II 110th CONGRESS 1st Session S. 1723 IN THE SENATE OF THE UNITED STATES June 28, 2007 Mrs. McCaskill introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To amend the Inspector General Act of 1978 to enhance the independence of the Inspectors General, to create a Council of the Inspectors General on Integrity and Efficiency, and for other purposes.

1.

Short title

This Act may be cited as the Improving Government Accountability Act.

2.

Enhancing independence of Inspectors General

(a)

Removal for cause

The Inspector General Act of 1978 (5 U.S.C. App.) is amended— (1)in section 3(b)— (A)by inserting (1) after (b); and (B)by adding at the end the following: (2)An Inspector General may be removed from office prior to the expiration of his or her term only on any of the following grounds: (A)Permanent incapacity. (B)Inefficiency. (C)Neglect of duty. (D)Malfeasance. (E)Conviction of a felony or conduct involving moral turpitude. ; and (2)in section 8G(e)— (A)by inserting (1) after (e); and (B)by adding at the end the following: (2)An Inspector General may be removed from office prior to the expiration of his or her term only on any of the following grounds: (A)Permanent incapacity. (B)Inefficiency. (C)Neglect of duty. (D)Malfeasance. (E)Conviction of a felony or conduct involving moral turpitude. . (b)

Establishment of terms of Office

The Inspector General Act of 1978 (5 U.S.C. App.) is amended— (1)in section 3 by adding at the end the following: (e)(1)The term of office of each Inspector General shall be seven years. An individual may serve for more than one term in such office. Any individual appointed and confirmed to fill a vacancy in such position, occurring before the expiration of the term for which his or her predecessor was appointed, shall be appointed and confirmed for a full seven-year term. (2)An individual may continue to serve as Inspector General beyond the expiration of the term for which the individual is appointed until a successor is appointed and confirmed, 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 paragraph (1). ; and (2)in section 8G(c) by inserting (1) after (c), and by adding at the end the following: (2)The term of office of each Inspector General shall be seven years. An individual may serve for more than one term in such office. Any individual appointed to fill a vacancy in such position, occurring before the expiration of the term for which his or her predecessor was appointed, shall be appointed for a full 7-year term. . (c)

Separate Counsels to Inspectors General

(1)

Counsels to Inspectors General of establishments

Section 3 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following: (e)Each Inspector General shall, in accordance with applicable laws and regulations governing the civil service, appoint a Counsel to the Inspector General who shall report to the Inspector General. . (2)

Counsels to Inspectors General of designated Federal entities

Section 8G(g) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following: (4)Each Inspector General shall, in accordance with applicable laws and regulations governing appointments within the designated Federal entity, appoint a Counsel to the Inspector General who shall report to the Inspector General. . (d)

Application

The amendments made by subsections (a) and (b) shall apply to any Inspector General appointed before, on, or after the date of the enactment of this Act. The term of office of an Inspector General serving on such date of enactment is deemed to begin on such date of enactment.

3.

Direct submission of budget requests to Congress

Section 6 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following: (f)(1)For each fiscal year, an Inspector General may transmit an appropriation estimate and request to the Director of the Office of Management and Budget and to the appropriate committees or subcommittees of the Congress, in addition to any appropriation estimate and request submitted to the head of the establishment concerned. (2)The President shall include in each budget of the United States Government submitted to the Congress— (A)a separate statement of the amount of appropriations requested by each Inspector General who has submitted an appropriation estimate under paragraph (1); and (B)a statement comparing each such appropriation estimate and request submitted by an Inspector General and the funds requested by the head of the establishment concerned. .

4.

Establishment of Council of the Inspectors General on Integrity and Efficiency

(a)

Establishment

The Inspector General Act of 1978 (5 U.S.C. App.) is amended by redesignating sections 11 and 12 in order as sections 12 and 13, and by inserting after section 10 the following:

11.

Establishment of the Council of the Inspectors General on Integrity and Efficiency

(a)

Establishment and Mission

(1)

Establishment

There is established as an independent entity within the executive branch the Inspectors General Council (in this section referred to as the Council). (2)

Mission

The mission of the Council shall be to— (A)address integrity, economy, and effectiveness issues that transcend individual Government agencies; and (B)increase the professionalism and effectiveness of personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the offices of the Inspectors General. (b)

Membership

(1)

In general

The Council shall consist of the following members: (A)All Inspectors General whose offices are established under— (i)section 2; or (ii)section 8G. (B)The Inspectors General of the Central Intelligence Agency and the Government Printing Office. (C)The Controller of the Office of Federal Financial Management. (D)A senior level official of the Federal Bureau of Investigation designated by the Director of the Federal Bureau of Investigation. (E)The Director of the Office of Government Ethics. (F)The Special Counsel of the Office of Special Counsel. (G)The Deputy Director of the Office of Personnel Management. (H)The Deputy Director for Management of the Office of Management and Budget. (2)

Chairperson and executive chairperson

(A)

Executive chairperson

The Deputy Director for Management of the Office of Management and Budget shall be the Executive Chairperson of the Council. (B)

Chairperson

The Council shall elect one of the Inspectors General referred to in paragraph (1)(A) or (B) to act as Chairperson of the Council. The term of office of the Chairperson shall be two years. (3)

Functions of chairperson and executive chairperson

(A)

Executive chairperson

The Executive Chairperson shall— (i)preside over meetings of the Council; (ii)provide to the heads of agencies and entities represented on the Council with summary reports of the activities of the Council; and (iii)provide to the Council such information relating to the agencies and entities represented on the Council as will assist the Council in performing its functions. (B)

Chairperson

The Chairperson shall— (i)convene meetings of the Council— (I)at least six times each year; (II)monthly to the extent possible; and (III)more frequently at his or her discretion; (ii)exercise the functions and duties of the Council under subsection (c); (iii)appoint a Vice Chairperson to assist in carrying out the functions of the Council and act in the absence of the Chairperson, from a category of Inspectors General described in subparagraph (A)(i), (A)(ii), or (B) of subsection (b)(1), other than the category from which the Chairperson was elected; (iv)make such payments from funds otherwise available to the Council as may be necessary to carry out the functions of the Council; (v)select, appoint, and employ personnel as needed to carry out the functions of the Council subject to the availability of appropriations and the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification and General Schedule pay rates; (vi)to the extent and in such amounts as may be provided in advance by appropriations Acts, enter into contracts and other arrangements with public agencies and private persons to carry out the functions and duties of the Council; (vii)establish, in consultation with the members of the Council, such committees as determined by the Chairperson to be necessary and appropriate for the efficient conduct of Council functions; and (viii)prepare and transmit a report annually on behalf of the Council to the President on the activities of the Council. (c)

Functions and duties of council

(1)

In general

The Council shall— (A)continually identify, review, and discuss areas of weakness and vulnerability in Federal programs and operations with respect to fraud, waste, and abuse; (B)develop plans for coordinated, Government-wide activities that address these problems and promote economy and efficiency in Federal programs and operations, including interagency and inter-entity audit, investigation, inspection, and evaluation programs and projects to deal efficiently and effectively with those problems concerning fraud and waste that exceed the capability or jurisdiction of an individual agency or entity; (C)develop policies that will aid in the maintenance of a corps of well-trained and highly skilled Office of Inspector General personnel; (D)maintain an Internet Web site and other electronic systems for the benefit of all Inspectors General, as the Council determines are necessary or desirable; (E)maintain one or more academies as the Council considers desirable for the professional training of auditors, investigators, inspectors, evaluators, and other personnel of the various offices of Inspector General; (F)submit recommendations of 3 individuals to the appropriate appointing authority for any appointment to an office of Inspector General described under subsection (b)(1)(A) or (B); and (G)make such reports to the Congress as the Chairperson determines are necessary or appropriate. (2)

Adherence and participation by members

Each member of the Council should, to the extent permitted under law, and to the extent not inconsistent with standards established by the Comptroller General of the United States for audits of Federal establishments, organizations, programs, activities, and functions, adhere to professional standards developed by the Council and participate in the plans, programs, and projects of the Council. (3)

Existing authorities and responsibilities

The creation and operation of the Council— (A)shall not affect the preeminent policy-setting role of the Department of Justice in law enforcement and litigation; (B)shall not affect the authority or responsibilities of any Government agency or entity; and (C)shall not affect the authority or responsibilities of individual members of the Council. (d)

Integrity Committee

(1)

Establishment

The Council shall have an Integrity Committee, which shall receive, review, and refer for investigation allegations of wrongdoing that are made against Inspectors General and certain staff members of the various Offices of Inspector General. (2)

Membership

The Integrity Committee shall consist of the following members: (A)The official of the Federal Bureau of Investigation serving on the Council, who shall serve as Chairperson of the Integrity Committee. (B)3 or more Inspectors General described in subparagraph (A) or (B) of subsection (b)(1) appointed by the Chairperson of the Council, representing both establishments and designated Federal entities (as that term is defined in section 8G(a)). (C)The Special Counsel of the Office of Special Counsel. (D)The Director of the Office of Government Ethics. (3)

Legal advisor

The Chief of the Public Integrity Section of the Criminal Division of the Department of Justice, or his designee, shall serve as a legal advisor to the Integrity Committee. (4)

Referral of allegations

(A)

Requirement

An Inspector General shall refer to the Integrity Committee any allegation of wrongdoing against a staff member of his or her office, if— (i)review of the substance of the allegation cannot be assigned to an agency of the executive branch with appropriate jurisdiction over the matter; and (ii)the Inspector General determines that— (I)an objective internal investigation of the allegation is not feasible; or (II)an internal investigation of the allegation may appear not to be objective. (B)

Staff member defined

In this subsection the term staff member means— (i)any employee of an Office of Inspector General who reports directly to an Inspector General; or (ii)who is designated by an Inspector General under subparagraph (C). (C)

Designation of staff members

Each Inspector General shall annually submit to the Chairperson of the Integrity Committee a designation of positions whose holders are staff members for purposes of subparagraph (B). (5)

Review of allegations

The Integrity Committee shall— (A)review all allegations of wrongdoing it receives against an Inspector General, or against a staff member of an Office of Inspector General; and (B)refer to the Chairperson of the Integrity Committee any allegation of wrongdoing determined by the Integrity Committee to be meritorious that cannot be referred to an agency of the executive branch with appropriate jurisdiction over the matter. (6)

Authority to investigate allegations

(A)

Requirement

The Chairperson of the Integrity Committee shall cause a thorough and timely investigation of each allegation referred under paragraph (5)(B) to be conducted in accordance with this paragraph. (B)

Resources

At the request of the Chairperson of the Integrity Committee, the head of each agency or entity represented on the Council— (i)may provide resources necessary to the Integrity Committee; and (ii)may detail employees from that agency or entity to the Integrity Committee, subject to the control and direction of the Chairperson, to conduct an investigation pursuant to this subsection. (7)

Procedures for investigations

(A)

Standards applicable

Investigations initiated under this subsection shall be conducted in accordance with the most current Quality Standards for Investigations issued by the Council or by its predecessors (the President’s Council on Integrity and Efficiency and the Executive Council on Integrity and Efficiency). (B)

Additional policies and procedures

The Integrity Committee, in conjunction with the Chairperson of the Council, shall establish additional policies and procedures necessary to ensure fairness and consistency in— (i)determining whether to initiate an investigation; (ii)conducting investigations; (iii)reporting the results of an investigation; and (iv)providing the person who is the subject of an investigation with an opportunity to respond to any Integrity Committee report. (C)

Reports

The Chairperson of the Integrity Committee shall report to the Executive Chairperson of the Council the results of any investigation that substantiates any allegation certified under paragraph (5)(B). (8)

No right or benefit

This subsection is not intended to create any right or benefit, substantive or procedural, enforceable at law by a person against the United States, its agencies, its officers, or any person. (e)

Application

The provisions of this section apply only to the Inspectors General (and their offices) listed in subsection (b)(1)(A) and (B).

. (b)

Existing Executive Orders

Executive Order 12805, dated May 14, 1992, Executive Order 12805, dated March 21, 1996, and Executive Order 12993, dated March 26, 1996, shall have no force or effect. (c)

Conforming amendments

(1)

Inspector General Act of 1978

The Inspector General Act of 1978 (5 U.S.C. App.) is amended— (A)in sections 2(1), 4(b)(2), and 8G(a)(1)(A) by striking section 11(2) each place it appears and inserting section 12(2); and (B)in section 8G(a), in the matter preceding paragraph (1), by striking section 11 and inserting section 12. (2)

Title 31, U.S.C

Section 1105(a) of title 31, United States Code, is amended by striking the first paragraph (33) and inserting the following: (33)a separate appropriation account for appropriations for the Inspectors General Council, and, included in that account, a separate statement of the aggregate amount of appropriations requested for each academy maintained by the Inspectors General Council. .

5.

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)(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. .

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 Homeland Security. (10)Inspector General, Department of Defense. (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, Export-Import Bank. (19)Inspector General, Federal Emergency Management Agency. (20)Inspector General, General Services Administration. (21)Inspector General, National Aeronautics and Space Administration. (22)Inspector General, Nuclear Regulatory Commission. (23)Inspector General, Office of Personnel Management. (24)Inspector General, Railroad Retirement Board. (25)Inspector General, Small Business Administration. (26)Inspector General, Tennessee Valley Authority. (27)Inspector General, Federal Deposit Insurance Corporation. (28)Inspector General, Resolution Trust Corporation. (29)Inspector General, Central Intelligence Agency. (30)Inspector General, Social Security Administration. (31)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 Homeland Security. 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, Export-Import Bank. 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, Tennessee Valley Authority. 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.

7.

Qualifications of Inspectors General for designated Federal entities

Section 8G(c) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following: Each Inspector General shall be appointed without regard to political affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. .

8.

Removal of Inspectors General for designated Federal entities

Section 8G(e) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking shall promptly communicate in writing the reasons for any such removal or transfer to both Houses of the Congress and inserting shall communicate in writing the reasons for any such removal or transfer to both Houses of the Congress, not later than 15 days before the removal or transfer.

9.

Miscellaneous enhancements

(a)

Offices as discrete agencies

Section 6(d) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended to read as follows: (d)(1)(A)For purposes of applying the provisions of law identified in subparagraph (B)— (i)each Office of Inspector General shall be considered to be a separate agency; and (ii)the Inspector General who is the head of an office referred to in clause (i) shall, with respect to such office, have the functions, powers, and duties of an agency head or appointing authority under such provisions. (B)This paragraph applies with respect to the following provisions of title 5, United States Code: (i)Subchapter II of chapter 35. (ii)Sections 8335(b), 8336, 8414, and 8425(b). (iii)All provisions relating to the Senior Executive Service (as determined by the Office of Personnel Management), subject to paragraph (2). (2)For purposes of applying section 4507(b) of title 5, United States Code, paragraph (1)(A)(ii) shall be applied by substituting the Council of the Inspectors General on Integrity and Efficiency (established by section 11 of the Inspector General Act) shall for the Inspector General who is the head of an office referred to in clause (i) shall, with respect to such office,. . (b)

Inspectors General of designated Federal entities

Notwithstanding any other provision of law, the Inspector General of each designated Federal entity (as those terms are defined under section 8G of the Inspector General Act of 1978) shall, for pay and all other purposes, be classified at a grade, level, or rank designation, as the case may be, comparable to those of a majority of the senior staff members of such designated Federal entity (such as, but not limited to, a General Counsel, Deputy Director, or Chief of Staff) that report directly to the head of such designated Federal entity. (c)

Subpoena power

Section 6(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.), is amended— (1)by inserting in any medium (including electronically stored information, as well as any tangible thing) after other data; and (2)by striking subpena and inserting subpoena. (d)

Law enforcement authority for designated federal entities

Section 6(e) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended— (1)in paragraph (1) by striking appointed under section 3; and (2)by adding at the end the following: (9)In this subsection the term Inspector General means an Inspector General appointed under section 3 or an Inspector General appointed under section 8G. .

10.

Program Fraud Civil Remedies Act

Section 3801(a)(1) of title 31, United States Code, is amended by striking and after the semicolon at the end of subparagraph (C), by adding and after the semicolon at the end of subparagraph (D), and by adding at the end the following: (E)a designated Federal entity (as such term is defined under section 8G(a)(2) of the Inspector General Act of 1978). .

11.

Application of semiannual reporting requirements with respect to inspection reports and evaluation reports

Section 5 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended— (1)in each of subsections (a)(6), (a)(8), (a)(9), (b)(2), and (b)(3)— (A)by inserting , inspection reports, and evaluation reports after audit reports the first place it appears; and (B)by striking audit the second place it appears; and (2)in subsection (a)(10) by inserting , inspection reports, and evaluation reports after audit reports.

12.

Information on Websites of Offices of Inspectors General

(a)

Definition

In this section the term agency means a Federal agency as defined under section 11(5) of the Inspector General Act of 1978 (5 U.S.C. App.). (b)

Direct links to Inspectors General Offices

(1)

In general

Each agency shall establish and maintain on the homepage of the website of that agency, a direct link to the website of the Office of the Inspector General of that agency. (2)

Accessibility

The direct link under paragraph (1) shall be obvious and facilitate accessibility to the website of the Office of the Inspector General. (c)

Requirements for Inspectors General websites

(1)

Posting of reports and audits

The Inspector General of each agency shall— (A)not later than 1 day after any report or audit (or portion of any report or audit) is made publicly available, post that report or audit (or portion of that report or audit) on the website of the Office of the Inspector General; and (B)ensure that any posted report or audit (or portion of that report or audit) described under subparagraph (A)— (i)is easily accessible from a direct link on the homepage of the website of the Office of the Inspector General; (ii)includes a summary of the findings of the Inspector General; and (iii)is in a format that— (I)is searchable, sortable, and downloadable; and (II)facilitates printing by individuals of the public accessing the website. (2)

Option to receive related information

The Inspector General of each agency shall provide a service on the website of the Office of the Inspector General through which— (A)an individual may elect to automatically receive information (including subsequent reports or audits) relating to any posted report or audit (or portion of that report or audit) described under paragraph (1)(A); and (B)the Inspector General shall electronically transmit the information or notice of the availability of the information to that individual without further request. (3)

Reporting of waste, fraud, and abuse

(A)

In general

The Inspector General of each agency shall establish and maintain a direct link on the homepage of the website of the Office of the Inspector General for individuals to report waste, fraud, and abuse. (B)

Anonymity

The Inspector General of each agency shall take such actions as necessary to ensure the anonymity of any individual making a report under this paragraph. (d)

Implementation

Not later than 180 days after the date of enactment of this Act, the head of each agency and the Inspector General of each agency shall implement this section.