[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2167 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2167

To amend the Inspector General Act of 1978 (5 U.S.C. App.) to increase 
   the efficiency and accountability of Offices of Inspector General 
          within Federal departments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 1998

  Ms. Collins (for herself and Mr. Grassley) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Inspector General Act of 1978 (5 U.S.C. App.) to increase 
   the efficiency and accountability of Offices of Inspector General 
          within Federal departments, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Inspector General Act Amendments of 
1998''.

SEC. 2. APPOINTMENT AND REMOVAL OF OFFICERS.

    (a) In General.--Section 3(a) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Each appointment under this subsection shall be for a term of 
9 years. An individual may serve more than 1 term.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of enactment of this Act and shall apply only to an 
appointment made on or after such date.

SEC. 3. EXTERNAL REVIEWS.

    (a) In General.--Section 4 of the Inspector General Act of 1978 (5 
U.S.C. App.) is amended by inserting at the end the following:
    ``(e)(1)(A) Not less than every 3 years an external review shall be 
conducted of each Office defined under sections 11(4) and 8G(5).
    ``(B) The Inspector General of each Office defined under sections 
11(4) and 8G(5) shall contract with an entity described under 
subparagraph (C) for the conduct of the review.
    ``(C) An entity referred to under subparagraph (B) is--
            ``(i) the General Accounting Office;
            ``(ii) a disinterested Inspector General of another 
        establishment, or designated Federal entity; or
            ``(iii) an appropriate private entity.
    ``(D)(i) If an Inspector General contracts with a private entity 
under this subsection, the private entity shall be contracted in 
accordance with section 303 of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253).
    ``(ii) An Inspector General who contracts with a disinterested 
Inspector General for a review under this subsection may not contract 
to conduct a review under this subsection of the establishment or 
entity of such disinterested Inspector General at any time.
    ``(2) At a minimum, an external review under this subsection shall 
evaluate whether the Office of Inspector General properly manages and 
controls--
            ``(A) contracts awarded by the Office of Inspector General, 
        including a determination of whether--
                    ``(i) procedures used to procure contracts are in 
                accordance with applicable laws and regulations; and
                    ``(ii) costs incurred are reasonable and allowable 
                under the terms of each contract;
            ``(B) appropriated funds, including a determination of 
        whether training and travel funds are expended in accordance 
        with applicable laws and regulations; and
            ``(C) personnel actions, including a determination of 
        whether hiring and promotion practices used and performance 
        awards issued are in accordance with applicable laws and 
        regulations.
    ``(3) Not later than 30 days after the completion of an external 
review, a report of the results shall be submitted to the head of the 
establishment and simultaneously to the appropriate committees or 
subcommittees of Congress.''.
    (b) Technical and Conforming Amendment.--The section heading for 
section 4 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended to read as follows:

    ``duties and responsibilities; report of criminal violations to 
                 attorney general; external reviews''.

SEC. 4. ANNUAL REPORTS.

    (a) In General.--Section 5(a) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended--
            (1) by striking the first sentence and inserting ``Each 
        Inspector General shall, not later than October 31 of each 
        year, prepare annual reports summarizing the activities and 
        accomplishments of the Office during the immediately preceding 
        12-month period ending September 30.'';
            (2) by striking paragraphs (1) through (12) and inserting 
        the following:
            ``(1) a summary of the program areas within the 
        establishment identified by the Inspector General as high risk 
        because of vulnerabilities to waste, fraud, abuse, and 
        mismanagement;
            ``(2) a description of the most significant audits and 
        investigations (administrative, civil, and criminal) completed 
        during the reporting period;
            ``(3) a summary of each report made to the head of the 
        establishment under section 6(b)(2) during the reporting 
        period;
            ``(4) a table showing--
                    ``(A)(i) the total number of audit reports issued 
                by the Office of Inspector General; and
                    ``(ii) the financial benefits associated with the 
                reports segregated by category, such as budget 
                reductions, costs avoided, questioned costs, and 
                revenue enhancements; and
                    ``(B) corrective actions taken and program 
                improvements made during the reporting period in 
                response to either an Office of Inspector General audit 
                finding or recommendation (excluding any recommendation 
                included under subparagraph (A) with respect to such 
                corrective actions);
            ``(5) a table showing--
                    ``(A) the judicial and administrative actions 
                associated with investigations conducted by the Office 
                of Inspector General;
                    ``(B) the number of--
                            ``(i) cases referred for criminal 
                        prosecution, civil remedies, or administrative 
                        actions;
                            ``(ii) cases presented but declined for 
                        prosecution, segregated by criminal and civil;
                            ``(iii) cases accepted for prosecution, 
                        segregated by criminal and civil;
                            ``(iv) defendants indicted;
                            ``(v) defendants convicted;
                            ``(vi) defendants acquitted or charges 
                        dismissed after indictment;
                            ``(vii) defendants sentenced to terms of 
                        imprisonment;
                            ``(viii) defendants sentenced to terms of 
                        probation; and
                            ``(ix) suspensions, disbarments, 
                        exclusions, sanctions, or some other similar 
                        administrative action; and
                    ``(C) the total amount of fines, restitutions, and 
                recoveries;
            ``(6) a description of the organization and management 
        structure of the Office of Inspector General, including--
                    ``(A) an organization chart showing the major 
                components of the Office;
                    ``(B) a statistical table showing the number of 
                authorized full-time equivalent positions segregated by 
                component and by headquarters and field office; and
                    ``(C) the amount of funding received in prior and 
                current fiscal years;
            ``(7) a table showing--
                    ``(A) the number of contracts, and associated 
                dollar value, awarded on a noncompetitive basis by the 
                Office of Inspector General; and
                    ``(B) with respect to any individual contract 
                valued over $100,000, awarded on a noncompetitive 
                basis--
                            ``(i) the name of the contractor;
                            ``(ii) all services provided;
                            ``(iii) the time period of the contract; 
                        and
                            ``(iv) the dollar amount of the contract;
            ``(8)(A) a summary of each audit report issued in previous 
        reporting periods for which no management decision has been 
        made by the end of the reporting period (including the date and 
        title of each such report);
            ``(B) an explanation of the reasons such management 
        decision has not been made; and
            ``(C) a statement concerning the desired timetable for 
        achieving a management decision on each such report;'';
            (3) by redesignating paragraph (13) as paragraph (9);
            (4) in paragraph (9) (as redesignated by paragraph (3) of 
        this subsection) by striking the period and inserting a 
        semicolon and ``and''; and
            (5) by adding at the end the following new paragraph:
            ``(10) any other information that the Inspector General 
        determines appropriate to include in the annual report.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 4(a)(2) of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended by striking ``semiannual'' and 
        inserting ``annual''.
            (2) Section 5 of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended--
                    (A) in subsection (b)--
                            (i) by striking ``Semiannual'' and 
                        inserting ``Annual''; and
                            (ii) by striking ``April 30 and''; and
                    (B) in subsection (c)--
                            (i) in the first sentence by striking 
                        ``semiannual'' and inserting ``annual''; and
                            (ii) in the second sentence by striking 
                        ``semiannual'' and inserting ``annual''.
            (3) Section 8(f) of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended by striking ``semiannual'' and 
        inserting ``annual''.
            (4) Section 8A(c) of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended by striking ``semiannual'' and 
        inserting ``annual''.

SEC. 5. INSPECTORS GENERAL AT LEVEL III OF EXECUTIVE SCHEDULE.

    (a) Level IV Positions.--Section 5315 of title 5, United States 
Code, is amended by striking each item relating to the following 
positions:
            (1) Inspector General, Department of Education.
            (2) Inspector General, Department of Energy.
            (3) Inspector General, Department of Health and Human 
        Services.
            (4) Inspector General, Department of Agriculture.
            (5) Inspector General, Department of Housing and Urban 
        Development.
            (6) Inspector General, Department of Labor.
            (7) Inspector General, Department of Transportation.
            (8) Inspector General, Department of Veterans Affairs.
            (9) Inspector General, Department of Defense.
            (10) Inspector General, United States Information Agency.
            (11) Inspector General, Department of State.
            (12) Inspector General, Department of Commerce.
            (13) Inspector General, Department of the Interior.
            (14) Inspector General, Department of Justice.
            (15) Inspector General, Department of the Treasury.
            (16) Inspector General, Agency for International 
        Development.
            (17) Inspector General, Environmental Protection Agency.
            (18) Inspector General, Federal Emergency Management 
        Agency.
            (19) Inspector General, General Services Administration.
            (20) Inspector General, National Aeronautics and Space 
        Administration.
            (21) Inspector General, Nuclear Regulatory Commission.
            (22) Inspector General, Office of Personnel Management.
            (23) Inspector General, Railroad Retirement Board.
            (24) Inspector General, Small Business Administration.
            (25) Inspector General, Federal Deposit Insurance 
        Corporation.
            (26) Inspector General, Resolution Trust Corporation.
            (27) Inspector General, Central Intelligence Agency.
            (28) Inspector General, Social Security Administration.
            (29) Inspector General, United States Postal Service.
    (b) Level III Positions.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Inspector General, Department of Education.
            ``Inspector General, Department of Energy.
            ``Inspector General, Department of Health and Human 
        Services.
            ``Inspector General, Department of Agriculture.
            ``Inspector General, Department of Housing and Urban 
        Development.
            ``Inspector General, Department of Labor.
            ``Inspector General, Department of Transportation.
            ``Inspector General, Department of Veterans Affairs.
            ``Inspector General, Department of Defense.
            ``Inspector General, Department of State.
            ``Inspector General, Department of Commerce.
            ``Inspector General, Department of the Interior.
            ``Inspector General, Department of Justice.
            ``Inspector General, Department of the Treasury.
            ``Inspector General, Agency for International Development.
            ``Inspector General, Corporation for Community and National 
        Service.
            ``Inspector General, Environmental Protection Agency.
            ``Inspector General, Federal Emergency Management Agency.
            ``Inspector General, General Services Administration.
            ``Inspector General, National Aeronautics and Space 
        Administration.
            ``Inspector General, Nuclear Regulatory Commission.
            ``Inspector General, Office of Personnel Management.
            ``Inspector General, Railroad Retirement Board.
            ``Inspector General, Small Business Administration.
            ``Inspector General, Federal Deposit Insurance Corporation.
            ``Inspector General, Central Intelligence Agency.
            ``Inspector General, Social Security Administration.
            ``Inspector General, United States Postal Service.''.

SEC. 6. OFFICES OF INSPECTOR GENERAL IN CERTAIN DESIGNATED FEDERAL 
              ENTITIES.

    (a) Transfer of Functions.--Section 9(a)(1) of the Inspector 
General Act of 1978 is amended--
            (1) in subparagraph (V) by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (W) by striking ``and'' after the 
        semicolon; and
            (3) by adding after subparagraph (W) the following:
                    ``(X) of the Office of Inspector General of the 
                Department of Education, the Offices of Inspector 
                General of the Corporation for Public Broadcasting, 
                National Endowment for the Arts, National Endowment for 
                the Humanities, and the Smithsonian Institution, 
                effective 30 days after the date of enactment of the 
                Inspector General Act Amendments of 1998;
                    ``(Y) of the Office of Inspector General of the 
                Department of Commerce, the Office of Inspector General 
                of the National Science Foundation, effective 30 days 
                after the date of enactment of the Inspector General 
                Act Amendments of 1998;
                    ``(Z) of the Office of Inspector General of the 
                General Services Administration, the Office of 
                Inspector General of the National Archives and Records 
                Administration, effective 30 days after the date of 
                enactment of the Inspector General Act Amendments of 
                1998; and
                    ``(AA) of the Office of Inspector General of the 
                Department of State, the Office of Inspector General of 
                the Peace Corps, effective 30 days after the date of 
                enactment of the Inspector General Act Amendments of 
                1998; and''.
    (b) Administrative Provisions.--
            (1) Termination of offices.--The Office of Inspector 
        General of each designated Federal entity transferred under 
        subsection (a) is terminated.
            (2) Incumbents.--The individual who is the Inspector 
        General of a designated Federal entity transferred under 
        subsection (a)--
                    (A) shall be transferred to the Office of Inspector 
                General of the applicable establishment;
                    (B) shall be an employee of such Office under the 
                direction of the Inspector General of the applicable 
                establishment; and
                    (C) shall continue to be compensated at not less 
                than the rate provided for before such transfer, for at 
                least 1 year after the date of such transfer.
            (3) Personnel and assets.--Section 9 (b) and (c) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) shall apply to 
        the transfers made by the amendments under subsection (a) of 
        this section.
    (c) Former Designated Federal Entity.--
            (1) In general.--Section 8G(a)(2) of the Inspector General 
        Act of 1978 (5 U.S.C. App.) is amended by striking ``the 
        Corporation for Public Broadcasting, the Equal Employment 
        Opportunity Commission, the Farm Credit Administration, the 
        Federal Communications Commission, the Federal Election 
        Commission, the Federal Housing Finance Board, the Federal 
        Labor Relations Authority, the Federal Maritime Commission, the 
        Federal Trade Commission, the Legal Services Corporation, the 
        National Archives and Records Administration, the National 
        Credit Union Administration, the National Endowment for the 
        Arts, the National Endowment for the Humanities, the National 
        Labor Relations Board, the National Science Foundation, the 
        Panama Canal Commission, the Peace Corps, the Pension Benefit 
        Guaranty Corporation, the Securities and Exchange Commission, 
        the Smithsonian Institution,'' and inserting ``the Equal 
        Employment Opportunity Commission, the Farm Credit 
        Administration, the Federal Communications Commission, the 
        Federal Election Commission, the Federal Housing Finance Board, 
        the Federal Labor Relations Authority, the Federal Maritime 
        Commission, the Federal Trade Commission, the Legal Services 
        Corporation, the National Credit Union Administration, the 
        National Labor Relations Board, the Panama Canal Commission, 
        the Pension Benefit Guaranty Corporation, the Securities and 
        Exchange Commission,''.
            (2) National science foundation.--Section 8G(a)(4) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
        striking ``, except that with respect to the National Science 
        Foundation, such term means the National Science Board''.
    (d) Amendments Relating to Special Provisions Concerning Former 
Designated Federal Entities.--
            (1) Rule of construction of special provisions.--Section 8H 
        of the Inspector General Act of 1978 (5 U.S.C. App.) is 
        amended--
                    (A) by striking ``Sec. 8H'' and inserting ``Sec. 
                8I'';
                    (B) by striking ``or 8E'' and inserting ``8E, 8F, 
                or 8G''; and
                    (C) by striking ``section 8F(a)'' and inserting 
                ``section 8H(a)''.
            (2) Redesignation of section 8g.--Section 8G of the 
        Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
        striking ``Sec. 8G'' and inserting ``Sec. 8H''.
            (3) Special provisions concerning former designated federal 
        entities.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
        amended by inserting after section 8F the following:

  ``special provisions concerning former designated federal entities''

    ``Sec. 8G. (a) For purposes of this section, the term--
            ``(1) `establishment' means any establishment to which an 
        office is transferred under section 9(a)(1) (X) through (AA); 
        and
            ``(2) `former designated Federal entity' means a designated 
        Federal entity from which any office is transferred under 
        section 9(a)(1) (X) through (AA).
    ``(b) The Office of Inspector General of each establishment shall 
perform all duties, responsibilities, and functions of an Office of 
Inspector General under this Act with respect to each applicable former 
designated Federal entity.
    ``(c) The Inspector General of an establishment shall prepare and 
submit an annual report under section 5 relating to each applicable 
former designated Federal entity to the head of such former designated 
Federal entity.
    ``(d) In the administration of section 5(d) with respect to a 
former designated Federal entity--
            ``(1) the Inspector General shall make the required report 
        to the head of such former designated Federal entity instead of 
        the head of the establishment; and
            ``(2) the head of such former designated Federal entity 
        shall make the required transmittal to Congress.
    ``(e) The head of each former designated Federal entity shall 
provide the Office of the Inspector General of the applicable 
establishment with such office space, equipment, supplies, facilities, 
and services as may be necessary, in the same manner as provided under 
section 6(c).''.
    (e) Effective Date.--The amendments made by this section shall take 
effect 30 days after the date of enactment of this Act.
                                 <all>