REPORT ON NURSE LOCALITY PAY.

SEC. 905. REPORT ON NURSE LOCALITY PAY. (a) Report Required.— (1) Not later than February 1, 1999, the Secretary of Veterans Affairs shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives a report assessing the system of locality-based pay for nurses established under the Department of Veterans Affairs Nurse Pay Act of 1990 (Public Law 101–366) and now set forth in section 7451 of title 38, United States Code. (2) The Secretary shall submit with the report under paragraph (1) a copy of the report on the locality pay system prepared by the contractor pursuant to a contract with Systems Flow, Inc., that was entered into on May 22, 1998. (b) Matters To Be Included.— The report of the Secretary under subsection (a)(1) shall include the following: (1) An assessment of the effects of the locality-based pay system, including information, shown by facility and grade level, regarding the frequency and percentage increases, if any, in the rate of basic pay under that system of nurses employed in the Veterans Health Administration. (2) An assessment of the manner in which that system is being applied. (3) Plans and recommendations of the Secretary for administrative and legislative improvements or revisions to the locality pay system. (4) An explanation of the reasons for any decision not to adopt any recommendation in the report referred to in subsection (a)(2). (c) Updated Report.— Not later than February 1, 2000, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report updating the report submitted under subsection (a)(1).