions.--For purposes of this chapter--
            ``(1) the term `Secretary' means the Secretary of the 
        Treasury;
            ``(2) the term `Bureau' means the Alcohol and Tobacco Tax 
        and Trade Bureau, Department of the Treasury; and
            ``(3) the terms `senior executive' and `Senior Executive 
        Service position' have the respective meanings given them in 
        section 3132(a).
    ``(b) Applicability.--A compensation and performance management 
system established under section 9602 shall not cover, and nothing in 
any such system shall be considered to apply with respect to, a senior 
executive or a Senior Executive Service position.
``Sec. 9602. Compensation and performance management system
    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish a system, 
        applying such criteria and procedures as the Secretary 
        considers appropriate, which shall govern the compensation and 
        performance management of any number of employees holding 
        critical scientific, technical, or professional positions in 
        the Bureau.
            ``(2) Authority.--Subject to the provisions of this 
        chapter--
                    ``(A) the establishment of a compensation and 
                performance management system under this section shall 
                not be limited by any lack of specific authority under 
                this title to take the action contemplated, or by any 
                provision of this title or any rule or regulation 
                prescribed under this title which is inconsistent with 
                the action; and
                    ``(B) the total number of positions covered by the 
                system or systems established under authority of this 
                section (determined on a full-time equivalent basis) 
                may not at any time exceed the number equal to 50 
                percent of the total number of positions within the 
                Bureau (so determined).
            ``(3) Consultation.--The Secretary shall consult with the 
        Director of the Office of Personnel Management in the exercise 
        of any authority under this section.
    ``(b) Nonwaivable Provisions; Collaboration.--A compensation and 
performance management system established under this section--
            ``(1) may not provide for a waiver of any provision of law, 
        rule, or regulation identified in section 4703(c); and
            ``(2) shall be established and implemented in a manner 
        consistent with subsections (f) and (g) of section 4703.
    ``(c) Limitations on Compensation.--Except as otherwise provided by 
law--
            ``(1) no employee compensated under a system established 
        under this section may be paid at a rate of basic pay in excess 
        of the rate payable for level III of the Executive Schedule 
        under section 5314; and
            ``(2) total payments made to employees under a system so 
        established shall be subject to any limitation on payments 
        under section 5307, to the same extent and in the same manner 
        as would apply in the case of employees paid under section 
        5376.
    ``(d) Levels of Performance.--A system established under this 
section shall have not less than 2 levels of performance above a 
retention standard.
    ``(e) Disclosure of Information.--The Secretary of the Treasury, on 
request of the Director of the Office of Personnel Management, shall 
furnish information relating to the operation of any compensation and 
performance management system established under this section.''.
    (b) Compliance Using a Preexisting System.--Nothing in this Act 
shall be considered to require that the Secretary of the Treasury 
discontinue any compensation and performance management system, 
originally implemented as a demonstration project, or postpone any 
plans to modify any such system, so long as such system (as so 
implemented or modified) satisfies the requirements of chapter 96 of 
title 5, United States Code, as amended by this Act.
    (c) Clerical Amendment.--The analysis for part III of title 5, 
United States Code, is amended by inserting after the item relating to 
chapter 95 the following:

``96. Alcohol and Tobacco Tax and Trade Bureau..............    9601''.

SEC. 3. STUDY.

    (a) In General.--Not later than 1 year after the date of the 
establishment of a compensation and performance management system under 
section 9602 of title 5, United States Code, as amended by this Act 
(or, in any circumstance described in section 2(b), after the earliest 
date, on or after the date of the enactment of this Act, as of which a 
system satisfying the requirements of chapter 96 of such title, as so 
amended, is in operation) the Government Accountability Office shall 
submit to the appropriate committees of Congress a report on--
            (1) the operation of such system; and
            (2) the operation of ongoing demonstration projects, 
        whether under section 4703 of title 5, United States Code, or 
        other authority, testing the use of a pay and classification 
        system different from the system set forth in chapter 51 and 
        subchapter III of chapter 53 of such title 5 (relating to the 
        General Schedule).
The report shall, with respect to each system covered by such report, 
include an assessment of the overall effectiveness of such system 
(particularly as compared to the system which is based on the General 
Schedule) and recommendations for any legislation or administrative 
action which the Government Accountability Office considers 
appropriate.
    (b) Appropriate Committees of Congress.--For purposes of this 
section, the term ``appropriate committees of Congress'' means--
            (1) the Committee on Oversight and Government Reform of the 
        House of Representatives; and
            (2) the Committee on Homeland Security and Governmental 
        Affairs of the Senate.
.  Alcohol and Tobacco Tax and Trade Bureau Personnel Flexibilities Act - Directs the Secretary of the Treasury to establish a system to govern the compensation and performance management of employees, other than senior executives or employees in the Senior Executive Service, holding critical scientific, technical, or professional positions in the Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury. Limits the number of employees subject to such system to 50% of the Bureau's full-time employees. Requires such system to compensate employees at a level not exceeding level III of the Executive Schedule and to have not less than two levels of performance above a retention standard.  Provides that such system: (1) may not provide for a waiver of employees' rights relating to merit system principles, and (2) must be consistent with collective bargaining agreements and rights.  Requires the Secretary, on the request of the Director of the Office of Personnel Management (OPM), to disclose information relating to the operation of any compensation and performance management system established by this Act.  Allows the continued use of an existing compensation and performance management system, originally implemented as a demonstration project, so long as such system satisfies the requirements of this Act.  Requires the Government Accountability Office (GAO) to submit to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs a report on the operation of the system and of ongoing demonstration projects testing the use of a pay and classification system different than the General Schedule for federal employee compensation.
Alcohol and Tobacco Tax and Trade Bureau Personnel Flexibilities Act