[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 870 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 870

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

                             April 22, 1999

    Ms. Collins (for herself, Mr. Roth, Mr. Grassley, and Mr. Bond) 
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 
1999''.

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)(A) Each appointment under this subsection shall be for a term 
of 9 years. An individual may serve more than 1 term.
    ``(B) An individual may continue to serve as Inspector General 
beyond the expiration of the term until a successor is appointed and 
has qualified, except that such individual may not continue to serve 
for more than 1 year after the date on which the term would otherwise 
expire under this paragraph.''.
    (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. PROHIBITION OF CASH BONUS OR AWARDS.

    Section 3 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended by adding at the end the following:
    ``(e) An Inspector General (as defined under section 8G(a)(2)(6) or 
11(3)) may not receive any cash award or cash bonus, including any cash 
award under chapter 45 of title 5, United States Code.''.

SEC. 4. 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 arrange with the General Accounting Office or an 
appropriate private entity for the conduct of the review.
    ``(C) If an Inspector General contracts with a private entity for a 
review 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).
    ``(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 calendar 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. 5. 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, 
        investigations (administrative, civil, and criminal), and 
        evaluations and inspections 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 final 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 
                        (both Federal and State), 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) statement of work;
                            ``(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)--
                    (A) by striking ``section 05(b)'' and inserting 
                ``section 804(b)''; and
                    (B) 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) Semiannual Reports.--Section 5 of the Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f)(1) Subject to paragraph (4), in addition to any annual report 
required to be furnished and transmitted under subsection (b), an 
Inspector General shall prepare and submit a report described under 
paragraph (2) to--
            ``(A) the applicable congressional committee, if the 
        chairman or ranking member of a congressional committee with 
        appropriate jurisdiction submits a written request to such 
        Inspector General; or
            ``(B) to the Comptroller General of the United States if 
        the Comptroller General submits a written request to such 
        Inspector General.
    ``(2) A report referred to under paragraph (1) shall--
            ``(A) contain the information required for an annual report 
        under subsection (a); and
            ``(B) summarize the activities of the Office during the 6-
        month period ending on March 31 of the calendar year following 
        the date on which the request is made.
    ``(3) A report under this subsection shall be submitted on April 30 
of the calendar year following the date on which the request is made.
    ``(4) An Inspector General shall not be required to submit a report 
under this subsection if the written request for such report is 
submitted to the Inspector General after November 30 of the calendar 
year preceding the date on which the report is otherwise required to be 
submitted to a congressional committee or the Comptroller General.''.
    (c) Submission of Other Reports.--Nothing in the amendments made by 
this section shall be construed to limit an Inspector General from 
submitting any report containing in whole or part information required 
in an annual or semiannual report furnished and transmitted under 
section 5 of the Inspector General Act of 1978 (5 U.S.C. App.) to 
Congress more frequently than on an annual or semiannual basis.
    (d) 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. 6. 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.''.
    (c) Savings Provision.--Nothing in this section shall have the 
effect of reducing the rate of pay of any individual serving as an 
Inspector General on the effective date of this section.

SEC. 7. 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 (J)--
                    (A) by inserting ``(i)'' after ``(J)'';
                    (B) by inserting ``and'' after the semicolon; and
                    (C) by adding at the end the following:
                            ``(ii) of the Department of Labor, the 
                        Office of Inspector General of the Pensions 
                        Benefit Guaranty Corporation, effective 30 days 
                        after the date of enactment of the Inspector 
                        General Act Amendments of 1999;'';
            (2) in subparagraph (K)--
                    (A) by inserting ``(i)'' after ``(K)'';
                    (B) by inserting ``and'' after the semicolon; and
                    (C) by adding at the end the following:
                            ``(ii) of the Department of Transportation, 
                        the Office of Inspector General of the Federal 
                        Maritime Commission, effective 30 days after 
                        the date of enactment of the Inspector General 
                        Act Amendments of 1999;''; and
            (3) in subparagraph (R)--
                    (A) by inserting ``(i)'' after ``(R)'';
                    (B) by inserting ``and'' after the semicolon; and
                    (C) by adding at the end the following:
                            ``(ii) of the Office of Personnel 
                        Management, the Office of Inspector General of 
                        the Federal Labor Relations Authority, 
                        effective 30 days after the date of enactment 
                        of the Inspector General Act Amendments of 
                        1999;''.
    (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.--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,'' and inserting ``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 
Trade Commission, the Legal Services Corporation, the National Archives 
and Records Administration, the National Credit Union Administration, 
the National Endowment for the Arts and the National Endowment for the 
Humanities, the National Labor Relations Board, the National Science 
Foundation, the Panama Canal Commission, the Peace Corps,''.
    (d) Amendments Relating to Special Provisions Concerning Former 
Designated Federal Entities.--
            (1) Rule of construction of special provisions.--Section 8I 
        of the Inspector General Act of 1978 (5 U.S.C. App.) (relating 
        to rule of construction of special provisions) is amended--
                    (A) by striking ``Sec. 8I'' and inserting ``Sec. 
                8K''; and
                    (B) by striking all beginning with ``special 
                provisions'' through ``of this Act'' and inserting 
                ``special provisions under section 8, 8A, 8B, 8C, 8D, 
                8E, 8F, or 8H of this Act.''.
            (2) Special provisions concerning former designated federal 
        entities.--The Inspector General Act of 1978 (5 U.S.C. App.) is 
        amended by inserting after section 8H the following:

   ``special provisions concerning former designated federal entities

    ``Sec. 8I. (a) For purposes of this section, the term--
            ``(1) `establishment' means any establishment to which an 
        office is transferred under section 9(a)(1) (J), (K), or (R); 
        and
            ``(2) `former designated Federal entity' means a designated 
        Federal entity from which any office is transferred under 
        section 9(a)(1) (J), (K), or (R).
    ``(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).

``special provisions concerning the national endowment for the arts and 
               the national endowment for the humanities

    ``Sec. 8J. For purposes of this Act--
            ``(1) the National Endowment for the Arts and the National 
        Endowment for the Humanities shall be treated as a single 
        designated Federal entity;
            ``(2) subject to paragraph (3), the heads of the designated 
        Federal entities of the National Endowment for the Arts and the 
        National Endowment for the Humanities (as determined under 
        section 8H) shall jointly exercise all functions of the head of 
        a designated Federal entity; and
            ``(3) in the appointment of a single Inspector General for 
        the National Endowment for the Arts and the National Endowment 
        for the Humanities, the heads of such designated Federal 
        entities shall consult with the Deputy Director for Management 
        of the Office of Management and Budget.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect 30 days after the date of enactment of this Act.
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