[Congressional Record (Bound Edition), Volume 153 (2007), Part 22]
[Senate]
[Pages 30547-30554]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. McCaskill (for herself, Ms. Collins, Mr. Lieberman, and 
        Mr. Coburn):
  S. 2324. A bill to amend the Inspector General Act of 1978 (5 U.S.C. 
App.) to enhance the Offices of the Inspectors General, to create a 
Council of the Inspectors General on Integrity and Efficiency, and for 
other purposes; to the Committee on Homeland Security and Governmental 
Affairs.
  Mrs. McCASKILL. Mr. President, I am pleased today to join my 
colleagues Senators Collins, Lieberman and Coburn in introducing the 
Inspector General Reform Act of 2007. This bill represents a strong 
bipartisan effort to strengthen the independence and integrity of our 
nation's Inspectors General, who represent one of our strongest tools 
in combating waste, fraud and abuse throughout our government.
  When I first came to the Senate this January, I made it one of my top 
priorities to become actively involved in oversight and accountability 
in Congress and in the Federal Government. I was thrilled to have been 
given an appointment to the Homeland Security and Government Affairs 
Committee, which is ably run by Chairman Lieberman. I was proud to have 
been able to cosponsor S. 680, the bill authored by Senator Collins 
which included not only extensive reforms of Government contracting 
practices, but also included many provisions geared towards improving 
the Inspector General system. I must thank Senator Collins especially 
for working with me on the Inspector General legislation, which 
incorporates not only many of her reform ideas, but also those 
introduced in the House by Representatives Jim Cooper of Tennessee in 
H.R. 928, which has passed that chamber by an overwhelming vote of 404 
to 11.
  My 8 years as State Auditor in Missouri has given me tremendous 
respect for auditors and investigators working to make sure Government 
is spending our taxpayer dollars wisely. While many people are aware of 
the great work done by the legislative branch's Government 
Accountability Office, very few people realize that there are 
Inspectors General in many of our most important agencies. These IGs 
report both to the Executive and Legislative branch, and work in the 
trenches in the agency, constantly ferreting out cases of fraud, waste, 
abuse, and other mismanagement. Their unique role, resting inside the 
very agency they are charged with auditing and investigating, often 
creates unavoidable tensions.
  The goal of the first Inspector General Act, passed 30 years ago next 
year, was to create a system that would allow the IG to rest 
harmoniously in the agency but allow them to provide oversight of an 
agency's actions and duties free from interference.
  For the most part, this system has worked. But we can do better to 
assure that Inspectors General are free of intimidation or 
inappropriate influence by the agencies they oversee. Recent news 
reports have noted that the CIA Inspector General, John Helgerson, is 
being investigated by his own agency, even though there is no apparent 
legal authority for such an investigation to take place. The 
Administrator for the General Services Administration has been openly 
critical of the GSA IG, and has tried to cut the responsibilities and 
the budget of that office. The State Department IG has answered charges 
that he has failed to investigate allegations of contracting fraud in 
Iraq and Afghanistan with the claim that he has not been provided 
enough money by his agency to do such an investigation.
  Obviously, some changes are needed and our IG reform bill attempts to 
make them. For example, IGs currently request their budgets through 
their agencies and then the agency heads determine if that request is 
appropriate before sending their budgets to the White House and then on 
to Congress. No one in Congress has the ability to see how much an IG 
office truly needs to adequately fulfill its oversight duties. Our bill 
requires that IGs can attach comments to the agency's official budget 
request if he or she believes the funding the agency requested for its 
IG is not enough to do the job.
  As more Executive agencies move to a pay for performance compensation 
system, bonuses given by the agency have become a bigger part of the 
total compensation for employees. Having the agency that you audit 
decide how much of a bonus you will receive is an obvious, unacceptable 
conflict of interest for Inspectors General. Many IGs refuse to take a 
bonus, and those who do accept them have myriad reasons for doing so. 
However, this practice will be forbidden under the new law. Given the 
negative impact on the compensation for Inspector General and the need 
to attract and retain the best and the brightest, the pay of 
presidentially appointed Inspectors General will be raised one level. 
For the other Executive IGs, their agencies will be directed to pay 
them the same or more than the total compensation received by other 
senior level employees. This system will end the possibility of an 
agency head trying to entice an IG to go easy on them, or to punish an 
IG who refuses to do so.
  This bill also gives the IGs more security from the fear of losing 
one's job for the simple reason they are too good. Before any IG can be 
removed, the congressional committees of jurisdiction must be notified, 
in writing, of the intent to remove the IG, and the reasons for doing 
so. This notice must be received at least 30 days before the scheduled 
removal. Bringing transparency to this process should guarantee that no 
IG will be removed for the wrong reason.
  I want to make sure that the good work of the IGs is readily 
accessible to the people who pay for it, the taxpayer. I was shocked to 
realize that many IGs did not post their reports on the web. At least 
one IG shop didn't even have a website. In this day and age the public, 
and Congress, should have timely and easy access to all the public 
reports produced by Inspectors General. This bill requires all reports 
which are open to the public to be posted on the web within three 
working days of their release. It also requires all IG shops to 
provide, on their websites, a method for anonymously reporting waste, 
fraud or abuse.
  Finally, this bill codifies a council for the IGs to have as a 
resource. This council, which exists now only pursuant to Executive 
order, would provide a structure for IGs to pool their resources when 
it would effectively help them perform their mission, such as providing 
Government-wide training for investigators and auditors. It will also 
include an Integrity Committee that will investigate allegations made 
against Inspectors General and certain staff members. Congress would 
receive periodic reports from this committee on the number of 
investigations they have undertaken, the results of those 
investigations, and any action by the agency taken in response to the 
findings of the committee.
  I want to make clear that I am one of the biggest fans of the current 
cadre of Inspectors General, with very few exceptions. I want to make 
sure these dedicated public servants are able to perform their duties 
free from interference. I am very proud to be part of the effort to 
make sure this happens, and again thank my colleagues Senators Collins, 
Lieberman and Coburn for their hard work and dedication to this issue.

[[Page 30548]]

  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

       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 Reform Act 
     of 2007''.

     SEC. 2. APPOINTMENT AND QUALIFICATIONS OF INSPECTORS GENERAL.

       Section 8G(c) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by adding at the end ``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.''.

     SEC. 3. REMOVAL OF INSPECTORS GENERAL.

       (a) Establishments.--Section 3(b) of the Inspector General 
     Act of 1978 (5 U.S.C. App.) is amended by striking the second 
     sentence and inserting ``If an Inspector General is removed 
     from office or is transferred to another position or location 
     within an establishment, the President shall communicate in 
     writing the reasons for any such removal or transfer to both 
     Houses of Congress, not later than 30 days before the removal 
     or transfer.''.
       (b) 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 
     Congress, not later than 30 days before the removal or 
     transfer''.
       (c) Legislative Agencies.--
       (1) Library of congress.--Section 1307(c)(2) of the 
     Legislative Branch Appropriations Act, 2006 (2 U.S.C. 
     185(c)(2)) is amended by striking the second sentence and 
     inserting ``If the Inspector General is removed from office 
     or is transferred to another position or location within the 
     Library of Congress, the Librarian of Congress shall 
     communicate in writing the reasons for any such removal or 
     transfer to both Houses of Congress, not later than 30 days 
     before the removal or transfer.''.
       (2) Capitol police.--Section 1004(b) of the Legislative 
     Branch Appropriations Act, 2006 (2 U.S.C. 1909(b)) is amended 
     by striking paragraph (3) and inserting the following:
       ``(3) Removal.--The Inspector General may be removed or 
     transferred from office before the expiration of his term 
     only by the unanimous vote of all of the voting members of 
     the Capitol Police Board. If an Inspector General is removed 
     from office or is transferred to another position or location 
     within the Capitol Police, the Capitol Police Board shall 
     communicate in writing the reasons for any such removal or 
     transfer to the Committee on Rules and Administration of the 
     Senate, the Committee on House Administration of the House of 
     Representatives, and the Committees on Appropriations of the 
     Senate and the House of Representatives, not later than 30 
     days before the removal or transfer.''.
       (3) Government printing office.--Section 3902(b)(2) of 
     title 44, United States Code, is amended by striking the 
     second sentence and inserting ``If the Inspector General is 
     removed from office or is transferred to another position or 
     location within the Government Printing Office, the Public 
     Printer shall communicate in writing the reasons for any such 
     removal or transfer to both Houses of Congress, not later 
     than 30 days before the removal or transfer.''.

     SEC. 4. PAY OF INSPECTORS GENERAL.

       (a) Inspectors General at Level III of Executive 
     Schedule.--
       (1) In general.--Section 3 of the Inspector General Act of 
     1978 (5 U.S.C. App.), is amended by adding at the end the 
     following:
       ``(e) The annual rate of basic pay for an Inspector General 
     (as defined under section 11(3)) shall be the rate payable 
     for level III of the Executive Schedule under section 5314 of 
     title 5, United States Code, plus 3 percent.''.
       (2) Technical and conforming amendments.--Section 5315 of 
     title 5, United States Code, is amended by striking the item 
     relating to each of the following positions:
       (A) Inspector General, Department of Education.
       (B) Inspector General, Department of Energy.
       (C) Inspector General, Department of Health and Human 
     Services.
       (D) Inspector General, Department of Agriculture.
       (E) Inspector General, Department of Housing and Urban 
     Development.
       (F) Inspector General, Department of Labor.
       (G) Inspector General, Department of Transportation.
       (H) Inspector General, Department of Veterans Affairs.
       (I) Inspector General, Department of Homeland Security.
       (J) Inspector General, Department of Defense.
       (K) Inspector General, Department of State.
       (L) Inspector General, Department of Commerce.
       (M) Inspector General, Department of the Interior.
       (N) Inspector General, Department of Justice.
       (O) Inspector General, Department of the Treasury.
       (P) Inspector General, Agency for International 
     Development.
       (Q) Inspector General, Environmental Protection Agency.
       (R) Inspector General, Export-Import Bank.
       (S) Inspector General, Federal Emergency Management Agency.
       (T) Inspector General, General Services Administration.
       (U) Inspector General, National Aeronautics and Space 
     Administration.
       (V) Inspector General, Nuclear Regulatory Commission.
       (W) Inspector General, Office of Personnel Management.
       (X) Inspector General, Railroad Retirement Board.
       (Y) Inspector General, Small Business Administration.
       (Z) Inspector General, Tennessee Valley Authority.
       (AA) Inspector General, Federal Deposit Insurance 
     Corporation.
       (BB) Inspector General, Resolution Trust Corporation.
       (CC) Inspector General, Central Intelligence Agency.
       (DD) Inspector General, Social Security Administration.
       (EE) Inspector General, United States Postal Service.
       (3) Additional technical and conforming amendment.--Section 
     194(b) of the National and Community Service Act of 1990 (42 
     U.S.C. 12651e(b)) is amended by striking paragraph (3).
       (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 
     (5 U.S.C. App.)) shall, for pay and all other purposes, be 
     classified at a grade, level, or rank designation, as the 
     case may be, at or above those of a majority of the senior 
     level executives of that designated Federal entity (such as a 
     General Counsel, Chief Information Officer, Chief Financial 
     Officer, Chief Human Capital Officer, or Chief Acquisition 
     Officer). The pay of an Inspector General of a designated 
     Federal entity (as those terms are defined under section 8G 
     of the Inspector General Act of 1978 (5 U.S.C. App.)) shall 
     be not less than the average total compensation of the senior 
     level executives of that designated Federal entity.
       (c) Savings Provision for Newly Appointed Inspectors 
     General.--The provisions of section 3392 of title 5, United 
     States Code, other than the terms ``performance awards'' and 
     ``awarding of ranks'' in subsection (c)(1) of such section, 
     shall apply to career appointees of the Senior Executive 
     Service who are appointed to the position of Inspector 
     General.
       (d) Savings Provision.--Nothing in this section shall have 
     the effect of reducing the rate of pay of any individual 
     serving on the date of enactment of this section as an 
     Inspector General of--
       (1) an establishment as defined under section 11(2) of the 
     Inspector General Act of 1978 (5 U.S.C. App.);
       (2) a designated Federal entity as defined under section 
     8G(2) of the Inspector General Act of 1978 (5 U.S.C. App.);
       (3) a legislative agency; or
       (4) any other entity of the Government.

     SEC. 5. PROHIBITION OF CASH BONUS OR AWARDS.

       Section 3 of the Inspector General Act of 1978 (5 U.S.C. 
     App.) (as amended by section 4 of this Act) is further 
     amended by adding at the end the following:
       ``(f) 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.''.

     SEC. 6. SEPARATE COUNSEL TO SUPPORT INSPECTORS GENERAL.

       (a) Counsels to Inspectors General of Establishment.--
     Section 3 of the Inspector General Act of 1978 (5 U.S.C. 
     App.) (as amended by sections 4 and 5 of this Act) is further 
     amended by adding at the end the following:
       ``(g) Each Inspector General shall, in accordance with 
     applicable laws and regulations governing the civil service, 
     obtain legal advice from a counsel either reporting directly 
     to the Inspector General or another Inspector General.''.
       (b) 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 
     or obtain the services

[[Page 30549]]

     of a counsel appointed by and directly reporting to another 
     Inspector General or the Council of the Inspectors General on 
     Integrity and Efficiency on a reimbursable basis.''.

     SEC. 7. 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 
     as sections 12 and 13, respectively, and by inserting after 
     section 10 the following:

     ``SEC. 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 Council of 
     the Inspectors General on Integrity and Efficiency (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 Office of the Director 
     of National Intelligence and the Central Intelligence Agency.
       ``(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.
       ``(I) The Office of Inspectors General of the Library of 
     Congress, Capitol Police, and the Government Printing Office.
       ``(J) Any other members designated by the President.
       ``(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 1 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 2 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 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 
     assists the Council in performing its functions.
       ``(B) Chairperson.--The Chairperson shall--
       ``(i) convene meetings of the Council--

       ``(I) at least 6 times each year;
       ``(II) monthly to the extent possible; and
       ``(III) more frequently at the discretion of the 
     Chairperson;

       ``(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 
     paragraph (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, governmentwide 
     activities that address these problems and promote economy 
     and efficiency in Federal programs and operations, including 
     interagency and interentity 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 website and other electronic 
     systems for the benefit of all Inspectors General, as the 
     Council determines are necessary or desirable;
       ``(E) maintain 1 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);
       ``(G) make such reports to Congress as the Chairperson 
     determines are necessary or appropriate; and
       ``(H) perform other duties within the authority and 
     jurisdiction of the Council, as appropriate.
       ``(2) Adherence and participation by members.--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, each member of the Council shall adhere to 
     professional standards developed by the Council and 
     participate in the plans, programs, and projects of the 
     Council, as appropriate.
       ``(3) Additional administrative authorities.--
       ``(A) Interagency funding.--Notwithstanding section 1532 of 
     title 31, United States Code, or any other provision of law 
     prohibiting the interagency funding of activities described 
     under subclause (I) or (II) of clause (i), in the performance 
     of the responsibilities, authorities, and duties of the 
     Council--
       ``(i) the Executive Chairperson may authorize the use of 
     interagency funding for--

       ``(I) Governmentwide training of employees of the Offices 
     of the Inspectors General;
       ``(II) the functions of the Integrity Committee of the 
     Council; and
       ``(III) any other authorized purpose determined by the 
     Council; and

       ``(ii) upon the authorization of the Executive Chairperson, 
     any department, agency, or entity of the United States 
     Government shall fund or participate in the funding of such 
     activities.
       ``(B) Superseding provisions.--No provision of law enacted 
     after the date of enactment of this subsection shall be 
     construed to limit or supersede the authority under paragraph 
     (1), unless such provision makes specific reference to the 
     authority in that paragraph.
       ``(4) Existing authorities and responsibilities.--The 
     establishment and operation of the Council shall not affect--
       ``(A) the role of the Department of Justice in law 
     enforcement and litigation;
       ``(B) the authority or responsibilities of any Government 
     agency or entity; and
       ``(C) 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) Three 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 the office of that Inspector General, if--

[[Page 30550]]

       ``(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) Definition.--In this paragraph 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 the Integrity 
     Committee receives against an Inspector General, or against 
     an employee of an Office of Inspector General;
       ``(B) refer any allegation of wrongdoing to the agency of 
     the executive branch with appropriate jurisdiction over the 
     matter; and
       ``(C) refer to the Chairperson of the Integrity Committee 
     any allegation of wrongdoing determined by the Integrity 
     Committee to be potentially meritorious that cannot be 
     referred to an agency under subparagraph (B).
       ``(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)(C) 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 under 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.--
       ``(i) Establishment.--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.

       ``(ii) Submission to congress.--The Council shall submit a 
     copy of the policies and procedures established under clause 
     (i) to the congressional committees of jurisdiction.
       ``(C) Reports.--
       ``(i) Potentially meritorious allegations.--For allegations 
     referred to under paragraph (5)(C), the Chairperson of the 
     Integrity Committee shall make a report containing the 
     results of the investigation of the Chairperson and shall 
     provide such report to members of the Integrity Committee.
       ``(ii) Allegations of wrongdoing.--For allegations referred 
     to under paragraph (5)(B), the head of an agency shall make a 
     report containing the results of the investigation and shall 
     provide such report to members of the Integrity Committee.
       ``(8) Assessment and final disposition.--
       ``(A) In general.--With respect to any report received 
     under paragraph (7)(C), the Integrity Committee shall--
       ``(i) assess the report;
       ``(ii) forward the report, with the recommendations of the 
     Integrity Committee, including those on disciplinary action, 
     within 180 days (to the maximum extent practicable) after the 
     completion of the investigation, to the Executive Chairperson 
     of the Council and to the President (in the case of a report 
     relating to an Inspector General of an establishment or any 
     employee of that Inspector General) or the head of a 
     designated Federal entity (in the case of a report relating 
     to an Inspector General of such an entity or any employee of 
     that Inspector General) for resolution; and
       ``(iii) submit to the congressional committees of 
     jurisdiction an executive summary of such report and 
     recommendations within 30 days after the submission of such 
     report to the Executive Chairperson under clause (ii).
       ``(B) Disposition.--The Executive Chairperson of the 
     Council shall report to the Integrity Committee the final 
     disposition of the matter, including what action was taken by 
     the President or agency head.
       ``(9) Annual report.--The Council shall submit to Congress 
     and the President by December 31 of each year a report on the 
     activities of the Integrity Committee during the preceding 
     fiscal year, which shall include the following:
       ``(A) The number of allegations received.
       ``(B) The number of allegations referred to other agencies, 
     including the number of allegations referred for criminal 
     investigation.
       ``(C) The number of allegations referred to the Chairperson 
     of the Integrity Committee for investigation.
       ``(D) The number of allegations closed without referral.
       ``(E) The date each allegation was received and the date 
     each allegation was finally disposed of.
       ``(F) In the case of allegations referred to the 
     Chairperson of the Integrity Committee, a summary of the 
     status of the investigation of the allegations and, in the 
     case of investigations completed during the preceding fiscal 
     year, a summary of the findings of the investigations.
       ``(G) Other matters that the Council considers appropriate.
       ``(10) Requests for more information.--With respect to 
     paragraphs (8) and (9), the Council shall provide more 
     detailed information about specific allegations upon request 
     from any of the following:
       ``(A) The chairperson or ranking member of the Committee on 
     Homeland Security and Governmental Affairs of the Senate.
       ``(B) The chairperson or ranking member of the Committee on 
     Oversight and Government Reform of the House of 
     Representatives.
       ``(C) The chairperson or ranking member of the 
     congressional committees of jurisdiction.
       ``(11) 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.''.
       (b) Existing Executive Orders.--Executive Order 12805, 
     dated May 11, 1992, and Executive Order 12993, dated March 
     21, 1996, shall have no force or effect.
       (c) Technical and 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) Separate appropriations account.--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 Council of the Inspectors General on Integrity and 
     Efficiency, and, included in that account, a separate 
     statement of the aggregate amount of appropriations requested 
     for each academy maintained by the Council of the Inspectors 
     General on Integrity and Efficiency.''.

     SEC. 8. 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 shall 
     transmit a budget estimate and request to the head of the 
     agency, board, or commission to which the Inspector General 
     reports. The budget request shall specify the aggregate 
     amount of funds requested for such fiscal year for the 
     operations of that Inspector General and shall specify the 
     amount requested for all training requirements, including a 
     certification from the Inspector General that the amount 
     requested satisfies all training requirements for the 
     Inspector General's office for that fiscal year, and any 
     resources necessary to support the Council of the Inspectors 
     General on Integrity and Efficiency. Resources necessary to 
     support the Council of the Inspectors General on Integrity 
     and Efficiency shall be specifically identified and justified 
     in the budget request.
       ``(2) In transmitting a proposed budget to the President 
     for approval, the head of each agency, board or commission 
     shall include--
       ``(A) an aggregate request for the Inspector General;
       ``(B) amounts for Inspector General training;
       ``(C) amounts for support of the Council of the Inspectors 
     General on Integrity and Efficiency; and
       ``(D) any comments of the affected Inspector General with 
     respect to the proposal.
       ``(3) The President shall include in each budget of the 
     United States Government submitted to Congress--
       ``(A) a separate statement of the budget estimate prepared 
     in accordance with paragraph (1);
       ``(B) the amount requested by the President for each 
     Inspector General;
       ``(C) training of Inspectors General;
       ``(D) support for the Council of the Inspectors General on 
     Integrity and Efficiency; and

[[Page 30551]]

       ``(E) any comments of the affected Inspector General with 
     respect to the proposal, including whether the budget request 
     submitted by the head of the establishment would 
     substantially inhibit the Inspector General from performing 
     the duties of the office.''.

     SEC. 9. 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''.

     SEC. 10. PROGRAM FRAUD CIVIL REMEDIES ACT.

       Section 3801(a)(1) of title 31, United States Code, is 
     amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by adding ``and'' after the 
     semicolon; and
       (3) 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).''.

     SEC. 11. 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.''.

     SEC. 12. 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''.

     SEC. 13. 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) in accordance with section 552a of title 5, United 
     States Code (commonly referred to as the Privacy Act), not 
     later than 3 working days after any report or audit (or 
     portion of any report or audit), that is subject to release 
     under section 552 of that title (commonly referred to as the 
     Freedom of Information Act), 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 and downloadable; and
       (II) facilitates printing by individuals of the public 
     accessing the website.

       (2) Reporting of fraud, waste, 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 fraud, waste, and abuse. Individuals 
     reporting fraud, waste, or abuse using the direct link 
     established under this paragraph shall not be required to 
     provide personally identifying information relating to that 
     individual.
       (B) Anonymity.--The Inspector General of each agency shall 
     not disclose the identity of any individual making a report 
     under this paragraph without the consent of the individual 
     unless the Inspector General determines that such a 
     disclosure is unavoidable during the course of the 
     investigation.
       (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.

     SEC. 14. INVESTIGATIONS OF DEPARTMENT OF JUSTICE PERSONNEL.

       (a) Amendment to Requirement Relating to Certain 
     Referrals.--Section 8E(b) of the Inspector General Act of 
     1978 (5 U.S.C. App.) is amended by striking paragraph (3).
       (b) Technical and Conforming Amendments.--Section 8E of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is further 
     amended--
       (1) in subsection (b)--
       (A) by striking ``and paragraph (3)'' in paragraph (2);
       (B) by redesignating paragraph (4) as paragraph (3); and
       (C) by redesignating paragraph (5) as paragraph (4) and in 
     that paragraph by striking ``(4)'' and inserting ``(3)''; and
       (2) in subsection (d), by striking ``, except with respect 
     to allegations described in subsection (b)(3),''.

     SEC. 15. OTHER ADMINISTRATIVE AUTHORITIES.

       (a) In General.--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, 8344, 8414, 8468, 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) Authority of Treasury Inspector General for Tax 
     Administration to Protect Internal Revenue Service 
     Employees.--Section 8D(k)(1)(C) of the Inspector General Act 
     of 1978 (5 U.S.C. App.) is amended by striking ``and the 
     providing of physical security''.

     SEC. 16. GOVERNMENT ACCOUNTABILITY OFFICE REPORTS.

       (a) In General.--
       (1) Submission.--Not later than 360 days after the date of 
     enactment of this Act, the Government Accountability Office 
     shall submit a report examining the adequacy of mechanisms to 
     ensure accountability of the Offices of Inspector General 
     to--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (B) the Committee on Government Reform of the House of 
     Representatives.
       (2) Contents.--The report submitted under paragraph (1) 
     shall examine--
       (A) the practices, policies, and procedures of the 
     Integrity Committee of the Council of the Inspectors General 
     on Integrity and Efficiency (and its predecessor committee); 
     and
       (B) the practices, policies, and procedures of the Offices 
     of Inspector General with respect to complaints by and about 
     employees of any Office of Inspector General that are not 
     within the jurisdiction of the Integrity Committee.
       (b) Pay of Inspectors General.--Not later than 270 days 
     after the date of enactment of this Act, the Government 
     Accountability Office shall submit a report to the 
     congressional committees of jurisdiction on the 
     implementation of section 4.

  Ms. COLLINS. Mr. President. I am pleased to join my colleagues, 
Senators McCaskill, Lieberman, and Coburn, in introducing the Inspector 
General Reform Act of 2007, a bipartisan measure that will help detect 
and prevent fraud, waste, and abuse in government operations.
  This legislation is an important companion to S. 680, the 
Accountability in Government Contracting Act of 2007, which the Senate 
passed last night by unanimous consent. Indeed, many of the reforms in 
this bill were included in S. 680 in February, when I first introduced 
that legislation along with Senators Lieberman, Coleman, Carper, and 
McCaskill. At our Committee's markup of S. 680, I recommended that the 
provisions governing Inspectors General be removed from that bill so 
that we could work together to improve the effectiveness of our 
Nation's Inspectors General in a separate legislative vehicle. The 
legislation we introduce today reflects that collaboration and 
continues our Committee's strong, bipartisan efforts to improve the 
effectiveness of Government.
  Inspectors General are vital partners in Congress's effort to 
identify inefficient, ineffective, and improper Government programs. By 
leveraging the expertise and independence of Inspectors General and 
their staffs, Congress

[[Page 30552]]

has been able to identify, and take action to stop, wasteful spending.
  Examples of the IGs' invaluable work could be cited in depressingly 
large numbers, but let me note two efforts that I found particularly 
striking. In a 6-month period following the Hurricane Katrina disaster, 
the Department of Homeland Security's IG produced 29 reports that 
included alarming discoveries, including that 63 percent of the DHS 
purchase-card transactions made during the response had no 
documentation of goods or services actually being received. The DHS IG 
investigations helped produce 243 convictions for fraud or related 
offenses and aided in recovery of millions of taxpayer dollars.
  As you will recall, the impressive work of the Special Inspector 
General for Iraq Reconstruction led to Congress's extending SIGIR's 
work in that country. The SIGIR reported, among other things, that more 
than $9 billion in Iraqi oil revenues disbursed in 2004 could not be 
accounted for, that hundreds of contracts had problems, and that many 
projects to restore Iraq's water and electric services would not be 
completed. The SIGIR's work is estimated to yield taxpayers $25 of 
benefit for every dollar of cost.
  The investigations and reports of IGs throughout the government help 
Congress shape legislation and oversight activities--improving 
Government performance, providing important transparency into programs, 
and giving Americans better value for their tax dollar.
  Unfortunately, the past year has produced troubling instances in 
which the independence of Inspectors General has been challenged within 
their respective departments. We have also heard allegations of 
misconduct by some Inspectors General. These alarming examples of 
pressure and impropriety cannot be tolerated, and the legislation we 
introduce today is an important first step in clarifying congressional 
expectations concerning the independence, funding, training, and 
accountability of the Federal Government's Inspectors General.
  The Inspector General Reform Act of 2007 would improve the 
independence and effectiveness of Inspectors General and contribute to 
better relations among the IGs, the agencies they serve, and the 
Congress. These improvements will also help to insulate and protect 
Inspectors General from inappropriate efforts to hinder their 
investigations.
  First and foremost, the legislation provides a clear manifestation of 
how Congress believes IGs should be chosen. It amends the Inspector 
General Act of 1978 to explicitly require appointments on the basis of 
ability and integrity, not political affiliation.
  Additional enhancements included in the bill are a mandatory 
requirement to notify Congress 30 days before the removal of an IG, 
helping to prevent politically motivated attempts to terminate 
effective IGs.
  A separate budget line for Inspectors General that includes their 
overall budget and training needs, helping to ensure that these offices 
are properly funded to perform their important mission.
  A pay increase for IGs and a prohibition on cash bonuses or awards. 
Most IGs already refuse to accept bonuses to avoid an appearance of 
conflict, with the result that many deputies earn more than the IGs. 
This provision will improve an IG's influence and independence within 
an agency while avoiding the appearance of improper influence that 
bonuses can create.
  Authorization for the Government-wide IG Council on Integrity and 
Efficiency that will ensure appropriate investigations of misconduct or 
malfeasance by IGs. And finally,
  Clarification that the IGs' subpoena authority extends to electronic 
documents.
  The oversight experience of the Homeland Security and Governmental 
Affairs Committee and many reviews by the Government Accountability 
Office have confirmed the vital importance of the Inspector General 
function in our system of Government. By addressing identified 
shortcomings and further insulating IGs from inappropriate influence, 
the legislation we introduce today will make a critical function of 
Government even more effective. I urge my colleagues to support its 
prompt consideration and passage.
  Mr. LIEBERMAN. Mr. President, I am proud to join my colleagues 
Senators McCaskill, Collins, and Coburn today in introducing the 
Inspector General Reform Act of 2007. This bipartisan bill reflects the 
broad Congressional support for the outstanding work of our Inspectors 
General and our desire to ensure that these important and unique 
government officials are given the tools and the accountability to 
perform at their very best.
  It has been almost 30 years since Congress, as part of its post-
Watergate reforms, passed the Inspectors General Act of 1978 that 
created an office of Inspector General in 12 major departments and 
agencies to hold those agencies accountable to the public interest and 
report back both to the agency heads and Congress on their findings. 
The law was amended in 1988 to add an Inspector General to almost all 
Executive agencies and departments.
  The experiment has been a great success, hailed as a sort of consumer 
protector for the taxpayer deep within each agency. According to the 
President's Council on Integrity and Efficiency, last year alone IG 
audits resulted in $9.9 billion in potential savings and another $6.8 
billion in savings when the results of civil and criminal 
investigations are added in.
  Some of the IGs' work lands on the front page--exposing major 
shortcomings in government practices and official conduct. Most of it 
unfolds more quietly, but is just as critical in helping Federal 
agencies establish effective and efficient programs that make the most 
of the taxpayers' hard earned dollars.
  Over the years, we have become aware of several instances where the 
independence of Inspectors General appears to be threatened. It is 
vital that Congress reiterate its strong support for the internal 
oversight IGs can provide and ensure they have the independence they 
need to carry out this vital, but often unpopular work.
  Unfortunately, we are also aware of instances in which the watchdog 
needs watching--that is, situations where the Inspector General has 
behaved improperly or failed to provide vigorous oversight.
  This legislation attempts to address both problems.
  It includes an array of measures designed to strengthen the 
independence of the Inspectors General, such as requiring the 
administration to notify Congress 30 days before attempting to remove 
or transfer an IG. This would give us time to consider whether the 
administration was improperly seeking to displace an Inspector General 
for political reasons because the IG was, in effect, doing his or her 
job too well. It requires that all IGs be chosen on the basis of 
qualifications, without regard to political affiliation.
  The legislation would codify and strengthen the existing IG councils, 
creating a unitary council that can provide greater support for IGs 
throughout the Government.
  The bill would provide greater transparency of IG budget needs, 
including funds for training and council activities, to help ensure the 
IG offices have the resources they need for their investigations.
  Most IGs would also receive a pay raise, to reflect the importance of 
the work they do and their proper stature within an agency. Currently, 
some IGs earn less than other senior officials in their agency and 
sometimes even less than some of their subordinates. However, we also 
prohibit bonuses for IGs, to remove a potential avenue for improper 
influence by the agency head.
  Our bill also enhances IG accountability by strengthening the 
Integrity Committee that handles allegations against Inspectors General 
and their senior staff, and facilitating greater oversight of Integrity 
Committee by Congress.
  The bill also ensures that the Inspector General of the Justice 
Department will have the authority, shared by other IGs, to investigate 
misconduct of any Departmental employee.
  The House has already voted overwhelmingly in support of legislation

[[Page 30553]]

addressing many of these same issues. It is time for the Senate to 
follow suit. I urge my colleagues to support this worthy and common 
sense piece of legislation.
                                 ______
                                 
      By Mr. WARNER (for himself and Mr. Webb):
  S. 2331. A bill to exclude from gross income payments from the Hokie 
Spirit Memorial Fund to the victims of the tragic event, loss of life 
and limb, at Virginia Polytechnic Institute & State University; to the 
Committee on Finance.
  Mr. WARNER. Mr. President, today I introduce legislation that will, I 
hope, help provide some measure of assistance to those family members 
who lost loved ones and to those who suffered wounds as a consequence 
of the horrific shootings that took place on April 16, 2007, on the 
campus of Virginia Tech. I am pleased to have my colleague from 
Virginia, Senator Webb, as a cosponsor of this legislation.
  In the aftermath of that tragic day, where 32 lives of promise were 
forever cut short, over 20,000 individuals and groups across the 
country demonstrated their support for the victims and their families 
with generous financial donations that totaled approximately $7.5 
million. Virginia Tech established the Hokie Spirit Memorial Fund 
within the Virginia Tech Foundation to accept these charitable 
contributions. The Hokie Spirit Fund distribution plan offers families 
of the 32 individuals who lost their lives a choice of receiving 
proceeds from the Fund or dividing those proceeds between a cash 
payment and a scholarship in the victim's name. Injured victims are 
also eligible for Fund proceeds. On October 30, 2007, the University 
officially distributed these funds to the 79 families and individuals 
in accordance with the protocols established. While no amount of money 
can truly compensate for the loss of life or limb, these payments 
provide both the families of the deceased and the injured survivors 
with some financial resources to help, in some modest way.
  Unfortunately, Federal law is not clear as to whether these payments 
are subject to Federal taxation. In my view, not only does precedent 
indicate that these types of payments should be free of Federal income 
tax, common sense concurs. Accordingly, the legislation that Senator 
Webb and I introduce today makes it clear that any payments by Virginia 
Tech from the Hokie Spirit Fund in conjunction with the April 16, 2007, 
shooting at Virginia Tech should not be taxable for Federal purposes.
  It is my hope that the Congress will expeditiously pass this 
important legislation. I ask for unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2331

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

     SECTION 1. EXCLUSION FROM INCOME FOR PAYMENTS FROM THE HOKIE 
                   SPIRIT MEMORIAL FUND.

       For purposes of the Internal Revenue Code of 1986, gross 
     income shall not include any amount received from the 
     Virginia Polytechnic Institute & State University, out of 
     amounts transferred from the Hokie Spirit Memorial Fund 
     established by the Virginia Tech Foundation, an organization 
     organized and operated as described in section 501(c)(3) of 
     the Internal Revenue Code of 1986, as a payment in connection 
     with the tragic event, loss of life and limb, on April 16, 
     2007, at such university.
                                 ______
                                 
      By Mr. DORGAN (for himself, Mr. Lott, Mr. Obama, Ms. Snowe, Mr. 
        Kerry, Mr. Nelson of Florida, Ms. Cantwell, Mrs. Feinstein, Mr. 
        Biden, and Mrs. Clinton):
  S. 2332. A bill to promote transparency in the adoption of new media 
ownership rules by the Federal Communications Commission, and to 
establish an independent panel to make recommendations on how to 
increase the representation of women and minorities in broadcast media 
ownership; to the Committee on Commerce, Science, and Transportation.
  Mr. DORGAN. Mr. President, today I am introducing the Media Ownership 
Act of 2007, along with Senators Lott, Obama, Snowe, Kerry, Nelson of 
Florida, Cantwell, and Feinstein. We seek with this bill to halt the 
Federal Communications Commission's, FCC, fast march toward easing 
media ownership rules.
  The FCC has taken a series of destructive actions in the past two 
decades that, I believe, have undermined the public interest. Now they 
appear prepared to do it again. The FCC is working to have a rewrite of 
media ownership rules completed just next month. Now this seems like a 
massive rush to me and a big mistake. How will the public interest be 
served by attempting to rush through a plan to relax ownership rules?
  We don't need more concentration of ownership in radio and television 
stations and a green light for cross ownership between newspapers, 
radio and television stations. Further consolidation of media ownership 
at all is an affront to common sense. But even if we disagree with the 
rules the FCC issues, and even if we think the FCC should break up the 
big media companies rather than allow them to consolidate, the FCC must 
go through an honest and thorough process. They must study the 
questions that affect a decision of whether to adjust ownership limits. 
They have not done this. They have not put the final rules out for 
comment for a meaningful amount of time, they have not given the 
necessary consideration to the issue of localism, and they do not know 
enough about the impact of consolidation on localism or female and 
minority ownership.
  The Media Ownership Act of 2007 ensures that the FCC allow enough 
time for comment on the actual rule changes. It requires that the FCC 
put out the final rules proposed by the Commission for 90 days of 
comment.
  The bill also requires that the FCC complete a separate proceeding on 
the promotion of local programming and content by broadcasters and 
newspapers. In 2003, Chairman Powell set up a task force to promote 
localism in broadcasting and they began some hearings and took in 
comments. Chairman Martin has wrapped those comments into this 
ownership proceeding and is finishing the last localism hearing as part 
of this rushed schedule. The bill requires that they must publish a 
final rule in a separate proceeding and allow 90 days of comment. This 
must be completed prior to the vote on ownership.
  The bill requires that the FCC establish an Independent Panel on 
Ownership by Women and Minorities. The FCC must collect and provide 
this panel with data on the specific gender and ethnic makeup of media 
owners. The panel shall issue recommendations and the FCC must act on 
these recommendations prior to a vote on media ownership.
  The last time the FCC tried to do rush to consolidate media 
ownership, the United States Senate voted to block it. On September 16, 
2003, the Senate voted 55-40 to support a ``resolution of disapproval'' 
of the FCC's previous decision to allow further concentration. If we 
have to do this again we will. A number of us have sent numerous 
letters to the FCC stating what needs to be done prior to a vote on 
media ownership limits and yet the Chairman is on track to move this 
proceeding to a vote. The FCC is clearly not listening and legislation 
is now necessary.
  This is again a bipartisan effort to stop the FCC from destroying the 
local interests that we have always felt must be a part of 
broadcasting.
  It is time to ensure that we first protect localism and diversity, 
which the FCC appears to have long forgotten. Only then can we really 
review the rules of media ownership in a thorough process to see if it 
is actually in the public interest to reverse any of those rules, or if 
greater public interest protections are necessary.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

[[Page 30554]]



                                S. 2332

       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 ``Media Ownership Act of 
     2007''.

     SEC. 2. MEDIA OWNERSHIP REFORMS.

       Section 202 of the Telecommunications Act of 1996 (Public 
     Law 104-104; 110 Stat. 110) is amended by--
       (1) redesignating subsection (i) as subsection (l); and
       (2) by inserting after subsection (h) the following:
       ``(i) Notice and Public Comment Requirement.--
       ``(1) In general.--In modifying, revising, or amending any 
     of its regulations related to broadcast ownership, including 
     any ownership rule or limitation set forth under sections 
     73.3555, 73.658(g), or 76.501 of its regulations (47 C.F.R. 
     73.3555, 73.658(g), 76.501), the Commission shall--
       ``(A) not later than 90 days prior to any vote by the 
     Commission on the adoption of such modification, revision, or 
     amendment publish such prospective modification, revision, or 
     amendment in the Federal Register;
       ``(B) after such publication provide the public at least 60 
     days on which to comment on the prospective modification, 
     revision, or amendment; and
       ``(C) upon the expiration of the 60-day comment period 
     described under paragraph (2), have not less than 30 days in 
     which to reply to any such comments.
       ``(2) Effective date.--
       ``(A) In general.--The notice and public requirements under 
     paragraph (1) shall apply to any attempt by the Commission to 
     modify, revise, or amend its regulations related to broadcast 
     and newspaper ownership made after October 1, 2007.
       ``(B) Failure to comply.--If the Commission fails to comply 
     with the notice and public requirements under paragraph (1) 
     with respect to any modification, revision, or amendment to 
     which such requirements apply, then such modification, 
     revision, or amendment shall be vitiated and shall be of no 
     force and effect.
       ``(j) Promotion of Local Content in Media.--Before voting 
     on any change in the broadcast and newspaper ownership rules, 
     the Commission shall initiate, conduct, and complete a 
     separate rulemaking proceeding to promote the broadcast of 
     local programming and content by broadcasters, including 
     radio and television broadcast stations, and newspapers. 
     Before issuing a final rule, the Commission shall--
       ``(1) conduct a study to determine the overall impact of 
     television station duopolies and newspaper-broadcast cross-
     ownership on the quantity and quality of local news, public 
     affairs, local news media jobs, and local cultural 
     programming at the market level;
       ``(2) publish a proposed final rule in the Federal Register 
     not later than 90 days prior to any vote by the Commission on 
     the adoption of the rule;
       ``(3) after such publication provide the public at least 60 
     days on which to comment on the prospective rule; and
       ``(4) upon the expiration of the 60-day comment period 
     described in paragraph (3), have not less than 30 days in 
     which to reply to any such comments.
       ``(k) Independent Panel on Women and Minority Ownership of 
     Broadcast Media.--
       ``(1) Establishment.--The Commission shall establish and 
     convene an independent panel on women and minority ownership 
     of broadcast media to make recommendations to the Commission 
     for specific Commission rules to increase the representation 
     of women and minorities in the ownership of broadcast media.
       ``(2) Census.--The Commission shall--
       ``(A) conduct a full and accurate census of the race and 
     gender of individuals holding a controlling interest in 
     broadcast station licensee;
       ``(B) provide the results of the census to the panel for 
     its consideration before it makes any recommendation to the 
     Commission; and
       ``(C) study the impact of media market concentration on the 
     representation of women and minorities in the ownership of 
     broadcast media based on the data in the census and report 
     the results of that study to the panel for its consideration 
     before it makes any recommendation to the Commission.
       ``(3) Consideration of panel's recommendations.--The 
     Commission shall act on the panel's recommendations before 
     voting on any changes to its broadcast and newspaper 
     ownership rules.''.

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