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U.S. Code > Title 42 > Chapter 62 > Subchapter II > § 4721 - Declaration of purpose

(a) Amount of grants; executive certification; systems of personnel
  administration: innovation and diversity in design, execution,
  and management
  The Office of Personnel Management (hereinafter referred to as
the "Office") is authorized to make grants to a State for up to 75
per centum (or, with respect to fiscal years commencing after the
expiration of three years following the effective date of the grant
provisions of this chapter, for up to 50 per centum) of the costs
of developing and carrying out programs or projects, on the
certification of the Governor of that State that the programs or
projects contained within the State's application are consistent
with the applicable principles set forth in clauses (1)-(6) of the
third paragraph of section 4701 of this title, to strengthen
personnel administration in that State government or in local
governments of that State. The authority provided by this section
shall be employed in such a manner as to encourage innovation and
allow for diversity on the part of State and local governments in
the design, execution, and management of their own systems of
personnel administration.
(b) Application; time of making; information; terms and conditions;
  personnel administration improvement
  An application for a grant shall be made at such time or times,
and contain such information, as the Office may prescribe. The
Office may make a grant under subsection (a) of this section only
if the application therefor - 
    (1) provides for designation, by the Governor or chief
  executive authority, of the State office that will have primary
  authority and responsibility for the development and
  administration of the approved program or project at the State
  level;
    (2) provides for the establishment of merit personnel
  administration where appropriate and the further improvement of
  existing systems based on merit principles;
    (3) provides for specific personnel administration improvement
  needs of the State government and, to the extent appropriate, of
  the local governments in that State, including State personnel
  administration services for local governments;
    (4) provides assurance that the making of a Federal Government
  grant will not result in a reduction in relevant State or local
  government expenditures or the substitution of Federal funds for
  State or local funds previously made available for these
  purposes; and
    (5) sets forth clear and practicable actions for the
  improvement of particular aspects of personnel administration
  such as - 
      (A) establishment of statewide personnel systems of general
    or special functional coverage to meet the needs of urban,
    suburban, or rural governmental jurisdictions that are not able
    to provide sound career services, opportunities for
    advancement, adequate retirement and leave systems, and other
    career inducements to well-qualified professional,
    administrative, and technical personnel;
      (B) making State grants to local governments to strengthen
    their staffs by improving their personnel administration;
      (C) assessment of State and local government needs for
    professional, administrative, and technical manpower, and the
    initiation of timely and appropriate action to meet such needs;
      (D) strengthening one or more major areas of personnel
    administration, such as recruitment and selection, training and
    development, and pay administration;
      (E) undertaking research and demonstration projects to
    develop and apply better personnel administration techniques,
    including both projects conducted by State and local government
    staffs and projects conducted by colleges or universities or
    other appropriate nonprofit organizations under grants or
    contracts;
      (F) strengthening the recruitment, selection, assignment, and
    development of handicapped persons, women, and members of
    disadvantaged groups whose capacities are not being utilized
    fully;
      (G) training programs related directly to upgrading within
    the agency for nonprofessional employees who show promise of
    developing a capacity for assuming professional responsibility;
      (H) achieving the most effective use of scarce professional,
    administrative, and technical manpower; and
      (I) increasing intergovernmental cooperation in personnel
    administration, with respect to such matters as recruiting,
    examining, pay studies, training, education, personnel
    interchange, manpower utilization, and fringe benefits.

Legislative History

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