[House Report 104-745]
[From the U.S. Government Publishing Office]




                                                 Union Calendar No. 391

104th Congress, 2nd Session -  -  -  -  -  -  -  - House Report 104-745

 
              LAWS RELATED TO FEDERAL FINANCIAL MANAGEMENT

                  As Amended Through December 31, 1995

                               ----------                              

                              NINTH REPORT

                                 by the

                        COMMITTEE ON GOVERNMENT
                          REFORM AND OVERSIGHT


                                     


                                     


 August 2, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



              LAWS RELATED TO FEDERAL FINANCIAL MANAGEMENT

                  As Amended Through December 31, 1995
                                     

                                     

                                                 Union Calendar No. 391

104th Congress, 2nd Session -  -  -  -  -  -  -  - House Report 104-745

              LAWS RELATED TO FEDERAL FINANCIAL MANAGEMENT

                  As Amended Through December 31, 1995

                               __________

                              NINTH REPORT

                                 by the

                        COMMITTEE ON GOVERNMENT
                          REFORM AND OVERSIGHT


                                     




 August 2, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


              COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT

     WILLIAM F. CLINGER, Jr., 
      Pennsylvania, Chairman
CARDISS COLLINS, Illinois            BENJAMIN A. GILMAN, New York
HENRY A. WAXMAN, California          DAN BURTON, Indiana
TOM LANTOS, California               J. DENNIS HASTERT, Illinois
ROBERT E. WISE, Jr., West Virginia   CONSTANCE A. MORELLA, Maryland
MAJOR R. OWENS, New York             CHRISTOPHER SHAYS, Connecticut
EDOLPHUS TOWNS, New York             STEVEN SCHIFF, New Mexico
JOHN M. SPRATT, Jr., South Carolina  ILEANA ROS-LEHTINEN, Florida
LOUISE McINTOSH SLAUGHTER, New       WILLIAM H. ZELIFF, Jr., New 
  York                               Hampshire
PAUL E. KANJORSKI, Pennsylvania      JOHN M. McHUGH, New York
GARY A. CONDIT, California           STEPHEN HORN, California
COLLIN C. PETERSON, Minnesota        JOHN L. MICA, Florida
KAREN L. THURMAN, Florida            PETER BLUTE, Massachusetts
CAROLYN B. MALONEY, New York         THOMAS M. DAVIS, Virginia
THOMAS M. BARRETT, Wisconsin         DAVID M. McINTOSH, Indiana
BARBARA-ROSE COLLINS, Michigan       JON D. FOX, Pennsylvania
ELEANOR HOLMES NORTON, District of   RANDY TATE, Washington
  Columbia                           DICK CHRYSLER, Michigan
JAMES P. MORAN, Virginia             GIL GUTKNECHT, Minnesota
GENE GREEN, Texas                    MARK E. SOUDER, Indiana
CARRIE P. MEEK, Florida              WILLIAM J. MARTINI, New Jersey
CHAKA FATTAH, Pennsylvania           JOE SCARBOROUGH, Florida
BILL K. BREWSTER, Oklahoma           JOHN B. SHADEGG, Arizona
TIM HOLDEN, Pennsylvania             MICHAEL PATRICK FLANAGAN, Illinois
ELIJAH CUMMINGS, Maryland            CHARLES F. BASS, New Hampshire
            ------                   STEVE C. LaTOURETTE, Ohio
BERNARD SANDERS, Vermont             MARSHALL ``MARK'' SANFORD, South
  (Independent)                        Carolina
                                     ROBERT L. EHRLICH, Jr., Maryland
  James L. Clarke, Staff Director
    Kevin Sabo, General Counsel
     Judith McCoy, Chief Clerk
Bud Myers, Minority Staff Director


                         LETTER OF TRANSMITTAL

                              ----------                              

                                  House of Representatives,
                                    Washington, DC, August 2, 1996.
Hon. Newt Gingrich,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: By direction of the Committee on 
Government Reform and Oversight, I submit herewith the 
committee's ninth report to the 104th Congress.

                                   William F. Clinger, Jr.,
                                                          Chairman.

                                     


                                PREFACE

    The Committee on Government Reform and Oversight has long 
believed that effective financial management is critically 
important to making the best decisions on the use of public 
resources in the support of the security and well-being of the 
American people.
    To assist it in fulfilling oversight responsibilities, the 
committee has prepared this compilation of laws on financial 
management, with references to related requirements and 
guidelines issued by Federal agencies. This compilation is 
being released as an investigative report to serve as a 
reference guide in assisting the committee members and staff in 
their work. However, it should also prove useful to our 
congressional colleagues and staff, Government entities, and 
others interested in good stewardship of Federal resources.
    The committee appreciates the assistance of Jeffrey C. 
Steinhoff and Bruce K. Michelson, of the General Accounting 
Office, and Kevin Sabo, the committee's General Counsel, for 
their efforts in preparing this investigative report.

                                     


                          SUMMARY OF CONTENTS

                              ----------                              
                                                                   Page
Preface..........................................................     v
Introduction.....................................................     3
Title 31, United States Code--Money and Finance (selected 
  provisions)....................................................     5
Title 1, United States Code--General Provisions (selected 
  provisions)....................................................   213
Title 2, United States Code--The Congress (selected provisions)..   217
Title 5, United States Code--Government Organization and 
  Employees (selected provisions)................................   325
Title 15, United States Code--Commerce and Trade (selected 
  provisions)....................................................   373
Title 39, United States Code--Postal Service (selected 
  provisions)....................................................   389
Title 40, United States Code--Public Buildings, Property, and 
  Works (selected provisions)....................................   397
Title 41, United States Code--Public Contracts (selected 
  provisions)....................................................   403
Title 44, United States Code--Public Printing and Documents 
  (selected provisions)..........................................   417
Debt Collection Improvement Act of 1996..........................   425
Single Audit Act Amendments of 1996..............................   450
Major Laws on Financial Management (Original Laws)...............   461
Appendices relating to the United States Code and Code of Federal 
  Regulations....................................................   563
Appendices relating to issuances of the General Accounting 
  Office, the Office of Management and Budget, the Department of 
  the Treasury, the Joint Financial Management Improvement 
  Program, the Federal Accounting Standards Advisory Board, and 
  the Cost Accounting Standards Board............................   573
Appendices cross indexing federal financial management laws to 
  sections of the United States Code.............................   603
  


                            OVERALL CONTENTS

                              ----------                              
                                                                   Page
Preface..........................................................     v
Summary of Contents..............................................   vii
Overall Contents.................................................    ix
Abbreviations and Symbols........................................  xiii
Introduction.....................................................     3
Selected provisions of title 31, United States Code--Money and 
  Finance........................................................     5
    Table of sections............................................     7
    Chapter:
         1. Definitions (Sec. Sec. 101-103)......................    15
         3. Department of Treasury (Sec. Sec. 301-310, 321-331)..    16
         5. Office of Management and Budget (Sec. Sec. 501-506, 
            521-522).............................................    26
         7. General Accounting Office (Sec. Sec. 701-703, 711-
            720).................................................    39
         9. Agency Chief Financial Officers (Sec. Sec. 901-903)..    50
        11. The Budget and Fiscal, Budget, and Program 
            Information (Sec. Sec. 1101-1119)....................    54
        13. Appropriations (Sec. Sec. 1301-1310, 1321-1324, 1351-
            1353)................................................    71
        15. Appropriation Accounting (Sec. Sec. 1501-1503, 1511-
            1519, 1531-1537, 1551-1558)..........................    93
        31. Public Debt (Sec. Sec. 3101-3113, 3121-3130).........   108
        33. Depositing, Keeping, and Paying Money 
            (Sec. Sec. 3301-3305, 3321-3335, 3341-3343)..........   122
        35. Accounting and Collection (Sec. Sec. 3501, 3511-3515, 
            3521-3532, 3541-3545)................................   135
        37. Claims (Sec. Sec. 3701-3702, 3711-3720A, 3721-3733)..   152
        39. Prompt Payment (Sec. Sec. 3901-3907).................   189
        75. Requirements for Single Audits (Sec. Sec. 7501-7507).   200
        91. Government Corporations (Sec. 9101)..................   208
        97. Miscellaneous (Sec. Sec. 9701-9704)..................   209
Selected provisions of title 1, United States Code--General 
  Provisions.....................................................   213
    Table of sections............................................   215
    Chapter:
         2. Acts and Resolutions; Formalities of Enactment; 
            Repeals, Sealing of Instruments (Sec. 105)...........   216
Selected provisions of title 2, United States Code--the Congress.   217
    Table of sections............................................   219
    Chapter:
         6. Congressional and Committee Procedure; Investigations 
            (Sec. 190d)..........................................   221
        17. Congressional Budget Office (Sec. Sec. 601-603, 605-
            606).................................................   222
        17A. Congressional Budget and Fiscal Operations 
            (Sec. Sec. 621-623, 631-644, 651-656, 661, 661a-661f, 
            665, 665a-665e)......................................   229
        17B. Impoundment Control (Sec. Sec. 681-688).............   273
        20. Emergency Powers to Eliminate Budget Deficits 
            (Sec. Sec. 900-902, 904-907, 907a-907d, 908).........   281
Selected provisions of title 5, United States Code--Government 
  Organization and Employees.....................................   325
    Table of sections............................................   327
    Chapter:
        1. Organization (Sec. Sec. 101-103)......................   328
        3. Powers (Sec. 306).....................................   329
        5. Administrative Procedure (Sec. Sec. 551, 552a)........   331
        Appendix 3. Inspector General Act of 1978 (Sec. Sec. 1-
            12)..................................................   350
Selected provisions of title 15, United States Code--Commerce and 
  Trade..........................................................   373
    Table of sections............................................   375
    Chapter:
        14A. Aid to Small Business (Sec. 644)....................   376
        21. National Policy on Employment and Productivity 
            (Sec. 1022)..........................................   386
Selected provisions of title 39, United States Code--Postal 
  Service........................................................   389
    Table of sections............................................   391
    Chapter:
        28. Strategic Planning and Performance Management 
            (Sec. Sec. 2801-2805)................................   392
Selected provisions of title 40, United States Code--Public 
  Buildings, Property, and Works.................................   397
    Table of sections............................................   399
    Chapter:
        10. Management and Disposal of Goverment Property 
            (Sec. 472)...........................................   400
Selected provisions of title 41, United States Code--Public 
  Contracts......................................................   403
    Table of sections............................................   405
    Chapter:
        1. General Provisions (Sec. Sec. 5a,11)..................   406
        7. Office of Federal Procurement Policy (Sec. 422).......   407
        9. Contract Disputes (Sec. Sec. 601, 605, 611)...........   412
Selected provisions of title 44, United States Code--Public 
  Printing and Documents.........................................   417
    Table of sections............................................   419
    Chapter:
        35. Coordination of Federal Information Policy 
            (Sec. 3502)..........................................   420
Debt Collection Improvement Act of 1996..........................   425
Single Audit Act Amendments of 1996..............................   450
Major Laws on Financial Management (Original Acts)...............   461
    Budget and Accounting Act of 1921............................   462
    Budget and Accounting Procedures Act of 1950.................   471
    Legislative Reorganization Act of 1970.......................   487
    Impoundment Control Act of 1974..............................   493
    Federal Managers' Financial Integrity Act of 1982............   502
    Debt Collection Act of 1982..................................   504
    Single Audit Act of 1984.....................................   514
    Chief Financial Officers Act of 1990.........................   523
    Cash Management Improvement Act of 1992......................   541
    Government Performance and Results Act of 1993...............   544
    Government Management Reform Act of 1994.....................   556
Appendices relating to the United States Code and Code of Federal 
  Regulations....................................................   563
    Appendix:
        I A Brief Explanation of the United States Code..........   563
        II A Brief Explanation of the Code of Federal Regulations   569
Appendices relating to issuances of the General Accounting 
  Office, the Office of Management and Budget, the Department of 
  the Treasury, the Joint Financial Management Improvement 
  Program, the Federal Accounting Standards Advisory Board, and 
  the Cost Accounting Standards Board............................   573
    Appendix:
        III Financial Management Issuances of the General 
            Accounting Office....................................   573
        IV Financial Management Issuances of the Office of 
            Management and Budget................................   579
        V Financial Management Issuances of the Department of the 
            Treasury.............................................   585
        VI The Joint Financial Management Improvement Program....   591
        VII The Federal Accounting Standards Advisory Board......   595
        VIII The Cost Accounting Standards Board.................   599
Appendixes cross indexing federal financial management laws to 
  sections of the United States Code.............................   603
    Appendix:
        IX Popular Names of Selected Major Laws Cross-Indexed to 
            Sections of the United States Code and Statute or 
            Public Law...........................................   603
        X Selected Laws Relating to Federal Financial Management 
            by Statue or Public Law Number Indexed to Popular 
            Name.................................................   607
___________________________________________________________
            .....................................................
Notes Contained in Sections of the Code:
    31 U.S.C. 501................................................    30
    31 U.S.C. 1343...............................................    80
    31 U.S.C. 1535...............................................   100
    31 U.S.C. 1115...............................................    67
    31 U.S.C. 3701...............................................   153

    2 U.S.C. 621.................................................   229
    2 U.S.C. 632.................................................   238
    2 U.S.C. 665.................................................   268

    5 U.S.C. App. 3 & 5..........................................   356
  


                       ABBREVIATIONS AND SYMBOLS

CASB--Cost Accounting Standards Board
CBO--Congressional Budget Office
C.F.R.--Code of Federal Regulations
Code--United States Code
FASAB--Federal Accounting Standards Advisory Board
GAO--General Accounting Office
JFMIP--Joint Financial Management Improvement Program
OMB--Office of Management and Budget
PL--Public Law
Pub. L.--Public Law
sec.--section of the United States Code
stat.--statute
TFM--Treasury Financial Manual
U.S.C.--United States Code
U.S.C.A.--United States Code Annotated
Sec. --section of the United States Code
Sec. Sec. --more than one section of the United States Code
  
      
======================================================================


                              INTRODUCTION

======================================================================

      
                              Introduction

    This report contains the laws related to financial 
management in the federal government as of December 31, 1995, 
and also includes two financial management related laws passed 
during 1996, as explained below. The Print is intended as a 
guide for easy access to the codified laws and references to 
the related requirements and guidelines.
                  laws related to financial management
    The selected provisions of the Code,\1\ as of December 31, 
1995, contained in this report are mostly from Title 31, 
``Money and Finance.'' Title 31 is the primary title containing 
financial management matters. Also included, however, are 
selected sections containing financial management mandates from 
eight other titles. (See appendix I for a further explanation 
of the provisions of the Code included in this report.) Most 
sections of the Code contain supplemental notes providing 
further requirements or explanations. In several sections of 
the Code contained in this Print, notes are provided where 
necessary to assist in interpreting the meaning of the section. 
They are in italic print to differentiate them from the text of 
the Code.
---------------------------------------------------------------------------
    \1\ The information in this report comes from the United States 
Code Annotated (U.S.C.A.).
---------------------------------------------------------------------------
    In addition, the full text of the recently enacted Debt 
Collection Improvement Act of 1996, and the Single Audit Act 
Amendments of 1996 are not included in the Code as of December 
31, 1995, but are in this Print. Further, 11 major laws on 
financial management, though appearing in various parts of the 
Code in this Print, are also included separately as originally 
enacted.
       requirements and guidelines issued by agencies or entities
    The laws contained in this report are supplemented by 
references to selected requirements and guidelines issued by 
federal agencies. Where applicable, at the end of each chapter 
of the Code, the related selected references are cited. The 
citations are in italic print to differentiate them from the 
text of the Code.
    The references cited are from seven sources. The first 
source is the requirements contained in the ``Code of Federal 
Regulations'' (C.F.R.). The C.F.R. contains the rules issued by 
agencies and is further explained in appendix II. The next five 
sources are the financial management issuances other than those 
contained in the C.F.R. of the ``oversight'' agencies or 
entities. They are the:
    General Accounting Office (GAO) (see appendix III);
    Office of Management and Budget (OMB) (see appendix IV);
    Department of the Treasury (see appendix V);
    Joint Financial Management Improvement Program (JFMIP) (see 
appendix VI); and
    Federal Accounting Standards Advisory Board (FASAB) (see 
appendix VII).
    Each of these five appendices contains a short description 
of the role of the agency or entity and lists the applicable 
selected requirements and guidelines and, the related parts of 
the Code. Appendices III, IV, and V also contain a cross-index 
listing the section of the Code in sequential order followed by 
the applicable requirement or guideline. In addition, each of 
these five appendices include the address and telephone numbers 
of the agency or entity for use in obtaining information or 
acquiring copies of the applicable requirements and guidelines.
    The seventh source of financial management issuances is the 
Cost Accounting Standards Board (CASB). Appendix VIII provides 
a brief description of the CASB, its applicability to federal 
financial management, the related section of the Code 
pertaining to it, and portions of the C.F.R. containing the 
standards it issued. The address and telephone number of the 
CASB is provided if additional information is needed.
                            other appendices
    Appendices IX and X provide cross-indexes of important 
financial management laws by popular name and statute citation 
or public law (PL) number.
    Appendix IX lists the major laws by popular name with a 
corresponding reference to the U.S.C. citation and statute 
citation or PL number.\2\ Thus, by knowing only the popular 
name, such as the Chief Financial Officers Act of 1990, the 
user can identify the U.S.C. citations and the related statute 
or PL number. For example, the Chief Financial Officers Act of 
1990 will cross-index to several U.S.C. citations contained in 
this Print and PL 101-576.
---------------------------------------------------------------------------
    \2\ The Code citation contains all amendments to the law as of 
December 31, 1995, related to the sections of Code included in this 
Print.
---------------------------------------------------------------------------
    Appendix X lists the statute citation (if the law was 
enacted before 1957) or PL number in sequential order cross-
indexed to the popular name of the law. For example, PL 95-510 
will contain a cross-index to: ``Legislative Reorganization Act 
of 1970.''
                           table of contents
    In addition to the summary contents and the overall 
contents preceding this introduction, the selected provisions 
of each the nine Titles of the Code contained in this report 
will be preceded by a table listing the sections included from 
that title.
      
======================================================================


                    SELECTED PROVISIONS OF TITLE 31,

                          UNITED STATES CODE--

                           MONEY AND FINANCE

======================================================================

      
        Table of Sections of Selected Provisions of Title 31 \3\
---------------------------------------------------------------------------

    \3\ This table of sections is not part of Title 31 but is included 
for the convenience of the reader.
---------------------------------------------------------------------------
                              ----------                              


                      TITLE 31, UNITED STATES CODE

                           MONEY AND FINANCE

          * * * * * * *

                          SUBTITLE I--GENERAL

                         CHAPTER 1--DEFINITIONS
Sec.
101.  Agency.
102.  Executive Agency.
103.  United States.
                 CHAPTER 3--DEPARTMENT OF THE TREASURY
                       Subchapter I--Organization
Sec.
301.  Department of the Treasury.
302.  Treasury of the United States.
303.  Bureau of Engraving and Printing.
304.  United States Mint.
305.  Federal Financing Bank.
306.  Fiscal Service.
307.  Office of the Comptroller of the Currency.
308.  United States Customs Service.
309.  Office of Thrift Supervision.
310.  Continuing in office.
321.  General authority of the Secretary.
322.  Working capital fund.
323.  Investment of operating cash.
324.  Disposing and extending the maturity of obligations.
325.  International affairs authorization.
326.  Availability of appropriations for certain expenses.
327.  Advancements and reimbursements for services.
328.  Accounts and payments of former disbursing officials.
329.  Limitations on outside activities.
330.  Practice before the Department.
331.  Reports.
               CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET
                       Subchapter I--Organization
Sec.
501.  Office of Management and Budget.
502.  Officers.
503.  Functions of Deputy Director for Management.
504.  Office of Federal Financial Management.
505.  Office of Information and Regulatory Affairs.
506.  Office of Federal Procurement Policy.
521.  Employees.
522.  Necessary expenditures.
                  CHAPTER 7--GENERAL ACCOUNTING OFFICE
           Subchapter I--Definitions and General Organization
Sec.
701.  Definitions.
702.  General Accounting Office.
703.  Comptroller General and Deputy Comptroller General.
                Subchapter II--General Duties and Powers
Sec.
711.  General authority.
712.  Investigating the use of public money.
713.  Audit of Internal Revenue Service and Bureau of Alcohol, 
Tobacco, and Firearms.
714.  Audit of Financial Institutions Examination Council, 
Federal Reserve Board, Federal Reserve Banks, Federal Deposit 
Insurance Corporation, and Office of Comptroller of the 
Currency.
715.  Audit of accounts and operations of the District of 
Columbia government.
716.  Availability of information and inspection of records.
717.  Evaluating programs and activities of the United States 
Government.
718.  Availability of draft reports.
719.  Comptroller General reports.
720.  Agency reports.
               CHAPTER 9--AGENCY CHIEF FINANCIAL OFFICERS
Sec.
901.  Establishment of agency Chief Financial Officers.
902.  Authority and functions of agency Chief Financial 
Officers.
903.  Establishment of agency Deputy Chief Financial Officers.
          * * * * * * *

                    SUBTITLE II---THE BUDGET PROCESS

   CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION
Sec.
1101.  Definitions.
1102.  Fiscal year.
1103.  Budget ceiling.
1104.  Budget and appropriations authority of the President.
1105.  Budget contents and submission to Congress.
1106.  Supplemental budget estimates and changes.
1107.  Deficiency and supplemental appropriations.
1108.  Preparation and submission of appropriations requests to 
the President.
1109.  Current programs and activities estimates.
1110.  Year-ahead requests for authorizing legislation.
1111.  Improving economy and efficiency.
1112.  Fiscal, budget, and program information.
1113.  Congressional information.
1114.  [Repealed.].
1115.  Performance plans.
1116.  Program performance reports.
1117.  Exemption.
1118.  Pilot projects for performance goals.
1119.  Pilot projects for performance budgeting.
                       CHAPTER 13--APPROPRIATIONS
                         Subchapter I--General
Sec.
1301.  Application.
1302.  Determining amounts appropriated.
1303.  Effect of changes in titles of appropriations.
1304.  Judgments, awards, and compromise settlements.
1305.  Miscellaneous permanent appropriations.
1306.  Use of foreign credits.
1307.  Public building construction.
1308.  Telephone and metered services.
1309.  Social security tax.
1310.  Appropriations for private organizations.
                 Subchapter II--Trust Funds and Refunds
Sec.
1321.  Trust funds.
1322.  Payments of unclaimed trust fund amounts and refund of 
amounts erroneously deposited.
1323.  Trust funds for certain fees, donations, quasi-public 
amounts, and unearned amounts.
1324.  Refund of internal revenue collections.
         Subchapter III--Limitations, Exceptions, and Penalties
Sec.
1341.  Limitation on expending and obligating amounts.
1342.  Limitations on voluntary services.
1343.  Buying and leasing passenger motor vehicles and 
aircraft.
1344.  Passenger carrier use.
1345.  Expenses of meetings.
1346.  Commissions, councils, boards, and interagency and 
similar groups.
1347.  Appropriations or authorizations required for agencies 
in existence for more than one year.
1348.  Telephone installation and charges.
1349.  Adverse personnel actions.
1350.  Criminal penalty.
1351.  Reports on violations.
1352.  Limitation on use of appropriated funds to influence 
certain Federal contracting and financial transactions.
1353.  Acceptance of travel and related expenses from non-
Federal sources.
                  CHAPTER 15--APPROPRIATION ACCOUNTING
                         Subchapter I--General
Sec.
1501.  Documentary evidence requirement for Government 
obligations.
1502.  Balances available.
1503.  Comptroller General reports of amounts for which no 
accounting is made.
                      Subchapter II--Apportionment
Sec.
1511.  Definition and application.
1512.  Apportionment and reserves.
1513.  Officials controlling apportionments.
1514.  Administrative division of apportionments.
1515.  Authorized apportionments necessitating deficiency or 
supplemental appropriations.
1516.  Exemptions.
1517.  Prohibited obligations and expenditures.
1518.  Adverse personnel actions.
1519.  Criminal penalty.
              Subchapter III--Transfers and Reimbursements
Sec.
1531.  Transfers of functions and activities.
1532.  Withdrawal and credit.
1533.  Transfers of appropriations for salaries and expenses to 
carry out national defense responsibilities.
1534.  Adjustments between appropriations.
1535.  Agency agreements.
1536.  Crediting payments from purchases between executive 
agencies.
1537.  Services between the United States Government and the 
District of Columbia government.
                    Subchapter IV--Closing Accounts
Sec.
1551.  Definitions; applicability of subchapter.
1552.  Procedure for appropriation accounts available for 
definite periods.
1553.  Availability of appropriation accounts to pay 
obligations.
1554.  Audit, control, and reporting.
1555.  Closing of appropriation accounts available for 
indefinite periods.
1556.  Comptroller General: reports on appropriation accounts.
1557.  Authority for exemptions in appropriation laws.
1558.  Availability of funds following resolution of a protest.
          * * * * * * *

                   SUBTITLE III--FINANCIAL MANAGEMENT

                        CHAPTER 31--PUBLIC DEBT
                   Subchapter I--Borrowing Authority
Sec.
3101.  Public debt limit.
3102.  Bonds.
3103.  Notes.
3104.  Certificates of indebtedness and Treasury bills.
3105.  Savings bonds and savings certificates.
3106.  Retirement and savings bonds.
3107.  Increasing interest rates and investment yields on 
retirement bonds.
3108.  Prohibition against circulation privilege.
3109.  Tax and loss bonds.
3110.  Sale of obligations of governments of foreign countries.
3111.  New issue used to buy, redeem, or refund outstanding 
obligations.
3112.  Sinking fund for retiring and cancelling bonds and 
notes.
3113.  Accepting gifts.
                     Subchapter II--Administrative
Sec.
3121.  Procedure.
3122.  Banks and trust companies as depositaries.
3123.  Payment of obligations and interest on the public debt.
3124.  Exemption from taxation.
3125.  Relief for lost, stolen, destroyed, mutilated, or 
defaced obligations.
3126.  Losses and relief from liability related to redeeming 
savings bonds and notes.
3127.  Credit to officers, employees, and agents for stolen 
Treasury notes.
3128.  Proof of death to support payment.
3129.  Appropriation to pay expenses.
3130.  Annual public debt report.
           CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY
                Subchapter I--Deposits and Depositories
Sec.
3301.  General duties of the Secretary of the Treasury.
3302.  Custodians of money.
3303.  Designation of depositaries.
3304.  Transfers of public money from depositaries.
3305.  Audits of depositaries.
                        Subchapter II--Payments
Sec.
3321.  Disbursing authority in the executive branch.
3322.  Disbursing officials.
3323.  Warrants.
3324.  Advances.
3325.  Vouchers.
3326.  Waiver of requirements for warrants and advances.
3327.  General authority to issue checks and other drafts.
3328.  Paying checks and drafts.
3329.  Withholding checks to be sent to foreign countries.
3330.  Payment of Department of Veterans Affairs checks for the 
benefit of individuals in foreign countries.
3331.  Substitute checks.
3332.  Required direct deposit.
3333.  Relief for payments made without negligence.
3334.  Cancellation and proceeds distribution of Treasury 
checks.
3335.  Timely disbursement of Federal funds.
                     Subchapter III--Miscellaneous
Sec.
3341.  Sale of Government warrants, checks, drafts, and 
obligations.
3342.  Check cashing and exchange transactions.
3343.  Check forgery insurance fund.
                 CHAPTER 35--ACCOUNTING AND COLLECTION
                         Subchapter I--General
Sec.
3501.  Definition
    Subchapter II--Accounting Requirements, Systems, and Information
Sec.
3511.  Prescribing accounting requirements and developing 
accounting systems.
3512.  Executive agency accounting and other financial 
management reports and plans.
3513.  Financial reporting and accounting system.
3514.  Discontinuing certain accounts maintained by the 
Comptroller General.
3515.  Financial statements of agencies.
             Subchapter III--Auditing and Settling Accounts
Sec.
3521.  Audits by agencies.
3522.  Making and submitting accounts.
3523.  General audit authority of the Comptroller General.
3524.  Auditing expenditures approved without vouchers.
3525.  Auditing nonappropriated fund activities.
3526.  Settlement of accounts.
3527.  General authority to relieve accountable officials and 
agents from liability.
3528.  Responsibilities and relief from liability of certifying 
officials.
3529.  Request for decisions of the Comptroller General.
3530.  Adjusting accounts.
3531.  Property returns.
3532.  Notification of account deficiencies.
                       Subchapter IV--Collection
Sec.
3541.  Distress warrants.
3542.  Carrying out distress warrants.
3543.  Postponing a distress warrant proceeding.
3544.  Rights and remedies of the United States Government 
reserved.
3545.  Civil action to recover money.
                           CHAPTER 37--CLAIMS
                         Subchapter I--General
Sec.
3701.  Definitions and application.
3702.  Authority of the Comptroller General to settle claims.
         Subchapter II--Claims of the United States Government
Sec.
3711.  Collection and compromise.
3712.  Time limitations for presenting certain claims of the 
Government.
3713.  Priority of Government claims.
3714.  Keeping money due States in default.
3715.  Buying real property of a debtor.
3716.  Administrative offset.
3717.  Interest and penalty on claims.
3718.  Contracts for collection services.
3719.  Reports on debt collection activities.
3720.  Collection of payments.
3720A.  Reduction of tax refund by amount of debt.
      Subchapter III--Claims Against the United States Government
Sec.
3721.  Claims of personnel of agencies and the District of 
Columbia government for personal property damage or loss.
3722.  Claims of officers and employees of Government penal and 
correctional institutions.
3723.  Small claims for privately owned property damage or 
loss.
3724.  Claims for damages caused by investigative or law 
enforcement officers of the Department of Justice.
3725.  Claims of non-nationals for personal injury or death in 
a foreign country.
3726.  Payment for transportation.
3727.  Assignments of claims.
3728.  Setoff against judgment.
3729.  False claims.
3730.  Civil actions for false actions.
3731.  False claims procedure.
3732.  False claims jurisdiction.
3733.  Civil investigative demands.
                       CHAPTER 39--PROMPT PAYMENT
Sec.
3901.  Definitions and applications.
3902.  Interest penalties.
3903.  Regulations.
3904.  Limitations on discount payments.
3905.  Payment provisions relating to construction contracts.
3906.  Reports.
3907.  Relationship to other laws.
          * * * * * * *

           SUBTITLE V \4\--GENERAL ASSISTANCE ADMINISTRATION
---------------------------------------------------------------------------

    \4\ Sections from Subtitle IV of Title 31 were not selected for 
inclusion in this report because the subject matter was not directly 
related to financial management.
---------------------------------------------------------------------------
              CHAPTER 75---REQUIREMENTS FOR SINGLE AUDITS
Sec.
7501.  Definitions.
7502.  Audit requirements; exemptions.
7503.  Relation to other audit requirements.
7504.  Cognizant agency responsibilities.
7505.  Regulations.
7506.  Monitoring responsibilities of the Comptroller General.
7507.  Effective date; report.
          * * * * * * *

                       SUBTITLE VI--MISCELLANEOUS

                 CHAPTER 91---GOVERNMENT CORPORATIONS.
Sec.
9101.  Definitions.
                       CHAPTER 97--MISCELLANEOUS
Sec.
9701.  Fees and charges for Government Services and Things of 
Value.
9702.  Investment of Trust Funds.
9703.  Managerial Accountability and Flexibility.

    704.  Pilot Projects for Managerial Accountability and 
                          Flexibility.
                      TITLE 31--MONEY AND FINANCE

                          Subtitle I--General

          * * * * * * *

                         CHAPTER 1--DEFINITIONS

SEC. 101. AGENCY.

    In this title, ``agency'' means a department, agency, or 
instrumentality of the United States Government.

SEC. 102. EXECUTIVE AGENCY.

    In this title, ``executive agency'' means a department, 
agency, or instrumentality in the executive branch of the 
United States Government.

SEC. 103. UNITED STATES.

    In this title, ``United States'', when used in a geographic 
sense, means the States of the United States and the District 
of Columbia.
                      TITLE 31--MONEY AND FINANCE

                          Subtitle I--General

          * * * * * * *

                 CHAPTER 3--DEPARTMENT OF THE TREASURY

                       Subchapter I--Organization

SEC. 301. DEPARTMENT OF THE TREASURY.

    (a) The Department of the Treasury is an executive 
department of the United States Government at the seat of the 
Government.
    (b) The head of the Department is the Secretary of the 
Treasury. The Secretary is appointed by the President, by and 
with the advice and consent of the Senate.
    (c) The Department has a Deputy Secretary of the Treasury 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Secretary shall carry out--
          (1) duties and powers prescribed by the Secretary; 
        and
          (2) the duties and powers of the Secretary when the 
        Secretary is absent or unable to serve or when the 
        office of Secretary is vacant.
    (d) The Department has 2 Under Secretaries, an Under 
Secretary for Enforcement, 2 Deputy Under Secretaries, and a 
Treasurer of the United States, appointed by the President, by 
and with the advice and consent of the Senate. The Department 
also has a Fiscal Assistant Secretary appointed by the 
Secretary. They shall carry out duties and powers prescribed by 
the Secretary. The President may designate one Under Secretary 
as Counselor. When appointing each Deputy Under Secretary, the 
President may designate the Deputy Under Secretary as an 
Assistant Secretary.
    (e) The Department has 7 Assistant Secretaries appointed by 
the President, by and with the advice and consent of the 
Senate. The Assistant Secretaries shall carry out duties and 
powers prescribed by the Secretary. The Assistant Secretaries 
appointed under this subsection are in addition to the 
Assistant Secretaries appointed under subsection (d) of this 
section.
    (f)(1) The Department has a General Counsel appointed by 
the President, by and with the advice and consent of the 
Senate. The General Counsel is the chief law officer of the 
Department. Without regard to those provisions of title 5 
governing appointment in the competitive service, the Secretary 
may appoint not more than 5 Assistant General Counsels. The 
Secretary may designate one of the Assistant General Counsels 
to act as the General Counsel when the General Counsel is 
absent or unable to serve or when the office of General Counsel 
is vacant. The General Counsel and Assistant General Counsels 
shall carry out duties and powers prescribed by the Secretary.
    (2) The President may appoint, by and with the advice and 
consent of the Senate, an Assistant General Counsel who shall 
be the Chief Counsel for the Internal Revenue Service. The 
Chief Counsel is the chief law officer for the Service and 
shall carry out duties and powers prescribed by the Secretary.
    (g) The Department shall have a seal.

SEC. 302. TREASURY OF THE UNITED STATES.

    The United States Government has a Treasury of the United 
States. The Treasury is in the Department of the Treasury.

SEC. 303. BUREAU OF ENGRAVING AND PRINTING.

    (a) The Bureau of Engraving and Printing is a bureau in the 
Department of the Treasury.
    (b) The head of the Bureau is the Director of the Bureau of 
Engraving and Printing appointed by the Secretary of the 
Treasury. The Director--
          (1) shall carry out duties and powers prescribed by 
        the Secretary; and
          (2) reports directly to the Secretary.

SEC. 304. UNITED STATES MINT.

    (a) The United States Mint is a bureau in the Department of 
the Treasury.
    (b)(1) The head of the Mint is the Director of the Mint. 
The Director is appointed by the President, by and with the 
advice and consent of the Senate. The term of the Director is 5 
years. The President may remove the Director from office. On 
removal, the President shall send a message to the Senate 
giving the reasons for removal.
    (2) The Director shall carry out duties and powers 
prescribed by the Secretary of the Treasury.

SEC. 305. FEDERAL FINANCING BANK.

    The Federal Financing Bank, established under section 4 of 
the Federal Financing Bank Act of 1973 (12 U.S.C. 2283), is 
subject to the direction and supervision of the Secretary of 
the Treasury.

SEC. 306. FISCAL SERVICE.

    (a) The Fiscal Service is a service in the Department of 
the Treasury.
    (b) The head of the Fiscal Service is the Fiscal Assistant 
Secretary appointed under section 301(d) of this title.
    (c) The Fiscal Service has a--
          (1) Bureau of Government Financial Operations, having 
        as its head a Commissioner of Government Financial 
        Operations; and
          (2) Bureau of the Public Debt, having as its head a 
        Commissioner of the Public Debt.
    (d) The Secretary of the Treasury may designate another 
officer of the Department to act as the Fiscal Assistant 
Secretary when the Fiscal Assistant Secretary is absent or 
unable to serve or when the office of Fiscal Assistant 
Secretary is vacant.

SEC. 307. OFFICE OF THE COMPTROLLER OF THE CURRENCY.

    The Office of the Comptroller of the Currency, established 
under section 324 of the Revised Statutes (12 U.S.C. 1), is an 
office in the Department of the Treasury.

SEC. 308. UNITED STATES CUSTOMS SERVICE.

    The United States Customs Service, established under 
section 1 of the Act of March 3, 1927 (19 U.S.C. 2071), is a 
service in the Department of the Treasury.

SEC. 309. OFFICE OF THRIFT SUPERVISION.

    The Office of Thrift Supervision established under section 
3(a) of the Home Owners' Loan Act shall be an office in the 
Department of the Treasury.

SEC. 310. CONTINUING IN OFFICE.

  When the term of office of an officer of the Department of 
the Treasury ends, the officer may continue to serve until a 
successor is appointed and qualified.

SEC. 321. GENERAL AUTHORITY OF THE SECRETARY.

  (a) The Secretary of the Treasury shall--
          (1) prepare plans for improving and managing receipts 
        of the United States Government and managing the public 
        debt;
          (2) carry out services related to finances that the 
        Secretary is required to perform;
          (3) issue warrants for money drawn on the Treasury 
        consistent with appropriations;
          (4) mint coins, engrave and print currency and 
        security documents, and refine and assay bullion, and 
        may strike medals;
          (5) prescribe regulations that the Secretary 
        considers best calculated to promote the public 
        convenience and security, and to protect the Government 
        and individuals from fraud and loss, that apply to 
        anyone who may--
                  (A) receive for the Government, Treasury 
                notes, United States notes, or other Government 
                securities; or
                  (B) be engaged or employed in preparing and 
                issuing those notes or securities;
          (6) collect receipts;
          (7) with a view to prosecuting persons, take steps to 
        discover fraud and attempted fraud involving receipts 
        and decide on ways to prevent and detect fraud; and
          (8) maintain separate accounts of taxes received in 
        each State, territory, and possession of the United 
        States, and collection district, with each account 
        listing--
                  (A) each kind of tax;
                  (B) the amount of each tax; and
                  (C) the money paid as pay and allowances to 
                officers and employees of the Department 
                collecting taxes in that State, territory, 
                possession, or district.
  (b) The Secretary may--
          (1) prescribe regulations to carry out the duties and 
        powers of the Secretary;
          (2) delegate duties and powers of the Secretary to 
        another officer or employee of the Department of the 
        Treasury;
          (3) transfer within the Department the records, 
        property, officers, employees, and unexpended balances 
        of appropriations, allocations, and amounts of the 
        Department that the Secretary considers necessary to 
        carry out a delegation made under clause (2) of this 
        subsection;
          (4) detail, in addition to details authorized under 
        another law, not more than 6 officers and employees of 
        the Department at any one time to enforce the laws 
        related to the Department, except that of those 6 
        officers and employees not more than 4 officers and 
        employees--
                  (A) paid from the appropriations for the 
                collection of customs may be so detailed;
                  (B) paid from the appropriations for internal 
                revenue may be so detailed; and
                  (C) paid from the appropriations for 
                suppressing counterfeiting and other crimes may 
                be so detailed;
          (5) authorize, at rates and under conditions 
        prescribed by the Secretary, the private use of 
        telephone lines controlled by the Department when the 
        use does not interfere with Department business; and
          (6) buy arms and ammunition required by officers and 
        employees of the Department in carrying out their 
        duties and powers.
  (c) Duties and powers of officers and employees of the 
Department are vested in the Secretary except duties and 
powers--
          (1) vested by subchapter II of chapter 5 of title 5 
        in administrative law judges employed by the Secretary;
          (2) of the Comptroller of the Currency; and
          (3) of the Director of the Office of Thrift 
        Supervision;
  (d)(1) The Secretary of the Treasury may accept, hold, 
administer, and use gifts and bequests of property, both real 
and personal, for the purpose of aiding or facilitating the 
work of the Department of the Treasury. Gifts and bequests of 
money and the proceeds from sales of other property received as 
gifts or bequests shall be deposited in the Treasury in a 
separate fund and shall be disbursed on order of the Secretary 
of the Treasury. Property accepted under this paragraph, and 
the proceeds thereof, shall be used as nearly as possible in 
accordance with the terms of the gift or bequest.
  (2) For purposes of the Federal income, estate, and gift 
taxes, property accepted under paragraph (1) shall be 
considered as a gift or bequest to or for the use of the United 
States.
  (3) The Secretary of the Treasury may invest and reinvest the 
fund in public debt securities with maturities suitable for the 
needs of the fund and bearing interest at rates determined by 
the Secretary of the Treasury, taking into consideration the 
current average market yield on outstanding marketable 
obligations of the United States of comparable maturities. 
Income accruing from the securities, and from any other 
property accepted under paragraph (1), shall be deposited to 
the credit of the fund, and shall be disbursed on order of the 
Secretary of the Treasury for purposes as nearly as possible in 
accordance with the terms of the gifts or bequests.
  (4) The Secretary of the Treasury shall, not less frequently 
than annually, make a public disclosure of the amount (and 
sources) of the gifts and bequests received under this 
subsection, and the purposes for which amounts in the separate 
fund established under this subsection are expended.
  (e) Certain reorganization prohibited.--The Secretary of the 
Treasury may not merge or consolidate the Office of Thrift 
Supervision, or any of the functions or responsibilities of the 
Office or the Director of such office, with the Office of the 
Comptroller of the Currency or the Comptroller of the Currency.

SEC. 322. WORKING CAPITAL FUND.

  (a) The Department of the Treasury has a working capital 
fund. Amounts in the fund are available for expenses of 
operating and maintaining common administrative services of the 
Department that the Secretary of the Treasury, with the 
approval of the Director of the Office of Management and 
Budget, decides may be carried out more advantageously and more 
economically as central services.
  (b) Amounts in the fund remain available until expended. 
Amounts may be appropriated to the fund.
  (c) The fund consists of--
          (1) amounts appropriated to the fund;
          (2) to the extent transferred to the fund by the 
        Secretary, the reasonable value of supply inventories, 
        equipment, and other assets and inventories on order 
        for providing services out of amounts in the fund, less 
        related liabilities and unpaid obligations;
          (3) amounts received from the sale or exchange of 
        property; and
          (4) payments received for loss or damage to property 
        of the fund.
  (d) The fund shall be reimbursed, or credited with advance 
payments, from amounts available to the Department or from 
other sources, for supplies and services at rates that will 
equal the expenses of operation, including accrual of annual 
leave and the depreciation of plant and equipment. Amounts the 
Secretary decides are in excess of the needs of the fund shall 
be deposited at the end of each fiscal year in the Treasury as 
miscellaneous receipts.

SEC. 323. INVESTMENT OF OPERATING CASH.

  (a) To manage United States cash, the Secretary of the 
Treasury may invest any part of the operating cash of the 
Treasury for not more than 90 days. Investments may be made in 
obligations of--
          (1) depositaries maintaining Treasury tax and loan 
        accounts secured by pledged collateral acceptable to 
        the Secretary; and
          (2) the United States Government.
  (b) Subsection (a) of this section does not--
          (1) require the Secretary to invest a cash balance 
        held in a particular account; or
          (2) permit the Secretary to require the sale of 
        obligations by a particular person, dealer, or 
        financial institution.
  (c) The Secretary shall consider the prevailing market in 
prescribing rates of interest for investments under subsection 
(a)(1) of this section.

SEC. 324. DISPOSING AND EXTENDING THE MATURITY OF OBLIGATIONS.

  (a) The Secretary of the Treasury may--
          (1) dispose of obligations--
                  (A) acquired by the Secretary for the United 
                States Government; or
                  (B) delivered by an executive agency; and
          (2) make arrangements to extend the maturity of those 
        obligations.
  (b) The Secretary may dispose or extend the maturity of 
obligations under subsection (a) of this section in the way, in 
amounts, at prices (for cash, obligations, property, or a 
combination of cash, obligations, or property), and on 
conditions the Secretary considers advisable and in the public 
interest.
  (c) The authority under this section is in addition to 
authority under another law.

SEC. 325. INTERNATIONAL AFFAIRS AUTHORIZATION.

  (a) Under regulations prescribed by the Secretary of the 
Treasury, the Secretary may provide officers and employees of 
the Department of the Treasury carrying out international 
affairs duties and powers of the Department with allowances and 
benefits comparable to those provided under chapter 9 of title 
I of the Foreign Service Act of 1980 (22 U.S.C. 4081 et seq.).
  (b) The following amounts may be appropriated to the 
Secretary for the fiscal year ending September 30, 1982:
          (1) not more than $22,896,000 to carry out the 
        international affairs duties and powers of the 
        Department (including amounts for official functions 
        and reception and representation expenses).
          (2) not more than $1,000,000 for increases in--
                  (A) pay, under section 5382(c) and subchapter 
                I of chapter 53 of title 5 (except section 
                5305, or corresponding prior provision of such 
                title), of officers and employees carrying out 
                the duties and powers referred to in clause (1) 
                of this subsection;
                  (B) departmental contributions attributable 
                to those pay increases; and
                  (C) allowances and benefits, because of cost 
                of living increases, provided under subsection 
                (a) of this section.
  (c) Necessary amounts may be appropriated to the Secretary 
for each fiscal year beginning after September 30, 1982--
          (1) to carry out the international affairs duties and 
        powers of the Department (including amounts for 
        official functions and reception and representation 
        expenses);
          (2) for increases in--
                  (A) pay, under section 5382(c) and subchapter 
                I of chapter 53 of title 5 (except section 
                5303), of officers and employees carrying out 
                the duties and powers referred to in clause (1) 
                of this subsection;
                  (B) departmental contributions attributable 
                to those pay increases; and
                  (C) allowances and benefits, because of cost 
                of living increases, provided under subsection 
                (a) of this section.

SEC. 326. AVAILABILITY OF APPROPRIATIONS FOR CERTAIN EXPENSES.

  (a) Under regulations prescribed by the Secretary of the 
Treasury, an appropriation for the Department of the Treasury 
available to pay travel expenses also is available to pay 
expenses to attend meetings of organizations related to the 
function or activity for which the appropriation is made.
  (b) The Secretary may approve reimbursement to agents on 
protective missions for subsistence expenses authorized by law 
without regard to rates and amounts established under section 
5702 of title 5.

SEC. 327. ADVANCEMENTS AND REIMBURSEMENTS FOR SERVICES.

  (a) In this section, ``service'' includes service provided 
in--
          (1) disbursing and receiving amounts,
          (2) servicing bonds,
          (3) making accounts, and
          (4) maintaining bank accounts.
    (b) When the Secretary of the Treasury provides a service 
for an agency (except the Department of the Treasury) for which 
amounts have not been appropriated to the Department, the 
agency may advance for credit or reimburse the Department the 
amounts necessary to provide the service. Notwithstanding 
section 3302 of this title, amounts advanced or reimbursed may 
be credited to the appropriation of the Department that is 
current when the service is provided.

SEC. 328. ACCOUNTS AND PAYMENTS OF FORMER DISBURSING OFFICIALS.

    (a) If a chief disbursing official or a director of a 
disbursing center of the Department of the Treasury dies, 
resigns, or leaves office, the deputy chief disbursing official 
or the deputy director of the disbursing center designated by 
the Secretary of the Treasury may continue the accounts and 
payments in the name of the former disbursing official or 
director through the last day of the 2d month after the month 
in which the death, resignation, or separation occurs. The 
accounts and payments shall be allowed, audited, and settled as 
provided by law. The Secretary shall honor checks signed in the 
name of the former disbursing official or director in the same 
way as if the former disbursing official or director had 
continued in office.
    (b) Only the deputy chief or deputy director designated 
under subsection (a) of this section is liable for actions 
taken in the name of the former disbursing official under 
subsection (a).

SEC. 329. LIMITATIONS ON OUTSIDE ACTIVITIES.

    (a)(1) The Secretary of the Treasury and the Treasurer may 
not--
          (A) be involved in trade or commerce;
          (B) own any part of a vessel (except a pleasure 
        vessel);
          (C) buy or hold as a beneficiary in trust public 
        property;
          (D) be involved in buying or disposing of obligations 
        of a State or the United States Government; and
          (E) personally take or use a benefit gained from 
        conducting business of the Department of the Treasury 
        except as authorized by law.
    (2) An officer violating this subsection shall be fined 
$3,000, removed from office, and thereafter may not hold an 
office of the Government.
    (3) An individual (except prosecutors) giving information 
leading to the prosecution and conviction of an individual 
violating this subsection shall receive $1,500 of the fine when 
paid.
    (b)(1) An officer or employee of the Department (except the 
Secretary or Treasurer) may not--
          (A) carry on a trade or business in the funds, debts, 
        or property of a State or the Government; and
          (B) personally use a benefit gained from conducting 
        business of the Department.
    (2) An officer or employee violating this subsection shall 
be fined $500 and removed from office.

SEC. 330. PRACTICE BEFORE THE DEPARTMENT.

    (a) Subject to section 500 of title 5, the Secretary of the 
Treasury may--
          (1) regulate the practice of representatives of 
        persons before the Department of the Treasury; and
          (2) before admitting a representative to practice, 
        require that the representative demonstrate--
                  (A) good character;
                  (B) good reputation;
                  (C) necessary qualifications to enable the 
                representative to provide to persons valuable 
                service; and
                  (D) competency to advise and assist persons 
                in presenting their cases.
    (b) After notice and opportunity for a proceeding, the 
Secretary may suspend or disbar from practice before the 
Department a representative who--
          (1) is incompetent;
          (2) is disreputable;
          (3) violates regulations prescribed under this 
        section; or
          (4) with intent to defraud, willfully and knowingly 
        misleads or threatens the person being represented or a 
        prospective person to be represented.
    (c) After notice and opportunity for a hearing to any 
appraiser with respect to whom a penalty has been assessed 
under section 6701(a) of the Internal Revenue Code of 1954, the 
Secretary may--
          (1) provide that appraisals by such appraiser shall 
        not have any probative effect in any administrative 
        proceeding before the Department of the Treasury or the 
        Internal Revenue Service, and
          (2) bar such appraiser from presenting evidence or 
        testimony in any such proceeding.

SEC. 331. REPORTS.

    (a) The Secretary of the Treasury shall submit to Congress 
each year an annual report. The report shall include--
          (1) a statement of the public receipts and public 
        expenditures for the prior fiscal year;
          (2) estimates of public receipts and public 
        expenditures for the current and next fiscal years;
          (3) plans for improving and increasing public 
        receipts to provide Congress with information on ways 
        to raise amounts necessary to meet public expenditures;
          (4) a statement of all contracts for supplies or 
        services made by the Secretary during the prior fiscal 
        year;
          (5) a statement of appropriations expended to pay for 
        miscellaneous claims not otherwise provided for;
          (6) a statement on all payments made from the fund 
        under section 3126 of this title for the prior fiscal 
        year; and
          (7) estimates of amounts for payment under section 
        1322(b) of this title.
    (b)(1) On the first day of each regular session of 
Congress, the Secretary shall submit to Congress a report for 
the prior fiscal year on--
          (A) the total and individual amounts of contingent 
        liabilities and unfunded liabilities of the United 
        States Government;
          (B) as far as practicable, trust fund liabilities, 
        liabilities of Government corporations, indirect 
        liabilities not included as a part of the public debt, 
        and liabilities of insurance and annuity programs 
        (including their actuarial status);
          (C) collateral pledged and assets available (or to be 
        realized) as security for the liabilities (separately 
        noting Government obligations) and other assets 
        specifically available to liquidate the liabilities of 
        the Government; and
          (D) the total amount in each category under clauses 
        (A)-(C) of this paragraph for each agency.
    (2) The report shall present the information required under 
paragraph (1) of this subsection in a concise way, with 
explanatory material (including an analysis of the significance 
of liabilities based on past experience and probable risk) the 
Secretary considers desirable.
    (c) On the first day of each regular session of Congress, 
the Secretary shall submit to Congress a report for the prior 
fiscal year on the total amount of public receipts and public 
expenditures listing receipts, when practicable, by ports, 
districts, and States and the expenditures by each 
appropriation.
    (d) The Secretary shall report to either House of Congress 
in person or in writing, as required, on matters referred to 
the Secretary by that House of Congress.
    (e)(1) Not later than March 31 of 1998 and each year 
thereafter, the Secretary of the Treasury, in coordination with 
the Director of the Office of Management and Budget, shall 
annually prepare and submit to the President and the Congress 
an audited financial statement for the preceding fiscal year, 
covering all accounts and associated activities of the 
executive branch of the United States Government. The financial 
statement shall reflect the overall financial position, 
including assets and liabilities, and results of operations of 
the executive branch of the United States Government, and shall 
be prepared in accordance with the form and content 
requirements set forth by the Director of the Office of 
Management and Budget.
    (2) The Comptroller General of the United States shall 
audit the financial statement required by this section.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
321.......................................  31 C.F.R. 1, 2, 10, 19, 21, 
                                             25, 26, 205, 206, 210, 337,
                                             601                        
330.......................................  TFM, Volume 1, Part 6,      
                                             Chapter 8000, see appendix 
                                             V 31 CFR 10                
331.......................................  TFM, Volume 1, Part 6,      
                                             Chapter 4000, see appendix 
                                             V                          
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                          Subtitle I--General

          * * * * * * *

               CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET

                       Subchapter I--Organization

SEC. 501. OFFICE OF MANAGEMENT AND BUDGET.

    The Office of Management and Budget is an office in the 
Executive Office of the President.
                     short title of 1990 amendment
    Pub.L. 101-576, Title I, Sec. 101, Nov. 15, 1990, 104 Stat. 
2838, provided that: ``This Act [enacting sections 503, 504, 
901-903, 3515 and 9106 of this title, amending sections 502, 
1105, 3512, 3521, 5313, 5314, 5315 and 9105 of this title and 
section 3533 of Title 42, Public Health and Welfare, enacting 
provisions set out as notes under this section and sections 
901, 3511, 3515 and 3521 of this title, and amending provisions 
set out as a note under section 201 of Title 38, Veterans' 
Benefits] may be cited as the `Chief Financial Officers Act of 
1990'.''
                     franchise fund pilot programs
    Pub.L. 103-356, Title IV, Sec. 403, Oct. 13, 1994, 108 
Stat. 3413, provided that:
    ``(a) Establishment.--There is authorized to be established 
on a pilot program basis in each of six executive agencies a 
franchise fund. The Director of the Office of Management and 
Budget, after consultation with the chairman and ranking 
members of the Committees on Appropriations and Governmental 
Affairs of the Senate, and the Committees on Appropriations and 
Government Operations of the House of Representatives, shall 
designate the agencies.
    ``(b) Uses.--Each such fund may provide, consistent with 
guidelines established by the Director of the Office of 
Management and Budget, such common administrative support 
services to the agency and to other agencies as the head of 
such agency, with the concurrence of the Director, determines 
can be provided more efficiently through such a fund than by 
other means. To provide such services, each such fund is 
authorized to acquire the capital equipment, automated data 
processing systems, and financial management and management 
information systems needed. Services shall be provided by such 
funds on a competitive basis.
    ``(c) Funding.--(1) There are authorized to be appropriated 
to the franchise fund of each agency designated under 
subsection (a) such funds as are necessary to carry out the 
purposes of the fund, to remain available until expended. To 
the extent that unexpended balances remain available in other 
accounts for the purposes to be carried out by the fund, the 
head of the agency may transfer such balances to the fund.
    ``(2) Fees for services shall be established by the head of 
the agency at a level to cover the total estimated costs of 
providing such services. Such fees shall be deposited in the 
agency's fund to remain available until expended, and may be 
used to carry out the purposes of the fund.
    ``(3) Existing inventories, including inventories on order, 
equipment, and other assets or liabilities pertaining to the 
purposes of the fund may be transferred to the fund.
    ``(d) Report on Pilot Programs.--Within 6 months after the 
end of fiscal year 1997, the Director of the Office of 
Management and Budget shall forward a report on the results of 
the pilot programs to the Committees on Appropriations of the 
Senate and of the House of Representatives, and to the 
Committee on Governmental Affairs of the Senate and the 
Committee on Government Operations of the House of 
Representatives. The report shall contain the financial and 
program performance results of the pilot programs, including 
recommendations for--
          ``(1) the structure of the fund;
          ``(2) the composition of the funding mechanism;
          ``(3) the capacity of the fund to promote 
        competition; and
          ``(4) the desirability of extending the application 
        and implementation of franchise funds to other Federal 
        agencies.
    ``(e) Procurement.--Nothing in this section shall be 
construed as relieving any agency of any duty under applicable 
procurement laws.
    ``(f) Termination.--The provisions of this section shall 
expire on October 1, 1999.''
    [Any reference in any provision of law enacted before Jan. 
4, 1995, to the Committee on Government Operations of the House 
of Representatives treated as referring to the Committee on 
Government Reform and Oversight of the House of 
Representatives, except that any reference in any provision of 
law enacted before Jan. 4, 1995, to the Committee on Government 
Operations of the House of Representatives treated as referring 
to the Committee on the Budget of the House of Representatives 
in the case of a provision of law relating to the 
establishment, extension, and enforcement of special controls 
over the Federal budget, see section 1(a)(6) and (c)(2) of 
Pub.L. 104-14, set out as a note preceding section 21 of Title 
2, The Congress.]
             simplification of management reporting process
    Pub.L. 103-356, Title IV, Sec. 404, Oct. 13, 1994, 108 
Stat. 3414, provided that:
    ``(a) In General.--To improve the efficiency of executive 
branch performance in implementing statutory requirements for 
financial management reporting to the Congress and its 
committees, the Director of the Office of Management and Budget 
may adjust the frequency and due dates of or consolidate any 
statutorily required reports of agencies to the Office of 
Management and Budget or the President and of agencies or the 
Office of Management and Budget to the Congress under any laws 
for which the Office of Management and Budget has financial 
management responsibility, including--
          ``(1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 
        of title 31, United States Code [sections 501 et seq., 
        901 et seq., 1101 et seq., 3301 et seq., 3501 et seq., 
        3701 et seq., 3901 et seq., 7501 et seq., and 9101 et 
        seq. of this title, respectively
          ``(2) the Federal Civil Penalties Inflation 
        Adjustment Act of 1990 (28 U.S.C. 2461 note; Public Law 
        101-410; 104 Stat. 890).
    ``(b) Application.--The authority provided in subsection 
(a) shall apply only to reports of agencies to the Office of 
Management and Budget or the President and of agencies or the 
Office of Management and Budget to the Congress required by 
statute to be submitted between January 1, 1995, and September 
30, 1997.
    ``(c) Adjustments in reporting.--The Director may 
consolidate or adjust the frequency and due dates of any 
statutorily required reports under subsections (a) and (b) only 
after--
          ``(1) consultation with the Chairman of the Senate 
        Committee on Governmental Affairs and the Chairman of 
        the House of Representatives Committee on Government 
        Operations; and
          ``(2) written notification to the Congress, no later 
        than February 8 of each fiscal year covered under 
        subsection (b) for those reports required to be 
        submitted during that fiscal year.''
    [Any reference in any provision of law enacted before Jan. 
4, 1995, to the Committee on Government Operations of the House 
of Representatives treated as referring to the Committee on 
Government Reform and Oversight of the House of 
Representatives, except that any reference in any provision of 
law enacted before Jan. 4, 1995, to the Committee on Government 
Operations of the House of Representatives treated as referring 
to the Committee on the Budget of the House of Representatives 
in the case of a provision of law relating to the 
establishment, extension, and enforcement of special controls 
over the Federal budget, see section 1(a)(6) and (c)(2) of 
Pub.L. 104-14, set out as a note preceding section 21 of Title 
2, The Congress.]
                         findings and purposes
    Pub.L. 101-576, Title I, Sec. 102, Nov. 15, 1990, 104 Stat. 
2838, provided that:
    ``(a) Findings.--The Congress finds the following:
          ``(1) General management functions of the Office of 
        Management and Budget need to be significantly enhanced 
        to improve the efficiency and effectiveness of the 
        Federal Government.
          ``(2) Financial management functions of the Office of 
        Management and Budget need to be significantly enhanced 
        to provide overall direction and leadership in the 
        development of a modern Federal financial management 
        structure and associated systems.
          ``(3) Billions of dollars are lost each year through 
        fraud, waste, abuse, and mismanagement among the 
        hundreds of programs in the Federal Government.
          ``(4) These losses could be significantly decreased 
        by improved management, including improved central 
        coordination of internal controls and financial 
        accounting.
          ``(5) The Federal Government is in great need of 
        fundamental reform in financial management requirements 
        and practices as financial management systems are 
        obsolete and inefficient, and do not provide complete, 
        consistent, reliable, and timely information.
          ``(6) Current financial reporting practices of the 
        Federal Government do not accurately disclose the 
        current and probable future cost of operating and 
        investment decisions, including the future need for 
        cash or other resources, do not permit adequate 
        comparison of actual costs among executive agencies, 
        and do not provide the timely information required for 
        efficient management of programs.
    ``(b) Purposes.--The purposes of this Act [Pub.L. 101-576, 
Nov. 15, 1990, 104 Stat. 2838, see Short Title of 1990 
Amendment note under this section] are the following:
          ``(1) Bring more effective general and financial 
        management practices to the Federal Government through 
        statutory provisions which would establish in the 
        Office of Management and Budget a Deputy Director for 
        Management, establish an Office of Federal Financial 
        Management headed by a Controller, and designate a 
        Chief Financial Officer in each executive department 
        and in each major executive agency in the Federal 
        Government.
          ``(2) Provide for improvement, in each agency of the 
        Federal Government, of systems of accounting, financial 
        management, and internal controls to assure the 
        issuance of reliable financial information and to deter 
        fraud, waste, and abuse of Government resources.
          ``(3) Provide for the production of complete, 
        reliable, timely, and consistent financial information 
        for use by the executive branch of the Government and 
        the Congress in the financing, management, and 
        evaluation of Federal programs.''
         duties and functions of the department of the treasury
  Pub.L. 101-576, Title II, Sec. 204, Nov. 15, 1990, 104 Stat. 
2842, provided that: ``Nothing in this Act [Pub.L. 101-576, 
Nov. 15, 1990, 104 Stat. 2838, see Short Title of 1990 
Amendment note under this section] shall be construed to 
interfere with the exercise of the functions, duties, and 
responsibilities of the Department of the Treasury, as in 
effect immediately before the enactment of this Act [probably 
means the date of enactment of Pub.L. 101-576, which was 
approved Nov. 15, 1990].''

                                   NOTE

                         Executive Order 12816

                      Oct. 14, 1992, 57 F.R. 47562

            Management Improvement in the Federal Government

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, and 
in order to coordinate and implement policies with respect to 
management improvement in the Federal Government, it is hereby 
ordered as follows:
    Section 1. Establishment and Membership of the President's 
Council on Management Improvement.
    (a) There is established as an interagency committee the 
President's Council on Management Improvement (``Council'').
    (b) The Council shall be composed of the Deputy Director 
for Management of the Office of Management and Budget, who 
shall serve as Chairman, and one senior official, who is a 
full-time officer or employee of the Federal Government and who 
is responsible for management or administration, from each of 
the following agencies as selected by the heads of those 
agencies:
          (1) Department of State;
          (2) Department of the Treasury;
          (3) Department of Defense;
          (4) Department of Justice;
          (5) Department of the Interior;
          (6) Department of Agriculture;
          (7) Department of Commerce;
          (8) Department of Labor;
          (9) Department of Health and Human Services;
          (10) Department of Housing and Urban Development;
          (11) Department of Transportation;
          (12) Department of Energy;
          (13) Department of Education;
          (14) Department of Veterans Affairs;
          (15) Agency for International Development;
          (16) Environmental Protection Agency;
          (17) Equal Employment Opportunity Commission;
          (18) Federal Communications Commission;
          (19) Federal Deposit Insurance Corporation;
          (20) Federal Emergency Management Agency;
          (21) Federal Energy Regulatory Commission;
          (22) Federal Reserve Board;
          (23) General Services Administration;
          (24) Interstate Commerce Commission;
          (25) National Aeronautics and Space Administration;
          (26) National Archives and Records Administration;
          (27) Nuclear Regulatory Commission;
          (28) Office of Personnel Management;
          (29) Resolution Trust Corporation;
          (30) Securities and Exchange Commission;
          (31) Small Business Administration;
          (32) Tennessee Valley Authority; and
          (33) United States Information Agency.
    (c) The Council membership also shall include the following 
officials:
          (1) Deputy Director, Office of Personnel Management;
          (2) Deputy Administrator, General Services 
        Administration;
          (3) Assistant to the President for Policy Development 
        or a full-time officer or employee of the Federal 
        Government designated by that official;
          (4) Assistant to the President for Presidential 
        Personnel or a full-time officer or employee of the 
        Federal Government designated by that official;
          (5) Assistant Director for General Management, Office 
        of Management and Budget; and
          (6) At-large members appointed by the Chairman 
        pursuant to section 3(e) of this order.
    (d) The Council shall have a Vice Chairman selected by the 
Chairman from among the Council membership.
    Sec. 2. Functions of the Council.--
    (a) The Council shall serve as an interagency forum to 
discuss problems and recommend improvements in Government 
management and operations and to provide advice to the Chairman 
on matters pertaining to the management of the Federal 
Government. The Council shall:
          (1) assist in the formulation of short- and long-
        range plans to promote improvements in the management 
        and administrative systems and operations of the 
        Federal Government;
          (2) identify specific department and agency 
        management solutions that may have Governmentwide [sic] 
        application and assist in the dissemination of this 
        information and the implementation of these solutions;
          (3) serve as a resource to assist in an advisory 
        capacity in the development, review, revision, and 
        implementation of Governmentwide [sic] policies in 
        support of the central management agencies of the 
        Federal Government, including the Office of Management 
        and Budget, the Office of Personnel Management, and the 
        General Services Administration; and
          (4) serve as a forum to recommend solutions to 
        interagency management problems.
    (b) In conducting these functions, the Council shall not 
interfere with existing lines of authority and responsibility 
in the departments and agencies.
    Sec. 3. Responsibilities of the Chairman.--The Chairman 
shall--
    (a) establish, in consultation with the Council membership 
as he deems appropriate, procedures and agenda topics for the 
Council;
    (b) report, on behalf of the Council and as appropriate, to 
the President, the Director of the Office of Management and 
Budget, the agency heads, and the Cabinet on the goals and 
accomplishments of the Council;
    (c) establish such committees or working groups of the 
Council, including an executive committee, as the Chairman may 
find necessary or appropriate for the efficient conduct of 
Council functions;
    (d) appoint a Vice Chairman from among the Council's 
membership to assist the Chairman in representing the Council 
and to perform duties as determined by the Chairman;
    (e) appoint other full-time officers or employees of the 
Federal Government to the Council as at-large members for 
specific terms to provide special expertise to the Council and 
to perform duties as determined by the Chairman; and
    (f) be supported by the Assistant Director for General 
Management of the Office of Management and Budget, who shall 
advise and assist the Chairman in the execution of the 
responsibilities set forth above and act for the Chairman in 
his or her absence.
    Sec. 4. Administrative Provisions.--
    (a) The Director of the Office of Management and Budget 
shall provide the Council with administrative support as may be 
necessary for the performance of its functions.
    (b) To the extent permitted by law, the head of each agency 
represented on the Council shall provide its representative 
with such administrative support as necessary to enable the 
agency representative to carry out his or her responsibilities 
and to support the Governmentwide [sic] activities of the 
Council.
    Sec. 5. Revocation.--Executive Order No. 12479 [formerly 
set out as a note under this section] is revoked.
                                                       George Bush.

                         Memoranda of President

                      Oct. 1, 1993, 58 F.R. 52393

         Implementing Management Reform in the Executive Branch


     memorandum for the heads of executive departments and agencies


    The National Performance Review has examined how well the 
government serves its citizens, where it can improve, and where 
it is necessary to make fundamental changes to make government 
work better. It has presented its findings and 
recommendations--including the adoption of new management 
principles and structural reforms--to improve government 
throughout the Executive branch.
    In order to establish and implement more effective and 
efficient leadership and management principles throughout the 
Executive branch as identified in the National Performance 
Review, I hereby direct the following:
1. Establish Chief Operating Officers
    Each agency head shall designate a Chief Operating Officer, 
who shall be the Deputy or another official with agency-wide 
authority. The Chief Operating Officer shall report directly to 
the agency head and shall be responsible for:
    (a) implementing the President's and agency head's goals 
and the agency's mission;
    (b) providing overall organization management to improve 
agency performance;
    (c) assisting the agency head in promoting ongoing quality 
improvement, developing strategic plans, and measuring results;
    (d) directing ongoing reengineering of the agency's 
administrative processes;
    (e) overseeing agency-specific application of performance 
measures, procurement reforms, personnel reductions, financial 
management improvements, telecommunications and information 
technology policies, and other government-wide systems reforms 
adopted as a result of the recommendations of the National 
Performance Review; and
    (f) reforming the agency's management practices by 
incorporating the principles of the National Performance Review 
into day-to-day management.
2. Implement Additional Agency Reforms
    Each agency head shall identify and implement additional 
changes within the agency that will promote the principles and 
standards of the National Performance Review and the strategic 
and quality management approaches described by the Federal 
Quality Institute's ``Presidential Award for Quality'' or its 
successor award(s).
3. Establishment of President's Management Council
    In order to advise and assist the President and the Vice 
President in ensuring that the reforms adopted as a result of 
the National Performance Review are implemented throughout the 
Executive branch, I hereby establish the President's Management 
Council (``The Council''). The Council shall comprise the:
    (a) The Deputy Director for Management, Office of 
Management and Budget;
    (b) The Chief Operating Officers from the following 
agencies:
          (1) Department of State;
          (2) Department of the Treasury;
          (3) Department of Defense;
          (4) Department of Justice;
          (5) Department of the Interior;
          (6) Department of Agriculture;
          (7) Department of Commerce;
          (8) Department of Labor;
          (9) Department of Health and Human Services;
          (10) Department of Housing and Urban Development;
          (11) Department of Transportation;
          (12) Department of Energy;
          (13) Department of Education;
          (14) Department of Veterans Affairs;
          (15) Environmental Protection Agency;
    (c) The following central management agency 
representatives:
          (1) Director of the Office of Personnel Management;
          (2) Administrator of General Services;
    (d) Chief Operating Officers of three other Executive 
branch agencies designated by the Chairperson, in his or her 
discretion;
    (e) Secretary of the Cabinet; and
    (f) Such other officials of Executive departments and 
agencies as I may, from time to time, designate.
    The Deputy Director for Management of the Office of 
Management and Budget shall serve as Chairperson of the 
Council. The Chairperson of the Council shall appoint a Vice-
Chairperson from the Council's membership to assist the 
Chairperson in conducting the affairs of the Council.
    I also establish an Executive Committee of the Council. 
Members of the Executive Committee shall be: the Chairperson; 
the Vice Chairperson; the two central management agency 
representatives; two Chief Operating Officers serving on the 
Council, whom I shall designate, and any additional Council 
members whom I may, from time to time, designate.
    The Chairperson shall convene meetings of the Council, 
which shall be held at least once a month.
    The functions of the Council shall include, among others:
    (a) improving overall Executive branch management, 
including reform of government-wide management systems, such as 
management controls, financial management, personnel, 
budgeting, and procurement;
    (b) coordinating management-related efforts to improve 
government throughout the Executive branch and, as necessary, 
resolving specific interagency management issues;
    (c) ensuring the adoption of new management practices in 
agencies throughout the Executive branch; and
    (d) identifying examples of, and providing mechanisms for, 
interagency exchange of information about best management 
practices.
    The Council shall be provided with appropriate staff 
support and other resources as may be necessary to carry out 
its duties. In addition, the Federal Quality Institute shall 
serve as a resource to the Council.
    The Council shall seek advice and information as 
appropriate from nonmember Federal agencies, particularly 
smaller agencies. The Council shall also consider the 
management reform experience of corporations, nonprofit 
organizations, State and local governments, government 
employees, public sector unions, and customers of government 
services.
    Agencies shall cooperate with the Council and provide such 
assistance, information, and advice to the Council as the 
Council may request, to the extent permitted by law.
4. Independent Agencies
    Independent agencies are requested to adhere to this 
directive.
5. Judicial Review
    This directive is for the internal management of the 
Executive branch and does not create any right or benefit, 
substantive or procedural, enforceable by a party against the 
United States, its agencies or instrumentalities, its officers 
or employees, or any other person.
6. Publication
    The Director of the Office of Management and Budget is 
authorized and directed to publish this memorandum in the 
Federal Register.
                                                William J. Clinton.

SEC. 502. OFFICERS

    (a) The head of the Office of Management and Budget is the 
Director of the Office of Management and Budget. The Director 
is appointed by the President, by and with the advice and 
consent of the Senate. Under the direction of the President, 
the Director shall administer the Office.
    (b) The Office has a Deputy Director of the Office of 
Management and Budget, appointed by the President, by and with 
the advice and consent of the Senate. The Deputy Director--
          (1) shall carry out the duties and powers prescribed 
        by the Director; and
          (2) acts as the Director when the Director is absent 
        or unable to serve or when the office of Director is 
        vacant.
    (c) The Office has a Deputy Director for Management 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Director for Management shall be the 
chief official responsible for financial management in the 
United States Government.
    (d) The Office has 3 Assistant Directors who shall carry 
out the duties and powers prescribed by the Director.
    (e) The Office may have not more than 6 additional 
officers, each of whom is appointed in the competitive service 
by the Director, with the approval of the President. Each 
additional officer shall carry out the duties and powers 
prescribed by the Director. The Director shall specify the 
title of each additional officer.
    (f) When the Director and Deputy Director are absent or 
unable to serve or when the offices of Director and Deputy 
Director are vacant, the President may designate an officer of 
the Office to act as Director.

SEC. 503. FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT.

    (a) Subject to the direction and approval of the Director, 
the Deputy Director for Management shall establish 
governmentwide financial management policies for executive 
agencies and shall perform the following financial management 
functions:
          (1) Perform all functions of the Director, including 
        all functions delegated by the President to the 
        Director, relating to financial management.
          (2) Provide overall direction and leadership to the 
        executive branch on financial management matters by 
        establishing financial management policies and 
        requirements, and by monitoring the establishment and 
        operation of Federal Government financial management 
        systems.
          (3) Review agency budget requests for financial 
        management systems and operations, and advise the 
        Director on the resources required to develop and 
        effectively operate and maintain Federal Government 
        financial management systems and to correct major 
        deficiencies in such systems.
          (4) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they are in 
        accordance with financial management plans of the 
        Office of Management and Budget.
          (5) Monitor the financial execution of the budget in 
        relation to actual expenditures, including timely 
        performance reports.
          (6) Oversee, periodically review, and make 
        recommendations to heads of agencies on the 
        administrative structure of agencies with respect to 
        their financial management activities.
          (7) Develop and maintain qualification standards for 
        agency Chief Financial Officers and for agency Deputy 
        Chief Financial Officers appointed under sections 901 
        and 903, respectively.
          (8) Provide advice to agency heads with respect to 
        the selection of agency Chief Financial Officers and 
        Deputy Chief Financial Officers.
          (9) Provide advice to agencies regarding the 
        qualifications, recruitment, performance, and retention 
        of other financial management personnel.
          (10) Assess the overall adequacy of the professional 
        qualifications and capabilities of financial management 
        staffs throughout the Government and make 
        recommendations on ways to correct problems which 
        impair the capacity of those staffs.
          (11) Settle differences that arise among agencies 
        regarding the implementation of financial management 
        policies.
          (12) Chair the Chief Financial Officers Council 
        established by section 302 of the Chief Financial 
        Officers Act of 1990.
          (13) Communicate with the financial officers of State 
        and local governments, and foster the exchange with 
        those officers of information concerning financial 
        management standards, techniques, and processes.
          (14) Issue such other policies and directives as may 
        be necessary to carry out this section, and perform any 
        other function prescribed by the Director.
  (b) Subject to the direction and approval of the Director, 
the Deputy Director for Management shall establish general 
management policies for executive agencies and perform the 
following general management functions:
          (1) Coordinate and supervise the general management 
        functions of the Office of Management and Budget.
          (2) Perform all functions of the Director, including 
        all functions delegated by the President to the 
        Director, relating to--
                  (A) managerial systems, including the 
                systematic measurement of performance;
                  (B) procurement policy;
                  (C) grant, cooperative agreement, and 
                assistance management;
                  (D) information and statistical policy;
                  (E) property management;
                  (F) human resources management;
                  (G) regulatory affairs; and
                  (H) other management functions, including 
                organizational studies, long-range planning, 
                program evaluation, productivity improvement, 
                and experimentation and demonstration programs.
          (3) Provide complete, reliable, and timely 
        information to the President, the Congress, and the 
        public regarding the management activities of the 
        executive branch.
          (4) Facilitate actions by the Congress and the 
        executive branch to improve the management of Federal 
        Government operations and to remove impediments to 
        effective administration.
          (5) Provide leadership in management innovation, 
        through--
                  (A) experimentation, testing, and 
                demonstration programs; and
                  (B) the adoption of modern management 
                concepts and technologies.
          (6) Work with State and local governments to improve 
        and strengthen intergovernmental relations, and provide 
        assistance to such governments with respect to 
        intergovernmental programs and cooperative 
        arrangements.
          (7) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they respond to 
        program evaluations by, and are in accordance with 
        general management plans of, the Office of Management 
        and Budget.
          (8) Provide advice to agencies on the qualification, 
        recruitment, performance, and retention of managerial 
        personnel.
          (9) Perform any other functions prescribed by the 
        Director.

SEC. 504. OFFICE OF FEDERAL FINANCIAL MANAGEMENT.

  (a) There is established in the Office of Management and 
Budget an office to be known as the ``Office of Federal 
Financial Management''. The Office of Federal Financial 
Management, under the direction and control of the Deputy 
Director for Management of the Office of Management and Budget, 
shall carry out the financial management functions listed in 
section 503(a) of this title.
  (b) There shall be at the head of the Office of Federal 
Financial Management a Controller, who shall be appointed by 
the President, by and with the advice and consent of the 
Senate. The Controller shall be appointed from among 
individuals who possess--
          (1) demonstrated ability and practical experience in 
        accounting, financial management, and financial 
        systems; and
          (2) extensive practical experience in financial 
        management in large governmental or business entities.
  (c) The Controller of the Office of Federal Financial 
Management shall be the deputy and principal advisor to the 
Deputy Director for Management in the performance by the Deputy 
Director for Management of functions described in section 
503(a).

SEC. 505. OFFICE OF INFORMATION AND REGULATORY AFFAIRS.

  The Office of Information and Regulatory Affairs, established 
under section 3503 of title 44, is an office in the Office of 
Management and Budget.

SEC. 506. OFFICE OF FEDERAL PROCUREMENT POLICY

  The Office of Federal Procurement Policy, established under 
section 5(a) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 404(a)), is an office in the Office of Management 
and Budget.

                       Subchapter I--Organization

SEC. 521. EMPLOYEES.

  The Director of the Office of Management and Budget shall 
appoint and fix the pay of employees of the Office under 
regulations prescribed by the President.

SEC. 522. NECESSARY EXPENDITURES.

  The Director of the Office of Management and Budget may make 
necessary expenditures for the Office under regulations 
prescribed by the President.
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
503.......................................  22 C.F.R. 518               
                                            OMB: Circulars A-21, A-73, A-
                                             87, A-102, A-110           
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                          Subtitle I--General

          * * * * * * *

                  CHAPTER 7--GENERAL ACCOUNTING OFFICE

           Subchapter I--Definitions and General Organization

SEC. 701. DEFINITIONS.

  In this chapter--
          (1) ``agency'' includes the District of Columbia 
        government but does not include the legislative branch 
        or the Supreme Court.
          (2) ``appropriations'' means appropriated amounts and 
        includes, in appropriate context--
                  (A) funds;
                  (B) authority to make obligations by contract 
                before appropriations; and
                  (C) other authority making amounts available 
                for obligation or expenditure.

SEC. 702. GENERAL ACCOUNTING OFFICE.

  (a) The General Accounting Office is an instrumentality of 
the United States Government independent of the executive 
departments.
  (b) The head of the Office is the Comptroller General of the 
United States. The Office has a Deputy Comptroller General of 
the United States.
  (c) The Comptroller General may adopt a seal for the Office.
  [(d) Redesignated (c)]

SEC. 703. COMPTROLLER GENERAL AND DEPUTY COMPTROLLER GENERAL.

  (a)(1) The Comptroller General and Deputy Comptroller General 
are appointed by the President, by and with the advice and 
consent of the Senate.
  (2) When a vacancy occurs in the office of Comptroller 
General or Deputy Comptroller General, a commission is 
established to recommend individuals to the President for 
appointment to the vacant office. The commission shall be 
composed of--
          (A) the Speaker of the House of Representatives;
          (B) the President pro tempore of the Senate;
          (C) the majority and minority leaders of the House of 
        Representatives and the Senate;
          (D) the chairmen and ranking minority members of the 
        Committee on Governmental Affairs of the Senate and the 
        Committee on Government Operations of the House; and
          (E) when the office of Deputy Comptroller General is 
        vacant, the Comptroller General.
  (3) A commission established because of a vacancy in the 
office of the Comptroller General shall recommend at least 3 
individuals. The President may ask the commission to recommend 
additional individuals.
  (b) Except as provided in subsection (e) of this section, the 
term of the Comptroller General is 15 years. The Comptroller 
General may not be reappointed. The term of the Deputy 
Comptroller General expires on the date an individual is 
appointed Comptroller General. The Deputy Comptroller General 
may continue to serve until a successor is appointed.
  (c) The Deputy Comptroller General--
          (1) carries out duties and powers prescribed by the 
        Comptroller General; and
          (2) acts for the Comptroller General when the 
        Comptroller General is absent or unable to serve or 
        when the office of Comptroller General is vacant.
  (d) The Comptroller General shall designate an officer or 
employee of the General Accounting Office to act as Comptroller 
General when the Comptroller General and Deputy Comptroller 
General are absent or unable to serve or when the offices of 
Comptroller General and Deputy Comptroller General are vacant.
  (e)(1) A Comptroller General or Deputy Comptroller General 
may retire after becoming 70 years of age and completing 10 
years of service as Comptroller General or Deputy Comptroller 
General (as the case may be). Either may be removed at any time 
by--
          (A) impeachment; or
          (B) joint resolution of Congress, after notice and an 
        opportunity for a hearing, only for--
                  (i) permanent disability;
                  (ii) inefficiency;
                  (iii) neglect of duty;
                  (iv) malfeasance; or
                  (v) a felony or conduct involving moral 
                turpitude.
  (2) A Comptroller General or Deputy Comptroller General 
removed from office under paragraph (1) of this subsection may 
not be reappointed to the office.
  (f) The annual rate of basic pay of the--
          (1) Comptroller General is equal to the rate for 
        level II of the Executive Schedule; and
          (2) Deputy Comptroller General is equal to the rate 
        for level III of the Executive Schedule.

                Subchapter II--General Duties and Powers

SEC. 711. GENERAL AUTHORITY.

  The Comptroller General may--
          (1) prescribe regulations to carry out the duties and 
        powers of the Comptroller General;
          (2) delegate the duties and powers of the Comptroller 
        General to officers and employees of the General 
        Accounting Office as the Comptroller General decides is 
        necessary to carry out those duties and powers;
          (3) regulate the practice of representatives of 
        persons before the Office; and
          (4) administer oaths to witnesses when auditing and 
        settling accounts.

SEC. 712. INVESTIGATING THE USE OF PUBLIC MONEY.

  The Comptroller General shall--
          (1) investigate all matters related to the receipt, 
        disbursement, and use of public money;
          (2) estimate the cost to the United States Government 
        of complying with each restriction on expenditures of a 
        specific appropriation in a general appropriation law 
        and report each estimate to Congress with 
        recommendations the Comptroller General considers 
        desirable;
          (3) analyze expenditures of each executive agency the 
        Comptroller General believes will help Congress decide 
        whether public money has been used and expended 
        economically and efficiently;
          (4) make an investigation and report ordered by 
        either House of Congress or a committee of Congress 
        having jurisdiction over revenue, appropriations, or 
        expenditures; and
          (5) give a committee of Congress having jurisdiction 
        over revenue, appropriations, or expenditures the help 
        and information the committee requests.

SEC. 713. AUDIT OF INTERNAL REVENUE SERVICE AND BUREAU OF ALCOHOL, 
                    TOBACCO, AND FIREARMS.

  (a) Under regulations of the Comptroller General, the 
Comptroller General shall audit the Internal Revenue Service 
and the Bureau of Alcohol, Tobacco, and Firearms, of the 
Department of the Treasury. An audit under this section does 
not affect a final decision of the Secretary of the Treasury 
under section 6406 of the Internal Revenue Code of 1954 (26 
U.S.C. 6406).
  (b)(1) To carry out this section and to the extent provided 
by and only subject to section 6103 of the Internal Revenue 
Code of 1954 (26 U.S.C. 6103)--
          (A) returns and return information (as defined in 
        section 6103(b) of the Internal Revenue Code of 1954 
        (26 U.S.C. 6103(b)) shall be made available to the 
        Comptroller General; and
          (B) records and property of, or used by, the Service 
        or the Bureau, shall be made available to the 
        Comptroller General.
  (2) At least once every 6 months, the Comptroller General 
shall designate each officer and employee of the General 
Accounting Office by name and title to whom returns, return 
information, or records or property of the Service or the 
Bureau that can identify a particular taxpayer may be made 
available. Each designation or a certified copy of the 
designation shall be sent to the Committee on Finance of the 
Senate, the Committee on Ways and Means of the House of 
Representatives, the Committee on Governmental Affairs of the 
Senate, the Committee on Government Operations of the House, 
the Joint Committee on Taxation, the Commissioner of Internal 
Revenue, and the Director of the Bureau.
  (3) Except as expressly provided by law, an officer or 
employee of the Office may make known information derived from 
a record or property of, or in use by, the Service or the 
Bureau that can identify a particular taxpayer only to another 
officer or employee of the Office whose duties or powers 
require that the record or property be made known.

SEC. 714. AUDIT OF FINANCIAL INSTITUTIONS EXAMINATION COUNCIL, FEDERAL 
                    RESERVE BOARD, FEDERAL RESERVE BANKS, FEDERAL 
                    DEPOSIT INSURANCE CORPORATION, AND OFFICE OF 
                    COMPTROLLER OF THE CURRENCY.

  (a) In this section, ``agency'' means the Financial 
Institutions Examination Council, the Federal Reserve Board, 
Federal reserve banks, the Federal Deposit Insurance 
Corporation, the Office of the Comptroller of the Currency, and 
the Office of Thrift Supervision.
  (b) Under regulations of the Comptroller General, the 
Comptroller General shall audit an agency, but may carry out an 
onsite examination of an open insured bank or bank holding 
company only if the appropriate agency has consented in 
writing. Audits of the Federal Reserve Board and Federal 
reserve banks may not include--
          (1) transactions for or with a foreign central bank, 
        government of a foreign country, or nonprivate 
        international financing organization;
          (2) deliberations, decisions, or actions on monetary 
        policy matters, including discount window operations, 
        reserves of member banks, securities credit, interest 
        on deposits, and open market operations;
          (3) transactions made under the direction of the 
        Federal Open Market Committee; or
          (4) a part of a discussion or communication among or 
        between members of the Board of Governors and officers 
        and employees of the Federal Reserve System related to 
        clauses (1)-(3) of this subsection.
  (c)(1) Except as provided in this subsection, an officer or 
employee of the General Accounting Office may not disclose 
information identifying an open bank, an open bank holding 
company, or a customer of an open or closed bank or bank 
holding company. The Comptroller General may disclose 
information related to the affairs of a closed bank or closed 
bank holding company identifying a customer of the closed bank 
or closed bank holding company only if the Comptroller General 
believes the customer had a controlling influence in the 
management of the closed bank or closed bank holding company or 
was related to or affiliated with a person or group having a 
controlling influence.
  (2) An officer or employee of the Office may discuss a 
customer, bank, or bank holding company with an official of an 
agency and may report an apparent criminal violation to an 
appropriate law enforcement authority of the United States 
Government or a State.
  (3) This subsection does not authorize an officer or employee 
of an agency to withhold information from a committee of 
Congress authorized to have the information.
  (d)(1) To carry out this section, all records and property of 
or used by an agency, including samples of reports of 
examinations of a bank or bank holding company the Comptroller 
General considers statistically meaningful and workpapers and 
correspondence related to the reports shall be made available 
to the Comptroller General. The Comptroller General shall give 
an agency a current list of officers and employees to whom, 
with proper identification, records and property may be made 
available, and who may make notes or copies necessary to carry 
out an audit. An agency shall give the Comptroller General 
suitable and lockable offices and furniture, telephones, and 
access to copying facilities.
  (2) Except for the temporary removal of workpapers of the 
Comptroller General that do not identify a customer of an open 
or closed bank or bank holding company, an open bank, or an 
open bank holding company, all workpapers of the Comptroller 
General and records and property of or used by an agency that 
the Comptroller General possesses during an audit, shall remain 
in the agency. The Comptroller General shall prevent 
unauthorized access to records or property.

SEC. 715. AUDIT OF ACCOUNTS AND OPERATIONS OF THE DISTRICT OF COLUMBIA 
                    GOVERNMENT.

    (a) In addition to the audit carried out under section 455 
of the District of Columbia Self-Government and Governmental 
Reorganization Act (Public Law 93-198, 87 Stat. 803; D.C.Code, 
Sec. 47-117), the Comptroller General each year shall audit the 
accounts and operations of the District of Columbia government. 
An audit shall be carried out according to principles, under 
regulations, and in a way the Comptroller General prescribes. 
When prescribing the procedures to follow and the extent of the 
inspection of records, the Comptroller General shall consider 
generally accepted principles of auditing, including the 
effectiveness of accounting organizations and systems, internal 
audit and control, and related administrative practices.
    (b) The Comptroller General shall submit each audit report 
to Congress and the Mayor and Council of the District of 
Columbia. The report shall include the scope of an audit, 
information the Comptroller General considers necessary to keep 
Congress, the Mayor, and the Council informed of operations 
audited, and recommendations the Comptroller General considers 
advisable.
    (c)(1) By the 90th day after receiving an audit report from 
the Comptroller General, the Mayor shall state in writing to 
the Council measures the District of Columbia government is 
taking to comply with the recommendations of the Comptroller 
General. A copy of the statement shall be sent to Congress.
    (2) After the Council receives the statement of the Mayor, 
the Council may make available for public inspection the report 
of the Comptroller General and other material the Council 
considers pertinent.
    (d) To carry out this section, records and property of or 
used by the District of Columbia government necessary to make 
an audit easier shall be made available to the Comptroller 
General. The Mayor shall provide facilities to carry out an 
audit.
    (e) Not later than March 1 of each year, the Comptroller 
General shall submit to the Committee on the District of 
Columbia of the House of Representatives and the Subcommittee 
on General Services, Federalism, and the District of Columbia 
of the Committee on Governmental Affairs of the Senate a review 
of the report of the breakdown of the independently audited 
revenues of the District of Columbia for the preceding fiscal 
year by revenues derived from the Federal Government and 
revenues derived from sources other than the Federal Government 
that is included in the independent annual audit of the funds 
of the District of Columbia conducted for such fiscal year.

SEC. 716. AVAILABILITY OF INFORMATION AND INSPECTION OF RECORDS.

    (a) Each agency shall give the Comptroller General 
information the Comptroller General requires about the duties, 
powers, activities, organization, and financial transactions of 
the agency. The Comptroller General may inspect an agency 
record to get the information. This subsection does not apply 
to expenditures made under section 3524 or 3526(e) of this 
title.
    (b)(1) When an agency record is not made available to the 
Comptroller General within a reasonable time, the Comptroller 
General may make a written request to the head of the agency. 
The request shall state the authority for inspecting the 
records and the reason for the inspection. The head of the 
agency has 20 days after receiving the request to respond. The 
response shall describe the record withheld and the reason the 
record is being withheld. If the Comptroller General is not 
given an opportunity to inspect the record within the 20-day 
period, the Comptroller General may file a report with the 
President, the Director of the Office of Management and Budget, 
the Attorney General, the head of the agency, and Congress.
    (2) Through an attorney the Comptroller General designates 
in writing, the Comptroller General may bring a civil action in 
the district court of the United States for the District of 
Columbia to require the head of the agency to produce a 
record--
          (A) after 20 days after a report is filed under 
        paragraph (1) of this subsection; and
          (B) subject to subsection (d) of this section.
    (3) The Attorney General may represent the head of the 
agency. The court may punish a failure to obey an order of the 
court under this subsection as a contempt of court.
    (c)(1) Subject to subsection (d) of this section, the 
Comptroller General may subpena a record of a person not in the 
United States Government when the record is not made available 
to the Comptroller General to which the Comptroller General has 
access by law or by agreement of that person from whom access 
is sought. A subpena shall identify the record and the 
authority for the inspection and may be issued by the 
Comptroller General. The Comptroller General may have an 
individual serve a subpena under this subsection by delivering 
a copy to the person named in the subpena or by mailing a copy 
of the subpena by certified or registered mail, return receipt 
requested, to the residence or principal place of business of 
the person. Proof of service is shown by a verified return by 
the individual serving the subpena that states how the subpena 
was served or by the return receipt signed by the person 
served.
    (2) If a person residing, found, or doing business in a 
judicial district refuses to comply with a subpoena issued 
under paragraph (1) of this subsection, the Comptroller 
General, through an attorney the Comptroller General designates 
in writing, may bring a civil action in that district court to 
require the person to produce the record. The court has 
jurisdiction of the action and may punish a failure to obey an 
order of the court under this subsection as a contempt of 
court.
    (d)(1) The Comptroller General may not bring a civil action 
for a record withheld under subsection (b) of this section or 
issue a subpena under subsection (c) of this section if--
          (A) the record related to activities the President 
        designates as foreign intelligence or 
        counterintelligence activities;
          (B) the record is specifically exempted from 
        disclosure to the Comptroller General by a statute 
        that--
                  (i) without discretion requires that the 
                record be withheld from the Comptroller 
                General;
                  (ii) establishes particular criteria for 
                withholding the record from the Comptroller 
                General; or
                  (iii) refers to particular types of records 
                to be withheld from the Comptroller General; or
          (C) by the 20th day after a report is filed under 
        subsection (b)(1) of this section, the President or the 
        Director certifies to the Comptroller General and 
        Congress that a record could be withheld under section 
        552(b)(5) or (7) of title 5 and disclosure reasonably 
        could be expected to impair substantially the 
        operations of the Government.
    (2) The President or the Director may not delegate 
certification under paragraph (1)(C) of this subsection. A 
certification shall include a complete explanation of the 
reasons for the certification.
    (e)(1) The Comptroller General shall maintain the same 
level of confidentiality for a record made available under this 
section as is required of the head of the agency from which it 
is obtained. Officers and employees of the General Accounting 
Office are subject to the same statutory penalties for 
unauthorized disclosure or use as officers or employees of the 
agency.
    (2) The Comptroller General shall keep information 
described in section 552(b)(6) of title 5 that the Comptroller 
General obtains in a way that prevents unwarranted invasions of 
personal privacy.
    (3) This section does not authorize information to be 
withheld from Congress.

SEC. 717. EVALUATING PROGRAMS AND ACTIVITIES OF THE UNITED STATES 
                    GOVERNMENT.

    (a) In this section, ``agency'' means a department, agency, 
or instrumentality of the United States Government (except a 
mixed-ownership Government corporation) or the District of 
Columbia government.
    (b) The Comptroller General shall evaluate the results of a 
program or activity the Government carries out under existing 
law--
          (1) on the initiative of the Comptroller General;
          (2) when either House of Congress orders an 
        evaluation; or
          (3) when a committee of Congress with jurisdiction 
        over the program or activity requests the evaluation.
    (c) The Comptroller General shall develop and recommend to 
Congress ways to evaluate a program or activity the Government 
carries out under existing law.
    (d)(1) On request of a committee of Congress, the 
Comptroller General shall help the committee to--
          (A) develop a statement of legislative goals and ways 
        to assess and report program performance related to the 
        goals, including recommended ways to assess 
        performance, information to be reported, responsibility 
        for reporting, frequency of reports, and feasibility of 
        pilot testing; and
          (B) assess program evaluations prepared by and for an 
        agency.
    (2) On request of a member of Congress, the Comptroller 
General shall give the member a copy of the material the 
Comptroller General compiles in carrying out this subsection 
that has been released by the committee for which the material 
was compiled.

SEC. 718. AVAILABILITY OF DRAFT REPORTS.

    (a) A draft report of an audit under section 714 of this 
title shall be submitted to the Financial Institutions 
Examination Council, the Federal Reserve Board, the Federal 
Deposit Insurance Corporation, or the Office of the Comptroller 
of the Currency for comment for 30 days.
    (b)(1) The Comptroller General may submit a part of a draft 
report to an agency for comment for more than 30 days only if 
the Comptroller General decides, after a showing by the agency, 
that a longer period is necessary and likely to result in a 
more accurate report. The report may not be delayed because the 
agency does not comment within the comment period.
    (2) When a draft report is submitted to an agency for 
comment, the Comptroller General shall make the draft report 
available on request to--
          (A) either House of Congress, a committee of 
        Congress, or a member of Congress if the report was 
        begun because of a request of the House, committee, or 
        member; or
          (B) the Committee on Governmental Affairs of the 
        Senate and the Committee on Government Operations of 
        the House of Representatives if the report was not 
        begun because of a request of either House of Congress, 
        a committee of Congress, or a member of Congress.
    (3) This subsection is subject to statutory and executive 
order guidelines for handling and storing classified 
information and material.
    (c) A final report of the Comptroller General shall 
include--
          (1) a statement of significant changes of a finding, 
        conclusion, or recommendation in an earlier draft 
        report because of comments on the draft by an agency;
          (2) a statement of the reasons the changes were made; 
        and
          (3) for a draft report submitted under subsection (a) 
        of this section, written comments of the agency 
        submitted during the comment period.

SEC. 719. COMPTROLLER GENERAL REPORTS.

    (a) At the beginning of each regular session of Congress, 
the Comptroller General shall report to Congress (and to the 
President when requested by the President) on the work of the 
Comptroller General. A report shall include recommendations 
on--
          (1) legislation the Comptroller General considers 
        necessary to make easier the prompt and accurate making 
        and settlement of accounts; and
          (2) other matters related to the receipt, 
        disbursement, and use of public money the Comptroller 
        General considers advisable.
    (b)(1) the Comptroller General shall include in the report 
to Congress under subsection (a) of this section--
          (A) a review of activities under sections 717(b)-(d) 
        and 731(e)(2) of this title, including recommendations 
        under section 717(c) of this title;
          (B) information on carrying out duties and powers of 
        the Comptroller General under clauses (A) and (C) of 
        this paragraph, subsections (g) and (h) of this 
        section, and sections 717, 731(e)(2), 734, 1112, and 
        1113 of this title; and
          (C) the name of each officer and employee of the 
        General Accounting Office assigned or detailed to a 
        committee of Congress, the committee to which the 
        officer or employee is assigned or detailed, the length 
        of the period of assignment or detail, a statement on 
        whether the assignment or detail is finished or 
        continuing, and compensation paid out of appropriations 
        available to the Comptroller General for the period of 
        the assignment or detail that has been completed.
    (2) In a report under subsection (a) of this section or in 
a special report to Congress when Congress is in session, the 
Comptroller General shall include recommendations on greater 
economy and efficiency in public expenditures.
    (c) The Comptroller General shall report to Congress--
          (1) specially on expenditures and contracts an agency 
        makes in violation of law;
          (2) on the adequacy and effectiveness of--
                  (A) administrative audits of accounts and 
                claims in an agency; and
                  (B) inspections by an agency of offices and 
                accounts of fiscal officials; and
          (3) as frequently as practicable on audits carried 
        out under sections 713 and 714 of this title.
    (d) The Comptroller General shall report each year to the 
Committees on Finance and Governmental Affairs of the Senate, 
the Committees on Ways and Means and Government Operations of 
the House of Representatives, and the Joint Committee on 
Taxation. Each report shall include--
          (1) procedures and requirements the Comptroller 
        General, the Commissioner of Internal Revenue, and the 
        Director of the Bureau of Alcohol, Tobacco, and 
        Firearms, prescribe to protect the confidentiality of 
        returns and return information made available to the 
        Comptroller General under section 713(b)(1) of this 
        title;
          (2) the scope and subject matter of audits under 
        section 713 of this title; and
          (3) findings, conclusions, or recommendations the 
        Comptroller General develops as a result of an audit 
        under section 713 of this title, including significant 
        evidence of inefficiency or mismanagement.
    (e) The Comptroller General shall report on analyses 
carried out under section 712(3) of this title to the 
Committees on Governmental Affairs and Appropriations of the 
Senate, the Committees on Government Operations and 
Appropriations of the House, and the committees with 
jurisdiction over legislation related to the operation of each 
executive agency.
    (f) The Comptroller General shall give the President 
information on expenditures and accounting the President 
requests.
    (g) When the Comptroller General submits a report to 
Congress, the Comptroller General shall deliver copies of the 
report to--
          (1) the Committees on Governmental Affairs and 
        Appropriations of the Senate;
          (2) the Committees on Government Operations and 
        Appropriations of the House;
          (3) a committee of Congress that requested 
        information on any part of a program or activity of a 
        department, agency, or instrumentality of the United 
        States Government (except a mixed-ownership Government 
        corporation) or the District of Columbia government 
        that is the subject of any part of a report; and
          (4) any other committee of Congress requesting a 
        copy.
    (h)(1) The Comptroller General shall prepare--
          (A) each month a list of reports issued during the 
        prior month; and
          (B) at least once each year a list of reports issued 
        during the prior 12 months.
    (2) A copy of each list shall be sent to each committee of 
Congress and each member of Congress. On request, the 
Comptroller General promptly shall provide a copy of a report 
to a committee or member.
    (i) On request of a committee of Congress, the Comptroller 
General shall explain to and discuss with the committee or 
committee staff a report the Comptroller General makes that 
would help the committee--
          (1) evaluate a program or activity of an agency 
        within the jurisdiction of the committee; or
          (2) in its consideration of proposed legislation.

SEC. 720. AGENCY REPORTS.

    (a) In this section, ``agency'' means a department, agency, 
or instrumentality of the United States Government (except a 
mixed-ownership Government corporation) or the District of 
Columbia government.
    (b) When the Comptroller General makes a report that 
includes a recommendation to the head of an agency, the head of 
the agency shall submit a written statement on action taken on 
the recommendation by the head of the agency. The statement 
shall be submitted to--
          (1) the Committee on Governmental Affairs of the 
        Senate and the Committee on Government Operations of 
        the House of Representatives before the 61st day after 
        the date of the report; and
          (2) the Committees on Appropriations of both Houses 
        of Congress in the first request for appropriations 
        submitted more than 60 days after the date of the 
        report.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
711.......................................  4 C.F.R. 11, 30-36, 51-53,  
                                             75, 81-83, 91, 92; 43      
                                             C.F.R. 17                  
712                                                                     
713-714...................................  4 C.F.R. 82                 
713.......................................  GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
714.......................................  GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
715                                                                     
716.......................................  OMB: Circular A-34, see     
                                             appendix IV                
717                                                                     
718.......................................  4 C.F.R. 82                 
719                                                                     
720.......................................  OMB: Circular A-50, see     
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                          Subtitle I--General

          * * * * * * *

               CHAPTER 9--AGENCY CHIEF FINANCIAL OFFICERS

SEC. 901. ESTABLISHMENT OF AGENCY CHIEF FINANCIAL OFFICERS.

    (a) There shall be within each agency described in 
subsection (b) an agency Chief Financial Officer. Each agency 
Chief Financial Officer shall--
          (1) for those agencies described in subsection 
        (b)(1)--
                  (A) be appointed by the President, by and 
                with the advice and consent of the Senate; or
                  (B) be designated by the President, in 
                consultation with the head of the agency, from 
                among officials of the agency who are required 
                by law to be so appointed;
          (2) for those agencies described in subsection 
        (b)(2)--
                  (A) be appointed by the head of the agency;
                  (B) be in the competitive service or the 
                senior executive service; and
                  (C) be career appointees; and
          (3) be appointed or designated, as applicable, from 
        among individuals who possess demonstrated ability in 
        general management of, and knowledge of and extensive 
        practical experience in financial management practices 
        in large governmental or business entities.
    (b)(1) The agencies referred to in subsection (a)(1) are 
the following:
          (A) The Department of Agriculture.
          (B) The Department of Commerce.
          (C) The Department of Defense.
          (D) The Department of Education.
          (E) The Department of Energy.
          (F) The Department of Health and Human Services.
          (G) The Department of Housing and Urban Development.
          (H) The Department of the Interior.
          (I) The Department of Justice.
          (J) The Department of Labor.
          (K) The Department of State.
          (L) The Department of Transportation.
          (M) The Department of the Treasury.
          (N) The Department of Veterans Affairs.
          (O) The Environmental Protection Agency.
          (P) The National Aeronautics and Space 
        Administration.
    (2) The agencies referred to in subsection (a)(2) are the 
following:
          (A) The Agency for International Development.
          (B) The Federal Emergency Management Agency.
          (C) The General Services Administration.
          (D) The National Science Foundation.
          (E) The Nuclear Regulatory Commission.
          (F) The Office of Personnel Management.
          (G) The Small Business Administration.
          (H) The Social Security Administration.

SEC. 902. AUTHORITY AND FUNCTIONS OF AGENCY CHIEF FINANCIAL OFFICERS.

    (a) An agency Chief Financial Officer shall--
          (1) report directly to the head of the agency 
        regarding financial management matters;
          (2) oversee all financial management activities 
        relating to the programs and operations of the agency;
          (3) develop and maintain an integrated agency 
        accounting and financial management system, including 
        financial reporting and internal controls, which--
                  (A) complies with applicable accounting 
                principles, standards, and requirements, and 
                internal control standards;
                  (B) complies with such policies and 
                requirements as may be prescribed by the 
                Director of the Office of Management and 
                Budget;
                  (C) complies with any other requirements 
                applicable to such systems; and
                  (D) provides for--
                          (i) complete, reliable, consistent, 
                        and timely information which is 
                        prepared on a uniform basis and which 
                        is responsive to the financial 
                        information needs of agency management;
                          (ii) the development and reporting of 
                        cost information;
                          (iii) the integration of accounting 
                        and budgeting information; and
                          (iv) the systematic measurement of 
                        performance;
          (4) make recommendations to the head of the agency 
        regarding the selection of the Deputy Chief Financial 
        Officer of the agency;
          (5) direct, manage, and provide policy guidance and 
        oversight of agency financial management personnel, 
        activities, and operations, including--
                  (A) the preparation and annual revision of an 
                agency plan to--
                          (i) implement the 5-year financial 
                        management plan prepared by the 
                        Director of the Office of Management 
                        and Budget under section 3512(a)(3) of 
                        this title; and
                          (ii) comply with the requirements 
                        established under sections 3515 and 
                        subsections (e) and (f) of section 3521 
                        of this title;
                  (B) the development of agency financial 
                management budgets;
                  (C) the recruitment, selection, and training 
                of personnel to carry out agency financial 
                management functions;
                  (D) the approval and management of agency 
                financial management systems design or 
                enhancement projects;
                  (E) the implementation of agency asset 
                management systems, including systems for cash 
                management, credit management, debt collection, 
                and property and inventory management and 
                control
          (6) prepare and transmit, by not later than 60 days 
        after the submission of the audit report required by 
        section 3521(f) of this title, an annual report to the 
        agency head and the Director of the Office of 
        Management and Budget, which shall include--
                  (A) a description and analysis of the status 
                of financial management of the agency;
                  (B) the annual financial statements prepared 
                under section 3515 of this title;
                  (C) the audit report transmitted to the head 
                of the agency under section 3521(f) of this 
                title;
                  (D) a summary of the reports on internal 
                accounting and administrative control systems 
                submitted to the President and the Congress 
                under the amendments made by the Federal 
                Managers' Financial Integrity Act of 1982 
                (Public Law 97-255); and
                  (E) other information the head of the agency 
                considers appropriate to fully inform the 
                President and the Congress concerning the 
                financial management of the agency;
          (7) monitor the financial execution of the budget of 
        the agency in relation to actual expenditures, and 
        prepare and submit to the head of the agency timely 
        performance reports; and
          (8) review, on a biennial basis, the fees, royalties, 
        rents, and other charges imposed by the agency for 
        services and things of value it provides, and make 
        recommendations on revising those charges to reflect 
        costs incurred by it in providing those services and 
        things of value.
    (b)(1) In addition to the authority otherwise provided by 
this section, each agency Chief Financial Officer--
          (A) subject to paragraph (2), shall have access to 
        all records, reports, audits, reviews, documents, 
        papers, recommendations, or other material which are 
        the property of the agency or which are available to 
        the agency, and which relate to programs and operations 
        with respect to which that agency Chief Financial 
        Officer has responsibilities under this section;
          (B) may request such information or assistance as may 
        be necessary for carrying out the duties and 
        responsibilities provided by this section from any 
        Federal, State, or local governmental entity; and
          (C) to the extent and in such amounts as may be 
        provided in advance by appropriations Acts, may--
                  (i) enter into contracts and other 
                arrangements with public agencies and with 
                private persons for the preparation of 
                financial statements, studies, analyses, and 
                other services; and
                  (ii) make such payments as may be necessary 
                to carry out the provisions of this section.
    (2) Except as provided in paragraph (1)(B), this subsection 
does not provide to an agency Chief Financial Officer any 
access greater than permitted under any other law to records, 
reports, audits, reviews, documents, papers, recommendations, 
or other material of any Office of Inspector General 
established under the Inspector General Act of 1978 (5 
U.S.C.App.).

SEC. 903. ESTABLISHMENT OF AGENCY DEPUTY CHIEF FINANCIAL OFFICERS.

    (a) There shall be within each agency described in section 
901(b) an agency Deputy Chief Financial Officer, who shall 
report directly to the agency Chief Financial Officer on 
financial management matters. The position of agency Deputy 
Chief Financial Officer shall be a career reserved position in 
the Senior Executive Service.
    (b) Consistent with qualification standards developed by, 
and in consultation with, the agency Chief Financial Officer 
and the Director of the Office of Management and Budget, the 
head of each agency shall appoint as Deputy Chief Financial 
Officer an individual with demonstrated ability and experience 
in accounting, budget execution, financial and management 
analysis, and systems development, and not less than 6 years 
practical experience in financial management at large 
governmental entities.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
902.......................................  10 C.F.R. 170               
902(a)....................................  OMB: Circular A-129, see    
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                    Subtitle II--The Budget Process

          * * * * * * *

   CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

SEC. 1101. DEFINITIONS.

  In this chapter--
          (1) ``agency'' includes the District of Columbia 
        government but does not include the legislative branch 
        or the Supreme Court.
          (2) ``appropriations'' means appropriated amounts and 
        includes, in appropriate context--
                  (A) funds;
                  (B) authority to make obligations by contract 
                before appropriations; and
                  (C) other authority making amounts available 
                for obligation or expenditure.

SEC. 1102. FISCAL YEAR.

  The fiscal year of the Treasury begins on October 1 of each 
year and ends on September 30 of the following year. Accounts 
of receipts and expenditures required under law to be published 
each year shall be published for the fiscal year.

SEC. 1103. BUDGET CEILING.

  Congress reaffirms its commitment that budget outlays of the 
United States Government for a fiscal year may be not more than 
the receipts of the Government for that year.

SEC. 1104. BUDGET AND APPROPRIATIONS AUTHORITY OF THE PRESIDENT.

  (a) The President shall prepare budgets of the United States 
Government under section 1105 of this title and proposed 
deficiency and supplemental appropriations under section 1107 
of this title. To the extent practicable, the President shall 
use uniform terms in stating the purposes and conditions of 
appropriations.
  (b) Except as provided in this chapter, the President shall 
prescribe the contents and order of statements in the budget on 
expenditures and estimated expenditures and statements on 
proposed appropriations and information submitted with the 
budget and proposed appropriations. The President shall include 
with the budget and proposed appropriations information on 
personnel and other objects of expenditure in the way that 
information was included in the budget for fiscal year 1950. 
However, the requirement that information be included in the 
budget in that way may be waived or changed by joint action of 
the Committees on Appropriations of both Houses of Congress. 
This subsection does not limit the authority of a committee of 
Congress to request information in a form it prescribes.
  (c) When the President makes a basic change in the form of 
the budget, the President shall submit with the budget 
information showing where items in the budget for the prior 
fiscal year are contained in the present budget. However, the 
President may change the functional categories in the budget 
only in consultation with the Committees on Appropriations and 
on the Budget of both Houses of Congress. Committees of the 
House of Representatives and Senate shall receive prompt 
notification of all such changes.
  (d) The President shall develop programs and prescribe 
regulations to improve the compilation, analysis, publication, 
and dissemination of statistical information by executive 
agencies. The President shall carry out this subsection through 
the Administrator for the Office of Information and Regulatory 
Affairs in the Office of Management and Budget.
  (e) Under regulations prescribed by the President, each 
agency shall provide information required by the President in 
carrying out this chapter. The President has access to, and may 
inspect, records of an agency to obtain information.

SEC. 1105. BUDGET CONTENTS AND SUBMISSION TO CONGRESS.

    (a) On or after the first Monday in January but not later 
than the first Monday in February of each year, the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
          (1) Information on activities and functions of the 
        Government.
          (2) When practicable, information on costs and 
        achievements of Government programs.
          (3) Other desirable classifications of information.
          (4) A reconciliation of the summary information on 
        expenditures with proposed appropriations.
          (5) Except as provided in subsection (b) of this 
        section, estimated expenditures and proposed 
        appropriations the President decides are necessary to 
        support the Government in the fiscal year for which the 
        budget is submitted and the 4 fiscal years after that 
        year.
          (6) Estimated receipts of the Government in the 
        fiscal year for which the budget is submitted and the 4 
        fiscal years after that year under--
                  (A) laws in effect when the budget is 
                submitted; and
                  (B) proposals in the budget to increase 
                revenues.
          (7) Appropriations, expenditures, and receipts of the 
        Government in the prior fiscal year.
          (8) Estimated expenditures and receipts, and 
        appropriations and proposed appropriations, of the 
        Government for the current fiscal year.
          (9) Balanced statements of the--
                  (A) condition of the Treasury at the end of 
                the prior fiscal year;
                  (B) estimated condition of the Treasury at 
                the end of the current fiscal year; and
                  (C) estimated condition of the Treasury at 
                the end of the fiscal year for which the budget 
                is submitted if financial proposals in the 
                budget are adopted.
          (10) Essential information about the debt of the 
        Government.
          (11) Other financial information the President 
        decides is desirable to explain in practicable detail 
        the financial condition of the Government.
          (12) For each proposal in the budget for legislation 
        that would establish or expand a Government activity or 
        function, a table showing--
                  (A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in the fiscal year for which the 
                budget is submitted; and
                  (B) the estimated appropriation required 
                because of the proposal for each of the 4 
                fiscal years after that year that the proposal 
                will be in effect.
          (13) An allowance for additional estimated 
        expenditures and proposed appropriations for the fiscal 
        year for which the budget is submitted.
          (14) An allowance for unanticipated uncontrollable 
        expenditures for that year.
          (15) A separate statement on each of the items 
        referred to in section 301(a)(1)-(5) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 632(a)(1)-
        (5)).
          (16) The level of tax expenditures under existing law 
        in the tax expenditures budget (as defined in section 
        3(a)(3) of the Congressional Budget Act of 1974 (2 
        U.S.C. 622(a)(3)) for the fiscal year for which the 
        budget is submitted, considering projected economic 
        factors and changes in the existing levels based on 
        proposals in the budget.
          (17) Information on estimates of appropriations for 
        the fiscal year following the fiscal year for which the 
        budget is submitted for grants, contracts, and other 
        payments under each program for which there is an 
        authorization of appropriations for that following 
        fiscal year when the appropriations are authorized to 
        be included in an appropriation law for the fiscal year 
        before the fiscal year in which the appropriation is to 
        be available for obligation.
          (18) A comparison of the total amount of budget 
        outlays for the prior fiscal year, estimated in the 
        budget submitted for that year, for each major program 
        having relatively uncontrollable outlays with the total 
        amount of outlays for that program in that year.
          (19) A comparison of the total amount of receipts for 
        the prior fiscal year, estimated in the budget 
        submitted for that year, with receipts received in that 
        year, and for each major source of receipts, a 
        comparison of the amount of receipts estimated in that 
        budget with the amount of receipts from that source in 
        that year.
          (20) An analysis and explanation of the differences 
        between each amount compared under clauses (18) and 
        (19) of this subsection.
          (21) A horizontal budget showing--
                  (A) the programs for meteorology and of the 
                National Climate Program established under 
                section 5 of the National Climate Program Act 
                (15 U.S.C. 2904);
                  (B) specific aspects of the program of, and 
                appropriations for, each agency; and
                  (C) estimated goals and financial 
                requirements.
          (22) A statement of budget authority, proposed budget 
        authority, budget outlays, and proposed budget outlays, 
        and descriptive information in terms of--
                  (A) a detailed structure of national needs 
                that refers to the missions and programs of 
                agencies (as defined in section 101 of this 
                title); and
                  (B) the missions and basic programs.
          (23) Separate appropriation accounts for 
        appropriations under the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 651 et seq.) and the Federal 
        Mine Safety and Health Act of 1977 (30 U.S.C. 801 et 
        seq.).
          (24) Recommendations on the return of Government 
        capital to the Treasury by a mixed-ownership 
        corporation (as defined in section 9101(2) of this 
        title) that the President decides are desirable.
          (25) A separate appropriation account for 
        appropriations for each Office of Inspector General of 
        an establishment defined under section 11(2) of the 
        Inspector General Act of 1978.
          (26) [Terminated]
          (27) A separate statement of the amount of 
        appropriations requested for the Office of National 
        Drug Control Policy and each program of the National 
        Drug Control Program.
          (28) A separate statement of the amount of 
        appropriations requested for the Office of Federal 
        Financial Management.
          (29) Beginning with fiscal year 1999, a Federal 
        Government performance plan for the overall budget as 
        provided for under section 1115.
          (30) Information about the Violent Crime Reduction 
        Trust Fund, including a separate statement of amounts 
        in that Trust Fund.
          (31) An analysis displaying, by agency, proposed 
        reductions in full-time equivalent positions compared 
        to the current year's level in order to comply with 
        section 5 of the Federal Workforce Restructuring Act of 
        1994.
  (b) Estimated expenditures and proposed appropriations for 
the legislative branch and the judicial branch to be included 
in each budget under subsection (a)(5) of this section shall be 
submitted to the President before October 16 of each year and 
included in the budget by the President without change.
    (c) The President shall recommend in the budget appropriate 
action to meet an estimated deficiency when the estimated 
receipts for the fiscal year for which the budget is submitted 
(under laws in effect when the budget is submitted) and the 
estimated amounts in the Treasury at the end of the current 
fiscal year available for expenditure in the fiscal year for 
which the budget is submitted, are less than the estimated 
expenditures for that year. The President shall make 
recommendations required by the public interest when the 
estimated receipts and estimated amounts in the Treasury are 
more than the estimated expenditures.
    (d) When the President submits a budget or supporting 
information about a budget, the President shall include a 
statement on all changes about the current fiscal year that 
were made before the budget or information was submitted.
    (e)(1) The President shall submit with materials related to 
each budget transmitted under subsection (a) on or after 
January 1, 1985, an analysis for the ensuing fiscal year that 
shall identify requested appropriations or new obligational 
authority and outlays for each major program that may be 
classified as a public civilian capital investment program and 
for each major program that may be classified as a military 
capital investment program, and shall contain summaries of the 
total amount of such appropriations or new obligational 
authority and outlays for public civilian capital investment 
programs and summaries of the total amount of such 
appropriations or new obligational authority and outlays for 
military capital investment programs. In addition, the analysis 
under this paragraph shall contain--
          (A) an estimate of the current service levels of 
        public civilian capital investment and of military 
        capital investment and alternative high and low levels 
        of such investments over a period of ten years in 
        current dollars and over a period of five years in 
        constant dollars;
          (B) the most recent assessment analysis and summary, 
        in a standard format, of public civilian capital 
        investment needs in each major program area over a 
        period of ten years;
          (C) an identification and analysis of the principal 
        policy issues that affect estimated public civilian 
        capital investment needs for each major program; and
          (D) an identification and analysis of factors that 
        affect estimated public civilian capital investment 
        needs for each major program, including but not limited 
        to the following factors:
                  (i) economic assumptions;
                  (ii) engineering standards;
                  (iii) estimates of spending for operation and 
                maintenance;
                  (iv) estimates of expenditures for similar 
                investments by State and local governments; and
                  (v) estimates of demand for public services 
                derived from such capital investments and 
                estimates of the service capacity of such 
                investments.
    To the extent that any analysis required by this paragraph 
relates to any program for which Federal financial assistance 
is distributed under a formula prescribed by law, such analysis 
shall be organized by State and within each State by major 
metropolitan area if data are available.
    (2) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
public civilian capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for a number of years and is not classified as a 
military capital investment under paragraph (3). Such assets 
shall include (but not be limited to)--
          (A) roadways or bridges,
          (B) airports or airway facilities,
          (C) mass transportation systems,
          (D) wastewater treatment or related facilities,
          (E) water resources projects,
          (F) hospitals,
          (G) resource recovery facilities,
          (H) public buildings,
          (I) space or communications facilities,
          (J) railroads, and
          (K) federally assisted housing.
    (3) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
military capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for purposes of national defense and security 
for a number of years. Such assets shall include military 
bases, posts, installations, and facilities.
    (4) Criteria and guidelines for use in the identification 
of public civilian and military capital investments, for 
distinguishing between public civilian and military capital 
investments, and for distinguishing between major and nonmajor 
capital investment programs shall be issued by the Director of 
the Office of Management and Budget after consultation with the 
Comptroller General and the Congressional Budget Office. The 
analysis submitted under this subsection shall be accompanied 
by an explanation of such criteria and guidelines.
    (5) For purposes of this subsection--
          (A) the term ``construction'' includes the design, 
        planning, and erection of new structures and 
        facilities, the expansion of existing structures and 
        facilities, the reconstruction of a project at an 
        existing site or adjacent to an existing site, and the 
        installation of initial and replacement equipment for 
        such structures and facilities;
          (B) the term ``acquisition'' includes the addition of 
        land, sites, equipment, structures, facilities, or 
        rolling stock by purchase, lease-purchase, trade, or 
        donation; and
          (C) the term ``rehabilitation'' includes the 
        alteration of or correction of deficiencies in an 
        existing structure or facility so as to extend the 
        useful life or improve the effectiveness of the 
        structure or facility, the modernization or replacement 
        of equipment at an existing structure or facility, and 
        the modernization of, or replacement of parts for, 
        rolling stock.
    (f) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared in a manner consistent with the 
requirements of the Balanced Budget and Emergency Deficit 
Control Act of 1985 that apply to that and subsequent fiscal 
years.
    (g)(1) The Director of the Office of Management and Budget 
shall establish the funding for advisory and assistance 
services for each department and agency as a separate object 
class in each budget annually submitted to the Congress under 
this section.
    (2)(A) In paragraph (1), except as provided in subparagraph 
(B), the term ``advisory and assistance services'' means the 
following services when provided by nongovernmental sources:
          (i) Management and professional support services.
          (ii) Studies, analyses, and evaluations.
          (iii) Engineering and technical services.
    (B) In paragraph (1), the term ``advisory and assistance 
services'' does not include the following services:
          (i) Routine automated data processing and 
        telecommunications services unless such services are an 
        integral part of a contract for the procurement of 
        advisory and assistance services.
          (ii) Architectural and engineering services, as 
        defined in section 901 of the Brooks Architect-
        Engineers Act (40 U.S.C. 541).
          (iii) Research on basic mathematics or medical, 
        biological, physical, social, psychological, or other 
        phenomena.

SEC. 1106. SUPPLEMENTAL BUDGET ESTIMATES AND CHANGES.

    (a) Before July 16 of each year, the President shall submit 
to Congress a supplemental summary of the budget for the fiscal 
year for which the budget is submitted under section 1105(a) of 
this title. The summary shall include--
          (1) for that fiscal year--
                  (A) substantial changes in or reappraisals of 
                estimates of expenditures and receipts;
                  (B) substantial obligations imposed on the 
                budget after its submission;
                  (C) current information on matters referred 
                to in section 1105(a)(8) and (9)(B) and (C) of 
                this title; and
                  (D) additional information the President 
                decides is advisable to provide Congress with 
                complete and current information about the 
                budget and current estimates of the functions, 
                obligations, requirements, and financial 
                condition of the United States Government.
          (2) for the 4 fiscal years following the fiscal year 
        for which the budget is submitted, information on 
        estimated expenditures for programs authorized to 
        continue in future years, or that are considered 
        mandatory, under law; and
          (3) for future fiscal years, information on estimated 
        expenditures of balances carried over from the fiscal 
        year for which the budget is submitted.
    (b) Before July 16 of each year, the President shall submit 
to Congress a statement of changes in budget authority 
requested, estimated budget outlays, and estimated receipts for 
the fiscal year for which the budget is submitted (including 
prior changes proposed for the executive branch of the 
Government) that the President decides are necessary and 
appropriate based on current information. The statement shall 
include the effect of those changes on the information 
submitted under section 1105(a)(1)-(14) and (b) of this title 
and shall include supporting information as practicable. The 
statement submitted before July 16 may be included in the 
information submitted under subsection (a)(1) of this section.
    (c) Subsection (f) of section 1105 shall apply to revisions 
and supplemental summaries submitted under this section to the 
same extent that such subsection applies to the budget 
submitted under section 1105(a) to which such revisions and 
summaries relate.

SEC. 1107. DEFICIENCY AND SUPPLEMENTAL APPROPRIATIONS.

    The President may submit to Congress proposed deficiency 
and supplemental appropriations the President decides are 
necessary because of laws enacted after the submission of the 
budget or that are in the public interest. The President shall 
include the reasons for the submission of the proposed 
appropriations and the reasons the proposed appropriations were 
not included in the budget. When the total proposed 
appropriations would have required the President to make a 
recommendation under section 1105(c) of this title if they had 
been included in the budget, the President shall make a 
recommendation under that section.

SEC. 1108. PREPARATION AND SUBMISSION OF APPROPRIATIONS REQUESTS TO THE 
                    PRESIDENT.

    (a) In this section (except subsections (b)(1) and (e)), 
``agency'' means a department, agency, or instrumentality of 
the United States Government.
    (b)(1) The head of each each agency shall prepare and 
submit to the President each appropriation request for the 
agency. The request shall be prepared and submitted in the form 
prescribed by the President under this chapter and by the date 
established by the President. When the head of an agency does 
not submit a request by that date, the President shall prepare 
the request for the agency to be included in the budget or 
changes in the budget or as deficiency and supplemental 
appropriations. The President may change agency appropriation 
requests. Agency appropriation requests shall be developed from 
cost-based budgets in the way and at times prescribed by the 
President. The head of the agency shall use the cost-based 
budget to administer the agency and to divide appropriations or 
amounts.
    (2) An officer or employee of an agency in the executive 
branch may submit to the President or Congress a request for 
legislation authorizing deficiency or supplemental 
appropriations for the agency only with the approval of the 
head of the agency.
    (c) The head of an agency shall include with an 
appropriation request submitted to the President a report that 
the statement of obligations submitted with the request 
contains obligations consistent with section 1501 of this 
title. The head of the agency shall support the report with a 
certification of the consistency and shall support the 
certification with records showing that the amounts have been 
obligated. The head of the agency shall designate officials to 
make the certifications, and those officials may not delegate 
the duty to make the certifications. The certifications and 
records shall be kept in the agency--
          (1) in a form that makes audits and reconciliations 
        easy; and
          (2) for a period necessary to carry out audits and 
        reconciliations.
    (d) To the extent practicable, the head of an agency 
shall--
          (1) provide information supporting the agency's 
        budget request for its missions by function and 
        subfunction (including the mission of each 
        organizational unit of the agency); and
          (2) relate the agency's programs to its missions.
    (e) Except as provided in subsection (f) of this section, 
an officer or employee of an agency (as defined in section 1101 
of this title) may submit to Congress or a committee of 
Congress an appropriations estimate or request, a request for 
an increase in that estimate or request, or a recommendation on 
meeting the financial needs of the Government only when 
requested by either House of Congress.
    (f) The Interstate Commerce Commission shall submit to 
Congress copies of budget estimates, requests, and information 
(including personnel needs), legislative recommendations, 
prepared testimony for congressional hearings, and comments on 
legislation at the same time they are sent to the President or 
the Office of Management and Budget. An officer of an agency 
may not impose conditions on or impair communication by the 
Commission with Congress, or a committee or member of Congress, 
about the information.
    (g) Amounts available under law are available for field 
examinations of appropriation estimates. The use of the amounts 
is subject only to regulations prescribed by the appropriate 
standing committees of Congress.

SEC. 1109. CURRENT PROGRAMS AND ACTIVITIES ESTIMATES.

    (a) On or before the first Monday after January 3 of each 
year (on or before February 5 in 1986), the President shall 
submit to both Houses of Congress the estimated budget outlays 
and proposed budget authority that would be included in the 
budget for the following fiscal year if programs and activities 
of the United States Government were carried on during that 
year at the same level as the current fiscal year without a 
change in policy. The President shall state the estimated 
budget outlays and proposed budget authority by function and 
subfunction under the classifications in the budget summary 
table under the heading ``Budget Authority and Outlays by 
Function and Agency'', by major programs in each function, and 
by agency. The President shall also include a statement of the 
economic and program assumptions on which those budget outlays 
and budget authority are based, including inflation, real 
economic growth, and unemployment rates, program caseloads, and 
pay increases.
    (b) The Joint Economic Committee shall review the estimated 
budget outlays and proposed budget authority and submit an 
economic evaluation of the budget outlays and budget authority 
to the Committees on the Budget of both Houses before March 1 
of each year.

SEC. 1110. YEAR-AHEAD REQUESTS FOR AUTHORIZING LEGISLATION.

    A request to enact legislation authorizing new budget 
authority to continue a program or activity for a fiscal year 
shall be submitted to Congress before May 16 of the year before 
the year in which the fiscal year begins. If a new program or 
activity will continue for more than one year, the request must 
be submitted for at least the first and 2d fiscal years.

SEC. 1111. IMPROVING ECONOMY AND EFFICIENCY.

    To improve economy and efficiency in the United States 
Government, the President shall--
          (1) make a study of each agency to decide, and may 
        send Congress recommendations, on changes that should 
        be made in--
                  (A) the organization, activities, and 
                business methods of agencies;
                  (B) agency appropriations;
                  (C) the assignment of particular activities 
                to particular services; and
                  (D) regrouping of services; and
          (2) evaluate and develop improved plans for the 
        organization, coordination, and management of the 
        executive branch of the Government.

SEC. 1112. FISCAL, BUDGET, AND PROGRAM INFORMATION.

    (a) In this section, ``agency'' means a department, agency, 
or instrumentality of the United States Government except a 
mixed-ownership Government corporation.
    (b) In cooperation with the Comptroller General, the 
Secretary of the Treasury and the Director of the Office of 
Management and Budget shall establish and maintain standard 
data processing and information systems for fiscal, budget, and 
program information for use by agencies to meet the needs of 
the Government, and to the extent practicable, of State and 
local governments.
    (c) The Comptroller General--
          (1) in cooperation with the Secretary, the Director 
        of the Office of Management and Budget, and the 
        Director of the Congressional Budget Office, shall 
        establish, maintain, and publish standard terms and 
        classifications for fiscal, budget, and program 
        information of the Government, including information on 
        fiscal policy, receipts, expenditures, programs, 
        projects, activities, and functions;
          (2) when advisable, shall report to Congress on those 
        terms and classifications, and recommend legislation 
        necessary to promote the establishment, maintenance, 
        and use of standard terms and classifications by the 
        executive branch of the Government; and
          (3) in carrying out this subsection, shall give 
        particular consideration to the needs of the Committees 
        on Appropriations and on the Budget of both Houses of 
        Congress, the Committee on Ways and Means of the House, 
        the Committee on Finance of the Senate, and the 
        Congressional Budget Office.
    (d) Agencies shall use the standard terms and 
classifications published under subsection (c)(1) of this 
section in providing fiscal, budget, and program information to 
Congress.
    (e) In consultation with the President, the head of each 
executive agency shall take actions necessary to achieve to the 
extent possible--
          (1) consistency in budget and accounting 
        classifications;
          (2) synchronization between those classifications and 
        organizational structure; and
          (3) information by organizational unit on performance 
        and program costs to support budget justifications.
    (f) In cooperation with the Director of the Congressional 
Budget Office, the Comptroller General, and appropriate 
representatives of State and local governments, the Director of 
the Office of Management and Budget (to the extent practicable) 
shall provide State and local governments with fiscal, budget, 
and program information necessary for accurate and timely 
determination by those governments of the impact on their 
budgets of assistance of the United States Government.

SEC. 1113. CONGRESSIONAL INFORMATION.

    (a)(1) When requested by a committee of Congress having 
jurisdiction over receipts or appropriations, the President 
shall provide the committee with assistance and information.
    (2) When requested by a committee of Congress, additional 
information related to the amount of an appropriation 
originally requested by an Office of Inspector General shall be 
submitted to the committee.
    (b) When requested by a committee of Congress, by the 
Comptroller General, or by the Director of the Congressional 
Budget Office, the Secretary of the Treasury, the Director of 
the Office of Management and Budget, and the head of each 
executive agency shall--
          (1) provide information on the location and kind of 
        available fiscal, budget, and program information;
          (2) to the extent practicable, prepare summary tables 
        of that fiscal, budget, and program information and 
        related information the committee, the Comptroller 
        General, or the Director of the Congressional Budget 
        Office considers necessary; and
          (3) provide a program evaluation carried out or 
        commissioned by an executive agency.
    (c) In cooperation with the Director of the Congressional 
Budget Office, the Secretary, and the Director of the Office of 
Management and Budget, and Comptroller General shall--
          (1) establish and maintain a current directory of 
        sources of, and information systems for, fiscal, 
        budget, and program information and a brief description 
        of the contents of each source and system;
          (2) when requested, provide assistance to committees 
        of Congress and members of Congress in obtaining 
        information from the sources in the directory; and
          (3) when requested, provide assistance to committees 
        and, to the extent practicable, to members of Congress 
        in evaluating the information obtained from the sources 
        in the directory.
    (d) To the extent they consider necessary, the Comptroller 
General and the Director of the Congressional Budget Office 
individually or jointly shall establish and maintain a file of 
information to meet recurring needs of Congress for fiscal, 
budget, and program information to carry out this section and 
sections 717 and 1112 of this title. The file shall include 
information on budget requests, congressional authorizations to 
obligate and expend, apportionment and reserve actions, and 
obligations and expenditures. The Comptroller General and the 
Director shall maintain the file and an index to the file so 
that it is easier for the committees and agencies of Congress 
to use the file and index through data processing and 
communications techniques.
    (e)(1) The Comptroller General shall--
          (A) carry out a continuing program to identify the 
        needs of committees and members of Congress for fiscal, 
        budget, and program information to carry out this 
        section and section 1112 of this title;
          (B) assist committees of Congress in developing their 
        information needs;
          (C) monitor recurring reporting requirements of 
        Congress and committees; and
          (D) make recommendations to Congress and committees 
        for changes and improvements in those reporting 
        requirements to meet information needs identified by 
        the Comptroller General, to improve their usefulness to 
        congressional users, and to eliminate unnecessary 
        reporting.
    (2) Before September 2 of each year, the Comptroller 
General shall report to Congress on--
          (A) the needs identified under paragraph (1)(A) of 
        this subsection;
          (B) the relationship of those needs to existing 
        reporting requirements;
          (C) the extent to which reporting by the executive 
        branch of the United States Government currently meets 
        the identified needs;
          (D) the changes to standard classifications necessary 
        to meet congressional needs;
          (E) activities, progress, and results of the program 
        of the Comptroller General under paragraph (1)(B)-(D) 
        of this subsection; and
          (F) progress of the executive branch in the prior 
        year.
    (3) Before March 2 of each year, the Director of the Office 
of Management and Budget and the Secretary shall report to 
Congress on plans for meeting the needs identified under 
paragraph (1)(A) of this subsection, including--
          (A) plans for carrying out changes to classifications 
        to meet information needs of Congress;
          (B) the status of information systems in the prior 
        year; and
          (C) the use of standard classifications.

[SEC. 1114. REPEALED. PUB.L. 103-355, TITLE II, SEC. 2454(c)(2), OCT. 
                    13, 1994, 108 STAT. 3326]

SEC. 1115. PERFORMANCE PLANS.

    (a) In carrying out the provisions of section 1105(a)(29), 
the Director of the Office of Management and Budget shall 
require each agency to prepare an annual performance plan 
covering each program activity set forth in the budget of such 
agency. Such plan shall--
          (1) establish performance goals to define the level 
        of performance to be achieved by a program activity;
          (2) express such goals in an objective, quantifiable, 
        and measurable form unless authorized to be in an 
        alternative form under subsection (b);
          (3) briefly describe the operational processes, 
        skills, and technology, and the human, capital, 
        information, or other resources required to meet the 
        performance goals;
          (4) establish performance indicators to be used in 
        measuring or assessing the relevant outputs, service 
        levels, and outcomes of each program activity;
          (5) provide a basis for comparing actual program 
        results with the established performance goals; and
          (6) describe the means to be used to verify and 
        validate measured values.
    (b) If an agency, in consultation with the Director of the 
Office of Management and Budget, determines that it is not 
feasible to express the performance goals for a particular 
program activity in an objective, quantifiable, and measurable 
form, the Director of the Office of Management and Budget may 
authorize an alternative form. Such alternative form shall--
          (1) include separate descriptive statements of--
                  (A)(i) a minimally effective program, and
                  (ii) a successful program, or
                  (B) such alternative as authorized by the 
                Director of the Office of Management and 
                Budget, with sufficient precision and in such 
                terms that would allow for an accurate, 
                independent determination of whether the 
                program activity's performance meets the 
                criteria of the description; or
          (2) state why it is infeasible or impractical to 
        express a performance goal in any form for the program 
        activity.
    (c) For the purpose of complying with this section, an 
agency may aggregate, disaggregate, or consolidate program 
activities, except that any aggregation or consolidation may 
not omit or minimize the significance of any program activity 
constituting a major function or operation for the agency.
    (d) An agency may submit with its annual performance plan 
an appendix covering any portion of the plan that--
          (1) is specifically authorized under criteria 
        established by an Executive order to be kept secret in 
        the interest of national defense or foreign policy; and
          (2) is properly classified pursuant to such Executive 
        order.
    (e) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of performance plans under this section shall be 
performed only by Federal employees.
    (f) For purposes of this section and sections 1116 through 
1119, and sections 9703 and 9704 the term--
          (1) ``agency'' has the same meaning as such term is 
        defined under section 306(f) of title 5;
          (2) ``outcome measure'' means an assessment of the 
        results of a program activity compared to its intended 
        purpose;
          (3) ``output measure'' means the tabulation, 
        calculation, or recording of activity or effort and can 
        be expressed in a quantitative or qualitative manner;
          (4) ``performance goal'' means a target level of 
        performance expressed as a tangible, measurable 
        objective, against which actual achievement can be 
        compared, including a goal expressed as a quantitative 
        standard, value, or rate;
          (5) ``performance indicator'' means a particular 
        value or characteristic used to measure output or 
        outcome;
          (6) ``program activity'' means a specific activity or 
        project as listed in the program and financing 
        schedules of the annual budget of the United States 
        Government; and
          (7) ``program evaluation'' means an assessment, 
        through objective measurement and systematic analysis, 
        of the manner and extent to which Federal programs 
        achieve intended objectives.

                     HISTORICAL AND STATUTORY NOTES

    Congressional Findings and Statement of Purposes
    Section 2 of Pub.L. 103-62 provided that:
    ``(a) Findings._The Congress finds that--
          ``(1) waste and inefficiency in Federal programs 
        undermines the confidence of the American people in the 
        Government and reduces the Federal Government's ability 
        to address adequately vital public needs;
          ``(2) Federal managers are seriously disadvantaged in 
        their efforts to improve program efficiency and 
        effectiveness, because of insufficient articulation of 
        program goals and inadequate information on program 
        performance; and
          ``(3) congressional policymaking, spending decisions 
        and program oversight are seriously handicapped by 
        insufficient attention to program performance and 
        results.
    ``(b) Purposes._The purposes of this Act [see Short Title 
of 1993 Amendments note set out under section 1101 of this 
title] are to--
          ``(1) improve the confidence of the American people 
        in the capability of the Federal Government, by 
        systematically holding Federal agencies accountable for 
        achieving program results;
          ``(2) initiate program performance reform with a 
        series of pilot projects in setting program goals, 
        measuring program performance against those goals, and 
        reporting publicly on their progress;
          ``(3) improve Federal program effectiveness and 
        public accountability by promoting a new focus on 
        results, service quality, and customer satisfaction;
          ``(4) help Federal managers improve service delivery, 
        by requiring that they plan for meeting program 
        objectives and by providing them with information about 
        program results and service quality;
          ``(5) improve congressional decisionmaking by 
        providing more objective information on achieving 
        statutory objectives, and on the relative effectiveness 
        and efficiency of Federal programs and spending; and
          ``(6) improve internal management of the Federal 
        Government.''

SEC. 1116. PROGRAM PERFORMANCE REPORTS.

    (a) No later than March 31, 2000, and no later than March 
31 of each year thereafter, the head of each agency shall 
prepare and submit to the President and the Congress, a report 
on program performance for the previous fiscal year.
    (b)(1) Each program performance report shall set forth the 
performance indicators established in the agency performance 
plan under section 1115, along with the actual program 
performance achieved compared with the performance goals 
expressed in the plan for that fiscal year.
    (2) If performance goals are specified in an alternative 
form under section 1115(b), the results of such program shall 
be described in relation to such specifications, including 
whether the performance failed to meet the criteria of a 
minimally effective or successful program.
    (c) The report for fiscal year 2000 shall include actual 
results for the preceding fiscal year, the report for fiscal 
year 2001 shall include actual results for the two preceding 
fiscal years, and the report for fiscal year 2002 and all 
subsequent reports shall include actual results for the three 
preceding fiscal years.
    (d) Each report shall--
          (1) review the success of achieving the performance 
        goals of the fiscal year;
          (2) evaluate the performance plan for the current 
        fiscal year relative to the performance achieved toward 
        the performance goals in the fiscal year covered by the 
        report;
          (3) explain and describe, where a performance goal 
        has not been met (including when a program activity's 
        performance is determined not to have met the criteria 
        of a successful program activity under section 
        1115(b)(1)(A)(ii) or a corresponding level of 
        achievement if another alternative form is used)--
                  (A) why the goal was not met;
                  (B) those plans and schedules for achieving 
                the established performance goal; and
                  (C) if the performance goal is impractical or 
                infeasible, why that is the case and what 
                action is recommended;
          (4) describe the use and assess the effectiveness in 
        achieving performance goals of any waiver under section 
        9703 of this title; and
          (5) include the summary findings of those program 
        evaluations completed during the fiscal year covered by 
        the report.
    (e) An agency head may include all program performance 
information required annually under this section in an annual 
financial statement required under section 3515 if any such 
statement is submitted to the Congress no later than March 31 
of the applicable fiscal year.
    (f) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of program performance reports under this section 
shall be performed only by Federal employees.

SEC. 1117. EXEMPTION.

    The Director of the Office of Management and Budget may 
exempt from the requirements of sections 1115 and 1116 of this 
title and section 306 of title 5, any agency with annual 
outlays of $20,000,000 or less.

SEC. 1118. PILOT PROJECTS FOR PERFORMANCE GOALS.

    (a) The Director of the Office of Management and Budget, 
after consultation with the head of each agency, shall 
designate not less than ten agencies as pilot projects in 
performance measurement for fiscal years 1994, 1995, and 1996. 
The selected agencies shall reflect a representative range of 
Government functions and capabilities in measuring and 
reporting program performance.
    (b) Pilot projects in the designated agencies shall 
undertake the preparation of performance plans under section 
1115, and program performance reports under section 1116, other 
than section 1116(c), for one or more of the major functions 
and operations of the agency. A strategic plan shall be used 
when preparing agency performance plans during one or more 
years of the pilot period.
    (c) No later than May 1, 1997, the Director of the Office 
of Management and Budget shall submit a report to the President 
and to the Congress which shall--
          (1) assess the benefits, costs, and usefulness of the 
        plans and reports prepared by the pilot agencies in 
        meeting the purposes of the Government Performance and 
        Results Act of 1993;
          (2) identify any significant difficulties experienced 
        by the pilot agencies in preparing plans and reports; 
        and
          (3) set forth any recommended changes in the 
        requirements of the provisions of Government 
        Performance and Results Act of 1993, section 306 of 
        title 5, sections 1105, 1115, 1116, 1117, 1119 and 9703 
        of this title, and this section.

SEC. 1119. PILOT PROJECTS FOR PERFORMANCE BUDGETING.

    (a) The Director of the Office of Management and Budget, 
after consultation with the head of each agency shall designate 
not less than five agencies as pilot projects in performance 
budgeting for fiscal years 1998 and 1999. At least three of the 
agencies shall be selected from those designated as pilot 
projects under section 1118, and shall also reflect a 
representative range of Government functions and capabilities 
in measuring and reporting program performance.
    (b) Pilot projects in the designated agencies shall cover 
the preparation of performance budgets. Such budgets shall 
present, for one or more of the major functions and operations 
of the agency, the varying levels of performance, including 
outcome-related performance, that would result from different 
budgeted amounts.
    (c) The Director of the Office of Management and Budget 
shall include, as an alternative budget presentation in the 
budget submitted under section 1105 for fiscal year 1999, the 
performance budgets of the designated agencies for this fiscal 
year.
    (d) No later than March 31, 2001, the Director of the 
Office of Management and Budget shall transmit a report to the 
President and to the Congress on the performance budgeting 
pilot projects which shall--
          (1) assess the feasibility and advisability of 
        including a performance budget as part of the annual 
        budget submitted under section 1105;
          (2) describe any difficulties encountered by the 
        pilot agencies in preparing a performance budget;
          (3) recommend whether legislation requiring 
        performance budgets should be proposed and the general 
        provisions of any legislation; and
          (4) set forth any recommended changes in the other 
        requirements of the Government Performance and Results 
        Act of 1993, section 306 of title 5, sections 1105, 
        1115, 1116, 1117, and 9703 of this title, and this 
        section.
    (e) After receipt of the report required under subsection 
(d), the Congress may specify that a performance budget be 
submitted as part of the annual budget submitted under section 
1105.
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                31 U.S.C.                   Requirements and Guidelines 
------------------------------------------------------------------------
1104....................................  OMB: Bulletin 93-18, see      
                                           appendix IV, Circular A-133  
1105....................................  OMB: Circular A-11, see       
                                           appendix IV, Circular A-127  
1105(a).................................  OMB: Circular A-129, see      
                                           appendix IV                  
1105(a).................................  OMB: Bulletin 93-18, see      
                                           appendix IV                  
1108....................................  OMB: Circular A-129, see      
                                           appendix IV                  
1111....................................  5 C.F.R. 1320; 22 C.F.R. 518  
                                          OMB: Circulars A-25, A-73, A- 
                                           94, A-110, A-122, A-133, see 
                                           appendix IV, Bulletin 94-09  
1112....................................  Circular A-127                
1113....................................  Circular A-127                
1115....................................  OMB: Circular A-11, see       
                                           appendix IV                  
1116....................................  OMB: Circular A-11, see       
                                           appendix IV                  
1117....................................  OMB: Circular A-11, see       
                                           appendix IV                  
1118....................................  OMB: Circular A-11, see       
                                           appendix IV                  
1119....................................  OMB: Circular A-11, see       
                                           appendix IV                  
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                    Subtitle II--the Budget Process

          * * * * * * *

                       CHAPTER 13--APPROPRIATIONS

                         Subchapter I--General

SEC. 1301. APPLICATION.

    (a) Appropriations shall be applied only to the objects for 
which the appropriations were made except as otherwise provided 
by law.
    (b) The reappropriation and diversion of the unexpended 
balance of an appropriation for a purpose other than that for 
which the appropriation originally was made shall be construed 
and accounted for as a new appropriation. The unexpended 
balance shall be reduced by the amount to be diverted.
    (c) An appropriation in a regular, annual appropriation law 
may be construed to be permanent or available continuously only 
if the appropriation--
          (1) is for rivers and harbors, lighthouses, public 
        buildings, or the pay of the Navy and Marine Corps; or
          (2) expressly provides that it is available after the 
        fiscal year covered by the law in which it appears.
    (d) A law may be construed to make an appropriation out of 
the Treasury or to authorize making a contract for the payment 
of money in excess of an appropriation only if the law 
specifically states that an appropriation is made or that such 
a contract may be made.

SEC. 1302. DETERMINING AMOUNTS APPROPRIATED.

    Except as specifically provided by law, the total amount 
appropriated in an appropriation law is determined by adding up 
the specific amounts or rates appropriated in each paragraph of 
the law.

SEC. 1303. EFFECT OF CHANGES IN TITLES OF APPROPRIATIONS.

    Expenditures for a particular object or purpose authorized 
by a law (and referred to in that law by the specific title 
previously used for the appropriation item in the appropriation 
law concerned) may be made from a corresponding appropriation 
item when the specific title is changed or eliminated from a 
later appropriation law.

SEC. 1304. JUDGMENTS, AWARDS, AND COMPROMISE SETTLEMENTS.

    (a) Necessary amounts are appropriated to pay final 
judgments, awards, compromise settlements, and interest and 
costs specified in the judgments or otherwise authorized by law 
when--
          (1) payment is not otherwise provided for;
          (2) payment is certified by the Comptroller General; 
        and
          (3) the judgment, award, or settlement is payable--
                  (A) under section 2414, 2517, 2672, or 2677 
                of title 28;
                  (B) under section 3723 of this title;
                  (C) under a decision of a board of contract 
                appeals; or
                  (D) in excess of an amount payable from the 
                appropriations of an agency for a meritorious 
                claim under section 2733 or 2734 of title 10, 
                section 715 of title 32, or section 203 of the 
                National Aeronautics and Space Act of 1958 (42 
                U.S.C. 2473).
    (b)(1) Interest may be paid from the appropriation made by 
this section--
          (A) on a judgment of a district court, only when the 
        judgment becomes final after review on appeal or 
        petition by the United States Government, and then only 
        from the date of filing of the transcript of the 
        judgment with the Comptroller General through the day 
        before the date of the mandate of affirmance; or
          (B) on a judgment of the Court of Appeals for the 
        Federal Circuit or the United States Claims Court under 
        section 2516(b) of title 28, only from the date of 
        filing of the transcript of the judgment with the 
        Comptroller General through the day before the date of 
        the mandate of affirmance.
    (2) Interest payable under this subsection in a proceeding 
reviewed by the Supreme Court is not allowed after the end of 
the term in which the judgment is affirmed.
    (c)(1) A judgment or compromise settlement against the 
Government shall be paid under this section and sections 2414, 
2517, and 2518 of title 28 when the judgment or settlement 
arises out of an express or implied contract made by--
          (A) the Army and Air Force Exchange Service;
          (B) the Navy Exchanges;
          (C) the Marine Corps Exchanges;
          (D) the Coast Guard Exchanges; or
          (E) the Exchange Councils of the National Aeronautics 
        and Space Administration.
    (2) The Exchange making the contract shall reimburse the 
Government for the amount paid by the Government.

SEC. 1305. MISCELLANEOUS PERMANENT APPROPRIATIONS.

    Necessary amounts are appropriated for the following:
          (1) to pay the proceeds of the personal estate of a 
        United States citizen dying abroad to the legal 
        representative of the deceased on proper demand and 
        proof.
          (2) to pay interest on the public debt under laws 
        authorizing payment.
          (3) to pay proceeds from derelict and salvage cases 
        adjudged by the courts of the United States to salvors.
          (4) to make payments required under contracts made 
        under section 108 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5308) for the 
        payment of interest on obligations guaranteed by the 
        Secretary of Housing and Urban Development under 
        section 108.
          (5) to make payments required under contracts made 
        under section 103(b) of the Housing Act of 1949 (42 
        U.S.C. 1453(b)) for projects or programs for which 
        amounts had been committed before January 1, 1975, and 
        for which amounts have not been appropriated.
          (6) to pay the interest on the fund derived from the 
        bequest of James Smithson, for the construction of 
        buildings and expenses of the Smithsonian Institution, 
        at the rates determined under section 5590 of the 
        Revised Statutes (20 U.S.C. 54).
          (7) Annual contributions for assisted housing.--To 
        make payments required under contracts made under 
        section 5 of the United States Housing Act of 1937, as 
        amended (42 U.S.C. 1437c).
          (8) College housing grants.--To make payments 
        required under contracts made under title IV of the 
        Housing Act of 1950, as amended (12 U.S.C. 1749 et 
        seq.).
          (9) Rent supplement program.--To make payments 
        required under contracts under section 101 of the 
        Housing and Urban Development Act of 1965, as amended 
        (12 U.S.C. 1701s).
          (10) Homeownership and rental housing assistance.--To 
        make payments required under contracts under sections 
        235 and 236, respectively, of the National Housing Act, 
        as amended (12 U.S.C. 1715z, 1715z-1).

SEC. 1306. USE OF FOREIGN CREDITS.

    Foreign credits owed to or owned by the Treasury are not 
available for expenditure by agencies except as provided 
annually in general appropriation laws.

SEC. 1307. PUBLIC BUILDING CONSTRUCTION.

    Amounts appropriated to construct public buildings remain 
available until completion of the work. When a building is 
completed and outstanding liabilities for the construction are 
paid, balances remaining shall revert immediately to the 
Treasury.

SEC. 1308. TELEPHONE AND METERED SERVICES.

    Charges for telephone and metered services (such as gas, 
electricity, water, and steam) for a time period beginning in 
one fiscal year or allotment period and ending in another 
fiscal year or allotment period may be charged against the 
appropriation or allotment current at the end of the time 
period covered by the service.

SEC. 1309. SOCIAL SECURITY TAX.

    Amounts made available for the compensation of officers and 
employees of the United States Government may be used to pay 
taxes imposed on an agency as an employer under chapter 21 of 
the Internal Revenue Code of 1954 (26 U.S.C. 3101 et seq.).

SEC. 1310. APPROPRIATIONS FOR PRIVATE ORGANIZATIONS.

    (a) The Secretary of the Treasury shall credit an 
appropriation for a private organization to the appropriate 
fiscal official of the organization. The credit shall be 
carried on the accounts of--
          (1) the Treasury; or
          (2) a designated depositary of the United States 
        Government (except a national bank).
    (b) The fiscal official may pay an amount out of the 
appropriation only on a check of the fiscal official--
          (1) payable to the order of the person to whom 
        payment is to be made; and
          (2) that states the specific purpose for which the 
        amount is to be applied.
    (c)(1) The fiscal official may pay an amount of less than 
$20 out of the appropriation on a check--
          (A) payable to the order of the fiscal official; and
          (B) that states the amount is to be applied to small 
        claims.
    (2) The fiscal official shall provide the Secretary or the 
designated depositary on which the check is drawn with a 
certified list of the claims. The list shall state the kind and 
amount of each claim and the name of each claimant.

                 Subchapter II--Trust Funds and Refunds

SEC. 1321. TRUST FUNDS

  (a) The following are classified as trust funds:
          (1) Philippine special fund (customs duties).
          (2) Philippine special fund (internal revenue).
          (3) Unclaimed condemnation awards, Department of the 
        Treasury.
          (4) Naval reservation, Olangapo civil fund.
          (5) Armed Forces Retirement Home Trust Fund.
          (6) Return to deported aliens of passage money 
        collected from steamship companies.
          (7) Vocational rehabilitation, special fund.
          (8) Library of Congress gift fund.
          (9) Library of Congress trust fund, investment 
        account.
          (10) Library of Congress trust fund, income from 
        investment account.
          (11) Library of Congress trust fund, permanent loan.
          (12) Relief and rehabilitation, Longshoremen's and 
        Harbor Workers' Compensation Act.
          (13) Cooperative work, Forest Service.
          (14) Wages and effects of American seamen, Department 
        of Commerce.
          (15) Pension money, Saint Elizabeths Hospital.
          (16) Personal funds of patients, Saint Elizabeths 
        Hospital.
          (17) National Park Service, donations.
          (18) Purchase of lands, national parks, donations.
          (19) Extension of winter-feed facilities of game 
        animals of Yellowstone National Park, donations.
          (20) Indian moneys, proceeds of labor, agencies, 
        schools, and so forth.
          (21) Funds of Federal prisoners.
          (22) Commissary funds, Federal prisons.
          (23) Pay of the Navy, deposit funds.
          (24) Pay of Marine Corps, deposit funds.
          (25) Pay of the Army, deposit fund.
          (26) Preservation birthplace of Abraham Lincoln.
          (27) Funds contributed for flood control, Mississippi 
        River, its outlets and tributaries.
          (28) Funds contributed for flood control, Sacramento 
        River, California.
          (29) Effects of deceased employees, Department of the 
        Treasury.
          (30) Money and effects of deceased patients, Public 
        Health Service.
          (31) Effects of deceased employees, Department of 
        Commerce.
          (32) Topographic survey of the United States, 
        contributions.
          (33) National Institutes of Health, gift fund.
          (34) National Institutes of Health, conditional gift 
        fund.
          (35) Patients' deposits, United States Marine 
        Hospital, Carville, Louisiana.
          (36) Estates of deceased personnel, Department of the 
        Army.
          (37) Effects of deceased employees, Department of the 
        Interior.
          (38) Fredericksburg and Spotsylvania County 
        Battlefields memorial fund.
          (39) Petersburg National Military Park fund.
          (40) Gorgas Memorial Laboratory quotas.
          (41) Contributions to International Boundary 
        Commission, United States and Mexico.
          (42) Salvage proceeds, American vessels.
          (43) Wages due American seamen.
          (44) Federal Industrial Institution for Women, 
        contributions for chapel.
          (45) General post fund, National Homes, Department of 
        Veterans Affairs.
          (46) Repatriation of American seamen.
          (47) Expenses, public survey work, general.
          (48) Expenses, public survey work, Alaska.
          (49) Funds contributed for improvement of roads, 
        bridges, and trails, Alaska.
          (50) Protective works and measures, Lake of the Woods 
        and Rainy River, Minnesota.
          (51) Washington redemption fund.
          (52) Permit fund, District of Columbia.
          (53) Unclaimed condemnation awards, National Capital 
        Park and Planning Commission, District of Columbia.
          (54) Unclaimed condemnation awards, Rock Creek and 
        Potomac Parkway Commission, District of Columbia.
          (55) Miscellaneous trust fund deposits, District of 
        Columbia.
          (56) Surplus fund, District of Columbia.
          (57) Relief and rehabilitation, District of Columbia 
        Workmen's Compensation Act.
          (58) Inmates' fund, workhouse and reformatory, 
        District of Columbia.
          [(59) Repealed. Pub.L. 101-510, Div. A, Title XV, 
        Sec. 1533(c)(1), Nov. 5, 1990, 104 Stat. 1735]
          (60) Chamber Music Auditorium, Library of Congress.
          (61) Bequest of Gertrude Hubbard.
          (62) Puerto Rico special fund (Internal Revenue).
          (63) Miscellaneous trust funds, Department of State.
          (64) Funds contributed for improvement of (name of 
        river or harbor).
          (65) Funds advanced for improvement of (name of river 
        or harbor).
          (66) Funds contributed for Indian projects.
          (67) Miscellaneous trust funds of Indian tribes.
          (68) Ship's stores profits, Navy.
          (69) Completing Surveys within Railroad Land Grants.
          (70) Memorial to Women of World Wars, contributions.
          (71) Funds contributed for Memorial to John Ericsson.
          (72) American National Red Cross Building, 
        contributions.
          (73) Estate of decedents, Department of State, Trust 
        Fund.
          (74) Funds due Incompetent Beneficiaries, Department 
        of Veterans Affairs.
          (75) To promote the Education of the Blind 
        (principal).
          (76) Paving Government Road across Fort Sill Military 
        Reservation, Okla.
          (77) Bequest of William F. Edgar, Museum and Library, 
        office of Surgeon General of the Army.
          (78) Funds Contributed for Flood Control (name of 
        river, harbor, or project).
          (79) Matured obligations of the District of Columbia.
          (80) To promote the education of the blind 
        (interest).
          [(81) Repealed. Pub.L. 101-510, Div. A. Title XV, 
        Sec. 1533(c)(1), Nov. 5, 1990, 104 Stat. 1735]
          (82) Post-Vietnam Era Veterans Education Account, 
        Department of Veterans Affairs.
          (83) United States Government life insurance fund, 
        Department of Veterans Affairs.
          (84) Estates of deceased soldiers, United States 
        Army.
          (85) Teachers Retirement Fund Deductions, District of 
        Columbia.
          (86) Teachers Retirement Fund, Government Reserves, 
        District of Columbia.
          (87) Expenses of Smithsonian Institution Trust Fund 
        (principal).
          (88) Civil Service Retirement and Disability Fund.
          (89) Canal Zone Retirement and Disability Fund.
          (90) Foreign Service Retirement and Disability Fund.
          (91) Violent Crime Reduction Trust Fund.
    (b) Amounts (except amounts received by the Comptroller of 
the Currency and the Federal Deposit Insurance Corporation) 
that are analogous to the funds named in subsection (a) of this 
section and are received by the United States Government as 
trustee shall be deposited in an appropriate trust fund account 
in the Treasury. Amounts accruing to these funds (except to the 
trust fund ``Armed Forces Retirement Home Trust Fund'') are 
appropriated to be disbursed in compliance with the terms of 
the trust. Expenditures from the trust fund ``Armed Forces 
Retirement Home Trust Fund'' shall be made only under annual 
appropriations and only if the appropriations are specifically 
authorized by law.

SEC. 1322. PAYMENTS OF UNCLAIMED TRUST FUND AMOUNTS AND REFUND OF 
                    AMOUNTS ERRONEOUSLY DEPOSITED.

  (a) On September 30 of each year, the Secretary of the 
Treasury shall transfer to the Treasury trust fund receipt 
account ``Unclaimed Moneys of Individuals Whose Whereabouts are 
Unknown'' that part of the balance of a trust fund account 
named in section 1321(a)(1)-(82) of this title or an analogous 
trust fund established under section 1321(b) of this title that 
has been in the fund for more than one year and represents 
money belonging to individuals whose whereabouts are unknown. 
Subsequent claims to the transferred funds shall be paid from 
the account ``Unclaimed Moneys of Individuals Whose Whereabouts 
are Unknown.''
    (b) Except as provided in subsection (c) of this section, 
necessary amounts are appropriated to the Secretary of the 
Treasury to make payments from--
          (1) the Treasury trust fund receipt account 
        ``Unclaimed Moneys of Individuals Whose Whereabouts are 
        Unknown''; and
          (2) the United States Government account ``Refund of 
        Moneys Erroneously Received and Covered'' and other 
        collections erroneously deposited that are not properly 
        chargeable to another appropriation.
    (c)(1) The Secretary of the Treasury shall hold in the 
Treasury trust fund receipt account ``Unclaimed Moneys of 
Individuals Whose Whereabouts Are Unknown'' the balance 
remaining after the final distribution of unclaimed Postal 
Savings System deposits under subsection (a) of the first 
section of the Act of August 13, 1971 (Public Law 92-117; 85 
Stat. 337). The Secretary shall use the balance to pay claims 
for Postal Savings System deposits without regard to the State 
law or the law of other jurisdictions of deposit concerning the 
disposition of unclaimed or abandoned property.
    (2) Necessary amounts may be appropriated without fiscal 
year limitation to the trust fund receipt account to pay claims 
for deposits when the balance in the account is not sufficient 
to pay the claims made within the time limitation set forth in 
paragraph (3) of this subsection.
    (3) No claim for any Postal Savings System deposit may be 
brought more than one year from the date of the enactment of 
the Postal Savings System Statute of Limitations Act.
    (4) The United States Postal Service shall assist the 
Secretary of the Treasury in providing public notice of the 
time limitation set forth in paragraph (3) of this subsection 
by posting notices thereof in all post offices as soon as 
practicable after the date of the enactment of the Postal 
Savings System Statute of Limitations Act.

SEC. 1323. TRUST FUNDS FOR CERTAIN FEES, DONATIONS, QUASI-PUBLIC 
                    AMOUNTS, AND UNEARNED AMOUNTS.

    (a) Amounts from the following sources held in checking 
accounts of disbursing officials shall be deposited in the 
Treasury to the appropriate trust fund receipt accounts:
          (1) unearned money, lands (Department of the 
        Interior).
          (2) reentry permit fees (Department of Justice).
          (3) naturalization fees (Department of Justice).
          (4) registry fees (Department of Justice).
    (b) Amounts deposited under subsection (a) of this section 
are appropriated for refunds. Earned parts of those amounts 
shall be transferred and credited to the appropriate receipt 
fund accounts.
    (c) Donations, quasi-public amounts, and unearned amounts 
shall be deposited in the Treasury as trust funds and are 
appropriated for disbursement under the terms of the trusts 
when the donation or amount is--
          (1) administered by officers and employees of the 
        United States Government; and
          (2) carried in checking accounts of disbursing 
        officials or others required to account to the 
        Comptroller General (except clerks and marshals of the 
        United States district courts).

SEC. 1324. REFUND OF INTERNAL REVENUE COLLECTIONS.

    (a) Necessary amounts are appropriated to the Secretary of 
the Treasury for refunding internal revenue collections as 
provided by law, including payment of--
          (1) claims for prior fiscal years; and
          (2) accounts arising under--
                  (A) ``Allowance or drawback (Internal 
                Revenue)'';
                  (B) ``Redemption of stamps (Internal 
                Revenue)'';
                  (C) ``Refunding legacy taxes, Act of March 
                30, 1928'';
                  (D) ``Repayment of taxes on distilled spirits 
                destroyed by casualty''; and
                  (E) ``Refunds and payments of processing and 
                related taxes''.
    (b) Disbursements may be made from the appropriation made 
by this section only for--
          (1) refunds to the limit of liability of an 
        individual tax account; and
          (2) refunds due from credit provisions of the 
        Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.) 
        enacted before January 1, 1978.

         Subchapter III--Limitations, Exceptions, and Penalties

SEC. 1341. LIMITATIONS ON EXPENDING AND OBLIGATING AMOUNTS.

    (a)(1) An officer or employee of the United States 
Government or of the District of Columbia government may not--
          (A) make or authorize an expenditure or obligation 
        exceeding an amount available in an appropriation or 
        fund for the expenditure or obligation;
          (B) involve either government in a contract or 
        obligation for the payment of money before an 
        appropriation is made unless authorized by law;
          (C) make or authorize an expenditure or obligation of 
        funds required to be sequestered under section 252 of 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985; or
          (D) involve either government in a contract or 
        obligation for the payment of money required to be 
        sequestered under section 252 of the Balanced Budget 
        and Emergency Deficit Control Act of 1985.
    (2) This subsection does not apply to a corporation getting 
amounts to make loans (except paid in capital amounts) without 
legal liability of the United States Government.
    (b) An article to be used by an executive department in the 
District of Columbia that could be bought out of an 
appropriation made to a regular contingent fund of the 
department may not be bought out of another amount available 
for obligation.

SEC. 1342. LIMITATION ON VOLUNTARY SERVICES.

    An officer or employee of the United States Government or 
of the District of Columbia government may not accept voluntary 
services for either government or employ personal services 
exceeding that authorized by law except for emergencies 
involving the safety of human life or the protection of 
property. This section does not apply to a corporation getting 
amounts to make loans (except paid in capital amounts) without 
legal liability of the United States Government. As used in 
this section, the term ``emergencies involving the safety of 
human life or the protection of property'' does not include 
ongoing, regular functions of government the suspension of 
which would not imminently threaten the safety of human life or 
the protection of property.

1990 AMENDMENT.

    Pub.L. 101-508, Sec. 13213(b), added sentence: ``As used in 
this section, the term `emergencies involving the safety of 
human life or the protection of property' does not include 
ongoing, regular functions of government the suspension of 
which would not imminently threaten the safety of human life or 
the protection of property.''

SEC. 1343. BUYING AND LEASING PASSENGER MOTOR VEHICLES AND AIRCRAFT.

    (a) In this section, buying a passenger motor vehicle or 
aircraft includes a transfer of the vehicle or aircraft between 
agencies.
    (b) An appropriation may be expended to buy or lease 
passenger motor vehicles only--
          (1) for the use of--
                  (A) the President;
                  (B) the secretaries to the President; or
                  (C) the heads of executive departments listed 
                in section 101 of title 5; or
          (2) as specifically provided by law.
    (c)(1) Except as specifically provided by law, an agency 
may use an appropriation to buy a passenger motor vehicle 
(except a bus or ambulance) only at a total cost (except costs 
required only for transportation) that--
          (A) includes the price of systems and equipment the 
        Administrator of General Services decides is 
        incorporated customarily in standard passenger motor 
        vehicles completely equipped for ordinary operation;
          (B) includes the value of a vehicle used in exchange;
          (C) is not more than the maximum price established by 
        the agency having authority under law to establish a 
        maximum price; and
          (D) is not more than the amount specified in a law.
    (2) Additional systems and equipment may be bought for a 
passenger motor vehicle if the Administrator decides the 
purchase is appropriate. The price of additional systems or 
equipment is not included in deciding whether the cost of the 
vehicle is within a maximum price specified in a law.
    (d) An appropriation (except an appropriation for the armed 
forces) is available to buy, maintain, or operate an aircraft 
only if the appropriation specifically authorizes the purchase, 
maintenance, or operation.
    (e) This section does not apply to--
          (1) buying, maintaining, and repairing passenger 
        motor vehicles by the United States Capitol Police;
          (2) buying, maintaining, and repairing vehicles 
        necessary to carry out projects to improve, preserve, 
        and protect rivers and harbors; or
          (3) leasing, maintaining, repairing, or operating 
        motor passenger vehicles necessary in the field work of 
        the Department of Agriculture.

                                   NOTE

   Maximum Purchase Price of Motor Vehicles; Intelligence Activities 
                               Exception

    Pub.L. 103-139, Title VIII, Sec. 8105, Nov. 11, 1993, 107 
Stat. 1464, provided that: ``During the current fiscal year and 
thereafter, monetary limitations on the purchase price of a 
passenger motor vehicle shall not apply to vehicles purchased 
for intelligence activities conducted pursuant to Executive 
Order 12333 [set out as a note under section 401 of Title 50, 
National Defense] or successor orders.''

          Maximum Purchase Price of Motor Vehicles; Exception

    Pub.L. 104-52, Title VI, Sec. 604, Nov. 19, 1995, 109 Stat. 
497, provided that: ``Unless otherwise specifically provided, 
the maximum amount allowable during the current fiscal year in 
accordance with section 16 of the Act of August 2, 1946 (60 
Stat. 810) [this section], for the purchase of any passenger 
motor vehicle (exclusive of buses, ambulances, law enforcement, 
and undercover surveillance vehicles), is hereby fixed at 
$8,100 except station wagons for which the maximum shall be 
$9,100: Provided, That these limits may be exceeded by not to 
exceed $3,700 for police-type vehicles, and by not to exceed 
$4,000 for special heavy-duty vehicles: Provided further, That 
the limits set forth in this section may not be exceeded by 
more than five percent for electric or hybrid vehicles 
purchased for demonstration under the provisions of the 
Electric and Hybrid Vehicle Research, Development, and 
Demonstration Act of 1976 [15 U.S.C.A. Sec. 2501 et seq.]: 
Provided further, That the limits set forth in this section may 
be exceeded by the incremental cost of clean alternative fuels 
vehicles acquired pursuant to Public Law 101-549 [known as the 
Clean Air Act Amendments of 1990; for distribution of this Act 
to the Code, see Tables; for provisions relating to clean 
alternative fuel vehicles, see section 229(a) of such Act, 
which is classified to 42 U.S.C.A. Sec. 7581 et seq.] over the 
cost of comparable conventionally fueled vehicles.''

SEC. 1344. PASSENGER CARRIER USE.

      (a)(1) Funds available to a Federal agency, by 
appropriation or otherwise, may be expended by the Federal 
agency for the maintenance, operation, or repair of any 
passenger carrier only to the extent that such carrier is used 
to provide transportation for official purposes. 
Notwithstanding any other provision of law, transporting any 
individual other than the individuals listed in subsections (b) 
and (c) of this section between such individual's residence and 
such individual's place of employment is not transportation for 
an official purpose.
      (2) For purposes of paragraph (1), transportation between 
the residence of an officer or employee and various locations 
that is--
          (A) required for the performance of field work, in 
        accordance with regulations prescribed pursuant to 
        subsection (e) of this section, or
          (B) essential for the safe and efficient performance 
        of intelligence, counterintelligence, protective 
        services, or criminal law enforcement duties, is 
        transportation for an official purpose, when approved 
        in writing by the head of the Federal agency.
      (b) A passenger carrier may be used to transport between 
residence and place of employment the following officers and 
employees of Federal agencies:
          (1)(A) the President and the Vice President;
          (B) no more than 6 officers or employees in the 
        Executive Office of the President, as designated by the 
        President; and
          (C) no more than 10 additional officers or employees 
        of Federal agencies, as designated by the President;
          (2) the Chief Justice and the Associate Justices of 
        the Supreme Court;
          (3)(A) officers compensated at Level I of the 
        Executive Schedule pursuant to section 5312 of title 5; 
        and
          (B) a single principal deputy to an officer described 
        in subclause (A) of this clause, when a determination 
        is made by such officer that such transportation is 
        appropriate;
          (4) principal diplomatic and consular officials 
        abroad, and the United States Ambassador to the United 
        Nations;
          (5) the Deputy Secretary of Defense and Under 
        Secretaries of Defense, the Secretary of the Air Force, 
        the Secretary of the Army, the Secretary of the Navy, 
        the members and Vice Chairman of the Joint Chiefs of 
        Staff, and the Commandant of the Coast Guard;
          (6) the Director of the Central Intelligence Agency 
        and the Director of the Federal Bureau of 
        Investigation;
          (7) the Chairman of the Board of Governors of the 
        Federal Reserve System;
          (8) the Comptroller General of the United States and 
        the Postmaster General of the United States; and
          (9) an officer or employee with regard to whom the 
        head of a Federal agency makes a determination, in 
        accordance with subsection (d) of this section and with 
        regulations prescribed pursuant to paragraph (1) of 
        subsection (e), that highly unusual circumstances 
        present a clear and present danger, that an emergency 
        exists, or that other compelling operational 
        considerations make such transportation essential to 
        the conduct of official business.
Except as provided in paragraph (2) of subsection (d), any 
authorization made pursuant to clause (9) of this subsection to 
permit the use of a passenger carrier to transport an officer 
or employee between residence and place of employment shall be 
effective for not more than 15 calendar days.
      (c) A passenger carrier may be used to transport between 
residence and place of employment any person for whom 
protection is specifically authorized pursuant to section 
3056(a) of title 18 or for whom transportation is authorized 
pursuant to section 28 of the State Department Basic 
Authorities Act of 1956, section 2637 of title 10, or section 
8(a)(1) of the Central Intelligence Agency Act of 1949.
      (d)(1) Any determination made under subsection (b)(9) of 
this section shall be in writing and shall include the name and 
title of the officer or employee affected, the reason for such 
determination, and the duration of the authorization for such 
officer or employee to use a passenger carrier for 
transportation between residence and place of employment.
      (2) If a clear and present danger, an emergency, or a 
compelling operational consideration described in subsection 
(b)(9) of this section extends or may extend for a period in 
excess of 15 calendar days, the head of the Federal agency 
shall determine whether an authorization under such paragraph 
shall be extended in excess of 15 calendar days for a period of 
not more than 90 additional calendar days. Determinations made 
under this paragraph may be reviewed by the head of such agency 
at the end of each such period, and, where appropriate, a 
subsequent determination may be made whether such danger, 
emergency, or consideration continues to exist and whether an 
additional extension, not to exceed 90 calendar days, may be 
authorized. Determinations made under this paragraph shall be 
in accordance with regulations prescribed pursuant to paragraph 
(1) of subsection (e).
      (3) The authority to make designations under subsection 
(b)(1) of this section and to make determinations pursuant to 
subsections (a)(2) and (b)(3)(B) and (9) of this section and 
pursuant to paragraph (2) of this subsection may not be 
delegated, except that, with respect to the Executive Office of 
the President, the President may delegate the authority of the 
President under subsection (b)(9) of this section to an officer 
in the Executive Office of the President. No designation or 
determination under this section may be made solely or 
principally for the comfort or convenience of the officer or 
employee.
    (4) Notification of each designation or determination made 
under subsection (b)(1), (3)(B), and (9) of this section and 
under paragraph (2) of this subsection, including the name and 
title of the officer or employee affected, the reason for any 
determination under subsection (b)(9), and the expected 
duration of any authorization under subsection (b)(9), shall be 
transmitted promptly to the Committee on Government Operations 
of the House of Representatives and the Committee on 
Governmental Affairs of the Senate.
    (e)(1) Not later than March 15, 1987, the Administrator of 
General Services, after consultation with the Comptroller 
General, the Director of the Office of Management and Budget, 
and the Director of the Administrative Office of the United 
States Courts, shall promulgate regulations governing the heads 
of all Federal agencies in making the determinations authorized 
by subsections (a)(2)(A), (b)(9), and (d)(2) of this section. 
Such regulations shall specify that the comfort and convenience 
of an officer or employee is not sufficient justification for 
authorizations of transportation under this section.
    (2) In promulgating regulations under paragraph (1) of this 
subsection, the Administrator of General Services shall provide 
criteria defining the term ``field work'' for purposes of 
subsection (a)(2)(A) of this section. Such criteria shall 
ensure that transportation between an employee's residence and 
the location of the field work will be authorized only to the 
extent that such transportation will substantially increase the 
efficiency and economy of the Government.
    (f) Each Federal agency shall maintain logs or other 
records necessary to establish the official purpose for 
Government transportation provided between an individual's 
residence and such individual's place of employment pursuant to 
this section.
    (g) As used in this section--
          (1) the term ``passenger carrier'' means a passenger 
        motor vehicle, aircraft, boat, ship, or other similar 
        means of transportation that is owned or leased by the 
        United States Government; and
          (2) the term ``Federal agency'' means--
                  (A) a department (as such term is defined in 
                section 18 of the Act of August 2, 1946 (41 
                U.S.C. 5a));
                  (B) an Executive department (as such term is 
                defined in section 101 of title 5);
                  (C) a military department (as such term is 
                defined in section 102 of title 5);
                  (D) a Government corporation (as such term is 
                defined in section 103(1) of title 5);
                  (E) a Government controlled corporation (as 
                such term is defined in section 103(2) of title 
                5);
                  (F) a mixed-ownership Government corporation 
                (as such term is defined in section 9101(2) of 
                this title);
                  (G) any establishment in the executive branch 
                of the Government (including the Executive 
                Office of the President);
                  (H) any independent regulatory agency 
                (including an independent regulatory agency 
                specified in section 3502(10) of title 44);
                  (I) the Smithsonian Institution; and
                  (J) any nonappropriated fund instrumentality 
                of the United States,
          except that such term does not include the government 
        of the District of Columbia.
    (h) Notwithstanding section 410(a) of title 39, this 
section applies to the United States Postal Service.

SEC. 1345. EXPENSES OF MEETINGS.

    Except as specifically provided by law, an appropriation 
may not be used for travel, transportation, and subsistence 
expenses for a meeting. This section does not prohibit--
          (1) an agency from paying the expenses of an officer 
        or employee of the United States Government carrying 
        out an official duty; and
          (2) the Secretary of Agriculture from paying 
        necessary expenses for a meeting called by the 
        Secretary for 4-H Boys and Girls Clubs as part of the 
        cooperative extension work of the Department of 
        Agriculture.

SEC. 1346. COMMISSIONS, COUNCILS, BOARDS, AND INTERAGENCY AND SIMILAR 
                    GROUPS.

    (a) Except as provided in this section--
          (1) public money and appropriations are not available 
        to pay--
                  (A) the pay or expenses of a commission, 
                council, board, or similar group, or a member 
                of that group;
                  (B) expenses related to the work or the 
                results of work or action of that group; or
                  (C) for the detail or cost of personal 
                services of an officer or employee from an 
                executive agency in connection with that group; 
                and
          (2) an accounting or disbursing official, absent a 
        special appropriation to pay the account or charge, may 
        not allow or pay an account or charge related to that 
        group.
    (b) Appropriations of an executive agency are available for 
the expenses of an interagency group conducting activities of 
interest common to executive agencies when the group includes a 
representative of the agency. The representatives receive no 
additional pay because of membership in the group. An officer 
or employee of an executive agency not a representative of the 
group may not receive additional pay for providing services for 
the group.
    (c) Subject to section 1347 of this title, this section 
does not apply to--
          (1) commissions, councils, boards, or similar groups 
        authorized by law;
          (2) courts-martial or courts of inquiry of the armed 
        forces; or
          (3) the contingent fund related to foreign relations 
        at the disposal of the President.

SEC. 1347. APPROPRIATIONS OR AUTHORIZATIONS REQUIRED FOR AGENCIES IN 
                    EXISTENCE FOR MORE THAN ONE YEAR.

    (a) An agency in existence for more than one year may not 
use amounts otherwise available for obligation to pay its 
expenses without a specific appropriation or specific 
authorization by law. If the principal duties and powers of the 
agency are substantially the same as or similar to the duties 
and powers of an agency established by executive order, the 
agency established later is deemed to have been in existence 
from the date the agency established by the order came into 
existence.
    (b) Except as specifically authorized by law, another 
agency may not use amounts available for obligation to pay 
expenses to carry out duties and powers substantially the same 
as or similar to the principal duties and powers of an agency 
that is prohibited from using amounts under this section.

SEC. 1348. TELEPHONE INSTALLATION AND CHARGES.

    (a)(1) Except as provided in this section, appropriations 
are not available to install telephones in private residences 
or for tolls or other charges for telephone service from 
private residences.
    (2) Under regulations of the Secretary of State, 
appropriations may be used to install and pay for the use of 
telephones in residences owned or leased by the United States 
Government in foreign countries for the use of the Foreign 
Service. Subsection (b) of this section applies to long-
distance calls made on those telephones.
    (b) Appropriations of an agency are available to pay 
charges for a long-distance call if required for official 
business and the voucher to pay for the call is sworn to by the 
head of the agency. Appropriations of an executive agency are 
available only if the head of the agency also certifies that 
the call is necessary in the interest of the Government.
    (c) Under regulations prescribed by the Secretary of the 
Army on recommendation of the Chief of Engineers, not more than 
$30,000 may be expended each fiscal year to install and use in 
private residences telephones required for official business in 
constructing and operating locks and dams for navigation, flood 
control, and related water uses.
    (d) Under regulations prescribed by the Secretary of 
Defense, funds appropriated to the Department of Defense are 
available to install, repair, and maintain telephone wiring in 
residences owned or leased by the United States Government and, 
if necessary for national defense purposes, in other private 
residences.

SEC. 1349. ADVERSE PERSONNEL ACTIONS

    (a) An officer or employee of the United States Government 
or of the District of Columbia government violating section 
1341(a) or 1342 of this title shall be subject to appropriate 
administrative discipline including, when circumstances 
warrant, suspension from duty without pay or removal from 
office.
    (b) An officer or employee who willfully uses or authorizes 
the use of a passenger motor vehicle or aircraft owned or 
leased by the United States Government (except for an official 
purpose authorized by section 1344 of this title) or otherwise 
violates section 1344 shall be suspended without pay by the 
head of the agency. The officer or employee shall be suspended 
for at least one month, and when circumstances warrant, for a 
longer period or summarily removed from office.

SEC. 1350. CRIMINAL PENALTY.

    An officer or employee of the United States Government or 
of the District of Columbia government knowingly and willfully 
violating section 1341(a) or 1342 of this title shall be fined 
not more than $5,000, imprisoned for not more than 2 years, or 
both.

SEC. 1351. REPORTS ON VIOLATIONS.

    If an officer or employee of an executive agency or an 
officer or employee of the District of Columbia government 
violates section 1341(a) or 1342 of this title, the head of the 
agency or the Mayor of the District of Columbia, as the case 
may be, shall report immediately to the President and Congress 
all relevant facts and a statement of actions taken.

SEC. 1352. LIMITATION ON USE OF APPROPRIATED FUNDS TO INFLUENCE CERTAIN 
                    FEDERAL CONTRACTING AND FINANCIAL TRANSACTIONS.

    (a)(1) None of the funds appropriated by any Act may be 
expended by the recipient of a Federal contract, grant, loan, 
or cooperative agreement to pay any person for influencing or 
attempting to influence an officer or employee of any agency, a 
Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any Federal 
action described in paragraph (2) of this subsection.
    (2) The prohibition in paragraph (1) of this subsection 
applies with respect to the following Federal actions:
          (A) The awarding of any Federal contract.
          (B) The making of any Federal grant.
          (C) The making of any Federal loan.
          (D) The entering into of any cooperative agreement.
          (E) The extension, continuation, renewal, amendment, 
        or modification of any Federal contract, grant, loan, 
        or cooperative agreement.
    (b)(1) Each person who requests or receives a Federal 
contract, grant, loan, or cooperative agreement from an agency 
or requests or receives from an agency a commitment providing 
for the United States to insure or guarantee a loan shall file 
with that agency, in accordance with paragraph (4) of this 
subsection--
          (A) a written declaration described in paragraph (2) 
        or (3) of this subsection, as the case may be; and
          (B) copies of all declarations received by such 
        person under paragraph (5).
    (2) A declaration filed by a person pursuant to paragraph 
(1)(A) of this subsection in connection with a Federal 
contract, grant, loan, or cooperative agreement shall contain--
          (A) a statement setting forth whether such person--
                  (i) has made any payment with respect to that 
                Federal contract, grant, loan, or cooperative 
                agreement, using funds other than appropriated 
                funds, which would be prohibited by subsection 
                (a) of this section if the payment were paid 
                for with appropriated funds; or
                  (ii) has agreed to make any such payment;
          (B) with respect to each such payment (if any) and 
        each such agreement (if any)--
                  (i) the name and address of each person paid, 
                to be paid, or reasonably expected to be paid;
                  (ii) the name and address of each individual 
                performing the services for which such payment 
                is made, to be made, or reasonably expected to 
                be made;
                  (iii) the amount paid, to be paid, or 
                reasonably expected to be paid;
                  (iv) how the person was paid, is to be paid, 
                or is reasonably expected to be paid; and
                  (v) the activity for which the person was 
                paid, is to be paid, or is reasonably expected 
                to be paid; and
          (C) a certification that the person making the 
        declaration has not made, and will not make, any 
        payment prohibited by subsection (a).
    (3) A declaration filed by a person pursuant to paragraph 
(1)(A) of this subsection in connection with a commitment 
providing for the United States to insure or guarantee a loan 
shall contain--
          (A) a statement setting forth whether such person--
                  (i) has made any payment to influence or 
                attempt to influence an officer or employee of 
                any agency, a Member of Congress, an officer or 
                employee of Congress, or an employee of a 
                Member of Congress in connection with that loan 
                insurance or guaranty; or
                  (ii) has agreed to make any such payment; and
          (B) with respect to each such payment (if any) and 
        each such agreement (if any), the information described 
        in paragraph (2)(B) of this subsection.
    (4) A person referred to in paragraph (1)(A) of this 
subsection shall file a declaration referred to in that 
paragraph--
          (A) with each submission by such person that 
        initiates agency consideration of such person for award 
        of a Federal contract, grant, loan, or cooperative 
        agreement, or for grant of a commitment providing for 
        the United States to insure or guarantee a loan;
          (B) upon receipt by such person of a Federal 
        contract, grant, loan, or cooperative agreement or of a 
        commitment providing for the United States to insure or 
        guarantee a loan, unless such person previously filed a 
        declaration with respect to such contract, grant, loan, 
        cooperative agreement or commitment pursuant to clause 
        (A); and
          (C) at the end of each calendar quarter in which 
        there occurs any event that materially affects the 
        accuracy of the information contained in any 
        declaration previously filed by such person in 
        connection with such Federal contract, grant, loan, 
        cooperative agreement, loan insurance commitment, or 
        loan guaranty commitment.
    (5) Any person who requests or receives from a person 
referred to in paragraph (1) of this subsection a subcontract 
under a Federal contract, a subgrant or contract under a 
Federal grant, a contract or subcontract to carry out any 
purpose for which a particular Federal loan is made, or a 
contract under a Federal cooperative agreement shall be 
required to file with the person referred to in such paragraph 
a written declaration referred to in clause (A) of such 
paragraph.
    (6)(A) The head of each agency shall collect and compile 
the information contained, pursuant to paragraphs (2)(B) and 
(3)(B) of this subsection, in the statements filed under this 
subsection and, on May 31 and November 30 of each year, submit 
to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the 
information contained, pursuant to such paragraphs, in the 
statements received during the six-month period ending on March 
31 or September 30, respectively, of that year. The report, 
including the compilation, shall be available for public 
inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (B) Notwithstanding subparagraph (A)--
          (i) information referred to in subparagraph (A) that 
        involves intelligence matters shall be reported only to 
        the Select Committee on Intelligence of the Senate, the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives, and the Committees on 
        Appropriations of the Senate and the House of 
        Representatives in accordance with procedures agreed to 
        by such committees;
          (ii) information referred to in subparagraph (A) that 
        is specifically authorized under criteria established 
        by an Executive order to be kept secret in the interest 
        of national defense or foreign policy, is classified in 
        accordance with such order, and is available only by 
        special access shall be reported only to the Committee 
        on Foreign Relations of the Senate and the Committee on 
        Foreign Affairs of the House of Representatives or the 
        Committees on Armed Services of the Senate and the 
        House of Representatives (whichever such committees 
        have jurisdiction of matters involving such 
        information) and to the Committees on Appropriations of 
        the Senate and the House of Representatives in 
        accordance with procedures agreed to by such 
        committees; and
          (iii) information reported in accordance with this 
        subparagraph shall not be available for public 
        inspection.
    (7) The Director of the Office of Management and Budget, 
after consulting with the Secretary of the Senate and the Clerk 
of the House of Representatives, shall issue guidance for 
agency implementation of, and compliance with, the requirements 
of this section.
    (c)(1) Any person who makes an expenditure prohibited by 
subsection (a) of this section shall be subject to a civil 
penalty of not less than $10,000 and not more than $100,000 for 
each such expenditure.
    (2)(A) Any person who fails to file or amend a declaration 
required to be filed or amended under subsection (b) of this 
section shall be subject to a civil penalty of not less than 
$10,000 and not more than $100,000 for each such failure.
    (B) A filing of a declaration of a declaration amendment on 
or after the date on which an administrative action for the 
imposition of a civil penalty under this subsection is 
commenced does not prevent the imposition of such civil penalty 
for a failure occurring before that date. For the purposes of 
this subparagraph, an administrative action is commenced with 
respect to a failure when an investigating official determines 
in writing to commence an investigation of an allegation of 
such failure.
    (3) Sections 3803 (except for subsection (c)), 3804, 3805, 
3806, 3807, 3808, and 3812 of this title shall be applied, 
consistent with the requirements of this section, to the 
imposition and collection of civil penalties under this 
subsection.
    (4) An imposition of a civil penalty under this subsection 
does not prevent the United States from seeking any other 
remedy that the United States may have for the same conduct 
that is the basis for the imposition of such civil penalty.
    (d)(1) The official of each agency referred to in paragraph 
(3) of this subsection shall submit to Congress each year an 
evaluation of the compliance of that agency with, and the 
effectiveness of, the requirements imposed by this section on 
the agency, persons requesting or receiving Federal contracts, 
grants, loans, or cooperative agreements from that agency, and 
persons requesting or receiving from that agency commitments 
providing for the United States to insure or guarantee loans. 
The report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (2) The report of an agency under paragraph (1) of this 
subsection shall include the following:
          (A) All alleged violations of the requirements of 
        subsections (a) and (b) of this section, relating to 
        the agency's Federal actions referred to in such 
        subsections, during the year covered by the report.
          (B) The actions taken by the head of the agency in 
        such year with respect to those alleged violations and 
        any alleged violations of subsections (a) and (b) of 
        this section that occurred before such year, including 
        the amounts of civil penalties imposed by the head of 
        such agency in such year, if any.
    (3) The Inspector General of an agency shall prepare and 
submit the annual report of the agency required by paragraph 
(1) of this subsection. In the case of an agency that does not 
have an inspector general, the agency official comparable to an 
inspector general shall prepare and submit the annual report, 
or, if there is no such comparable official, the head of the 
agency shall prepare and submit such annual report.
    (e)(1)(A) Subsection (a)(1) of this section does not apply 
in the case of a payment of reasonable compensation made to an 
officer or employee of a person requesting or receiving a 
Federal contract, grant, loan, or cooperative agreement to the 
extent that the payment is for agency and legislative liaison 
activities not directly related to a Federal action referred to 
in subsection (a)(2) of this section.
    (B) Subsection (a)(1) of this section does not prohibit any 
reasonable payment to a person in connection with, or any 
payment of reasonable compensation to an officer or employee of 
a person requesting or receiving, a Federal contract, grant, 
loan, or cooperative agreement or an extension, continuation, 
renewal, amendment, or modification of a Federal contract, 
grant, loan, or cooperative agreement if the payment is for 
professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, 
or application for that Federal contract, grant, loan, or 
cooperative agreement or for meeting requirements imposed by or 
pursuant to law as a condition for receiving that Federal 
contract, grant, loan, or cooperative agreement.
    (C) Nothing in this paragraph shall be construed as 
permitting the use of appropriated funds for making any payment 
prohibited in or pursuant to any other provision of law.
    (2) The reporting requirement in subsection (b) of this 
section shall not apply to any person with respect to--
          (A) payments of reasonable compensation made to 
        regularly employed officers or employees of a person 
        requesting or receiving a Federal contract, grant, 
        loan, or cooperative agreement or a commitment 
        providing for the United States to insure or guarantee 
        a loan;
          (B) a request for or receipt of a contract (other 
        than a contract referred to in clause (C)), grant, 
        cooperative agreement, subcontract (other than a 
        subcontract referred to in clause (C)), or subgrant 
        that does not exceed $100,000; and
          (C) a request for or receipt of a loan, or a 
        commitment providing for the United States to insure or 
        guarantee a loan, that does not exceed $150,000, or the 
        single family maximum mortgage limit for affected 
        programs, whichever is greater, including a contract or 
        subcontract to carry out any purpose for which such a 
        loan is made.
    (f) The Secretary of Defense may exempt a Federal action 
described in subsection (a)(2) from the prohibition in 
subsection (a)(1) whenever the Secretary determines, in 
writing, that such an exemption is in the national interest. 
The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such 
determination.
    (g) The head of each Federal agency shall take such actions 
as are necessary to ensure that the provisions of this section 
are vigorously implemented and enforced in such agency.
    (h) As used in this section:
          (1) The term ``recipient'', with respect to funds 
        received in connection with a Federal contract, grant, 
        loan, or cooperative agreement--
                  (A) includes the contractors, subcontractors, 
                or subgrantees (as the case may be) of the 
                recipient; but
                  (B) does not include an Indian tribe, tribal 
                organization, or any other Indian organization 
                eligible to receive Federal contracts, grants, 
                cooperative agreements, or loans from an agency 
                but only with respect to expenditures that are 
                by such tribe or organization for purposes 
                specified in subsection (a) and are permitted 
                by other Federal law.
          (2) The term ``agency'' has the same meaning provided 
        for such term in section 552(f) of title 5, and 
        includes a Government corporation, as defined in 
        section 9101(1) of this title.
          (3) The term ``person''--
                  (A) includes an individual, corporation, 
                company, association, authority, firm, 
                partnership, society, State, and local 
                government, regardless of whether such entity 
                is operated for profit or not for profit; but
                  (B) does not include an Indian tribe, tribal 
                organization, or any other Indian organization 
                eligible to receive Federal contracts, grants, 
                cooperative agreements, or loans from an agency 
                but only with respect to expenditures by such 
                tribe or organization that are made for 
                purposes specified in subsection (a) and are 
                permitted by other Federal law.
          (4) The term ``State'' means a State of the United 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, a territory or possession of the United 
        States, an agency or instrumentality of a State, and a 
        multi-State, regional, or interstate entity having 
        governmental duties and powers.
          (5) The term ``local government'' means a unit of 
        government in a State and, if chartered, established, 
        or otherwise recognized by a State for the performance 
        of a governmental duty, the following entities:
                  (A) A local public authority.
                  (B) A special district.
                  (C) An intrastate district.
                  (D) A council of governments.
                  (E) A sponsor group representative 
                organization.
                  (F) Any other instrumentality of a local 
                government.
          (6)(A) The terms ``Federal contract'', ``Federal 
        grant'', ``Federal cooperative agreement'' mean, 
        respectively--
                  (i) a contract awarded by an agency;
                  (ii) a grant made by an agency or a direct 
                appropriation made by law to any person; and
                  (iii) a cooperative agreement entered into by 
                an agency.
          (B) Such terms do not include--
                  (i) direct United States cash assistance to 
                an individual;
                  (ii) a loan;
                  (iii) loan insurance; or
                  (iv) a loan guaranty.
          (7) The term ``Federal loan'' means a loan made by an 
        agency. Such term does not include loan insurance or a 
        loan guaranty.
          (8) The term ``reasonable payment'' means, with 
        respect to professional and other technical services, a 
        payment in an amount that is consistent with the amount 
        normally paid for such services in the private sector.
          (9) The term ``reasonable compensation'' means, with 
        respect to a regularly employed officer or employee of 
        any person, compensation that is consistent with the 
        normal compensation for such officer or employee for 
        work that is not furnished to, not funded by, or not 
        furnished in cooperation with the Federal Government.
          (10) The term ``regularly employed'' with respect to 
        an officer or employee of a person requesting or 
        receiving a Federal contract, grant, loan, or 
        cooperative agreement or a commitment providing for the 
        United States to insure or guarantee a loan, means an 
        officer or employee who is employed by such person for 
        at least 130 working days within one year immediately 
        preceding the date of the submission that initiates 
        agency consideration of such person for receipt of such 
        contract, grant, loan, cooperative agreement, loan 
        insurance commitment, or loan guaranty commitment.
          (11) The terms ``Indian tribe'' and ``tribal 
        organization'' have the meaning provided in section 4 
        of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).

SEC. 1353. ACCEPTANCE OF TRAVEL AND RELATED EXPENSES FROM NON-FEDERAL 
                    SOURCES.

    (a) Notwithstanding any other provision of law, the 
Administrator of General Services, in consultation with the 
Director of the Office of Government Ethics, shall prescribe by 
regulation the conditions under which an agency in the 
executive branch (including an independent agency) may accept 
payment, or authorize an employee of such agency to accept 
payment on the agency's behalf, from non-Federal sources for 
travel, subsistence, and related expenses with respect to 
attendance of the employee (or the spouse of such employee) at 
any meeting or similar function relating to the official duties 
of the employee. Any cash payment so accepted shall be credited 
to the appropriation applicable to such expenses. In the case 
of a payment in kind so accepted, a pro rata reduction shall be 
made in any entitlement of the employee to payment from the 
Government for such expenses.
    (b) Except as provided in this section or section 4111 or 
7342 of title 5, an agency or employee may not accept payment 
for expenses referred to in subsection (a). An employee who 
accepts any payment in violation of the preceding sentence--
          (1) may be required, in addition to any penalty 
        provided by law, to repay, for deposit in the general 
        fund of the Treasury, an amount equal to the amount of 
        the payment so accepted; and
          (2) in the case of a repayment under paragraph (1), 
        shall not be entitled to any payment from the 
        Government for such expenses.
    (c) As used in this section--
          (1) the term ``executive branch'' means all executive 
        agencies (as such term is defined in section 105 of 
        title 5); and
          (2) the term ``employee in the executive branch'' 
        means--
                  (A) an appointed officer or employee in the 
                executive branch; and
                  (B) an expert or consultant in the executive 
                branch, under section 3109 of title 5; and
          (3) the term ``payment'' means a payment or 
        reimbursement, in cash or in kind.
    (d)(1) The head of each agency of the executive branch 
shall, in the manner provided in paragraph (2), submit to the 
Director of the Office of Government Ethics reports of payments 
of more than $250 accepted under this section with respect to 
employees of the agency. The Director shall make such reports 
available for public inspection and copying.
    (2) The reports required by paragraph (1) shall, with 
respect to each payment--
          (A) specify the amount and method of payment, the 
        name of the person making the payment, the name of the 
        employee, the nature of the meeting or similar 
        function, the time and place of travel, the nature of 
        the expenses, and such other information as the 
        Administrator of General Services may prescribe by 
        regulation under subsection (a);
          (B) be submitted not later than May 31 of each year 
        with respect to payments in the preceding period 
        beginning on October 1 and ending on March 31; and
          (C) be submitted not later than November 30 of each 
        year with respect to payments in the preceding period 
        beginning on April 1 and ending on September 30.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
1344......................................  41 C.F.R. 101-6             
1352......................................  7 C.F.R. 3018; 10 C.F.R.    
                                             601; 12 C.F.R. 411; 13     
                                             C.F.R. 146; 14 C.F.R. 1271;
                                             15 C.F.R. 28; 18 C.F.R.    
                                             1315; 22 C.F.R. 138, 227,  
                                             311, 519, 712; 24 C.F.R.   
                                             87; 28 C.F.R. 69; 29 C.F.R.
                                             93; 31 C.F.R. 21; 32 C.F.R.
                                             28; 34 C.F.R. 82; 38 C.F.R.
                                             45; 40 C.F.R. 34; 41       
                                             C.F.R.105-69; 43 C.F.R. 18;
                                             45 C.F.R. 93, 604, 1158,   
                                             1168, 1230; 49 C.F.R. 20   
1353......................................  41 C.F.R. 301-1             
1321......................................  OMB: Circular A-34, see     
                                             appendix IV                
1322......................................  OMB: Circular A-34, see     
                                             appendix IV                
1323......................................  OMB: Circular A-34, see     
                                             appendix IV                
1324......................................  OMB: Circular A-34, see     
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                    Subtitle II--the Budget Process

          * * * * * * *

                  CHAPTER 15--APPROPRIATION ACCOUNTING

                         Subchapter I--General

SEC. 1501. DOCUMENTARY EVIDENCE REQUIREMENT FOR GOVERNMENT OBLIGATIONS.

    (a) An amount shall be recorded as an obligation of the 
United States Government only when supported by documentary 
evidence of--
          (1) a binding agreement between an agency and another 
        person (including an agency) that is--
                  (A) in writing, in a way and form, and for a 
                purpose authorized by law; and
                  (B) executed before the end of the period of 
                availability for obligation of the 
                appropriation or fund used for specific goods 
                to be delivered, real property to be bought or 
                leased, or work or service to be provided;
          (2) a loan agreement showing the amount and terms of 
        repayment;
          (3) an order required by law to be placed with an 
        agency;
          (4) an order issued under a law authorizing purchases 
        without advertising--
                  (A) when necessary because of a public 
                exigency;
                  (B) for perishable subsistence supplies; or
                  (C) within specific monetary limits;
          (5) a grant or subsidy payable--
                  (A) from appropriations made for payment of, 
                or contributions to, amounts required to be 
                paid in specific amounts fixed by law or under 
                formulas prescribed by law;
                  (B) under an agreement authorized by law; or
                  (C) under plans approved consistent with and 
                authorized by law;
          (6) a liability that may result from pending 
        litigation;
          (7) employment or services of persons or expenses of 
        travel under law;
          (8) services provided by public utilities; or
          (9) other legal liability of the Government against 
        an available appropriation or fund.
    (b) A statement of obligations provided to Congress or a 
committee of Congress by an agency shall include only those 
amounts that are obligations consistent with subsection (a) of 
this section.

SEC. 1502. BALANCES AVAILABLE.

    (a) The balance of an appropriation or fund limited for 
obligation to a definite period is available only for payment 
of expenses properly incurred during the period of availability 
or to complete contracts properly made within that period of 
availability and obligated consistent with section 1501 of this 
title. However, the appropriation or fund is not available for 
expenditure for a period beyond the period otherwise authorized 
by law.
    (b) A provision of law requiring that the balance of an 
appropriation or fund be returned to the general fund of the 
Treasury at the end of a definite period does not affect the 
status of lawsuits or rights of action involving the right to 
an amount payable from the balance.

SEC. 1503. COMPTROLLER GENERAL REPORTS OF AMOUNTS FOR WHICH NO 
                    ACCOUNTING IS MADE.

    The Comptroller General shall make a special report each 
year to Congress on recommendations for changes in laws, that 
the Comptroller General believes may be in the public interest, 
about amounts--
          (1) for which no accounting is made to the 
        Comptroller General; and
          (2) that are in--
                  (A) accounts of the United States Government; 
                or
                  (B) the custody of an officer or employee of 
                the Government if the Government is financially 
                concerned.

                      Subchapter II--Apportionment

SEC. 1511. DEFINITION AND APPLICATION.

    (a) In this subchapter, ``appropriations'' means--
          (1) appropriated amounts;
          (2) funds; and
          (3) authority to make obligations by contract before 
        appropriations.
  (b) This subchapter does not apply to--
          (1) amounts (except amounts for administrative 
        expenses) available--
                  (A) for price support and surplus removal of 
                agricultural commodities; and
                  (B) under section 32 of the Act of August 24, 
                1935 (7 U.S.C. 612c);
          (2) a corporation getting amounts to make loans 
        (except paid in capital amounts) without legal 
        liability on the part of the United States Government; 
        and
          (3) the Senate, the House of Representatives, a 
        committee of Congress, a member, officer, employee, or 
        office of either House of Congress, or the Office of 
        the Architect of the Capitol or an officer or employee 
        of that Office.

SEC. 1512. APPORTIONMENT AND RESERVES.

    (a) Except as provided in this subchapter, an appropriation 
available for obligation for a definite period shall be 
apportioned to prevent obligation or expenditure at a rate that 
would indicate a necessity for a deficiency or supplemental 
appropriation for the period. An appropriation for an 
indefinite period and authority to make obligations by contract 
before appropriations shall be apportioned to achieve the most 
effective and economical use. An apportionment may be 
reapportioned under this section.
    (b)(1) An appropriation subject to apportionment is 
apportioned by--
          (A) months, calendar quarters, operating seasons, or 
        other time periods;
          (B) activities, functions, projects, or objects; or
          (C) a combination of the ways referred to in clauses 
        (A) and (B) of this paragraph.
    (2) The official designated in section 1513 of this title 
to make apportionments shall apportion an appropriation under 
paragraph (1) of this subsection as the official considers 
appropriate. Except as specified by the official, an amount 
apportioned is available for obligation under the terms of the 
appropriation on a cumulative basis unless reapportioned.
    (c)(1) In apportioning or reapportioning an appropriation, 
a reserve may be established only--
          (A) to provide for contingencies;
          (B) to achieve savings made possible by or through 
        changes in requirements or greater efficiency of 
        operations; or
          (C) as specifically provided by law.
    (2) A reserve established under this subsection may be 
changed as necessary to carry out the scope and objectives of 
the appropriation concerned. When an official designated in 
section 1513 of this title to make apportionments decides that 
an amount reserved will not be required to carry out the 
objectives and scope of the appropriation concerned, the 
official shall recommend the rescission of the amount in the 
way provided in chapter 11 of this title for appropriation 
requests. Reserves established under this section shall be 
reported to Congress as provided in the Impoundment Control Act 
of 1974 (2 U.S.C. 681 et seq.).
    (d) An apportionment or a reapportionment shall be reviewed 
at least 4 times a year by the official designated in section 
1513 of this title to make apportionments.

SEC. 1513. OFFICIALS CONTROLLING APPORTIONMENTS.

    (a) The official having administrative control of an 
appropriation available to the legislative branch, the judicial 
branch, the United States International Trade Commission, or 
the District of Columbia government that is required to be 
apportioned under section 1512 of this title shall apportion 
the appropriation in writing. An appropriation shall be 
apportioned not later than the later of the following:
          (1) 30 days before the beginning of the fiscal year 
        for which the appropriation is available; or
          (2) 30 days after the date of enactment of the law by 
        which the appropriation is made available.
    (b)(1) The President shall apportion in writing an 
appropriation available to an executive agency (except the 
Commission) that is required to be apportioned under section 
1512 of this title. The head of each executive agency to which 
the appropriation is available shall submit to the President 
information required for the apportionment in the form and the 
way and at the time specified by the President. The information 
shall be submitted not later than the later of the following:
          (A) 40 days before the beginning of the fiscal year 
        for which the appropriation is available; or
          (B) 15 days after the date of enactment of the law by 
        which the appropriation is made available.
    (2) The President shall notify the head of the executive 
agency of the action taken in apportioning the appropriation 
under paragraph (1) of this subsection not later than the later 
of the following:
          (A) 20 days before the beginning of the fiscal year 
        for which the appropriation is available; or
          (B) 30 days after the date of enactment of the law by 
        which the appropriation is made available.
    (c) By the first day of each fiscal year, the head of each 
executive department of the United States Government shall 
apportion among the major organizational units of the 
department the maximum amount to be expended by each unit 
during the fiscal year out of each contingent fund appropriated 
for the entire year for the department. Each amount may be 
changed during the fiscal year only by written direction of the 
head of the department. The direction shall state the reasons 
for the change.
    (d) An appropriation apportioned under this subchapter may 
be divided and subdivided administratively within the limits of 
the apportionment.
    (e) This section does not affect the initiation and 
operation of agricultural price support programs.

SEC. 1514. ADMINISTRATIVE DIVISION OF APPORTIONMENTS.

    (a) The official having administrative control of an 
appropriation available to the legislative branch, the judicial 
branch, the United States International Trade Commission, or 
the District of Columbia government, and, subject to the 
approval of the President, the head of each executive agency 
(except the Commission) shall prescribe by regulation a system 
of administrative control not inconsistent with accounting 
procedures prescribed under law. The system shall be designed 
to--
          (1) restrict obligations or expenditures from each 
        appropriation to the amount of apportionments or 
        reapportionments of the appropriation; and
          (2) enable the official or the head of the executive 
        agency to fix responsibility for an obligation or 
        expenditure exceeding an apportionment or 
        reapportionment.
    (b) To have a simplified system for administratively 
dividing appropriations, the head of each executive agency 
(except the Commission) shall work toward the objective of 
financing each operating unit, at the highest practical level, 
from not more than one administrative division for each 
appropriation affecting the unit.

SEC. 1515. AUTHORIZED APPORTIONMENTS NECESSITATING DEFICIENCY OR 
                    SUPPLEMENTAL APPROPRIATIONS.

    (a) An appropriation required to be apportioned under 
section 1512 of this title may be apportioned on a basis that 
indicates the need for a deficiency or supplemental 
appropriation to the extent necessary to permit payment of such 
pay increases as may be granted pursuant to law to civilian 
officers and employees (including prevailing rate employees 
whose pay is fixed and adjusted under subchapter IV of chapter 
53 of title 5) and to retired and active military personnel.
    (b)(1) Except as provided in subsection (a) of this 
section, an official may make, and the head of an executive 
agency may request, an apportionment under section 1512 of this 
title that would indicate a necessity for a deficiency or 
supplemental appropriation only when the official or agency 
head decides that the action is required because of--
          (A) a law enacted after submission to Congress of the 
        estimates for an appropriation that requires an 
        expenditure beyond administrative control; or
          (B) an emergency involving the safety of human life, 
        the protection of property, or the immediate welfare of 
        individuals when an appropriation that would allow the 
        United States Government to pay, or contribute to, 
        amounts required to be paid to individuals in specific 
        amounts fixed by law or under formulas prescribed by 
        law, is insufficient.
    (2) If an official making an apportionment decides that an 
apportionment would indicate a necessity for a deficiency or 
supplemental appropriation, the official shall submit 
immediately a detailed report of the facts to Congress. The 
report shall be referred to in submitting a proposed deficiency 
or supplemental appropriation.

SEC. 1516. EXEMPTIONS.

    An official designated in section 1513 of this title to 
make apportionments may exempt from apportionment--
          (1) a trust fund or working fund if an expenditure 
        from the fund has no significant effect on the 
        financial operations of the United States Government;
          (2) a working capital fund or a revolving fund 
        established for intragovernmental operations;
          (3) receipts from industrial and power operations 
        available under law; and
          (4) appropriations made specifically for--
                  (A) interest on, or retirement of, the public 
                debt;
                  (B) payment of claims, judgments, refunds, 
                and drawbacks;
                  (C) items the President decides are of a 
                confidential nature;
                  (D) payment under a law requiring payment of 
                the total amount of the appropriation to a 
                designated payee; and
                  (E) grants to the States under the Social 
                Security Act (42 U.S.C. 301 et seq.).

SEC. 1517. PROHIBITED OBLIGATIONS AND EXPENDITURES.

    (a) An officer or employee of the United States Government 
or of the District of Columbia government may not make or 
authorize an expenditure or obligation exceeding--
          (1) an apportionment; or
          (2) the amount permitted by regulations prescribed 
        under section 1514(a) of this title.
    (b) If an officer or employee of an executive agency or of 
the District of Columbia government violates subsection (a) of 
this section, the head of the executive agency or the Mayor of 
the District of Columbia, as the case may be, shall report 
immediately to the President and Congress all relevant facts 
and a statement of actions taken.

SEC. 1518. ADVERSE PERSONNEL ACTIONS.

    An officer or employee of the United States Government or 
of the District of Columbia government violating section 
1517(a) of this title shall be subject to appropriate 
administrative discipline including, when circumstances 
warrant, suspension from duty without pay or removal from 
office.

SEC. 1519. CRIMINAL PENALTY.

    An officer or employee of the United States Government or 
of the District of Columbia government knowingly and willfully 
violating section 1517(a) of this title shall be fined not more 
than $5,000, imprisoned for not more than 2 years, or both.

              Subchapter III--Transfers and Reimbursements

SEC. 1531. TRANSFERS OF FUNCTIONS AND ACTIVITIES.

    (a) The balance of an appropriation available and necessary 
to finance or discharge a function or activity transferred or 
assigned under law within an executive agency or from one 
executive agency to another may be transferred to and used--
          (1) by the organizational unit or agency to which the 
        function or activity was transferred or assigned; and
          (2) for a purpose for which the appropriation was 
        originally available.
  (b) The head of the executive agency determines the amount 
that, with the approval of the President, is necessary to be 
transferred when the transfer or assignment of the function or 
activity is within the agency. The President determines the 
amount necessary to be transferred when the transfer or 
assignment of the function or activity is from one executive 
agency to another.
    (c) A balance transferred under this section is--
          (1) credited to an applicable existing or new 
        appropriation account;
          (2) merged with the amount in an account to which the 
        balance is credited; and
          (3) with the amount with which the balance is merged, 
        accounted for as one amount.
    (d) New appropriation accounts may be established to carry 
out subsection (c)(1) of this section.

SEC. 1532. WITHDRAWAL AND CREDIT.

    An amount available under law may be withdrawn from one 
appropriation account and credited to another or to a working 
fund only when authorized by law. Except as specifically 
provided by law, an amount authorized to be withdrawn and 
credited is available for the same purpose and subject to the 
same limitations provided by the law appropriating the amount. 
A withdrawal and credit is made by check and without a warrant.

SEC. 1533. TRANSFERS OF APPROPRIATIONS FOR SALARIES AND EXPENSES TO 
                    CARRY OUT NATIONAL DEFENSE RESPONSIBILITIES.

    An appropriation of an executive agency for salaries and 
expenses is available to carry out national defense 
responsibilities assigned to the agency under law. A transfer 
necessary to carry out this section may be made between 
appropriations or allocations within the executive agency. An 
allocation may not be made to an executive agency that can 
carry out with its regular personnel a defense activity 
assigned to it by using the authority of this section to 
realign its regular programs.

SEC. 1534. ADJUSTMENTS BETWEEN APPROPRIATIONS.

    (a) An appropriation available to an agency may be charged 
at any time during a fiscal year for the benefit of another 
appropriation available to the agency to pay costs--
          (1) when amounts are available in both the 
        appropriation to be charged and the appropriation to be 
        benefited; and
          (2) subject to limitations applicable to the 
        appropriations.
    (b) Amounts paid under this section are charged on a final 
basis during, or as of the close of, the fiscal year to the 
appropriation benefited. The appropriation charged under 
subsection (a) of this section shall be appropriately credited.

SEC. 1535. AGENCY AGREEMENTS.

    (a) The head of an agency or major organizational unit 
within an agency may place an order with a major organizational 
unit within the same agency or another agency for goods or 
services if--
          (1) amounts are available;
          (2) the head of the ordering agency or unit decides 
        the order is in the best interest of the United States 
        Government;
          (3) the agency or unit to fill the order is able to 
        provide or get by contract the ordered goods or 
        services; and
          (4) the head of the agency decides ordered goods or 
        services cannot be provided by contract as conveniently 
        or cheaply by a commercial enterprise.
    (b) Payment shall be made promptly by check on the written 
request of the agency or unit filling the order. Payment may be 
in advance or on providing the goods or services ordered and 
shall be for any part of the estimated or actual cost as 
determined by the agency or unit filling the order. A bill 
submitted or a request for payment is not subject to audit or 
certification in advance of payment. Proper adjustment of 
amounts paid in advance shall be made as agreed to by the heads 
of the agencies or units on the basis of the actual cost of 
goods or services provided.
    (c) A condition or limitation applicable to amounts for 
procurement of an agency or unit placing an order or making a 
contract under this section applies to the placing of the order 
or the making of the contract.
    (d) An order placed or agreement made under this section 
obligates an appropriation of the ordering agency or unit. The 
amount obligated is deobligated to the extent that the agency 
or unit filling the order has not incurred obligations, before 
the end of the period of availability of the appropriation, 
in--
          (1) providing goods or services; or
          (2) making an authorized contract with another person 
        to provide the requested goods or services.
    (e) This section does not--
          (1) authorize orders to be placed for goods or 
        services to be provided by convict labor; or
          (2) affect other laws about working funds.

                                  NOTE

                         Economy Act Purchases

    Pub.L. 103-355, Title I, Sec. 1074, Oct. 13, 1994, 108 
Stat. 3271, provided that:
    ``(a) Regulations Required.--The Federal Acquisition 
Regulation shall be revised to include regulations governing 
the exercise of the authority under section 1535 of title 31, 
United States Code [this section], for Federal agencies to 
purchase goods and services under contracts entered into or 
administered by other agencies.
    ``(b) Content of Regulations.--The regulations prescribed 
pursuant to subsection (a) shall--
          ``(1) require that each purchase described in 
        subsection (a) be approved in advance by a contracting 
        officer of the ordering agency with authority to 
        contract for the goods or services to be purchased or 
        by another official in a position specifically 
        designated by regulation to approve such purchase;
          ``(2) provide that such a purchase of goods or 
        services may be made only if--
                  ``(A) the purchase is appropriately made 
                under a contract that the agency filling the 
                purchase order entered into, before the 
                purchase order, in order to meet the 
                requirements of such agency for the same or 
                similar goods or services;
                  ``(B) the agency filling the purchase order 
                is better qualified to enter into or administer 
                the contract for such goods or services by 
                reason of capabilities or expertise that is not 
                available within the ordering agency; or
                  ``(C) the agency or unit filling the order is 
                specifically authorized by law or regulations 
                to purchase such goods or services on behalf of 
                other agencies;
          ``(3) prohibit any such purchase under a contract or 
        other agreement entered into or administered by an 
        agency not covered by the provisions of chapter 137 of 
        title 10, United States Code, or title III of the 
        Federal Property and Administrative Services Act of 
        1949 (41 U.S.C. 251 et seq.) and not covered by the 
        Federal Acquisition Regulation unless the purchase is 
        approved in advance by the senior procurement official 
        responsible for purchasing by the ordering agency; and
          ``(4) prohibit any payment to the agency filling a 
        purchase order of any fee that exceeds the actual cost 
        or, if the actual cost is not known, the estimated cost 
        of entering into and administering the contract or 
        other agreement under which the order is filled.
    ``(c) Monitoring System Required.--The Administrator for 
Federal Procurement Policy shall ensure that, not later than 
one year after the date of the enactment of this Act [Oct. 13, 
1994], systems for collecting and evaluating procurement data 
are capable of collecting and evaluating appropriate data on 
procurements conducted under the regulations prescribed 
pursuant to subsection (a).
    ``(d) Termination.--This section shall cease to be 
effective one year after the date on which final regulations 
prescribed pursuant to subsection (a) take effect.'' [Note 
effective Oct. 13, 1994, except as otherwise provided, see 
section 10001 of Pub.L. 103-355, set out as a note under 
section 251 of Title 41, Public Contracts.]

         Department of Defense Purchases Through Other Agencies

    Pub.L. 103-160, Div. A, Title VIII, Sec. 844, Nov. 30, 
1993, 107 Stat. 1720, provided that:
    ``(a) Regulations Required.--Not later than six months 
after the date of the enactment of this Act [Nov. 30, 1993], 
the Secretary of Defense shall prescribe regulations governing 
the exercise by the Department of Defense of the authority 
under section 1535 of title 31, United States Code [this 
section], to purchase goods and services under contracts 
entered into or administered by another agency.
    ``(b) Content of Regulations.--The regulations prescribed 
pursuant to subsection (a) shall--
          ``(1) require that each purchase described in 
        subsection (a) be approved in advance by a contracting 
        officer of the Department of Defense with authority to 
        contract for the goods or services to be purchased or 
        by another official in a position specifically 
        designated by regulation to approve such purchase;
          ``(2) provide that such a purchase of goods or 
        services may be made only if--
                  ``(A) the purchase is appropriately made 
                under a contract that the agency filling the 
                purchase order entered into, before the 
                purchase order, in order to meet the 
                requirements of such agency for the same or 
                similar goods or services;
                  ``(B) the agency filling the purchase order 
                is better qualified to enter into or administer 
                the contract for such goods or services by 
                reason of capabilities or expertise that is not 
                available within the Department;
                  ``(C) the agency or unit filling the order is 
                specifically authorized by law or regulations 
                to purchase such goods or services on behalf of 
                other agencies; or
                  ``(D) the purchase is authorized by an 
                Executive order or a revision to the Federal 
                Acquisition Regulation setting forth specific 
                additional circumstances in which purchases 
                referred to in subsection (a) are authorized;
          ``(3) prohibit any such purchase under a contract or 
        other agreement entered into or administered by an 
        agency not covered by the provisions of chapter 137 of 
        title 10, United States Code [section 2301 et seq. of 
        Title 10, Armed Forces], or title III of the Federal 
        Property and Administrative Services Act of 1949 
        [section 251 et seq. of Title 41, Public Contracts] and 
        not covered by the Federal Acquisition Regulation 
        unless the purchase is approved in advance by the 
        Senior Acquisition Executive responsible for purchasing 
        by the ordering agency or unit; and
          ``(4) prohibit any payment to the agency filling a 
        purchase order of any fee that exceeds the actual cost 
        or, if the actual cost is not known, the estimated cost 
        of entering into and administering the contract or 
        other agreement under which the order is filled.
    ``(c) Monitoring System Required.--The Secretary of Defense 
shall ensure that, not later than one year after the date of 
the enactment of this Act [Nov. 30, 1993], systems of the 
Department of Defense for collecting and evaluating procurement 
data are capable of collecting and evaluating appropriate data 
on procurements conducted under the regulations prescribed 
pursuant to subsection (a).
    ``(d) Termination.--This section [this note] shall cease to 
be effective one year after the date on which final regulations 
prescribed pursuant to subsection (a) take effect.''

  Acquisition of Goods, Services, or Space by Secretary of Senate and 
             Sergeant at Arms and Doorkeeper of the Senate

    Pub.L. 101-163, Title I, Sec. 8, Nov. 21, 1989, 103 Stat. 
1046, provided that:
          ``(1) The Secretary of the Senate and the Sergeant at 
        Arms and Doorkeeper of the Senate are authorized to 
        acquire goods, services, or space from government 
        agencies and units by agreement under the provisions of 
        the Economy Act, 31 U.S.C. 1535, and to make advance 
        payments in conjunction therewith, if required by the 
        providing agency or establishment.
          ``(2) No advance payment may be made under paragraph 
        (1) unless specifically provided for in the agreement. 
        No agreement providing for advance payment may be 
        entered into unless it contains a provision requiring 
        the refund of any unobligated balance of the advance.
          ``(3) No agreement may be entered into under 
        paragraph (1) without the approval of the Senate 
        Committee on Rules and Administration and the Senate 
        Committee on Appropriations.''
                              ----------                              


SEC. 1536. CREDITING PAYMENTS FROM PURCHASES BETWEEN EXECUTIVE 
                    AGENCIES.

    (a) An advance payment made on an order under section 1535 
of this title is credited to a special working fund that the 
Secretary of the Treasury considers necessary to be 
established. Except as provided in this section, any other 
payment is credited to the appropriation or fund against which 
charges were made to fill the order.
    (b) An amount paid under section 1535 of this title may be 
expended in providing goods or services or for a purpose 
specified for the appropriation or fund credited. Where goods 
are provided from stocks on hand, the amount received in 
payment is credited so as to be available to replace the goods 
unless--
          (1) another law authorizes the amount to be credited 
        to some other appropriation or fund; or
          (2) the head of the executive agency filling the 
        order decides that replacement is not necessary, in 
        which case, the amount received is deposited in the 
        Treasury as miscellaneous receipts.
    (c) This section does not affect other laws about working 
funds.

SEC. 1537. SERVICES BETWEEN THE UNITED STATES GOVERNMENT AND THE 
                    DISTRICT OF COLUMBIA GOVERNMENT.

    (a) To prevent duplication and to promote efficiency and 
economy, an officer or employee of--
          (1) the United States Government may provide services 
        to the District of Columbia government; and
          (2) the District of Columbia government may provide 
        services to the United States Government.
    (b)(1) Services under this section shall be provided under 
an agreement--
          (A) negotiated by officers and employees of the two 
        governments; and
          (B) approved by the Director of the Office of 
        Management and Budget and the Mayor of the District of 
        Columbia.
    (2) Each agreement shall provide that the cost of providing 
the services shall be borne in the way provided in subsection 
(c) of this section by the government to which the services are 
provided at rates or charges based on the actual cost of 
providing the services.
    (3) To carry out an agreement made under this subsection, 
the agreement may provide for the delegation of duties and 
powers of officers and employees of--
          (A) the District of Columbia government to officers 
        and employees of the United States Government; and
          (B) the United States Government to officers and 
        employees of the District of Columbia government.
    (c) In providing services under an agreement made under 
subsection (b) of this section--
          (1) costs incurred by the United States Government 
        may be paid from appropriations available to the 
        District of Columbia government officer or employee to 
        whom the services were provided; and
          (2) costs incurred by the District of Columbia 
        government may be paid from amounts available to the 
        United States Government officer or employee to whom 
        the services were provided.
    (d) When requested by the Director of the United States 
Secret Service, the Chief of the Metropolitan Police shall 
assist the Secret Service and the Executive Protective Service 
on a non-reimbursable basis in carrying out their protective 
duties under section 302 of title 3 and section 3056 of title 
18.

                    Subchapter IV--Closing Accounts

SEC. 1551. DEFINITIONS; APPLICABILITY OF SUBCHAPTER.

    (a) In this subchapter--
          (1) An obligated balance of an appropriation account 
        as of the end of a fiscal year is the amount of 
        unliquidated obligations applicable to the 
        appropriation less amounts collectible as repayments to 
        the appropriation.
          (2) An unobligated balance is the difference between 
        the obligated balance and the total unexpended balance.
          (3) A fixed appropriation account is an appropriation 
        account available for obligation for a definite period.
    (b) The limitations on the availability for expenditure 
prescribed in this subchapter apply to all appropriations 
unless specifically otherwise authorized by a law that 
specifically--
          (1) identifies the appropriate account for which the 
        availability for expenditure is to be extended;
          (2) provides that such account shall be available for 
        recording, adjusting, and liquidating obligations 
        properly chargeable to that account; and
          (3) extends the availability for expenditure of the 
        obligated balances.
    (c) This subchapter does not apply to--
          (1) appropriations for the District of Columbia 
        government; or
          (2) appropriations to be disbursed by the Secretary 
        of the Senate or the Clerk of the House of 
        Representatives.

SEC. 1552. PROCEDURE FOR APPROPRIATION ACCOUNTS AVAILABLE FOR DEFINITE 
                    PERIODS.

    (a) On September 30th of the 5th fiscal year after the 
period of availability for obligation of a fixed appropriation 
account ends, the account shall be closed and any remaining 
balance (whether obligated or unobligated) in the account shall 
be canceled and thereafter shall not be available for 
obligation or expenditure for any purpose.
    (b) Collections authorized or required to be credited to an 
appropriation account, but not received before closing of the 
account under subsection (a) or under section 1555 of this 
title shall be deposited in the Treasury as miscellaneous 
receipts.

SEC. 1553. AVAILABILITY OF APPROPRIATION ACCOUNTS TO PAY OBLIGATIONS.

    (a) After the end of the period of availability for 
obligation of a fixed appropriation account and before the 
closing of that account under section 1552(a) of this title, 
the account shall retain its fiscal-year identity and remain 
available for recording, adjusting, and liquidating obligations 
properly chargeable to that account.
    (b)(1) Subject to the provisions of paragraph (2), after 
the closing of an account under section 1552(a) or 1555 of this 
title, obligations and adjustments to obligations that would 
have been properly chargeable to that account, both as to 
purpose and in amount, before closing and that are not 
otherwise chargeable to any current appropriation account of 
the agency may be charged to any current appropriation account 
of the agency available for the same purpose.
    (2) The total amount of charges to an account under 
paragraph (1) may not exceed an amount equal to 1 percent of 
the total appropriations for that account.
    (c)(1) In the case of a fixed appropriation account with 
respect to which the period of availability for obligation has 
ended, if an obligation of funds from that account to provide 
funds for a program, project, or activity to cover amounts 
required for contract changes would cause the total amount of 
obligations from that appropriation during a fiscal year for 
contract changes for that program, project, or activity to 
exceed $4,000,000, the obligation may only be made if the 
obligation is approved by the head of the agency (or an officer 
of the agency within the Office of the head of the agency to 
whom the head of the agency has delegated the authority to 
approve such an obligation).
    (2) In the case of a fixed appropriation account with 
respect to which the period of availability for obligation has 
ended, if an obligation of funds from that account to provide 
funds for a program, project, or activity to cover amounts 
required for contract changes would cause the total amount 
obligated from that appropriation during a fiscal year for that 
program, project, or activity to exceed $25,000,000, the 
obligation may not be made until--
          (A) the head of the agency submits to the appropriate 
        authorizing committees of Congress and the Committees 
        on Appropriations of the Senate and the House of 
        Representatives a notice in writing of the intent to 
        obligate such funds, together with a description of the 
        legal basis for the proposed obligation and the policy 
        reasons for the proposed obligation; and
          (B) a period of 30 days has elapsed after the notice 
        is submitted.
    (3) In this subsection, the term ``contract change'' means 
a change to a contract under which the contractor is required 
to perform additional work. Such term does not include 
adjustments to pay claims or increases under an escalation 
clause.
    (d)(1) Obligations under this section may be paid without 
prior action of the Comptroller General.
    (2) This subchapter does not--
          (A) relieve the Comptroller General of the duty to 
        make decisions requested under law; or
          (B) affect the authority of the Comptroller General 
        to settle claims and accounts.

SEC. 1554. AUDIT, CONTROL, AND REPORTING.

    (a) Any audit requirement, limitation on obligations, or 
reporting requirement that is applicable to an appropriation 
account shall remain applicable to that account after the end 
of the period of availability for obligation of that account.
    (b)(1) After the close of each fiscal year, the head of 
each agency shall submit to the President and the Secretary of 
the Treasury a report regarding the unliquidated obligations, 
unobligated balances, canceled balances, and adjustments made 
to appropriation accounts of that agency during the completed 
fiscal year. The report shall be submitted no later than 15 
days after the date on which the President's budget for the 
next fiscal year is submitted to Congress under section 1105 of 
this title.
    (2) Each report required by this subsection shall--
          (A) provide a description, with reference to the 
        fiscal year of appropriations, of the amount in each 
        account, its source, and an itemization of the 
        appropriations accounts;
          (B) describe all current and expired appropriations 
        accounts;
          (C) describe any payments made under section 1553 of 
        this title;
          (D) describe any adjustment of obligations during 
        that fiscal year pursuant to section 1553 of this 
        title;
          (E) contain a certification by the head of the agency 
        that the obligated balances in each appropriation 
        account of the agency reflect proper existing 
        obligations and that expenditures from the account 
        since the preceding review were supported by a proper 
        obligation of funds and otherwise were proper;
          (F) describe all balances canceled under sections 
        1552 and 1555 of this title.
    (3) The head of each Federal agency shall provide a copy of 
each such report to the Speaker of the House of Representatives 
and the Committee on Appropriations, the Committee on 
Governmental Affairs, and other appropriate oversight and 
authorizing committees of the Senate.
    (c) The head of each agency shall establish internal 
controls to assure that an adequate review of obligated 
balances is performed to support the certification required by 
section 1108(c) of this title.

SEC. 1555. CLOSING OF APPROPRIATION ACCOUNTS AVAILABLE FOR INDEFINITE 
                    PERIODS.

    An appropriation account available for obligation for an 
indefinite period shall be closed, and any remaining balance 
(whether obligated or unobligated) in that account shall be 
canceled and thereafter shall not be available for obligation 
or expenditure for any purpose, if--
          (1) the head of the agency concerned or the President 
        determines that the purposes for which the 
        appropriation was made have been carried out; and
          (2) no disbursement has been made against the 
        appropriation for two consecutive fiscal years.

SEC. 1556. COMPTROLLER GENERAL: REPORTS ON APPROPRIATION ACCOUNTS.

    (a) In carrying out audit responsibilities, the Comptroller 
General shall report on operations under this subchapter to--
        (1) the head of the agency concerned;
        (2) the Secretary of the Treasury; and
        (3) the President.
    (b) A report under this section shall include an appraisal 
of unpaid obligations under fixed appropriation accounts for 
which the period of availability for obligation has ended.

SEC. 1557. AUTHORITY FOR EXEMPTIONS IN APPROPRIATION LAWS.

    A provision of an appropriation law may exempt an 
appropriation from the provisions of this subchapter and fix 
the period for which the appropriation remains available for 
expenditure.

SEC. 1558. AVAILABILITY OF FUNDS FOLLOWING RESOLUTION OF A PROTEST.

    (a) Notwithstanding section 1552 of this title or any other 
provision of law, funds available to an agency for obligation 
for a contract at the time a protest is filed in connection 
with a solicitation for, proposed award of, or award of such 
contract shall remain available for obligation for 90 working 
days after the date on which the final ruling is made on the 
protest. A ruling is considered final on the date on which the 
time allowed for filing an appeal or request for 
reconsideration has expired, or the date on which a decision is 
rendered on such an appeal or request, whichever is later.
    (b) Subsection (a) applies with respect to any protest 
filed under subchapter V of chapter 35 of this title or under 
section 111(f) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)).
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
1514......................................  38 C.F.R. 1                 
1535......................................  32 C.F.R. 728; 48 C.F.R.    
                                             2417                       
                                            TFM, Volume 1, Part 2,      
                                             Chapter 2500, see appendix 
                                             V                          
                                            TFM, Volume 1, Part 6,      
                                             Chapter 8000, see appendix 
                                             V                          
1536......................................  TFM, Volume 1, Part 2,      
                                             Chapter 2500, see appendix 
                                             V                          
1511......................................  OMB: Circular A-34, see     
                                             appendix IV                
1512......................................  OMB: Circular A-34, see     
                                             appendix IV                
1513......................................  OMB: Circular A-34, see     
                                             appendix IV                
1514......................................  OMB: Circular A-34, see     
                                             appendix IV                
1515......................................  OMB: Circular A-34, see     
                                             appendix IV                
1516......................................  OMB: Circular A-34, see     
                                             appendix IV                
1517......................................  OMB: Circular A-34, see     
                                             appendix IV                
1518......................................  OMB: Circular A-34, see     
                                             appendix IV                
1519......................................  OMB: Circular A-34, see     
                                             appendix IV                
1551......................................  OMB: Circular A-34, see     
                                             appendix IV                
1552......................................  OMB: Circular A-34, see     
                                             appendix IV                
1553......................................  OMB: Circular A-34, see     
                                             appendix IV                
1554......................................  OMB: Circular A-34, see     
                                             appendix IV                
1555......................................  OMB: Circular A-34, see     
                                             appendix IV                
1556......................................  OMB: Circular A-34, see     
                                             appendix IV                
1557......................................  OMB: Circular A-34, see     
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                   Subtitle III--Financial Management

          * * * * * * *

                        CHAPTER 31--PUBLIC DEBT

                   Subchapter I--Borrowing Authority

SEC. 3101. PUBLIC DEBT LIMIT.

    (a) In this section, the current redemption value of an 
obligation issued on a discount basis and redeemable before 
maturity at the option of its holder is deemed to be the face 
amount of the obligation.
    (b) The face amount of obligations issued under this 
chapter and the face amount of obligations whose principal and 
interest are guaranteed by the United States Government (except 
guaranteed obligations held by the Secretary of the Treasury) 
may not be more than $4,900,000,000,000, outstanding at one 
time, subject to changes periodically made in that amount as 
provided by law through the congressional budget process 
described in Rule XLIX of the Rules of the House of 
Representatives or otherwise.
    (c) For purposes of this section, the face amount, for any 
month, of any obligation issued on a discount basis that is not 
redeemable before maturity at the option of the holder of the 
obligation is an amount equal to the sum of--
          (1) the original issue price of the obligation, plus
          (2) the portion of the discount on the obligation 
        attributable to periods before the beginning of such 
        month (as determined under the principles of section 
        1272(a) of the Internal Revenue Code of 1986 without 
        regard to any exceptions contained in paragraph (2) of 
        such section).

SEC. 3102. BONDS.

    (a) With the approval of the President, the Secretary of 
the Treasury may borrow on the credit of the United States 
Government amounts necessary for expenditures authorized by law 
and may issue bonds of the Government for the amounts borrowed 
and may buy, redeem, and make refunds under section 3111 of 
this title. The Secretary may issue bonds authorized by this 
section to the public and to Government accounts at any annual 
interest rate and prescribe conditions under section 3121 of 
this title.
    (b) The Secretary shall offer the bonds authorized under 
this section first as a popular loan under regulations of the 
Secretary that allow the people of the United States as nearly 
as possible an equal opportunity to participate in subscribing 
to the offered bonds. However, the bonds may be offered in a 
way other than as a popular loan when the Secretary decides the 
other way is in the public interest.
    (c)(1) When the Secretary decides it is in the public 
interest in making a bond offering under this section, the 
Secretary may--
          (A) make full allotments on receiving applications 
        for smaller amounts of bonds to subscribers applying 
        before the closing date the Secretary sets for filing 
        applications;
          (B) reject or reduce allotments on receiving 
        applications filed after the closing date or for larger 
        amounts;
          (C) reject or reduce allotments on receiving 
        applications from incorporated banks and trust 
        companies for their own account and make full 
        allotments or increase allotments to other subscribers; 
        and
          (D) prescribe a graduated scale of allotments.
    (2) The Secretary shall prescribe regulations applying to 
all popular loan subscribers similarly situated governing a 
reduction or increase of an allotment under paragraph (1) of 
this subsection.
    (d) The Secretary may make special arrangements for 
subscriptions from members of the armed forces. However, bonds 
issued to those members must be the same as other bonds of the 
same issue.
    (e) The Secretary may dispose of any part of a bond 
offering not taken and may prescribe the price and way of 
disposition.

SEC. 3103. NOTES.

    (a) With the approval of the President, the Secretary of 
the Treasury may borrow on the credit of the United States 
Government amounts necessary for expenditures authorized by law 
and may issue notes of the Government for the amounts borrowed 
and may buy, redeem, and make refunds under section 3111 of 
this title. The Secretary may prescribe conditions under 
section 3121 of this title. Notwithstanding section 3121(a)(5) 
of this title, the payment date of each series of notes issued 
shall be at least one year but not more than 10 years from the 
date of issue.
    (b) The Government may redeem any part of a series of notes 
before maturity by giving at least 4 months' notice but not 
more than one year's notice.
    (c) The holder of a note of one series issued under this 
section with the same issue date as another series of notes 
issued under this section may convert, at par value, a note of 
the holder for a note of the other series.

SEC. 3104. CERTIFICATES OF INDEBTEDNESS AND TREASURY BILLS.

    (a) The Secretary of the Treasury may borrow on the credit 
of the United States Government amounts necessary for 
expenditures authorized by law and may buy, redeem, and make 
refunds under section 3111 of this title. For amounts borrowed, 
the Secretary may issue--
          (1) certificates of indebtedness of the Government; 
        and
          (2) Treasury bills of the Government.
    (b) The Secretary may prescribe conditions for issuing 
certificates of indebtedness and Treasury bills under section 
3121 of this title and conditions under which the certificates 
and bills may be redeemed before maturity. Notwithstanding 
section 3121(a)(5) of this title, the payment date of 
certificates of indebtedness and Treasury bills may not be more 
than one year after the date of issue.
    (c) Treasury bills issued under this section may not be 
accepted before maturity to pay principal or interest on 
obligations of governments of foreign countries that are held 
by the United States Government.

SEC. 3105. SAVINGS BONDS AND SAVINGS CERTIFICATES.

    (a) With the approval of the President, the Secretary of 
the Treasury may issue savings bonds and savings certificates 
of the United States Government and may buy, redeem, and make 
refunds under section 3111 of this title. Proceeds from the 
bonds and certificates shall be used for expenditures 
authorized by law. Savings bonds and certificates may be issued 
on an interest-bearing basis, on a discount basis, or on an 
interest-bearing and discount basis. Savings bonds shall mature 
not more than 20 years from the date of issue. Savings 
certificates shall mature not more than 10 years from the date 
of issue. The difference between the price paid and the amount 
received on redeeming a savings bond or certificate is interest 
under the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.).
    (b)(1) The Secretary may--
          (A) fix the investment yield for savings bonds; and
          (B) change the investment yield on an outstanding 
        savings bond, except that the yield on a bond for the 
        period held may not be decreased below the minimum 
        yield for the period guaranteed on the date of issue.
    (2) The Secretary may prescribe regulations providing 
that--
          (A) owners of savings bonds may keep the bonds after 
        maturity or after a period beyond maturity during which 
        the bonds have earned interest and continue to earn 
        interest at rates consistent with paragraph (1) of this 
        subsection; and
          (B) savings bonds earning a different rate of 
        interest before the regulations are prescribed shall 
        earn a rate of interest consistent with paragraph (1).
    (c) The Secretary may prescribe for savings bonds and 
savings certificates issued under this section--
          (1) the form and amount of an issue and series;
          (2) the way in which they will be issued;
          (3) the conditions, including restrictions on 
        transfer, to which they will be subject;
          (4) conditions governing their redemption;
          (5) their sales price and denominations;
          (6) a way to evidence payments for or on account of 
        them and to provide for the exchange of savings 
        certificates for savings bonds; and
          (7) the maximum amount issued in a year that may be 
        held by one person.
    (d) The Secretary may authorize financial institutions to 
make payments to redeem savings bonds and savings notes. A 
financial institution may be a paying agent only if the 
institution--
          (1) is incorporated under the laws of the United 
        States, a State, the District of Columbia, or a 
        territory or possession of the United States;
          (2) in the usual course of business accepts, subject 
        to withdrawal, money for deposit or the purchase of 
        shares;
          (3) is under the supervision of a banking authority 
        of the jurisdiction in which it is incorporated;
          (4) has a regular office to do business; and
          (5) is qualified under regulations prescribed by the 
        Secretary in carrying out this subsection.
    (e)(1) The Secretary may prescribe a way in which a check 
issued to an individual (except a trust or estate) as a refund 
for taxes imposed under subtitle A of the Internal Revenue Code 
of 1954 (26 U.S.C. 1 et seq.) may become a series E savings 
bond. However, a check may become a bond only if the claim for 
a refund is filed by the last day prescribed by law for filing 
the return (determined without any extensions) for the taxable 
year for which the refund is made. The Secretary may prescribe 
the time and way in which the check becomes a bond.
    (2) A bond issued under this subsection is deemed to be a 
series E bond issued under this section, except that the bond 
shall bear an issue date of the first day of the first month 
beginning after the close of the taxable year for which the 
bond is issued. The Secretary also may provide that a bond 
issued to joint payees may be redeemed by either payee alone.

SEC. 3106. RETIREMENT AND SAVINGS BONDS.

    (a) With the approval of the President, the Secretary of 
the Treasury may issue retirement and savings bonds of the 
United States Government and may buy, redeem, and make refunds 
under section 3111 of this title. The proceeds from the bonds 
shall be used for expenditures authorized by law. Retirement 
and savings bonds may be issued only on a discount basis. The 
maturity period of the bonds shall be at least 10 years from 
the date of issue but not more than 30 years from the date of 
issue. The difference between the price paid and the amount 
received on redeeming a bond is interest under the Internal 
Revenue Code of 1954 (26 U.S.C. 1 et seq.).
    (b) With the approval of the President, the Secretary may 
allow owners of retirement and savings bonds to keep the bonds 
after maturity and continue to earn interest on them at rates 
that are consistent with the rate of investment yield provided 
by retirement and savings bonds.
    (c) Section 3105(c)(1)-(5) of this title applies to this 
section. Sections 3105(c)(6) and (d) and 3126 of this title 
apply to this section to the extent consistent with this 
section. The Secretary may prescribe the maximum amount of 
retirement and savings bonds issued under this section in a 
year that may be held by one person. However, the maximum 
amount shall be at least $3,000.

SEC. 3107. INCREASING INTEREST RATES AND INVESTMENT YIELDS ON 
                    RETIREMENT BONDS.

    With the approval of the President, the Secretary of the 
Treasury may increase by regulation the interest rate or 
investment yield on an offering of bonds issued under this 
chapter that are described in sections 405(b) and 409(a) of the 
Internal Revenue Code of 1954 (26 U.S.C. 405(b), 409(a)), as in 
effect before the enactment of the Tax Reform Act of 1984. The 
increased yield shall be for interest accrual periods specified 
in the regulations so that the interest rate or investment 
yield on the bonds for those periods is consistent with the 
interest rate or investment yield on a new offering of those 
bonds.

SEC. 3108. PROHIBITION AGAINST CIRCULATION PRIVILEGE.

    An obligation issued under sections 3102-3104(a)(1) and 
3105-3107 of this title may not bear the circulation privilege.

SEC. 3109. TAX AND LOSS BONDS.

    (a) The Secretary of the Treasury may issue tax and loss 
bonds of the United States Government and may buy, redeem, and 
make refunds under section 3111 of this title. The proceeds of 
the tax and loss bonds shall be used for expenditures 
authorized by law. Tax and loss bonds are nontransferrable 
except as provided by the Secretary, bear no interest, and 
shall be issued in amounts needed to allow persons to comply 
with section 832(e) of the Internal Revenue Code of 1954 (26 
U.S.C. 832(e)). The Secretary may prescribe the amount of tax 
and loss bonds and the conditions under which the bonds will be 
issued as required by section 832(e).
    (b) For a taxable year in which amounts are deducted from 
the mortgage guaranty account referred to in section 832(e)(3) 
of the Internal Revenue Code of 1954 (26 U.S.C. 832(e)(3)), an 
amount of tax and loss bonds bought under section 832(e)(2) of 
the Internal Revenue Code of 1954 (26 U.S.C. 832(e)(2)) shall 
be redeemed for the amount deducted from the account. The 
amount redeemed shall be applied as necessary to pay taxes due 
because of the inclusion under section 832(b)(1)(E) of the 
Internal Revenue Code of 1954 (26 U.S.C. 832(b)(1)(E)) of 
amounts in gross income. The Secretary also may prescribe 
additional ways to redeem the bonds.

SEC. 3110. SALE OF OBLIGATIONS OF GOVERNMENTS OF FOREIGN COUNTRIES.

    (a) With the approval of the President, the Secretary of 
the Treasury may sell obligations of the government of a 
foreign country when the obligations were acquired under--
          (1) the First Liberty Bond Act and matured before 
        June 16, 1947;
          (2) the Second Liberty Bond Act and matured before 
        October 16, 1938; or
          (3) section 7(a) of the Victory Liberty Loan Act.
    (b) The Secretary may prescribe the conditions and 
frequency for receiving payment under obligations of a 
government of a foreign country acquired under the laws 
referred to in subsection (a) of this section. A sale of an 
obligation acquired under those Acts shall at least equal the 
purchase price and accrued interest. The proceeds of 
obligations sold under this section and payments received from 
governments on the principal of their obligations shall be used 
to redeem or buy (for not more than par value and accrued 
interest) bonds of the United States Government issued under 
this chapter. If those bonds cannot be redeemed or bought, the 
Secretary shall redeem or buy other outstanding interest-
bearing obligations of the Government that are subject to 
redemption or which can be bought at not more than par value 
and accrued interest.

SEC. 3111. NEW ISSUE USED TO BUY, REDEEM, OR REFUND OUTSTANDING 
                    OBLIGATIONS.

    An obligation may be issued under this chapter to buy, 
redeem, or refund, at or before maturity, outstanding bonds, 
notes, certificates of indebtedness, Treasury bills, or savings 
certificates of the United States Government. Under regulations 
of the Secretary of the Treasury, money received from the sale 
of an obligation and other money in the general fund of the 
Treasury may be used in making the purchases, redemptions, or 
refunds.

SEC. 3112. SINKING FUND FOR RETIRING AND CANCELLING BONDS AND NOTES.

    (a) The Department of the Treasury has a sinking fund for 
retiring bonds and notes issued under this chapter. Amounts in 
the fund are appropriated for payment of bonds and notes at 
maturity or for their redemption or purchase before maturity by 
the Secretary of the Treasury. The fund is available until all 
the bonds and notes are retired.
    (b) For each fiscal year, an amount is appropriated equal 
to--
          (1) the interest that would have been payable during 
        the fiscal year for which the appropriation is made on 
        the bonds and notes bought, redeemed, or paid out of 
        the fund during that or prior years;
          (2) 2.5 percent of the total amount of bonds and 
        notes issued under the First Liberty Bond Act, the 
        Second Liberty Bond Act, the Third Liberty Bond Act, 
        the Fourth Liberty Bond Act, and the Victory Liberty 
        Loan Act and outstanding on July 1, 1920, less an 
        amount equal to the par amount of obligations of 
        governments of foreign countries that the United States 
        Government held on July 1, 1920; and
          (3) 2.5 percent of the total amount expended after 
        June 29, 1933, from appropriations made or authorized 
        in sections 301 and 302 of the Emergency Relief and 
        Construction Act of 1932.
    (c) The Secretary may prescribe the price and conditions 
for paying, redeeming, and buying bonds and notes under this 
section. The average cost of bonds and notes bought under this 
section may not be more than par value and accrued interest. 
Bonds and notes bought, redeemed, or paid out of the sinking 
fund must be canceled and retired and may not be reissued.

SEC. 3113. ACCEPTING GIFTS.

    (a) To provide the people of the United States with an 
opportunity to make gifts to the United States Government to be 
used to reduce the public debt--
          (1) the Secretary of the Treasury may accept for the 
        Government a gift of--
                  (A) money made only on the condition that it 
                be used to reduce the public debt;
                  (B) an obligation of the Government included 
                in the public debt made only on the condition 
                that the obligation be canceled and retired and 
                not reissued; and
                  (C) other intangible personal property made 
                only on the condition that the property is sold 
                and the proceeds from the sale used to reduce 
                the public debt; and
          (2) the Administrator of General Services may accept 
        for the Government a gift of tangible property made 
        only on the condition that it be sold and the proceeds 
        from the sale be used to reduce the public debt.
    (b) The Secretary and the Administrator each may reject a 
gift under this section when the rejection is in the interest 
of the Government.
    (c) The Secretary and the Administrator shall convert a 
gift either of them accepts under subsection (a)(1)(C) or (2) 
of this section to money on the best terms available. If a gift 
accepted under subsection (a) of this section is subject to a 
gift or inheritance tax, the Secretary or the Administrator may 
pay the tax out of the proceeds of the gift or the proceeds of 
the redemption or sale of the gift.
    (d) The Treasury has an account into which money received 
as gifts and proceeds from the sale or redemption of gifts 
under this section shall be deposited. The Secretary shall use 
the money in the account to pay at maturity, or to redeem or 
buy before maturity, an obligation of the Government included 
in the public debt. An obligation of the Government that is 
paid, redeemed, or bought with money from the account shall be 
canceled and retired and may not be reissued. Money deposited 
in the account is appropriated and may be expended to carry out 
this section.
    (e)(1) The Secretary shall redeem a direct obligation of 
the Government bearing interest or sold on a discount basis on 
receiving it when the obligation--
          (A) is given to the Government;
          (B) becomes the property of the Government under the 
        conditions of a trust; or
          (C) is payable on the death of the owner to the 
        Government (or to an officer of the Government in the 
        officer's official capacity).
    (2) If the gift or transfer to the Government is subject to 
a gift or inheritance tax, the Secretary shall pay the tax out 
of the proceeds of redemption.

                     Subchapter II--Administrative

SEC. 3121. PROCEDURE.

    (a) In issuing obligations under sections 3102-3104 of this 
title, the Secretary of the Treasury may prescribe--
          (1) whether an obligation is to be issued on an 
        interest-bearing basis, a discount basis, or an 
        interest-bearing and discount basis;
          (2) regulations on the conditions under which the 
        obligation will be offered for sale, including whether 
        it will be offered for sale on a competitive or other 
        basis;
          (3) the offering price and interest rate;
          (4) the method of computing the interest rate;
          (5) the dates for paying principal and interest;
          (6) the form and denominations of the obligations; 
        and
          (7) other conditions.
    (b)(1) Under conditions prescribed by the Secretary, an 
obligation issued under this chapter and redeemable on demand 
of the owner or holder may be used to pay the United States 
Government for taxes imposed by it.
    (2) An obligation of the Government issued after March 3, 
1971, under law may not be redeemed before its maturity to pay 
a tax imposed by the Government in an amount more than the fair 
market value of the obligation at the time of its redemption. 
This paragraph does not apply to a Treasury bill issued under 
section 3104 of this title.
    (c) Under conditions prescribed by the Secretary, an 
obligation authorized by this chapter may be issued in exchange 
for an obligation of an agency whose principal and interest are 
unconditionally guaranteed by the Government at or before 
maturity.
    (d) Under conditions prescribed by the Secretary, the 
Secretary may issue registered bonds in exchange for and 
instead of coupon bonds that have been or may be issued. The 
registered bonds shall be similar in all respects to the 
registered bonds issued under a law authorizing the issue of 
coupon bonds offered for exchange.
    (e) A decision of the Secretary about an issue of 
obligations under sections 3102-3104 of this title is final.
    (f) The Secretary may accept voluntary services in carrying 
out the sale of public debt obligations.
    (g)(1) In this subsection, ``registration-required 
obligation'' means an obligation except an obligation--
          (A) not of a type offered to the public;
          (B) having a maturity (at issue) of not more than one 
        year; or
          (C) described in paragraph (2) of this subsection.
    (2) An obligation is not a registration-required obligation 
if--
          (A) there are arrangements reasonably designed to 
        ensure that the obligation will be sold (or resold in 
        connection with the original issue) only to a person 
        that is not a United States person; and
          (B) for an obligation not in registered form--
                  (i) interest on the obligation is payable 
                only outside the United States and its 
                territories and possessions; and
                  (ii) a statement is on the face of the 
                obligation that a United States person holding 
                the obligation is subject to limitations under 
                the United States income tax laws.
    (3) Every registration-required obligation of the 
Government shall be in registered form. A book entry obligation 
is deemed to be in registered form if the right to principal 
and stated interest on the obligation may be transferred only 
through a book entry consistent with regulations of the 
Secretary.
    (4) The Secretary shall prescribe regulations necessary to 
carry out this subsection when there is a nominee.
    (h)(1) The Secretary shall prescribe by regulation 
standards for the safeguarding and use of obligations issued 
under this chapter, and obligations otherwise issued or 
guaranteed as to principal or interest by the United States. 
Such regulations shall apply only to a depository institution 
that is not a government securities broker or a government 
securities dealer and that holds such obligations as fiduciary, 
custodian, or otherwise for the account of a customer and not 
for its own account. Such regulations shall provide for the 
adequate segregation of obligations so held, including 
obligations which are purchased or sold subject to resale or 
repurchase.
    (2) Violation of a regulation prescribed under paragraph 
(1) shall constitute adequate basis for the issuance of an 
order under section 5239(a) or (b) of the Revised Statutes (12 
U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal 
Deposit Insurance Act, section 5(d)(2) or 5(d)(3) of the Home 
Owners' Loan Act of 1933, section 407(e) or 407(f) of the 
National Housing Act, or section 206(e) or 206(f) of the 
Federal Credit Union Act. Such an order may be issued with 
respect to a depository institution by its appropriate 
regulatory agency and with respect to a federally insured 
credit union by the National Credit Union Administration Board.
    (3) Nothing in this subsection shall be construed to affect 
in any way the powers of such agencies under any other 
provision of law.
    (4) The Secretary shall, prior to adopting regulations 
under this subsection, determine with respect to each 
appropriate regulatory agency and the National Credit Union 
Administration Board, whether its rules and standards 
adequately meet the purposes of regulations to be promulgated 
under this subsection, and if the Secretary so determines, 
shall exempt any depository institution subject to such rules 
or standards from the regulations promulgated under this 
subsection.
    (5) As used in this subsection--
          (A) ``depository institution'' has the meaning stated 
        in clauses (i) through (vi) of section 19(b)(1)(A) of 
        the Federal Reserve Act and also includes a foreign 
        bank, an agency or branch of a foreign bank, and a 
        commercial lending company owned or controlled by a 
        foreign bank (as such terms are defined in the 
        International Banking Act of 1978).
          (B) ``government securities broker'' has the meaning 
        prescribed in section 3(a)(43) of the Securities 
        Exchange Act of 1934.
          (C) ``government securities dealer'' has the meaning 
        prescribed in section 3(a)(44) of the Securities 
        Exchange Act of 1934.
          (D) ``appropriate regulatory agency'' has the meaning 
        prescribed in section 3(a)(34)(G) of the Securities 
        Exchange Act of 1934.

SEC. 3122. BANKS AND TRUST COMPANIES AS DEPOSITARIES.

    (a) The Secretary of the Treasury may designate 
incorporated banks and trust companies as depositaries for any 
part of proceeds of an obligation issued under this chapter. 
The Secretary may prescribe the conditions under which deposits 
may be made under this section, including the interest rate on 
amounts deposited and security requirements.
    (b) The Secretary may designate a bank or trust company 
that is a depositary under subsection (a) of this section as a 
fiscal agent of the United States Government in selling and 
delivering bonds and certificates of indebtedness issued by the 
Government.

SEC. 3123. PAYMENT OF OBLIGATIONS AND INTEREST ON THE PUBLIC DEBT.

    (a) The faith of the United States Government is pledged to 
pay, in legal tender, principal and interest on the obligations 
of the Government issued under this chapter.
    (b) The Secretary of the Treasury shall pay interest due or 
accrued on the public debt. As the Secretary considers 
expedient, the Secretary may pay in advance interest on the 
public debt by a period of not more than one year, with or 
without a rebate of interest on the coupons.
    (c)(1) The Secretary may issue a bond, note, or certificate 
of indebtedness authorized under this chapter whose principal 
and interest are payable in a foreign currency stated in the 
bond, note, or certificate. The Secretary may dispose of the 
bonds, notes, and certificates at a price that is at least par 
value without complying with section 3102(b)-(d) of this title.
    (2) In determining the dollar amount of bonds, notes, and 
certificates of indebtedness that may be issued under this 
chapter, the dollar equivalent of the amount of bonds, notes, 
and certificates payable in a foreign currency is determined by 
the par of the exchange value on the date of issue of the 
bonds, notes, or certificates as published by the Secretary 
under section 5151 of this title.
    (3) The Secretary may designate depositaries in foreign 
countries in which any part of the proceeds of bonds, notes, or 
certificates of indebtedness payable in the foreign currency 
may be deposited.

SEC. 3124. EXEMPTION FROM TAXATION.

    (a) Stocks and obligations of the United States Government 
are exempt from taxation by a State or political subdivision of 
a State. The exemption applies to each form of taxation that 
would require the obligation, the interest on the obligation, 
or both, to be considered in computing a tax, except--
          (1) a nondiscriminatory franchise tax or another 
        nonproperty tax instead of a franchise tax, imposed on 
        a corporation; and
          (2) an estate or inheritance tax.
    (b) The tax status of interest on obligations and 
dividends, earnings, or other income from evidences of 
ownership issued by the Government or an agency and the tax 
treatment of gain and loss from the disposition of those 
obligations and evidences of ownership is decided under the 
Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.). An 
obligation that the Federal Housing Administration had agreed, 
under a contract made before March 1, 1941, to issue at a 
future date, has the tax exemption privileges provided by the 
authorizing law at the time of the contract. This subsection 
does not apply to obligations and evidences of ownership issued 
by the District of Columbia, a territory or possession of the 
United States, or a department, agency, instrumentality, or 
political subdivision of the District, territory, or 
possession.

SEC. 3125. RELIEF FOR LOST, STOLEN, DESTROYED, MUTILATED, OR DEFACED 
                    OBLIGATIONS.

    (a) In this section, ``obligation'' means a direct 
obligation of the United States Government issued under law for 
valuable consideration, including bonds, notes, certificates of 
indebtedness, Treasury bills, and interim certificates issued 
for an obligation.
    (b) The Secretary of the Treasury may provide relief for 
the loss, theft, destruction, mutilation, or defacement of an 
obligation identified by number and description.
    (c)(1) An indemnity bond is required as a condition of 
relief if the obligation is payable to bearer or assigned so as 
to become payable to bearer and is not proven clearly to have 
been destroyed. The Secretary may prescribe for the indemnity 
bond the form, amount, and surety or security requirements.
    (2) Relief for interest coupons claimed to have been 
attached to an obligation may be provided only if the Secretary 
is satisfied that the coupons have not been paid and are 
destroyed or will not become the basis of a valid claim against 
the Government.

SEC. 3126. LOSSES AND RELIEF FROM LIABILITY RELATED TO REDEEMING 
                    SAVINGS BONDS AND NOTES.

    (a) Under regulations prescribed by the Secretary of the 
Treasury, a loss resulting from a payment related to redeeming 
a savings bond or savings note shall be replaced out of the 
fund established by section 2 of the Government Losses in 
Shipment Act (40 U.S.C. 722). A Federal reserve bank, a paying 
agent allowed to make payments in redeeming a bond or note, or 
an officer or employee of the Department of the Treasury is 
relieved from liability to the United States Government for the 
loss when the Secretary decides that the loss did not result 
from the fault or negligence of the bank, paying agent, 
officer, or employee. The Secretary shall relieve the bank, 
agent, officer, or employee from liability when the Secretary 
decides that written notice of liability or potential liability 
has not been given to the bank, agent, officer, or employee by 
the Government within 10 years from the date of the erroneous 
payment. However, the Secretary may not relieve a paying agent 
of an assumed unconditional liability to the Government.
    (b) Section 3 of the Government Losses in Shipment Act (40 
U.S.C. 723) (related to finality of decisions of the Secretary) 
applies to a decision of the Secretary made under this section. 
A recovery or repayment of a loss for which replacement is made 
out of the fund shall be credited to the fund and is available 
for the purposes for which the fund was established.

SEC. 3127. CREDIT TO OFFICERS, EMPLOYEES, AND AGENTS FOR STOLEN 
                    TREASURY NOTES.

    When an officer, employee, or agent of the United States 
Government authorized to receive, redeem, or cancel Treasury 
notes receives or pays a note that was stolen and put in 
circulation after it had been received or redeemed by an 
officer, employee, or agent authorized to receive or redeem the 
note, the Secretary of the Treasury may allow the officer, 
employee, or agent receiving or paying the stolen note a credit 
for the amount of the note. The Secretary may allow the credit 
only if the Secretary is satisfied that the note was received 
or paid in good faith and in exercising ordinary prudence.

SEC. 3128. PROOF OF DEATH TO SUPPORT PAYMENT.

    A finding of death made by an officer or employee of the 
United States Government authorized by law to make the finding 
is sufficient proof of death to allow credit in the accounts of 
a Federal reserve bank or accountable official of the 
Department of the Treasury in a case involving the transfer, 
exchange, reissue, redemption, or payment of obligations of the 
Government, including obligations guaranteed by the Government 
for which the Secretary of the Treasury acts as transfer agent.

SEC. 3129. APPROPRIATION TO PAY EXPENSES.

    (a) Amounts to pay necessary expenses (including rent) for 
an issue of obligations authorized under this chapter are 
appropriated to the Secretary of the Treasury. However, the 
amount appropriated under this section may not be more than--
          (1) .2 percent of the amount of bonds and notes 
        authorized under this chapter;
          (2) .1 percent of the amount of certificates of 
        indebtedness authorized under section 3104 of this 
        title; and
          (3) .1 percent of the amount of certificates of 
        indebtedness authorized under the First Liberty Bond 
        Act.
    (b) An appropriation under this section is available for 
obligation only through the end of the fiscal year after the 
fiscal year in which the issue was made. During a period for 
which an appropriation for a specified amount is made for 
expenses for which this section makes an appropriation for an 
unspecified amount, only the appropriation for the specified 
amount is available for obligation.

SEC. 3130. ANNUAL PUBLIC DEBT REPORT.

    (a) General Rule.--On or before June 1 of each calendar 
year after 1993, the Secretary of the Treasury shall submit a 
report to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate on--
          (1) the Treasury's public debt activities, and
          (2) the operations of the Federal Financing Bank.
    (b) Required Information on Public Debt Activities.--Each 
report submitted under subsection (a) shall include the 
following information:
          (1) A table showing the following information with 
        respect to the total public debt:
                  (A) The past levels of such debt and the 
                projected levels of such debt as of the close 
                of the current fiscal year and as of the close 
                of the next 5 fiscal years under the most 
                recent current services baseline projection of 
                the executive branch.
                  (B) The past debt to GDP ratios and the 
                projected debt to GDP ratios as of the close of 
                the current fiscal year and as of the close of 
                the next 5 fiscal years under such most recent 
                current services baseline projection.
          (2) A table showing the following information with 
        respect to the net public debt:
                  (A) The past levels of such debt and the 
                projected levels of such debt as of the close 
                of the current fiscal year and as of the close 
                of the next 5 fiscal years under the most 
                recent current services baseline projection of 
                the executive branch.
                  (B) The past debt to GDP ratios and the 
                projected debt to GDP ratios as of the close of 
                the current fiscal year and as of the close of 
                the next 5 fiscal years under such most recent 
                current services baseline projection.
                  (C) The interest cost on such debt for prior 
                fiscal years and the projected interest cost on 
                such debt for the current fiscal year and for 
                the next 5 fiscal years under such most recent 
                current services baseline projection.
                  (D) The interest cost to outlay ratios for 
                prior fiscal years and the projected interest 
                cost to outlay ratios for the current fiscal 
                year and for the next 5 fiscal years under such 
                most recent current services baseline 
                projection.
          (3) A table showing the maturity distribution of the 
        net public debt as of the time the report is submitted 
        and for prior years, and an explanation of the overall 
        financing strategy used in determining the distribution 
        of maturities when issuing public debt obligations, 
        including a discussion of the projections and 
        assumptions with respect to the structure of interest 
        rates for the current fiscal year and for the 
        succeeding 5 fiscal years.
          (4) A table showing the following information as of 
        the time the report is submitted and for prior years:
                  (A) A description of the various categories 
                of the holders of public debt obligations.
                  (B) The portions of the total public debt 
                held by each of such categories.
          (5) A table showing the relationship of federally 
        assisted borrowing to total Federal borrowing as of the 
        time the report is submitted and for prior years.
          (6) A table showing the annual principal and interest 
        payments which would be required to amortize in equal 
        annual payments the level (as of the time the report is 
        submitted) of the net public debt over the longest 
        remaining term to maturity of any obligation which is a 
        part of such debt.
    (c) Required Information on Federal Financing Bank.--Each 
report submitted under subsection (a) shall include (but not be 
limited to) information on the financial operations of the 
Federal Financing Bank, including loan payments and 
prepayments, and on the levels and categories of the lending 
activities of the Federal Financing Bank, for the current 
fiscal year and for prior fiscal years.
    (d) Recommendations.--The Secretary of the Treasury may 
include in any report submitted under subsection (a) such 
recommendations to improve the issuance and sale of public debt 
obligations (and with respect to other matters) as he may deem 
advisable.
    (e) Definitions.--For purposes of this section--
          (1) Current fiscal year.--The term ``current fiscal 
        year'' means the fiscal year ending in the calendar 
        year in which the report is submitted.
          (2) Total public debt.--The term ``total public 
        debt'' means the total amount of the obligations 
        subject to the public debt limit established in section 
        3101 of this title.
          (3) Net public debt.--The term ``net public debt'' 
        means the portion of the total public debt which is 
        held by the public.
          (4) Debt to gdp ratio.--The term ``debt to GDP 
        ratio'' means the percentage obtained by dividing the 
        level of the total public debt or net public debt, as 
        the case may be, by the gross domestic product.
          (5) Interest cost to outlay ratio.--The term 
        ``interest cost to outlay ratio'' means, with respect 
        to any fiscal year, the percentage obtained by dividing 
        the interest cost for such fiscal year on the net 
        public debt by the total amount of Federal outlays for 
        such fiscal year.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
3101 et seq...............................  31 C.F.R. 344, 355, 358     
3101-3129.................................  31 C.F.R. 306, 357          
3102 et seq...............................  31 C.F.R. 344, 356          
3102-3104.................................  31 C.F.R. 306               
3103......................................  31 C.F.R. 342               
3105......................................  31 C.F.R. 315-317, 321, 330,
                                             332, 352, 353              
3107-3108.................................  31 C.F.R. 306               
3111......................................  31 C.F.R. 306               
3121-3123.................................  31 C.F.R. 306               
3121......................................  17 C.F.R. 450; 31 C.F.R. 353
3122......................................  31 C.F.R. 203, 214          
3125......................................  31 C.F.R. 306               
3126......................................  31 C.F.R. 321               
3129......................................  31 C.F.R. 306               
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                   Subtitle III--Financial Management

          * * * * * * *

           CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY

                Subchapter I--Deposits and Depositories

SEC. 3301. GENERAL DUTIES OF THE SECRETARY OF THE TREASURY.

    (a) The Secretary of the Treasury shall--
          (1) receive and keep public money;
          (2) take receipts for money paid out by the 
        Secretary;
          (3) give receipts for money deposited in the 
        Treasury;
          (4) endorse warrants for receipts for money deposited 
        in the Treasury;
          (5) submit the accounts of the Secretary to the 
        Comptroller General every 3 months, or more often if 
        required by the Comptroller General; and
          (6) submit to inspection at any time by the 
        Comptroller General of money in the possession of the 
        Secretary.
    (b) Except as provided in section 3326 of this title, an 
acknowledgment for money deposited in the Treasury is not valid 
if the Secretary does not endorse a warrant as required by 
subsection (a)(4) of this section.

SEC. 3302. CUSTODIANS OF MONEY.

    (a) Except as provided by another law, an official or agent 
of the United States Government having custody or possession of 
public money shall keep the money safe without--
          (1) lending the money;
          (2) using the money;
          (3) depositing the money in a bank; and
          (4) exchanging the money for other amounts.
    (b) Except as provided in section 3718(b) of this title, an 
official or agent of the Government receiving money for the 
Government from any source shall deposit the money in the 
Treasury as soon as practicable without deduction for any 
charge or claim.
    (c)(1) A person having custody or possession of public 
money, including a disbursing official having public money not 
for current expenditure, shall deposit the money without delay 
in the Treasury or with a depositary designated by the 
Secretary of the Treasury under law. Except as provided in 
paragraph (2), money required to be deposited pursuant to this 
subsection shall be deposited not later than the third day 
after the custodian receives the money. The Secretary or a 
depositary receiving a deposit shall issue duplicate receipts 
for the money deposited. The original receipt is for the 
Secretary and the duplicate is for the custodian.
    (2) The Secretary of the Treasury may by regulation 
prescribe that a person having custody or possession of money 
required by this subsection to be deposited shall deposit such 
money during a period of time that is greater or lesser than 
the period of time specified by the second sentence of 
paragraph (1).
    (d) An official or agent not complying with subsection (b) 
of this section may be removed from office. The official or 
agent may be required to forfeit to the Government any part of 
the money held by the official or agent and to which the 
official or agent may be entitled.
    (e) An official or agent of the Government having custody 
or possession of public money shall keep an accurate entry of 
each amount of public money received, transferred, and paid.
    (f) When authorized by the Secretary, an official or agent 
of the Government having custody or possession of public money, 
or performing other fiscal agent services, may be allowed 
necessary expenses to collect, keep, transfer, and pay out 
public money and to perform those services. However, money 
appropriated for those expenses may not be used to employ or 
pay officers and employees of the Government.

SEC. 3303. DESIGNATION OF DEPOSITARIES.

    (a) The Secretary of the Treasury designates depositaries 
of money as provided in this section and under other law.
    (b) When necessary to carry out the business of the United 
States Government and under conditions the Secretary decides 
are necessary, the Secretary may designate depositaries in 
foreign countries and in territories and possessions of the 
United States to receive deposits of public money. The 
Secretary shall give preference to United States financial 
institutions the Secretary decides are safe and able to give 
the service required.

SEC. 3304. TRANSFERS OF PUBLIC MONEY FROM DEPOSITARIES.

    The Secretary of the Treasury may transfer public money in 
the possession of a depositary--
          (1) to the Treasury; and
          (2) if the Secretary believes the safety of the 
        public money and convenience require it, to another 
        depositary.

SEC. 3305. AUDITS OF DEPOSITARIES.

    The Secretary of the Treasury, or an officer, employee, or 
agent designated by the Secretary, may audit a depositary of 
public money. For uniformity and accuracy in accounts and 
safety of public money, an individual conducting an audit shall 
audit a depositary's--
          (1) books;
          (2) accounts;
          (3) returns; and
          (4) public money on hand and the way the money is 
        kept.

                        Subchapter II--Payments

SEC. 3321. DISBURSING AUTHORITY IN THE EXECUTIVE BRANCH.

    (a) Except as provided in this section or another law, only 
officers and employees of the Department of the Treasury 
designated by the Secretary of the Treasury as disbursing 
officials may disburse public money available for expenditure 
by an executive agency.
    (b) For economy and efficiency, the Secretary may delegate 
the authority to disburse public money to officers and 
employees of other executive agencies.
    (c) The head of each of the following executive agencies 
shall designate personnel of the agency as disbursing officials 
to disburse public money available for expenditure by the 
agency:
          (1) United States Marshal's Office.
          (2) The Department of Defense (except for 
        disbursements for departmental pay and expenses in the 
        District of Columbia).
    (d) On request of the Secretary and with the approval of 
the head of an executive agency referred to in subsection (c) 
of this section, facilities of the agency may be used to assist 
in disbursing public money available for expenditure by another 
executive agency.

SEC. 3322. DISBURSING OFFICIALS.

    (a) The Secretary of the Treasury shall transfer public 
money to a disbursing official only by draft or warrant written 
on the Treasury. Except as provided in subsection (b) of this 
section, a disbursing official shall--
          (1) deposit public money as required by section 3302 
        of this title; and
          (2) draw public money from the Treasury or a 
        depositary only--
                  (A) as necessary to make payments; and
                  (B) payable to persons to whom payment is to 
                be made.
    (b) In a place without a depositary, the Secretary, on 
deciding it is essential to the public interest, may authorize 
specially in writing that public money be--
          (1) deposited in any other public depositary; or
          (2) kept in another manner under regulations the 
        Secretary decides are the safest and most effective in 
        making a payment to a public creditor easier.
    (c) A disbursing official is not liable for an overpayment 
provided under a United States Government bill of lading or 
transportation request when the overpayment is caused by the--
          (1) use of improper transportation rates or 
        classifications; or
          (2) failure to deduct the proper amount under--
                  (A) a land grant law; or
                  (B) an equalization or other agreement.

SEC. 3323. WARRANTS.

    (a) Except as provided in section 3326 of this title, the 
Secretary of the Treasury may pay out money only against a 
warrant. A warrant shall be--
          (1) authorized by law;
          (2) signed by the Secretary; and
          (3) countersigned by the Comptroller General.
    (b)(1) A disbursing official shall send to the Secretary 
with a warrant a certificate under section 3526 of this title, 
or a requisition for an advance. The certificate or requisition 
shall state the appropriation to which the payment is to be 
charged.
    (2) The Secretary shall return the certificate or 
requisition to the Comptroller General with the date and amount 
endorsed on the certificate or requisition.
    (c) A requisition for the payment of money on an audited 
account or for depositing money in the Treasury is not 
required.
    (d) The Secretary and the Comptroller General shall charge 
to the appropriate appropriation in their books any money paid 
by a warrant.

SEC. 3324. ADVANCES.

    (a) Except as provided in this section, a payment under a 
contract to provide a service or deliver an article for the 
United States Government may not be more than the value of the 
service already provided or the article already delivered.
    (b) An advance of public money may be made only if it is 
authorized by--
          (1) a specific appropriation or other law; or
          (2) the President to be made to--
                  (A) a disbursing official if the President 
                decides the advance is necessary to carry out--
                          (i) the duties of the official 
                        promptly and faithfully; and
                          (ii) an obligation of the Government; 
                        or
                  (B) an individual serving in the armed forces 
                at a distant station if the President decides 
                the advance is necessary to disburse regularly 
                pay and allowances.
    (c) Before the Secretary of the Treasury acts on a 
requisition for an advance, the Comptroller General shall act 
on the requisition under section 3522 of this title. The 
Comptroller General does not countersign a requisition for an 
advance.
    (d) The head of an agency may pay in advance from 
appropriations available for the purpose--
          (1) to the Secretary of the Army, charges for 
        messages sent by the Secretary of the Army for the head 
        of the agency, including charges for--
                  (A) payment of tolls of commercial carriers;
                  (B) leasing facilities for sending messages; 
                and
                  (C) installing and maintaining facilities for 
                sending messages; and
          (2) charges for a publication printed or recorded in 
        any way for the auditory or visual use of the agency.

SEC. 3325. VOUCHERS.

    (a) A disbursing official in the executive branch of the 
United States Government shall--
          (1) disburse money only as provided by a voucher 
        certified by--
                  (A) the head of the executive agency 
                concerned; or
                  (B) an officer or employee of the executive 
                agency having written authorization from the 
                head of the agency to certify vouchers;
          (2) examine a voucher if necessary to decide if it 
        is--
                  (A) in proper form;
                  (B) certified and approved; and
                  (C) computed correctly on the facts 
                certified; and
          (3) except for the correctness of computations on a 
        voucher, be held accountable for carrying out clauses 
        (1) and (2) of this subsection.
    (b) Subsection (a) of this section does not apply to 
disbursements of a military department of the Department of 
Defense, except for disbursements for departmental pay and 
expenses in the District of Columbia.
    (c) On request, the Secretary of the Treasury may provide 
to the appropriate officer or employee of the United States 
Government a list of persons receiving periodic payments from 
the Government. When certified and in proper form, the list may 
be used as a voucher on which the Secretary may disburse money.

SEC. 3326. WAIVER OF REQUIREMENTS FOR WARRANTS AND ADVANCES.

    (a) When the Secretary of the Treasury and the Comptroller 
General decide that, with sufficient safeguards, existing 
procedures may be changed to simplify, improve, and economize 
the control and accounting of public money, they may prescribe 
joint regulations for waiving any part of the requirements in 
effect on September 12, 1950, that--
          (1) warrants be issued and countersigned for the 
        receipt, retention, and disbursement of public money 
        and trust funds; and
          (2) amounts be requisitioned and advanced to 
        accountable officials.
    (b) Regulations of the Secretary and the Comptroller 
General may provide for the payment of vouchers by authorized 
disbursing officials by checks drawn on the general fund of the 
Treasury. However, the regulations shall provide for 
appropriate action (including suspension or withdrawal of 
authority to make payments) against a delinquent disbursing 
official for any reason related to the official's accounts.

SEC. 3327. GENERAL AUTHORITY TO ISSUE CHECKS AND OTHER DRAFTS.

    The Secretary of the Treasury may issue a check or other 
draft on public money in the Treasury to pay an obligation of 
the United States Government. When the Secretary decides it is 
convenient to a public creditor and in the public interest, the 
Secretary may designate a depositary to issue a check or other 
draft on public money held by the depositary to pay an 
obligation of the Government. As directed by the Secretary, 
each depositary shall report to the Secretary on public money 
paid and received by the depositary.

SEC. 3328. PAYING CHECKS AND DRAFTS.

    (a) Time Limit on Treasury Checks.--
          (1) In general.--Except as provided in sections 3329 
        and 3330 of this title--
                  (A) the Secretary shall not be required to 
                pay a Treasury check issued on or after the 
                effective date of this section unless it is 
                negotiated to a financial institution within 12 
                months after the date on which the check was 
                issued; and
                  (B) the Secretary shall not be required to 
                pay a Treasury check issued before the 
                effective date of this section unless it is 
                negotiated to a financial institution within 12 
                months after such effective date.
          (2) Deferral pending settlement.--Notwithstanding the 
        time limitations imposed by paragraph (1), if the 
        Secretary is on notice of a question of law or fact 
        about whether a Treasury check is properly payable when 
        the check is presented for payment, the Secretary may 
        defer payment on such check until the Comptroller 
        General settles the question.
          (3) Nothing in this subsection shall be construed to 
        affect the underlying obligation of the United States, 
        or any agency thereof, for which a Treasury check was 
        issued.
    (b)(1) If a check issued by a disbursing official and drawn 
on a designated depositary is not paid by the last day of the 
fiscal year after the fiscal year in which the check was 
issued, the amount of the check is--
          (A) withdrawn from the account with the depositary; 
        and
          (B) deposited in the Treasury for credit to a 
        consolidated account of the Treasury.
    (2) A claim for the proceeds of an unpaid check under this 
subsection may be paid from a consolidated account by a check 
drawn on the Treasury on settlement by the Comptroller General.
    (c) A limitation imposed on a claim against the United 
States Government under section 3702 of this title does not 
apply to an unpaid check drawn on the Treasury or a designated 
depositary.
    (d) With the approval of the Comptroller General, the 
Secretary may prescribe regulations the Secretary decides are 
necessary to carry out subsections (a)-(c) of this section.
    (e)(1) The Secretary shall prescribe regulations on--
          (A) enforcing the speedy presentation of Government 
        drafts;
          (B) paying drafts, including the place of payment; 
        and
          (C) paying drafts if presentment is not made as 
        required.
    (2) Regulations prescribed under paragraph (1) of this 
subsection shall prevent, as far as may be practicable, 
Government drafts from being used or placed in circulation as 
paper currency or a medium of exchange.
    (f) Authority To Decline Payment.--Nothing in this section 
limits the authority of the Secretary to decline payment of a 
Treasury check after first examination thereof at the Treasury.

SEC. 3329. WITHHOLDING CHECKS TO BE SENT TO FOREIGN COUNTRIES.

    (a) The Secretary of the Treasury shall prohibit a check or 
warrant drawn on public money from being sent to a foreign 
country from the United States or from a territory or 
possession of the United States when the Secretary decides that 
postal, transportation, or banking facilities generally, or 
local conditions in the foreign country, do not reasonably 
ensure that the payee--
          (1) will receive the check or warrant; and
          (2) will be able to negotiate it for full value.
    (b)(1) If a check or warrant is prohibited from being sent 
to a foreign country under subsection (a) of this section, the 
drawer shall hold the check or warrant until the end of the 
calendar quarter after the date of the check or warrant.
    (2) The Secretary may release the check or warrant for 
delivery during the calendar quarter after the date of the 
check or warrant if the Secretary decides that conditions have 
changed to ensure reasonably that the payee--
          (A) will receive the check or warrant; and
          (B) will be able to negotiate it for full value.
    (3) Unless the Secretary otherwise directs, the drawer 
shall send at the end of the calendar quarter after the date of 
the check or warrant the--
          (A) withheld check or warrant to the drawee; and
          (B) report to the Secretary on--
                  (i) the name and address of the payee;
                  (ii) the date, number, and amount of the 
                check or warrant; and
                  (iii) the account on which the check or 
                warrant was drawn.
    (4) The drawee shall transfer the amount of a withheld 
check or warrant from the account of the drawer to the special 
deposit account ``Secretary of the Treasury, Proceeds of 
Withheld Foreign Checks''. The check or warrant shall be marked 
``Paid into Withheld Foreign Check Account''. After that time, 
the drawee shall send all withheld checks and warrants to the 
Comptroller General. The Comptroller General shall credit the 
accounts of the drawer and drawee.
    (c) The Secretary may pay an amount deposited in the 
special account under subsection (b)(4) of this section with a 
check drawn on the account when--
          (1) a person claiming payment satisfies the Secretary 
        of the right to the amount of the check or warrant (or 
        satisfies the Secretary of Veterans Affairs if the 
        claim represents a payment under laws administered by 
        the Secretary of Veterans Affairs); and
          (2) the Secretary is reasonably ensured that the 
        person--
                  (A) will receive the check or warrant; and
                  (B) will be able to negotiate it for full 
                value.
    (d) This section and section 3330 of this title--
          (1) apply to a check or warrant whose delivery may be 
        withheld under Executive Order 8389;
          (2) do not affect a requirement for a license for 
        delivering and paying a check in payment of a claim 
        under subsection (c) of this section when a license is 
        required by law to authorize delivery and payment; and
          (3) do not affect a check or warrant issued for the 
        payment of pay or goods bought by the United States 
        Government in a foreign country.

SEC. 3330. PAYMENT OF DEPARTMENT OF VETERANS AFFAIRS CHECKS FOR THE 
                    BENEFIT OF INDIVIDUALS IN FOREIGN COUNTRIES.

    (a)(1) A check is deemed to be issued for sending to a 
foreign country and subject to this section and section 3329 of 
this title if the check is--
          (A) drawn on public money;
          (B) for benefits under laws carried out by the 
        Secretary of Veterans Affairs; and
          (C) to be sent to a person in the United States or a 
        territory or possession of the United States, and the 
        person is legally responsible for the care of an 
        individual in a foreign country.
    (2) The Secretary of Veterans Affairs shall notify the 
Secretary of the Treasury of each check described under 
paragraph (1) of this subsection.
    (3) The Secretary of Veterans Affairs may exempt a check 
from paragraph (1) of this subsection if the application of 
paragraph (1) would reduce, discontinue, or deny benefits for 
the care of a dependent of an individual in a foreign country.
    (b) When the amount of checks (representing payments to an 
individual under laws administered by the Secretary of Veterans 
Affairs) transferred under section 3329(b)(4) of this title 
equals $1,000, the amounts of additional checks (except checks 
under contracts of insurance) payable to the individual under 
those laws shall be deposited in the Treasury as miscellaneous 
receipts. An amount transferred under section 3329(b)(4) or 
deposited as miscellaneous receipts is deemed to be payment for 
all purposes to the individual entitled to payment.
    (c) If the payee of a check for pension, compensation, or 
emergency officers' retirement pay under laws administered by 
the Secretary of Veterans Affairs dies while the amount of the 
check is in the special deposit account, the amount is payable 
(subject to section 3329 of this title and this section) as 
follows:
          (1) after the death of the veteran, to the surviving 
        spouse, or, if there is no surviving spouse, to 
        children of the veteran under 18 years of age at the 
        time of the veteran's death.
          (2) after the death of the surviving spouse, to 
        children of the spouse under 18 years of age at the 
        time of the spouse's death.
          (3) after the death of an apportionee of a part of 
        the veteran's pension, compensation, or emergency 
        officers' retirement pay but before all of the 
        apportioned amount is paid to the veteran, the 
        apportioned amount not paid.
          (4) in any other case, only to the extent necessary 
        to reimburse a person for burial expenses.
    (d)(1) A payment may be made under subsection (c) of this 
section only if a claim for payment is--
          (A) filed with the Secretary of Veterans Affairs by 
        the end of the first year after the date of the death 
        of the individual entitled to payment; and
          (B) completed by submitting the necessary evidence by 
        the 6th month after the date the Secretary of Veterans 
        Affairs requests the evidence.
    (2) Payment shall include only amounts due at the time of 
death under ratings or decisions existing at the time of the 
death.

SEC. 3331. SUBSTITUTE CHECKS.

    (a) In this section, ``original check''--
          (1) means an order for the payment of money--
                  (A) payable on demand;
                  (B) that does not bear interest;
                  (C) drawn by an authorized disbursing 
                official or agent of the United States 
                Government; and
                  (D) the amount of which is deposited with the 
                Treasury or another account available for 
                payment; and
          (2) does not include coins and currency of the 
        Government.
    (b) When the Secretary of the Treasury is satisfied that an 
original check is lost, stolen, destroyed in any part, or is so 
defaced that the value to the owner or holder is impaired, the 
Secretary may issue a substitute check to the owner or holder 
of the original check. Except as provided in subsection (c) of 
this section, the substitute check is payable from the amount 
available to pay the original check.
    (c) When the Secretary is satisfied that an original check 
drawn on a depositary in a foreign country or a territory or 
possession of the United States is lost, stolen, destroyed in 
part, or is so defaced that its value to the owner or holder is 
impaired, the drawer of the original check (or another official 
designated by the Secretary with the approval of the head of 
the agency on whose behalf the original check was issued) may 
issue to the owner or holder of the check a substitute check. 
The drawer or official shall issue the substitute check by the 
last day of the fiscal year after the fiscal year in which the 
original check was issued--
          (1) using the current date; and
          (2) drawn on the account of the drawer of the 
        original check or another account available for payment 
        of the substitute.
    (d) A substitute check issued under this section--
          (1) may be paid only if the original check has not 
        been paid;
          (2) shall include information necessary to identify 
        the original check;
          (3) that is drawn on the Treasury--
                  (A) is deemed to be an original check; and
                  (B) is paid under the same conditions as the 
                original check; and
          (4) does not relieve a disbursing or certifying 
        official from liability to the Government for payment 
        resulting from erroneously issuing the original check.
    (e) Before issuing a substitute check under this section, 
the Secretary may require the owner or holder of the original 
check to agree to indemnify the Government with security in the 
form and amount the Secretary decides is necessary.
    (f) Under conditions the Secretary may prescribe, the 
Secretary may delegate duties and powers of the Secretary under 
this section to the head of an agency. Consistent with a 
delegation from the Secretary under this subsection, the head 
of an agency may delegate those duties and powers to an officer 
or employee of the agency.

SEC. 3332. REQUIRED DIRECT DEPOSIT.

    (a)(1) Notwithstanding any other provision of law, all 
Federal wage, salary, and retirement payments shall be paid to 
recipients of such payments by electronic funds transfer, 
unless another method has been determined by the Secretary of 
the Treasury to be appropriate.
    (2) Each recipient of Federal wage, salary, or retirement 
payments shall designate one or more financial institutions or 
other authorized payment agents and provide the payment 
certifying or authorizing agency information necessary for the 
recipient to receive electronic funds transfer payments through 
each institution so designated.
    (b)(1) The head of each agency shall waive the requirements 
of subsection (a) of this section for a recipient of Federal 
wage, salary, or retirement payments authorized or certified by 
the agency upon written request by such recipient.
    (2) Federal wage, salary, or retirement payments shall be 
paid to any recipient granted a waiver under paragraph (1) of 
this subsection by any method determined appropriate by the 
Secretary of the Treasury.
    (c)(1) The Secretary of the Treasury may waive the 
requirements of subsection (a) of this section for any group of 
recipients upon request by the head of an agency under 
standards prescribed by the Secretary of the Treasury.
    (2) Federal wage, salary, or retirement payments shall be 
paid to any member of a group granted a waiver under paragraph 
(1) of this subsection by any method determined appropriate by 
the Secretary of the Treasury.
    (d) This section shall apply only to recipients of Federal 
wage or salary payments who begin to receive such payments on 
or after January 1, 1995, and recipients of Federal retirement 
payments who begin to receive such payments on or after January 
1, 1995.
    (e) The crediting of the amount of a payment to the 
appropriate account on the books of a financial institution or 
other authorized payment agent designated by a payment 
recipient under this section shall constitute a full 
acquittance to the United States for the amount of the payment.

SEC. 3333. RELIEF FOR PAYMENTS MADE WITHOUT NEGLIGENCE.

    (a)(1) The Secretary of the Treasury is not liable for a 
payment made by the Secretary or depositary in due course and 
without negligence, of a--
          (A) check, draft, or warrant drawn on the Treasury or 
        the depositary; and
          (B) debt obligation guaranteed or assumed by the 
        United States Government.
    (2) The Comptroller General shall credit the accounts of 
the Treasury or the depositary for the payment.
    (b) This section does not relieve another individual from 
civil or criminal liability for a check, draft, warrant, or 
debt obligation of the Government.

SEC. 3334. CANCELLATION AND PROCEEDS DISTRIBUTION OF TREASURY CHECKS.

    (a) In General.--(1) The Secretary shall provide monthly to 
each agency that authorizes the issuance of Treasury checks a 
list of those checks issued for such agency on or after such 
effective date that have not been paid and have become more 
than 12 months old during the preceding month, beginning with 
the fourteenth month following the effective date of this 
section.
    (2) Such checks shall be canceled by the Secretary and the 
proceeds thereof shall be returned to the agency concerned and 
credited to the appropriation or fund account initially charged 
for the payment.
    (b) Checks Issued Before Effective Date.--(1) Not later 
than 18 months after the effective date of this section, the 
Secretary shall identify and cancel all Treasury checks issued 
before such effective date that have not been paid in 
accordance with section 3328 of this title.
    (2) The proceeds from checks canceled pursuant to paragraph 
(1) shall be applied to eliminate the balances in accounts that 
represent uncollectible accounts receivable and other costs 
associated with the payment of checks and check claims by the 
Department of the Treasury on behalf of all payment certifying 
agencies. Any remaining proceeds shall be deposited to the 
miscellaneous receipts of the Treasury.
    (c) No Effect on Underlying Obligation.--Nothing in this 
section shall be construed to affect the underlying obligation 
of the United States, or any agency thereof, for which a 
Treasury check was issued.

SEC. 3335. TIMELY DISBURSEMENT OF FEDERAL FUNDS.

    (a) Each head of an executive agency (other than the 
Tennessee Valley Authority) shall, under such regulations as 
the Secretary of the Treasury shall prescribe, provide for the 
timely disbursement of Federal funds through cash, checks, 
electronic funds transfer, or any other means identified by the 
Secretary.
    (b) The Secretary may collect from any executive agency 
which does not comply with subsection (a) a charge in an amount 
the Secretary determines to be the cost to the general fund of 
the Treasury caused by such noncompliance.
    (c) The amounts of charges collected from an executive 
agency under this section shall be deposited in the Treasury 
and credited as miscellaneous receipts.
    (d) Any charge assessed by the Secretary under this 
section, to the maximum extent practicable--
          (1) shall be paid out of appropriations available for 
        executive agency operations; and
          (2) shall not be paid from amounts available for 
        funding programs of an executive agency.

                     Subchapter III--Miscellaneous

SEC. 3341. SALE OF GOVERNMENT WARRANTS, CHECKS, DRAFTS, AND 
                    OBLIGATIONS.

    (a) A disbursing official of the United States Government 
may sell a Government warrant, check, draft, or obligation not 
the property of the official at a premium, or dispose of the 
proceeds of the warrant, check, draft, or obligation, only if 
the official deposits the premium and the proceeds in the 
Treasury or with a depositary for the credit of the Government.
    (b) A disbursing official violating subsection (a) of this 
section shall be dismissed immediately.

SEC. 3342. CHECK CASHING AND EXCHANGE TRANSACTIONS.

    (a) A disbursing official of the United States Government 
may--
          (1) cash and negotiate negotiable instruments payable 
        in United States currency or currency of a foreign 
        country;
          (2) exchange United States currency, coins, and 
        negotiable instruments and currency, coins, and 
        negotiable instruments of foreign countries; and
          (3) cash checks drawn on the Treasury to accommodate 
        United States citizens in a foreign country, but only 
        if--
                  (A) satisfactory banking facilities are not 
                available in the foreign country; and
                  (B) a check is presented by the payee who is 
                a United States citizen.
    (b) A disbursing official may act under subsection (a)(1) 
and (2) of this section only for--
          (1) an official purpose;
          (2) personnel of the Government;
          (3) a veteran hospitalized or living in an 
        institution operated by an agency;
          (4) a contractor, or personnel of a contractor, 
        carrying out a Government project; and
          (5) personnel of an authorized agency not part of the 
        Government that operates with an agency of the 
        Government.
    (c)(1) An amount held by the disbursing official that is 
available for expenditure may be used to carry out subsection 
(a) of this section with the approval of the head of the agency 
having jurisdiction over the amount.
    (2) The head of an agency having jurisdiction over a 
disbursing official may offset, within the same fiscal year, a 
deficiency resulting from a transaction under subsection (a) of 
this section with a gain from a transaction under subsection 
(a). A gain in the account of a disbursing official not used to 
offset deficiencies under subsection (a) shall be deposited in 
the Treasury as miscellaneous receipts.
    (3) Amounts necessary to adjust for deficiencies in the 
account of a disbursing official because of transactions under 
subsection (a) of this section are authorized to be 
appropriated.
    (d) The Secretary of the Treasury and, with the approval of 
the Secretary, the head of an agency having jurisdiction over a 
disbursing official, may issue regulations to carry out this 
section. However, under conditions the Secretary decides are 
necessary, the Secretary may delegate to the head of an agency 
the authority to issue regulations applying to a disbursing 
official that is an officer or employee of the agency.

SEC. 3343. CHECK FORGERY INSURANCE FUND.

    (a) The Department of the Treasury has a special deposit 
revolving fund, the ``Check Forgery Insurance Fund''. Amounts 
may be appropriated to the Fund. The Fund consists of amounts--
          (1) appropriated to the Fund; and
          (2) received under subsection (d) of this section.
    (b) The Secretary of the Treasury shall pay from the Fund 
to a payee or special endorsee of a check drawn on the Treasury 
or a depositary designated by the Secretary the amount of the 
check without interest if--
          (1) the check was lost or stolen without the fault of 
        the payee or a holder that is a special endorsee and 
        whose endorsement is necessary for further negotiation;
          (2) the check was negotiated later and paid by the 
        Secretary or a depositary on a forged endorsement of 
        the payee's or special endorsee's name;
          (3) the payee or special endorsee has not 
        participated in any part of the proceeds of the 
        negotiation or payment; and
          (4) recovery from the forger, a transferee, or a 
        party on the check after the forgery has been or may be 
        delayed or unsuccessful.
    (c) Notwithstanding section 1306 of this title, a check 
drawn on a designated depositary may be paid in the currency of 
a foreign country when the appropriate accountable official 
authorizes payment in that currency.
    (d) The Secretary shall deposit immediately to the credit 
of the Fund an amount recovered from a forger or a transferee 
or party on the check. However, currency of a foreign country 
recovered because of a forged check drawn on a designated 
depositary shall be credited to the Fund or to the foreign 
currency fund that was charged when payment was made under 
subsection (b) of this section to the payee or special 
endorsee.
    (e) This section does not relieve--
          (1) a forger from civil or criminal liability; or
          (2) a transferee or party on a check after the 
        forgery from liability--
                  (A) on the express or implied warranty of 
                prior endorsements of the transferee or party; 
                or
                  (B) to refund amounts to the Secretary.
          * * * * * * *
    The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
3301......................................  31 C.F.R. 206               
                                            TFM, Volume 1, Part 6,      
                                             Chapter 8000 and Chapter   
                                             9000, see appendix V       
3302......................................  31 C.F.R. 206               
                                            OMB: Circular A-50, see     
                                             appendix IV                
                                            TFM, Volume 1, Part 6,      
                                             Chapter 8000, see appendix 
                                             V                          
3321......................................  31 C.F.R. 206               
                                            TFM, Volume 1, Part 2,      
                                             Chapter 3100, see appendix 
                                             V                          
                                            TFM, Volume 1, Part 4,      
                                             Chapter 1000, Chapter 1100,
                                             Chapter 3000, Chapter 4500,
                                             see appendix V             
3322......................................  OMB: Bulletin 94-09, see    
                                             appendix IV                
                                            TFM, Volume 1, Part 4,      
                                             Chapter 4500, see appendix 
                                             V                          
3325......................................  TFM, Volume 1, Part 4,      
                                             Chapter 1100, see appendix 
                                             V                          
                                            TFM, Volume 1, Part 6,      
                                             Chapter 6000, see appendix 
                                             V                          
3326......................................  TFM, Volume 1, Part 6,      
                                             Chapter 6000, see appendix 
                                             V                          
3327......................................  31 C.F.R. 206               
                                            TFM, Volume 1, Part 4,      
                                             Chapter 4500, see appendix 
                                             V                          
3328......................................  31 C.F.R. 206, 240, 245     
3331......................................  31 C.F.R. 240, 245, 248     
3332......................................  31 C.F.R. 206               
3335......................................  31 C.F.R. 205, 206          
                                            OMB: Bulletin 94-09, see    
                                             appendix IV                
                                            TFM, Volume 1, Part 4,      
                                             Chapter 4500, see appendix 
                                             V                          
3343......................................  31 C.F.R. 235, 240          
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                   Subtitle III--Financial Management

          * * * * * * *

                 CHAPTER 35--ACCOUNTING AND COLLECTION

                         Subchapter I--General

SEC. 3501. DEFINITION

  In this chapter, ``executive agency'' does not include 
(except in section 3513 of this title) a corporation, agency, 
or instrumentality subject to chapter 91 of this title.

    Subchapter II--Accounting Requirements, Systems, and Information

SEC. 3511. PRESCRIBING ACCOUNTING REQUIREMENTS AND DEVELOPING 
                    ACCOUNTING SYSTEMS.

    (a) The Comptroller General shall prescribe the accounting 
principles, standards, and requirements that the head of each 
executive agency shall observe.\5\ Before prescribing the 
principles, standards, and requirements, the Comptroller 
General shall consult with the Secretary of the Treasury and 
the President on their accounting, financial reporting, and 
budgetary needs, and shall consider the needs of the heads of 
the other executive agencies.
---------------------------------------------------------------------------
    \5\ The Comptroller General also prescribes internal control 
standards. The ``Federal Managers' Financial Integrity Act of 1982,'' 
PL 97-255, Section 2(d)(1)(A) states that ``. . . internal accounting 
and administrative controls of each executive agency shall be 
established in accordance with standards prescribed by the Comptroller 
General . . .''
---------------------------------------------------------------------------
    (b) Requirements prescribed under subsection (a) of this 
section shall--
          (1) provide for suitable integration between the 
        accounting process of each executive agency and the 
        accounting of the Department of the Treasury;
          (2) allow the head of each agency to carry out 
        section 3512 of this title; and
          (3) provide a method of--
                  (A) integrated accounting for the United 
                States Government;
                  (B) complete disclosure of the results of the 
                financial operations of each agency and the 
                Government; and
                  (C) financial information and control the 
                President and Congress require to carry out 
                their responsibilities.
    (c) Consistent with subsections (a) and (b) of this 
section--
          (1) the authority of the Comptroller General 
        continues under section 205(b) of the Federal Property 
        and Administrative Services Act of 1949 (40 U.S.C. 
        486(b)); and
          (2) the Comptroller General may prescribe the forms, 
        systems, and procedures that the judicial branch of the 
        Government (except the Supreme Court) shall observe.
    (d) The Comptroller General, the Secretary, and the 
President shall conduct a continuous program for improving 
accounting and financial reporting in the Government.

SEC. 3512. EXECUTIVE AGENCY ACCOUNTING AND OTHER FINANCIAL MANAGEMENT 
                    REPORTS AND PLANS.

    (a)(1) The Director of the Office of Management and Budget 
shall prepare and submit to the appropriate committees of the 
Congress a financial management status report and a 
governmentwide 5-year financial management plan.
    (2) A financial management status report under this 
subsection shall include--
          (A) a description and analysis of the status of 
        financial management in the executive branch;
          (B) a summary of the most recently completed 
        financial statements--
                  (i) of Federal agencies under section 3515 of 
                this title; and
                  (ii) of Government corporations;
          (C) a summary of the most recently completed 
        financial statement audits and reports--
                  (i) of Federal agencies under section 3521(e) 
                and (f) of this title; and
                  (ii) of Government corporations;
          (D) a summary of reports on internal accounting and 
        administrative control systems submitted to the 
        President and the Congress under the amendments made by 
        the Federal Managers' Financial Integrity Act of 1982 
        (Public Law 97-255); and
          (E) any other information the Director considers 
        appropriate to fully inform the Congress regarding the 
        financial management of the Federal Government.
    (3)(A) A governmentwide 5-year financial management plan 
under this subsection shall describe the activities the 
Director, the Deputy Director for Management, the Controller of 
the Office of Federal Financial Management, and agency Chief 
Financial Officers shall conduct over the next 5 fiscal years 
to improve the financial management of the Federal Government.
    (B) Each governmentwide 5-year financial management plan 
prepared under this subsection shall--
          (i) describe the existing financial management 
        structure and any changes needed to establish an 
        integrated financial management system;
          (ii) be consistent with applicable accounting 
        principles, standards, and requirements;
          (iii) provide a strategy for developing and 
        integrating individual agency accounting, financial 
        information, and other financial management systems to 
        ensure adequacy, consistency, and timeliness of 
        financial information;
          (iv) identify and make proposals to eliminate 
        duplicative and unnecessary systems, including 
        encouraging agencies to share systems which have 
        sufficient capacity to perform the functions needed;
          (v) identify projects to bring existing systems into 
        compliance with the applicable standards and 
        requirements;
          (vi) contain milestones for equipment acquisitions 
        and other actions necessary to implement the 5-year 
        plan consistent with the requirements of this section;
          (vii) identify financial management personnel needs 
        and actions to ensure those needs are met;
          (viii) include a plan for ensuring the annual audit 
        of financial statements of executive agencies pursuant 
        to section 3521(h) of this title; and
          (ix) estimate the costs of implementing the 
        governmentwide 5-year plan.
    (4)(A) Not later than 15 months after the date of the 
enactment of this subsection, the Director of the Office of 
Management and Budget shall submit the first financial 
management status report and governmentwide 5-year financial 
management plan under this subsection to the appropriate 
committees of the Congress.
    (B)(i) Not later than January 31 of each year thereafter, 
the Director of the Office of Management and Budget shall 
submit to the appropriate committees of the Congress a 
financial management status report and a revised governmentwide 
5-year financial management plan to cover the succeeding 5 
fiscal years, including a report on the accomplishments of the 
executive branch in implementing the plan during the preceding 
fiscal year.
    (ii) The Director shall include with each revised 
governmentwide 5-year financial management plan a description 
of any substantive changes in the financial statement audit 
plan required by paragraph (3)(B)(viii), progress made by 
executive agencies in implementing the audit plan, and any 
improvements in Federal Government financial management related 
to preparation and audit of financial statements of executive 
agencies.
    (5) Not later than 30 days after receiving each annual 
report under section 902(a)(6) of this title, the Director 
shall transmit to the Chairman of the Committee on Government 
Operations of the House of Representatives and the Chairman of 
the Committee on Governmental Affairs of the Senate a final 
copy of that report and any comments on the report by the 
Director.
    (b) The head of each executive agency shall establish and 
maintain systems of accounting and internal controls that 
provide--
          (1) complete disclosure of the financial results of 
        the activities of the agency;
          (2) adequate financial information the agency needs 
        for management purposes;
          (3) effective control over, and accountability for, 
        assets for which the agency is responsible, including 
        internal audit;
          (4) reliable accounting results that will be the 
        basis for--
                  (A) preparing and supporting the budget 
                requests of the agency;
                  (B) controlling the carrying out of the 
                agency budget; and
                  (C) providing financial information the 
                President requires under section 1104(e) of 
                this title; and
          (5) suitable integration of the accounting of the 
        agency with the central accounting and reporting 
        responsibilities of the Secretary of the Treasury under 
        section 3513 of this title.
    (c)(1) To ensure compliance with subsection (b)(3) of this 
section and consistent with standards the Comptroller General 
prescribes, the head of each executive agency shall establish 
internal accounting and administrative controls that reasonably 
ensure that--
          (A) obligations and costs comply with applicable law;
          (B) all assets are safeguarded against waste, loss, 
        unauthorized use, and misappropriation; and
          (C) revenues and expenditures applicable to agency 
        operations are recorded and accounted for properly so 
        that accounts and reliable financial and statistical 
        reports may be prepared and accountability of the 
        assets may be maintained.
    (2) Standards the Comptroller General prescribes under this 
subsection shall include standards to ensure the prompt 
resolution of all audit findings.
    (d)(1) In consultation with the Comptroller General, the 
Director of the Office of Management and Budget--
          (A) shall establish by December 31, 1982, guidelines 
        that the head of each executive agency shall follow in 
        evaluating the internal accounting and administrative 
        control systems of the agency to decide whether the 
        systems comply with subsection (c) of this section; and
          (B) may change a guideline when considered necessary.
    (2) By December 31 of each year (beginning in 1983), the 
head of each executive agency, based on an evaluation conducted 
according to guidelines prescribed under paragraph (1) of this 
subsection, shall prepare a statement on whether the systems of 
the agency comply with subsection (c) of this section, 
including--
          (A) if the head of an executive agency decides the 
        systems do not comply with subsection (c) of this 
        section, a report identifying any material weakness in 
        the systems and describing the plans and schedule for 
        correcting the weakness; and
          (B) a separate report on whether the accounting 
        system of the agency conforms to the principles, 
        standards, and requirements the Comptroller General 
        prescribes under section 3511(a) of this title.
    (3) The head of each executive agency shall sign the 
statement and reports required by this subsection and submit 
them to the President and Congress. The statement and reports 
are available to the public, except that information shall be 
deleted from a statement or report before it is made available 
if the information specifically is--
          (A) prohibited from disclosure by law; or
          (B) required by Executive order to be kept secret in 
        the interest of national defense or the conduct of 
        foreign affairs.
  (e) To assist in preparing a cost-based budget under section 
1108(b) of this title and consistent with principles and 
standards the Comptroller General prescribes, the head of each 
executive agency shall maintain the accounts of the agency on 
an accrual basis to show the resources, liabilities, and costs 
of operations of the agency. An accounting system under this 
subsection shall include monetary property accounting records.
  (f) The Comptroller General shall--
          (1) cooperate with the head of each executive agency 
        in developing an accounting system for the agency; and
          (2) approve the system when the Comptroller General 
        considers it to be adequate and in conformity with the 
        principles, standards, and requirements prescribed 
        under section 3511 of this title.
  (g) The Comptroller General shall review the accounting 
systems of each executive agency. The results of a review shall 
be available to the head of the executive agency, the 
Secretary, and the President. The Comptroller General shall 
report to Congress on a review when the Comptroller General 
considers it proper.

SEC. 3513. FINANCIAL REPORTING AND ACCOUNTING SYSTEM.

  (a) The Secretary of the Treasury shall prepare reports that 
will inform the President, Congress, and the public on the 
financial operations of the United States Government. The 
reports shall include financial information the President 
requires. The head of each executive agency shall give the 
Secretary reports and information on the financial conditions 
and operations of the agency the Secretary requires to prepare 
the reports.
  (b) The Secretary may--
          (1) establish facilities necessary to prepare the 
        reports; and
          (2) reorganize the accounting functions and 
        procedures and financial reports of the Department of 
        the Treasury to develop an effective and coordinated 
        system of accounting and financial reporting in the 
        Department that will integrate the accounting results 
        for the Department and be the operating center for 
        consolidating accounting results of other executive 
        agencies with accounting results of the Department.
  (c) The Comptroller General shall--
          (1) cooperate with the Secretary in developing and 
        establishing the reporting and accounting system under 
        this section; and
          (2) approve the system when the Comptroller General 
        considers it to be adequate and in conformity with the 
        principles, standards, and requirements prescribed 
        under section 3511 of this title.

SEC. 3514. DISCONTINUING CERTAIN ACCOUNTS MAINTAINED BY THE COMPTROLLER 
                    GENERAL.

  The Comptroller General may discontinue an agency 
appropriation, expenditure, limitation, receipt, or personal 
ledger account maintained by the Comptroller General when the 
Comptroller General believes that the accounting system and 
internal controls of the agency will allow the Comptroller 
General to carry out the functions related to the account.

SEC. 3515. FINANCIAL STATEMENTS OF AGENCIES.

  (a) Not later than March 1 of 1997 and each year thereafter, 
the head of each executive agency identified in section 901(b) 
of this title shall prepare and submit to the Director of the 
Office of Management and Budget an audited financial statement 
for the preceding fiscal year, covering all accounts and 
associated activities of each office, bureau, and activity of 
the agency.
  (b) Each audited financial statement of an executive agency 
under this section shall reflect--
          (1) the overall financial position of the offices, 
        bureaus, and activities covered by the statement, 
        including assets and liabilities thereof; and
          (2) results of operations of those offices, bureaus, 
        and activities.
  (c) The Director of the Office of Management and Budget shall 
identify components of executive agencies that shall be 
required to have audited financial statements meeting the 
requirements of subsection (b).
  (d) The Director of the Office of Management and Budget shall 
prescribe the form and content of the financial statements of 
executive agencies under this section, consistent with 
applicable accounting and financial reporting principles, 
standards, and requirements.
  (e) The Director of the Office of Management and Budget may 
waive the application of all or part of subsection (a) for 
financial statements required for fiscal years 1996 and 1997.
  (f) Not later than March 1 of 1995 and 1996, the head of each 
executive agency identified in section 901(b) of this title and 
designated by the Director of the Office of Management and 
Budget shall prepare and submit to the Director of the Office 
of Management and Budget an audited financial statement for the 
preceding fiscal year, covering all accounts and associated 
activities of each office, bureau, and activity of the agency.
  (g) Not later than March 31 of 1995 and 1996, for executive 
agencies not designated by the Director of the Office of 
Management and Budget under subsection (f), the head of each 
executive agency identified in section 901(b) of this title 
shall prepare and submit to the Director of the Office of 
Management and Budget a financial statement for the preceding 
fiscal year, covering--
          (1) each revolving fund and trust fund of the agency; 
        and
          (2) to the extent practicable, the accounts of each 
        office, bureau, and activity of the agency which 
        performed substantial commercial functions during the 
        preceding fiscal year.
  (h) For purposes of subsection (g), the term ``commercial 
functions'' includes buying and leasing of real estate, 
providing insurance, making loans and loan guarantees, and 
other credit programs and any activity involving the provision 
of a service or thing for which a fee, royalty, rent, or other 
charge is imposed by an agency for services and things of value 
it provides.

             Subchapter III--Auditing and Settling Accounts

SEC. 3521. AUDITS BY AGENCIES.

  (a) Each account of an agency shall be audited 
administratively before being submitted to the Comptroller 
General. The head of each agency shall prescribe regulations 
for conducting the audit and designate a place at which the 
audit is to be conducted. However, a disbursing official of an 
executive agency may not administratively audit vouchers for 
which the official is responsible. With the consent of the 
Comptroller General, the head of the agency may waive any part 
of an audit.
  (b) The head of an agency may prescribe a statistical 
sampling procedure to audit vouchers of the agency when the 
head of the agency decides economies will result from using the 
procedure. The Comptroller General--
          (1) may prescribe the maximum amount of a voucher 
        that may be audited under this subsection; and
          (2) in reviewing the accounting system of the agency, 
        shall evaluate the adequacy and effectiveness of the 
        procedure.
  (c) A disbursing or certifying official acting in good faith 
under subsection (b) of this section is not liable for a 
payment or certification of a voucher not audited specifically 
because of the procedure prescribed under subsection (b) if the 
official and the head of the agency carry out diligently 
collection action the Comptroller General prescribes.
  (d) Subsections (b) and (c) of this section do not--
          (1) affect the liability, or authorize the relief, of 
        a payee, beneficiary, or recipient of an illegal, 
        improper, or incorrect payment; or
          (2) relieve a disbursing or certifying official, the 
        head of an agency, or the Comptroller General of 
        responsibility in carrying out collection action 
        against a payee, beneficiary, or recipient.
  (e) Each financial statement prepared under section 3515 by 
an agency shall be audited in accordance with applicable 
generally accepted government auditing standards--
          (1) in the case of an agency having an Inspector 
        General appointed under the Inspector General Act of 
        1978 (5 U.S.C. App.), by the Inspector General or by an 
        independent external auditor, as determined by the 
        Inspector General of the agency; and
          (2) in any other case, by an independent external 
        auditor, as determined by the head of the agency.
  (f)(1) For each audited financial statement required under 
subsections (a) and (f) of section 3515 of this title, the 
person who audits the statement for purpose of subsection (e) 
of this section shall submit a report on the audit to the head 
of the agency. A report under this subsection shall be prepared 
in accordance with generally accepted government auditing 
standards.
  (2) Not later than June 30 following the fiscal year for 
which a financial statement is submitted under subsection (g) 
of section 3515 of this title, the person who audits the 
statement for purpose of subsection (e) of this section shall 
submit a report on the audit to the head of the agency. A 
report under this subsection shall be prepared in accordance 
with generally accepted government auditing standards.
  (g) The Comptroller General of the United States--
          (1) may review any audit of a financial statement 
        conducted under this subsection by an Inspector General 
        or an external auditor;
          (2) shall report to the Congress, the Director of the 
        Office of Management and Budget, and the head of the 
        agency which prepared the statement, regarding the 
        results of the review and make any recommendation the 
        Comptroller General considers appropriate; and
          (3) may audit a financial statement prepared under 
        section 3515 of this title at the discretion of the 
        Comptroller General or at the request of a committee of 
        the Congress.
An audit the Comptroller General performs under this subsection 
shall be in lieu of the audit otherwise required by subsection 
(e) of this section. Prior to performing such audit, the 
Comptroller General shall consult with the Inspector General of 
the agency which prepared the statement.
  (h) Each financial statement prepared by an executive agency 
for a fiscal year after fiscal year 1991 shall be audited in 
accordance with this section and the plan required by section 
3512(a)(3)(B)(viii) of this title.

SEC. 3522. MAKING AND SUBMITTING ACCOUNTS.

  (a)(1) Unless the Comptroller General decides the public 
interest requires that an account be made more frequently, each 
disbursing official shall make a quarterly account. An official 
or agent of the United States Government receiving public money 
not authorized to be kept as pay of the official or agent shall 
make a monthly account of the money.
  (2) An official or agent of the Government receiving public 
money shall make an account of public money received by the 
official or agent according to the appropriation from which the 
money was advanced.
  (b)(1) A monthly account shall be submitted to the 
appropriate official in the District of Columbia by the 10th 
day after the end of the month covered by the account. The 
official shall submit the account to the Comptroller General by 
the 20th day after receiving the account.
  (2) An account (except a monthly account) shall be submitted 
to the appropriate official in the District of Columbia by the 
20th day after the end of the period covered by the account. 
The official shall submit the account to the Comptroller 
General by the 60th day after receiving the account.
  (3) Notwithstanding paragraphs (1) and (2) of this 
subsection, an account of the armed forces shall be submitted 
to the Comptroller General by the 60th day after the account is 
received. However, during a war or national emergency and for 
18 months after the war or emergency ends, an account shall be 
submitted to the Comptroller General by the 90th day after the 
account is received.
  (4) Notwithstanding paragraphs (1) and (2) of this 
subsection, an account of a disbursing official of the 
Department of Justice shall be submitted to the Comptroller 
General by the 80th day after the account is received.
  (c) An official shall give evidence of compliance with 
subsection (b) of this section if an account is not received 
within a reasonable time after the time required by subsection 
(b).
  (d) The head of an agency may require other returns or 
reports about the agency that the public interest requires.
  (e)(1) The Comptroller General shall disapprove a requisition 
for an advance of money if an account from which the advance is 
to be made is not submitted to the Comptroller General within 
the time required by subsection (b) of this section. The 
Comptroller General may disapprove the request for another 
reason related to the condition of an account of the official 
for whom the advance is requested. However, the Secretary of 
the Treasury may overrule the decision of the Comptroller 
General on the sufficiency of the other reasons.
  (2) The Secretary may extend the time requirements of 
subsection (b)(1) and (2) of this section for submitting an 
account to the proper official in the District of Columbia or 
waive a condition of delinquency only when there is, or is 
likely to be, a manifest physical difficulty in complying with 
those requirements. If an account is not submitted to the 
Comptroller General on time under subsection (b), an order of 
the President or, if the President is ill or not in the 
District of Columbia, the Secretary is required to authorize an 
advance.

SEC. 3523. GENERAL AUDIT AUTHORITY OF THE COMPTROLLER GENERAL.

  (a) Except as specifically provided by law, the Comptroller 
General shall audit the financial transactions of each agency. 
In deciding on auditing procedures and the extent to which 
records are to be inspected, the Comptroller General shall 
consider generally accepted auditing principles, including the 
effectiveness of accounting organizations and systems, internal 
audit and control, and related administrative practices of each 
agency.
  (b) The Comptroller General shall audit the Architect of the 
Capitol at times the Comptroller General considers appropriate. 
Section 716 of this title applies to the Architect in 
conducting the audit. The Comptroller General shall report the 
results of the audit to Congress. Each report shall be printed 
as a Senate document.
  (c)(1) When the Comptroller General decides an audit shall be 
conducted at a place at which the records of an executive 
agency or the Architect of the Capitol are usually kept, the 
Comptroller General may require the head of the agency or the 
Architect to keep any part of an account of an accountable 
official or of a record required to be submitted to the 
Comptroller General. The Comptroller General may require 
records be kept under conditions and for a period of not more 
than 10 years specified by the Comptroller General. However, 
the Comptroller General and the head of the agency or the 
Architect may agree on a longer period.
  (2) The Comptroller General and the head of an agency in the 
legislative or judicial branch of the United States Government 
(except the Architect) may agree to apply this subsection to 
the agency.

SEC. 3524. AUDITING EXPENDITURES APPROVED WITHOUT VOUCHERS.

  (a)(1) The Comptroller General may audit expenditures, 
accounted for only on the approval, authorization, or 
certificate of the President or an official of an executive 
agency, to decide if the expenditure was authorized by law and 
made. Records and related information shall be made available 
to the Comptroller General in conducting the audit.
  (2) The Comptroller General may release the results of the 
audit or disclose related information only to the President or 
head of the agency, or, if there is an unresolved discrepancy, 
to the Committee on Governmental Affairs of the Senate, the 
Committee on Government Operations of the House of 
Representatives, and the committees of Congress having 
legislative or appropriation oversight of the expenditure.
  (b) Before December 1 of each year, the Director of the 
Office of Management and Budget shall submit a report listing 
each account that may be subject to this section to the 
Committees on the Budget and Appropriations of both Houses of 
Congress, the Committee on Governmental Affairs, and to the 
Committee on Government Operations, and to the Comptroller 
General.
  (c) The President may exempt from this section a financial 
transaction about sensitive foreign intelligence or foreign 
counter-intelligence activities or sensitive law enforcement 
investigations if an audit would expose the identifying details 
of an active investigation or endanger investigative or 
domestic intelligence sources involved in the investigation. 
The exemption may apply to a class or category of financial 
transactions.
  (d) This section does not--
          (1) apply to expenditures under section 102, 103, 
        105(d)(1), (3), or (5), or 106(b)(2) or (3) of title 3; 
        or
          (2) affect authority under section 8(b) of the 
        Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403j(b)).
  (e) Information about a financial transaction exempt under 
subsection (c) of this section or a financial transaction under 
section 8(b) of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403j(b)) may be reviewed by the Permanent Select 
Committee on Intelligence of the House and the Select Committee 
on Intelligence of the Senate.
  (f) Subsections (a)(1) and (d)(1) of this section may be 
superseded only by a law enacted after April 3, 1980, 
specifically repealing or amending this section.

SEC. 3525. AUDITING NONAPPROPRIATED FUND ACTIVITIES.

  (a) The Comptroller General may audit--
          (1) the operations and accounts of each 
        nonappropriated fund and related activities authorized 
        or operated by the head of an executive agency to sell 
        goods or services to United States Government personnel 
        and their dependents;
          (2) accounting systems and internal controls of the 
        fund and related activities; and
          (3) internal or independent audits or reviews of the 
        fund and related activities.
  (b) The head of each executive agency promptly shall provide 
the Comptroller General with--
          (1) a copy of the annual report of a nonappropriated 
        fund and related activities subject to this section 
        when the Comptroller General--
                  (A) requires a report for a designated class 
                of each fund and related activities having 
                gross sales receipts of more than $100,000 a 
                year; or
                  (B) specifically requests a report for 
                another fund and related activities; and
          (2) a statement on the yearly financial operations, 
        financial condition, and cash flow and other yearly 
        information about the fund and related activities that 
        the head of the agency and the Comptroller General 
        agree on if the information is not included in the 
        annual report.
  (c) Records and property of a fund and related activities 
subject to this section shall be made available to the 
Comptroller General to the extent the Comptroller General 
considers necessary.

SEC. 3526. SETTLEMENT OF ACCOUNTS.

  (a) The Comptroller General shall settle all accounts of the 
United States Government and supervise the recovery of all 
debts finally certified by the Comptroller General as due the 
Government.
  (b) A decision of the Comptroller General under section 3529 
of this title is conclusive on the Comptroller General when 
settling the account containing the payment.
  (c)(1) The Comptroller General shall settle an account of an 
accountable official within 3 years after the date the 
Comptroller General receives the account. A copy of the 
certificate of settlement shall be provided the official.
  (2) The settlement of an account is conclusive on the 
Comptroller General after 3 years after the account is received 
by the Comptroller General. However, an amount may be charged 
against the account after the 3-year period when the Government 
has or may have lost money because the official acted 
fraudulently or criminally.
  (3) A 3-year period under this subsection is suspended during 
a war.
  (4) This subsection does not prohibit--
          (A) recovery of public money illegally or erroneously 
        paid;
          (B) recovery from an official of a balance due the 
        Government under a settlement within the 3-year period; 
        or
          (C) an official from clearing an account of 
        questioned items as prescribed by law.
  (d) On settling an account of the Government, the balance 
certified by the Comptroller General is conclusive on the 
executive branch of the Government. On the initiative of the 
Comptroller General or on request of an individual whose 
accounts are settled or the head of the agency to which the 
account relates, the Comptroller General may change the account 
within a year after settlement. The decision of the Comptroller 
General to change the account is conclusive on the executive 
branch.
  (e) When an amount of money is expended under law for a 
treaty or relations with a foreign country, the President may--
          (1) authorize the amount to be accounted for each 
        year specifically by settlement of the Comptroller 
        General when the President decides the amount expended 
        may be made public; or
          (2) make, or have the Secretary of State make, a 
        certificate of the amount expended if the President 
        decides the amount is not to be accounted for 
        specifically. The certificate is a sufficient voucher 
        for the amount stated in the certificate.
  (f) The Comptroller General shall keep all settled accounts, 
vouchers, certificates, and related papers until they are 
disposed of as prescribed by law.
  (g) This subchapter does not prohibit the Comptroller General 
from suspending an item in an account to get additional 
evidence or explanations needed to settle an account.

SEC. 3527. GENERAL AUTHORITY TO RELIEVE ACCOUNTABLE OFFICIALS AND 
                    AGENTS FROM LIABILITY.

  (a) Except as provided in subsection (b) of this section, the 
Comptroller General may relieve a present or former accountable 
official or agent of an agency responsible for the physical 
loss or deficiency of public money, vouchers, checks, 
securities, or records, or may authorize reimbursement from an 
appropriation or fund available for the activity in which the 
loss or deficiency occurred for the amount of the loss or 
deficiency paid by the official or agent as restitution, when--
          (1) the head of the agency decides that--
                  (A) the official or agent was carrying out 
                official duties when the loss or deficiency 
                occurred, or the loss or deficiency occurred 
                because of an act or failure to act by a 
                subordinate of the official or agent; and
                  (B) the loss or deficiency was not the result 
                of fault or negligence by the official or 
                agent;
          (2) the loss or deficiency was not the result of an 
        illegal or incorrect payment; and
          (3) the Comptroller General agrees with the decision 
        of the head of the agency.
  (b)(1) The Comptroller General shall relieve a disbursing 
official of the armed forces responsible for the physical loss 
or deficiency of public money, vouchers, or records, or shall 
authorize reimbursement, from an appropriation or fund 
available for reimbursement, of the amount of the loss or 
deficiency paid by or for the official as restitution, when--
          (A) the Secretary of Defense or the appropriate 
        Secretary of the military department of the Department 
        of Defense decides that the official was carrying out 
        official duties when the loss or deficiency occurred;
          (B) the loss or deficiency was not the result of an 
        illegal or incorrect payment; and
          (C) the loss or deficiency was not the result of 
        fault or negligence by the official.
  (2) The finding of the Secretary involved is conclusive on 
the Comptroller General.
  (c) On the initiative of the Comptroller General or written 
recommendation of the head of an agency, the Comptroller 
General may relieve a present or former disbursing official of 
the agency responsible for a deficiency in an account because 
of an illegal, improper, or incorrect payment, and credit the 
account for the deficiency, when the Comptroller General 
decides that the payment was not the result of bad faith or 
lack of reasonable care by the official. However, the 
Comptroller General may deny relief when the Comptroller 
General decides the head of the agency did not carry out 
diligently collection action under procedures prescribed by the 
Comptroller General.
  (d)(1) When the Comptroller General decides it is necessary 
to adjust the account of an official or agent granted relief 
under subsection (a) or (c) of this section, the amount of the 
relief shall be charged--
          (A) to an appropriation specifically provided to be 
        charged; or
          (B) if no specific appropriation, to the 
        appropriation or fund available for the expense of the 
        accountable function when the adjustment is carried 
        out.
  (2) Subsection (c) of this section does not--
          (A) affect the liability, or authorize the relief, of 
        a payee, beneficiary, or recipient of an illegal, 
        improper, or incorrect payment; or
          (B) relieve an accountable official, the head of an 
        agency, or the Comptroller General of responsibility in 
        carrying out collection action against a payee, 
        beneficiary, or recipient.
  (e) Relief provided under this section is in addition to 
relief provided under another law.

SEC. 3528. RESPONSIBILITIES AND RELIEF FROM LIABILITY OF CERTIFYING 
                    OFFICIALS.

  (a) A certifying official certifying a voucher is responsible 
for--
          (1) information stated in the certificate, voucher, 
        and supporting records;
          (2) the computation of a certified voucher under this 
        section and section 3325 of this title;
          (3) the legality of a proposed payment under the 
        appropriation or fund involved; and
          (4) repaying a payment--
                  (A) illegal, improper, or incorrect because 
                of an inaccurate or misleading certificate;
                  (B) prohibited by law; or
                  (C) that does not represent a legal 
                obligation under the appropriation or fund 
                involved.
  (b)(1) The Comptroller General may relieve a certifying 
official from liability when the Comptroller General decides 
that--
          (A) the certification was based on official records 
        and the official did not know, and by reasonable 
        diligence and inquiry could not have discovered, the 
        correct information; or
          (B)(i) the obligation was incurred in good faith;
          (ii) no law specifically prohibited the payment; and
          (iii) the United States Government received value for 
        payment.
  (2) The Comptroller General may deny relief when the 
Comptroller General decides the head of the agency did not 
carry out diligently collection action under procedures 
described by the Comptroller General.
  (c) The Comptroller General shall relieve a certifying 
official from liability for an overpayment--
          (1) to a common carrier under section 3726 of this 
        title when the Comptroller General decides the 
        overpayment occurred only because the administrative 
        audit before payment did not verify transportation 
        rates, freight classifications, or land-grant 
        deductions; or
          (2) provided under a Government bill of lading or 
        transportation request when the overpayment was the 
        result of using improper transportation rates or 
        classifications or the failure to deduct the proper 
        amount under a land-grant law or agreement.
  (d) This section does not apply to disbursements of a 
military department of the Department of Defense, except 
disbursements for departmental pay and expenses in the District 
of Columbia.

SEC. 3529. REQUEST FOR DECISIONS OF THE COMPTROLLER GENERAL.

  (a) A disbursing or certifying official or the head of an 
agency may request a decision from the Comptroller General on a 
question involving--
          (1) a payment the disbursing official or head of the 
        agency will make; or
          (2) a voucher presented to a certifying official for 
        certification.
  (b) The Comptroller General shall issue a decision requested 
under this section.

SEC. 3530. ADJUSTING ACCOUNTS.

  (a) An appropriation or fund currently available for the 
expense of an accountable function shall be charged with an 
amount necessary to adjust an account of an accountable 
official or agent when--
          (1) necessary to adjust the account for a loss to the 
        United States Government resulting from the fault or 
        negligence of the official or agent; and
          (2) the head of the agency decides the loss is 
        uncollectable.
  (b) An adjustment does not affect the personal financial 
liability of an official or agent for the loss.
  (c) The Comptroller General shall prescribe regulations to 
carry out subsection (a) of this section.
  (d) Under procedures prescribed by the Comptroller General, 
the head of an agency may charge the net amount of unpaid and 
overpaid balances in individual pay accounts against the 
appropriation for the fiscal year in which the balances 
occurred and from which the accounts were payable. The net 
amount shall be credited to and paid from the corresponding 
appropriation for the next fiscal year.

SEC. 3531. PROPERTY RETURNS.

  (a) The head of an executive department--
          (1) shall certify to the Comptroller General a charge 
        against an official or agent entrusted with public 
        property for the department resulting from a loss to 
        the United States Government from the property because 
        of fault of the official or agent; and
          (2) may not forward the property to the Comptroller 
        General.
  (b)(1) A certificate under subsection (a) of this section 
shall state--
          (A) the condition of the property;
          (B) that the official or agent has had a reasonable 
        opportunity to be heard but has not been relieved of 
        liability; and
          (C) that the certificate includes all charges not 
        certified previously.
  (2) The effect of information in the certificate is the same 
as if the Comptroller General had discovered the information 
when auditing the account. The Comptroller General shall charge 
the appropriate account for the amount of the loss.
  (c) Except as provided in subsection (a) of this section, 
this section does not affect the way a property return is made 
or liability for property is decided.

SEC. 3532. NOTIFICATION OF ACCOUNT DEFICIENCIES.

  An accounting official discovering a deficiency in an account 
of an official of the United States Government having custody 
of public money shall notify the head of the agency having 
jurisdiction of the official of the kind and amount of the 
deficiency.

                       Subchapter IV--Collection

SEC. 3541. DISTRESS WARRANTS.

  (a) When an official receiving public money before it is paid 
to the Treasury or a disbursing or certifying official of the 
United States Government does not submit an account or pay the 
money as prescribed by law, the Comptroller General shall make 
the account for the official and certify to the Secretary of 
the Treasury the amount due the Government.
  (b) The Secretary shall issue a distress warrant against the 
official stating the amount due from the official and any 
amount paid. The warrant shall be directed to the marshal of 
the district in which the official resides. If the Secretary 
intends to take and sell the property of an official that is 
located in a district other than where the official resides, 
the warrant shall be directed to the marshal of the district in 
which the official resides and the marshal of the district in 
which the property is located.

SEC. 3542. CARRYING OUT DISTRESS WARRANTS.

  (a) A marshal carrying out a distress warrant issued under 
section 3541 of this title shall seize the personal property of 
the official and sell the property after giving 10 days notice 
of the sale. Notice shall be given by posting an advertisement 
of the property to be sold in at least 2 public places in the 
town and county in which the property was taken or the town and 
county in which the owner of the property resides. If the 
property does not satisfy the amount due under the warrant, the 
official may be sent to prison until discharged by law.
  (b)(1) The amount due under a warrant is a lien on the real 
property of the official from the date the distress warrant is 
issued. The lien shall be recorded in the office of the clerk 
of the appropriate district court until discharged under law.
  (2) If the personal property of the official is not enough to 
satisfy a distress warrant, the marshal shall sell real 
property of the official after advertising the property for at 
least 3 weeks in at least 3 public places in the county or 
district where the property is located. A buyer of the real 
property has valid title against all persons claiming under the 
official.
  (c) The official shall receive that part of the proceeds of a 
sale remaining after the distress warrant is satisfied and the 
reasonable costs and charges of the sale are paid.

SEC. 3543. POSTPONING A DISTRESS WARRANT PROCEEDING.

  (a) A distress warrant proceeding may be postponed for a 
reasonable time if the Secretary of the Treasury believes the 
public interest will not be harmed by the postponement.
  (b)(1) A person adversely affected by a distress warrant 
issued under section 3541 of this title may bring a civil 
action in a district court of the United States. The complaint 
shall state the kind and extent of the harm. The court may 
grant an injunction to stay any part of a distress warrant 
proceeding required by the action after the person applying for 
the injunction gives a bond in an amount the court prescribes 
for carrying out a judgment.
  (2) An injunction under this subsection does not affect a 
lien under section 3542(b)(1) of this title. The United States 
Government is not required to answer in a civil action brought 
under this subsection.
  (3) If the court dissolves the injunction on a finding that 
the civil action for the injunction was brought only for delay, 
the court may increase the interest rate imposed on amounts 
found due against the complainant to not more than 10 percent a 
year. The judge may grant or dissolve an injunction under this 
subsection either in or out of court.
  (c) A person adversely affected by a refusal to grant an 
injunction or by dissolving an injunction under subsection (b) 
of this section may petition a judge of a circuit court of 
appeals in which the district is located or the Supreme Court 
justice allotted to that circuit by giving the judge or justice 
a copy of the proceeding held before the district judge. The 
judge or justice may grant an injunction or allow an appeal if 
the judge or justice finds the case requires it.

SEC. 3544. RIGHTS AND REMEDIES OF THE UNITED STATES GOVERNMENT 
                    RESERVED.

  This subchapter does not affect a right or remedy the United 
States Government has by law to recover a tax, debt, or demand.

SEC. 3545. CIVIL ACTION TO RECOVER MONEY.

  The Attorney General shall bring a civil action to recover an 
amount due to the United States Government on settlement of the 
account of a person accountable for public money when the 
person neglects or refuses to pay the amount to the Treasury. 
Any commission of that person and interest of 6 percent a year 
from the time the money is received by the person until repaid 
to the Treasury shall be added to the amount due on the 
account. The commission is forfeited when judgment is obtained.
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
3511-3513.................................  4 C.F.R. 52                 
3511-3512.................................  4 C.F.R. 51                 
3511......................................  4 C.F.R. 75                 
3511......................................  GAO: Policies and Procedures
                                             Manual, Title 2,           
                                             (Appendices I, II, III),   
                                             see appendix III           
                                            GAO: Policies and Procedures
                                             Manual, Title 6, see       
                                             appendix III               
                                            GAO: Policies and Procedures
                                             Manual, Title 7, see       
                                             appendix III               
                                            OMB: Circulars A-50, A-123, 
                                             A-127, see appendix IV     
                                            TFM, Volume 1, Part 4,      
                                             Chapters 2000 and 2500, see
                                             appendix V                 
                                            JFMIP: Federal Financial    
                                             Management System          
                                             Requirements, see appendix 
                                             VI                         
                                            FASAB, see appendix VII     
3512......................................  OMB: Circulars A-123, A-127,
                                             see appendix IV, Bulletin  
                                             93-06                      
                                            TFM, Volume 1, Part 2,      
                                             Chapter 3300               
3512(b)...................................  GAO: Policies and Procedures
                                             Manual, Title 2 (Appendix  
                                             II), see appendix III      
                                            OMB: Circular A-50, see     
                                             appendix IV                
3512(c)...................................  GAO: Policy and Procedures  
                                             Manual, Title 2, (Appendix 
                                             I), see appendix III       
3512(d)...................................  GAO: Policy and Procedures  
                                             Manual, Title 2, (Appendix 
                                             I), see appendix III       
                                            TFM, Volume 1, Part 2,      
                                             Chapters 1000, 1500, 2000, 
                                             3000, 3200, 3900, 4200,    
                                             4300, and 4500, see        
                                             appendix V                 
                                            TFM, Volume 1, Part 3,      
                                             Chapter 2000, see appendix 
                                             V                          
                                            TFM, Volume 1, Part 4,      
                                             Chapters 2000 and 2500, see
                                             appendix V                 
                                            TFM, Volume 1, Part 6,      
                                             Chapters 4000 and 7000, see
                                             appendix V                 
3513a.....................................  TFM, Volume 1, Part 2,      
                                             Chapters 4000, 4100, and   
                                             4200, see appendix V       
3515......................................  OMB: Bulletins 93-06, 93-18,
                                             see appendix IV            
3515(d)...................................  OMB: Bulletin 94-01, see    
                                             appendix IV                
3523-3524.................................  4 C.F.R. 82                 
3521......................................  OMB: Circular A-73, see     
                                             appendix IV                
3523......................................  4 C.F.R. 52                 
                                            GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
3524......................................  OMB Circular A-73, see      
                                             appendix IV                
3526......................................  4 C.F.R. 52, 82             
3528......................................  TFM, Volume 1, Part 6,      
                                             Chapter 6000, see appendix 
                                             V                          
3529......................................  4 C.F.R. 52, 82             
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                   Subtitle III--Financial Management

          * * * * * * *

                           CHAPTER 37--CLAIMS

                         Subchapter I--General

SEC. 3701. DEFINITIONS AND APPLICATION.

  (a) In this chapter--
          (1) ``administrative offset'' means withholding money 
        payable by the United States Government to, or held by 
        the Government for, a person to satisfy a debt the 
        person owes the Government;
          (2) ``calendar quarter'' means a 3-month period 
        beginning on January 1, April 1, July 1, or October 1;
          (3) ``consumer reporting agency'' means--
                  (A) a consumer reporting agency as that term 
                is defined in section 603(f) of the Fair Credit 
                Reporting Act (15 U.S.C. 1681a(f)); or
                  (B) a person that, for money or on a 
                cooperative basis, regularly--
                          (i) gets information on consumers to 
                        give the information to a consumer 
                        reporting agency; or
                          (ii) serves as a marketing agent 
                        under an arrangement allowing a third 
                        party to get the information from a 
                        consumer reporting agency;
          (4) ``executive or legislative agency'' means a 
        department, agency, or instrumentality in the executive 
        or legislative branch of the Government;
          (5) ``military department'' means the Departments of 
        the Army, Navy, and Air Force;
          (6) ``system of records'' has the same meaning given 
        that term in section 552a(a)(5) of title 5; and
          (7) ``uniformed services'' means the Army, Navy, Air 
        Force, Marine Corps, Coast Guard, Commissioned Corps of 
        the National Oceanic and Atmospheric Administration, 
        and Commissioned Corps of the Public Health Service.
  (b) In subchapter II of this chapter, ``claim'' includes 
amounts owing on account of loans insured or guaranteed by the 
Government and other amounts due the Government.
  (c) In sections 3716 and 3717 of this title, ``person'' does 
not include an agency of the United States Government, of a 
State government, or of a unit of general local government.
  (d) Sections 3711(f) and 3716-3719 of this title do not apply 
to a claim or debt under, or to an amount payable under, the 
Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.), the Social 
Security Act (42 U.S.C. 301 et seq.), except to the extent 
provided under section 204(f) of such Act (42 U.S.C. 404(f)), 
or the tariff laws of the United States.

                                   NOTE

United States Senate as Legislative Agency; Regulations Promulgated by 
                        Secretary of the Senate

  Pub.L. 101-163, Title I, Sec. 11, Nov. 21, 1989, 103 Stat. 
1046, provided that:
  ``(a) For purposes of subchapters I and II of chapter 37 of 
title 31, United States Code [this chapter] (relating to claims 
of or against the United States Government), the United States 
Senate shall be considered to be a legislative agency (as 
defined in section 3701(a)(4) of such title), and the Secretary 
of the Senate shall be deemed to be the head of such 
legislative agency.
  ``(b) Regulations prescribed by the Secretary of the Senate 
pursuant to section 3716 of title 31, United States Code 
[section 3716 of this title], shall not become effective until 
they are approved by the Senate Committee on Rules and 
Administration.''
                              ----------                              


SEC. 3702. AUTHORITY OF THE COMPTROLLER GENERAL TO SETTLE CLAIMS.

  (a) Except as provided in this chapter or another law, the 
Comptroller General shall settle all claims of or against the 
United States Government. A claim that was not administratively 
examined before submission to the Comptroller General shall be 
examined by 2 officers or employees of the General Accounting 
Office independently of each other.
  (b)(1) A claim against the Government presented under this 
section must contain the signature and address of the claimant 
or an authorized representative. The claim must be received by 
the Comptroller General within 6 years after the claim accrues 
except--
          (A) as provided in this chapter or another law; or
          (B) a claim of a State, the District of Columbia, or 
        a territory or possession of the United States.
  (2) When the claim of a member of the armed forces accrues 
during war or within 5 years before war begins, the claim must 
be presented to the Comptroller General within 5 years after 
peace is established or within the period provided in clause 
(1) of this subsection, whichever is later.
  (3) The Comptroller General shall return a claim not received 
in the time required under this subsection with a copy of this 
subsection and no further communication is required.
  (c) One-year limit for check claims.--(1) Any claim on 
account of a Treasury check shall be barred unless it is 
presented to the agency that authorized the issuance of such 
check within 1 year after the date of issuance of the check or 
the effective date of this subsection, whichever is later.
  (2) Nothing in this subsection affects the underlying 
obligation of the United States, or any agency thereof, for 
which a Treasury check was issued.
  (d) The Comptroller General shall report to Congress on a 
claim against the Government that is timely presented under 
this section that may not be adjusted by using an existing 
appropriation, and that the Comptroller General believes 
Congress should consider for legal or equitable reasons. The 
report shall include recommendations of the Comptroller 
General.

         Subchapter II--Claims of the United States Government

SEC. 3711. COLLECTION AND COMPROMISE.

  (a) The head of an executive or legislative agency--
          (1) shall try to collect a claim of the United States 
        Government for money or property arising out of the 
        activities of, or referred to, the agency;
          (2) may compromise a claim of the Government of not 
        more than $100,000 (excluding interest) or such higher 
        amount as the Attorney General may from time to time 
        prescribe that has not been referred to another 
        executive or legislative agency for further collection 
        action; and
          (3) may suspend or end collection action on a claim 
        referred to in clause (2) of this subsection when it 
        appears that no person liable on the claim has the 
        present or prospective ability to pay a significant 
        amount of the claim or the cost of collecting the claim 
        is likely to be more than the amount recovered.
  (b) The Comptroller General has the same authority that the 
head of the agency has under subsection (a) of this section 
when the claim is referred to the Comptroller General for 
further collection action. Only the Comptroller General may 
compromise a claim arising out of an exception the Comptroller 
General makes in the account of an accountable official.
  (c)(1) The head of an executive or legislative agency may not 
act under subsection (a)(2) or (3) of this section on a claim 
that appears to be fraudulent, false, or misrepresented by a 
party with an interest in the claim, or that is based on 
conduct in violation of the antitrust laws.
  (2) The Secretary of Transportation may not compromise for 
less than $500 a penalty under section 21302 of title 49 for a 
violation of chapter 203, 205, or 207 of title 49 or a 
regulation or requirement prescribed or order issued under any 
of those chapters.
  (d) A compromise under this section is final and conclusive 
unless gotten by fraud, misrepresentation, presenting a false 
claim, or mutual mistake of fact. An accountable official is 
not liable for an amount paid or for the value of property lost 
or damaged if the amount or value is not recovered because of a 
compromise under this section.
  (e) The head of an executive or legislative agency acts 
under--
          (1) regulations prescribed by the head of the agency; 
        and
          (2) standards that the Attorney General and the 
        Comptroller General may prescribe jointly.
  (f)(1) When trying to collect a claim of the Government under 
a law except the Internal Revenue Code of 1986 (26 U.S.C. 1 et 
seq.), the head of an executive or legislative agency may 
disclose to a consumer reporting agency information from a 
system of records that an individual is responsible for a claim 
if--
          (A) notice required by section 552a(e)(4) of title 5 
        indicates that information in the system may be 
        disclosed to a consumer reporting agency;
          (B) the head of the agency has reviewed the claim and 
        decided that the claim is valid and overdue;
          (C) the head of the agency has notified the 
        individual in writing--
                  (i) that payment of the claim is overdue;
                  (ii) that, within not less than 60 days after 
                sending the notice, the head of the agency 
                intends to disclose to a consumer reporting 
                agency that the individual is responsible for 
                the claim;
                  (iii) of the specific information to be 
                disclosed to the consumer reporting agency; and
                  (iv) of the rights the individual has to a 
                complete explanation of the claim, to dispute 
                information in the records of the agency about 
                the claim, and to administrative repeal or 
                review of the claim;
          (D) the individual has not--
                  (i) repaid or agreed to repay the claim under 
                a written repayment plan that the individual 
                has signed and the head of the agency has 
                agreed to; or
                  (ii) filed for review of the claim under 
                paragraph (2) of this subsection;
          (E) the head of the agency has established procedures 
        to--
                  (i) disclose promptly, to reach consumer 
                reporting agency to which the original 
                disclosure was made, a substantial change in 
                the condition or amount of the claim;
                  (ii) verify or correct promptly information 
                about the claim on request of a consumer 
                reporting agency for verification of 
                information disclosed; and
                  (iii) get satisfactory assurances from each 
                consumer reporting agency that the agency is 
                complying with all laws of the United States 
                related to providing consumer credit 
                information; and
          (F) the information disclosed to the consumer 
        reporting agency is limited to--
                  (i) information necessary to establish the 
                identity of the individual, including name, 
                address, and taxpayer identification number;
                  (ii) the amount, status, and history of the 
                claim; and
                  (iii) the agency or program under which the 
                claim arose.
    (2) Before disclosing information to a consumer reporting 
agency under paragraph (1) of this subsection and at other 
times allowed by law, the head of an executive or legislative 
agency shall provide, on request of an individual alleged by 
the agency to be responsible for the claim, for a review of the 
obligation of the individual, including an opportunity for 
reconsideration of the initial decision on the claim.
    (3) Before disclosing information to a consumer reporting 
agency under paragraph (1) of this subsection, the head of an 
executive or legislative agency shall take reasonable action to 
locate an individual for whom the head of the agency does not 
have a current address to send the notice under paragraph 
(1)(C).

SEC. 3712. TIME LIMITATIONS FOR PRESENTING CERTAIN CLAIMS OF THE 
                    GOVERNMENT.

    (a) Claims Over Forged or Unauthorized Endorsements.--
          (1) Period for claims.--If the Secretary of the 
        Treasury determines that a Treasury check has been paid 
        over a forged or unauthorized endorsement, the 
        Secretary may reclaim the amount of such check from the 
        presenting bank or any other endorser that has breached 
        its guarantee of endorsements prior to--
                  (A) the end of the 1-year period beginning on 
                the date of payment; or
                  (B) the expiration of the 180-day period 
                beginning on the close of the period described 
                in subparagraph (A) if a timely claim is 
                received under section 3702.
          (2) Civil actions.--(A) Except as provided in 
        subparagraph (B), the United States may bring a civil 
        action to enforce the liability of an endorser, 
        transferor, depository, or fiscal agent on a forged or 
        unauthorized signature or endorsement on, or a change 
        in, a check or warrant issued by the Secretary of the 
        Treasury, the United States Postal Service, or any 
        disbursing official or agent not later than 1 year 
        after a check or warrant is presented to the drawee for 
        payment.
          (B) If the United States has given an endorser 
        written notice of a claim against the endorser within 
        the time allowed by subparagraph (A), the 1-year period 
        for bringing a civil action on that claim under 
        subparagraph (A) shall be extended by 3 years.
          (3) Effect on agency authority.--Nothing in this 
        subsection shall be construed to limit the authority of 
        any agency under subchapter II of chapter 37 of this 
        title.
    (b) Notwithstanding subsection (a) of this section, a civil 
action may be brought within 2 years after the claim is 
discovered when an endorser, transferor, depositary, or fiscal 
agent fraudulently conceals the claim from an officer or 
employee of the Government entitled to bring the civil action.
    (c) The Comptroller General shall credit the appropriate 
account of the Treasury for the amount of a check or warrant 
for which a civil action cannot be brought because notice was 
not given within the time required under subsection (a) of this 
section if the failure to give notice was not the result of 
negligence of the Secretary.
    (d) The Government waives all claims against a person 
arising from dual pay from the Government if the dual pay is 
not reported to the Comptroller General for collection within 6 
years from the last date of a period of dual pay.

SEC. 3713. PRIORITY OF GOVERNMENT CLAIMS.

    (a)(1) A claim of the United States Government shall be 
paid first when--
          (A) a person indebted to the Government is insolvent 
        and--
                  (i) the debtor without enough property to pay 
                all debts makes a voluntary assignment of 
                property;
                  (ii) property of the debtor, if absent, is 
                attached; or
                  (iii) an act of bankruptcy is committed; or
          (B) the estate of a deceased debtor, in the custody 
        of the executor or administrator, is not enough to pay 
        all debts of the debtor.
    (2) This subsection does not apply to a case under title 
11.
    (b) A representative of a person or an estate (except a 
trustee acting under title 11) paying any part of a debt of the 
person or estate before paying a claim of the Government is 
liable to the extent of the payment for unpaid claims of the 
Government.

SEC. 3714. KEEPING MONEY DUE STATES IN DEFAULT.

    The Secretary of the Treasury shall keep the necessary 
amount of money the United States Government owes a State when 
the State defaults in paying principal or interest on 
investments in stocks or bonds the State issues or guarantees 
and that the Government holds in trust. The money shall be used 
to pay the principal or interest or reimburse, with interest, 
money the Government advanced for interest due on the stocks or 
bonds.

SEC. 3715. BUYING REAL PROPERTY OF A DEBTOR.

    The head of an agency for whom a civil action is brought 
against a debtor of the United States Government may buy real 
property of the debtor at a sale on execution of the real 
property of the debtor resulting from the action. The head of 
the agency may not bid more for the property than the amount of 
the judgment for which the property is being sold, and costs. 
The marshal of the district in which the sale is held shall 
transfer the property to the Government.

SEC. 3716. ADMINISTRATIVE OFFSET.

    (a) After trying to collect a claim from a person under 
section 3711(a) of this title, the head of an executive or 
legislative agency may collect the claim by administrative 
offset. The head of the agency may collect by administrative 
offset only after giving the debtor--
          (1) written notice of the type and amount of the 
        claim, the intention of the head of the agency to 
        collect the claim by administrative offset, and an 
        explanation of the rights of the debtor under this 
        section;
          (2) an opportunity to inspect and copy the records of 
        the agency related to the claim;
          (3) an opportunity for a review within the agency of 
        the decision of the agency related to the claim; and
          (4) an opportunity to make a written agreement with 
        the head of the agency to repay the amount of the 
        claim.
    (b) Before collecting a claim by administrative offset 
under subsection (a) of this section, the head of an executive 
or legislative agency must prescribe regulations on collecting 
by administrative offset based on--
          (1) the best interests of the United States 
        Government;
          (2) the likelihood of collecting a claim by 
        administrative offset; and
          (3) for collecting a claim by administrative offset 
        after the 6-year period for bringing a civil action on 
        a claim under section 2415 of title 28 has expired, the 
        cost effectiveness of leaving a claim unresolved for 
        more than 6 years.
    (c) This section does not apply--
          (1) to a claim under this subchapter that has been 
        outstanding for more than 10 years; or
          (2) when a statute explicitly provides for or 
        prohibits using administrative offset to collect the 
        claim or type of claim involved.

SEC. 3717. INTEREST AND PENALTY ON CLAIMS.

    (a)(1) The head of an executive or legislative agency shall 
charge a minimum annual rate of interest on an outstanding debt 
on a United States Government claim owed by a person that is 
equal to the average investment rate for the Treasury tax and 
loan accounts for the 12-month period ending on September 30 of 
each year, rounded to the nearest whole percentage point. The 
Secretary of the Treasury shall publish the rate before 
November 1 of that year. The rate is effective on the first day 
of the next calendar quarter.
    (2) The Secretary may change the rate of interest for a 
calendar quarter if the average investment rate for the 12-
month period ending at the close of the prior calendar quarter, 
rounded to the nearest whole percentage point, is more or less 
than the existing published rate by 2 percentage points.
    (b) Interest under subsection (a) of this section accrues 
from the date--
          (1) on which notice is mailed after October 25, 1982, 
        if notice was first mailed before October 25, 1982; or
          (2) notice of the amount due is first mailed to the 
        debtor at the most current address of the debtor 
        available to the head of the executive or legislative 
        agency, if notice is first mailed after October 24, 
        1982.
    (c) The rate of interest charged under subsection (a) of 
this section--
          (1) is the rate in effect on the date from which 
        interest begins to accrue under subsection (b) of this 
        section; and
          (2) remains fixed at that rate for the duration of 
        the indebtedness.
    (d) Interest under subsection (a) of this section may not 
be charged if the amount due on the claim is paid within 30 
days after the date from which interest accrues under 
subsection (b) of this section. The head of an executive or 
legislative agency may extend the 30-day period.
    (e) The head of an executive or legislative agency shall 
assess on a claim owed by a person--
          (1) a charge to cover the cost of processing and 
        handling a delinquent claim; and
          (2) a penalty charge of not more than 6 percent a 
        year for failure to pay a part of a debt more than 90 
        days past due.
    (f) Interest under subsection (a) of this section does not 
accrue on a charge assessed under subsection (e) of this 
section.
    (g) This section does not apply--
          (1) if a statute, regulation required by statute, 
        loan agreement, or contract prohibits charging interest 
        or assessing charges or explicitly fixes the interest 
        or charges; and
          (2) to a claim under a contract executed before 
        October 25, 1982, that is in effect on October 25, 
        1982.
    (h) In conformity with standards prescribed jointly by the 
Attorney General and the Comptroller General, the head of an 
executive or legislative agency may prescribe regulations 
identifying circumstances appropriate to waiving collection of 
interest and charges under subsections (a) and (e) of this 
section. A waiver under the regulations is deemed to be 
compliance with this section.

SEC. 3718. CONTRACTS FOR COLLECTION SERVICES.

    (a) Under conditions the head of an executive or 
legislative agency considers appropriate, the head of the 
agency may make a contract with a person for collection 
services to recover indebtedness owed the United States 
Government. The contract shall provide that--
          (1) the head of the agency retains the authority to 
        resolve a dispute, compromise a claim, end collection 
        action, and refer a matter to the Attorney General to 
        bring a civil action; and
          (2) the person is subject to--
                  (A) section 552a of title 5, to the extent 
                provided in section 552a(m); and
                  (B) laws and regulations of the United States 
                Government and State governments related to 
                debt collection practices.
    (b)(1)(A) The Attorney General may make contracts retaining 
private counsel to furnish legal services, including 
representation in negotiation, compromise, settlement, and 
litigation, in the case of any claim of indebtedness owed the 
United States. Each such contract shall include such terms and 
conditions as the Attorney General considers necessary and 
appropriate, including a provision specifying the amount of the 
fee to be paid to the private counsel under such contract or 
the method for calculating that fee. The amount of the fee 
payable for legal services furnished under any such contract 
may not exceed the fee that counsel engaged in the private 
practice of law in the area or areas where the legal services 
are furnished typically charge clients for furnishing legal 
services in the collection of claims of indebtedness, as 
determined by the Attorney General, considering the amount, 
age, and nature of the indebtedness and whether the debtor is 
an individual or a business entity. If the Attorney General 
makes a contract for legal services to be furnished in any 
judicial district of the United States under the first sentence 
of this paragraph, the Attorney General shall use his best 
efforts to obtain, from among attorneys regularly engaged in 
the private practice of law in such district, at least four 
such contracts for legal services with private individuals or 
firms in such district. Nothing in this subparagraph shall 
relieve the Attorney General of the competition requirements 
set forth in title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 and 
following).
  (B) The Attorney General shall use his best efforts to enter 
into contracts under this paragraph with law firms owned and 
controlled by socially and economically disadvantaged 
individuals, so as to enable each agency to comply with 
paragraph (3).
  (2) The head of an executive or legislative agency may, 
subject to the approval of the Attorney General, refer to a 
private counsel retained under paragraph (1) of this subsection 
claims of indebtedness owed the United States arising out of 
activities of that agency.
  (3) Each agency shall use its best efforts to assure that not 
less than 10 percent of the amounts of all claims referred to 
private counsel by that agency under paragraph (2) are referred 
to law firms owned and controlled by socially and economically 
disadvantaged individuals. For purposes of this paragraph--
          (A) the term ``law firm owned and controlled by 
        socially and economically disadvantaged individuals'' 
        means a law firm that meets the requirements set forth 
        in clauses (i) and (ii) of section 8(d)(3)(C) of the 
        Small Business Act (15 U.S.C. 637(d)(3)(C)(i) and (ii)) 
        and regulations issued under those clauses; and
          (B) ``socially and economically disadvantaged 
        individuals'' shall be presumed to include these groups 
        and individuals described in the last paragraph of 
        section 8(d)(3)(C) of the Small Business Act.
  (4) Notwithstanding sections 516, 518(b), 519, and 547(2) of 
title 28, a private counsel retained under paragraph (1) of 
this subsection may represent the United States in litigation 
in connection with legal services furnished pursuant to the 
contract entered into with that counsel under paragraph (1) of 
this subsection.
  (5) A contract made with a private counsel under paragraph 
(1) of this subsection shall include--
          (A) a provision permitting the Attorney General to 
        terminate either the contract or the private counsel's 
        representation of the United States in particular cases 
        if the Attorney General finds that such action is for 
        the convenience of the Government;
          (B) a provision stating that the head of the 
        executive or legislative agency which refers a claim 
        under the contract retains the authority to resolve a 
        dispute regarding the claim, to compromise the claim, 
        or to terminate a collection action on the claim; and
          (C) a provision requiring the private counsel to 
        transmit monthly to the Attorney General and the head 
        of the executive or legislative agency referring a 
        claim under the contract a report on the services 
        relating to the claim rendered under the contract 
        during the month and the progress made during the month 
        in collecting the claim under the contract.
  (6) Notwithstanding the fourth sentence of section 803(6) of 
the Fair Debt Collection Practices Act (15 U.S.C. 1692a(6)), a 
private counsel performing legal services pursuant to a 
contract made under paragraph (1) of this subsection shall be 
considered to be a debt collector for the purposes of such Act.
  (7) Any counterclaim filed in any action to recover 
indebtedness owed the United States which is brought on behalf 
of the United States by private counsel retained under this 
subsection may not be asserted unless the counterclaim is 
served directly on the Attorney General or the United States 
Attorney for the judicial district in which, or embracing the 
place in which, the action is brought. Such service shall be 
made in accordance with the rules of procedure of the court in 
which the action is brought.
  (c) The Attorney General shall transmit to the Congress an 
annual report on the activities of the Department of Justice to 
recover indebtedness owed the United States which was referred 
to the Department of Justice for collection. Each such report 
shall include a list, by agency, of--
          (1) the total number and amounts of claims which were 
        referred for legal services to the Department of 
        Justice and to private counsel under subsection (b) 
        during the 1-year period covered by the report;
          (2) the total number and amount of those claims 
        referred for legal services to the Department of 
        Justice which were collected or were not collected or 
        otherwise resolved during the 1-year period covered by 
        the report; and
          (3) the total number and amount of those claims 
        referred for legal services to private counsel under 
        subsection (b)--
                  (A) which were collected or were not 
                collected or otherwise resolved during the 1-
                year period covered by the report;
                  (B) which were not collected or otherwise 
                resolved under a contract terminated by the 
                Attorney General during the 1-year period 
                covered by the report; and
                  (C) on which the Attorney General terminated 
                the private counsel's representation during the 
                1-year period covered by the report without 
                terminating the contract with the private 
                counsel under which the claims were referred.
  (d) Notwithstanding section 3302(b) of this title, a contract 
under subsection (a) or (b) of this section may provide that a 
fee a person charges to recover indebtedness owed the United 
States Government is payable from the amount recovered.
  (e) A contract under subsection (a) or (b) of this section is 
effective only to the extent and in the amount provided in an 
appropriation law. This limitation does not apply in the case 
of a contract that authorizes a person to collect a fee as 
provided in subsection (d) of this section.
  (f) This section does not apply to the collection of debts 
under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).
  (g) In order to assist Congress in determining whether use of 
private counsel is a cost-effective method of collecting 
Government debts, the Attorney General shall, following 
consultation with the General Accounting Office, maintain and 
make available to the Inspector General of the Department of 
Justice, statistical data relating to the comparative costs of 
debt collection by participating United States Attorneys' 
Offices and by private counsel.

SEC. 3719. REPORTS ON DEBT COLLECTION ACTIVITIES.

  (a) In consultation with the Secretary of the Treasury and 
the Comptroller General, the Director of the Office of 
Management and Budget shall prescribe regulations requiring the 
head of each agency with outstanding debts to prepare and 
submit to the Director and the Secretary at least once each 
year a report summarizing the status of loans and accounts 
receivable managed by the head of the agency. The report shall 
contain--
          (1) information on--
                  (A) the total amount of loans and accounts 
                receivable owed the agency and when amounts 
                owed the agency are due to be repaid;
                  (B) the total amount of receivables and 
                number of claims at least 30 days past due;
                  (C) the total amount written off as actually 
                uncollectible and the total amount allowed for 
                uncollectible loans and accounts receivable;
                  (D) the rate of interest charged for overdue 
                debts and the amount of interest charged and 
                collected on debts;
                  (E) the total number of claims and the total 
                amount collected; and
                  (F) the number and total amount of claims 
                referred to the Attorney General for settlement 
                and the number and total amount of claims the 
                Attorney General settles;
          (2) the information described in clause (1) of this 
        subsection for each program or activity the head of the 
        agency carries out; and
          (3) other information the Director considers 
        necessary to decide whether the head of the agency is 
        acting aggressively to collect the claims of the 
        agency.
  (b) The Director shall analyze the reports submitted under 
subsection (a) of this section and shall report annually to 
Congress on the management of debt collection activities by the 
head of each agency, including the information provided the 
Director under subsection (a).

SEC. 3720. COLLECTION OF PAYMENTS.

  (a) Each head of an executive agency (other than an agency 
subject to section 9 of the Act of May 18, 1933 (48 Stat. 63, 
chapter 32; 16 U.S.C. 831h)) shall, under such regulations as 
the Secretary of the Treasury shall prescribe, provide for the 
timely deposit of money by officials and agents of such agency 
in accordance with section 3302, and for the collection and 
timely deposit of sums owed to such agency by the use of such 
procedures as withdrawals and deposits by electronic transfer 
of funds, automatic withdrawals from accounts at financial 
institutions, and a system under which financial institutions 
receive and deposit, on behalf of the executive agency, 
payments transmitted to post office lockboxes. The Secretary is 
authorized to collect from any agency not complying with the 
requirements imposed pursuant to the preceding sentence a 
charge in an amount the Secretary determines to be the cost to 
the general fund caused by such noncompliance.
  (b) The head of an executive agency shall pay to the 
Secretary of the Treasury charges imposed pursuant to 
subsection (a). Payments shall be made out of amounts 
appropriated or otherwise made available to carry out the 
program to which the collections relate. The amounts of the 
charges paid under this subsection shall be deposited in the 
Cash Management Improvements Fund established by subsection 
(c).
  (c) There is established in the Treasury of the United States 
a revolving fund to be known as the ``Cash Management 
Improvements Fund''. Sums in the fund shall be available 
without fiscal year limitation for the payment of expenses 
incurred in developing the methods of collection and deposit 
described in subsection (a) of this section and the expenses 
incurred in carrying out collections and deposits using such 
methods, including the costs of personal services and the costs 
of the lease or purchase of equipment and operating facilities.

SEC. 3720A. REDUCTION OF TAX REFUND BY AMOUNT OF DEBT.

  (a) Any Federal agency that is owed a past-due legally 
enforceable debt (other than any past-due support), including 
debt administered by a third party acting as an agent for the 
Federal Government, by a named person shall, in accordance with 
regulations issued pursuant to subsections (b) and (d), notify 
the Secretary of the Treasury at least once a year of the 
amount of all such debt.
  (b) No Federal agency may take action pursuant to subsection 
(a) with respect to any debt until such agency--
          (1) notifies the person incurring such debt that such 
        agency proposes to take action pursuant to such 
        paragraph with respect to such debt;
          (2) gives such person at least 60 days to present 
        evidence that all or part of such debt is not past-due 
        or not legally enforceable;
          (3) considers any evidence presented by such person 
        and determines that an amount of such debt is past due 
        and legally enforceable;
          (4) satisfies such other conditions as the Secretary 
        may prescribe to ensure that the determination made 
        under paragraph (3) with respect to such debt is valid 
        and that the agency has made reasonable efforts 
        (determined on a government-wide basis) to obtain 
        payment of such debt; and
          (5) certifies that reasonable efforts have been made 
        by the agency (pursuant to regulations) to obtain 
        payment of such debt.
  (c) Upon receiving notice from any Federal agency that a 
named person owes to such agency a past-due legally enforceable 
debt, the Secretary of the Treasury shall determine whether any 
amounts, as refunds of Federal taxes paid, are payable to such 
person. If the Secretary of the Treasury finds that any such 
amount is payable, he shall reduce such refunds by an amount 
equal to the amount of such debt, pay the amount of such 
reduction to such agency, and notify such agency of the 
individual's home address.
  (d) The Secretary of the Treasury shall issue regulations 
prescribing the time or times at which agencies must submit 
notices of past-due legally enforceable debts, the manner in 
which such notices must be submitted, and the necessary 
information that must be contained in or accompany the notices. 
The regulations shall specify the minimum amount of debt to 
which the reduction procedure established by subsection (c) may 
be applied and the fee that an agency must pay to reimburse the 
Secretary of the Treasury for the full cost of applying such 
procedure. Any fee paid to the Secretary pursuant to the 
preceding sentence may be used to reimburse appropriations 
which bore all or part of the cost of applying such procedure.
  (e) Any Federal agency receiving notice from the Secretary of 
the Treasury that an erroneous payment has been made to such 
agency under subsection (c) shall pay promptly to the 
Secretary, in accordance with such regulations as the Secretary 
may prescribe, an amount equal to the amount of such erroneous 
payment (without regard to whether any other amounts payable to 
such agency under such subsection have been paid to such 
agency).
  (f)(1) Subsection (a) shall apply with respect to an OASDI 
overpayment made to any individual only if such individual is 
not currently entitled to monthly insurance benefits under 
title II of the Social Security Act.
  (2)(A) The requirements of subsection (b) shall not be 
treated as met in the case of the recovery of an OASDI 
overpayment from any individual under this section unless the 
notification under subsection (b)(1) describes the conditions 
under which the Commissioner of Social Security is required to 
waive recovery of an overpayment, as provided under section 
204(b) of the Social Security Act.
  (B) In any case in which an individual files for a waiver 
under section 204(b) of the Social Security Act within the 60-
day period referred to in subsection (b)(2), the Commissioner 
of Social Security shall not certify to the Secretary of the 
Treasury that the debt is valid under subsection (b)(4) before 
rendering a decision on the waiver request under such section 
204(b). In lieu of payment, pursuant to subsection (c), to the 
Commissioner of Social Security of the amount of any reduction 
under this subsection based on an OASDI overpayment, the 
Secretary of the Treasury shall deposit such amount in the 
Federal Old-Age and Survivors Insurance Trust Fund or the 
Federal Disability Insurance Trust Fund, whichever is certified 
to the Secretary of the Treasury as appropriate by the 
Commissioner of Social Security.
  (g) In the case of refunds of business associations, this 
section shall apply only to refunds payable on or after January 
1, 1995. In the case of refunds of individuals who owe debts to 
Federal agencies that have not participated in the Federal tax 
refund offset program prior to the date of enactment of this 
subsection, this section shall apply only to refunds payable on 
or after January 1, 1994.
  (h) For purposes of this section--
          (1) the term ``Federal agency'' means a department, 
        agency, or instrumentality of the United States (other 
        than an agency subject to section 9 of the Act of May 
        18, 1933 (48 Stat. 63, chapter 32; 16 U.S.C. 831h)), 
        and includes a Government corporation (as such term is 
        defined in section 103 of title 5, United States Code);
          (2) the term ``past-due support'' means any 
        delinquency subject to section 464 of the Social 
        Security Act;
          (3) the term ``OASDI overpayment'' means any 
        overpayment of benefits made to an individual under 
        title II of the Social Security Act; and
          (4) the term ``person'' means an individual; or a 
        sole proprietorship, partnership, corporation, 
        nonprofit organization, or any other form of business 
        association.

      Subchapter III--Claims Against the United States Government

SEC. 3721. CLAIMS OF PERSONNEL OF AGENCIES AND THE DISTRICT OF COLUMBIA 
                    GOVERNMENT FOR PERSONAL PROPERTY DAMAGE OR LOSS.

    (a) In this section--
          (1) ``agency'' does not include a nonappropriated 
        fund activity or a contractor with the United States 
        Government.
          (2) ``head of an agency'' means--
                  (A) for a military department, the Secretary 
                of the military department;
                  (B) for the Department of Defense (except the 
                military departments), the Secretary of 
                Defense; and
                  (C) for another agency, the head of the 
                agency.
          (3) ``settle'' means consider, determine, adjust, and 
        dispose of a claim by disallowance or by complete or 
        partial allowance.
    (b)(1) The head of an agency may settle and pay not more 
than $40,000 for a claim against the Government made by a 
member of the uniformed services under the jurisdiction of the 
agency or by an officer or employee of the agency for damage 
to, or loss of, personal property incident to service. A claim 
allowed under this subsection may be paid in money or the 
personal property replaced in kind.
    (2) The Secretary of State may waive the settlement and 
payment limitation referred to in paragraph (1) for claims for 
damage or loss by United States Government personnel under the 
jurisdiction of a chief of mission in a foreign country if such 
claims arise in circumstances where there is in effect a 
departure from the country authorized or ordered under 
circumstances described in section 5522(a) of title 5, if the 
Secretary determines that there exists exceptional 
circumstances that warrant such a waiver.
    (c) On paying a claim under this section, the Government is 
subrogated for the amount of the payment to a right or claim 
that the claimant may have against a foreign country for the 
damage or loss for which the Government made the payment.
    (d) The Mayor of the District of Columbia may settle and 
pay a claim against the District of Columbia government made by 
an officer or employee of the District of Columbia government 
to the same extent the head of an agency may settle and pay a 
claim under this section.
    (e) A claim may not be allowed under this section if the 
personal property damage or loss occurred at quarters occupied 
by the claimant in a State or the District of Columbia that 
were not assigned or provided in kind by the United States 
Government or the District of Columbia government.
    (f) A claim may be allowed under this section only if--
          (1) the claim is substantiated;
          (2) the head of the agency decides that possession of 
        the property was reasonable or useful under the 
        circumstances; and
          (3) no part of the loss was caused by any negligent 
        or wrongful act of the claimant or an agent or employee 
        of the claimant.
    (g) A claim may be allowed under this section only if it is 
presented in writing within 2 years after the claim accrues. 
However, if a claim under subsection (b) of this section 
accrues during war or an armed conflict in which an armed force 
of the United States is involved, or has accrued within 2 years 
before war or an armed conflict begins, and for cause shown, 
the claim must be presented within 2 years after the cause no 
longer exists or after the war or armed conflict ends, 
whichever is earlier. An armed conflict begins and ends as 
stated in a concurrent resolution of Congress or a decision of 
the President.
    (h) The head of the agency--
          (1) may settle and pay a claim made by the surviving 
        spouse, child, parent, or brother or sister of a dead 
        member, officer, or employee if the claim is otherwise 
        payable under this section; and
          (2) may settle and pay the claims by the survivors 
        only in the following order:
                  (A) the spouse's claim.
                  (B) a child's claim.
                  (C) a parent's claim.
                  (D) a brother's or sister's claim.
    (i) Notwithstanding a contract, the representative of a 
claimant may not receive more than 10 percent of a payment of a 
claim made under this section for services related to the 
claim. A person violating this subsection shall be fined not 
more than $1,000.
    (j) The President may prescribe policies to carry out this 
section (except subsection (b) to the extent that subsection 
(b) applies to the military departments, the Department of 
Defense, and the Coast Guard). Subject to those policies, the 
head of each agency shall prescribe regulations to carry out 
this section.
    (k) Settlement of a claim under this section is final and 
conclusive.

SEC. 3722. CLAIMS OF OFFICERS AND EMPLOYEES AT GOVERNMENT PENAL AND 
                    CORRECTIONAL INSTITUTIONS.

    (a) The Attorney General may settle and pay not more than 
$1,000 in any one case for a claim made by an officer or 
employee at a United States Government penal or correctional 
institution for damage to, or loss of, personal property 
incident to employment.
    (b) A claim may not be allowed under this section if the 
loss occurred at quarters occupied by the claimant that were 
not assigned or provided in kind by the Government.
    (c) A claim may be allowed only if--
          (1) no part of the loss was caused by any negligent 
        or wrongful act of the claimant or an agent or employee 
        of the claimant;
          (2) the Attorney General decides that possession of 
        the property was reasonable or useful under the 
        circumstances; and
          (3) it is presented in writing within one year after 
        it accrues.
  (d) A claim may be paid under this section only if the 
claimant accepts the amount of the settlement in complete 
satisfaction of the claim.
  (e) Necessary amounts are authorized to be appropriated to 
carry out this section.

SEC. 3723. SMALL CLAIMS FOR PRIVATELY OWNED PROPERTY DAMAGE OR LOSS.

  (a) The head of an agency (except a military department of 
the Department of Defense or the Coast Guard) may settle a 
claim for not more than $1,000 for damage to, or loss of, 
privately owned property that--
          (1) is caused by the negligence of an officer or 
        employee of the United States Government acting within 
        the scope of employment; and
          (2) may not be settled under chapter 171 of title 28.
  (b) A claim under this section may be allowed only if it is 
presented to the head of the agency within one year after it 
accrues.
  (c) A claim under this section may be paid as provided in 
section 1304 of this title only if the claimant accepts the 
amount of the settlement in complete satisfaction of the claim 
against the Government.

SEC. 3724. CLAIMS FOR DAMAGES CAUSED BY INVESTIGATIVE OR LAW 
                    ENFORCEMENT OFFICERS OF THE DEPARTMENT OF JUSTICE.

  (a) The Attorney General may settle, for not more than 
$50,000 in any one case, a claim for personal injury, death, or 
damage to, or loss of, privately owned property, caused by an 
investigative or law enforcement officer as defined in section 
2680(h) of title 28 who is employed by the Department of 
Justice acting within the scope of employment that may not be 
settled under chapter 171 of title 28. An officer or employee 
of the United States Government may not present a claim arising 
during the scope of employment. A claim may be allowed only if 
it is presented to the Attorney General within one year after 
it accrues.
  (b) The Attorney General shall report annually to the 
Congress on all settlements made under this section. With 
respect to each such settlement, the Attorney General shall 
include a brief statement on the type of the claim, the amount 
claimed, and the amount of the settlement.
  (c) A claim may be paid under this section only if the 
claimant accepts the amount of the settlement in complete 
satisfaction of the claim against the Government.

SEC. 3725. CLAIMS OF NON-NATIONALS FOR PERSONAL INJURY OR DEATH IN A 
                    FOREIGN COUNTRY

  (a) The Secretary of State may settle, for not more than 
$1,500 in any one case, a claim for personal injury or death of 
an individual not a national of the United States in a foreign 
country in which the United States exercises privileges of 
extraterritoriality when the injury or death is caused by an 
officer, employee, or agent of the United States Government 
(except of a military department of the Department of Defense 
or the Coast Guard). An officer or employee of the Government 
may not present a claim. A claim under this section may be 
allowed only if it is presented to the Secretary within one 
year after it accrues.
  (b) The Secretary shall certify to Congress a settlement 
under this section for payment out of an appropriation that may 
be made to pay the settlement. The Secretary shall include a 
brief statement on the type of the claim, the amount claimed, 
and the amount of the settlement.
  (c) A claim may be paid under this section only if the 
claimant accepts the amount of the settlement in complete 
satisfaction of the claim against the Government.

SEC. 3726. PAYMENT FOR TRANSPORTATION.

  (a) A carrier or freight forwarder presenting a bill for 
transporting an individual or property for the United States 
Government may be paid before the Administrator of General 
Services conducts an audit, in accordance with regulations that 
the Administrator shall prescribe. A claim under this section 
shall be allowed only if it is received by the Administrator 
not later than 3 years (excluding time of war) after the later 
of the following dates:
          (1) accrual of the claim;
          (2) payment for the transportation is made;
          (3) refund for an overpayment for the transportation 
        is made; or
          (4) a deduction under subsection (b) of this section 
        is made.
  (b) Not later than 3 years (excluding time of war) after the 
time a bill is paid, the Government may deduct from an amount 
subsequently due a carrier or freight forwarder an amount paid 
on the bill that was greater than the rate allowed under--
          (1) a lawful tariff on file with the Interstate 
        Commerce Commission, the Secretary of Transportation 
        with respect to foreign air transportation (as defined 
        in section 40102(a) of title 49), the Federal Maritime 
        Commission, or a State transportation authority; or
          (2) sections 10721-10724 of title 49 or an equivalent 
        arrangement or an exemption.
  (c) Expenses of transportation audit postpayment contracts 
and contract administration, and the expenses of all other 
transportation audit and audit-related functions conferred upon 
the Administrator of General Services, shall be financed from 
overpayments collected from carriers on transportation bills 
paid by the Government and other similar type refunds, not to 
exceed collections. Payment to any contractor for audit 
services shall not exceed 50 percent of the overpayment 
identified by contract audit.
  (d) At least annually, and as determined by the 
Administrator, after making adequate provision for expense of 
refunds to carriers, transportation audit postpayment 
contracts, contract administration, and other expenses 
authorized in subsection (c), overpayments collected by the 
General Services Administration shall be transferred to 
miscellaneous receipts of the Treasury. A report of receipts, 
disbursements, and transfers (to miscellaneous receipts) 
pursuant to this section shall be made annually in connection 
with the budget estimates to the Director of the Office of 
Management and Budget and to the Congress.
  (e) The Administrator may delegate any authority conferred by 
this section to another agency or agencies if the Administrator 
determines that such a delegation would be cost-effective or 
otherwise in the public interest.
  (f) Under regulations the head of an agency prescribes that 
conform with standards the Secretary of the Treasury and the 
Comptroller General prescribe jointly, a bill under this 
section may be paid before the transportation is completed 
notwithstanding section 3324 of this title when a carrier or 
freight forwarder issues the usual document for the 
transportation. Payment for transportation ordered but not 
provided may be recovered by deduction or other means.
  (g)(1) A carrier or freight forwarder may request the 
Comptroller General to review the action of the Administrator 
if the request is received not later than 6 months (excluding 
time of war) after the Administrator acts or within the time 
stated in subsection (a) of this section, whichever is later.
  (2) This section does not prevent the Comptroller General 
from conducting an audit under chapter 35 of this title.

SEC. 3727. ASSIGNMENTS OF CLAIMS.

  (a) In this section, ``assignment'' means--
          (1) a transfer or assignment of any part of a claim 
        against the United States Government or of an interest 
        in the claim; or
          (2) the authorization to receive payment for any part 
        of the claim.
  (b) An assignment may be made only after a claim is allowed, 
the amount of the claim is decided, and a warrant for payment 
of the claim has been issued. The assignment shall specify the 
warrant, must be made freely, and must be attested to by 2 
witnesses. The person making the assignment shall acknowledge 
it before an official who may acknowledge a deed, and the 
official shall certify the assignment. The certificate shall 
state that the official completely explained the assignment 
when it was acknowledged. An assignment under this subsection 
is valid for any purpose.
  (c) Subsection (b) of this section does not apply to an 
assignment to a financing institution of money due or to become 
due under a contract providing for payments totaling at least 
$1,000 when--
          (1) the contract does not forbid an assignment;
          (2) unless the contract expressly provides otherwise, 
        the assignment--
                  (A) is for the entire amount not already 
                paid;
                  (B) is made to only one party, except that it 
                may be made to a party as agent or trustee for 
                more than one party participating in the 
                financing; and
                  (C) may not be reassigned; and
          (3) the assignee files a written notice of the 
        assignment and a copy of the assignment with the 
        contracting official or the head of the agency, the 
        surety on a bond on the contract, and any disbursing 
        official for the contract.
  (d) During a war or national emergency proclaimed by the 
President or declared by law and ended by proclamation or law, 
a contract with the Department of Defense, the General Services 
Administration, the Department of Energy (when carrying out 
duties and powers formerly carried out by the Atomic Energy 
Commission), or other agency the President designates may 
provide, or may be changed without consideration to provide, 
that a future payment under the contract to an assignee is not 
subject to reduction or setoff. A payment subsequently due 
under the contract (even after the war or emergency is ended) 
shall be paid to the assignee without a reduction or setoff for 
liability of the assignor--
          (1) to the Government independent of the contract; or
          (2) because of renegotiation, fine, penalty (except 
        an amount that may be collected or withheld under, or 
        because the assignor does not comply with, the 
        contract), taxes, social security contributions, or 
        withholding or failing to withhold taxes or social 
        security contributions, arising from, or independent 
        of, the contract.
  (e)(1) An assignee under this section does not have to make 
restitution of, refund, or repay the amount received because of 
the liability of the assignor to the Government that arises 
from or is independent of the contract.
  (2) The Government may not collect or reclaim money paid to a 
person receiving an amount under an assignment or allotment of 
pay or allowances authorized by law when liability may exist 
because of the death of the person making the assignment or 
allotment.

SEC. 3728. SETOFF AGAINST JUDGMENT.

  (a) The Comptroller General shall withhold paying that part 
of a judgment against the United States Government presented to 
the Comptroller General that is equal to a debt the plaintiff 
owes the Government.
    (b) The Comptroller General shall--
          (1) discharge the debt if the plaintiff agrees to the 
        setoff and discharges a part of the judgment equal to 
        the debt; or
          (2)(A) withhold payment of an additional amount the 
        Comptroller General decides will cover legal costs of 
        bringing a civil action for the debt if the plaintiff 
        denies the debt or does not agree to the setoff; and
          (B) have a civil action brought if one has not 
        already been brought.
  (c) If the Government loses a civil action to recover a debt 
or recovers less than the amount the Comptroller General 
withholds under this section, the Comptroller General shall pay 
the plaintiff the balance and interest of 6 percent for the 
time the money is withheld.

SEC. 3729. FALSE CLAIMS.

  (a) Liability for Certain Acts.--Any person who--
          (1) knowingly presents, or causes to be presented, to 
        an officer or employee of the United States Government 
        or a member of the Armed Forces of the United States a 
        false or fraudulent claim for payment or approval;
          (2) knowingly makes, uses, or causes to be made or 
        used, a false record or statement to get a false or 
        fraudulent claim paid or approved by the Government;
          (3) conspires to defraud the Government by getting a 
        false or fraudulent claim allowed or paid;
          (4) has possession, custody, or control of property 
        or money used, or to be used, by the Government and, 
        intending to defraud the Government or willfully to 
        conceal the property, delivers, or causes to be 
        delivered, less property than the amount for which the 
        person receives a certificate or receipt;
          (5) authorized to make or deliver a document 
        certifying receipt of property used, or to be used, by 
        the Government and, intending to defraud the 
        Government, makes or delivers the receipt without 
        completely knowing that the information on the receipt 
        is true;
          (6) knowingly buys, or receives as a pledge of an 
        obligation or debt, public property from an officer or 
        employee of the Government, or a member of the Armed 
        Forces, who lawfully may not sell or pledge the 
        property; or
          (7) knowingly makes, uses, or causes to be made or 
        used, a false record or statement to conceal, avoid, or 
        decrease an obligation to pay or transmit money or 
        property to the Government, is liable to the United 
        States Government for a civil penalty of not less than 
        $5,000 and not more than $10,000, plus 3 times the 
        amount of damages which the Government sustains because 
        of the act of that person, except that if the court 
        finds that--
                  (A) the person committing the violation of 
                this subsection furnished officials of the 
                United States responsible for investigating 
                false claims violations with all information 
                known to such person about the violation within 
                30 days after the date on which the defendant 
                first obtained the information;
                  (B) such person fully cooperated with any 
                Government investigation of such violation; and
                  (C) at the time such person furnished the 
                United States with the information about the 
                violation, no criminal prosecution, civil 
                action, or administrative action had commenced 
                under this title with respect to such 
                violation, and the person did not have actual 
                knowledge of the existence of an investigation 
                into such violation;
the court may assess not less than 2 times the amount of 
damages which the Government sustains because of the act of the 
person. A person violating this subsection shall also be liable 
to the United States Government for the costs of a civil action 
brought to recover any such penalty or damages.
  (b) Knowing and Knowingly Defined.--For purposes of this 
section, the terms ``knowing'' and ``knowingly'' mean that a 
person, with respect to information--
          (1) has actual knowledge of the information;
          (2) acts in deliberate ignorance of the truth or 
        falsity of the information; or
          (3) acts in reckless disregard of the truth or 
        falsity of the information,
and no proof of specific intent to defraud is required.
  (c) Claim Defined.--For purposes of this section, ``claim'' 
includes any request or demand, whether under a contract or 
otherwise, for money or property which is made to a contractor, 
grantee, or other recipient if the United States Government 
provides any portion of the money or property which is 
requested or demanded, or if the Government will reimburse such 
contractor, grantee, or other recipient for any portion of the 
money or property which is requested or demanded.
  (d) Exemption From Disclosure.--Any information furnished 
pursuant to subparagraphs (A) through (C) of subsection (a) 
shall be exempt from disclosure under section 552 of title 5.
  (e) Exclusion.--This section does not apply to claims, 
records, or statements made under the Internal Revenue Code of 
1986.

SEC. 3730. CIVIL ACTIONS FOR FALSE CLAIMS.

  (a) Responsibilities of the Attorney General.--The Attorney 
General diligently shall investigate a violation under section 
3729. If the Attorney General finds that a person has violated 
or is violating section 3729, the Attorney General may bring a 
civil action under this section against the person.
  (b) Actions by Private Persons.--
          (1) A person may bring a civil action for a violation 
        of section 3729 for the person and for the United 
        States Government. The action shall be brought in the 
        name of the Government. The action may be dismissed 
        only if the court and the Attorney General give written 
        consent to the dismissal and their reasons for 
        consenting.
          (2) A copy of the complaint and written disclosure of 
        substantially all material evidence and information the 
        person possesses shall be served on the Government 
        pursuant to Rule 4(d)(4) of the Federal Rules of Civil 
        Procedure. The complaint shall be filed in camera, 
        shall remain under seal for at least 60 days, and shall 
        not be served on the defendant until the court so 
        orders. The Government may elect to intervene and 
        proceed with the action within 60 days after it 
        receives both the complaint and the material evidence 
        and information.
          (3) The Government may, for good cause shown, move 
        the court for extensions of the time during which the 
        complaint remains under seal under paragraph (2). Any 
        such motions may be supported by affidavits or other 
        submissions in camera. The defendant shall not be 
        required to respond to any complaint filed under this 
        section until 20 days after the complaint is unsealed 
        and served upon the defendant pursuant to Rule 4 of the 
        Federal Rules of Civil Procedure.
          (4) Before the expiration of the 60-day period or any 
        extensions obtained under paragraph (3), the Government 
        shall--
                  (A) proceed with the action, in which case 
                the action shall be conducted by the 
                Government; or
                  (B) notify the court that it declines to take 
                over the action, in which case the person 
                bringing the action shall have the right to 
                conduct the action.
          (5) When a person brings an action under this 
        subsection, no person other than the Government may 
        intervene or bring a related action based on the facts 
        underlying the pending action.
  (c) Rights of the Parties to Qui Tam Actions.--
          (1) If the Government proceeds with the action, it 
        shall have the primary responsibility for prosecuting 
        the action, and shall not be bound by an act of the 
        person bringing the action. Such person shall have the 
        right to continue as a party to the action, subject to 
        the limitations set forth in paragraph (2).
          (2)(A) The Government may dismiss the action 
        notwithstanding the objections of the person initiating 
        the action if the person has been notified by the 
        Government of the filing of the motion and the court 
        has provided the person with an opportunity for a 
        hearing on the motion.
          (B) The Government may settle the action with the 
        defendant notwithstanding the objections of the person 
        initiating the action if the court determines, after a 
        hearing, that the proposed settlement is fair, 
        adequate, and reasonable under all the circumstances. 
        Upon a showing of good cause, such hearing may be held 
        in camera.
          (C) Upon a showing by the Government that 
        unrestricted participation during the course of the 
        litigation by the person initiating the action would 
        interfere with or unduly delay the Government's 
        prosecution of the case, or would be repetitious, 
        irrelevant, or for purposes of harassment, the court 
        may, in its discretion, impose limitations on the 
        person's participation, such as--
                  (i) limiting the number of witnesses the 
                person may call;
                  (ii) limiting the length of the testimony of 
                such witnesses;
                  (iii) limiting the person's cross-examination 
                of witnesses; or
                  (iv) otherwise limiting the participation by 
                the person in the litigation.
          (D) Upon a showing by the defendant that unrestricted 
        participation during the course of the litigation by 
        the person initiating the action would be for purposes 
        of harassment or would cause the defendant undue burden 
        or unnecessary expense, the court may limit the 
        participation by the person in the litigation.
          (3) If the Government elects not to proceed with the 
        action, the person who initiated the action shall have 
        the right to conduct the action. If the Government so 
        requests, it shall be served with copies of all 
        pleadings filed in the action and shall be supplied 
        with copies of all deposition transcripts (at the 
        Government's expense). When a person proceeds with the 
        action, the court, without limiting the status and 
        rights of the person initiating the action, may 
        nevertheless permit the Government to intervene at a 
        later date upon a showing of good cause.
          (4) Whether or not the Government proceeds with the 
        action, upon a showing by the Government that certain 
        actions of discovery by the person initiating the 
        action would interfere with the Government's 
        investigation or prosecution of a criminal or civil 
        matter arising out of the same facts, the court may 
        stay such discovery for a period of not more than 60 
        days. Such a showing shall be conducted in camera. The 
        court may extend the 60-day period upon a further 
        showing in camera that the Government has pursued the 
        criminal or civil investigation or proceedings with 
        reasonable diligence and any proposed discovery in the 
        civil action will interfere with the ongoing criminal 
        or civil investigation or proceedings.
          (5) Notwithstanding subsection (b), the Government 
        may elect to pursue its claim through any alternate 
        remedy available to the Government, including any 
        administrative proceeding to determine a civil money 
        penalty. If any such alternate remedy is pursued in 
        another proceeding, the person initiating the action 
        shall have the same rights in such proceeding as such 
        person would have had if the action had continued under 
        this section. Any finding of fact or conclusion of law 
        made in such other proceeding that has become final 
        shall be conclusive on all parties to an action under 
        this section. For purposes of the preceding sentence, a 
        finding or conclusion is final if it has been finally 
        determined on appeal to the appropriate court of the 
        United States, if all time for filing such an appeal 
        with respect to the finding or conclusion has expired, 
        or if the finding or conclusion is not subject to 
        judicial review.
    (d) Award to Qui Tam Plaintiff.--
          (1) If the Government proceeds with an action brought 
        by a person under subsection (b), such person shall, 
        subject to the second sentence of this paragraph, 
        receive at least 15 percent but not more than 25 
        percent of the proceeds of the action or settlement of 
        the claim, depending upon the extent to which the 
        person substantially contributed to the prosecution of 
        the action. Where the action is one which the court 
        finds to be based primarily on disclosures of specific 
        information (other than information provided by the 
        person bringing the action) relating to allegations or 
        transactions in a criminal, civil, or administrative 
        hearing, in a congressional, administrative, or 
        Government Accounting Office report, hearing, audit, or 
        investigation, or from the news media, the court may 
        award such sums as it considers appropriate, but in no 
        case more than 10 percent of the proceeds, taking into 
        account the significance of the information and the 
        role of the person bringing the action in advancing the 
        case to litigation. Any payment to a person under the 
        first or second sentence of this paragraph shall be 
        made from the proceeds. Any such person shall also 
        receive an amount for reasonable expenses which the 
        court finds to have been necessarily incurred, plus 
        reasonable attorneys' fees and costs. All such 
        expenses, fees, and costs shall be awarded against the 
        defendant.
          (2) If the Government does not proceed with an action 
        under this section, the person bringing the action or 
        settling the claim shall receive an amount which the 
        court decides is reasonable for collecting the civil 
        penalty and damages. The amount shall be not less than 
        25 percent and not more than 30 percent of the proceeds 
        of the action or settlement and shall be paid out of 
        such proceeds. Such person shall also receive an amount 
        for reasonable expenses which the court finds to have 
        been necessarily incurred, plus reasonable attorneys' 
        fees and costs. All such expenses, fees, and costs 
        shall be awarded against the defendant.
          (3) Whether or not the Government proceeds with the 
        action, if the court finds that the action was brought 
        by a person who planned and initiated the violation of 
        section 3729 upon which the action was brought, then 
        the court may, to the extent the court considers 
        appropriate, reduce the share of the proceeds of the 
        action which the person would otherwise receive under 
        paragraph (1) or (2) of this subsection, taking into 
        account the role of that person in advancing the case 
        to litigation and any relevant circumstances pertaining 
        to the violation. If the person bringing the action is 
        convicted of criminal conduct arising from his or her 
        role in the violation of section 3729, that person 
        shall be dismissed from the civil action and shall not 
        receive any share of the proceeds of the action. Such 
        dismissal shall not prejudice the right of the United 
        States to continue the action, represented by the 
        Department of Justice.
          (4) If the Government does not proceed with the 
        action and the person bringing the action conducts the 
        action, the court may award to the defendant its 
        reasonable attorneys' fees and expenses if the 
        defendant prevails in the action and the court finds 
        that the claim of the person bringing the action was 
        clearly frivolous, clearly vexatious, or brought 
        primarily for purposes of harassment.
    (e) Certain Actions Barred.--
          (1) No court shall have jurisdiction over an action 
        brought by a former or present member of the armed 
        forces under subsection (b) of this section against a 
        member of the armed forces arising out of such person's 
        service in the armed forces.
          (2)(A) No court shall have jurisdiction over an 
        action brought under subsection (b) against a Member of 
        Congress, a member of the judiciary, or a senior 
        executive branch official if the action is based on 
        evidence or information known to the Government when 
        the action was brought.
          (B) For purposes of this paragraph, ``senior 
        executive branch official'' means any officer or 
        employee listed in paragraphs (1) through (8) of 
        section 101(f) of the Ethics in Government Act of 1978 
        (5 U.S.C.App.).
          (3) In no event may a person bring an action under 
        subsection (b) which is based upon allegations or 
        transactions which are the subject of a civil suit or 
        an administrative civil money penalty proceeding in 
        which the Government is already a party.
          (4)(A) No court shall have jurisdiction over an 
        action under this section based upon the public 
        disclosure of allegations or transactions in a 
        criminal, civil, or administrative hearing, in a 
        congressional, administrative, or Government Accounting 
        Office report, hearing, audit, or investigation, or 
        from the news media, unless the action is brought by 
        the Attorney General or the person bringing the action 
        is an original source of the information.
          (B) For purposes of this paragraph, ``original 
        source'' means an individual who has direct and 
        independent knowledge of the information on which the 
        allegations are based and has voluntarily provided the 
        information to the Government before filing an action 
        under this section which is based on the information.
  (f) Government not liable for certain expenses.--The 
Government is not liable for expenses which a person incurs in 
bringing an action under this section.
  (g) Fees and expenses to prevailing defendant.--In civil 
actions brought under this section by the United States, the 
provisions of section 2412(d) of title 28 shall apply.
  (h) Any employee who is discharged, demoted, suspended, 
threatened, harassed, or in any other manner discriminated 
against in the terms and conditions of employment by his or her 
employer because of lawful acts done by the employee on behalf 
of the employee or others in furtherance of an action under 
this section, including investigation for, initiation of, 
testimony for, or assistance in an action filed or to be filed 
under this section, shall be entitled to all relief necessary 
to make the employee whole. Such relief shall include 
reinstatement with the same seniority status such employee 
would have had but for the discrimination, 2 times the amount 
of back pay, interest on the back pay, and compensation for any 
special damages sustained as a result of the discrimination, 
including litigation costs and reasonable attorneys' fees. An 
employee may bring an action in the appropriate district court 
of the United States for the relief provided in this 
subsection.

SEC. 3731. FALSE CLAIMS PROCEDURE.

  (a) A subpoena requiring the attendance of a witness at a 
trial or hearing conducted under section 3730 of this title may 
be served at any place in the United States.
  (b) A civil action under section 3730 may not be brought--
          (1) more than 6 years after the date on which the 
        violation of section 3729 is committed, or
          (2) more than 3 years after the date when facts 
        material to the right of action are known or reasonably 
        should have been known by the official of the United 
        States charged with responsibility to act in the 
        circumstances, but in no event more than 10 years after 
        the date on which the violation is committed, whichever 
        occurs last.
  (c) In any action brought under section 3730, the United 
States shall be required to prove all essential elements of the 
cause of action, including damages, by a preponderance of the 
evidence.
  (d) Notwithstanding any other provision of law, the Federal 
Rules of Criminal Procedure, or the Federal Rules of Evidence, 
a final judgment rendered in favor of the United States in any 
criminal proceeding charging fraud or false statements, whether 
upon a verdict after trial or upon a plea of guilty or nolo 
contendere, shall estop the defendant from denying the 
essential elements of the offense in any action which involves 
the same transaction as in the criminal proceeding and which is 
brought under subsection (a) or (b) of section 3730.

SEC. 3732. FALSE CLAIMS JURISDICTION.

  (a) Actions Under Section 3730.--Any action under section 
3730 may be brought in any judicial district in which the 
defendant or, in the case of multiple defendants, any one 
defendant can be found, resides, transacts business, or in 
which any act proscribed by section 3729 occurred. A summons as 
required by the Federal Rules of Civil Procedure shall be 
issued by the appropriate district court and served at any 
place within or outside the United States.
  (b) Claims Under State Law.--The district courts shall have 
jurisdiction over any action brought under the laws of any 
State for the recovery of funds paid by a State or local 
government if the action arises from the same transaction or 
occurrence as an action brought under section 3730.

SEC. 3733. CIVIL INVESTIGATIVE DEMANDS.

  (a) In General.--
          (1) Issuance and service.--Whenever the Attorney 
        General has reason to believe that any person may be in 
        possession, custody, or control of any documentary 
        material or information relevant to a false claims law 
        investigation, the Attorney General may, before 
        commencing a civil proceeding under section 3730 or 
        other false claims law, issue in writing and cause to 
        be served upon such person, a civil investigative 
        demand requiring such person--
                  (A) to produce such documentary material for 
                inspection and copying,
                  (B) to answer in writing written 
                interrogatories with respect to such 
                documentary material or information,
                  (C) to give oral testimony concerning such 
                documentary material or information, or
                  (D) to furnish any combination of such 
                material, answers, or testimony.
        The Attorney General may not delegate the authority to 
        issue civil investigative demands under this 
        subsection. Whenever a civil investigative demand is an 
        express demand for any product of discovery, the 
        Attorney General, the Deputy Attorney General, or an 
        Assistant Attorney General shall cause to be served, in 
        any manner authorized by this section, a copy of such 
        demand upon the person from whom the discovery was 
        obtained and shall notify the person to whom such 
        demand is issued of the date on which such copy was 
        served.
          (2) Contents and deadlines.--
                  (A) Each civil investigative demand issued 
                under paragraph (1) shall state the nature of 
                the conduct constituting the alleged violation 
                of a false claims law which is under 
                investigation, and the applicable provision of 
                law alleged to be violated.
                  (B) If such demand is for the production of 
                documentary material, the demand shall--
                          (i) describe each class of 
                        documentary material to be produced 
                        with such definiteness and certainty as 
                        to permit such material to be fairly 
                        identified;
                          (ii) prescribe a return date for each 
                        such class which will provide a 
                        reasonable period of time within which 
                        the material so demanded may be 
                        assembled and made available for 
                        inspection and copying; and
                          (iii) identify the false claims law 
                        investigator to whom such material 
                        shall be made available.
                  (C) If such demand is for answers to written 
                interrogatories, the demand shall--
                          (i) set forth with specificity the 
                        written interrogatories to be answered;
                          (ii) prescribe dates at which time 
                        answers to written interrogatories 
                        shall be submitted; and
                          (iii) identify the false claims law 
                        investigator to whom such answers shall 
                        be submitted.
                  (D) If such demand is for the giving of oral 
                testimony, the demand shall--
                          (i) prescribe a date, time, and place 
                        at which oral testimony shall be 
                        commenced;
                          (ii) identify a false claims law 
                        investigator who shall conduct the 
                        examination and the custodian to whom 
                        the transcript of such examination 
                        shall be submitted;
                          (iii) specify that such attendance 
                        and testimony are necessary to the 
                        conduct of the investigation;
                          (iv) notify the person receiving the 
                        demand of the right to be accompanied 
                        by an attorney and any other 
                        representative; and
                          (v) describe the general purpose for 
                        which the demand is being issued and 
                        the general nature of the testimony, 
                        including the primary areas of inquiry, 
                        which will be taken pursuant to the 
                        demand.
                  (E) Any civil investigative demand issued 
                under this section which is an express demand 
                for any product of discovery shall not be 
                returned or returnable until 20 days after a 
                copy of such demand has been served upon the 
                person from whom the discovery was obtained.
                  (F) The date prescribed for the commencement 
                of oral testimony pursuant to a civil 
                investigative demand issued under this section 
                shall be a date which is not less than seven 
                days after the date on which demand is 
                received, unless the Attorney General or an 
                Assistant Attorney General designated by the 
                Attorney General determines that exceptional 
                circumstances are present which warrant the 
                commencement of such testimony within a lesser 
                period of time.
                  (G) The Attorney General shall not authorize 
                the issuance under this section of more than 
                one civil investigative demand for oral 
                testimony by the same person unless the person 
                requests otherwise or unless the Attorney 
                General, after investigation, notifies that 
                person in writing that an additional demand for 
                oral testimony is necessary. The Attorney 
                General may not, notwithstanding section 510 of 
                title 28, authorize the performance, by any 
                other officer, employee, or agency, of any 
                function vested in the Attorney General under 
                this subparagraph.
  (b) Protected Material or Information.--
          (1) In general.--A civil investigative demand issued 
        under subsection (a) may not require the production of 
        any documentary material, the submission of any answers 
        to written interrogatories, or the giving of any oral 
        testimony if such material, answers, or testimony would 
        be protected from disclosure under--
                  (A) the standards applicable to subpoenas or 
                subpoenas duces tecum issued by a court of the 
                United States to aid in a grand jury 
                investigation; or
                  (B) the standards applicable to discovery 
                requests under the Federal Rules of Civil 
                Procedure, to the extent that the application 
                of such standards to any such demand is 
                appropriate and consistent with the provisions 
                and purposes of this section.
          (2) Effect on other orders, rules, and laws.--Any 
        such demand which is an express demand for any product 
        of discovery supersedes any inconsistent order, rule, 
        or provision of law (other than this section) 
        preventing or restraining disclosure of such product of 
        discovery to any person. Disclosure of any product of 
        discovery pursuant to any such express demand does not 
        constitute a waiver of any right or privilege which the 
        person making such disclosure may be entitled to invoke 
        to resist discovery of trial preparation materials.
  (c) Service; Jurisdiction.--
          (1) By whom served.--Any civil investigative demand 
        issued under subsection (a) may be served by a false 
        claims law investigator, or by a United States marshal 
        or a deputy marshal, at any place within the 
        territorial jurisdiction of any court of the United 
        States.
          (2) Service in foreign countries.--Any such demand or 
        any petition filed under subsection (j) may be served 
        upon any person who is not found within the territorial 
        jurisdiction of any court of the United States in such 
        manner as the Federal Rules of Civil Procedure 
        prescribe for service in a foreign country. To the 
        extent that the courts of the United States can assert 
        jurisdiction over any such person consistent with due 
        process, the United States District Court for the 
        District of Columbia shall have the same jurisdiction 
        to take any action respecting compliance with the 
        section by any such person that such court would have 
        if such person were personally within the jurisdiction 
        of such court.
  (d) Service Upon Legal Entities and Natural Persons.--
          (1) Legal entities.--Service of any civil 
        investigative demand issued under subsection (a) or of 
        any petition filed under subsection (j) may be made 
        upon a partnership, corporation, association, or other 
        legal entity by--
                  (A) delivering an executed copy of such 
                demand or petition to any partner, executive 
                officer, managing agent, or general agent of 
                the partnership, corporation, association, or 
                entity, or to any agent authorized by 
                appointment or by law to receive service of 
                process on behalf of such partnership, 
                corporation, association, or entity;
                  (B) delivering an executed copy of such 
                demand or petition to the principal office or 
                place of business of the partnership, 
                corporation, association, or entity; or
                  (C) depositing an executed copy of such 
                demand or petition in the United States mails 
                by registered or certified mail, with a return 
                receipt requested, addressed to such 
                partnership, corporation, association, or 
                entity at its principal office or place of 
                business.
          (2) Natural persons.--Service of any such demand or 
        petition may be made upon any natural person by--
                  (A) delivering an executed copy of such 
                demand or petition to the person; or
                  (B) depositing an executed copy of such 
                demand or petition in the United States mails 
                by registered or certified mail, with a return 
                receipt requested, addressed to the person at 
                the person's residence or principal office or 
                place of business.
  (e) Proof of Service.--A verified return by the individual 
serving any civil investigative demand issued under subsection 
(a) or any petition filed under subsection (j) setting forth 
the manner of such service shall be proof of such service. In 
the case of service by registered or certified mail, such 
return shall be accompanied by the return post office receipt 
of delivery of such demand.
  (f) Documentary Material.--
          (1) Sworn certificates.--The production of 
        documentary material in response to a civil 
        investigative demand served under this section shall be 
        made under a sworn certificate, in such form as the 
        demand designates, by--
                  (A) in the case of a natural person, the 
                person to whom the demand is directed, or
                  (B) in the case of a person other than a 
                natural person, a person having knowledge of 
                the facts and circumstances relating to such 
                production and authorized to act on behalf of 
                such person.
        The certificate shall state that all of the documentary 
        material required by the demand and in the possession, 
        custody, or control of the person to whom the demand is 
        directed has been produced and made available to the 
        false claims law investigator identified in the demand.
          (2) Production of materials.--Any person upon whom 
        any civil investigative demand for the production of 
        documentary material has been served under this section 
        shall make such material available for inspection and 
        copying to the false claims law investigator identified 
        in such demand at the principal place of business of 
        such person, or at such other place as the false claims 
        law investigator and the person thereafter may agree 
        and prescribe in writing, or as the court may direct 
        under subsection (j)(1). Such material shall be made so 
        available on the return date specified in such demand, 
        or on such later date as the false claims law 
        investigator may prescribe in writing. Such person may, 
        upon written agreement between the person and the false 
        claims law investigator, substitute copies for 
        originals of all or any part of such material.
  (g) Interrogatories.--Each interrogatory in a civil 
investigative demand served under this section shall be 
answered separately and fully in writing under oath and shall 
be submitted under a sworn certificate, in such form as the 
demand designates, by--
          (1) in the case of a natural person, the person to 
        whom the demand is directed, or
          (2) in the case of a person other than a natural 
        person, the person or persons responsible for answering 
        each interrogatory. If any interrogatory is objected 
        to, the reasons for the objection shall be stated in 
        the certificate instead of an answer. The certificate 
        shall state that all information required by the demand 
        and in the possession, custody, control, or knowledge 
        of the person to whom the demand is directed has been 
        submitted. To the extent that any information is not 
        furnished, the information shall be identified and 
        reasons set forth with particularity regarding the 
        reasons why the information was not furnished.
  (h) Oral Examinations.--
          (1) Procedures.--The examination of any person 
        pursuant to a civil investigative demand for oral 
        testimony served under this section shall be taken 
        before an officer authorized to administer oaths and 
        affirmations by the laws of the United States or of the 
        place where the examination is held. The officer before 
        whom the testimony is to be taken shall put the witness 
        on oath or affirmation and shall, personally or by 
        someone acting under the direction of the officer and 
        in the officer's presence, record the testimony of the 
        witness. The testimony shall be taken stenographically 
        and shall be transcribed. When the testimony is fully 
        transcribed, the officer before whom the testimony is 
        taken shall promptly transmit a copy of the transcript 
        of the testimony to the custodian. This subsection 
        shall not preclude the taking of testimony by any means 
        authorized by, and in a manner consistent with, the 
        Federal Rules of Civil Procedure.
          (2) Persons present.--The false claims law 
        investigator conducting the examination shall exclude 
        from the place where the examination is held all 
        persons except the person giving the testimony, the 
        attorney for and any other representative of the person 
        giving the testimony, the attorney for the Government, 
        any person who may be agreed upon by the attorney for 
        the Government and the person giving the testimony, the 
        officer before whom the testimony is to be taken, and 
        any stenographer taking such testimony.
          (3) Where testimony taken.--The oral testimony of any 
        person taken pursuant to a civil investigative demand 
        served under this section shall be taken in the 
        judicial district of the United States within which 
        such person resides, is found, or transacts business, 
        or in such other place as may be agreed upon by the 
        false claims law investigator conducting the 
        examination and such person.
          (4) Transcript of testimony.--When the testimony is 
        fully transcribed, the false claims law investigator or 
        the officer before whom the testimony is taken shall 
        afford the witness, who may be accompanied by counsel, 
        a reasonable opportunity to examine and read the 
        transcript, unless such examination and reading are 
        waived by the witness. Any changes in form or substance 
        which the witness desires to make shall be entered and 
        identified upon the transcript by the officer or the 
        false claims law investigator, with a statement of the 
        reasons given by the witness for making such changes. 
        The transcript shall then be signed by the witness, 
        unless the witness in writing waives the signing, is 
        ill, cannot be found, or refuses to sign. If the 
        transcript is not signed by the witness within 30 days 
        after being afforded a reasonable opportunity to 
        examine it, the officer or the false claims law 
        investigator shall sign it and state on the record the 
        fact of the waiver, illness, absence of the witness, or 
        the refusal to sign, together with the reasons, if any, 
        given therefor.
          (5) Certification and delivery to custodian.--The 
        officer before whom the testimony is taken shall 
        certify on the transcript that the witness was sworn by 
        the officer and that the transcript is a true record of 
        the testimony given by the witness, and the officer or 
        false claims law investigator shall promptly deliver 
        the transcript, or send the transcript by registered or 
        certified mail, to the custodian.
          (6) Furnishing or inspection of transcript by 
        witness.--Upon payment of reasonable charges therefor, 
        the false claims law investigator shall furnish a copy 
        of the transcript to the witness only, except that the 
        Attorney General, the Deputy Attorney General, or an 
        Assistant Attorney General may, for good cause, limit 
        such witness to inspection of the official transcript 
        of the witness' testimony.
          (7) Conduct of oral testimony.--
                  (A) Any person compelled to appear for oral 
                testimony under a civil investigative demand 
                issued under subsection (a) may be accompanied, 
                represented, and advised by counsel. Counsel 
                may advise such person, in confidence, with 
                respect to any question asked of such person. 
                Such person or counsel may object on the record 
                to any question, in whole or in part, and shall 
                briefly state for the record the reason for the 
                objection. An objection may be made, received, 
                and entered upon the record when it is claimed 
                that such person is entitled to refuse to 
                answer the question on the grounds of any 
                constitutional or other legal right or 
                privilege, including the privilege against 
                self-incrimination. Such person may not 
                otherwise object to or refuse to answer any 
                question, and may not directly or through 
                counsel otherwise interrupt the oral 
                examination. If such person refuses to answer 
                any question, a petition may be filed in the 
                district court of the United States under 
                subsection (j)(1) for an order compelling such 
                person to answer such question.
                  (B) If such person refuses to answer any 
                question on the grounds of the privilege 
                against self-incrimination, the testimony of 
                such person may be compelled in accordance with 
                the provisions of part V of title 18.
          (8) Witness fees and allowances.--Any person 
        appearing for oral testimony under a civil 
        investigative demand issued under subsection (a) shall 
        be entitled to the same fees and allowances which are 
        paid to witnesses in the district courts of the United 
        States.
  (i) Custodians of Documents, Answers, and Transcripts.--
          (1) Designation.--The Attorney General shall 
        designate a false claims law investigator to serve as 
        custodian of documentary material, answers to 
        interrogatories, and transcripts of oral testimony 
        received under this section, and shall designate such 
        additional false claims law investigators as the 
        Attorney General determines from time to time to be 
        necessary to serve as deputies to the custodian.
          (2) Responsibility for materials; disclosure.--
                  (A) A false claims law investigator who 
                receives any documentary material, answers to 
                interrogatories, or transcripts of oral 
                testimony under this section shall transmit 
                them to the custodian. The custodian shall take 
                physical possession of such material, answers, 
                or transcripts and shall be responsible for the 
                use made of them and for the return of 
                documentary material under paragraph (4).
                  (B) The custodian may cause the preparation 
                of such copies of such documentary material, 
                answers to interrogatories, or transcripts of 
                oral testimony as may be required for official 
                use by any false claims law investigator, or 
                other officer or employee of the Department of 
                Justice, who is authorized for such use under 
                regulations which the Attorney General shall 
                issue. Such material, answers, and transcripts 
                may be used by any such authorized false claims 
                law investigator or other officer or employee 
                in connection with the taking of oral testimony 
                under this section.
                  (C) Except as otherwise provided in this 
                subsection, no documentary material, answers to 
                interrogatories, or transcripts of oral 
                testimony, or copies thereof, while in the 
                possession of the custodian, shall be available 
                for examination by any individual other than a 
                false claims law investigator or other officer 
                or employee of the Department of Justice 
                authorized under subparagraph (B). The 
                prohibition in the preceding sentence on the 
                availability of material, answers, or 
                transcripts shall not apply if consent is given 
                by the person who produced such material, 
                answers, or transcripts, or, in the case of any 
                product of discovery produced pursuant to an 
                express demand for such material, consent is 
                given by the person from whom the discovery was 
                obtained. Nothing in this subparagraph is 
                intended to prevent disclosure to the Congress, 
                including any committee or subcommittee of the 
                Congress, or to any other agency of the United 
                States for use by such agency in furtherance of 
                its statutory responsibilities. Disclosure of 
                information to any such other agency shall be 
                allowed only upon application, made by the 
                Attorney General to a United States district 
                court, showing substantial need for the use of 
                the information by such agency in furtherance 
                of its statutory responsibilities.
                  (D) While in the possession of the custodian 
                and under such reasonable terms and conditions 
                as the Attorney General shall prescribe--
                          (i) documentary material and answers 
                        to interrogatories shall be available 
                        for examination by the person who 
                        produced such material or answers, or 
                        by a representative of that person 
                        authorized by that person to examine 
                        such material and answers; and
                          (ii) transcripts of oral testimony 
                        shall be available for examination by 
                        the person who produced such testimony, 
                        or by a representative of that person 
                        authorized by that person to examine 
                        such transcripts.
          (3) Use of material, answers, or transcripts in other 
        proceedings.--Whenever any attorney of the Department 
        of Justice has been designated to appear before any 
        court, grand jury, or Federal agency in any case or 
        proceeding, the custodian of any documentary material, 
        answers to interrogatories, or transcripts of oral 
        testimony received under this section may deliver to 
        such attorney such material, answers, or transcripts 
        for official use in connection with any such case or 
        proceeding as such attorney determines to be required. 
        Upon the completion of any such case or proceeding, 
        such attorney shall return to the custodian any such 
        material, answers, or transcripts so delivered which 
        have not passed into the control of such court, grand 
        jury, or agency through introduction into the record of 
        such case or proceeding.
          (4) Conditions for return of material.--If any 
        documentary material has been produced by any person in 
        the course of any false claims law investigation 
        pursuant to a civil investigative demand under this 
        section, and--
                  (A) any case or proceeding before the court 
                or grand jury arising out of such 
                investigation, or any proceeding before any 
                Federal agency involving such material, has 
                been completed, or
                  (B) no case or proceeding in which such 
                material may be used has been commenced within 
                a reasonable time after completion of the 
                examination and analysis of all documentary 
                material and other information assembled in the 
                course of such investigation the custodian 
                shall, upon written request of the person who 
                produced such material, return to such person 
                any such material (other than copies furnished 
                to the false claims law investigator under 
                subsection (f)(2) or made for the Department of 
                Justice under paragraph (2)(B) which has not 
                passed into the control of any court, grand 
                jury, or agency through introduction into the 
                record of such case or proceeding.
          (5) Appointment of successor custodians.--In the 
        event of the death, disability, or separation from 
        service in the Department of Justice of the custodian 
        of any documentary material, answers to 
        interrogatories, or transcripts of oral testimony 
        produced pursuant to a civil investigative demand under 
        this section, or in the event of the official relief of 
        such custodian from responsibility for the custody and 
        control of such material, answers, or transcripts, the 
        Attorney General shall promptly--
                  (A) designate another false claims law 
                investigator to serve as custodian of such 
                material, answers, or transcripts, and
                  (B) transmit in writing to the person who 
                produced such material, answers, or testimony 
                notice of the identity and address of the 
                successor so designated.
        Any person who is designated to be a successor under 
        this paragraph shall have, with regard to such 
        material, answers, or transcripts, the same duties and 
        responsibilities as were imposed by this section upon 
        that person's predecessor in office, except that the 
        successor shall not be held responsible for any default 
        or dereliction which occurred before that designation.
  (j) Judicial Proceedings.--
          (1) Petition for enforcement.--Whenever any person 
        fails to comply with any civil investigative demand 
        issued under subsection (a), or whenever satisfactory 
        copying or reproduction of any material requested in 
        such demand cannot be done and such person refuses to 
        surrender such material, the Attorney General may file, 
        in the district court of the United States for any 
        judicial district in which such person resides, is 
        found, or transacts business, and serve upon such 
        person a petition for an order of such court for the 
        enforcement of the civil investigative demand.
          (2) Petition to modify or set aside demand.--
                  (A) Any person who has received a civil 
                investigative demand issued under subsection 
                (a) may file, in the district court of the 
                United States for the judicial district within 
                which such person resides, is found, or 
                transacts business, and serve upon the false 
                claims law investigator identified in such 
                demand a petition for an order of the court to 
                modify or set aside such demand. In the case of 
                a petition addressed to an express demand for 
                any product of discovery, a petition to modify 
                or set aside such demand may be brought only in 
                the district court of the United States for the 
                judicial district in which the proceeding in 
                which such discovery was obtained is or was 
                last pending. Any petition under this 
                subparagraph must be filed--
                          (i) within 20 days after the date of 
                        service of the civil investigative 
                        demand, or at any time before the 
                        return date specified in the demand, 
                        whichever date is earlier, or
                          (ii) within such longer period as may 
                        be prescribed in writing by any false 
                        claims law investigator identified in 
                        the demand.
                  (B) The petition shall specify each ground 
                upon which the petitioner relies in seeking 
                relief under subparagraph (A), and may be based 
                upon any failure of the demand to comply with 
                the provisions of this section or upon any 
                constitutional or other legal right or 
                privilege of such person. During the pendency 
                of the petition in the court, the court may 
                stay, as it deems proper, the running of the 
                time allowed for compliance with the demand, in 
                whole or in part, except that the person filing 
                the petition shall comply with any portions of 
                the demand not sought to be modified or set 
                aside.
          (3) Petition to modify or set aside demand for 
        product of discovery.--
                  (A) In the case of any civil investigative 
                demand issued under subsection (a) which is an 
                express demand for any product of discovery, 
                the person from whom such discovery was 
                obtained may file, in the district court of the 
                United States for the judicial district in 
                which the proceeding in which such discovery 
                was obtained is or was last pending, and serve 
                upon any false claims law investigator 
                identified in the demand and upon the recipient 
                of the demand, a petition for an order of such 
                court to modify or set aside those portions of 
                the demand requiring production of any such 
                product of discovery. Any petition under this 
                subparagraph must be filed--
                          (i) within 20 days after the date of 
                        service of the civil investigative 
                        demand, or at any time before the 
                        return date specified in the demand, 
                        whichever date is earlier, or
                          (ii) within such longer period as may 
                        be prescribed in writing by any false 
                        claims law investigator identified in 
                        the demand.
                  (B) The petition shall specify each ground 
                upon which the petitioner relies in seeking 
                relief under subparagraph (A), and may be based 
                upon any failure of the portions of the demand 
                from which relief is sought to comply with the 
                provisions of this section, or upon any 
                constitutional or other legal right or 
                privilege of the petitioner. During the 
                pendency of the petition, the court may stay, 
                as it deems proper, compliance with the demand 
                and the running of the time allowed for 
                compliance with the demand.
          (4) Petition to require performance by custodian of 
        duties.--At any time during which any custodian is in 
        custody or control of any documentary material or 
        answers to interrogatories produced, or transcripts of 
        oral testimony given, by any person in compliance with 
        any civil investigative demand issued under subsection 
        (a), such person, and in the case of an express demand 
        for any product of discovery, the person from whom such 
        discovery was obtained, may file, in the district court 
        of the United States for the judicial district within 
        which the office of such custodian is situated, and 
        serve upon such custodian, a petition for an order of 
        such court to require the performance by the custodian 
        of any duty imposed upon the custodian by this section.
          (5) Jurisdiction.--Whenever any petition is filed in 
        any district court of the United States under this 
        subsection, such court shall have jurisdiction to hear 
        and determine the matter so presented, and to enter 
        such order or orders as may be required to carry out 
        the provisions of this section. Any final order so 
        entered shall be subject to appeal under section 1291 
        of title 28. Any disobedience of any final order 
        entered under this section by any court shall be 
        punished as a contempt of the court.
          (6) Applicability of federal rules of civil 
        procedure.--The Federal Rules of Civil Procedure shall 
        apply to any petition under this subsection, to the 
        extent that such rules are not inconsistent with the 
        provisions of this section.
  (k) Disclosure Exemption.--Any documentary material, answers 
to written interrogatories, or oral testimony provided under 
any civil investigative demand issued under subsection (a) 
shall be exempt from disclosure under section 552 of title 5.
  (l) Definitions.--For purposes of this section--
          (1) the term ``false claims law'' means--
                  (A) this section and sections 3729 through 
                3732; and
                  (B) any Act of Congress enacted after the 
                date of the enactment of this section which 
                prohibits, or makes available to the United 
                States in any court of the United States any 
                civil remedy with respect to, any false claim 
                against, bribery of, or corruption of any 
                officer or employee of the United States;
          (2) the term ``false claims law investigation'' means 
        any inquiry conducted by any false claims law 
        investigator for the purpose of ascertaining whether 
        any person is or has been engaged in any violation of a 
        false claims law;
          (3) the term ``false claims law investigator'' means 
        any attorney or investigator employed by the Department 
        of Justice who is charged with the duty of enforcing or 
        carrying into effect any false claims law, or any 
        officer or employee of the United States acting under 
        the direction and supervision of such attorney or 
        investigator in connection with a false claims law 
        investigation;
          (4) the term ``person'' means any natural person, 
        partnership, corporation, association, or other legal 
        entity, including any State or political subdivision of 
        a State;
          (5) the term ``documentary material'' includes the 
        original or any copy of any book, record, report, 
        memorandum, paper, communication, tabulation, chart, or 
        other document, or data compilations stored in or 
        accessible through computer or other information 
        retrieval systems, together with instructions and all 
        other materials necessary to use or interpret such data 
        compilations, and any product of discovery;
          (6) the term ``custodian'' means the custodian, or 
        any deputy custodian, designated by the Attorney 
        General under subsection (i)(1); and
          (7) the term ``product of discovery'' includes--
                  (A) the original or duplicate of any 
                deposition, interrogatory, document, thing, 
                result of the inspection of land or other 
                property, examination, or admission, which is 
                obtained by any method of discovery in any 
                judicial or administrative proceeding of an 
                adversarial nature;
                  (B) any digest, analysis, selection, 
                compilation, or derivation of any item listed 
                in subparagraph (A); and
                  (C) any index or other manner of access to 
                any item listed in subparagraph (A).
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
3701 et seq...............................  34 C.F.R. 198, 204, 296; 44 
                                             C.F.R. 11                  
3701-3731.................................  45 C.F.R. 30                
3701-3720A................................  49 C.F.R. 89                
3701-3719.................................  10 C.F.R. 15, 1015; 12      
                                             C.F.R. 608, 1408; 22 C.F.R.
                                             34, 309; 29 C.F.R. 1450; 41
                                             C.F.R. 105-55              
3701......................................  7 C.F.R. 3, 792, 17 C.F.R.  
                                             204; 22 C.F.R. 512; 29     
                                             C.F.R. 2609; 31 C.F.R. 5,  
                                             390, 391; 32 C.F.R. 842; 38
                                             C.F.R. 1; 47 C.F.R. 1; 49  
                                             C.F.R. 1018                
3702......................................  4 C.F.R. 30, 31, 35, 36     
3710......................................  32 C.F.R. 518               
3711 et seq...............................  4 C.F.R. 102; 22 C.F.R. 512;
                                             29 C.F.R. 20; 40 C.F.R. 13;
                                             44 C.F.R. 11; 47 C.F.R. 1; 
                                             49 C.F.R. 1018             
3711-3719.................................  38 C.F.R. 1                 
3711......................................  4 C.F.R. 101, 103-105; 7    
                                             C.F.R. 3, 1956, 3711; 10   
                                             C.F.R. 16; 17 C.F.R. 204;  
                                             22 C.F.R. 1506; 24 C.F.R.  
                                             17; 31 C.F.R. 5, 240, 390, 
                                             391; 34 C.F.R. 30, 31; 42  
                                             C.F.R. 405, 408; 45 C.F.R. 
                                             31, 708, 1177; 49 C.F.R. 1 
                                            OMB: Circular 50, see       
                                             appendix IV                
3713......................................  19 C.F.R. 141               
3716 et seq...............................  30 C.F.R. 207, 210, 230     
3716-3719.................................  7 C.F.R. 3, 792; 45 C.F.R.  
                                             1177                       
3716-3718.................................  10 C.F.R. 16; 24 C.F.R. 17  
3716-3717.................................  31 C.F.R. 240               
3716......................................  15 C.F.R. 21; 17 C.F.R. 204;
                                             20 C.F.R. 367; 24 C.F.R.   
                                             17; 29 C.F.R. 2609; 30     
                                             C.F.R. 216, 218; 31 C.F.R. 
                                             5, 390; 34 C.F.R. 30-32; 45
                                             C.F.R. 31, 608; 49 C.F.R.  
                                             1017                       
                                            OMB: Circular 50, see       
                                             appendix IV                
3717-3718.................................  34 C.F.R. 30                
3717......................................  12 C.F.R. 701; 15 C.F.R. 4, 
                                             60; 24 C.F.R. 17; 28 C.F.R.
                                             16, 505; 31 C.F.R. 391     
                                            OMB: Circular 50, see       
                                             appendix IV                
3718......................................  17 C.F.R. 204; 24 C.F.R. 17;
                                             28 C.F.R. 11; 45 C.F.R. 31,
                                             608                        
3719......................................  OMB: Circular A-50, appendix
                                             IV                         
3720......................................  31 C.F.R. 5, 206            
                                            OMB: Circular A-129, see    
                                             appendix IV                
                                            TFM, Volume 1, Part 6,      
                                             Chapter 8000, see appendix 
                                             V                          
3720A.....................................  5 C.F.R. 835; 7 C.F.R. 3,   
                                             1951; 10 C.F.R. 1018; 13   
                                             C.F.R. 140; 15 C.F.R. 19;  
                                             17 C.F.R. 204; 20 C.F.R.   
                                             366; 22 C.F.R. 139, 309; 24
                                             C.F.R. 17; 26 C.F.R. 301;  
                                             28 C.F.R. 11; 9 C.F.R.     
                                             1650, 2609; 30 C.F.R. 216, 
                                             218, 230; 1 C.F.R. 5; 34   
                                             C.F.R. 30; 40 C.F.R. 13; 41
                                             C.F.R. 105-57; 45 C.F.R.   
                                             31, 608                    
                                            TFM, Volume 1, Part 5,      
                                             Chapters 4600 and 4700, see
                                             appendix V                 
3721......................................  14 C.F.R. 1261; 24 C.F.R.   
                                             17; 31 C.F.R. 4; 32 C.F.R. 
                                             842; 38 C.F.R. 14; 40      
                                             C.F.R. 14; 44 C.F.R. 11; 46
                                             C.F.R. 501                 
3726......................................  41 C.F.R. 101-41            
3728......................................  7 C.F.R. 3, 792, OMB:       
                                             Circular A-50, see appendix
                                             IV                         
3729-3731.................................  38 C.F.R. 21                
3729......................................  32 C.F.R. 516               
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                   Subtitle III--Financial Management

          * * * * * * *

                       CHAPTER 39--PROMPT PAYMENT

SEC. 3901. DEFINITIONS AND APPLICATION.

  (a) In this chapter--
          (1) ``agency'' has the same meaning given that term 
        in section 551(1) of title 5 and includes an entity 
        being operated, and the head of the agency identifies 
        the entity as being operated, only as an 
        instrumentality of the agency to carry out a program of 
        the agency.
          (2) ``business concern'' means--
                  (A) a person carrying on a trade or business; 
                and
                  (B) a nonprofit entity operating as a 
                contractor.
          (3) ``proper invoice'' is an invoice containing or 
        accompanied by substantiating documentation the 
        Director of the Office of Management and Budget may 
        require by regulation and the head of the appropriate 
        agency may require by regulation or contract.
          (4) for the purposes of determining a payment due 
        date and the date upon which any late payment interest 
        penalty shall begin to accrue, the head of the agency 
        is deemed to receive an invoice--
                  (A) on the later of--
                          (i) the date on which the place or 
                        person designated by the agency to 
                        first receive such invoice actually 
                        receives a proper invoice; or
                          (ii) on the 7th day after the date on 
                        which, in accordance with the terms and 
                        conditions of the contract, the 
                        property is actually delivered or 
                        performance of the services is actually 
                        completed, as the case may be, unless--
                                  (I) the agency has actually 
                                accepted such property or 
                                services before such 7th day; 
                                or
                                  (II) the contract (except in 
                                the case of a contract for the 
                                procurement of a brand-name 
                                commercial item for authorized 
                                resale) specifies a longer 
                                acceptance period, as 
                                determined by the contracting 
                                officer to be required to 
                                afford the agency a practicable 
                                opportunity to inspect and test 
                                the property furnished or 
                                evaluate the services 
                                performed; or
                  (B) on the date of the invoice, if the agency 
                has failed to annotate the invoice with the 
                date of receipt at the time of actual receipt 
                by the place or person designated by the agency 
                to first receive such invoice.
          (5) a payment is deemed to be made on the date a 
        check for payment is dated or an electronic fund 
        transfer is made.
          (6) a contract to rent property is deemed to be a 
        contract to acquire the property.
  (b) This chapter applies to the Tennessee Valley Authority. 
However, regulations prescribed under this chapter do not apply 
to the Authority, and the Authority alone is responsible for 
carrying out this chapter as it applies to contracts of the 
Authority.
  (c) This chapter, except section 3906 of this title, applies 
to the United States Postal Service. However, the Postmaster 
General shall be responsible for issuing the implementing 
procurement regulations, solicitation provisions, and contract 
clauses for the United States Postal Service.

SEC. 3902. INTEREST PENALTIES.

  (a) Under regulations prescribed under section 3903 of this 
title, the head of an agency acquiring property or service from 
a business concern, who does not pay the concern for each 
complete delivered item of property or service by the required 
payment date, shall pay an interest penalty to the concern on 
the amount of the payment due. The interest shall be computed 
at the rate of interest established by the Secretary of the 
Treasury, and published in the Federal Register, for interest 
payments under section 12 of the Contract Disputes Act of 1978 
(41 U.S.C. 611), which is in effect at the time the agency 
accrues the obligation to pay a late payment interest penalty.
  (b) Except as provided in section 3906 of this title, the 
interest penalty shall be paid for the period beginning on the 
day after the required payment date and ending on the date on 
which payment is made.
  (c)(1) A business concern shall be entitled to an interest 
penalty of $1.00 or more which is owed such business concern 
under this section, and such penalty shall be paid without 
regard to whether the business concern has requested payment of 
such penalty.
  (2) Each payment subject to this chapter for which a late 
payment interest penalty is required to be paid shall be 
accompanied by a notice stating the amount of the interest 
penalty included in such payment and the rate by which, and 
period for which, such penalty was computed.
  (3) If a business concern--
          (A) is owed an interest penalty by an agency;
          (B) is not paid the interest penalty in a payment 
        made to the business concern by the agency on or after 
        the date on which the interest penalty becomes due;
          (C) is not paid the interest penalty by the agency 
        within 10 days after the date on which such payment is 
        made; and
          (D) makes a written demand, not later than 40 days 
        after the date on which such payment is made, that the 
        agency pay such a penalty,
such business concern shall be entitled to an amount equal to 
the sum of the late payment interest penalty to which the 
contractor is entitled and an additional penalty equal to a 
percentage of such late payment interest penalty specified by 
regulation by the Director of the Office of Management and 
Budget, subject to such maximum as may be specified in such 
regulations.
  (d) The temporary unavailability of funds to make a timely 
payment due for property or services does not relieve the head 
of an agency from the obligation to pay interest penalties 
under this section.
  (e) An amount of an interest penalty unpaid after any 30-day 
period shall be added to the principal amount of the debt, and 
a penalty accrues thereafter on the added amount.
  (f) This section does not authorize the appropriation of 
additional amounts to pay an interest penalty. The head of an 
agency shall pay a penalty under this section out of amounts 
made available to carry out the program for which the penalty 
is incurred.
  (g) A recipient of a grant from the head of an agency may 
provide in a contract for the acquisition of property or 
service from a business concern that, consistent with the usual 
business practices of the recipient and applicable State and 
local law, the recipient will pay an interest penalty on 
amounts overdue under the contract under conditions agreed to 
by the recipient and the concern. The recipient may not pay the 
penalty from amounts received from an agency. Amounts expended 
for the penalty may not be counted toward a matching 
requirement applicable to the grant. An obligation to pay the 
penalty is not an obligation of the United States Government.
  (h)(1) This section shall apply to contracts for the 
procurement of property or services entered into pursuant to 
section 4(h) of the Act of June 29, 1948 (15 U.S.C. 714b(h)).
  (2)(A) In the case of a payment to which producers on a farm 
are entitled under the terms of an agreement entered into under 
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), an 
interest penalty shall be paid to the producers if the payment 
has not been made by the required payment or loan closing date. 
The interest penalty shall be paid--
          (i) on the amount of payment or loan due; and
          (ii) for the period beginning on the first day 
        beginning after the required payment or loan closing 
        date and ending on the date the amount is paid or 
        loaned.
  (B) As used in this subsection, the ``required payment or 
loan closing date'' means--
          (i) for a purchase agreement, the 30th day after 
        delivery of the warehouse receipt for the commodity 
        subject to the purchase agreement;
          (ii) for a loan agreement, the 30th day beginning 
        after the date of receipt of an application with all 
        requisite documentation and signatures, unless the 
        applicant requests that the disbursement be deferred;
          (iii) for refund of amounts received greater than the 
        amount required to repay a commodity loan, the first 
        business day after the Commodity Credit Corporation 
        receives payment for such loan;
          (iv) for land diversion payments (other than advance 
        payments), the 30th day beginning after the date of 
        completion of the production adjustment contract by the 
        producer;
          (v) for an advance land diversion payment, 30 days 
        after the date the Commodity Credit Corporation 
        executes the contract with the producer;
          (vi) for a deficiency payment (other than advance 
        payments) based upon a 12-month or 5-month period, 91 
        days after the end of such period; or
          (vii) for an advance deficiency payment, 30 days 
        after the date the Commodity Credit Corporation 
        executes the contract with the producer.
  (3) Payment of the interest penalty under this subsection 
shall be made out of funds available under section 8 of the Act 
of June 29, 1948 (15 U.S.C. 714f).
  (4) Section 3907 of this title shall not apply to interest 
penalty payments made under this subsection.

SEC. 3903. REGULATIONS.

  (a) The Director of the Office of Management and Budget shall 
prescribe regulations to carry out section 3902 of this title. 
The regulations shall--
          (1) provide that the required payment date is--
                  (A) the date payment is due under the 
                contract for the item of property or service 
                provided; or
                  (B) 30 days after a proper invoice for the 
                amount due is received if a specific payment 
                date is not established by contract;
          (2) for the acquisition of meat or a meat food 
        product (as defined in section 2(a)(3) of the Packers 
        and Stockyards Act, 1921 (7 U.S.C. 182(3)), including 
        any edible fresh or frozen poultry meat, any perishable 
        poultry meat food product, fresh eggs, and any 
        perishable egg product, or of fresh or frozen fish (as 
        defined in section 204(3) of the Fish and Seafood 
        Promotion Act of 1986 (16 U.S.C. 4003(3)), provide a 
        required payment date of not later than 7 days after 
        the meat, meat food product, or fish is delivered; and
          (3) for the acquisition of a perishable agricultural 
        commodity (as defined in section 1(4) of the Perishable 
        Agricultural Commodities Act, 1930 (7 U.S.C. 499a(4))), 
        provide a required payment date consistent with that 
        Act;
          (4) for the acquisition of dairy products (as defined 
        in section 111(e) of the Dairy Production Stabilization 
        Act of 1983 (7 U.S.C. 4502(e)), the acquisition of 
        edible fats or oils, and the acquisition of food 
        products prepared from edible fats or oils, provide a 
        required payment date of not later than 10 days after 
        the date on which a proper invoice for the amount due 
        has been received by the agency acquiring such dairy 
        products, fats, oils, or food products;
          (5) require periodic payments, in the case of a 
        property or service contract which does not prohibit 
        periodic payments for partial deliveries or other 
        contract performance during the contract period, upon--
                  (A) submission of an invoice for property 
                delivered or services performed during the 
                contract period, if an invoice is required by 
                the contract; and
                  (B) either--
                  (i) acceptance of the property or services by 
                an employee of an agency authorized to accept 
                the property or services; or
                  (ii) the making of a determination by such an 
                employee, that the performance covered by the 
                payment conforms to the terms and conditions of 
                the contract;
  (6) in the case of a construction contract, provide for the 
payment of interest on--
          (A) a progress payment (including a monthly 
        percentage-of-completion progress payment or milestone 
        payments for completed phases, increments, or segments 
        of any project) that is approved as payable by the 
        agency pursuant to subsection (b) of this section and 
        remains unpaid for--
                  (i) a period of more than 14 days after 
                receipt of the payment request by the place or 
                person designated by the agency to first 
                receive such requests; or
                  (ii) a longer period, specified in the 
                solicitation, if required to afford the 
                Government a practicable opportunity to 
                adequately inspect the work and to determine 
                the adequacy of the contractor's performance 
                under the contract; and
          (B) any amounts which the agency has retained 
        pursuant to a prime contract clause providing for 
        retaining a percentage of progress payments otherwise 
        due to a contractor and that are approved for release 
        to the contractor, if such retained amounts are not 
        paid to the contractor by a date specified in the 
        contract or, in the absence of such a specified date, 
        by the 30th day after final acceptance;
    (7) require that--
          (A) each invoice be reviewed as soon as practicable 
        after receipt for the purpose of determining that such 
        an invoice is a proper invoice within the meaning of 
        section 3901(a)(3) of this title;
          (B) any invoice determined not to be such a proper 
        invoice suitable for payment shall be returned as soon 
        as practicable, but not later than 7 days, after 
        receipt, specifying the reasons that the invoice is not 
        a proper invoice; and
          (C) the number of days available to an agency to make 
        a timely payment of an invoice without incurring an 
        interest penalty shall be reduced by the number of days 
        by which an agency exceeds the requirements of 
        subparagraph (B) of this paragraph;
    (8) permit an agency to make payment up to 7 days prior to 
the required payment date, or earlier as determined by the 
agency to be necessary on a case-by-case basis; and
    (9) prescribe the methods for computing interest under 
section 3903(c) of this title.
    (b)(1) A payment request may not be approved under 
subsection (a)(6)(A) of this section unless the application for 
such payment includes--
          (A) substantiation of the amounts requested; and
          (B) a certification by the prime contractor, to the 
        best of the contractor's knowledge and belief, that--
                  (i) the amounts requested are only for 
                performance in accordance with the 
                specifications, terms, and conditions of the 
                contract;
                  (ii) payments to subcontractors and suppliers 
                have been made from previous payments received 
                under the contract, and timely payments will be 
                made from the proceeds of the payment covered 
                by the certification, in accordance with their 
                subcontract agreements and the requirements of 
                this chapter; and
                  (iii) the application does not include any 
                amounts which the prime contractor intends to 
                withhold or retain from a subcontractor or 
                supplier in accordance with the terms and 
                conditions of their subcontract.
    (2) The agency shall return any such payment request which 
is defective to the contractor within 7 days after receipt, 
with a statement identifying the defect.
    (c)(1) The contracting officer shall--
          (A) compute the interest which a contractor shall be 
        obligated to pay under sections 3905(a)(2) and 
        3905(e)(6) of this title on the basis of the average 
        bond equivalent rates of 91-day Treasury bills 
        auctioned at the most recent auction of such bills 
        prior to the date the contractor received the unearned 
        amount; and
          (B) deduct the interest amount determined under 
        subparagraph (A) of this paragraph from the next 
        available payment to the contractor.
    (2) Amounts deducted from payments to contractors under 
paragraph (1)(B) shall revert to the Treasury.

SEC. 3904. LIMITATIONS ON DISCOUNT PAYMENTS.

  The head of an agency offered a discount by a business 
concern from an amount due under a contract for property or 
service in exchange for payment within a specified time may pay 
the discounted amount only if payment is made within the 
specified time. For the purpose of the preceding sentence, the 
specified time shall be determined from the date of the 
invoice. The head of the agency shall pay an interest penalty 
on an amount remaining unpaid in violation of this section. The 
penalty accrues as provided under sections 3902 and 3903 of 
this title, except that the required payment date for the 
unpaid amount is the last day specified in the contract that 
the discounted amount may be paid.

SEC. 3905. PAYMENT PROVISIONS RELATING TO CONSTRUCTION CONTRACTS.

  (a) In the event that a contractor, after making a certified 
payment request to an agency pursuant to section 3903(b) of 
this title, discovers that a portion or all of such payment 
request constitutes a payment for performance by such 
contractor that fails to conform to the specifications, terms, 
and conditions of its contract (hereafter in this subsection 
referred to as the ``unearned amount''), then the contractor 
shall--
          (1) notify the agency of such performance deficiency; 
        and
          (2) be obligated to pay the Government an amount 
        equal to interest on the unearned amount (computed in 
        the manner provided in section 3903(c) of this title), 
        from the date of the contractor's receipt of such 
        unearned amount until--
                  (A) the date the contractor notifies the 
                agency that the performance deficiency has been 
                corrected; or
                  (B) the date the contractor reduces the 
                amount of any subsequent certified application 
                for payment to such agency by an amount equal 
                to the unearned amount.
  (b) Each construction contract awarded by an agency shall 
include a clause that requires the prime contractor to include 
in each subcontract for property or services entered into by 
the prime contractor and a subcontractor (including a material 
supplier) for the purpose of performing such construction 
contract--
          (1) a payment clause which obligates the prime 
        contractor to pay the subcontractor for satisfactory 
        performance under its subcontract within 7 days out of 
        such amounts as are paid to the prime contractor by the 
        agency under such contract; and
          (2) an interest penalty clause which obligates the 
        prime contractor to pay to the subcontractor an 
        interest penalty on amounts due in the case of each 
        payment not made in accordance with the payment clause 
        included in the subcontract pursuant to paragraph (1) 
        of this subsection--
                  (A) for the period beginning on the day after 
                the required payment date and ending on the 
                date on which payment of the amount due is 
                made; and
                  (B) computed at the rate specified by section 
                3902(a) of this title.
  (c) The construction contract awarded by the agency shall 
further require the prime contractor to include in each of its 
subcontracts (for the purpose of performance of such 
construction contract) a provision requiring the subcontractor 
to include a payment clause and an interest penalty clause 
conforming to the standards of subsection (b) of this section 
in each of its subcontracts and to require each of its 
subcontractors to include such clauses in their subcontracts 
with each lower-tier subcontractor or supplier.
  (d) The clauses required by subsections (b) and (c) of this 
section shall not be construed to impair the right of a prime 
contractor or a subcontractor at any tier to negotiate, and to 
conclude in their subcontract, provisions which--
          (1) permit the prime contractor or a subcontractor to 
        retain (without cause) a specified percentage of each 
        progress payment otherwise due to a subcontractor for 
        satisfactory performance under the subcontract, without 
        incurring any obligation to pay a late payment interest 
        penalty, in accordance with terms and conditions agreed 
        to by the parties to the subcontract, giving such 
        recognition as the parties deem appropriate to the 
        ability of a subcontractor to furnish a performance 
        bond and a payment bond;
          (2) permit the contractor or subcontractor to make a 
        determination that part or all of the subcontractor's 
        request for payment may be withheld in accordance with 
        the subcontract agreement; and
          (3) permit such withholding without incurring any 
        obligation to pay a late payment penalty if--
                  (A) a notice conforming to the standards of 
                subsection (g) of this section has been 
                previously furnished to the subcontractor; and
                  (B) a copy of any notice issued by a prime 
                contractor pursuant to subparagraph (A) of this 
                paragraph has been furnished to the Government.
  (e) If a prime contractor, after making application to an 
agency for payment under a contract but before making a payment 
to a subcontractor for the subcontractor's performance covered 
by such application, discovers that all or a portion of the 
payment otherwise due such subcontractor is subject to 
withholding from the subcontractor in accordance with the 
subcontract agreement, then the prime contractor shall--
          (1) furnish to the subcontractor a notice conforming 
        to the standards of subsection (g) of this section as 
        soon as practicable upon ascertaining the cause giving 
        rise to a withholding, but prior to the due date for 
        subcontractor payment;
          (2) furnish to the Government, as soon as 
        practicable, a copy of the notice furnished to the 
        subcontractor pursuant to paragraph (1) of this 
        subsection;
          (3) reduce the subcontractor's progress payment by an 
        amount not to exceed the amount specified in the notice 
        of withholding furnished under paragraph (1) of this 
        subsection;
          (4) pay the subcontractor as soon as practicable 
        after the correction of the identified subcontract 
        performance deficiency, and--
                  (A) make such payment within--
                          (i) 7 days after correction of the 
                        identified subcontract performance 
                        deficiency (unless the funds therefor 
                        must be recovered from the Government 
                        because of a reduction under paragraph 
                        (5)(A)); or
                          (ii) 7 days after the contractor 
                        recovers such funds from the 
                        Government; or
                  (B) incur an obligation to pay a late payment 
                interest penalty computed at the rate specified 
                by section 3902(a) of this title;
          (5) notify the Government, upon--
                  (A) reduction of the amount of any subsequent 
                certified application for payment; or
                  (B) payment to the subcontractor of any 
                withheld amounts of a progress payment, 
                specifying--
                          (i) the amounts of the progress 
                        payments withheld under paragraph (1) 
                        of this subsection; and
                          (ii) the dates that such withholding 
                        began and ended; and
          (6) be obligated to pay to the Government an amount 
        equal to interest on the withheld payments (computed in 
        the manner provided in section 3903(c) of this title), 
        from the 8th day after receipt of the withheld amounts 
        from the Government until--
                  (A) the day the identified subcontractor 
                performance deficiency is corrected; or
                  (B) the date that any subsequent payment is 
                reduced under paragraph (5)(A).
  (f)(1) If a prime contractor, after making payment to a 
first-tier subcontractor, receives from a supplier or 
subcontractor of the first-tier subcontractor (hereafter 
referred to as a ``second-tier subcontractor'') a written 
notice in accordance with section 2 of the Act of August 24, 
1935 (40 U.S.C. 270b), asserting a deficiency in such first-
tier subcontractor's performance under the contract for which 
the prime contractor may be ultimately liable, and the prime 
contractor determines that all or a portion of future payments 
otherwise due such first-tier subcontractor is subject to 
withholding in accordance with the subcontract agreement, then 
the prime contractor may, without incurring an obligation to 
pay an interest penalty under subsection (e)(6) of this 
section--
          (A) furnish to the first-tier subcontractor a notice 
        conforming to the standards of subsection (g) of this 
        section as soon as practicable upon making such 
        determination; and
          (B) withhold from the first-tier subcontractor's next 
        available progress payment or payments an amount not to 
        exceed the amount specified in the notice of 
        withholding furnished under subparagraph (A) of this 
        paragraph.
  (2) As soon as practicable, but not later than 7 days after 
receipt of satisfactory written notification that the 
identified subcontract performance deficiency has been 
corrected, the prime contractor shall pay the amount withheld 
under paragraph (1)(B) of this subsection to such first-tier 
subcontractor, or shall incur an obligation to pay a late 
payment interest penalty to such first-tier subcontractor 
computed at the rate specified by section 3902(a) of this 
title.
  (g) A written notice of any withholding shall be issued to a 
subcontractor (with a copy to the Government of any such notice 
issued by a prime contractor), specifying--
          (1) the amount to be withheld;
          (2) the specific causes for the withholding under the 
        terms of the subcontract; and
          (3) the remedial actions to be taken by the 
        subcontractor in order to receive payment of the 
        amounts withheld.
  (h) A prime contractor may not request payment from the 
agency of any amount withheld or retained in accordance with 
subsection (d) of this section until such time as the prime 
contractor has determined and certified to the agency that the 
subcontractor is entitled to the payment of such amount.
  (i) A dispute between a contractor and subcontractor relating 
to the amount or entitlement of a subcontractor to a payment or 
a late payment interest penalty under a clause included in the 
subcontract pursuant to subsection (b) or (c) of this section 
does not constitute a dispute to which the United States is a 
party. The United States may not be interpleaded in any 
judicial or administrative proceeding involving such a dispute.
  (j) Except as provided in subsection (i) of this section, 
this section shall not limit or impair any contractual, 
administrative, or judicial remedies otherwise available to a 
contractor or a subcontractor in the event of a dispute 
involving late payment or nonpayment by a prime contractor or 
deficient subcontract performance or nonperformance by a 
subcontractor.
  (k) A contractor's obligation to pay an interest penalty to a 
subcontractor pursuant to the clauses included in a subcontract 
under subsection (b) or (c) of this section may not be 
construed to be an obligation of the United States for such 
interest penalty. A contract modification may not be made for 
the purpose of providing reimbursement of such interest 
penalty. A cost reimbursement claim may not include any amount 
for reimbursement of such interest penalty.

SEC. 3906. REPORTS.

  (a)(1) By the 60th day after the end of the fiscal year, the 
head of each agency shall submit to the Director of the Office 
of Management and Budget a report on the agency's payment 
practices during that fiscal year, including a description of 
the extent to which those practices satisfy the requirements of 
this chapter.
  (2) In addition to such other information as may be required 
by the Director, the report required by paragraph (1) shall 
include--
          (A) the number, dollar value, and percentage of 
        invoices for which interest or other late payment 
        penalties were paid, the amount of such late payment 
        interest and other penalties, and the reasons the 
        interest penalties were not avoided by prompt payment; 
        and
          (B) the number, dollar value, and percentage of 
        invoices paid after the required payment date without 
        payment of an interest penalty or other late payment 
        penalty, and the reasons no obligation to pay such 
        penalties was incurred with respect to such invoices or 
        no amount for such penalties were included in the 
        payments of such invoices.
  (b) By the 120th day after the end of each fiscal year, the 
Director shall submit to the Committees on Governmental 
Affairs, Appropriations, and Small Business of the Senate and 
the Committees on Government Operations, Appropriations, and 
Small Business of the House of Representatives a report on 
agency compliance with this chapter. The report shall include a 
summary of the report of each agency submitted under subsection 
(a) of this section and an analysis of progress made in 
reducing interest penalty payments by that agency from prior 
years.

SEC. 3907. RELATIONSHIP TO OTHER LAWS.

  (a) A claim for an interest penalty not paid under this 
chapter may be filed under section 6 of the Contract Disputes 
Act of 1978 (41 U.S.C. 605).
  (b)(1) An interest penalty under this chapter does not 
continue to accrue--
          (A) after a claim for a penalty is filed under the 
        Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.); 
        or
          (B) for more than one year.
  (2) Paragraph (1) of this subsection does not prevent an 
interest penalty from accruing under section 12 of the Contract 
Disputes Act of 1978 (41 U.S.C. 611) after a penalty stops 
accruing under this chapter. A penalty accruing under section 
12 may accrue on an unpaid contract payment and on the unpaid 
penalty under this chapter.
  (c) Except as provided in section 3904 of this title, this 
chapter does not require an interest penalty on a payment that 
is not made because of a dispute between the head of an agency 
and a business concern over the amount of payment or compliance 
with the contract. A claim related to the dispute, and interest 
payable for the period during which the dispute is being 
resolved, is subject to the Contract Disputes Act of 1978 (41 
U.S.C. 601 et seq.).
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements of guidelines issued by federal agencies 
or entities:


------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
3901-3906.................................  48 C.F.R. 2432              
3903(a)...................................  OMB: Circular A-125, see    
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

             Subtitle V--General Assistance Administration

          * * * * * * *

               CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS

SEC. 7501. DEFINITIONS.

  As used in this chapter, the term--
          (1) ``cognizant agency'' means a Federal agency which 
        is assigned by the Director with the responsibility for 
        implementing the requirements of this chapter with 
        respect to a particular State or local government.
          (2) ``Comptroller General'' means the Comptroller 
        General of the United States.
          (3) ``Director'' means the Director of the Office of 
        Management and Budget.
          (4) ``Federal financial assistance'' means assistance 
        provided by a Federal agency in the form of grants, 
        contracts, loans, loan guarantees, property, 
        cooperative agreements, interest subsidies, insurance, 
        or direct appropriations, but does not include direct 
        Federal cash assistance to individuals.
          (5) ``Federal agency'' has the same meaning as the 
        term ``agency'' in section 551(1) of title 5, United 
        States Code.
          (6) ``generally accepted accounting principles'' has 
        the meaning specified in the generally accepted 
        government auditing standards.
          (7) ``generally accepted government auditing 
        standards'' means the standards for audit of 
        governmental organizations, programs, activities, and 
        functions, issued by the Comptroller General.
          (8) ``independent auditor'' means--
                  (A) an external State or local government 
                auditor who meets the independence standards 
                included in generally accepted government 
                auditing standards, or
                  (B) a public accountant who meets such 
                independence standards.
          (9) ``internal controls'' means the plan of 
        organization and methods and procedures adopted by 
        management to ensure that--
                  (A) resource use is consistent with laws, 
                regulations, and policies;
                  (B) resources are safeguarded against waste, 
                loss and misuse; and
                  (C) reliable data are obtained, maintained, 
                and fairly disclosed in reports.
          (10) ``Indian tribe'' means any Indian tribe, band, 
        nation, or other organized group or community, 
        including any Alaskan Native village or regional or 
        village corporation (as defined in, or established 
        under, the Alaskan Native Claims Settlement Act) that 
        is recognized by the United States as eligible for the 
        special programs and services provided by the United 
        States to Indians because of their status as Indians.
          (11) ``local government'' means any unit of local 
        government within a State, including a county, borough, 
        municipality, city, town, township, parish, local 
        public authority, special district, school district, 
        intrastate district, council of governments, and any 
        other instrumentality of local government.
          (12) ``major Federal assistance program'' means any 
        program for which total expenditures of Federal 
        financial assistance by the State or local government 
        during the applicable year exceed--
                  (A) $20,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $7,000,000,000;
                  (B) $19,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $6,000,000,000 but are less than or equal to 
                $7,000,000,000;
                  (C) $16,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $5,000,000,000 but are less than or equal to 
                $6,000,000,000;
                  (D) $13,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $4,000,000,000 but are less than or equal to 
                $5,000,000,000;
                  (E) $10,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $3,000,000,000 but are less than or equal to 
                $4,000,000,000;
                  (F) $7,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $2,000,000,000 but are less than or equal to 
                $3,000,000,000;
                  (G) $4,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $1,000,000,000 but are less than or equal to 
                $2,000,000,000;
                  (H) $3,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $100,000,000 but are less than or equal to 
                $1,000,000,000; and
                  (I) the larger of (i) $300,000, or (ii) 3 
                percent of such total expenditures for all 
                programs, in the case of a State or local 
                government for which such total expenditures 
                for all programs exceed $100,000 but are less 
                than or equal to $100,000,000.
          (13) ``public accountants'' means those individuals 
        who meet the qualification standards included in 
        generally accepted government auditing standards for 
        personnel performing government audits.
          (14) ``State'' means any State of the United States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the 
        Trust Territory of the Pacific Islands, any 
        instrumentality thereof, any multi-State, regional, or 
        interstate entity which has governmental functions, and 
        any Indian tribe.
          (15) ``subrecipient'' means any person or government 
        department, agency, or establishment that receives 
        Federal financial assistance through a State or local 
        government, but does not include an individual that 
        receives such assistance.

SEC. 7502. AUDIT REQUIREMENTS; EXEMPTIONS.

  (a)(1)(A) Each State and local government which receives a 
total amount of Federal financial assistance equal to or in 
excess of $100,000 in any fiscal year of such government shall 
have an audit made for such fiscal year in accordance with the 
requirements of this chapter and the requirements of the 
regulations prescribed pursuant to section 7505 of this title.
  (B) Each State and local government that receives a total 
amount of Federal financial assistance which is equal to or in 
excess of $25,000 but less than $100,000 in any fiscal year of 
such government shall--
          (i) have an audit made for such fiscal year in 
        accordance with the requirements of this chapter and 
        the requirements of the regulations prescribed pursuant 
        to section 7505 of this title; or
          (ii) comply with any applicable requirements 
        concerning financial or financial and compliance audits 
        contained in Federal statutes and regulations governing 
        programs under which such Federal financial assistance 
        is provided to that government.
  (C) Each State and local government that receives a total 
amount of Federal financial assistance which is less than 
$25,000 in any fiscal year of such government shall be exempt 
for such fiscal year from compliance with--
          (i) the audit requirements of this chapter; and
          (ii) any applicable requirements concerning financial 
        or financial and compliance audits contained in Federal 
        statutes and regulations governing programs under which 
        such Federal financial assistance is provided to that 
        government.

        The provisions of clause (ii) of this subparagraph do 
        not exempt a State or local government from compliance 
        with any provision of a Federal statute or regulation 
        that requires such government to maintain records 
        concerning Federal financial assistance provided to 
        such government or that permits a Federal agency or the 
        Comptroller General access to such records.
  (2) For purposes of this section, a State or local government 
shall be considered to receive Federal financial assistance 
whether such assistance is received directly from a Federal 
agency or indirectly through another State or local government.
  (b)(1) Except as provided in paragraphs (2) and (3), audits 
conducted pursuant to this chapter shall be conducted annually.
  (2) If a State or local government is required--
          (A) by constitution or statute, as in effect on 
        October 19, 1984, or
          (B) by administrative rules, regulations, guidelines, 
        standards, or policies, as in effect on October 19, 
        1984,
to conduct its audits less frequently than annually, the 
cognizant agency for such government shall, upon request of 
such government, permit the government to conduct its audits 
pursuant to this chapter biennially, except as provided in 
paragraph (3). Such audits shall cover both years within the 
biennial period.
  (3) Any State or local government that is permitted, under 
clause (B) of paragraph (2), to conduct its audits pursuant to 
this chapter biennially by reason of the requirements of a 
rule, regulation, guideline, standard, or policy, shall, for 
any of its fiscal years beginning after December 31, 1986, 
conduct such audits annually unless such State or local 
government codifies a requirement for biennial audits in its 
constitution or statutes by January 1, 1987. Audits conducted 
biennially under the provisions of this paragraph shall cover 
both years within the biennial period.
  (c) Each audit conducted pursuant to subsection (a) shall be 
conducted by an independent auditor in accordance with 
generally accepted government auditing standards, except that, 
for the purposes of this chapter, such standards shall not be 
construed to require economy and efficiency audits, program 
results audits, or program evaluations.
  (d)(1) Each audit conducted pursuant to subsection (a) for 
any fiscal year shall cover the entire State or local 
government's operations except that, at the option of such 
government--
          (A) such audit may, except as provided in paragraph 
        (5), cover only each department, agency, or 
        establishment which received, expended, or otherwise 
        administered Federal financial assistance during such 
        fiscal year; and
          (B) such audit may exclude public hospitals and 
        public colleges and universities.
  (2) Each such audit shall encompass the entirety of the 
financial operation of such government or of such department, 
agency, or establishment, whichever is applicable, and shall 
determine and report whether--
          (A)(i) the financial statements of the government, 
        department, agency, or establishment present fairly its 
        financial position and the results of its financial 
        operations in accordance with generally accepted 
        accounting principles; and
          (ii) the government, department, agency, or 
        establishment has complied with laws and regulations 
        that may have a material effect upon the financial 
        statements;
          (B) the government, department, agency, or 
        establishment has internal control systems to provide 
        reasonable assurance that it is managing Federal 
        financial assistance programs in compliance with 
        applicable laws and regulations; and
          (C) the government, department, agency, or 
        establishment has complied with laws and regulations 
        that may have a material effect upon each major Federal 
        assistance program.
In complying with the requirements of subparagraph (C), the 
independent auditor shall select and test a representative 
number of transactions from each major Federal assistance 
program.
  (3) Transactions selected from Federal assistance programs, 
other than major Federal assistance programs, pursuant to the 
requirements of paragraphs (2)(A) and (2)(B) shall be tested 
for compliance with Federal laws and regulations that apply to 
such transactions. Any noncompliance found in such transactions 
by the independent auditor in making determinations required by 
this paragraph shall be reported.
  (4) The number of transactions selected and tested under 
paragraphs (2) and (3), the selection and testing of such 
transactions, and the determinations required by such 
paragraphs shall be based on the professional judgment of the 
independent auditor.
  (5) A series of audits of individual departments, agencies, 
and establishments for the same fiscal year may be considered 
to be an audit for the purpose of this chapter.
  (6) Redesignated (5)
  (e)(1) Each State and local government subject to the audit 
requirements of this chapter, which receives Federal financial 
assistance and provides $25,000 or more of such assistance in 
any fiscal year to a subrecipient, shall--
          (A) if the subrecipient conducts an audit in 
        accordance with the requirements of this chapter, 
        review such audit and ensure that prompt and 
        appropriate corrective action is taken on instances of 
        material noncompliance with applicable laws and 
        regulations with respect to Federal financial 
        assistance provided to the subrecipient by the State or 
        local government; or
          (B) if the subrecipient does not conduct an audit in 
        accordance with the requirements of this chapter--
                  (i) determine whether the expenditures of 
                Federal financial assistance provided to the 
                subrecipient by the State or local government 
                are in accordance with applicable laws and 
                regulations; and
                  (ii) ensure that prompt and appropriate 
                corrective action is taken on instances of 
                material noncompliance with applicable laws and 
                regulations with respect to Federal financial 
                assistance provided to the subrecipient by the 
                State or local government.
  (2) Each such State and local government shall require each 
subrecipient of Federal assistance through such government to 
permit, as a condition of receiving funds from such assistance, 
the independent auditor of the State or local government to 
have such access to the subrecipient's records and financial 
statements as may be necessary for the State or local 
government to comply with this chapter.
  (f) The report made on any audit conducted pursuant to this 
section shall, within thirty days after completion of such 
report, be transmitted to the appropriate Federal officials and 
made available by the State or local government for public 
inspection.
  (g) If an audit conducted pursuant to this section finds any 
material noncompliance with applicable laws and regulations by, 
or material weakness in the internal controls of, the State or 
local government with respect to the matters described in 
subsection (d)(2), the State or local government shall submit 
to appropriate Federal officials a plan for corrective action 
to eliminate such material noncompliance or weakness or a 
statement describing the reasons that corrective action is not 
necessary. Such plan shall be consistent with the audit 
resolution standard promulgated by the Comptroller General (as 
part of the standards for internal controls in the Federal 
Government) pursuant to section 3512(c) of this title.

SEC. 7503. RELATION TO OTHER AUDIT REQUIREMENTS.

  (a) An audit conducted in accordance with this chapter shall 
be in lieu of any financial or financial and compliance audit 
of an individual Federal assistance program which a State or 
local government is required to conduct under any other Federal 
law or regulation. To the extent that such audit provided a 
Federal agency with the information it requires to carry out 
its responsibilities under Federal law or regulation, a Federal 
agency shall rely upon and use that information and plan and 
conduct its own audits accordingly in order to avoid a 
duplication of effort.
  (b) Notwithstanding subsection (a), a Federal agency shall 
conduct any additional audits which are necessary to carry out 
its responsibilities under Federal law or regulation. The 
provisions of this chapter do not authorize any State or local 
government (or subrecipient thereof) to constrain, in any 
manner, such agency from carrying out such additional audits.
  (c) The provisions of this chapter do not limit the authority 
of Federal agencies to conduct, or enter into contracts for the 
conduct of, audits and evaluations of Federal financial 
assistance programs, nor limit the authority of any Federal 
agency Inspector General or other Federal audit official.
  (d) Subsection (a) shall apply to a State or local government 
which conducts an audit in accordance with this chapter even 
though it is not required by section 7502(a) to conduct such 
audit.
  (e) A Federal agency that performs or contracts for audits in 
addition to the audits conducted by recipients pursuant to this 
chapter shall, consistent with other applicable law, arrange 
for funding the cost of such additional audits. Such additional 
audits include economy and efficiency audits, program results 
audits, and program evaluations.

SEC. 7504. COGNIZANT AGENCY RESPONSIBILITIES.

  (a) The Director shall designate cognizant agencies for 
audits conducted pursuant to this chapter.
  (b) A cognizant agency shall--
          (1) ensure that audits are made in a timely manner 
        and in accordance with the requirements of this 
        chapter;
          (2) ensure that the audit reports and corrective 
        action plans made pursuant to section 7502 of this 
        title are transmitted to the appropriate Federal 
        officials; and
          (3) (A) coordinate, to the extent practicable, audits 
        done by or under contract with Federal agencies that 
        are in addition to the audits conducted pursuant to 
        this chapter; and
          (B) ensure that such additional audits build upon the 
        audits conducted pursuant to this chapter.

SEC. 7505. REGULATIONS.

  (a) The Director, after consultation with the Comptroller 
General and appropriate Federal, State, and local government 
officials, shall prescribe policies, procedures, and guidelines 
to implement this chapter. Each Federal agency shall promulgate 
such amendments to its regulations as may be necessary to 
conform such regulations to the requirements of this chapter 
and of such policies, procedures, and guidelines.
  (b)(1) The policies, procedures, and guidelines prescribed 
pursuant to subsection (a) shall include criteria for 
determining the appropriate charges to programs of Federal 
financial assistance for the cost of audits. Such criteria 
shall prohibit a State or local government which is required to 
conduct an audit pursuant to this chapter from charging to any 
such program (A) the cost of any financial or financial and 
compliance audit which is not conducted in accordance with this 
chapter, and (B) more than a reasonably proportionate share of 
the cost of any such audit that is conducted in accordance with 
this chapter.
  (2) The criteria prescribed pursuant to paragraph (1) shall 
not, in the absence of documentation demonstrating a higher 
actual cost, permit (A) the ratio of (i) the total charges by a 
government to Federal financial assistance programs for the 
cost of audits performed pursuant to this chapter, to (ii) the 
total cost of such audits, to exceed (B) the ratio of (i) total 
Federal financial assistance expended by such government during 
the applicable fiscal year or years, to (ii) such government's 
total expenditures during such fiscal year or years.
  (c) Such policies, procedures, and guidelines shall include 
such provisions as may be necessary to ensure that small 
business concerns and business concerns owned and controlled by 
socially and economically disadvantaged individuals will have 
the opportunity to participate in the performance of contracts 
awarded to fulfill the audit requirements of this chapter.

SEC. 7506. MONITORING RESPONSIBILITIES OF THE COMPTROLLER GENERAL.

  The Comptroller General shall review provisions requiring 
financial or financial and compliance audits of recipients of 
Federal assistance that are contained in bills and resolutions 
reported by the committees of the Senate and the House of 
Representatives. If the Comptroller General determines that a 
bill or resolution contains provisions that are inconsistent 
with the requirements of this chapter, the Comptroller General 
shall, at the earliest practicable date, notify in writing--
          (1) the committee that reported such bill or 
        resolution; and
          (2)(A) the Committee on Governmental Affairs of the 
        Senate (in the case of a bill or resolution reported by 
        a committee of the Senate); or
          (B) the Committee on Government Operations of the 
        House of Representatives (in the case of a bill or 
        resolution reported by a committee of the House of 
        Representatives).

SEC. 7507. EFFECTIVE DATE; REPORT.

  (a) This chapter shall apply to any State or local government 
with respect to any of its fiscal years which begin after 
December 31, 1984.
  (b) The Director, on or before May 1, 1987, and annually 
thereafter, shall submit to each House of Congress a report on 
operations under this chapter. Each such report shall 
specifically identify each Federal agency or State or local 
government which is failing to comply with this chapter.
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
7500 et seq...............................  29 C.F.R. 96                
7501 et seq...............................  15 C.F.R. 299; 34 C.F.R.    
                                             298, 401; 38 C.F.R. 41; 39 
                                             C.F.R. 204                 
7501-7507.................................  24 C.F.R. 44                
7501......................................  43 C.F.R. 12                
                                            GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
7503......................................  7 C.F.R. 3015; 44 C.F.R. 14;
                                             45 C.F.R. 74               
                                            GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
7505......................................  GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
                                            OMB: Circular A-128, see    
                                             appendix IV                
------------------------------------------------------------------------

                      TITLE 31--MONEY AND FINANCE

                       Subtitle VI--Miscellaneous

          * * * * * * *

                  CHAPTER 91--GOVERNMENT CORPORATIONS

SEC. 9101. DEFINITIONS.

In this chapter--
          (1) ``Government corporation'' means a mixed-
        ownership Government corporation and a wholly owned 
        Government Corporation.
          (2) ``mixed-ownership Government corporation means--
                  (A) Amtrack.
                  (B) the Central Bank for Cooperatives.
                  (C) the Federal Deposit Insurance 
                Corporation.
                  (D) the Federal Home Loan Banks.
                  (E) the Federal Intermediate Credit Banks.
                  (F) the Federal Land Banks.
                  (G) the National Credit Union Administration 
                Central Liquidity Facility.
                  (H) the Regional Banks for Cooperatives.
                  (I) the Rural Telephone Bank when the 
                ownership, control, and operation of the Bank 
                are converted under section 410(a) of the Rural 
                Electrification Act of 1936 (7 U.S.C. 950(a)).
                  (J) the United States Railway Association.
                  (K) the Financing Corporation.
                  (L) the Resolution Trust Corporation.
                  (M) the Resolution Funding Corporation.
          * * * * * * *
                      TITLE 31--MONEY AND FINANCE

                       Subtitle VI--Miscellaneous

          * * * * * * *

                       CHAPTER 97--MISCELLANEOUS

SEC. 9701. FEES AND CHARGES FOR GOVERNMENT SERVICES AND THINGS OF 
                    VALUE.

  (a) It is the sense of Congress that each service or thing of 
value provided by an agency (except a mixed-ownership 
Government corporation) to a person (except a person on 
official business of the United States Government) is to be 
self-sustaining to the extent possible.
  (b) The head of each agency (except a mixed-ownership 
Government corporation) may prescribe regulations establishing 
the charge for a service or thing of value provided by the 
agency. Regulations prescribed by the heads of executive 
agencies are subject to policies prescribed by the President 
and shall be as uniform as practicable. Each charge shall be--
          (1) fair; and
          (2) based on--
                  (A) the costs to the Government;
                  (B) the value of the service or thing to the 
                recipient;
                  (C) public policy or interest served; and
                  (D) other relevant facts.
  (c) This section does not affect a law of the United States--
          (1) prohibiting the determination and collection of 
        charges and the disposition of those charges; and
          (2) prescribing bases for determining charges, but a 
        charge may be redetermined under this section 
        consistent with the prescribed bases.

SEC. 9702. INVESTMENT OF TRUST FUNDS.

  Except as required by a treaty of the United States, amounts 
held in trust by the United States Government (including annual 
interest earned on the amounts)--
          (1) shall be invested in Government obligations; and
          (2) shall earn interest at an annual rate of at least 
        5 percent.

SEC. 9703. MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY.

  (a) Beginning with fiscal year 1999, the performance plans 
required under section 1115 may include proposals to waive 
administrative procedural requirements and controls, including 
specification of personnel staffing levels, limitations on 
compensation or remuneration, and prohibitions or restrictions 
on funding transfers among budget object classification 20 and 
subclassifications 11, 12, 31, and 32 of each annual budget 
submitted under section 1105, in return for specific individual 
or organization accountability to achieve a performance goal. 
In preparing and submitting the performance plan under section 
1105(a)(29), the Director of the Office of Management and 
Budget shall review and may approve any proposed waivers. A 
waiver shall take effect at the beginning of the fiscal year 
for which the waiver is approved.
  (b) Any such proposal under subsection (a) shall describe the 
anticipated effects on performance resulting from greater 
managerial or organizational flexibility, discretion, and 
authority, and shall quantify the expected improvements in 
performance resulting from any waiver. The expected 
improvements shall be compared to current actual performance, 
and to the projected level of performance that would be 
achieved independent of any waiver.
  (c) Any proposal waiving limitations on compensation or 
remuneration shall precisely express the monetary change in 
compensation or remuneration amounts, such as bonuses or 
awards, that shall result from meeting, exceeding, or failing 
to meet performance goals.
  (d) Any proposed waiver of procedural requirements or 
controls imposed by an agency (other than the proposing agency 
or the Office of Management and Budget) may not be included in 
a performance plan unless it is endorsed by the agency that 
established the requirement, and the endorsement included in 
the proposing agency's performance plan.
  (e) A waiver shall be in effect for one or two years as 
specified by the Director of the Office of Management and 
Budget in approving the waiver. A waiver may be renewed for a 
subsequent year. After a waiver has been in effect for three 
consecutive years, the performance plan prepared under section 
1115 may propose that a waiver, other than a waiver of 
limitations on compensation or remuneration, be made permanent.
  (f) For purposes of this section, the definitions under 
section 1115(f) shall apply.

SEC. 9704. PILOT PROJECTS FOR MANAGERIAL ACCOUNTABILITY AND 
                    FLEXIBILITY.

  (a) The Director of the Office of Management and Budget shall 
designate not less than five agencies as pilot projects in 
managerial accountability and flexibility for fiscal years 1995 
and 1996. Such agencies shall be selected from those designated 
as pilot projects under section 1118 and shall reflect a 
representative range of Government functions and capabilities 
in measuring and reporting program performance.
  (b) Pilot projects in the designated agencies shall include 
proposed waivers in accordance with section 9703 for one or 
more of the major functions and operations of the agency.
  (c) The Director of the Office of Management and Budget shall 
include in the report to the President and to the Congress 
required under section 1118(c)--
          (1) an assessment of the benefits, costs, and 
        usefulness of increasing managerial and organizational 
        flexibility, discretion, and authority in exchange for 
        improved performance through a waiver; and
          (2) an identification of any significant difficulties 
        experienced by the pilot agencies in preparing proposed 
        waivers.
  (d) For purposes of this section the definitions under 
section 1115(f) shall apply.
          * * * * * * *
  The following list shows the section of 31 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 31 U.S.C.                   Requirements or Guidelines 
------------------------------------------------------------------------
9701......................................  OMB: Circular A-25, see     
                                             appendix IV                
9703......................................  OMB: Circular A-11, see     
                                             appendix IV                
9704......................................  OMB: Circular A-11, see     
                                             appendix IV                
------------------------------------------------------------------------

      
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                    SELECTED PROVISIONS OF TITLE 1,

                          UNITED STATES CODE--

                           GENERAL PROVISIONS

======================================================================

      
        Table of Sections of Selected Provisions of Title 1 \6\
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                      TITLE 1, UNITED STATES CODE

                           GENERAL PROVISIONS

                          Subtitle I--General

          * * * * * * *

  Chapter 2--Acts and Resolutions; Formalities of Enactment; Repeals; 
                         Sealing of Instruments

Sec.                                                                    
105.                               Title of appropriation Acts.         
                                                                        

      
                      TITLE 1, UNITED STATES CODE

                           GENERAL PROVISIONS

          * * * * * * *

Chapter 2--Acts and Resolutions; Formalities of Enactment; Repeals; 
                    Sealing of Instruments

SEC. 105. TITLE OF APPROPRIATION ACTS.

  The style and title of all Acts making appropriations for the 
support of Government shall be as follows: ``An Act making 
appropriations (here insert the object) for the year ending 
September 30 (here insert the calendar year).''
      
======================================================================


                    SELECTED PROVISIONS OF TITLE 2,

                          UNITED STATES CODE--

                              THE CONGRESS

======================================================================

      
                     Table of Sections of Selected

                       Provisions of Title 2 \7\
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    \7\ This table of sections is not part of Title 2 but is included 
for the convenience of the reader.
---------------------------------------------------------------------------
                              ----------                              


           SELECTED PROVISIONS OF TITLE 2, UNITED STATES CODE

                      TITLE 2, UNITED STATES CODE

                              The Congress

    Chapter 6--Congressional and Committee Procedure; Investigations

Sec. 190d.  Legislative review by standing committees of the 
Senate and the House of Representatives
                CHAPTER 17--CONGRESSIONAL BUDGET OFFICE
Sec. 601.  Establishment.
Sec. 602.  Duties and functions.
Sec. 603.  Public access to budget data.
Sec. 605.  Sale or Lease of property, supplies, or services.
Sec. 606.  Disposition of surplus or obsolete property.
        CHAPTER 17A: CONGRESSIONAL BUDGET AND FISCAL OPERATIONS
Sec. 621.  Congressional declaration of purpose.
Sec. 622.  Definitions.
Sec. 623.  Continuing study of additional budget reform 
proposals.
               Subchapter I--Congressional Budget Process
Sec. 631.  Timetable.
Sec. 632.  Annual adoption of concurrent resolution on the 
budget.
Sec. 633.  Committee allocations.
Sec. 634.  Adoption of first concurrent resolution on the 
budget prior to consideration of legislation providing new 
budget authority, new spending authority, new credit authority, 
or changes in revenues or public debt limit.
Sec. 635.  Permissible revisions of concurrent resolutions on 
the budget.
Sec. 636.  Consideration of concurrent resolutions on the 
budget.
Sec. 637.  Legislation dealing with Congressional budget must 
be handled by Budget Committees.
Sec. 638.  House Committee action on all appropriation bills to 
be completed by June 10.
Sec. 639.  Reports, summaries, and projections of Congressional 
budget actions.
Sec. 640.  House approval of regular appropriation bills.
Sec. 641.  Reconciliation.
Sec. 642.  New budget authority, new spending authority, and 
revenue legislation to be within appropriate levels.
Sec. 643.  Effects of points of order.
Sec. 644.  Extraneous matter in reconciliation legislation.
                    Subchapter II--Fiscal Procedures
                       Part A--General Provisions
Sec. 651.  Bills providing new spending authority.
Sec. 652.  Legislation providing new credit authority.
Sec. 653.  Analysis by Congressional Budget Office.
Sec. 654.  Study by General Accounting Office of forms of 
Federal financial commitment not reviewed annually by Congress.
Sec. 655.  Off-budget agencies, programs, and activities.
Sec. 656.  Member User Group.
                     Subchapter III--Credit Reform
Sec. 661.  Purposes.
Sec. 661a.  Definitions.
Sec. 661b.  OMB and CBO analysis, coordination, and review.
Sec. 661c.  Budgetary treatment.
Sec. 661d.  Authorizations.
Sec. 661e.  Treatment of Deposit Insurance and agencies and 
other insurance programs.
Sec. 661f.  Effect on other laws.
         Subchapter IV--Budget Agreement Enforcement Provisions
Sec. 665.  Definitions and point of order.
Sec. 665a.  Committee allocations and enforcement.
Sec. 665b.  Consideration of legislation before adoption of 
budget resolution for that fiscal year.
Sec. 665c.  Reconciliation directives regarding pay-as-you-go 
requirements.
Sec. 665d.  Application of section 642 of this title; point of 
order.
Sec. 665e.  5-Year budget resolutions; budget resolutions must 
conform to Balanced Budget and Emergency Deficit Control Act of 
1985.
                    CHAPTER 17B--IMPOUNDMENT CONTROL
Sec. 681.  Disclaimer.
Sec. 682.  Definitions.
Sec. 683.  Rescission of budget authority.
Sec. 684.  Proposed deferrals of budget authority.
Sec. 685.  Transmission of messages; publication.
Sec. 686.  Reports by Comptroller General.
Sec. 687.  Suits by Comptroller General.
Sec. 688.  Procedure in House of Representatives and Senate.
       CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS
  Subchapter I--Elimination of Deficits in Excess of Maximum Deficit 
                                 Amount
Sec. 900.  Statement of budget enforcement through 
sequestration; definitions.
Sec. 901.  Enforcing discretionary spending limits.
Sec. 902.  Enforcing pay-as-you-go.
Sec. 904.  Reports and orders.
Sec. 905.  Exempt programs and activities.
Sec. 906.  Exceptions, limitations, and special rules.
Sec. 907.  The baseline.
Sec. 907a.  Suspension in the event of war or low growth.
Sec. 907b.  Modification of Presidential order.
Sec. 907c.  Flexibility among defense programs, projects, and 
activities.
Sec. 907d.  Special reconciliation process.
Sec. 908.  Modification of Presidential order.
                         TITLE 2--THE CONGRESS

          * * * * * * *

    CHAPTER 6--CONGRESSIONAL AND COMMITTEE PROCEDURE; INVESTIGATIONS

SEC. 190D. LEGISLATIVE REVIEW BY STANDING COMMITTEES OF THE SENATE AND 
                    THE HOUSE OF REPRESENTATIVES.

  (a) Scope of Assistance.--In order to assist the Congress 
in--
          (1) its analysis, appraisal, and evaluation of the 
        application, administration, and execution of the laws 
        enacted by the Congress, and
          (2) its formulation, consideration, and enactment of 
        such modifications of or changes in those laws, and of 
        such additional legislation, as may be necessary or 
        appropriate,
each standing committee of the Senate and the House of 
Representatives shall review and study, on a continuing basis, 
the application, administration, and execution of those laws, 
or parts of laws, the subject matter of which is within the 
jurisdiction of that committee. Such committees may carry out 
the required analysis, appraisal, and evaluation themselves, or 
by contract, or may require a Government agency to do so and 
furnish a report thereon to the Congress. Such committees may 
rely on such techniques as pilot testing, analysis of costs in 
comparison with benefits, or provision for evaluation after a 
defined period of time.
  (b) Reports to the Senate and the House of Representatives.--
In each odd-numbered year beginning on or after January 1, 
1973, each standing committee of the Senate shall submit, not 
later than March 31, to the Senate, and each standing committee 
of the House shall submit, not later than January 2, to the 
House, a report on the activities of that committee under this 
section during the Congress ending at noon on January 3 of such 
year.
  (c) Exceptions.--The preceding provisions of this section do 
not apply to the Committees on Appropriations and the Budget of 
the Senate and the Committees on Appropriations, the Budget, 
House Administration, Rules, and Standards of Official Conduct 
of the House.
                         TITLE 2--THE CONGRESS

          * * * * * * *

                CHAPTER 17--CONGRESSIONAL BUDGET OFFICE

SEC. 601. ESTABLISHMENT.

  (a) In General.--
          (1) There is established an office of the Congress to 
        be known as the Congressional Budget Office 
        (hereinafter in this chapter referred to as the 
        ``Office''). The Office shall be headed by a Director; 
        and there shall be a Deputy Director who shall perform 
        such duties as may be assigned to him by the Director 
        and, during the absence or incapacity of the Director 
        or during a vacancy in that office, shall act as 
        Director.
          (2) The Director shall be appointed by the Speaker of 
        the House of Representatives and the President pro 
        tempore of the Senate after considering recommendations 
        received from the Committees on the Budget of the House 
        and the Senate, without regard to political affiliation 
        and solely on the basis of his fitness to perform his 
        duties. The Deputy Director shall be appointed by the 
        Director.
          (3) The term of office of the Director first 
        appointed shall expire at noon on January 3, 1979, and 
        the terms of office of Directors subsequently appointed 
        shall expire at noon on January 3 of each fourth year 
        thereafter. Any individual appointed as Director to 
        fill a vacancy prior to the expiration of a term shall 
        serve only for the unexpired portion of that term. An 
        individual serving as Director at the expiration of a 
        term may continue to serve until his successor is 
        appointed. Any Deputy Director shall serve until the 
        expiration of the term of office of the Director who 
        appointed him (and until his successor is appointed), 
        unless sooner removed by the Director.
          (4) The Director may be removed by either House by 
        resolution.
          (5) The Director shall receive compensation at a per 
        annum gross rate equal to the rate of basic pay, as in 
        effect from time to time, for level III of the 
        Executive Schedule in section 5314 of Title 5. The 
        Deputy Director shall receive compensation at a per 
        annum gross rate equal to the rate of basic pay, as so 
        in effect, for level IV of the Executive Schedule in 
        section 5315 of such title.
  (b) Personnel.--The Director shall appoint and fix the 
compensation of such personnel as may be necessary to carry out 
the duties and functions of the Office. All personnel of the 
Office shall be appointed without regard to political 
affiliation and solely on the basis of their fitness to perform 
their duties. The Director may prescribe the duties and 
responsibilities of the personnel of the Office, and delegate 
to them authority to perform any of the duties, powers, and 
functions imposed on the Office or on the Director. For 
purposes of pay (other than pay of the Director and Deputy 
Director) and employment benefits, rights, and privileges, all 
personnel of the Office shall be treated as if they were 
employees of the House of Representatives.
  (c) Experts and Consultants.--In carrying out the duties and 
functions of the Office, the Director may procure the temporary 
(not to exceed one year) or intermittent services of experts or 
consultants or organizations thereof by contract as independent 
contractors, or, in the case of individual experts or 
consultants, by employment at rates of pay not in excess of the 
daily equivalent of the highest rate of basic pay payable under 
the General Schedule of section 5332 of Title 5.
  (d) Relationship to Executive Branch.--The Director is 
authorized to secure information, data, estimates, and 
statistics directly from the various departments, agencies, and 
establishments of the executive branch of Government and the 
regulatory agencies and commissions of the Government. All such 
departments, agencies, establishments, and regulatory agencies 
and commissions shall furnish the Director any available 
material which he determines to be necessary in the performance 
of his duties and functions (other than material the disclosure 
of which would be a violation of law). The Director is also 
authorized, upon agreement with the head of any such 
department, agency, establishment, or regulatory agency or 
commission, to utilize its services, facilities, and personnel 
with or without reimbursement; and the head of each such 
department, agency, establishment, or regulatory agency or 
commission is authorized to provide the Office such services, 
facilities, and personnel.
  (e) Relationship to Other Agencies of Congress.--In carrying 
out the duties and functions of the Office, and for the purpose 
of coordinating the operations of the Office with those of 
other congressional agencies with a view to utilizing most 
effectively the information, services, and capabilities of all 
such agencies in carrying out the various responsibilities 
assigned to each, the Director is authorized to obtain 
information, data, estimates, and statistics developed by the 
General Accounting Office, the Library of Congress, and the 
Office of Technology Assessment, and (upon agreement with them) 
to utilize their services, facilities, and personnel with or 
without reimbursement. The Comptroller General, the Librarian 
of Congress, and the Technology Assessment Board are authorized 
to provide the Office with the information, data, estimates, 
and statistics, and the services, facilities, and personnel, 
referred to in the preceding sentence.
  (f) Redesignated (g)
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Office for each fiscal year such sums as 
may be necessary to enable it to carry out its duties and 
functions. Until sums are first appropriated pursuant to the 
preceding sentence, but for a period not exceeding 12 months 
following the effective date of this subsection, the expenses 
of the Office shall be paid from the contingent fund of the 
Senate, in accordance with section 68 of this title, and upon 
vouchers approved by the Director.
  (g) Revenue Estimates.--For the purposes of revenue 
legislation which is income, estate and gift, excise, and 
payroll taxes (i.e., Social Security), considered or enacted in 
any session of Congress, the Congressional Budget Office shall 
use exclusively during that session of Congress revenue 
estimates provided to it by the Joint Committee on Taxation. 
During that session of Congress such revenue estimates shall be 
transmitted by the Congressional Budget Office to any committee 
of the House of Representatives or the Senate requesting such 
estimates, and shall be used by such Committees in determining 
such estimates. The Budget Committees of the Senate and House 
shall determine all estimates with respect to scoring points of 
order and with respect to the execution of the purposes of this 
Act.

SEC. 602. DUTIES AND FUNCTIONS.

  (a) Assistance to Budget Committees.--It shall be the duty 
and function of the Office to provide to the Committees on the 
Budget of both Houses information which will assist such 
committees in the discharge of all matters within their 
jurisdictions, including (1) information with respect to the 
budget, appropriation bills, and other bills authorizing or 
providing new budget authority or tax expenditures, (2) 
information with respect to revenues, receipts, estimated 
future revenues and receipts, and changing revenue conditions, 
and (3) such related information as such Committees may 
request.
  (b) Assistance to Committees on Appropriations, Ways and 
Means, and Finance.--At the request of the Committee on 
Appropriations of either House, the Committee on Ways and Means 
of the House of Representatives, or the Committee on Finance of 
the Senate, the Office shall provide to such Committee any 
information which will assist it in the discharge of matters 
within its jurisdiction, including information described in 
clauses (1) and (2) of subsection (a) of this section and such 
related information as the Committee may request.
  (c) Assistance to Other Committees and Members.--
          (1) At the request of any other committee of the 
        House of Representatives or the Senate or any joint 
        committee of the Congress, the Office shall provide to 
        such committee or joint committee any information 
        compiled in carrying out clauses (1) and (2) of 
        subsection (a) of this section, and, to the extent 
        practicable, such additional information related to the 
        foregoing as may be requested.
          (2) At the request of any committee of the Senate or 
        the House of Representatives, the Office shall, to the 
        extent practicable, consult with and assist such 
        committee in analyzing the budgetary or financial 
        impact of any proposed legislation that have--
                  (A) a significant budgetary impact on State, 
                local, or Tribal government;
                  (B) a significant financial impact on the 
                private sector; or
                  (C) a significant employment impact on the 
                private sector.
          (3) At the request of any Member of the House or 
        Senate, the Office shall provide to such Member any 
        information compiled in carrying out clauses (1) and 
        (2) of subsection (a) of this section, and, to the 
        extent available, such additional information related 
        to the foregoing as may be requested.
  (d) Assignment of Office Personnel to Committees and Joint 
Committees.--At the request of the Committee on the Budget of 
either House, personnel of the Office shall be assigned, on a 
temporary basis, to assist such committee. At the request of 
any other committee of either House or any joint committee of 
the Congress, personnel of the Office may be assigned, on a 
temporary basis, to assist such committee or joint committee 
with respect to matters directly related to the applicable 
provisions of subsection (b) or (c) of this section.
  (e) Transfer of Functions of Joint Committee on Reduction of 
Federal Expenditures.--The duties, functions, and personnel of 
the Joint Committee on Reduction of Federal Expenditures are 
transferred to the Office, and the Joint Committee is 
abolished.
  (f) Reports to Budget Committees.--
          (1) On or before February 15 of each year, the 
        Director shall submit to the Committees on the Budget 
        of the House of Representatives and the Senate a 
        report, for the fiscal year commencing on October 1 of 
        that year, with respect to fiscal policy, including (A) 
        alternative levels of total revenues, total new budget 
        authority, and total outlays (including related 
        surpluses and deficits), and (B) the levels of tax 
        expenditures under existing law, taking into account 
        projected economic factors and any changes in such 
        levels based on proposals in the budget submitted by 
        the President for such fiscal year. Such report shall 
        also include a discussion of national budget 
        priorities, including alternative ways of allocating 
        new budget authority and budget outlays for such fiscal 
        year among major programs or functional categories, 
        taking into account how such alternative allocations 
        will meet major national needs and affect balanced 
        growth and development of the United States.
          (2) The Director shall from time to time submit to 
        the Committees on the Budget of the House of 
        Representatives and the Senate such further reports 
        (including reports revising the report required by 
        paragraph (1)) as may be necessary or appropriate to 
        provide such Committees with information, data, and 
        analyses for the performance of their duties and 
        functions.
          (3) On or before January 15 of each year, the 
        Director, after consultation with the appropriate 
        committees of the House of Representatives and Senate, 
        shall submit to the Congress a report listing (A) all 
        programs and activities funded during the fiscal year 
        ending September 30 of that calendar year for which 
        authorizations for appropriations have not been enacted 
        for that fiscal year, and (B) all programs and 
        activities for which authorizations for appropriations 
        have been enacted for the fiscal year ending September 
        30 of that calendar year, but for which no 
        authorizations for appropriations have been enacted for 
        the fiscal year beginning October 1 of that calendar 
        year.
  (g) Use of Computers and Other Techniques.--The Director may 
equip the Office with up-to-date computer capability (upon 
approval of the Committee on House Administration of the House 
of Representatives and the Committee on Rules and 
Administration of the Senate), obtain the services of experts 
and consultants in computer technology, and develop techniques 
for the evaluation of budgetary requirements.
  (h) Studies.
          (1) Continuing studies.--The Director of the 
        Congressional Budget Office shall conduct continuing 
        studies to enhance comparisons of budget outlays, 
        credit authority, and tax expenditures.
          (2) Federal mandated studies.--(A) At the request of 
        any Chairman or ranking member of the minority of a 
        Committee of the Senate or the House of 
        Representatives, the Director shall, to the extent 
        practicable, conduct a study of a legislative proposal 
        containing a Federal mandate.
          (B) In conducting a study on intergovernmental 
        mandates under subparagraph (A), the Director shall--
                  (i) solicit and consider information or 
                comments from elected officials (including 
                their designated representatives) of State, 
                local, or tribal governments as may provide 
                helpful information or comments;
                  (ii) consider establishing advisory panels of 
                elected officials or their designated 
                representatives, of State, local, or tribal 
                governments if the Director determines that 
                such advisory panels would be helpful in 
                performing responsibilities of the Director 
                under this section; and
                  (iii) if, and to the extent that the Director 
                determines that accurate estimates are 
                reasonably feasible, include estimates of--
                          (I) the future direct cost of the 
                        Federal mandate to the extent that such 
                        costs significantly differ from or 
                        extend beyond the 5-year period after 
                        the mandate is first effective; and
                          (II) any disproportionate budgetary 
                        effects of Federal mandates upon 
                        particular industries or sectors of the 
                        economy, States, regions, and urban or 
                        rural or other types of communities, as 
                        appropriate.
          (C) In conducting a study on private sector mandates 
        under subparagraph (A), the Director shall provide 
        estimates, if and to the extent that the Director 
        determines that such estimates are reasonably feasible, 
        of--
                  (i) future costs of Federal private sector 
                mandates to the extent that such mandates 
                differ significantly from or extend beyond the 
                5-year time period referred to in subparagraph 
                (b)(iii)(I);
                  (ii) any disproportionate financial effects 
                of Federal private sector mandates and of any 
                Federal financial assistance in the bill or 
                joint resolution upon any particular industries 
                or sectors of the economy, States, regions, and 
                urban or rural or other types of communities; 
                and
                  (iii) the effect of Federal private sector 
                mandates in the bill or joint resolution on the 
                national economy, including the effect on 
                productivity, economic growth, full employment, 
                creation of productive jobs, and international 
                competitiveness of United States goods and 
                services.

SEC. 603. PUBLIC ACCESS TO BUDGET DATA.

  (a) Right To Copy.--Except as provided in subsections (c) and 
(d) of this section, the Director shall make all information, 
data, estimates, and statistics obtained under section 601 (d) 
and (e) of this title available for public copying during 
normal business hours, subject to reasonable rules and 
regulations, and shall to the extent practicable, at the 
request of any person, furnish a copy of any such information, 
data, estimates, or statistics upon payment by such person of 
the cost of making and furnishing such copy.
  (b) Index.--The Director shall develop and maintain filing, 
coding, and indexing systems that identify the information, 
data, estimates, and statistics to which subsection (a) of this 
section applies and shall make such systems available for 
public use during normal business hours.
  (c) Exceptions.--Subsection (a) of this section shall not 
apply to information, data, estimates, and statistics--
          (1) which are specifically exempted from disclosure 
        by law; or
          (2) which the Director determines will disclose--
                  (A) matters necessary to be kept secret in 
                the interests of national defense or the 
                confidential conduct of the foreign relations 
                of the United States;
                  (B) information relating to trade secrets or 
                financial or commercial information pertaining 
                specifically to a given person if the 
                information has been obtained by the Government 
                on a confidential basis, other than through an 
                application by such person for a specific 
                financial or other benefit, and is required to 
                be kept secret in order to prevent undue injury 
                to the competitive position of such person; or
                  (C) personnel or medical data or similar data 
                the disclosure of which would constitute a 
                clearly unwarranted invasion of personal 
                privacy;
        unless the portions containing such matters, 
        information, or data have been excised.
  (d) Information Obtained for Committees and Members.--
Subsection (a) of this section shall apply to any information, 
data, estimates, and statistics obtained at the request of any 
committee, joint committee, or Member unless such committee, 
joint committee, or Member has instructed the Director not to 
make such information, data, estimates, or statistics available 
for public copying.

SEC. 604. OMITTED.

SEC. 605. SALE OR LEASE OF PROPERTY, SUPPLIES, OR SERVICES.

  Any sale or lease of property, supplies, or services to the 
Congressional Budget Office shall be deemed to be a sale or 
lease of such property, supplies, or services to the Congress 
subject to section 111b of this title.

SEC. 606. DISPOSITION OF SURPLUS OR OBSOLETE PROPERTY.

  The Director of the Congressional Budget Office shall have 
the authority, within the limits of available appropriations, 
to dispose of surplus or obsolete personal property by inter-
agency transfer, donation, or discarding.
                         TITLE 2--THE CONGRESS

          * * * * * * *

        CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS

SEC. 621. CONGRESSIONAL DECLARATION OF PURPOSE.

  The Congress declares that it is essential--
          (1) to assure effective congressional control over 
        the budgetary process;
          (2) to provide for the congressional determination 
        each year of the appropriate level of Federal revenues 
        and expenditures;
          (3) to provide a system of impoundment control;
          (4) to establish national budget priorities; and
          (5) to provide for the furnishing of information by 
        the executive branch in a manner that will assist the 
        Congress in discharging its duties.

                                  NOTE

    Multiyear Authorizations and 2-Year Appropriations for Selected 
                         Agencies and Accounts

  Pub. L. 100-119, Title II, Sec. 201, Sept. 29, 1987, 101 
Stat. 784, provided that: ``It is the sense of the Congress 
that the Congress should undertake an experiment with multiyear 
authorizations and 2-year appropriations for selected agencies 
and accounts. An evaluation of the efficacy and desirability of 
such experiment should be conducted at the end of the 2-year 
period. The appropriate committees are directed to develop a 
plan in consultation with the leadership of the House and 
Senate to implement this experiment.''

                      Financial Management Reform

  Pub. L. 100-119, Title II, Sec. 203, Sept. 29, 1987, 101 
Stat. 784, provided that: ``It is the sense of the Congress 
that the Congress should undertake a coordinated effort to 
identify problems and develop specific recommendations to 
reform the financial management systems of the United States 
Government, including consideration of the use of generally 
accepted accounting principles.''

SEC. 622. DEFINITIONS.

  For purposes of this Act--
          (1) The terms ``budget outlays'' and ``outlays'' 
        mean, with respect to any fiscal year, expenditures and 
        net lending of funds under budget authority during such 
        year.
          (2) Budget authority and new budget authority--
                  (A) In general.--The term ``budget 
                authority'' means the authority provided by 
                Federal law to incur financial obligations, as 
                follows:
                          (i) provisions of law that make funds 
                        available for obligation and 
                        expenditure (other than borrowing 
                        authority), including the authority to 
                        obligate and expend the proceeds of 
                        offsetting receipts and collections;
                          (ii) borrowing authority, which means 
                        authority granted to a Federal entity 
                        to borrow and obligate and expend the 
                        borrowed funds, including through the 
                        issuance of promissory notes or other 
                        monetary credits;
                          (iii) contract authority, which means 
                        the making of funds available for 
                        obligation but not for expenditure; and
                          (iv) offsetting receipts and 
                        collections as negative budget 
                        authority, and the reduction thereof as 
                        positive budget authority.
                  (B) Limitations on budget authority.--With 
                respect to the Federal Hospital Insurance Trust 
                Fund, the Supplementary Medical Insurance Trust 
                Fund, the Unemployment Trust Fund, and the 
                railroad retirement account, any amount that is 
                precluded from obligation in a fiscal year by a 
                provision of law (such as a limitation or a 
                benefit formula) shall not be budget authority 
                in that year.
                  (C) New budget authority.--The term ``new 
                budget authority'' means, with respect to a 
                fiscal year--
                          (i) budget authority that first 
                        becomes available for obligation in 
                        that year, including budget authority 
                        that becomes available in that year as 
                        a result of a reappropriation; or
                          (ii) a change in any account in the 
                        availability of unobligated balances of 
                        budget authority carried over from a 
                        prior year, resulting from a provision 
                        of law first effective in that year;
                and includes a change in the estimated level of 
                new budget authority provided in indefinite 
                amounts by existing law.
          (3) The term ``tax expenditures'' means those revenue 
        losses attributable to provisions of the Federal tax 
        laws which allow a special exclusion, exemption, or 
        deduction from gross income or which provide a special 
        credit, a preferential rate of tax, or a deferral of 
        tax liability; and the term ``tax expenditures budget'' 
        means an enumeration of such tax expenditures.
          (4) The term ``concurrent resolution on the budget'' 
        means--
                  (A) a concurrent resolution setting forth the 
                congressional budget for the United States 
                Government for a fiscal year as provided in 
                section 632 of this title; and
                  (B) any other concurrent resolution revising 
                the congressional budget for the United States 
                Government for a fiscal year as described in 
                section 635 of this title.
          (5) The term ``appropriation Act'' means an Act 
        referred to in section 105 of Title 1.
          (6) The term ``deficit'' means, with respect to a 
        fiscal year, the amount by which outlays exceeds 
        receipts during that year.
          (7) The term ``surplus'' means, with respect to a 
        fiscal year, the amount by which receipts exceeds 
        outlays during that year.
          (8) The term ``government-sponsored enterprise'' 
        means a corporate entity created by a law of the United 
        States that--
                  (A)(i) has a Federal charter authorized by 
                law;
                  (ii) is privately owned, as evidenced by 
                capital stock owned by private entities or 
                individuals;
                  (iii) is under the direction of a board of 
                directors, a majority of which is elected by 
                private owners;
                  (iv) is a financial institution with power 
                to--
                          (I) make loans or loan guarantees for 
                        limited purposes such as to provide 
                        credit for specific borrowers or one 
                        sector; and
                          (II) raise funds by borrowing (which 
                        does not carry the full faith and 
                        credit of the Federal Government) or to 
                        guarantee the debt of others in 
                        unlimited amounts; and
                  (B)(i) does not exercise powers that are 
                reserved to the Government as sovereign (such 
                as the power to tax or to regulate interstate 
                commerce);
                  (ii) does not have the power to commit the 
                Government financially (but it may be a 
                recipient of a loan guarantee commitment made 
                by the Government); and
                  (iii) has employees whose salaries and 
                expenses are paid by the enterprise and are not 
                Federal employees subject to Title 5.
          (9) the term ``entitlement authority'' means spending 
        authority described by section 401(c)(2)(C) [2 U.S.C.A. 
        Sec. 651(c)(2)(C)].
          (10) The term ``credit authority'' means authority to 
        incur direct loan obligations or to incur primary loan 
        guarantee commitments.

SEC. 623. CONTINUING STUDY OF ADDITIONAL BUDGET REFORM PROPOSALS.

  (a) The Committees on the Budget of the House of 
Representatives and the Senate shall study on a continuing 
basis proposals designed to improve and facilitate methods of 
congressional budgetmaking. The proposals to be studied shall 
include, but are not limited to, proposals for--
          (1) improving the information base required for 
        determining the effectiveness of new programs by such 
        means as pilot testing, survey research, and other 
        experimental and analytical techniques;
          (2) improving analytical and systematic evaluation of 
        the effectiveness of existing programs;
          (3) establishing maximum and minimum time limitations 
        for program authorization; and
          (4) developing techniques of human resource 
        accounting and other means of providing noneconomic as 
        well as economic evaluation measures.
  (b) The Committee on the Budget of each House shall, from 
time to time, report to its House the results of the study 
carried on by it under subsection (a) of this section, together 
with its recommendations.
  (c) Nothing in this section shall preclude studies to improve 
the budgetary process by any other committee of the House of 
Representatives or the Senate or any joint committee of the 
Congress.
                         TITLE 2--THE CONGRESS

          * * * * * * *

        CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS

               Subchapter I--Congressional Budget Process

SEC. 631. TIMETABLE.

  The timetable with respect to the congressional budget 
process for any fiscal year is as follows:

------------------------------------------------------------------------
           On or before                    Action to be completed       
------------------------------------------------------------------------
First Monday in February.........  President submits his budget.        
February 15......................  Congressional Budget Office submits  
                                    report to Budget Committees.        
February 25......................  Committees submit views and estimates
                                    to Budget Committees.               
April 1..........................  Senate Budget Committee reports      
                                    concurrent resolution on the budget.
April 15.........................  Congress completes action on         
                                    concurrent resolution on the budget.
May 15...........................  Annual appropriation bills may be    
                                    considered in the House.            
June 10..........................  House Appropriations Committee       
                                    reports last annual appropriation   
                                    bill.                               
June 15..........................  Congress completes action on         
                                    reconciliation legislation.         
June 30..........................  House completes action on annual     
                                    appropriation bills.                
October 1........................  Fiscal year begins.                  
------------------------------------------------------------------------

SEC. 632. ANNUAL ADOPTION OF CONCURRENT RESOLUTION ON THE BUDGET.

  (a) Content of Concurrent Resolution on the Budget.--On or 
before April 15 of each year, the Congress shall complete 
action on a concurrent resolution on the budget for the fiscal 
year beginning on October 1 of such year. The concurrent 
resolution shall set forth appropriate levels for the fiscal 
year beginning on October 1 of such year, and planning levels 
for each of the two ensuing fiscal years, for the following--
          (1) totals of new budget authority, budget outlays, 
        direct loan obligations, and primary loan guarantee 
        commitments;
          (2) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be 
        reported by the appropriate committees;
          (3) the surplus or deficit in the budget;
          (4) new budget authority, budget outlays, direct loan 
        obligations, and primary loan guarantee commitments for 
        each major functional category, based on allocations of 
        the total levels set forth pursuant to paragraph (1);
          (5) the public debt;
          (6) for purposes of Senate enforcement under this 
        subchapter, outlays of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act [42 U.S.C.A. Sec. 401 et 
        seq.] for the fiscal year of the resolution and for 
        each of the 4 succeeding fiscal years; and
          (7) for purposes of Senate enforcement under this 
        subchapter, revenues of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act [42 U.S.C.A. Sec. 401 et 
        seq.] (and the related provisions of the Internal 
        Revenue Code of 1986) for the fiscal year of the 
        resolution and for each of the 4 succeeding fiscal 
        years.
  The concurrent resolution shall not include the outlays and 
revenue totals of the old age, survivors, and disability 
insurance program established under title II of the Social 
Security Act [42 U.S.C.A. Sec. 401 et seq.] or the related 
provisions of the Internal Revenue Code of 1986 in the surplus 
or deficit totals required by this subsection or in any other 
surplus or deficit totals required by this subchapter.
  (b) Additional Matters in Concurrent Resolution.--The 
concurrent resolution on the budget may--
          (1) set forth, if required by subsection (f) of this 
        section, the calendar year in which, in the opinion of 
        the Congress, the goals for reducing unemployment set 
        forth in section 4(b) of the Employment Act of 1946 [15 
        U.S.C.A. Sec. 1022a(b)] should be achieved;
          (2) include reconciliation directives described in 
        section 641 of this title;
          (3) require a procedure under which all or certain 
        bills or resolutions providing new budget authority or 
        new entitlement authority for such fiscal year shall 
        not be enrolled until the Congress has completed action 
        on any reconciliation bill or reconciliation resolution 
        or both required by such concurrent resolution to be 
        reported in accordance with section 641(b) of this 
        title;
          (4) set forth such other matters, and require such 
        other procedures, relating to the budget, as may be 
        appropriate to carry out the purposes of this Act;
          (5) include a heading entitled ``Debt Increase as 
        Measure of Deficit'' in which the concurrent resolution 
        shall set forth the amounts by which the debt subject 
        to limit (in section 3101 of Title 31) has increased or 
        would increase in each of the relevant fiscal years;
          (6) include a heading entitled ``Display of Federal 
        Retirement Trust Fund Balances'' in which the 
        concurrent resolution shall set forth the balances of 
        the Federal retirement trust funds;
          (7) set forth pay-as-you-go procedures for the Senate 
        whereby--
                  (A) budget authority and outlays may be 
                allocated to a committee for legislation that 
                increases funding for entitlement and mandatory 
                spending programs within its jurisdiction if 
                that committee or the committee of conference 
                on such legislation reports such legislation, 
                if, to the extent that the costs of such 
                legislation are not included in the concurrent 
                resolution on the budget, the enactment of such 
                legislation will not increase the deficit (by 
                virtue of either deficit reduction in the bill 
                or previously passed deficit reduction) in the 
                resolution for the first fiscal year covered by 
                the concurrent resolution on the budget, and 
                will not increase the total deficit for the 
                period of fiscal years covered by the 
                concurrent resolution on the budget;
                  (B) upon the reporting of legislation 
                pursuant to subparagraph (A), and again upon 
                the submission of a conference report on such 
                legislation (if a conference report is 
                submitted), the chairman of the Committee on 
                the Budget of the Senate may file with the 
                Senate appropriately revised allocations under 
                section 633(a) of this title and revised 
                functional levels and aggregates to carry out 
                this paragraph;
                  (C) such revised allocations, functional 
                levels, and aggregates shall be considered for 
                the purposes of this Act as allocations, 
                functional levels, and aggregates contained in 
                the concurrent resolution on the budget; and
                  (D) the appropriate committee shall report 
                appropriately revised allocations pursuant to 
                section 633(b) to carry out this paragraph; and
          (8) set forth procedures to effectuate pay-as-you-go 
        in the House of Representatives.
  (c) Consideration of Procedures or Matters Which Have Effect 
of Changing Any Rule of House of Representatives.--If the 
Committee on the Budget of the House of Representatives reports 
any concurrent resolution on the budget which includes any 
procedure or matter which has the effect of changing any rule 
of the House of Representatives, such concurrent resolution 
shall then be referred to the Committee on Rules with 
instructions to report it within five calendar days (not 
counting any day on which the House is not in session). The 
Committee on Rules shall have jurisdiction to report any 
concurrent resolution referred to it under this paragraph with 
an amendment or amendments changing or striking out any such 
procedure or matter.
  (d) Views and Estimates of Other Committees.--
  Within 6 weeks after the President submits a budget under 
section 1105(a)(1) of Title 31, each committee of the House of 
Representatives having legislative jurisdiction shall submit to 
the Committee on the Budget of the House and each committee of 
the Senate having legislative jurisdiction shall submit to the 
Committee on the Budget of the Senate its views and estimates 
(as determined by the committee making such submission) with 
respect to all matters set forth in subsections (a) and (b) of 
this section which relate to matters within the jurisdiction or 
functions of such committee. The Joint Economic Committee shall 
submit to the Committees on the Budget of both Houses its 
recommendations as to the fiscal policy appropriate to the 
goals of the Employment Act of 1946 [15 U.S.C.A. Sec. 1021 et 
seq.]. Any other committee of the House of Representatives or 
the Senate may submit to the Committee on the Budget of its 
House, and any joint committee of the Congress may submit to 
the Committees on the Budget of both Houses, its views and 
estimates with respect to all matters set forth in subsections 
(a) and (b) of this section which relate to matters within its 
jurisdiction or functions.
  (e) Hearings and Report.--In developing the concurrent 
resolution on the budget referred to in subsection (a) of this 
section for each fiscal year, the Committee on the Budget of 
each House shall hold hearings and shall receive testimony from 
Members of Congress and such appropriate representatives of 
Federal departments and agencies, the general public, and 
national organizations as the committee deems desirable. Each 
of the recommendations as to short-term and medium-term goals 
set forth in the report submitted by the members of the Joint 
Economic Committee under subsection (d) of this section may be 
considered by the Committee on the Budget of each House as part 
of its consideration of such concurrent resolution, and its 
report may reflect its views thereon, including its views on 
how the estimates of revenues and levels of budget authority 
and outlays set forth in such concurrent resolution are 
designed to achieve any goals it is recommending. The report 
accompanying such concurrent resolution shall include, but not 
be limited to--
          (1) a comparison of revenues estimated by the 
        committee with those estimated in the budget submitted 
        by the President;
          (2) a comparison of the appropriate levels of total 
        budget outlays and total new budget authority, total 
        direct loan obligations, total primary loan guarantee 
        commitments, as set forth in such concurrent 
        resolution, with those estimated or requested in the 
        budget submitted by the President;
          (3) with respect to each major functional category, 
        an estimate of budget outlays and an appropriate level 
        of new budget authority for all proposed programs and 
        for all existing programs (including renewals thereof), 
        with the estimate and level for existing programs being 
        divided between permanent authority and funds provided 
        in appropriation Acts, and with each such division 
        being subdivided between controllable amounts and all 
        other amounts;
          (4) an allocation of the level of Federal revenues 
        recommended in the concurrent resolution among the 
        major sources of such revenues;
          (5) the economic assumptions and objectives which 
        underlie each of the matters set forth in such 
        concurrent resolution and any alternative economic 
        assumptions and objectives which the committee 
        considered;
          (6) projections (not limited to the following), for 
        the period of five fiscal years beginning with such 
        fiscal year, of the estimated levels of total budget 
        outlays and total new budget authority, the estimated 
        revenues to be received, and the estimated surplus or 
        deficit, if any, for each fiscal year in such period, 
        and the estimated levels of tax expenditures (the tax 
        expenditures budget) by major functional categories;
          (7) a statement of any significant changes in the 
        proposed levels of Federal assistance to State and 
        local governments;
          (8) information, data, and comparisons indicating the 
        manner in which, and the basis on which, the committee 
        determined each of the matters set forth in the 
        concurrent resolution;
          (9) allocations described in section 633(a) of this 
        title.
          (10) Omitted.
  (f) Achievement of Goals for Reducing Unemployment.--
          (1) If, pursuant to section 4(c) of the Employment 
        Act of 1946 [15 U.S.C.A. Sec. 1022a(c)], the President 
        recommends in the Economic Report that the goals for 
        reducing unemployment set forth in section 4(b) of such 
        Act [15 U.S.C.A. Sec. 1022a(b)] be achieved in a year 
        after the close of the five-year period prescribed by 
        such subsection, the concurrent resolution on the 
        budget for the fiscal year beginning after the date on 
        which such Economic Report is received by the Congress 
        may set forth the year in which, in the opinion of the 
        Congress, such goals can be achieved.
          (2) After the Congress has expressed its opinion 
        pursuant to paragraph (1) as to the year in which the 
        goals for reducing unemployment set forth in section 
        4(b) of the Employment Act of 1946 [15 U.S.C.A. Sec. 
        1022a(b)] can be achieved, if, pursuant to section 4(e) 
        of such Act [15 U.S.C.A. Sec. 1022a(e)], the President 
        recommends in the Economic Report that such goals be 
        achieved in a year which is different from the year in 
        which the Congress has expressed its opinion that such 
        goals should be achieved, either in its action pursuant 
        to paragraph (1) or in its most recent action pursuant 
        to this paragraph, the concurrent resolution on the 
        budget for the fiscal year beginning after the date on 
        which such Economic Report is received by the Congress 
        may set forth the year in which, in the opinion of the 
        Congress, such goals can be achieved.
          (3) It shall be in order to amend the provision of 
        such resolution setting forth such year only if the 
        amendment thereto also proposes to alter the estimates, 
        amounts, and levels (as described in subsection (a) of 
        this section) set forth in such resolution in germane 
        fashion in order to be consistent with the economic 
        goals (as described in sections 3(a)(2) [15 U.S.C.A. 
        Sec. 1022(a)(2)] and 4(b) [15 U.S.C.A. Sec. 1022a(b)] 
        of the Employment Act of 1946) which such amendment 
        proposes can be achieved by the year specified in such 
        amendment.
  (g) Economic Assumptions.--
          (1) It shall not be in order in the Senate to 
        consider any concurrent resolution on the budget for a 
        fiscal year, or any amendment thereto, or any 
        conference report thereon, that sets forth amounts and 
        levels that are determined on the basis of more than 
        one set of economic and technical assumptions.
          (2) The joint explanatory statement accompanying a 
        conference report on a concurrent resolution on the 
        budget shall set forth the common economic assumptions 
        upon which such joint statement and conference report 
        are based, or upon which any amendment contained in the 
        joint explanatory statement to be proposed by the 
        conferees in the case of technical disagreement, is 
        based.
          (3) Subject to periodic reestimation based on changed 
        economic conditions or technical estimates, 
        determinations under titles III [2 U.S.C.A. Sec. 631 et 
        seq.] and IV [2 U.S.C.A. Sec. 651 et seq.] of the 
        Congressional Budget Act of 1974 shall be based upon 
        such common economic and technical assumptions.
  (h) Budget Committee's Consultation With Committees.--The 
Committee on the Budget of the House of Representatives shall 
consult with the committees of its House having legislative 
jurisdiction during the preparation, consideration, and 
enforcement of the concurrent resolution on the budget with 
respect to all matters which relate to the jurisdiction or 
functions of such committees.
  (i) Maximum Deficit Amount May Not Be Exceeded.--It shall not 
be in order in the Senate to consider any concurrent resolution 
on the budget as reported to the Senate that would decrease the 
excess of social security revenues over social security outlays 
in any of the fiscal years covered by the concurrent 
resolution. No change in chapter 1 of the Internal Revenue Code 
of 1986 [26 U.S.C.A. Sec. 1 et seq.] shall be treated as 
affecting the amount of social security revenues unless such 
provision changes the income tax treatment of social security 
benefits.

                                   NOTE

             Exclusion of Social Security from All Budgets

    Section 13301(a) of Pub. L. 101-508 provided that:
    ``Notwithstanding any other provision of law, the receipts 
and disbusements of the Federal Old-Age and Survivors Insurance 
Trust Fund and the Federal Disability Insurance Trust Fund 
shall not be counted as new budget authority, outlays, 
receipts, or deficit or surplus for purposes of--
          ``(1) the budget of the United States Government as 
        submitted by the President,
          ``(2) the congressional budget, or
          ``(3) the Balanced Budget and Emergency Deficit 
        Control Act of 1985 [Pub. L. 99-177, Title II, Dec. 12, 
        1985, 99 Stat. 1038].''

SEC. 633. COMMITTEE ALLOCATIONS.

  (a) Allocation of Totals.--(1) For the House of 
Representatives, the joint explanatory statement accompanying a 
conference report on a concurrent resolution on the budget 
shall include an estimated allocation, based upon such 
concurrent resolution as recommended in such conference report, 
of the appropriate levels of total budget outlays, total new 
budget authority, and total entitlement authority among each 
committee of the House of Representatives which has 
jurisdiction over laws, bills and resolutions providing such 
new budget authority, or such entitlement authority. The 
allocation shall, for each committee, divide new budget 
authority, and entitlement authority between amounts provided 
or required by law on the date of such conference report 
(mandatory or uncontrollable amounts), and amounts not so 
provided or required (discretionary or controllable amounts), 
and shall make the same division for estimated outlays that 
would result from such new budget authority.
  (2) For the Senate, the joint explanatory statement 
accompanying a conference report on a concurrent resolution on 
the budget shall include an estimated allocation, based upon 
such concurrent resolution as recommended in such conference 
report, of the appropriate levels of social security outlays 
for the fiscal year of the resolution and for each of the 4 
succeeding fiscal years, total budget outlays and total new 
budget authority among each committee of the Senate which has 
jurisdiction over bills and resolutions providing such new 
budget authority.
  (b) Reports by Committees.--As soon as practicable after a 
concurrent resolution on the budget is agreed to--
          (1) the Committee on Appropriations of each House 
        shall, after consulting with the Committee on 
        Appropriations of the other House, (A) subdivide among 
        its subcommittees the allocation of budget outlays and 
        new budget authority allocated to it in the joint 
        explanatory statement accompanying the conference 
        report on such concurrent resolution, and (B) further 
        subdivide the amount with respect to each such 
        subcommittee between controllable amounts and all other 
        amounts; and
          (2) every other committee of the House and Senate to 
        which an allocation was made in such joint explanatory 
        statement shall, after consulting with the committee or 
        committees of the other House to which all or part of 
        its allocation was made, (A) subdivide such allocation 
        among its subcommittees or among programs over which it 
        has jurisdiction, and (B) further subdivide the amount 
        with respect to each subcommittee or program between 
        controllable amounts and all other amounts.
Each such committee shall promptly report to its House the 
subdivisions made by it pursuant to this subsection.
  (c) Point of Order.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report, 
providing--
          (1) new budget authority for a fiscal year; or
          (2) new spending authority as described in section 
        651(c)(2) of this title for a fiscal year
within the jurisdiction of any committee which has received an 
appropriate allocation of such authority pursuant to subsection 
(a) of this section for such fiscal year, unless and until such 
committee makes the allocation or subdivisions required by 
subsection (b) of this section, in connection with the most 
recently agreed to concurrent resolution on the budget for such 
fiscal year.
  (d) Subsequent Concurrent Resolutions.--In the case of a 
concurrent resolution on the budget referred to in section 635 
of this title, the allocations under subsection (a) of this 
section and the subdivisions under subsection (b) of this 
section shall be required only to the extent necessary to take 
into account revisions made in the most recently agreed to 
concurrent resolution on the budget.
  (e) Alteration of Allocations.--At any time after a committee 
reports the allocations required to be made under subsection 
(b) of this section, such committee may report to its House an 
alteration of such allocations. Any alteration of such 
allocations must be consistent with any actions already taken 
by its House on legislation within the committee's 
jurisdiction.
  (f) Legislation Subject to Point of Order.--
          (1) In house of representatives.--After the Congress 
        has completed action on a concurrent resolution on the 
        budget for a fiscal year, it shall not be in order in 
        the House of Representatives to consider any bill, 
        joint resolution, or amendment providing new budget 
        authority for such fiscal year or new entitlement 
        authority effective during such fiscal year, or any 
        conference report on any such bill or joint resolution, 
        if--
                  (A) the enactment of such bill or resolution 
                as reported;
                  (B) the adoption and enactment of such 
                amendment; or
                  (C) the enactment of such bill or resolution 
                in the form recommended in such conference 
                report,
        would cause the appropriate allocation made pursuant to 
        subsection (b) of this section for such fiscal year of 
        new discretionary budget authority or new entitlement 
        authority to be exceeded.
          (2) In senate.--At any time after the Congress has 
        completed action on the concurrent resolution on the 
        budget required to be reported under section 632(a) of 
        this title for a fiscal year, it shall not be in order 
        in the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report, that provides 
        for budget outlays, new budget authority, or new 
        spending authority (as defined in section 651(c)(2) of 
        this title) in excess of (A) the appropriate allocation 
        of such outlays or authority reported under subsection 
        (a) of this section, or (B) the appropriate allocation 
        (if any) of such outlays or authority reported under 
        subsection (b) of this section in connection with the 
        most recently agreed to concurrent resolution on the 
        budget for such fiscal year or provides for social 
        security outlays in excess of the appropriate 
        allocation of social security outlays under subsection 
        (a) of this section for the fiscal year of the 
        resolution or for the total of that year and the 4 
        succeeding fiscal years. Subparagraph (A) shall not 
        apply to any bill, resolution, amendment, motion, or 
        conference report that is within the jurisdiction of 
        the Committee on Appropriations. In applying this 
        paragraph--
                  (A) estimated social security outlays shall 
                be deemed to be reduced by the excess of 
                estimated social security revenues (including 
                social security revenues provided for in the 
                bill, resolution, amendment, or conference 
                report with respect to which this paragraph is 
                applied) over the appropriate level of social 
                security revenues specified in the most 
                recently adopted concurrent resolution on the 
                budget;
                  (B) estimated social security outlays shall 
                be deemed increased by the shortfall of 
                estimated social security revenues (including 
                social security revenues provided for in the 
                bill, resolution, amendment, or conference 
                report with respect to which this paragraph is 
                applied) below the appropriate level of social 
                security revenues specified in the most 
                recently adopted concurrent resolution on the 
                budget; and
                  (C) no provision of any bill or resolution, 
                or any amendment thereto or conference report 
                thereon, involving a change in chapter 1 of 
                Title 26 shall be treated as affecting the 
                amount of social security revenues unless such 
                provision changes the income tax treatment of 
                social security benefits.
        The Chairman of the Committee on the Budget of the 
        Senate may file with the Senate appropriately revised 
        allocations under subsection (a) of this section and 
        revised functional levels and aggregates to reflect the 
        application of the preceding sentence. Such revised 
        allocations, functional levels, and aggregates shall be 
        considered as allocations, functional levels, and 
        aggregates contained in the most recently agreed to 
        concurrent resolution on the budget, and the 
        appropriate committees shall report revised allocations 
        pursuant to subsection (b) of this section.
  (g) Determinations by Budget Committees.--For purposes of 
this section, the levels of new budget authority, spending 
authority as described in section 651(c)(2) of this title, 
outlays, and new credit authority for a fiscal year shall be 
determined on the basis of estimates made by the Committee on 
the Budget of the House of Representatives or the Senate, as 
the case may be.

SEC. 634. ADOPTION OF FIRST CONCURRENT RESOLUTION ON THE BUDGET PRIOR 
                    TO CONSIDERATION OF LEGISLATION PROVIDING NEW 
                    BUDGET AUTHORITY, NEW SPENDING AUTHORITY, NEW 
                    CREDIT AUTHORITY, OR CHANGES IN REVENUES OR PUBLIC 
                    DEBT LIMIT.

  (a) In General.--It shall not be in order in either the House 
of Representatives or the Senate to consider any bill, joint 
resolution, amendment, motion, or conference report as reported 
to the House or Senate which provides--
          (1) new budget authority for a fiscal year;
          (2) an increase or decrease in revenues to become 
        effective during a fiscal year;
          (3) an increase or decrease in the public debt limit 
        to become effective during a fiscal year;
          (4) new entitlement authority to become effective 
        during a fiscal year;
          (5) in the Senate only, new spending authority (as 
        defined in section 651(c)(2) of this title) for a 
        fiscal year; or
          (6) in the Senate only, outlays,
until the concurrent resolution on the budget for such fiscal 
year (or, in the Senate, a concurrent resolution on the budget 
covering such fiscal year) has been agreed to pursuant to 
section 632 of this title.
  (b) Exceptions.--
          (1) In the House of Representatives, subsection (a) 
        of this section does not apply to any bill or 
        resolution--
                  (A) providing new budget authority which 
                first becomes available in a fiscal year 
                following the fiscal year to which the 
                concurrent resolution applies; or
                  (B) increasing or decreasing revenues which 
                first become effective in a fiscal year 
                following the fiscal year to which the 
                concurrent resolution applies.
        After May 15 of any calendar year, subsection (a) of 
        this section does not apply in the House of 
        Representatives to any general appropriation bill, or 
        amendment thereto, which provides new budget authority 
        for the fiscal year beginning in such calendar year.
          (2) In the Senate, subsection (a) of this section 
        does not apply to any bill or resolution making advance 
        appropriations for the fiscal year to which the 
        concurrent resolution applies and the two succeeding 
        fiscal years.
  (c) Waiver in Senate.--
          (1) The committee of the Senate which reports any 
        bill or resolution (or amendment thereto) to which 
        subsection (a) of this section applies may at or after 
        the time it reports such bill or resolution (or 
        amendment), report a resolution to the Senate (A) 
        providing for the waiver of subsection (a) of this 
        section with respect to such bill or resolution (or 
        amendment), and (B) stating the reasons why the waiver 
        is necessary. The resolution shall then be referred to 
        the Committee on the Budget of the Senate. That 
        committee shall report the resolution to the Senate 
        within 10 days after the resolution is referred to it 
        (not counting any day on which the Senate is not in 
        session) beginning with the day following the day on 
        which it is so referred, accompanied by that 
        committee's recommendations and reasons for such 
        recommendations with respect to the resolution. If the 
        committee does not report the resolution within such 
        10-day period, it shall automatically be discharged 
        from further consideration of the resolution and the 
        resolution shall be placed on the calendar.
          (2) During the consideration of any such resolution, 
        debate shall be limited to one hour, to be equally 
        divided between, and controlled by, the majority leader 
        and minority leader or their designees, and the time on 
        any debatable motion or appeal shall be limited to 
        twenty minutes, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        resolution. In the event the manager of the resolution 
        is in favor of any such motion or appeal, the time in 
        opposition thereto shall be controlled by the minority 
        leader or his designee. Such leaders, or either of 
        them, may, from the time under their control on the 
        passage of such resolution, allot additional time to 
        any Senator during the consideration of any debatable 
        motion or appeal. No amendment to the resolution is in 
        order.
          (3) If, after the Committee on the Budget has 
        reported (or been discharged from further consideration 
        of) the resolution, the Senate agrees to the 
        resolution, then subsection (a) of this section shall 
        not apply with respect to the bill or resolution (or 
        amendment thereto) to which the resolution so agreed to 
        applies.

SEC. 635. PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE 
                    BUDGET.

  (a) In General.--At any time after the concurrent resolution 
on the budget for a fiscal year has been agreed to pursuant to 
section 632 of this title, and before the end of such fiscal 
year, the two Houses may adopt a concurrent resolution on the 
budget which revises or reaffirms the concurrent resolution on 
the budget for such fiscal year most recently agreed to.
  (b) Economic Assumptions.--The provisions of section 632(g) 
of this title shall apply with respect to concurrent 
resolutions on the budget under this section (and amendments 
thereto and conference reports thereon) in the same way they 
apply to concurrent resolutions on the budget under such 
section 632(g) of this title (and amendments thereto and 
conference reports thereon).

SEC. 636. CONSIDERATION OF CONCURRENT RESOLUTIONS ON THE BUDGET.

  (a) Procedure in House of Representatives After Report of 
Committee; Debate.--
          (1) When the Committee on the Budget of the House of 
        Representatives has reported any concurrent resolution 
        on the budget, it is in order at any time after the 
        fifth day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which the report upon 
        such resolution by the Committee on the Budget has been 
        available to Members of the House and, if applicable, 
        after the first day (excluding Saturdays, Sundays, and 
        legal holidays) following the day on which a report 
        upon such resolution by the Committee on Rules pursuant 
        to section 632(c) of this title has been available to 
        Members of the House (even though a previous motion to 
        the same effect has been disagreed to) to move to 
        proceed to the consideration of the concurrent 
        resolution. The motion is highly privileged and is not 
        debatable. An amendment to the motion is not in order, 
        and it is not in order to move to reconsider the vote 
        by which the motion is agreed to or disagreed to.
          (2) General debate on any concurrent resolution on 
        the budget in the House of Representatives shall be 
        limited to not more than 10 hours, which shall be 
        divided equally between the majority and minority 
        parties, plus such additional hours of debate as are 
        consumed pursuant to paragraph (3). A motion further to 
        limit debate is not debatable. A motion to recommit the 
        concurrent resolution is not in order, and it is not in 
        order to move to reconsider the vote by which the 
        concurrent resolution is agreed to or disagreed to.
          (3) Following the presentation of opening statements 
        on the concurrent resolution on the budget for a fiscal 
        year by the chairman and ranking minority member of the 
        Committee on the Budget of the House, there shall be a 
        period of up to four hours for debate on economic goals 
        and policies.
          (4) Only if a concurrent resolution on the budget 
        reported by the Committee on the Budget of the House 
        sets forth the economic goals (as described in sections 
        1022(a) and 1022a(b) of Title 15) which the estimates, 
        amounts, and levels (as described in section 632(a) of 
        this title) set forth in such resolution are designed 
        to achieve, shall it be in order to offer to such 
        resolution an amendment relating to such goals, and 
        such amendment shall be in order only if it also 
        proposes to alter such estimates, amounts, and levels 
        in germane fashion in order to be consistent with the 
        goals proposed in such amendment.
          (5) Consideration of any concurrent resolution on the 
        budget by the House of Representatives shall be in the 
        Committee of the Whole, and the resolution shall be 
        considered for amendment under the five-minute rule in 
        accordance with the applicable provisions of rule XXIII 
        of the Rules of the House of Representatives. After the 
        Committee rises and reports the resolution back to the 
        House, the previous question shall be considered as 
        ordered on the resolution and any amendments thereto to 
        final passage without intervening motion; except that 
        it shall be in order at any time prior to final passage 
        (notwithstanding any other rule or provision of law) to 
        adopt an amendment (or a series of amendments) changing 
        any figure or figures in the resolution as so reported 
        to the extent necessary to achieve mathematical 
        consistency.
          (6) Debate in the House of Representatives on the 
        conference report on any concurrent resolution on the 
        budget shall be limited to not more than 5 hours, which 
        shall be divided equally between the majority and 
        minority parties. A motion further to limit debate is 
        not debatable. A motion to recommit the conference 
        report is not in order, and it is not in order to move 
        to reconsider the vote by which the conference report 
        is agreed to or disagreed to.
          (7) Appeals from decisions of the Chair relating to 
        the application of the Rules of the House of 
        Representatives to the procedure relating to any 
        concurrent resolution on the budget shall be decided 
        without debate.
  (b) Procedure in Senate After Report of Committee; Debate; 
Amendments.--
          (1) Debate in the Senate on any concurrent resolution 
        on the budget, and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be 
        limited to not more than 50 hours, except that with 
        respect to any concurrent resolution referred to in 
        section 635(a) of this title all such debate shall be 
        limited to not more than 15 hours. The time shall be 
        equally divided between, and controlled by, the 
        majority leader and the minority leader or their 
        designees.
          (2) Debate in the Senate on any amendment to a 
        concurrent resolution on the budget shall be limited to 
        2 hours, to be equally divided between, and controlled 
        by, the mover and the manager of the concurrent 
        resolution, and debate on any amendment to an 
        amendment, debatable motion, or appeal shall be limited 
        to 1 hour, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        concurrent resolution, except that in the event the 
        manager of the concurrent resolution is in favor of any 
        such amendment, motion, or appeal, the time in 
        opposition thereto shall be controlled by the minority 
        leader or his designee. No amendment that is not 
        germane to the provisions of such concurrent resolution 
        shall be received. Such leaders, or either of them, 
        may, from the time under their control on the passage 
        of the concurrent resolution, allot additional time to 
        any Senator during the consideration of any amendment, 
        debatable motion, or appeal.
          (3) Following the presentation of opening statements 
        on the concurrent resolution on the budget for a fiscal 
        year by the chairman and ranking minority member of the 
        Committee on the Budget of the Senate, there shall be a 
        period of up to four hours for debate on economic goals 
        and policies.
          (4) Subject to the other limitations of this Act, 
        only if a concurrent resolution on the budget reported 
        by the Committee on the Budget of the Senate sets forth 
        the economic goals (as described in sections 1022(a)(2) 
        and 1022a(b) of Title 15) which the estimates, amounts, 
        and levels (as described in section 632(a) of this 
        title) set forth in such resolution are designed to 
        achieve, shall it be in order to offer to such 
        resolution an amendment relating to such goals, and 
        such amendment shall be in order only if it also 
        proposes to alter such estimates, amounts, and levels 
        in germane fashion in order to be consistent with the 
        goals proposed in such amendment.
          (5) A motion to further limit debate is not 
        debatable. A motion to recommit (except a motion to 
        recommit with instructions to report back within a 
        specified number of days, not to exceed 3, not counting 
        any day on which the Senate is not in session) is not 
        in order. Debate on any such motion to recommit shall 
        be limited to 1 hour, to be equally divided between, 
        and controlled by, the mover and the manager of the 
        concurrent resolution.
          (6) Notwithstanding any other rule, an amendment or 
        series of amendments to a concurrent resolution on the 
        budget proposed in the Senate shall always be in order 
        if such amendment or series of amendments proposes to 
        change any figure or figures then contained in such 
        concurrent resolution so as to make such concurrent 
        resolution mathematically consistent or so as to 
        maintain such consistency.
  (c) Action on Conference Reports in the Senate.--
          (1) A motion to proceed to the consideration of the 
        conference report on any concurrent resolution on the 
        budget (or a reconciliation bill or resolution) may be 
        made even though a previous motion to the same effect 
        has been disagreed to.
          (2) During the consideration in the Senate of the 
        conference report (or a message between Houses) on any 
        concurrent resolution on the budget, and all amendments 
        in disagreement, and all amendments thereto, and 
        debatable motions and appeals in connection therewith, 
        debate shall be limited to 10 hours, to be equally 
        divided between, and controlled by, the majority leader 
        and minority leader or their designees. Debate on any 
        debatable motion or appeal related to the conference 
        report (or a message between Houses) shall be limited 
        to 1 hour, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        conference report (or a message between Houses).
          (3) Should the conference report be defeated, debate 
        on any request for a new conference and the appointment 
        of conferees shall be limited to 1 hour, to be equally 
        divided between, and controlled by, the manager of the 
        conference report and the minority leader or his 
        designee, and should any motion be made to instruct the 
        conferees before the conferees are named, debate on 
        such motion shall be limited to one-half hour, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the conference report. Debate on any 
        amendment to any such instructions shall be limited to 
        20 minutes, to be equally divided between and 
        controlled by the mover and the manager of the 
        conference report. In all cases when the manager of the 
        conference report is in favor of any motion, appeal, or 
        amendment, the time in opposition shall be under the 
        control of the minority leader or his designee.
          (4) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.
  (d) Concurrent Resolution Must Be Consistent in Senate.--It 
shall not be in order in the Senate to vote on the question of 
agreeing to--
          (1) a concurrent resolution on the budget unless the 
        figures then contained in such resolution are 
        mathematically consistent; or
          (2) a conference report on a concurrent resolution on 
        the budget unless the figures contained in such 
        resolution, as recommended in such conference report, 
        are mathematically consistent.
  (e) Redesignated (d).

SEC. 637. LEGISLATION DEALING WITH CONGRESSIONAL BUDGET MUST BE HANDLED 
                    BY BUDGET COMMITTEES.

  No bill, resolution, amendment, motion, or conference report, 
dealing with any matter which is within the jurisdiction of the 
Committee on the Budget of either House shall be considered in 
that House unless it is a bill or resolution which has been 
reported by the Committee on the Budget of that House (or from 
the consideration of which such committee has been discharged) 
or unless it is an amendment to such a bill or resolution.

SEC. 638. HOUSE COMMITTEE ACTION ON ALL APPROPRIATION BILLS TO BE 
                    COMPLETED BY JUNE 10.

  On or before June 10 of each year, the Committee on 
Appropriations of the House of Representatives shall report 
annual appropriation bills providing new budget authority under 
the jurisdiction of all of its subcommittees for the fiscal 
year which begins on October 1 of that year.

SEC. 639. REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET 
                    ACTIONS.

  (a) Reports on Legislation Providing New Budget Authority, 
New Spending Authority, or New Credit Authority, or Providing 
Increase or Decrease in Revenues or Tax Expenditures.--
          (1) Whenever a committee of either House reports to 
        its House a bill or resolution, or committee amendment 
        thereto, providing new budget authority (other than 
        continuing appropriations), new spending authority 
        described in section 651(c)(2) of this title, or new 
        credit authority, or providing an increase or decrease 
        in revenues or tax expenditures for a fiscal year (or 
        fiscal years), the report accompanying that bill or 
        resolution shall contain a statement, or the committee 
        shall make available such a statement in the case of an 
        approved committee amendment which is not reported to 
        its House, prepared after consultation with the 
        Director of the Congressional Budget Office--
                  (A) comparing the levels in such measure to 
                the appropriate allocations in the reports 
                submitted under section 633(b) of this title 
                for the most recently agreed to concurrent 
                resolution on the budget for such fiscal year 
                (or fiscal years);
                  (B) including an identification of any new 
                spending authority described in section 
                651(c)(2) of this title which is contained in 
                such measure and a justification for the use of 
                such financing method instead of annual 
                appropriations;
                  (C) containing a projection by the 
                Congressional Budget Office of how such measure 
                will affect the levels of such budget 
                authority, budget outlays, spending authority, 
                revenues, tax expenditures, direct loan 
                obligations, or primary loan guarantee 
                commitments under existing law for such fiscal 
                year (or fiscal years) and each of the four 
                ensuing fiscal years, if timely submitted 
                before such report is filed; and
                  (D) containing an estimate by the 
                Congressional Budget Office of the level of new 
                budget authority for assistance to State and 
                local governments provided by such measure, if 
                timely submitted before such report is filed.
          (2) Whenever a conference report is filed in either 
        House and such conference report or any amendment 
        reported in disagreement or any amendment contained in 
        the joint statement of managers to be proposed by the 
        conferees in the case of technical disagreement on such 
        bill or resolution provides new budget authority (other 
        than continuing appropriations), new spending authority 
        described in section 651(c)(2) of this title, or new 
        credit authority, or provides an increase or decrease 
        in revenues for a fiscal year (or fiscal years), the 
        statement of managers accompanying such conference 
        report shall contain the information described in 
        paragraph (1), if available on a timely basis. If such 
        information is not available when the conference report 
        is filed, the committee shall make such information 
        available to Members as soon as practicable prior to 
        the consideration of such conference report.
  (b) Up-to-Date Tabulation of Congressional Budget Action.--
          (1) The Director of the Congressional Budget Office 
        shall issue to the committees of the House of 
        Representatives and the Senate reports on at least a 
        monthly basis detailing and tabulating the progress of 
        congressional action on bills and resolutions providing 
        new budget authority, new spending authority described 
        in section 651(c)(2) of this title, or new credit 
        authority, or providing an increase or decrease in 
        revenues or tax expenditures for each fiscal year 
        covered by a concurrent resolution on the budget. Such 
        reports shall include but are not limited to an up-to-
        date tabulation comparing the appropriate aggregate and 
        functional levels (including outlays) included in the 
        most recently adopted concurrent resolution on the 
        budget with the levels provided in bills and 
        resolutions reported by committees or adopted by either 
        House or by the Congress, and with the levels provided 
        by law for the fiscal year preceding the first fiscal 
        year covered by the appropriate concurrent resolution.
          (2) The Committee on the Budget of each House shall 
        make available to Members of its House summary budget 
        scorekeeping reports. Such reports--
                  (A) shall be made available on at least a 
                monthly basis, but in any case frequently 
                enough to provide Members of each House an 
                accurate representation of the current status 
                of congressional consideration of the budget;
                  (B) shall include, but are not limited to, 
                summaries of tabulations provided under 
                subsection (b)(1) of this section; and
                  (C) shall be based on information provided 
                under subsection (b)(1) of this section without 
                substantive revision.
          The chairman of the Committee on the Budget of the 
        House of Representatives shall submit such reports to 
        the Speaker.
  (c) Five-year Projection of Congressional Budget Action.--As 
soon as practicable after the beginning of each fiscal year, 
the Director of the Congressional Budget Office shall issue a 
report projecting for the period of 5 fiscal years beginning 
with such fiscal year--
          (1) total new budget authority and total budget 
        outlays for each fiscal year in such period;
          (2) revenues to be received and the major sources 
        thereof, and the surplus or deficit, if any, for each 
        fiscal year in such period;
          (3) tax expenditures for each fiscal year in such 
        period;
          (4) entitlement authority for each fiscal year in 
        such period; and
          (5) credit authority for each fiscal year in such 
        period.

SEC. 640. HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS.

  It shall not be in order in the House of Representatives to 
consider any resolution providing for an adjournment period of 
more than three calendar days during the month of July until 
the House of Representatives has approved annual appropriation 
bills providing new budget authority under the jurisdiction of 
all the subcommittees of the Committee on Appropriations for 
the fiscal year beginning on October 1 of such year. For 
purposes of this section, the chairman of the Committee on 
Appropriations of the House of Representatives shall 
periodically advise the Speaker as to changes in jurisdiction 
among its various subcommittees.

SEC. 641. RECONCILIATION.

  (a) Inclusion of Reconciliation Directives in Concurrent 
Resolutions on the Budget.--A concurrent resolution on the 
budget for any fiscal year, to the extent necessary to 
effectuate the provisions and requirements of such resolution, 
shall--
          (1) specify the total amount by which--
                  (A) new budget authority for such fiscal 
                year;
                  (B) budget authority initially provided for 
                prior fiscal years;
                  (C) new entitlement authority which is to 
                become effective during such fiscal year; and
                  (D) credit authority for such fiscal year, 
                contained in laws, bills, and resolutions 
                within the jurisdiction of a committee, is to 
                be changed and direct that committee to 
                determine and recommend changes to accomplish a 
                change of such total amount;
          (2) specify the total amount by which revenues are to 
        be changed and direct that the committees having 
        jurisdiction to determine and recommend changes in the 
        revenue laws, bills, and resolutions to accomplish a 
        change of such total amount;
          (3) specify the amounts by which the statutory limit 
        on the public debt is to be changed and direct the 
        committee having jurisdiction to recommend such change; 
        or
          (4) specify and direct any combination of the matters 
        described in paragraphs (1), (2), and (3) (including a 
        direction to achieve deficit reduction).
  (b) Legislative Procedure.--If a concurrent resolution 
containing directives to one or more committees to determine 
and recommend changes in laws, bills, or resolutions is agreed 
to in accordance with subsection (a) of this section, and--
          (1) only one committee of the House or the Senate is 
        directed to determine and recommend changes, that 
        committee shall promptly make such determination and 
        recommendations and report to its House reconciliation 
        legislation containing such recommendations; or
          (2) more than one committee of the House or the 
        Senate is directed to determine and recommend changes, 
        each such committee so directed shall promptly make 
        such determination and recommendations and submit such 
        recommendations to the Committee on the Budget of its 
        House, which, upon receiving all such recommendations, 
        shall report to its House reconciliation legislation 
        carrying out all such recommendations without any 
        substantive revision.
For purposes of this subsection, a reconciliation resolution is 
a concurrent resolution directing the Clerk of the House of 
Representatives or the Secretary of the Senate, as the case may 
be, to make specified changes in bills and resolutions which 
have not been enrolled.
  (c) Compliance With Reconciliation Directions.--
          (1) Any committee of the House of Representatives or 
        the Senate that is directed, pursuant to a concurrent 
        resolution on the budget, to determine and recommend 
        changes of the type described in paragraphs (1) and (2) 
        of subsection (a) of this section with respect to laws 
        within its jurisdiction, shall be deemed to have 
        complied with such directions--
                  (A) if--
                          (i) the amount of the changes of the 
                        type described in paragraph (1) of such 
                        subsection recommended by such 
                        committee do not exceed or fall below 
                        the amount of the changes such 
                        committee was directed by such 
                        concurrent resolution to recommend 
                        under such paragraph by more than 20 
                        percent of the total of the amounts of 
                        the changes such committee was directed 
                        to make under paragraphs (1) and (2) of 
                        such subsection, and
                          (ii) the amount of the changes of the 
                        type described in paragraph (2) of such 
                        subsection recommended by such 
                        committee do not exceed or fall below 
                        the amount of the changes such 
                        committee was directed by such 
                        concurrent resolution to recommend 
                        under that paragraph by more than 20 
                        percent of the total of the amounts of 
                        the changes such committee was directed 
                        to make under paragraphs (1) and (2) of 
                        such subsection; and
                  (B) if the total amount of the changes 
                recommended by such committee is not less than 
                the total of the amounts of the changes such 
                committee was directed to make under paragraphs 
                (1) and (2) of such subsection.
          (2)(A) Upon the reporting to the Committee on the 
        Budget of the Senate of a recommendation that shall be 
        deemed to have complied with such directions solely by 
        virtue of this subsection, the chairman of that 
        committee may file with the Senate appropriately 
        revised allocations under section 633(a) of this title 
        and revised functional levels and aggregates to carry 
        out this subsection.
          (B) Upon the submission to the Senate of a conference 
        report recommending a reconciliation bill or resolution 
        in which a committee shall be deemed to have complied 
        with such directions solely by virtue of this 
        subsection, the chairman of the Committee on the Budget 
        of the Senate may file with the Senate appropriately 
        revised allocations under section 633(a) of this title 
        and revised functional levels and aggregates to carry 
        out this subsection.
          (C) Allocations, functional levels, and aggregates 
        revised pursuant to this paragraph shall be considered 
        to be allocations, functional levels, and aggregates 
        contained in the concurrent resolution on the budget 
        pursuant to section 632 of this title.
          (D) Upon the filing of revised allocations pursuant 
        to this paragraph, the reporting committee shall report 
        revised allocations pursuant to section 633(b) of this 
        title to carry out this subsection.
  (d) Limitation on Amendments to Reconciliation Bills and 
Resolutions.--
          (1) It shall not be in order in the House of 
        Representatives to consider any amendment to a 
        reconciliation bill or reconciliation resolution if 
        such amendment would have the effect of increasing any 
        specific budget outlays above the level of such outlays 
        provided in the bill or resolution (for the fiscal 
        years covered by the reconciliation instructions set 
        forth in the most recently agreed to concurrent 
        resolution on the budget), or would have the effect of 
        reducing any specific Federal revenues below the level 
        of such revenues provided in the bill or resolution 
        (for such fiscal years), unless such amendment makes at 
        least an equivalent reduction in other specific budget 
        outlays, an equivalent increase in other specific 
        Federal revenues, or an equivalent combination thereof 
        (for such fiscal years), except that a motion to strike 
        a provision providing new budget authority or new 
        entitlement authority may be in order.
          (2) It shall not be in order in the Senate to 
        consider any amendment to a reconciliation bill or 
        reconciliation resolution if such amendment would have 
        the effect of decreasing any specific budget outlay 
        reductions below the level of such outlay reductions 
        provided (for the fiscal years covered) in the 
        reconciliation instructions which relate to such bill 
        or resolution set forth in a resolution providing for 
        reconciliation, or would have the effect of reducing 
        Federal revenue increases below the level of such 
        revenue increases provided (for such fiscal years) in 
        such instructions relating to such bill or resolution, 
        unless such amendment makes a reduction in other 
        specific budget outlays, an increase in other specific 
        Federal revenues, or a combination thereof (for such 
        fiscal years) at least equivalent to any increase in 
        outlays or decrease in revenues provided by such 
        amendment, except that a motion to strike a provision 
        shall always be in order.
          (3) Paragraphs (1) and (2) shall not apply if a 
        declaration of war by the Congress is in effect.
          (4) For purposes of this section, the levels of 
        budget outlays and Federal revenues for a fiscal year 
        shall be determined on the basis of estimates made by 
        the Committee on the Budget of the House of 
        Representatives or of the Senate, as the case may be.
          (5) The Committee on Rules of the House of 
        Representatives may make in order amendments to achieve 
        changes specified by reconciliation directives 
        contained in a concurrent resolution on the budget if a 
        committee or committees of the House fail to submit 
        recommended changes to its Committee on the Budget 
        pursuant to its instruction.
  (e) Procedure in Senate.--
          (1) Except as provided in paragraph (2), the 
        provisions of section 636 of this title for the 
        consideration in the Senate of concurrent resolutions 
        on the budget and conference reports thereon shall also 
        apply to the consideration in the Senate of 
        reconciliation bills reported under subsection (b) of 
        this section and conference reports thereon.
          (2) Debate in the Senate on any reconciliation bill 
        reported under subsection (b) of this section, and all 
        amendments thereto and debatable motions and appeals in 
        connection therewith, shall be limited to not more than 
        20 hours.
  (f) Completion of Reconciliation Process.--It shall not be in 
order in the House of Representatives to consider any 
resolution providing for an adjournment period of more than 
three calendar days during the month of July until the House of 
Representatives has completed action on the reconciliation 
legislation for the fiscal year beginning on October 1 of the 
calendar year to which the adjournment resolution pertains, if 
reconciliation legislation is required to be reported by the 
concurrent resolution on the budget for such fiscal year.
  (g) Limitation on Changes to Social Security Act.--
Notwithstanding any other provision of law, it shall not be in 
order in the Senate or the House of Representatives to consider 
any reconciliation bill or reconciliation resolution reported 
pursuant to a concurrent resolution on the budget agreed to 
under section 632 or 635 of this title, or a joint resolution 
pursuant to section 907(d) of this title, or any amendment 
thereto or conference report thereon, that contains 
recommendations with respect to the old-age, survivors, and 
disability insurance program established under title II of the 
Social Security Act [42 U.S.C.A. Sec. 401 et seq.].

SEC. 642. NEW BUDGET AUTHORITY, NEW SPENDING AUTHORITY, AND REVENUE 
                    LEGISLATION TO BE WITHIN APPROPRIATE LEVELS.

  (a) Legislation Subject to Point of Order.--
          (1) Except as provided by subsection (b) of this 
        section, after the Congress has completed action on a 
        concurrent resolution on the budget for a fiscal year, 
        it shall not be in order in either the House of 
        Representatives or the Senate to consider any bill, 
        joint resolution, amendment, motion, or conference 
        report providing new budget authority for such fiscal 
        year, providing new entitlement authority effective 
        during such fiscal year, or reducing revenues for such 
        fiscal year, if--
                  (A) the enactment of such bill or resolution 
                as reported;
                  (B) the adoption and enactment of such 
                amendment; or
                  (C) the enactment of such bill or resolution 
                in the form recommended in such conference 
                report;
        would cause the appropriate level of total new budget 
        authority or total budget outlays set forth in the most 
        recently agreed to concurrent resolution on the budget 
        for such fiscal year to be exceeded, or would cause 
        revenues to be less than the appropriate level of total 
        revenues set forth in such concurrent resolution except 
        in the case that a declaration of war by the Congress 
        is in effect.
          (2)(A) After the Congress has completed action on a 
        concurrent resolution on the budget, it shall not be in 
        order in the Senate to consider any bill, resolution, 
        amendment, motion, or conference report that would 
        cause the appropriate level of total new budget 
        authority or total budget outlays or social security 
        outlays set forth for the first fiscal year in the most 
        recently agreed to concurrent resolution on the budget 
        covering such fiscal year to be exceeded, or would 
        cause revenues to be less than the appropriate level of 
        total revenues (or social security revenues to be less 
        than the appropriate level of social security revenues) 
        set forth for the first fiscal year covered by the 
        resolution and for the period including the first 
        fiscal year plus the following 4 fiscal years in such 
        concurrent resolution.
          (B) In applying this paragraph--
                  (i)(I) estimated social security outlays 
                shall be deemed to be reduced by the excess of 
                estimated social security revenues (including 
                those provided for in the bill, resolution, 
                amendment, or conference report with respect to 
                which this subsection is applied) over the 
                appropriate level of Social Security revenues 
                specified in the most recently agreed to 
                concurrent resolution on the budget;
                  (II) estimated social security revenues shall 
                be deemed to be increased to the extent that 
                estimated social security outlays are less 
                (taking into account the effect of the bill, 
                resolution, amendment, or conference report to 
                which this subsection is being applied) than 
                the appropriate level of social security 
                outlays in the most recently agreed to 
                concurrent resolution on the budget; and
                  (ii)(I) estimated Social Security outlays 
                shall be deemed to be increased by the 
                shortfall of estimated social security revenues 
                (including Social Security revenues provided 
                for in the bill, resolution, amendment, or 
                conference report with respect to which this 
                subsection is applied) below the appropriate 
                level of social security revenues specified in 
                the most recently adopted concurrent resolution 
                on the budget; and
                  (II) estimated social security revenues shall 
                be deemed to be reduced by the excess of 
                estimated social security outlays (including 
                social security outlays provided for in the 
                bill, resolution, amendment, or conference 
                report with respect to which this subsection is 
                applied) above the appropriate level of social 
                security outlays specified in the most recently 
                adopted concurrent resolution on the budget; 
                and
                  (iii) no provision of any bill or resolution, 
                or any amendment thereto or conference report 
                thereon, involving a change in chapter 1 of 
                Title 26 shall be treated as affecting the 
                amount of social security revenues unless such 
                provision changes the income tax treatment of 
                social security benefits.
        The chairman of the Committee on the Budget of the 
        Senate may file with the Senate appropriately revised 
        allocations under section 633(a) of this title and 
        revised functional levels and aggregates to reflect the 
        application of the preceding sentence. Such revised 
        allocations, functional levels, and aggregates shall be 
        considered as allocations, functional levels, and 
        aggregates contained in the most recently agreed to 
        concurrent resolution on the budget, and the 
        appropriate committees shall report revised allocations 
        pursuant to section 633(b) of this title.
  (b) Exception in House of Representatives.--Subsection (a) of 
this section shall not apply in the House of Representatives to 
any bill, resolution, or amendment which provides new budget 
authority or new entitlement authority effective during such 
fiscal year, or to any conference report on any such bill or 
resolution, if--
          (1) the enactment of such bill or resolution as 
        reported;
          (2) the adoption and enactment of such amendment; or
          (3) the enactment of such bill or resolution in the 
        form recommended in such conference report, would not 
        cause the appropriate allocation of new discretionary 
        budget authority or new entitlement authority made 
        pursuant to section 633(a) of this title for such 
        fiscal year, for the committee within whose 
        jurisdiction such bill, resolution, or amendment falls, 
        to be exceeded.
  (c) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, budget outlays, 
new entitlement authority, and revenues for a fiscal year shall 
be determined on the basis of estimates made by the Committee 
on the Budget of the House of Representatives or of the Senate, 
as the case may be.

SEC. 643. EFFECTS OF POINTS OF ORDER.

  (a) Points of Order in the Senate Against Amendments Between 
the Houses.--Each provision of this Act that establishes a 
point of order against an amendment also establishes a point of 
order in the Senate against an amendment between the Houses. If 
a point of order under this Act is raised in the Senate against 
an amendment between the Houses, and the Presiding Officer 
sustains the point of order, the effect shall be the same as if 
the Senate had disagreed to the amendment.
  (b) Effect of a Point of Order on a Bill in the Senate.--In 
the Senate, if the Chair sustains a point of order under this 
Act against a bill, the Chair shall then send the bill to the 
committee of appropriate jurisdiction for further 
consideration.

SEC. 644. EXTRANEOUS MATTER IN RECONCILIATION LEGISLATION.

  (a) In General.--When the Senate is considering a 
reconciliation bill or a reconciliation resolution pursuant to 
section 641 of this title, (whether that bill or resolution 
originated in the Senate or the House) or section 907d of this 
title, upon a point of order being made by any Senator against 
material extraneous to the instructions to a committee which is 
contained in any title or provision of the bill or resolution 
or offered as an amendment to the bill or resolution, and the 
point of order is sustained by the Chair, any part of said 
title or provision that contains material extraneous to the 
instructions to said Committee as defined in subsection (b) of 
this section shall be deemed stricken from the bill and may not 
be offered as an amendment from the floor.
  (b) Extraneous Provisions.--
          (1)(A) Except as provided in paragraph (2), a 
        provision of a reconciliation bill or reconciliation 
        resolution considered pursuant to section 641 of this 
        title shall be considered extraneous if such provision 
        does not produce a change in outlays or revenues, 
        including changes in outlays and revenues brought about 
        by changes in the terms and conditions under which 
        outlays are made or revenues are required to be 
        collected (but a provision in which outlay decreases or 
        revenue increases exactly offset outlay increases or 
        revenue decreases shall not be considered extraneous by 
        virtue of this subparagraph); (B) any provision 
        producing an increase in outlays or decrease in 
        revenues shall be considered extraneous if the net 
        effect of provisions reported by the Committee 
        reporting the title containing the provision is that 
        the Committee fails to achieve its reconciliation 
        instructions; (C) a provision that is not in the 
        jurisdiction of the Committee with jurisdiction over 
        said title or provision shall be considered extraneous; 
        (D) a provision shall be considered extraneous if it 
        produces changes in outlays or revenues which are 
        merely incidental to the non-budgetary components of 
        the provision; (E) a provision shall be considered to 
        be extraneous if it increases, or would increase, net 
        outlays, or if it decreases, or would decrease, 
        revenues during a fiscal year after the fiscal years 
        covered by such reconciliation bill or reconciliation 
        resolution, and such increases or decreases are greater 
        than outlay reductions or revenue increases resulting 
        from other provisions in such title in such year; and 
        (F) a provision shall be considered extraneous if it 
        violates section 641(g) of this title.
          (2) A Senate-originated provision shall not be 
        considered extraneous under paragraph (1)(A) if the 
        Chairman and Ranking Minority Member of the Committee 
        on the Budget and the Chairman and Ranking Minority 
        Member of the Committee which reported the provision 
        certify that: (A) the provision mitigates direct 
        effects clearly attributable to a provision changing 
        outlays or revenues and both provisions together 
        produce a net reduction in the deficit; (B) the 
        provision will result in a substantial reduction in 
        outlays or a substantial increase in revenues during 
        fiscal years after the fiscal years covered by the 
        reconciliation bill or reconciliation resolution; (C) a 
        reduction of outlays or an increase in revenues is 
        likely to occur as a result of the provision, in the 
        event of new regulations authorized by the provision or 
        likely to be proposed, court rulings on pending 
        litigation, or relationships between economic indices 
        and stipulated statutory triggers pertaining to the 
        provision, other than the regulations, court rulings or 
        relationships currently projected by the Congressional 
        Budget Office for scorekeeping purposes; or (D) such 
        provision will be likely to produce a significant 
        reduction in outlays or increase in revenues but, due 
        to insufficient data, such reduction or increase cannot 
        be reliably estimated.
          (3) A provision reported by a committee shall not be 
        considered extraneous under paragraph (1)(C) if (A) the 
        provision is an integral part of a provision or title, 
        which if introduced as a bill or resolution would be 
        referred to such committee, and the provision sets 
        forth the procedure to carry out or implement the 
        substantive provisions that were reported and which 
        fall within the jurisdiction of such committee; or (B) 
        the provision states an exception to, or a special 
        application of, the general provision or title of which 
        it is a part and such general provision or title if 
        introduced as a bill or resolution would be referred to 
        such committee.
  (c) Point of Order.--When the Senate is considering a 
conference report on, or an amendment between the Houses in 
relation to, a reconciliation bill or reconciliation resolution 
pursuant to section 641 of this title, upon--
          (1) a point of order being made by any Senator 
        against extraneous material meeting the definition of 
        subsections (b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), 
        or (b)(1)(F) of this section, and
          (2) such point of order being sustained,
such material contained in such conference report or amendment 
shall be deemed stricken, and the Senate shall proceed, without 
intervening action or motion, to consider the question of 
whether the Senate shall recede from its amendment and concur 
with a further amendment, or concur in the House amendment with 
a further amendment, as the case may be, which further 
amendment shall consist of only that portion of the conference 
report or House amendment, as the case may be, not so stricken. 
Any such motion in the Senate shall be debatable for two hours. 
In any case in which such point of order is sustained against a 
conference report (or Senate amendment derived from such 
conference report by operation of this subsection) no further 
amendment shall be in order.
  (d) Extraneous Materials.--Upon the reporting or discharge of 
a reconciliation bill or resolution pursuant to section 641 of 
this title in the Senate, and again upon the submission of a 
conference report on such a reconciliation bill or resolution, 
the Committee on the Budget of the Senate shall submit for the 
record a list of material considered to be extraneous under 
subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E) of this section 
to the instructions of a committee as provided in this section. 
The inclusion or exclusion of a provision shall not constitute 
a determination of extraneousness by the Presiding Officer of 
the Senate.
  (e) General Point of Order.--Notwithstanding any other law or 
rule of the Senate, it shall be in order for a Senator to raise 
a single point of order that several provisions of a bill, 
resolution, amendment, motion, or conference report violate 
this section. The Presiding Officer may sustain the point of 
order as to some or all of the provisions against which the 
Senator raised the point of order. If the Presiding Officer so 
sustains the point of order as to some of the provisions 
(including provisions of an amendment, motion, or conference 
report) against which the Senator raised the point of order, 
then only those provisions (including provisions of an 
amendment, motion, or conference report) against which the 
Presiding Officer sustains the point of order shall be deemed 
stricken pursuant to this section. Before the Presiding Officer 
rules on such a point of order, any Senator may move to waive 
such a point of order as it applies to some or all of the 
provisions against which the point of order was raised. Such a 
motion to waive is amendable in accordance with the rules and 
precedents of the Senate. After the Presiding Officer rules on 
such a point of order, any Senator may appeal the ruling of the 
Presiding Officer on such a point of order as it applies to 
some or all of the provisions on which the Presiding Officer 
ruled.
  (f) Determination of Levels.--For purposes of this section, 
the levels of new budget authority, budget outlays, new 
entitlement authority, and revenues for a fiscal year shall be 
determined on the basis of estimates made by the Committee on 
the Budget of the Senate.
                          TITLE 2--THE CONGRESS

          * * * * * * *

        CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS

                    Subchapter II--Fiscal Procedures

                       PART A--GENERAL PROVISIONS

SEC. 651. BILLS PROVIDING NEW SPENDING AUTHORITY.

  (a) Controls on Legislation Providing Spending Authority.--It 
shall not be order in either the House of Representatives or 
the Senate to consider any bill, joint resolution, amendment, 
motion, or conference report, as reported to its House which 
provides new spending authority described in subsection 
(c)(2)(A) or (B) of this section, unless that bill, resolution, 
conference report, or amendment also provides that such new 
spending authority as described in subsection (c)(2)(A) or (B) 
of this section is to be effective for any fiscal year only to 
such extent or in such amounts as are provided in appropriation 
Acts.
  (b) Legislation Providing Entitlement Authority.--
          (1) It shall not be in order in either the House of 
        Representatives or the Senate to consider any bill, 
        joint resolution, amendment, motion, or conference 
        report, as reported to its House which provides new 
        spending authority described in subsection (c)(2)(C) of 
        this section which is to become effective before the 
        first day of the fiscal year which begins during the 
        calendar year in which such bill or resolution is 
        reported.
          (2) If any committee of the House of Representatives 
        or the Senate reports any bill or resolution which 
        provides new spending authority described in subsection 
        (c)(2)(C) of this section which is to become effective 
        during a fiscal year and the amount of new budget 
        authority which will be required for such fiscal year 
        if such bill or resolution is enacted as so reported 
        exceeds the appropriate allocation of new budget 
        authority reported under section 633(b) of this title 
        in connection with the most recently agreed to 
        concurrent resolution on the budget for such fiscal 
        year, such bill or resolution shall then be referred to 
        the Committee on Appropriations of that House with 
        instructions to report it, with the committee's 
        recommendations, within 15 calendar days (not counting 
        any day on which that House is not in session) 
        beginning with the day following the day on which it is 
        so referred. If the Committee on Appropriations of 
        either House fails to report a bill or resolution 
        referred to it under this paragraph within such 15-day 
        period, the committee shall automatically be discharged 
        from further consideration of such bill or resolution 
        and such bill or resolution shall be placed on the 
        appropriate calendar.
          (3) The Committee on Appropriations of each House 
        shall have jurisdiction to report any bill or 
        resolution referred to it under paragraph (2) with an 
        amendment which limits the total amount of new spending 
        authority provided in such bill or resolution.
  (c) Definitions.--
          (1) For purposes of this section, the term ``new 
        spending authority'' means spending authority not 
        provided by law on the effective date of this Act, 
        including any increase in or addition to spending 
        authority provided by law on such date.
          (2) For purposes of paragraph (1), the term 
        ``spending authority'' means authority (whether 
        temporary or permanent)--
                  (A) to enter into contracts under which the 
                United States is obligated to make outlays, the 
                budget authority for which is not provided in 
                advance by appropriation Acts;
                  (B) to incur indebtedness (other than 
                indebtedness incurred under chapter 31 of Title 
                31) for the repayment of which the United 
                States is liable, the budget authority for 
                which is not provided in advance by 
                appropriation Acts;
                  (C) to make payments (including loans and 
                grants), the budget authority for which is not 
                provided for in advance by appropriation Acts, 
                to any person or government if, under the 
                provisions of the law containing such 
                authority, the United States is obligated to 
                make such payments to persons or governments 
                who meet the requirements established by such 
                law;
                  (D) to forego the collection by the United 
                States of proprietary offsetting receipts, the 
                budget authority for which is not provided in 
                advance by appropriation Acts to offset such 
                foregone receipts; and
                  (E) to make payments by the United States 
                (including loans, grants, and payments from 
                revolving funds) other than those covered by 
                subparagraph (A), (B), (C), or (D), the budget 
                authority for which is not provided in advance 
                by appropriation Acts.
        Such term does not include authority to insure or 
        guarantee the repayment of indebtedness incurred by 
        another person or government.
  (d) Exceptions.--
          (1) Subsections (a) and (b) of this section shall not 
        apply to new spending authority if the budget authority 
        for outlays which will result from such new spending 
        authority is derived--
                  (A) from a trust fund established by the 
                Social Security Act [42 U.S.C.A. Sec. 301 et 
                seq.] (as in effect on July 12, 1974); or
                  (B) from any other trust fund, 90 percent or 
                more of the receipts of which consist or will 
                consist of amounts (transferred from the 
                general fund of the Treasury) equivalent to 
                amounts of taxes (related to the purposes for 
                which such outlays are or will be made) 
                received in the Treasury under specified 
                provisions of the Internal Revenue Code of 1954 
                [26 U.S.C.A. Sec. 1 et seq.].
          (2) Subsections (a) and (b) of this section shall not 
        apply to new spending authority which is an amendment 
        to or extension of chapter 67 of Title 31, or a 
        continuation of the program of fiscal assistance to 
        State and local governments provided by that chapter, 
        to the extent so provided in the bill or resolution 
        providing such authority.
          (3) Subsections (a) and (b) of this section shall not 
        apply to new spending authority to the extent that--
                  (A) the outlays resulting therefrom are made 
                by an organization which is (i) a mixed-
                ownership Government corporation (as defined in 
                section 9101(2) of Title 31) or (ii) a wholly 
                owned Government corporation (as defined in 
                section 9101(3) of Title 31) which is 
                specifically exempted by law from compliance 
                with any or all of the provisions of chapter 91 
                of Title 31, as of December 12, 1985; or
                  (B) the outlays resulting therefrom consist 
                exclusively of the proceeds of gifts or 
                bequests made to the United States for a 
                specific purpose.

SEC. 652. LEGISLATION PROVIDING NEW CREDIT AUTHORITY.

  (a) Controls on Legislation Providing New Credit Authority.--
It shall not be in order in either the House of Representatives 
or the Senate to consider any bill, joint resolution, 
amendment, motion, or conference report as reported to its 
House, which provides new credit authority described in 
subsection (b)(1) of this section, unless that bill, 
resolution, conference report, or amendment also provides that 
such new credit authority is to be effective for any fiscal 
year only to such extent or in such amounts as are provided in 
appropriation Acts.
  (b) Definition.--For purposes of this Act, the term ``new 
credit authority'' means credit authority (as defined in 
section 622(10) of this title) not provided by law on the 
effective date of this section, including any increase in or 
addition to credit authority provided by law on such date.

SEC. 653. ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.

  The Director of the Congressional Budget Office shall, to the 
extent practicable, prepare for each bill or resolution of a 
public character reported by any committee of the House of 
Representatives or the Senate (except the Committee on 
Appropriations of each House), and submit to such committee--
          (1) an estimate of the costs which would be incurred 
        in carrying out such bill or resolution in the fiscal 
        year in which it is to become effective and in each of 
        the 4 fiscal years following such fiscal year, together 
        with the basis for each such estimate;
          (2) a comparison of the estimates of costs described 
        in paragraph (1) and (2) with any available estimates 
        of costs made by such committee or by any Federal 
        agency; and
          (3) a description of each method for establishing a 
        Federal financial commitment contained in such bill or 
        resolution.
The estimates, comparison, and description so submitted shall 
be included in the report accompanying such bill or resolution 
if timely submitted to such committee before such report is 
filed.

SEC. 654. STUDY BY GENERAL ACCOUNTING OFFICE OF FORMS OF FEDERAL 
                    FINANCIAL COMMITMENT NOT REVIEWED ANNUALLY BY 
                    CONGRESS.

  The General Accounting Office shall study those provisions of 
law which provide spending authority as described by section 
651(c)(2) of this title and which provide permanent 
appropriations, and report to the Congress its recommendations 
for the appropriate form of financing for activities or 
programs financed by such provisions not later than eighteen 
months after December 12, 1985. Such report shall be revised 
from time to time.

SEC. 655. OFF-BUDGET AGENCIES, PROGRAMS, AND ACTIVITIES.

  (a) Notwithstanding any other provision of law, budget 
authority, credit authority, and estimates of outlays and 
receipts for activities of the Federal budget which are off-
budget immediately prior to December 12, 1985, not including 
activities of the Federal Old-Age and Survivors Insurance and 
Federal Disability Insurance Trust Funds, shall be included in 
a budget submitted pursuant to section 1105 of Title 31, and in 
a concurrent resolution on the budget reported pursuant to 
section 632 or 635 of this title and shall be considered, for 
purposes of this Act, budget authority, outlays, and spending 
authority in accordance with definitions set forth in this Act.
  (b) All receipts and disbursements of the Federal Financing 
Bank with respect to any obligations which are issued, sold, or 
guaranteed by a Federal agency shall be treated as a means of 
financing such agency for purposes of section 1105 of Title 31 
and for purposes of this Act.

SEC. 656. MEMBER USER GROUP.

  The Speaker of the House of Representatives, after consulting 
with the Minority Leader of the House, may appoint a Member 
User Group for the purpose of reviewing budgetary scorekeeping 
rules and practices of the House and advising the Speaker from 
time to time on the effect and impact of such rules and 
practices.
                         TITLE 2--THE CONGRESS

          * * * * * * *

        CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS

                     Subchapter III--Credit Reform

SEC. 661. PURPOSES.

    The purposes of this subchapter are to--
          (1) measure more accurately the costs of Federal 
        credit programs;
          (2) place the cost of credit programs on a budgetary 
        basis equivalent to other Federal spending;
          (3) encourage the delivery of benefits in the form 
        most appropriate to the needs of beneficiaries; and
          (4) improve the allocation of resources among credit 
        programs and between credit and other spending 
        programs.

SEC. 661A. DEFINITIONS.

  For purposes of this subchapter--
          (1) The term ``direct loan'' means a disbursement of 
        funds by the Government to a non-Federal borrower under 
        a contract that requires the repayment of such funds 
        with or without interest. The term includes the 
        purchase of, or participation in, a loan made by 
        another lender. The term does not include the 
        acquisition of a federally guaranteed loan in 
        satisfaction of default claims or the price support 
        loans of the Commodity Credit Corporation.
          (2) The term ``direct loan obligation'' means a 
        binding agreement by a Federal agency to make a direct 
        loan when specified conditions are fulfilled by the 
        borrower.
          (3) The term ``loan guarantee'' means any guarantee, 
        insurance, or other pledge with respect to the payment 
        of all or a part of the principal or interest on any 
        debt obligation of a non-Federal borrower to a non-
        Federal lender, but does not include the insurance of 
        deposits, shares, or other withdrawable accounts in 
        financial institutions.
          (4) The term ``loan guarantee commitment'' means a 
        binding agreement by a Federal agency to make a loan 
        guarantee when specified conditions are fulfilled by 
        the borrower, the lender, or any other party to the 
        guarantee agreement.
          (5)(A) The term ``cost'' means the estimated long-
        term cost to the Government of a direct loan or loan 
        guarantee, calculated on a net present value basis, 
        excluding administrative costs and any incidental 
        effects on governmental receipts or outlays.
          (B) The cost of a direct loan shall be the net 
        present value, at the time when the direct loan is 
        disbursed, of the following cash flows:
                  (i) loan disbursements;
                  (ii) repayments of principal; and
                  (iii) payments of interest and other payments 
                by or to the Government over the life of the 
                loan after adjusting for estimated defaults, 
                prepayments, fees, penalties and other 
                recoveries.
          (C) The cost of a loan guarantee shall be the net 
        present value when a guaranteed loan is disbursed of 
        the cash flow from--
                  (i) estimated payments by the Government to 
                cover defaults and delinquencies, interest 
                subsidies, or other payments, and
                  (ii) the estimated payments to the Government 
                including origination and other fees, penalties 
                and recoveries.
          (D) Any Government action that alters the estimated 
        net present value of an outstanding direct loan or loan 
        guarantee (except modifications within the terms of 
        existing contracts or through other existing 
        authorities) shall be counted as a change in the cost 
        of that direct loan or loan guarantee. The calculation 
        of such changes shall be based on the estimated present 
        value of the direct loan or loan guarantee at the time 
        of modification.
          (E) In estimating net present values, the discount 
        rate shall be the average interest rate on marketable 
        Treasury securities of similar maturity to the direct 
        loan or loan guarantee for which the estimate is being 
        made.
          (6) The term ``credit program account'' means the 
        budget account into which an appropriation to cover the 
        cost of a direct loan or loan guarantee program is made 
        and from which such cost is disbursed to the financing 
        account.
          (7) The term ``financing account'' means the non-
        budget account or accounts associated with each credit 
        program account which holds balances, receives the cost 
        payment from the credit program account, and also 
        includes all other cash flows to and from the 
        Government resulting from direct loan obligations or 
        loan guarantee commitments made on or after October 1, 
        1991.
          (8) The term ``liquidating account'' means the budget 
        account that includes all cash flows to and from the 
        Government resulting from direct loan obligations or 
        loan guarantee commitments made prior to October 1, 
        1991.
These accounts shall be shown in the budget on a cash basis.
          (9) The term ``Director'' means the Director of the 
        Office of Management and Budget.

SEC. 661B. OMB AND CBO ANALYSIS, COORDINATION, AND REVIEW.

  (a) In General.--For the executive branch, the Director shall 
be responsible for coordinating the estimates required by this 
title. The Director shall consult with the agencies that 
administer direct loan or loan guarantee programs.
  (b) Delegation.--The Director may delegate to agencies 
authority to make estimates of costs. The delegation of 
authority shall be based upon written guidelines, regulations, 
or criteria consistent with the definitions in this title.
  (c) Coordination With the Congressional Budget Office.--In 
developing estimation guidelines, regulations, or criteria to 
be used by Federal agencies, the Director shall consult with 
the Director of the Congressional Budget Office.
  (d) Improving Cost Estimates.--The Director and the Director 
of the Congressional Budget Office shall coordinate the 
development of more accurate data on historical performance of 
direct loan and loan guarantee programs. They shall annually 
review the performance of outstanding direct loans and loan 
guarantees to improve estimates of costs. The Office of 
Management and Budget and the Congressional Budget Office shall 
have access to all agency data that may facilitate the 
development and improvement of estimates of costs.
  (e) Historical Credit Program Costs.--The Director shall 
review, to the extent possible, historical data and develop the 
best possible estimates of adjustments that would convert 
aggregate historical budget data to credit reform accounting.
  (f) Administrative Costs.--The Director and the Director of 
the Congressional Budget Office shall each analyze and report 
to Congress on differences in long-term administrative costs 
for credit programs versus grant programs by January 31, 1992. 
Their reports shall recommend to Congress any changes, if 
necessary, in the treatment of administrative costs under 
credit reform accounting.

SEC. 661C. BUDGETARY TREATMENT.

  (a) President's Budget.--Beginning with fiscal year 1992, the 
President's budget shall reflect the costs of direct loan and 
loan guarantee programs. The budget shall also include the 
planned level of new direct loan obligations or loan guarantee 
commitments associated with each appropriations request.
  (b) Appropriations Required.--Notwithstanding any other 
provision of law, new direct loan obligations may be incurred 
and new loan guarantee commitments may be made for fiscal year 
1992 and thereafter only to the extent that--
          (1) appropriations of budget authority to cover their 
        costs are made in advance;
          (2) a limitation on the use of funds otherwise 
        available for the cost of a direct loan or loan 
        guarantee program is enacted; or
          (3) authority is otherwise provided in appropriation 
        Acts.
  (c) Exemption for Mandatory Programs.--Subsection (b) of this 
section shall not apply to a direct loan or loan guarantee 
program that--
          (1) constitutes an entitlement (such as the 
        guaranteed student loan program or the veterans' home 
        loan guaranty program); or
          (2) all existing credit programs of the Commodity 
        Credit Corporation on November 5, 1990.
  (d) Budget Accounting.--
          (1) The authority to incur new direct loan 
        obligations, make new loan guarantee commitments, or 
        directly or indirectly alter the costs of outstanding 
        direct loans and loan guarantees shall constitute new 
        budget authority in an amount equal to the cost of the 
        direct loan or loan guarantee in the fiscal year in 
        which definite authority becomes available or 
        indefinite authority is used. Such budget authority 
        shall constitute an obligation of the credit program 
        account to pay to the financing account.
          (2) The outlays resulting from new budget authority 
        for the cost of direct loans or loan guarantees 
        described in paragraph (1) shall be paid from the 
        credit program account into the financing account and 
        recorded in the fiscal year in which the direct loan or 
        the guaranteed loan is disbursed or its costs altered.
          (3) All collections and payments of the financing 
        accounts shall be a means of financing.
  (e) Modifications.--A direct loan obligation or loan 
guarantee commitment shall not be modified in a manner that 
increases its cost unless budget authority for the additional 
cost is appropriated, or is available out of existing 
appropriations or from other budgetary resources.
  (f) Reestimates.--When the estimated cost for a group of 
direct loans or loan guarantees for a given credit program made 
in a single fiscal year is reestimated in a subsequent year, 
the difference between the reestimated cost and the previous 
cost estimate shall be displayed as a distinct and separately 
identified subaccount in the credit program account as a change 
in program costs and a change in net interest. There is hereby 
provided permanent indefinite authority for these reestimates.
  (g) Administrative Expenses.--All funding for an agency's 
administration of a direct loan or loan guarantee program shall 
be displayed as distinct and separately identified subaccounts 
within the same budget account as the program's cost.

SEC. 661D. AUTHORIZATIONS.

  (a) Authorization of Appropriations for Costs.--There are 
authorized to be appropriated to each Federal agency authorized 
to make direct loan obligations or loan guarantee commitments, 
such sums as may be necessary to pay the cost associated with 
such direct loan obligations or loan guarantee commitments.
  (b) Authorization for Financing Accounts.--In order to 
implement the accounting required by this subchapter, the 
President is authorized to establish such non-budgetary 
accounts as may be appropriate.
  (c) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend 
to, or pay to the financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms 
and denominations, maturities, and terms and conditions for the 
transactions described above. The authorities described above 
shall not be construed to supercede or override the authority 
of the head of a Federal agency to administer and operate a 
direct loan or loan guarantee program. All of the transactions 
provided in this subsection shall be subject to the provisions 
of subchapter II of chapter 15 of Title 31. Cash balances of 
the financing accounts in excess of current requirements shall 
be maintained in a form of uninvested funds and the Secretary 
of the Treasury shall pay interest on these funds.
  (d) Authorization for Liquidating Accounts.--If funds in 
liquidating accounts are insufficient to satisfy the 
obligations and commitments of said accounts, there is hereby 
provided permanent, indefinite authority to make any payments 
required to be made on such obligations and commitments.
  (e) Authorization of Appropriations for Implementation 
Expenses.--There are authorized to be appropriated to existing 
accounts such sums as may be necessary for salaries and 
expenses to carry out the responsibilities under this 
subchapter.
  (f) Reinsurance.--Nothing in this subchapter shall be 
construed as authorizing or requiring the purchase of insurance 
or reinsurance on a direct loan or loan guarantee from private 
insurers. If any such reinsurance for a direct loan or loan 
guarantee is authorized, the cost of such insurance and any 
recoveries to the Government shall be included in the 
calculation of the cost.
  (g) Eligibility and Assistance.--Nothing in this subchapter 
shall be construed to change the authority or the 
responsibility of a Federal agency to determine the terms and 
conditions of eligibility for, or the amount of assistance 
provided by a direct loan or a loan guarantee.

SEC. 661E. TREATMENT OF DEPOSIT INSURANCE AND AGENCIES AND OTHER 
                    INSURANCE PROGRAMS.

  (a) In General.--
          (1) This subchapter shall not apply to the credit or 
        insurance activities of the Federal Deposit Insurance 
        Corporation, National Credit Union Administration, 
        Resolution Trust Corporation, Pension Benefit Guaranty 
        Corporation, National Flood Insurance, National 
        Insurance Development Fund, Crop Insurance, or 
        Tennessee Valley Authority.
          (2) The Director and the Director of the 
        Congressional Budget Office shall each study whether 
        the accounting for Federal deposit insurance programs 
        should be on a cash basis on the same basis as loan 
        guarantees, or on a different basis. Each Director 
        shall report findings and recommendations to the 
        President and the Congress on or before May 31, 1991.
          (3) For the purposes of paragraph (2), the Office of 
        Management and Budget and the Congressional Budget 
        Office shall have access to all agency data that may 
        facilitate these studies.

SEC. 661F. EFFECT ON OTHER LAWS.

  (a) Effect on Other Laws.--This subchapter shall supersede, 
modify, or repeal any provision of law enacted prior to 
November 5, 1990, to the extent such provision is inconsistent 
with this subchapter. Nothing in this subchapter shall be 
construed to establish a credit limitation on any Federal loan 
or loan guarantee program.
  (b) Crediting of Collections.--Collections resulting from 
direct loans obligated or loan guarantees committed prior to 
October 1, 1991, shall be credited to the liquidating accounts 
of Federal agencies. Amounts so credited shall be available, to 
the same extent that they were available prior to November 5, 
1988, to liquidate obligations arising from such direct loans 
obligated or loan guarantees committed prior to October 1, 
1991, including repayment of any obligations held by the 
Secretary of the Treasury or the Federal Financing Bank. The 
unobligated balances of such accounts that are in excess of 
current needs shall be transferred to the general fund of the 
Treasury. Such transfers shall be made from time to time but, 
at least once each year.
                         TITLE 2--THE CONGRESS

          * * * * * * *

        CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS

         Subchapter IV--Budget Agreement Enforcement Provisions

SEC. 665. DEFINITIONS AND POINT OF ORDER

  (a) Definitions.--As used in this subchapter and for purposes 
of the Balanced Budget and Emergency Deficit Control Act of 
1985:
          (1) Maximum deficit amount.--The term ``maximum 
        deficit amount'' means--
                  (A) with respect to fiscal year 1991, 
                $327,000,000,000;
                  (B) with respect to fiscal year 1992, 
                $317,000,000,000;
                  (C) with respect to fiscal year 1993, 
                $236,000,000,000;
                  (D) with respect to fiscal year 1994, 
                $102,000,000,000; and
                  (E) with respect to fiscal year 1995, 
                $83,000,000,000;
        as adjusted in strict conformance with sections 251, 
        252, and 253 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 [2 U.S.C.A. Secs. 901, 902, 
        and 903].
          (2) Discretionary spending limit.--The term 
        ``discretionary spending limit'' means--
                  (A) with respect to fiscal year 1991--
                          (i) for the defense category: 
                        $288,918,000,000 in new budget 
                        authority and $297,660,000,000 in 
                        outlays;
                          (ii) for the international category: 
                        $20,100,000,000 in new budget authority 
                        and $18,600,000,000 in outlays; and
                          (iii) for the domestic category: 
                        $182,700,000,000 in new budget 
                        authority and $198,100,000,000 in 
                        outlays;
                  (B) with respect to fiscal year 1992--
                          (i) for the defense category: 
                        $291,643,000,000 in new budget 
                        authority and $295,744,000,000 in 
                        outlays;
                          (ii) for the international category: 
                        $20,500,000,000 in new budget authority 
                        and $19,100,000,000 in outlays; and
                          (iii) for the domestic category: 
                        $191,300,000,000 in new budget 
                        authority and $210,100,000,000 in 
                        outlays;
                  (C) with respect to fiscal year 1993--
                          (i) for the defense category: 
                        $291,785,000,000 in new budget 
                        authority and $292,686,000,000 in 
                        outlays;
                          (ii) for the international category: 
                        $21,400,000,000 in new budget authority 
                        and $19,600,000,000 in outlays; and
                          (iii) for the domestic category: 
                        $198,300,000,000 in new budget 
                        authority and $221,700,000,000 in 
                        outlays;
                  (D) with respect to fiscal year 1994, for the 
                discretionary category: $510,800,000,000 in new 
                budget authority and $534,800,000,000 in 
                outlays;
                  (E) with respect to fiscal year 1995, for the 
                discretionary category: $517,700,000,000 in new 
                budget authority and $540,800,000,000 in 
                outlays;
                  (F) with respect to fiscal years 1996, 1997, 
                and 1998, for the discretionary category, the 
                amounts set forth for those years in section 
                12(b)(1) of House Concurrent Resolution 64 (One 
                Hundred Third Congress);
        as adjusted in strict conformance with section 251 of 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985 [2 U.S.C.A. Sec. 901].
  (b) Point of order in the Senate on aggregate allocations for 
defense, international, and domestic discretionary spending--
          (1) Except as otherwise provided in this subsection, 
        it shall not be in order in the Senate to consider any 
        concurrent resolution on the budget for fiscal year 
        1995, 1996, 1997, or 1998 (or amendment, motion, or 
        conference report on such a resolution) that would 
        exceed any of the discretionary spending limits in this 
        section.
          (3) For purposes of this subsection, the levels of 
        new budget authority and outlays for a fiscal year 
        shall be determined on the basis of estimates made by 
        the Committee on the Budget of the Senate.
          (4) This subsection shall not apply if a declaration 
        of war by the Congress is in effect or if a joint 
        resolution pursuant to section 258 of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 has 
        been enacted.

                                  NOTE

         Downward Adjustments in Discretionary Spending Limits

  Pub. L. 104-19, Title II, Sec. 2003, July 27, 1995, 109 Stat. 
247, provided that: ``Upon the enactment of this Act [probably 
means date of enactment of Pub. L. 104-19, which was approved 
July 27, 1995], the Director of the Office of Management and 
Budget shall make downward adjustments in the discretionary 
spending limits (new budget authority and outlays) specified in 
section 601(a)(2) of the Congressional Budget Act of 1974 
[subsec. (a)(2) of this section] for each of the fiscal years 
1995 through 1998 by the programs resulting from the provisions 
of this Act [Pub. L. 104-19, July 27, 1995, 109 Stat. 194, for 
classifications of which see Tables] (other than emergency 
appropriations) for such fiscal year, as calculated by the 
Director.''

SEC. 665A. COMMITTEE ALLOCATIONS AND ENFORCEMENT.

  (a) Committee Spending Allocations.--
          (1) House of representatives.--
                  (A) Allocation among committees.--The joint 
                explanatory statement accompanying a conference 
                report on a budget resolution shall include 
                allocations, consistent with the resolution 
                recommended in the conference report, of the 
                appropriate levels (for each fiscal year 
                covered by that resolution and a total for all 
                such years) of--
                          (i) total new budget authority,
                          (ii) total entitlement authority,
                          (iii) total outlays,
                          (iv) new budget authority from the 
                        Violent Crime Reduction Trust Fund, and
                          (v) outlays from the Violent Crime 
                        Reduction Trust Fund;
                among each committee of the House of 
                Representatives that has jurisdiction over 
                legislation providing or creating such amounts.
                  (B) No double counting.--Any item allocated 
                to one committee of the House of 
                Representatives may not be allocated to another 
                such committee.
                  (C) Further division of amounts.--The amounts 
                allocated to each committee for each fiscal 
                year, other than the Committee on 
                Appropriations, shall be further divided 
                between amounts provided or required by law on 
                the date of filing of that conference report 
                and amounts not so provided or required. The 
                amounts allocated to the Committee on 
                Appropriations for each fiscal year shall be 
                further divided between discretionary and 
                mandatory amounts or programs, as appropriate.
          (2) Senate allocation among committees.--The joint 
        explanatory statement accompanying a conference report 
        on a budget resolution shall include an allocation, 
        consistent with the resolution recommended in the 
        conference report, of the appropriate levels of--
                  (A) total new budget authority;
                  (B) total outlays;
                  (C) social security outlays;
                  (D) new budget authority from the Violent 
                Crime Reduction Trust Fund; and
                  (E) outlays from the Violent Crime Reduction 
                Trust Fund;
        among each committee of the Senate that has 
        jurisdiction over legislation providing or creating 
        such amounts.
          (3) Amounts not allocated.--
                  (A) In the House of Representatives, if a 
                committee receives no allocation of new budget 
                authority, entitlement authority, or outlays, 
                that committee shall be deemed to have received 
                an allocation equal to zero for new budget 
                authority, entitlement authority, or outlays.
                  (B) In the Senate, if a committee receives no 
                allocation of new budget authority, outlays, or 
                social security outlays, that committee shall 
                be deemed to have received an allocation equal 
                to zero for new budget authority, outlays, or 
                social security outlays.
          (4) No double counting.--Amounts allocated among 
        committees under clause (iv) or (v) of paragraph (1)(A) 
        or under subparagraph (D) or (E) of paragraph (2) shall 
        not be included within any other allocation under that 
        paragraph.
  (b) Suballocations by Committees.--
          (1) Suballocations by appropriations committees.--As 
        soon as practicable after a budget resolution is agreed 
        to, the Committee on Appropriations of each House 
        (after consulting with the Committee on Appropriations 
        of the other House) shall suballocate each amount 
        allocated to it for the budget year under subsection 
        (a)(1)(A) or (a)(2) of this section among its 
        subcommittees. Each Committee on Appropriations shall 
        promptly report to its House suballocations made or 
        revised under this paragraph.
          (2) Suballocations by other committees of the 
        senate.--Each other committee of the Senate to which an 
        allocation under subsection (a)(2) of this section is 
        made in the joint explanatory statement may subdivide 
        each amount allocated to it under subsection (a) of 
        this section among its subcommittees or among programs 
        over which it has jurisdiction and shall promptly 
        report any such suballocations to the Senate. Section 
        633(c) of this title shall not apply in the Senate to 
        committees other than the Committee on Appropriations.
  (c) Application of Section 633(f) of this Title to this 
Section.--In fiscal years through 1995, reference in section 
633(f) of this title to the appropriate allocation made 
pursuant to section 633(b) of this title for a fiscal year 
shall, for purposes of this section, be deemed to be a 
reference to any allocation made under subsection (a) or any 
suballocation made under subsection (b) of this section, as 
applicable, for the fiscal year of the resolution or for the 
total of all fiscal years made by the joint explanatory 
statement accompanying the applicable concurrent resolution on 
the budget. In the House of Representatives, the preceding 
sentence shall not apply with respect to fiscal year 1991.
  (d) Application of Subsections (a) and (b) of this Section to 
Fiscal Years 1992 to 1995.--In the case of concurrent 
resolutions on the budget for fiscal years 1992 through 1995, 
allocations shall be made under subsection (a) of this section 
instead of section 633(a) of this title and shall be made under 
subsection (b) of this section instead of section 633(b) of 
this title. For those fiscal years, all references in sections 
633(c), (d), (e), (f), and (g) of this title to section 633(a) 
of this title shall be deemed to be to subsection (a) of this 
section (including revisions made under section 665c of this 
title) and all such references to section 633(b) of this title 
shall be deemed to be to subsection (b) of this section 
(including revisions made under section 665c of this title).
  (e) Pay-as-you-go Exception in the House.--Section 663(f)(1) 
of this title and, after April 15 of any calendar year section 
633(a) of this title, shall not apply to any bill, joint 
resolution, amendment thereto, or conference report thereon if, 
for each fiscal year covered by the most recently agreed to 
concurrent resolution on the budget--
          (1) the enactment of such bill or resolution as 
        reported;
          (2) the adoption and enactment of such amendment; or
          (3) the enactment of such bill or resolution in the 
        form recommended in such conference report,
would not increase the deficit for any such fiscal year, and, 
if the sum of any revenue increases provided in legislation 
already enacted during the current session (when added to 
revenue increases, if any, in excess of any outlay increase 
provided by the legislation proposed for consideration) is at 
least as great as the sum of the amount, if any, by which the 
aggregate level of Federal revenues should be increased as set 
forth in that concurrent resolution and the amount, if any, by 
which revenues are to be increased pursuant to pay-as-you-go 
procedures under section 632(b)(8) of this title if included in 
that concurrent resolution.
          (2) Revised allocations.--
                  (A) As soon as practicable after Congress 
                agrees to a bill or joint resolution that would 
                have been subject to a point of order under 
                section 633(f)(1) of this title but for the 
                exception provided in paragraph (1), the 
                chairman of the Committee on the Budget of the 
                House of Representatives may file with the 
                House appropriately revised allocations under 
                section 633(a) of this title and revised 
                functional levels and budget aggregates to 
                reflect that bill.
                  (B) such revised allocations, functional 
                levels, and budget aggregates shall be 
                considered for the purposes of this Act as 
                allocations, functional levels, and budget 
                aggregates contained in the most recently 
                agreed to concurrent resolution on the budget.

SEC. 665B. CONSIDERATION OF LEGISLATION BEFORE ADOPTION OF BUDGET 
                    RESOLUTION FOR THAT FISCAL YEAR.

  (a) Adjusting Section Allocation of Discretionary Spending.--
If a concurrent resolution on the budget is not adopted by 
April 15, the chairman of the Committee on the Budget of the 
House of Representatives shall submit to the House, as soon as 
practicable, a section 665a(a) allocation to the Committee on 
Appropriations consistent with the discretionary spending 
limits contained in the most recent budget submitted by the 
President under section 1105(a) of Title 31. Such allocations 
shall include the full allowance specified under section 
901(b)(2)(E)(i) of this title.
  (b) As soon as practicable after a section 665a(a) allocation 
is submitted under this section, the Committee on 
Appropriations shall make suballocations and promptly report 
those suballocations to the House of Representatives.

SEC. 665C. RECONCILIATION DIRECTIVES REGARDING PAY-AS-YOU-GO 
                    REQUIREMENTS.

  (a) Instructions to Effectuate Pay-as-you-go in the House of 
Representatives.--If legislation providing for a net reduction 
in revenues in any fiscal year (that, within the same measure, 
is not fully offset in that fiscal year by reductions in direct 
spending) is enacted, the Committee on the Budget of the House 
of Representatives may report, within 15 legislative days 
during a Congress, a pay-as-you-go reconciliation directive in 
the form of a concurrent resolution--
          (1) specifying the total amount by which revenues 
        sufficient to eliminate the net deficit increase 
        resulting from that legislation in each fiscal year are 
        to be changed; and
          (2) directing that the committees having jurisdiction 
        determine and recommend changes in the revenue law, 
        bills, and resolutions to accomplish a change of such 
        total amount.
  (b) Consideration of Pay-as-you-go Reconciliation Legislation 
in the House of Representatives.--In the House of 
Representatives, subsections (b) through (d) of section 641 of 
this title shall apply in the same manner as if the 
reconciliation directive described in subsection (a) of this 
section were a concurrent resolution on the budget.

SEC. 665D. APPLICATION OF SECTION 642 OF THIS TITLE; POINT OF ORDER.

  (a) Application of Section 642(a) of this Title.--
          (1) In the House of Representatives, in the 
        application of section 642(a)(1) of this title to any 
        bill, resolution, amendment, or conference report, 
        reference in section 642 of this title to the 
        appropriate level of total budget authority or total 
        budget outlays or appropriate level of total revenues 
        set forth in the most recently agreed to concurrent 
        resolution on the budget for a fiscal year shall be 
        deemed to be a reference to the appropriate level for 
        that fiscal year and to the total of the appropriate 
        level for that year and the 4 succeeding years.
          (2) In the Senate, in the application of section 
        642(a)(2) of this title to any bill, resolution, 
        motion, or conference report, reference in section 642 
        of this title to the appropriate level of total 
        revenues set forth in the most recently agreed to 
        concurrent resolution on the budget for a fiscal year 
        shall be deemed to be a reference to the appropriate 
        level for that fiscal year and to the total of the 
        appropriate levels for that year and the 4 succeeding 
        years.
  (b) Maximum Deficit Amount Point of Order in the Senate.--
After Congress has completed action on a concurrent resolution 
on the budget, it shall not be in order in the Senate to 
consider any bill, resolution, amendment, motion, or conference 
report that would result in a deficit for the first fiscal year 
covered by that resolution that exceeds the maximum deficit 
amount specified for such fiscal year in section 655(a) of this 
title.

SEC. 665E. 5-YEAR BUDGET RESOLUTIONS; BUDGET RESOLUTIONS MUST CONFORM 
                    TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL 
                    ACT OF 1985.

  (a) 5-Year Budget Resolutions.--In the case of any concurrent 
resolution on the budget for fiscal year 1992, 1993, 1994, or 
1995, that resolution shall set forth appropriate levels for 
the fiscal year beginning on October 1 of the calendar year in 
which it is reported and for each of the 4 succeeding fiscal 
years for the matters described in section 632(a) of this 
title.
  (b) Point of Order in the House of Representatives.--It shall 
not be in order in the House of Representatives to consider any 
concurrent resolution on the budget for a fiscal year or 
conference report thereon under section 632 or 635 of this 
title that exceeds the maximum deficit amount for each fiscal 
year covered by the concurrent resolution or conference report 
as determined under section 665(a) of this title, including 
possible revisions under part C of the Balanced Budget and 
Emergency Deficit Control Act of 1985 [2 U.S.C.A. Sec. 900 et 
seq.].
  (c) Point of Order in the Senate.--It shall not be in order 
in the Senate to consider any concurrent resolution on the 
budget for a fiscal year under section 632 of this title, or to 
consider any amendment to such a concurrent resolution, or to 
consider a conference report on such a concurrent resolution, 
if the level of total budget outlays for the first fiscal year 
that is set forth in such concurrent resolution or conference 
report exceeds the recommended level of Federal revenues set 
forth for that year by an amount that is greater than the 
maximum deficit amount for such fiscal year as determined under 
section 665(a) of this title or if the adoption of such 
amendment would result in a level of total budget outlays for 
that fiscal year which exceeds the recommended level of Federal 
revenues for that fiscal year, by an amount that is greater 
than the maximum deficit amount for such fiscal years as 
determined under section 665(a) of this title.
  (d) Adjustments.--
          (1) Notwithstanding any other provision of law, 
        concurrent resolutions on the budget for fiscal years 
        1992, 1993, 1994, and 1995 under section 632 or 635 of 
        this title may set forth levels consistent with 
        allocations increased by--
                  (A) amounts not to exceed the budget 
                authority amounts in section 251(b)(2)(E) (i) 
                and (ii) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 [2 U.S.C.A. Sec. 
                901(b)(2)(E) (i) and (ii)] and the composite 
                outlays per category consistent with them; and
                  (B) the budget authority and outlay amounts 
                in section 251(b)(1) of that Act [2 U.S.C.A. 
                Sec. 901(b)(1)].
          (2) For purposes of congressional consideration of 
        provisions described in sections 251(b)(2)(A), 
        251(b)(2)(B), 251(b)(2)(C), 251(b)(2)(D), and 252(e), 
        determinations under sections 633, 634, and 642 of this 
        title shall not take into account any new budget 
        authority, new entitlement authority, outlays, 
        receipts, or deficit effects in any fiscal year of 
        those provisions.

                         TITLE 2--THE CONGRESS

          * * * * * * *

                    CHAPTER 17B--IMPOUNDMENT CONTROL

SEC. 681. DISCLAIMER.

  Nothing contained in this Act, or in any amendments made by 
this Act, shall be construed as--
          (1) asserting or conceding the constitutional powers 
        or limitations of either the Congress or the President;
          (2) ratifying or approving any impoundment heretofore 
        or hereafter executed or approved by the President or 
        any other Federal officer or employee, except insofar 
        as pursuant to statutory authorization then in effect;
          (3) affecting in any way the claims or defenses of 
        any party to litigation concerning any impoundment; or
          (4) superseding any provision of law which requires 
        the obligation of budget authority or the making of 
        outlays thereunder.

SEC. 682. DEFINITIONS.

  For purposes of sections 682 to 688 of this title--
          (1) ``deferral of budget authority'' includes--
                  (A) withholding or delaying the obligation or 
                expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  (B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law;
          (2) ``Comptroller General'' means the Comptroller 
        General of the United States;
          (3) ``rescission bill'' means a bill or joint 
        resolution which only rescinds, in whole or in part, 
        budget authority proposed to be rescinded in a special 
        message transmitted by the President under section 683 
        of this title, and upon which the Congress completes 
        action before the end of the first period of 45 
        calendar days of continuous session of the Congress 
        after the date on which the President's message is 
        received by the Congress;
          (4) ``impoundment resolution'' means a resolution of 
        the House of Representatives or the Senate which only 
        expresses its disapproval of a proposed deferral of 
        budget authority set forth in a special message 
        transmitted by the President under section 684 of this 
        title; and
          (5) continuity of a session of the Congress shall be 
        considered as broken only by an adjournment of the 
        Congress sine die, and the days on which either House 
        is not in session because of an adjournment of more 
        than 3 days to a day certain shall be excluded in the 
        computation of the 45-day period referred to in 
        paragraph (3) of this section and in section 683 of 
        this title, and the 25-day periods referred to in 
        sections 687 and 688(b) (1) of this title. If a special 
        message is transmitted under section 683 of this title 
        during any Congress and the last session of such 
        Congress adjourns sine die before the expiration of 45 
        calendar days of continuous session (or a special 
        message is so transmitted after the last session of the 
        Congress adjourns sine die), the message shall be 
        deemed to have been retransmitted on the first day of 
        the succeeding Congress and the 45-day period referred 
        to in paragraph (3) of this section and in section 683 
        of this title (with respect to such message) shall 
        commence on the day after such first day.

SEC. 683. RESCISSION OF BUDGET AUTHORITY.

  (a) Transmittal of special message.--Whenever the President 
determines that all or part of any budget authority will not be 
required to carry out the full objectives or scope of programs 
for which it is provided or that such budget authority should 
be rescinded for fiscal policy or other reasons (including the 
termination of authorized projects or activities for which 
budget authority has been provided), or whenever all or part of 
budget authority provided for only one fiscal year is to be 
reserved from obligation for such fiscal year, the President 
shall transmit to both Houses of Congress a special message 
specifying--
          (1) the amount of budget authority which he proposes 
        to be rescinded or which is to be so reserved;
          (2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific project or 
        governmental functions involved;
          (3) the reasons why the budget authority should be 
        rescinded or is to be so reserved;
          (4) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        rescission or of the reservation; and
          (5) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed rescission or 
        the reservation and the decision to effect the proposed 
        rescission or the reservation, and to the maximum 
        extent practicable, the estimated effect of the 
        proposed rescission or the reservation upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
  (b) Requirement To Make Available for Obligation.--Any amount 
of budget authority proposed to be rescinded or that is to be 
reserved as set forth in such special message shall be made 
available for obligation unless, within the prescribed 45-day 
period, the Congress has completed action on a rescission bill 
rescinding all or part of the amount proposed to be rescinded 
or that is to be reserved. Funds made available for obligation 
under this procedure may not be proposed for rescission again.

SEC. 684. PROPOSED DEFERRALS OF BUDGET AUTHORITY.

  (a) Transmittal of Special Message.--Whenever the President, 
the Director of the Office of Management and Budget, the head 
of any department or agency of the United States, or any 
officer or employee of the United States proposes to defer any 
budget authority provided for a specific purpose or project, 
the President shall transmit to the House of Representatives 
and the Senate a special message specifying--
          (1) the amount of the budget authority proposed to be 
        deferred;
          (2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific projects or 
        governmental functions involved;
          (3) the period of time during which the budget 
        authority is proposed to be deferred;
          (4) the reasons for the proposed deferral, including 
        any legal authority invoked to justify the proposed 
        deferral;
          (5) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        deferral; and
          (6) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed deferral and 
        the decision to effect the proposed deferral, including 
        an analysis of such facts, circumstances, and 
        considerations in terms of their application to any 
        legal authority, including specific elements of legal 
        authority, invoked to justify such proposed deferral, 
        and to the maximum extent practicable, the estimated 
        effect of the proposed deferral upon the objects, 
        purposes, and programs for which the budget authority 
        is provided.
A special message may include one or more proposed deferrals of 
budget authority. A deferral may not be proposed for any period 
of time extending beyond the end of the fiscal year in which 
the special message proposing the deferral is transmitted to 
the House and the Senate.
  (b) Consistency With Legislative Policy.--Deferrals shall be 
permissible only--
          (1) to provide for contingencies;
          (2) to achieve savings made possible by or through 
        changes in requirements or greater efficiency of 
        operations; or
          (3) as specifically provided by law.
No officer or employee of the United States may defer any 
budget authority for any other purpose.
  (c) Exception.--The provisions of this section do not apply 
to any budget authority proposed to be rescinded or that is to 
be reserved as set forth in a special message required to be 
transmitted under section 683 of this title.

SEC. 685. TRANSMISSION OF MESSAGES; PUBLICATION.

  (a) Delivery to House and Senate.--Each special message 
transmitted under section 683 or 684 of this title shall be 
transmitted to the House of Representatives and the Senate on 
the same day, and shall be delivered to the Clerk of the House 
of Representatives if the House is not in session, and to the 
Secretary of the Senate if the Senate is not in session. Each 
special message so transmitted shall be referred to the 
appropriate committee of the House of Representatives and the 
Senate. Each such message shall be printed as a document of 
each House.
  (b) Delivery to Comptroller General.--A copy of each special 
message transmitted under section 683 or 684 of this title 
shall be transmitted to the Comptroller General on the same day 
it is transmitted to the House of Representatives and the 
Senate. In order to assist the Congress in the exercise of its 
functions under sections 683 and 684 of this title, the 
Comptroller General shall review each such message and inform 
the House of Representatives and the Senate as promptly as 
practicable with respect to--
          (1) in the case of a special message transmitted 
        under section 683 of this title, the facts surrounding 
        the proposed rescission or the reservation of budget 
        authority (including the probable effects thereof); and
          (2) in the case of a special message transmitted 
        under section 684 of this title, (A) the facts 
        surrounding each proposed deferral of budget authority 
        (including the probable effects thereof) and (B) 
        whether or not (or to what extent), in his judgment, 
        such proposed deferral is in accordance with existing 
        statutory authority.
    (c) Transmission of Supplementary Messages.--If any 
information contained in a special message transmitted under 
section 683 or 684 of this title is subsequently revised, the 
President shall transmit to both Houses of Congress and the 
Comptroller General a supplementary message stating and 
explaining such revision. Any such supplementary message shall 
be delivered, referred, and printed as provided in subsection 
(a) of this section. The Comptroller General shall promptly 
notify the House of Representatives and the Senate of any 
changes in the information submitted by him under subsection 
(b) of this section which may be necessitated by such revision.
  (d) Printing in Federal Register.--Any special message 
transmitted under section 683 or 684 of this title, and any 
supplementary message transmitted under subsection (c) of this 
section, shall be printed in the first issue of the Federal 
Register published after such transmittal.
  (e) Cumulative Reports of Proposed Rescissions, Reservations, 
and Deferrals of Budget Authority.--
          (1) The President shall submit a report to the House 
        of Representatives and the Senate, not later than the 
        10th day of each month during a fiscal year, listing 
        all budget authority for that fiscal year with respect 
        to which, as of the first day of such month--
                  (A) he has transmitted a special message 
                under section 683 of this title with respect to 
                a proposed rescission or a reservation; and
                  (B) he has transmitted a special message 
                under section 684 of this title proposing a 
                deferral.
        Such report shall also contain, with respect to each 
        such proposed rescission or deferral, or each such 
        reservation, the information required to be submitted 
        in the special message with respect thereto under 
        section 683 or 684 of this title.
          (2) Each report submitted under paragraph (1) shall 
        be printed in the first issue of the Federal Register 
        published after its submission.

SEC. 686. REPORTS BY COMPTROLLER GENERAL.

  (a) Failure To Transmit Special Message.--If the Comptroller 
General finds that the President, the Director of the Office of 
Management and Budget, the head of any department or agency of 
the United States, or any other officer or employee of the 
United States--
          (1) is to establish a reserve or proposes to defer 
        budget authority with respect to which the President is 
        required to transmit a special message under section 
        683 or 684 of this title; or
          (2) has ordered, permitted, or approved the 
        establishment of such a reserve or a deferral of budget 
        authority;
and that the President has failed to transmit a special message 
with respect to such reserve or deferral, the Comptroller 
General shall make a report on such reserve or deferral and any 
available information concerning it to both Houses of Congress. 
The provisions of sections 682 to 688 of this title shall apply 
with respect to such reserve or deferral in the same manner and 
with the same effect as if such report of the Comptroller 
General were a special message transmitted by the President 
under section 683 or 684 of this title, and, for purposes of 
sections 682 to 688 of this title, such report shall be 
considered a special message transmitted under section 683 or 
684 of this title.
  (b) Incorrect Classification of Special Message.--If the 
President has transmitted a special message to both Houses of 
Congress in accordance with section 683 or 684 of this title, 
and the Comptroller General believes that the President so 
transmitted the special message in accordance with one of those 
sections when the special message should have been transmitted 
in accordance with the other of those sections, the Comptroller 
General shall make a report to both Houses of the Congress 
setting forth his reasons.

SEC. 687. SUITS BY COMPTROLLER GENERAL.

  If, under this chapter, budget authority is required to be 
made available for obligation and such budget authority is not 
made available for obligation, the Comptroller General is 
hereby expressly empowered, through attorneys of his own 
selection, to bring a civil action in the United States 
District Court for the District of Columbia to require such 
budget authority to be made available for obligation, and such 
court is hereby expressly empowered to enter in such civil 
action, against any department, agency, officer or employee of 
the United States, any decree, judgment, or order which may be 
necessary or appropriate to make such budget authority 
available for obligation. No civil action shall be brought by 
the Comptroller General under this section until the expiration 
of 25 calendar days of continuous session of the Congress 
following the date on which an explanatory statement by the 
Comptroller General of the circumstances giving rise to the 
action contemplated has been filed with the Speaker of the 
House of Representatives and the President of the Senate.

SEC. 688. PROCEDURE IN HOUSE OF REPRESENTATIVES AND SENATE.

  (a) Referral.--Any rescission bill introduced with respect to 
a special message or impoundment resolution introduced with 
respect to a proposed deferral of budget authority shall be 
referred to the appropriate committee of the House of 
Representatives or the Senate, as the case may be.
  (b) Discharge of Committee.--
          (1) If the committee to which a rescission bill or 
        impoundment resolution has been referred has not 
        reported it at the end of 25 calendar days of 
        continuous session of the Congress after its 
        introduction, it is in order to move either to 
        discharge the committee from further consideration of 
        the bill or resolution or to discharge the committee 
        from further consideration of any other rescission bill 
        with respect to the same special message or impoundment 
        resolution with respect to the same proposed deferral, 
        as the case may be, which has been referred to the 
        committee.
          (2) A motion to discharge may be made only by an 
        individual favoring the bill or resolution, may be made 
        only if supported by one-fifth of the Members of the 
        House involved (a quorum being present), and is highly 
        privileged in the House and privileged in the Senate 
        (except that it may not be made after the committee has 
        reported a bill or resolution with respect to the same 
        special message or the same proposed deferral, as the 
        case may be); and debate thereon shall be limited to 
        not more than 1 hour, the time to be divided in the 
        House equally between those favoring and those opposing 
        the bill or resolution, and to be divided in the Senate 
        equally between, and controlled by, the majority leader 
        and the minority leader or their designees. An 
        amendment to the motion is not in order, and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
  (c) Floor Consideration in the House.--
          (1) When the committee of the House of 
        Representatives has reported, or has been discharged 
        from further consideration of, a rescission bill or 
        impoundment resolution, it shall at any time thereafter 
        be in order (even though a previous motion to the same 
        effect has been disagreed to) to move to proceed to the 
        consideration of the bill or resolution. The motion 
        shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor 
        shall it be in order to move to reconsider the vote by 
        which the motion is agreed to or disagreed to.
          (2) Debate on a rescission bill or impoundment 
        resolution shall be limited to not more than 2 hours, 
        which shall be divided equally between those favoring 
        and those opposing the bill or resolution. A motion 
        further to limit debate shall not be debatable. In the 
        case of an impoundment resolution, no amendment to, or 
        motion to recommit, the resolution shall be in order. 
        It shall not be in order to move to reconsider the vote 
        by which a rescission bill or impoundment resolution is 
        agreed to or disagreed to.
          (3) Motions to postpone, made with respect to the 
        consideration of a rescission bill or impoundment 
        resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
          (4) All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House 
        of Representatives to the procedure relating to any 
        rescission bill or impoundment resolution shall be 
        decided without debate.
          (5) Except to the extent specifically provided in the 
        preceding provisions of this subsection, consideration 
        of any rescission bill or impoundment resolution and 
        amendments thereto (or any conference report thereon) 
        shall be governed by the Rules of the House of 
        Representatives applicable to other bills and 
        resolutions, amendments, and conference reports in 
        similar circumstances.
  (d) Floor Consideration in the Senate.--
          (1) Debate in the Senate on any rescission bill or 
        impoundment resolution, and all amendments thereto (in 
        the case of a rescission bill) and debatable motions 
        and appeals in connection therewith, shall be limited 
        to not more than 10 hours. The time shall be equally 
        divided between, and controlled by, the majority leader 
        and the minority leader or their designees.
          (2) Debate in the Senate on any amendment to a 
        rescission bill shall be limited to 2 hours, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the bill. Debate on any amendment to 
        an amendment, to such a bill, and debate on any 
        debatable motion or appeal in connection with such a 
        bill or an impoundment resolution shall be limited to 1 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the bill or resolution, 
        except that in the event the manager of the bill or 
        resolution is in favor of any such amendment, motion, 
        or appeal, the time in opposition thereto, shall be 
        controlled by the minority leader or his designee. No 
        amendment that is not germane to the provisions of a 
        rescission bill shall be received. Such leaders, or 
        either of them, may, from the time under their control 
        on the passage of a rescission bill or impoundment 
        resolution, allot additional time to any Senator during 
        the consideration of any amendment, debatable motion, 
        or appeal.
          (3) A motion to further limit debate is not 
        debatable. In the case of a rescission bill, a motion 
        to recommit (except a motion to recommit with 
        instructions to report back within a specified number 
        of days, not to exceed 3, not counting any day on which 
        the Senate is not in session) is not in order. Debate 
        on any such motion to recommit shall be limited to one 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the concurrent resolution. 
        In the case of an impoundment resolution, no amendment 
        or motion to recommit is in order.
          (4) The conference report on any rescission bill 
        shall be in order in the Senate at any time after the 
        third day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which such a conference 
        report is reported and is available to Members of the 
        Senate. A motion to proceed to the consideration of the 
        conference report may be made even though a previous 
        motion to the same effect has been disagreed to.
          (5) During the consideration in the Senate of the 
        conference report on any rescission bill, debate shall 
        be limited to 2 hours, to be equally divided between, 
        and controlled by, the majority leader and minority 
        leader or their designees. Debate on any debatable 
        motion or appeal related to the conference report shall 
        be limited to 30 minutes, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the conference report.
          (6) Should the conference report be defeated, debate 
        on any request for a new conference and the appointment 
        of conferees shall be limited to one hour, to be 
        equally divided between, and controlled by, the manager 
        of the conference report and the minority leader or his 
        designee, and should any motion be made to instruct the 
        conferees before the conferees are named, debate on 
        such motion shall be limited to 30 minutes, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the conference report. Debate on any 
        amendment to any such instructions shall be limited to 
        20 minutes, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        conference report. In all cases when the manager of the 
        conference report is in favor of any motion, appeal, or 
        amendment, the time in opposition shall be under the 
        control of the minority leader or his designee.
          (7) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.
                         TITLE 2--THE CONGRESS

          * * * * * * *

       CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS

  Subchapter I--Elimination of Deficits in Excess of Maximum Deficit 
                                 Amount

SEC. 900. STATEMENT OF BUDGET ENFORCEMENT THROUGH SEQUESTRATION; 
                    DEFINITIONS.

  (a) Omitted.
  (b) General Statement of Budget Enforcement Through 
Sequestration.--This subchapter provides for the enforcement of 
the deficit reduction assumed in House Concurrent Resolution 
310 (101st Congress, second session) and the applicable deficit 
targets for fiscal years 1991 through 1995. Enforcement, as 
necessary, is to be implemented through sequestration--
          (1) to enforce discretionary spending levels assumed 
        in that resolution (with adjustments as provided 
        hereinafter);
          (2) to enforce the requirement that any legislation 
        increasing direct spending or decreasing revenues be on 
        a pay-as-you-go basis; and
          (3) to enforce the deficit targets specifically set 
        forth in the Congressional Budget and Impoundment 
        Control Act of 1974 (with adjustments as provided 
        hereinafter); applied in the order set forth above.
  (c) Definitions.--As used in this subchapter:
          (1) The terms ``budget authority'', ``new budget 
        authority'', ``outlays'', and ``deficit'' have the 
        meanings given to such terms in section 3 of the 
        Congressional Budget and Impoundment Control Act of 
        1974 [2 U.S.C.A. Sec. 622] (but including the treatment 
        specified in section 907(b)(3) of this title of the 
        Hospital Insurance Trust Fund) and the terms ``maximum 
        deficit amount'' and ``discretionary spending limit'' 
        shall mean the amounts specified in section 601 of that 
        Act [2 U.S.C.A. Sec. 665] as adjusted under sections 
        901 and 903 of this title.
          (2) The terms ``sequester'' and ``sequestration'' 
        refer to or mean the cancellation of budgetary 
        resources provided by discretionary appropriations or 
        direct spending law.
          (3) The term ``breach'' means, for any fiscal year, 
        the amount (if any) by which new budget authority or 
        outlays for that year (within a category of 
        discretionary appropriations) is above that category's 
        discretionary spending limit for new budget authority 
        or outlays for that year, as the case may be.
          (4) The term ``category'' means:
                  (A) For fiscal years 1991, 1992, and 1993, 
                any of the following subsets of discretionary 
                appropriations: defense, international, or 
                domestic.
        Discretionary appropriations in each of the three 
        categories shall be those so designated in the joint 
        statement of managers accompanying the conference 
        report on the Omnibus Budget Reconciliation Act of 
        1990. New accounts or activities shall be categorized 
        in consultation with the Committees on Appropriations 
        and the Budget of the House of Representatives and the 
        Senate.
                  (B) For fiscal years 1994 and 1995, all 
                discretionary appropriations.
        Contributions to the United States to offset the cost 
        of Operation Desert Shield shall not be counted within 
        any category.
          (5) The term ``baseline'' means the projection 
        (described in section 907 of this title) of current-
        year levels of new budget authority, outlays, receipts, 
        and the surplus or deficit into the budget year and the 
        outyears.
          (6) The term ``budgetary resources'' means--
                  (A) with respect to budget year 1991, new 
                budget authority; unobligated balances; new 
                loan guarantee commitments or limitations; new 
                direct loan obligations, commitments, or 
                limitations; direct spending authority; and 
                obligation limitations; or
                  (B) with respect to budget year 1992, 1993, 
                1994, or 1995, new budget authority; 
                unobligated balances; direct spending 
                authority; and obligation limitations.
          (7) The term ``discretionary appropriations'' means 
        budgetary resources (except to fund direct-spending 
        programs) provided in appropriation Acts.
          (8) The term ``direct spending'' means--
                  (A) budget authority provided by law other 
                than appropriation Acts;
                  (B) entitlement authority; and
                  (C) the food stamp program.
          (9) The term ``current'' means, with respect to OMB 
        estimates included with a budget submission under 
        section 1105(a) of Title 31, the estimates consistent 
        with the economic and technical assumptions underlying 
        that budget and with respect to estimates made after 
        submission of the fiscal year 1992 budget that are not 
        included with a budget submission, estimates consistent 
        with the economic and technical assumptions underlying 
        the most recently submitted President's budget.
          (10) The term ``real economic growth'', with respect 
        to any fiscal year, means the growth in the gross 
        national product during such fiscal year, adjusted for 
        inflation, consistent with Department of Commerce 
        definitions.
          (11) The term ``account'' means an item for which 
        appropriations are made in any appropriation Act and, 
        for items not provided for in appropriation Acts, such 
        term means an item for which there is a designated 
        budget account identification code number in the 
        President's budget.
          (12) The term ``budget year'' means, with respect to 
        a session of Congress, the fiscal year of the 
        Government that starts on October 1 of the calendar 
        year in which that session begins.
          (13) The term ``current year'' means, with respect to 
        a budget year, the fiscal year that immediately 
        precedes that budget year.
          (14) The term ``outyear'' means, with respect to a 
        budget year, any of the fiscal years that follow the 
        budget year through fiscal year 1995.
          (15) The term ``OMB'' means the Director of the 
        Office of Management and Budget.
          (16) The term ``CBO'' means the Director of the 
        Congressional Budget Office.
          (17) For purposes of sections 902 and 903 of this 
        title, legislation enacted during the second session of 
        the One Hundred First Congress shall be deemed to have 
        been enacted before the enactment of this Act.
          (18) As used in this subchapter, all references to 
        entitlement authority shall include the list of 
        mandatory appropriations included in the joint 
        explanatory statement of managers accompanying the 
        conference report on the Omnibus Budget Reconciliation 
        Act of 1990.
          (19) The term ``deposit insurance'' refers to the 
        expenses of the Federal Deposit Insurance Corporation 
        and the funds it incorporates, the Resolution Trust 
        Corporation, the National Credit Union Administration 
        and the funds it incorporates, the Office of Thrift 
        Supervision, the Comptroller of the Currency Assessment 
        Fund, and the RTC Office of Inspector General.
          (20) The term ``composite outlay rate'' means the 
        percent of new budget authority that is converted to 
        outlays in the fiscal year for which the budget 
        authority is provided and subsequent fiscal years, as 
        follows:
                  (A) For the international category, 46 
                percent for the first year, 20 percent for the 
                second year, 16 percent for the third year, and 
                8 percent for the fourth year.
                  (B) For the domestic category, 53 percent for 
                the first year, 31 percent for the second year, 
                12 percent for the third year, and 2 percent 
                for the fourth year.
          (21) The sale of an asset means the sale to the 
        public of any asset, whether physical or financial, 
        owned in whole or in part by the United States. The 
        term ``prepayment of a loan'' means payments to the 
        United States made in advance of the schedules set by 
        law or contract when the financial asset is first 
        acquired, such as the prepayment to the Federal 
        Financing Bank of loans guaranteed by the Rural 
        Electrification Administration. If a law or contract 
        allows a flexible payment schedule, the term ``in 
        advance'' shall mean in advance of the slowest payment 
        schedule allowed under such law or contract.

                                 NOTES

                    Effective and Termination Dates

  Pub. L. 103-66, Title XIV, Sec. 14002(c)(3)(A), Aug. 10, 
1993, 107 Stat. 684, provided that: ``Notwithstanding section 
275(b) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 [section 275(b) of Pub. L. 99-177, set out as a note 
under this section], sections 250, 251, 252, and 254 through 
258C of that Act [this section, sections 901, 902, and 904 
through 908 of this title] shall expire on September 30, 
1998.''

                       Executive Order No. 12857

                      Aug. 4, 1993, 58 F.R. 42181

                             Budget Control

  By the authority vested in me as President of the United 
States by the Constitution and the laws of the United States of 
America, including section 1105 of title 31, United States Code 
[section 1105 of Title 31, Money and Finance], it is hereby 
ordered as follows:
  Section 1.--Purpose. The purpose of this order is to create a 
mechanism to monitor total costs of direct spending programs, 
and, in the event that actual or projected costs exceed 
targeted levels, to require that the budget address adjustments 
in direct spending.
    Sec. 2.--Establishment of Direct Spending Targets.
  (a) In General.--The initial direct spending targets for each 
of fiscal years 1994 through 1997 shall equal total outlays for 
all direct spending except net interest and deposit insurance 
as determined by the Director of the Office of Management and 
Budget (Director) under subsection (b).
  (b) Initial Report by Director.--(1) Not later than 30 days 
after the date of enactment of the Omnibus Budget 
Reconciliation Act of 1993 (OBRA) [Aug. 10, 1993], the Director 
shall submit a report to the Congress setting forth projected 
direct spending targets for each of fiscal years 1994 through 
1997.
  (2) The Director's projections shall be based on legislation 
enacted as of 5 days before the report is submitted under 
paragraph (1). To the extent feasible, the Director shall use 
the same economic and technical assumptions used in preparing 
the concurrent resolution on the budget for fiscal year 1994 
(H.Con.Res. 64).
  (c) Adjustments. Direct spending targets shall be 
subsequently adjusted by the Director under Section 6.
    Sec. 3. Annual Review of Direct Spending and Receipts by 
President. As part of each budget submitted under section 
1105(a) of title 31, United States Code, the Director shall 
provide an annual review of direct spending and receipts, which 
shall include (1) information supporting the adjustment of 
direct spending targets pursuant to Section 6, (2) information 
on total outlays for programs covered by the direct spending 
targets, including actual outlays for the prior fiscal year and 
projected outlays for the current fiscal year and the 5 
succeeding fiscal years, and (3) information on the major 
categories of Federal receipts, including a comparison between 
the levels of those receipts and the levels projected as of the 
date of enactment of OBRA [Aug. 10, 1993].
    Sec. 4. Special Direct Spending Message by President. (a) 
Trigger.--In the event that the information submitted under 
Section 3 indicates--
          (1) that actual outlays for direct spending in the 
        prior fiscal year exceeded the applicable direct 
        spending target, or
          (2) that outlays for direct spending for the current 
        or budget year are projected to exceed the applicable 
        direct spending targets, the Director shall include in 
        the budget a special direct spending message meeting 
        the requirements of subsection (b) of this Section.
  (b) Contents.--(1) The special direct spending message shall 
include:
          (A) An explanation of any adjustments to the direct 
        spending targets pursuant to Section 6.
          (B) An analysis of the variance in direct spending 
        over the adjusted direct spending targets.
          (C) The President's recommendations for addressing 
        the direct spending overages, if any, in the prior, 
        current, or budget year.
  (2) The recommendations may consist of any of the following:
          (A) Proposed legislative changes to reduce outlays, 
        increase revenues, or both, in order to recoup or 
        eliminate the overage for the prior, current, and 
        budget years in the current year, the budget year, and 
        the 4 out-years.
          (B) Proposed legislative changes to reduce outlays, 
        increase revenues, or both, in order to recoup or 
        eliminate part of the overage for the prior, current, 
        and budget year in the current year, the budget year, 
        and the 4 out-years, accompanied by a finding by the 
        President that, because of economic conditions or for 
        other specified reasons, only some of the overage 
        should be recouped or eliminated by outlay reductions 
        or revenue increases, or both.
          (C) A proposal to make no legislative changes to 
        recoup or eliminate any overage, accompanied by a 
        finding by the President that, because of economic 
        conditions or for other specified reasons, no 
        legislative changes are warranted.
  (3) Any proposed legislative change under paragraph (2) to 
reduce outlays may include reductions in direct spending or in 
the discretionary spending limits under section 601 of the 
Congressional Budget Act of 1974 [section 665 of this title].
    Sec. 5. Proposed Special Direct Spending Resolution. If the 
President recommends reductions consistent with subsection 
4(b)(2)(A) or (B), the special direct spending message shall 
include the text of a special direct spending resolution 
implementing the President's recommendations through 
reconciliation directives instructing the appropriate 
committees of the House of Representatives and Senate to 
determine and recommend changes in laws within their 
jurisdictions to reduce outlays or increase revenues by 
specified amounts. If the President recommends no reductions 
pursuant to Section 4(b)(2)(C), the special direct spending 
message shall include the text of a special resolution 
concurring in the President's recommendation of no legislative 
action.
    Sec. 6. Adjustments to Direct Spending Targets.
  (a) Required Annual Adjustments.--Prior to the submission of 
the President's budget for each of fiscal years 1995 through 
1997, the Director shall adjust the direct spending targets in 
accordance with this Section. Any such adjustments shall be 
reflected in the targets used in the report under Section 3 and 
message (if any) under Section 4.
  (b) Adjustment for Increases in Beneficiaries.--(1) The 
Director shall adjust the direct spending targets for increases 
(if any) in actual or projected numbers of beneficiaries under 
direct spending programs for which the number of beneficiaries 
is a variable in determining costs.
  (2) The adjustment shall be made by--
          (A) computing, for each program under paragraph (1), 
        the percentage change between (i) the annual average 
        number of beneficiaries under that program (including 
        actual numbers of beneficiaries for the prior fiscal 
        year and projections for the budget and subsequent 
        fiscal years) to be used in the President's budget with 
        which the adjustments will be submitted, and (ii) the 
        annual average number of beneficiaries used in the 
        adjustments made by the Director in the previous year 
        (or, in the case of adjustments made in 1994, the 
        annual average number of beneficiaries used in the 
        Director's initial report under Section 2(b));
          (B) applying the percentages computed under 
        subparagraph (A) to the projected levels of outlays for 
        each program consistent with the direct spending 
        targets in effect immediately prior to the adjustment; 
        and
          (C) adding the results of the calculations required 
        by subparagraph (B) to the direct spending targets in 
        effect immediately prior to the adjustment.
  (3) No adjustment shall be made for any program for a fiscal 
year in which the percentage increase computed under paragraph 
(2)(A) is less than or equal to zero.
  (c) Adjustments for Revenue Legislation.--The Director shall 
adjust the targets as follows:
          (1) they shall be increased by the amount of any 
        increase in receipts; or
          (2) they shall be decreased by the amount of any 
        decrease in receipts, resulting from receipts 
        legislation enacted after the date of enactment of OBRA 
        [Aug. 10, 1993], except legislation enacted in response 
        to the message transmitted under Section 4.
  (d) Adjustments To Reflect Congressional Decisions.--Upon 
enactment of a reconciliation bill enacted in response to a 
message submitted under Section 4, the Director shall adjust 
direct spending targets for the current year, the budget year, 
and each outyear through 1997 by--
          (1) increasing the target for the current year and 
        the budget year by the amount stated for that year in 
        that reconciliation bill (but if a separate vote was 
        required by Congressional rules, only if that vote has 
        occurred); and
          (2) decreasing the target for the current, budget, 
        and outyears through 1997 by the amount of reductions 
        in direct spending enacted in that reconciliation bill.
  (e) Designated Emergencies.--The Director shall adjust the 
targets to reflect the costs of legislation that is designated 
as an emergency by Congress and the President under section 
252(e) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 [section 902(e) of this title].
    Sec. 7. Relationship to Balanced Budget and Emergency 
Deficit Control Act. Recommendations pursuant to Section 4 
shall include a provision specifying that reductions in outlays 
or increases in receipts resulting from that legislation shall 
not be taken into account for purposes of any budget 
enforcement procedures under the Balanced Budget and Emergency 
Deficit Control Act of 1985 [Pub.L. 99-177; see Tables].
    Sec. 8. Estimating Margin. For any fiscal year for which 
the overage is less than one-half of 1 percent of the direct 
spending target for that year, the procedures set forth in 
Section 4 shall not apply.
    Sec. 9. Means-Tested Programs. In making recommendations 
under Section 4, the Director shall seriously consider all 
other alternatives before proposing reductions in means-tested 
programs.
    Sec. 10. Effective Date. This order shall take effect upon 
enactment of OBRA [Pub.L. 103-66, which was approved Aug. 10, 
1993]. This order shall apply to direct spending targets for 
fiscal years 1994 through 1997 and shall expire at the end of 
fiscal year 1997.
                                                William J. Clinton.

SEC. 901. ENFORCING DISCRETIONARY SPENDING LIMITS.

  (a) Fiscal Years 1991-1998 Enforcement.--
          (1) Sequestration.--Within 15 calendar days after 
        Congress adjourns to end a session and on the same day 
        as a sequestration (if any) under section 902 of this 
        title and section 903 of this title, there shall be a 
        sequestration to eliminate a budget-year breach, if 
        any, within any category.
          (2) Eliminating a breach.--Each non-exempt account 
        within a category shall be reduced by a dollar amount 
        calculated by multiplying the baseline level of 
        sequestrable budgetary resources in that account at 
        that time by the uniform percentage necessary to 
        eliminate a breach within that category; except that 
        the health programs set forth in section 906(e) of this 
        title shall not be reduced by more than 2 percent and 
        the uniform percent applicable to all other programs 
        under this paragraph shall be increased (if necessary) 
        to a level sufficient to eliminate that breach. If, 
        within a category, the discretionary spending limits 
        for both new budget authority and outlays are breached, 
        the uniform percentage shall be calculated by--
                  (A) first, calculating the uniform percentage 
                necessary to eliminate the breach in new budget 
                authority, and
                  (B) second, if any breach in outlays remains, 
                increasing the uniform percentage to a level 
                sufficient to eliminate that breach.
          (3) Military personnel.--If the President uses the 
        authority to exempt any military personnel from 
        sequestration under section 905(h) of this title, each 
        account within subfunctional category 051 (other than 
        those military personnel accounts for which the 
        authority provided under section 905(h) of this title 
        has been exercised) shall be further reduced by a 
        dollar amount calculated by multiplying the enacted 
        level of non-exempt budgetary resources in that account 
        at that time by the uniform percentage necessary to 
        offset the total dollar amount by which outlays are not 
        reduced in military personnel accounts by reason of the 
        use of such authority.
          (4) Part-year appropriations.--If, on the date 
        specified in paragraph (1), there is in effect an Act 
        making or continuing appropriations for part of a 
        fiscal year for any budget account, then the dollar 
        sequestration calculated for that account under 
        paragraphs (2) and (3) shall be subtracted from--
                  (A) the annualized amount otherwise available 
                by law in that account under that or a 
                subsequent part-year appropriation; and
                  (B) when a full-year appropriation for that 
                account is enacted, from the amount otherwise 
                provided by the full-year appropriation.
          (5) Look-back.--If, after June 30, an appropriation 
        for the fiscal year in progress is enacted that causes 
        a breach within a category for that year (after taking 
        into account any sequestration of amounts within that 
        category), the discretionary spending limits for that 
        category for the next fiscal year shall be reduced by 
        the amount or amounts of that breach.
          (6) Within-session sequestration.--If an 
        appropriation for a fiscal year in progress is enacted 
        (after Congress adjourns to end the session for that 
        budget year and before July 1 of that fiscal year) that 
        causes a breach within a category for that year (after 
        taking into account any prior sequestration of amounts 
        within that category), 15 days later there shall be a 
        sequestration to eliminate that breach within that 
        category following the procedures set forth in 
        paragraphs (2) through (4).
          (7) OMB estimates.--As soon as practicable after 
        Congress completes action on any discretionary 
        appropriation, CBO, after consultation with the 
        Committees on the Budget of the House of 
        Representatives and the Senate, shall provide OMB with 
        an estimate of the amount of discretionary new budget 
        authority and outlays for the current year (if any) and 
        the budget year provided by that legislation. Within 5 
        calendar days after the enactment of any discretionary 
        appropriation, OMB shall transmit a report to the House 
        of Representatives and to the Senate containing the CBO 
        estimate of that legislation, an OMB estimate of the 
        amount of discretionary new budget authority and 
        outlays for the current year (if any) and the budget 
        year provided by that legislation, and an explanation 
        of any difference between the two estimates. For 
        purposes of this paragraph, amounts provided by annual 
        appropriations shall include any new budget authority 
        and outlays for those years in accounts for which 
        funding is provided in that legislation that result 
        from previously enacted legislation. Those OMB 
        estimates shall be made using current economic and 
        technical assumptions. OMB shall use the OMB estimates 
        transmitted to the Congress under this paragraph for 
        the purposes of this subsection. OMB and CBO shall 
        prepare estimates under this paragraph in conformance 
        with scorekeeping guidelines determined after 
        consultation among the House and Senate Committees on 
        the Budget, CBO, and OMB.
  (b) Adjustments to Discretionary Spending Limits.--
          (1) When the President submits the budget under 
        section 1105(a) of Title 31 for budget year 1992, 1993, 
        1994, 1995, 1996, 1997, or 1998 (except as otherwise 
        indicated), OMB shall calculate (in the order set forth 
        below), and the budget shall include, adjustments to 
        discretionary spending limits (and those limits as 
        cumulatively adjusted) for the budget year and each 
        outyear through 1998 to reflect the following:
                  (A) Changes in concepts and definitions.--The 
                adjustments produced by the amendments made by 
                Title XIII of the Omnibus Budget Reconciliation 
                Act of 1990 or by any other changes in concepts 
                and definitions shall equal the baseline levels 
                of new budget authority and outlays using up-
                to-date concepts and definitions minus those 
                levels using the concepts and definitions in 
                effect before such changes. Such other changes 
                in concepts and definitions may only be made in 
                consultation with the Committees on 
                Appropriations, the Budget, Government 
                Operations, and Governmental Affairs of the 
                House of Representatives and Senate.
                  (B) Changes in inflation.--
                          (i) For a budget submitted for budget 
                        year 1992, 1993, 1994, or 1995, the 
                        adjustments produced by changes in 
                        inflation shall equal the levels of 
                        discretionary new budget authority and 
                        outlays in the baseline (calculated 
                        using current estimates) subtracted 
                        from those levels in that baseline 
                        recalculated with the baseline 
                        inflators for the budget year only, 
                        multiplied by the inflation adjustment 
                        factor computed under clause (ii).
                          (ii) For a budget year the inflation 
                        adjustment factor shall equal the ratio 
                        between the level of year-over-year 
                        inflation measured for the fiscal year 
                        most recently completed and the 
                        applicable estimated level for that 
                        year set forth below: For 1990, 1.041; 
                        for 1991, 1.052; for 1992, 1.041; and 
                        for 1993, 1.033.
                        Inflation shall be measured by the 
                        average of the estimated gross national 
                        product implicit price deflator index 
                        for a fiscal year divided by the 
                        average index for the prior fiscal 
                        year.
                          (iii) For a budget submitted for 
                        budget year 1996, 1997, or 1998, the 
                        adjustments shall be those necessary to 
                        reflect changes in inflation estimates 
                        since those of March 31, 1993, set 
                        forth on page 46 of House Conference 
                        Report 103-48.
                  (C) Credit reestimates.--For a budget 
                submitted for fiscal year 1993 or 1994, the 
                adjustments produced by reestimates to costs of 
                Federal credit programs shall be, for any such 
                program, a current estimate of new budget 
                authority and outlays associated with a 
                baseline projection of the prior year's gross 
                loan level for that program minus the baseline 
                projection of the prior year's new budget 
                authority and associated outlays for that 
                program.
          (2) When OMB submits a sequestration report under 
        section 904(g) or (h) of this title for fiscal year 
        1991, 1992, 1993, 1994, 1995, 1996, 1997, or 1998 
        (except as otherwise indicated), OMB shall calculate 
        (in the order set forth below), and the sequestration 
        report, and subsequent budgets submitted by the 
        President under section 1105(a) of Title 31, shall 
        include, adjustments to discretionary spending limits 
        (and those limits as adjusted) for the fiscal year and 
        each succeeding year through 1998, as follows:
                  (A) IRS funding.--To the extent that 
                appropriations are enacted that provide 
                additional new budget authority or result in 
                additional outlays (as compared with the CBO 
                baseline constructed in June 1990) for the 
                Internal Revenue Service compliance initiative 
                in any fiscal year, the adjustments for that 
                year shall be those amounts, but shall not 
                exceed the amounts set forth below--
                          (i) for fiscal year 1991, 
                        $191,000,000 in new budget authority 
                        and $183,000,000 in outlays; s
                          (ii) for fiscal year 1992, 
                        $172,000,000 in new budget authority 
                        and $169,000,000 in outlays;
                          (iii) for fiscal year 1993, 
                        $183,000,000 in new budget authority 
                        and $179,000,000 in outlays;
                          (iv) for fiscal year 1994, 
                        $187,000,000 in new budget authority 
                        and $183,000,000 in outlays; and
                          (v) for fiscal year 1995, 
                        $188,000,000 in new budget authority 
                        and $184,000,000 in outlays; and
                the prior-year outlays resulting from these 
                appropriations of budget authority.
                  (B) Debt forgiveness.--If, in calendar year 
                1990 or 1991, an appropriation is enacted that 
                forgives the Arab Republic of Egypt's foreign 
                military sales indebtedness to the United 
                States and any part of the Government of 
                Poland's indebtedness to the United States, the 
                adjustment shall be the estimated costs (in new 
                budget authority and outlays, in all years) of 
                that forgiveness.
                  (C) IMF funding.--If, in fiscal year 1991, 
                1992, 1993, 1994, or 1995 an appropriation is 
                enacted to provide to the International 
                Monetary Fund the dollar equivalent, in terms 
                of Special Drawing Rights, of the increase in 
                the United States quota as part of the 
                International Monetary Fund Ninth General 
                Review of Quotas, the adjustment shall be the 
                amount provided by that appropriation.
                  (D) Emergency appropriations.--
                          (i) If, for any fiscal year, 
                        appropriations for discretionary 
                        accounts are enacted that the President 
                        designates as emergency requirements 
                        and that the Congress so designates in 
                        statute, the adjustment shall be the 
                        total of such appropriations in 
                        discretionary accounts designated as 
                        emergency requirements and the outlays 
                        flowing in all years from such 
                        appropriations. This subparagraph shall 
                        not apply to appropriations to cover 
                        agricultural crop disaster assistance.
                          (ii) The costs for operation Desert 
                        Shield are to be treated as emergency 
                        funding requirements not subject to the 
                        defense spending limits. Funding for 
                        Desert Shield will be provided through 
                        the normal legislative process. Desert 
                        Shield costs should be accommodated 
                        through Allied burden-sharing, 
                        subsequent appropriation Acts, and if 
                        the President so chooses, through 
                        offsets within other defense accounts. 
                        Emergency Desert Shield costs mean 
                        those incremental costs associated with 
                        the increase in operations in the 
                        Middle East and do not include costs 
                        that would be experienced by the 
                        Department of Defense as part of its 
                        normal operations absent Operation 
                        Desert Shield.
                  (E) Special allowance for discretionary new 
                budget authority.--
                          (i) For each of fiscal years 1992 and 
                        1993, the adjustment for the domestic 
                        category in each year shall be an 
                        amount equal to 0.1 percent of the sum 
                        of the adjusted discretionary spending 
                        limits on new budget authority for all 
                        categories for fiscal years 1991, 1992, 
                        and 1993 (cumulatively), together with 
                        outlays associated therewith 
                        (calculated at the composite outlay 
                        rate for the domestic category);
                          (ii) for each of fiscal years 1992 
                        and 1993, the adjustment for the 
                        international category in each year 
                        shall be an amount equal to 0.079 
                        percent of the sum of the adjusted 
                        discretionary spending limits on new 
                        budget authority for all categories for 
                        fiscal years 1991, 1992, and 1993 
                        (cumulatively), together with outlays 
                        associated therewith (calculated at the 
                        composite outlay rate for the 
                        international category);
                          (iii) if, for fiscal years 1992 and 
                        1993, the amount of new budget 
                        authority provided in appropriation 
                        Acts exceeds the discretionary spending 
                        limit on new budget authority for any 
                        category due to technical estimates 
                        made by the Director of the Office of 
                        Management and Budget, the adjustment 
                        is the amount of the excess, but not to 
                        exceed an amount (for 1992 and 1993 
                        together) equal to 0.042 percent of the 
                        sum of the adjusted discretionary 
                        limits on new budget authority for all 
                        categories for fiscal years 1991, 1992, 
                        and 1993 (cumulatively); and
                          (iv) if, for fiscal years 1994, 1995, 
                        1996, 1997, and 1998, the amount of new 
                        budget authority provided in 
                        appropriation Acts exceeds the 
                        discretionary spending limit on new 
                        budget authority due to technical 
                        estimates made by the director of the 
                        Office of Management and Budget, the 
                        adjustment is the amount of the excess, 
                        but not to exceed an amount (for any 
                        one fiscal year) equal to 0.1 percent 
                        of the adjusted descretionary spending 
                        limit on new budget authority for that 
                        fiscal year.
                  (F) Special outlay allowance.--If in any 
                fiscal year outlays for a category exceed the 
                discretionary spending limit for that category 
                but new budget authority does not exceed its 
                limit for that category (after application of 
                the first step of a sequestration described in 
                subsection (a)(2) of this section, if 
                necessary), the adjustment in outlays is the 
                amount of the excess, but not to exceed 
                $2,500,000,000 in the defense category, 
                $1,500,000,000 in the international category, 
                or $2,500,000,000 in the domestic category (as 
                applicable) in fiscal year 1991, 1992, or 1993, 
                and not to exceed $6,500,000,000 in fiscal year 
                1994 or 1995 less any of the outlay adjustments 
                made under subparagraph (E) for a category for 
                a fiscal year, and not to exceed 0.5 percent of 
                the adjusted descretionary spending limit on 
                outlays for the fiscal year in fiscal year 
                1996, 1997, or 1998.
                  (G) Net guarantee costs.--The net costs for 
                fiscal year 1994 and 1995 of the appropriation 
                made under section 2186 of Title 22 are not 
                subject to the discretionary spending limits or 
                the Appropriations Committee's Foreign 
                Operations Subcommittee's 602(b) allocation in 
                fiscal year 1994 and 1995.

SEC. 902. ENFORCING PAY-AS-YOU-GO.

  (a) Fiscal year 1992-1998 Enforcement.--The purpose of this 
section is to assure that any legislation (enacted after 
November 5, 1990) affecting direct spending or receipts that 
increases the deficit in any fiscal year covered by this Act 
will trigger an offsetting sequestration.
  (b) Sequestration; Look-back.--Within 15 calendar days after 
Congress adjourns to end a session (other than of the One 
Hundred First Congress) and on the same day as a sequestration 
(if any) under section 901 of this title and section 903 of 
this title, there shall be a sequestration to offset the amount 
of any net deficit increase in that fiscal year and the prior 
fiscal year caused by all direct spending and receipts 
legislation enacted after the date of enactment of this section 
(after adjusting for any prior sequestration as provided by 
paragraph (2)). OMB shall calculate the amount of deficit 
increase, if any, in those fiscal years by adding--
          (1) all applicable estimates of direct spending and 
        receipts legislation transmitted under subsection (d) 
        of this section applicable to those fiscal years, other 
        than any amounts included in such estimates resulting 
        from--
                  (A) full funding of, and continuation of, the 
                deposit insurance guarantee commitment in 
                effect on November 5, 1990, and
                  (B) emergency provisions as designated under 
                subsection (e) of this section; and
          (2) the estimated amount of savings in direct 
        spending programs applicable to those fiscal years 
        resulting from the prior year's sequestration under 
        this section or section 903 of this title, if any 
        (except for any amounts sequestered as a result of a 
        net deficit increase in the fiscal year immediately 
        preceding the prior fiscal year), as published in OMB's 
        end-of-session sequestration report for that prior 
        year.
  (c) Eliminating a Deficit Increase.--
          (1) The amount required to be sequestered in a fiscal 
        year under subsection (b) of this section shall be 
        obtained from non-exempt direct spending accounts from 
        actions taken in the following order:
                  (A) First.--All reductions in automatic 
                spending increases specified in section 906(a) 
                of this title shall be made.
                  (B) Second.--If additional reductions in 
                direct spending accounts are required to be 
                made, the maximum reductions permissible under 
                sections 906(b) of this title (guaranteed 
                student loans) and 906(c) of this title (foster 
                care and adoption assistance) shall be made.
                  (C) Third.--
                          (i) If additional reductions in 
                        direct spending accounts are required 
                        to be made, each remaining non-exempt 
                        direct spending account shall be 
                        reduced by the uniform percentage 
                        necessary to make the reductions in 
                        direct spending required by paragraph 
                        (1); except that the medicare programs 
                        specified in section 906(d) of this 
                        title shall not be reduced by more than 
                        4 percent and the uniform percentage 
                        applicable to all other direct spending 
                        programs under this paragraph shall be 
                        increased (if necessary) to a level 
                        sufficient to achieve the required 
                        reduction in direct spending.
                          (ii) For purposes of determining 
                        reductions under clause (i), outlay 
                        reductions (as a result of 
                        sequestration of Commodity Credit 
                        Corporation commodity price support 
                        contracts in the fiscal year of a 
                        sequestration) that would occur in the 
                        following fiscal year shall be credited 
                        as outlay reductions in the fiscal year 
                        of the sequestration.
                  (2) For purposes of this subsection, accounts 
                shall be assumed to be at the level in the 
                baseline.
  (d) OMB Estimates.--As soon as practicable after Congress 
completes action on any direct spending or receipts legislation 
enacted after November 5, 1990, after consultation with the 
Committees on the Budget of the House of Representatives and 
the Senate, CBO shall provide OMB with an estimate of the 
amount of change in outlays or receipts, as the case may be, in 
each fiscal year through fiscal year 1998 resulting from that 
legislation. Within 5 calendar days after the enactment of any 
direct spending or receipts legislation enacted after November 
5, 1990, OMB shall transmit a report to the House of 
Representatives and to the Senate containing such CBO estimate 
of that legislation, an OMB estimate of the amount of change in 
outlays or receipts, as the case may be, in each fiscal year 
through fiscal year 1998 resulting from that legislation, and 
an explanation of any difference between the two estimates. 
Those OMB estimates shall be made using current economic and 
technical assumptions. OMB and CBO shall prepare estimates 
under this paragraph in conformance with scorekeeping 
guidelines determined after consultation among the House and 
Senate Committees on the Budget, CBO, and OMB.
  (e) Emergency Legislation.--If, for any fiscal year from 1991 
through 1998, a provision of direct spending or receipts 
legislation is enacted that the President designates as an 
emergency requirement and that the Congress so designates in 
statute, the amounts of new budget authority, outlays, and 
receipts in all fiscal years through 1995 resulting from that 
provision shall be designated as an emergency requirement in 
the reports required under subsection (d) of this section. This 
subsection shall not apply to direct spending provisions to 
cover agricultural crop disaster assistance.

SEC. 904. REPORTS AND ORDERS.

  (a) Timetable.--The timetable with respect to this subchapter 
for any budget year is as follows:
  Date: Action to be completed:
  January 21--Notification regarding optional adjustment of 
maximum deficit amount.
  5 days before the President's budget submission--CBO 
sequestration preview report.
  The President's budget submission--OMB sequestration preview 
report.
  August 10--Notification regarding military personnel.
  August 15--CBO sequestration update report.
  August 20--OMB sequestration update report.
  10 days after end of session--CBO final sequestration report.
  15 days after end of session--OMB final sequestration report; 
Presidential order.
  30 days later--GAO compliance report.
  (b) Submission and Availability of Reports.--Each report 
required by this section shall be submitted, in the case of 
CBO, to the House of Representatives, the Senate and OMB and, 
in the case of OMB, to the House of Representatives, the 
Senate, and the President on the day it is issued. On the 
following day a notice of the report shall be printed in the 
Federal Register.
  (c) Optional Adjustment of Maximum Deficit Amounts.--With 
respect to budget year 1994 or 1995, on the date specified in 
subsection (a) of this section the President shall notify the 
House of Representatives and the Senate of his decision 
regarding the optional adjustment of the maximum deficit amount 
(as allowed under section 903(g)(1)(B) of this title).
  (d) Sequestration Preview Reports.--
          (1) Reporting requirement.--On the dates specified in 
        subsection (a) of this section, OMB and CBO shall issue 
        a preview report regarding discretionary, pay-as-you-
        go, and deficit sequestration based on laws enacted 
        through those dates.
          (2) Discretionary sequestration report.--The preview 
        reports shall set forth estimates for the current year 
        and each subsequent year through 1998 of the applicable 
        discretionary spending limits for each category and an 
        explanation of any adjustments in such limits under 
        section 901 of this title.
          (3) Pay-as-you-go sequestration reports.--The preview 
        reports shall set forth, for the current year and the 
        budget year, estimates for each of the following:
                  (A) The amount of net deficit increase or 
                decrease, if any, calculated under subsection 
                902(b) of this title.
                  (B) A list identifying each law enacted and 
                sequestration implemented after November 5, 
                1990, included in the calculation of the amount 
                of deficit increase or decrease and specifying 
                the budgetary effect of each such law.
                  (C) The sequestration percentage or (if the 
                required sequestration percentage is greater 
                than the maximum allowable percentage for 
                medicare) percentages necessary to eliminate a 
                deficit increase under section 902(c) of this 
                title.
          (4) Deficit sequestration reports.--The preview 
        reports shall set forth for the budget year estimates 
        for each of the following:
                  (A) The maximum deficit amount, the estimated 
                deficit calculated under section 903(b) of this 
                title, the excess deficit, and the margin.
                  (B) The amount of reductions required under 
                section 902 of this title, the excess deficit 
                remaining after those reductions have been 
                made, and the amount of reductions required 
                from defense accounts and the reductions 
                required from non-defense accounts.
                  (C) The sequestration percentage necessary to 
                achieve the required reduction in defense 
                accounts under section 903(d) of this title.
                  (D) The reductions required under sections 
                903(e)(1) and 903(e)(2) of this title.
                  (E) The sequestration percentage necessary to 
                achieve the required reduction in non-defense 
                accounts under section 903(e)(3) of this title.
        The CBO report need not set forth the items other than 
        the maximum deficit amount for fiscal year 1992, 1993, 
        or any fiscal year for which the President notifies the 
        House of Representatives and the Senate that he will 
        adjust the maximum deficit amount under the option 
        under section 903(g)(1)(B) of this title.
          (5) Explanation of differences.--The OMB reports 
        shall explain the differences between OMB and CBO 
        estimates for each item set forth in this subsection.
  (e) Notification Regarding Military Personnel.--On or before 
the date specified in subsection (a) of this section, the 
President shall notify the Congress of the manner in which he 
intends to exercise flexibility with respect to military 
personnel accounts under section 905(h) of this title.
  (f) Sequestration Update Reports.--On the dates specified in 
subsection (a) of this section, OMB and CBO shall issue a 
sequestration update report, reflecting laws enacted through 
those dates, containing all of the information required in the 
sequestration preview reports.
  (g) Final Sequestration Reports.--
          (1) Reporting requirement.--On the dates specified in 
        subsection (a) of this section, OMB and CBO shall issue 
        a final sequestration report, updated to reflect laws 
        enacted through those dates.
          (2) Discretionary sequestration reports.--The final 
        reports shall set forth estimates for each of the 
        following:
                  (A) For the current year and each subsequent 
                year through 1998 the applicable discretionary 
                spending limits for each category and an 
                explanation of any adjustments in such limits 
                under section 901 of this title.
                  (B) For the current year and the budget year 
                the estimated new budget authority and outlays 
                for each category and the breach, if any, in 
                each category.
                  (C) For each category for which a 
                sequestration is required, the sequestration 
                percentages necessary to achieve the required 
                reduction.
                  (D) For the budget year, for each account to 
                be sequestered, estimates of the baseline level 
                of sequestrable [FN1] budgetary resources and 
                resulting outlays and the amount of budgetary 
                resources to be sequestered and resulting 
                outlay reductions.
          (3) Pay-as-you-go and deficit sequestration 
        reports.--The final reports shall contain all the 
        information required in the pay-as-you-go and deficit 
        sequestration preview reports. In addition, these 
        reports shall contain, for the budget year, for each 
        account to be sequestered, estimates of the baseline 
        level of sequestrable budgetary resources and resulting 
        outlays and the amount of budgetary resources to be 
        sequestered and resulting outlay reductions. The 
        reports shall also contain estimates of the effects on 
        outlays of the sequestration in each outyear through 
        1998 for direct spending programs.
          (4) Reports on sequestration to reduce the violent 
        crime reduction trust fund.--The final reports shall 
        set forth for the budget year estimates for each of the 
        following:
                  (A) The amount of budget authority 
                appropriated from the Violent Crime Reduction 
                Trust Fund and outlays resulting from those 
                appropriations.
                  (B) The sequestration percentage and 
                reductions, if any, required under section 901a 
                of this title.
          (5) Explanation of differences.--The OMB report shall 
        explain any differences between OMB and CBO estimates 
        of the amount of any net deficit change calculated 
        under subsection 902(b) of this title, any excess 
        deficit, any breach, and any required sequestration 
        percentage. The OMB report shall also explain 
        differences in the amount of sequestrable [FN1] 
        resources for any budget account to be reduced if such 
        difference is greater than $5,000,000.
          (6) Presidential order.--On the date specified in 
        subsection (a) of this section, if in its final 
        sequestration report OMB estimates that any 
        sequestration is required, the President shall issue an 
        order fully implementing without change all 
        sequestrations required by the OMB calculations set 
        forth in that report. This order shall be effective on 
        issuance.
  (h) Within-Session Sequestration Reports and Order.--If an 
appropriation for a fiscal year in progress is enacted (after 
Congress adjourns to end the session for that budget year and 
before July 1 of that fiscal year) that causes a breach, 10 
days later CBO shall issue a report containing the information 
required in paragraph (g)(2). Fifteen days after enactment, OMB 
shall issue a report containing the information required in 
paragraphs (g)(2) and (g)(4). On the same day as the OMB 
report, the President shall issue an order fully implementing 
without change all sequestrations required by the OMB 
calculations set forth in that report. This order shall be 
effective on issuance.
  (i) GAO Compliance Report.--On the date specified in 
subsection (a) of this section, the Comptroller General shall 
submit to the Congress and the President a report on--
          (1) the extent to which each order issued by the 
        President under this section complies with all of the 
        requirements contained in this part, either certifying 
        that the order fully and accurately complies with such 
        requirements or indicating the respects in which it 
        does not; and
          (2) the extent to which each report issued by OMB or 
        CBO under this section complies with all of the 
        requirements contained in this part, either certifying 
        that the report fully and accurately complies with such 
        requirements or indicating the respects in which it 
        does not.
  (j) Low-Growth Report.--At any time, CBO shall notify the 
Congress if--
          (1) during the period consisting of the quarter 
        during which such notification is given, the quarter 
        preceding such notification, and the 4 quarters 
        following such notification, CBO or OMB has determined 
        that real economic growth is projected or estimated to 
        be less than zero with respect to each of any 2 
        consecutive quarters within such period; or
          (2) the most recent of the Department of Commerce's 
        advance preliminary or final reports of actual real 
        economic growth indicate that the rate of real economic 
        growth for each of the most recently reported quarter 
        and the immediately preceding quarter is less than one 
        percent.
  (k) Economic and Technical Assumptions.--In all reports 
required by this section, OMB shall use the same economic and 
technical assumptions as used in the most recent budget 
submitted by the President under section 1105(a) of Title 31.

SEC. 905. EXEMPT PROGRAMS AND ACTIVITIES.

  (a) Social Security Benefits and Tier I Railroad Retirement 
Benefits.--Benefits payable under the old-age, survivors, and 
disability insurance program established under title II of the 
Social Security Act [42 U.S.C.A. Sec. 401 et seq.] and benefits 
payable under section 3(a), 3(f)(3), 4(a), or 4(f) of the 
Railroad Retirement Act of 1974 [45 U.S.C.A. Secs. 231b(a), 
231(f)(3), 231c(a), and 231c(f)] shall be exempt from reduction 
under any order issued under this subchapter.
  (b) Veterans Programs.--The following programs shall be 
exempt from reduction under any order issued under this 
subchapter:
          National Service Life Insurance Fund (36-8132-0-7-
        701);
          Service-Disabled Veterans Insurance Fund (36-4012-0-
        3-701);
          Veterans Special Life Insurance Fund (36-8455-0-8-
        701);
          Veterans Reopened Insurance Fund (36-4010-0-3-701);
          United States Government Life Insurance Fund (36-
        8150-0-7-701);
          Veterans Insurance and Indemnity (36-0120-0-1-701);
          Special Therapeutic and Rehabilitation Activities 
        Fund (36-4048-0-3-703);
          Veterans' Canteen Service Revolving Fund (36-4014-0-
        3-705);
          Benefits under chapter 21 of title 38, United States 
        Code, relating to specially adapted housing and 
        mortgage-protection life insurance for certain veterans 
        with service-connected disabilities (36-0137-0-1-702);
          Benefits under section 907 of title 38, United States 
        Code, relating to burial benefits for veterans who die 
        as a result of service-connected disability (36-0155-0-
        1-701);
          Benefits under chapter 39 of title 38, United States 
        Code, relating to automobiles and adaptive equipment 
        for certain disabled veterans and members of the Armed 
        Forces (36-0137-0-1-702);
          Veterans' compensation (36-0153-0-1-701); and
          Veterans' pensions (36-0154-0-1-701).
  (c) Net Interest.--No reduction of payments for net interest 
(all of major functional category 900) shall be made under any 
order issued under this subchapter.
  (d) Earned Income Tax Credit.--Payments to individuals made 
pursuant to section 32 of the Internal Revenue Code of 1954 [26 
U.S.C.A. Sec. 32] shall be exempt from reduction under any 
order issued under this subchapter.
  (e) Non-Defense Unobligated Balances.--Unobligated balances 
of budget authority carried over from prior fiscal years, 
except balances in the defense category, shall be exempt from 
reduction under any order issued under this part.
  (f) Certain Program Bases.--Outlays for programs specified in 
paragraph (1) of section 907 of this title shall be subject to 
reduction only in accordance with the procedures established in 
section 901(a)(3)(C) and 906(b) of this title.
  (g) Other Programs and Activities.--(1)(A) The following 
budget accounts and activities shall be exempt from reduction 
under any order issued under this subchapter:
          Activities resulting from private donations, 
        bequests, or voluntary contributions to the Government;
          Administration of Territories, Northern Mariana 
        Islands Covenant grants (14-0412-0-1-806);
          Thrift Savings Fund (26-8141-0-7-602);
          Alaska Power Administration, Operations and 
        maintenance (89-0304-0-1-271);
          Appropriations for the District of Columbia (to the 
        extent they are appropriations of locally raised 
        funds);
          Bonneville Power Administration fund and borrowing 
        authority established pursuant to section 13 of Public 
        Law 93-454 (1974), as amended (89-4045-0-3-271);
          Bureau of Indian Affairs, miscellaneous payments to 
        Indians (14-2303-0-1-452);
          Bureau of Indian Affairs miscellaneous trust funds, 
        tribal trust funds (14-9973-0-7-999);
          Claims, defense (97-0102-0-1-051);
          Claims, judgments, and relief acts (20-1895-0-1-806);
          Coinage profit fund (20-5811-0-2-803);
          Compensation of the President (11-0001-0-1-802);
          Customs Service, miscellaneous permanent 
        appropriations (20-9922-0-2-852);
          Comptroller of the Currency;
          Director of the Office of Thrift Supervision;
          Dual benefits payments account (60-0111-0-1-601);
          Eastern Indian land claims settlement fund (14-2202-
        0-1-806);
          Exchange stabilization fund (20-4444-0-3-155);
          Farm Credit System Financial Assistance Corporation, 
        interest payments (20-1850-0-1-351);
          Federal Deposit Insurance Corporation;
          Federal Deposit Insurance Corporation, Bank Insurance 
        Fund;
          Federal Deposit Insurance Corporation, FSLIC 
        Resolution Fund;
          Federal Deposit Insurance Corporation, Savings 
        Association Insurance Fund;
          Federal Housing Finance Board;
          Federal payment to the railroad retirement account 
        (60-0113-0-1-601);
          Foreign military sales trust fund (11-8242-0-7-155);
          Health professions graduate student loan insurance 
        fund (Health Education Assistance Loan Program) (75-
        4305-0-3-553);
          Higher education facilities loans and insurance (91-
        0240-0-1-502);
          Internal Revenue Collections for Puerto Rico (20-
        5737-0-2-852);
          Intragovernmental funds, including those from which 
        the outlays are derived primarily from resources paid 
        in from other government accounts, except to the extent 
        such funds are augmented by direct appropriations for 
        the fiscal year during which an order is in effect;
          Panama Canal Commission, operating expenses (95-5190-
        0-2-403), and Panama Canal Commission, capital outlay 
        (95-5190-0-2-403);
          Medical facilities guarantee and loan fund, Federal 
        interest subsidies for medical facilities (75-4430-0-3-
        551);
          National Credit Union Administration;
          National Credit Union Administration, central 
        liquidity facility;
          National Credit Union Administration, credit union 
        share insurance fund;
          Payment of Vietnam and USS Pueblo prisoner-of-war 
        claims (15-0104-0-1-153);
          Payment to civil service retirement and disability 
        fund (24-0200-0-1-805);
          Payment to Judiciary Trust Funds (10-0941-0-1-752);
          Payments to copyright owners (03-5175-0-2-376);
          Payments to health care trust funds (75-0580-0-1-
        572);
          Payments to military retirement fund (97-0040-0-1-
        054);
          Compact of Free Association, economic assistance 
        pursuant to Public Law 99-658 (14-0415-0-1-806);
          Payments to social security trust funds (75-0404-0-1-
        571);
          Payments to state and local government fiscal 
        assistance trust fund (20-2111-0-1-851);
          Payments to the foreign service retirement and 
        disability fund (11-1036-0-1-153 and 19-0540-0-1-153);
          Payments to trust funds from excise taxes or other 
        receipts properly creditable to such trust funds;
          Payments to the United States territories, fiscal 
        assistance (14-0418-0-1-852);
          Payments to widows and heirs of deceased Members of 
        Congress (00-0215-0-1-801);
          Postal service fund (18-4020-0-3-372);
          Resolution Funding Corporation;
          Resolution Trust Corporation;
          Salaries of Article III judges;
          Soldiers and Airmen's Home, payment of claims (84-
        8930-0-7-705);
          Southeastern Power Administration, Operations and 
        maintenance (89-0302-0-1-271);
          Southwestern Power Administration, Operations and 
        maintenance (89-0303-0-1-271);
          Tennessee Valley Authority fund, except non-power 
        programs and activities (64-4110-0-3-999);
          United States Enrichment Corporation;
          Washington Metropolitan Area Transit Authority, 
        interest payments (46-0300-0-1-401);
          Western Area Power Administration, Construction, 
        rehabilitation, operations, and maintenance (89-5068-0-
        2-271); and
          Western Area Power Administration, Colorado River 
        basins power marketing fund (89-4452-0-3-271).
  (B) The following budget accounts and activities shall be 
exempt from reduction under any order issued under this 
subchapter:
          Black lung benefits (20-8144-0-7-601);
          Central Intelligence Agency retirement and disability 
        system fund (56-3400-0-1-054);
          Civil service retirement and disability fund (24-
        8135-0-7-602);
          Comptrollers general retirement system (05-0107-0-1-
        801);
          Court of Federal Claims Judges' Retirement Fund (10-
        8124-0-7-602);
          Foreign service retirement and disability fund (19-
        8186-0-7-602);
          Judicial survivors' annuities fund (10-8110-0-7-602);
          Judicial Officers' Retirement Fund (10-8122-0-7-602);
          Longshoremen's and harborworkers' compensation 
        benefits (16-9971-0-7-601);
          Military retirement fund (97-8097-0-7-602);
          National Oceanic and Atmospheric Administration 
        retirement (13-1450-0-1-306);
          Pensions for former Presidents (47-0105-0-1-802);
          Railroad retirement tier II (60-8011-0-7-601);
          Railroad supplemental annuity pension fund (60-8012-
        0-7-602);
          Retired pay, Coast Guard (69-0241-0-1-403);
          Retirement pay and medical benefits for commissioned 
        officers, Public Health Service (75-0379-0-1-551);
          Special benefits, Federal Employees' Compensation Act 
        (16-1521-0-1-600);
          Special benefits for disabled coal miners (75-0409-0-
        1-601);
          Tax Court judges survivors annuity fund (23-8115-0-7-
        602).
  (2) Prior legal obligations of the Government in the 
following budget accounts and activities shall be exempt from 
any order issued under this subchapter:
          Agency for International Development, Housing, and 
        other credit guarantee programs (72-4340-0-3-151);
          Agricultural credit insurance fund (12-4140-0-3-351);
          Biomass energy development (20-0114-0-1-271);
          Check forgery insurance fund (20-4109-0-3-803);
          Community development grant loan guarantees (86-0162-
        0-1-451);
          Credit union share insurance fund (25-4468-0-3-371);
          Economic development revolving fund (13-4406-0-3-
        452);
          Employees life insurance fund (24-8424-0-8-602);
          Energy security reserve (Synthetic Fuels Corporation) 
        (20-0112-0-1-271);
          Export-Import Bank of the United States, Limitation 
        of program activity (83-4027-0-3-155);
          Federal Aviation Administration, Aviation insurance 
        revolving fund (69-4120-0-3-402);
          Federal Crop Insurance Corporation fund (12-4085-0-3-
        351);
          Federal Deposit Insurance Corporation (51-8419-0-8-
        371);
          Federal Emergency Management Agency, National flood 
        insurance fund (58-4236-0-3-453);
          Federal Emergency Management Agency, National 
        insurance development fund (58-4235-0-3-451);
          Federal Housing Administration fund (86-4070-0-3-
        371);
          Federal ship financing fund (69-4301-0-3-403);
          Federal ship financing fund, fishing vessels (13-
        4417-0-3-376);
          Geothermal resources development fund (89-0206-0-1-
        271);
          Government National Mortgage Association, Guarantees 
        of mortgage-backed securities (86-4238-0-3-371);
          Health education loans (75-4307-0-3-553);
          Homeowners assistance fund, Defense (97-4090-0-3-
        051);
          Indian loan guarantee and insurance fund (14-4410-0-
        3-452);
          International Trade Administration, Operations and 
        administration (13-1250-0-1-376);
          Low-rent public housing, Loans and other expenses 
        (86-4098-0-3-604);
          Maritime Administration, War-risk insurance revolving 
        fund (69-4302-0-3-403);
          Overseas Private Investment Corporation (71-4030-0-3-
        151);
          Pension Benefit Guaranty Corporation fund (16-4204-0-
        3-601);
          Rail service assistance (69-0122-0-1-401);
          Railroad rehabilitation and improvement financing 
        fund (69-4411-0-3-401);
          Rural development insurance fund (12-4155-0-3-452);
          Rural electric and telephone revolving fund (12-4230-
        8-3-271);
          Rural housing insurance fund (12-4141-0-3-371);
          Small Business Administration, Business loan and 
        investment fund (73-4154-0-3-376);
          Small Business Administration, Lease guarantees 
        revolving fund (73-4157-0-3-376);
          Small Business Administration, Pollution control 
        equipment contract guarantee revolving fund (73-4147-0-
        3-376);
          Small Business Administration, Surety bond guarantees 
        revolving fund (73-4156-0-3-376);
          Department of Veterans Affairs, Loan guaranty 
        revolving fund (36-4025-0-3-704); and
          Department of Veterans Affairs, Servicemen's group 
        life insurance fund (36-4009-0-3-701).
  (h) Low-Income Programs.--The following programs shall be 
exempt from reduction under any order issued under this 
subchapter:
          Aid to families with dependent children (75-0412-0-1-
        609);
          Child nutrition (12-3539-0-1-605);
          Commodity supplemental food program (12-3512-0-1-
        605);
          Food stamp programs (12-3505-0-1-605 and 12-3550-0-1-
        605);
          Grants to States for Medicaid (75-0512-0-1-551);
          Supplemental Security Income Program (75-0406-0-1-
        609); and
          Women, infants, and children program (12-3510-0-1-
        605).
  (i) Optional Exemption of Military Personnel.--
          (1) The President may, with respect to any military 
        personnel account, exempt that account from 
        sequestration or provide for a lower uniform percentage 
        reduction than would otherwise apply.
          (2) The President may not use the authority provided 
        by paragraph (1) unless he notifies the Congress of the 
        manner in which such authority will be exercised on or 
        before the initial snapshot date for the budget year.
  (j) Identification of Programs.--For purposes of subsections 
(g) and (h) of this section, programs are identified by the 
designated budget account identification code numbers set forth 
in the Budget of the United States Government, 1986--Appendix.

SEC. 906. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.

  (a) Automatic Spending Increases.--Automatic spending 
increases are increases in outlays due to changes in indexes in 
the following programs:
          (1) National Wool Act [7 U.S.C.A. Sec. 1781 et seq.];
          (2) Special milk program; and
          (3) Vocational rehabilitation basic State grants.
In those programs all amounts other than the automatic spending 
increases shall be exempt from reduction under any order issued 
under this subchapter.
  (b) Effect of Orders on the Guaranteed Student Loan 
Program.--
          (1) Any reductions which are required to be achieved 
        from the student loan programs operated pursuant to 
        part B of title IV of the Higher Education Act of 1965 
        [20 U.S.C.A. Sec. 1071 et seq.], as a consequence of an 
        order issued pursuant to section 904 of this title, 
        shall be achieved only from loans described in 
        paragraphs (2) and (3) by the application of the 
        measures described in such paragraphs.
          (2) For any loan made during the period beginning on 
        the date that an order issued under section 904 of this 
        title takes effect with respect to a fiscal year and 
        ending at the close of such fiscal year, the rate used 
        in computing the special allowance payment pursuant to 
        section 438(b)(2)(A)(iii) of such Act [20 U.S.C.A. Sec. 
        1087-1(b)(2)(A)(iii)] for each of the first four 
        special allowance payments for such loan shall be 
        adjusted by reducing such rate by the lesser of--
                  (A) 0.40 percent, or
                  (B) the percentage by which the rate 
                specified in such section exceeds 3 percent.
          (3) For any loan made during the period beginning on 
        the date that an order issued under section 904 of this 
        title takes effect with respect to a fiscal year and 
        ending at the close of such fiscal year, the 
        origination fee which is authorized to be collected 
        pursuant to section 438(c)(2) of such Act [20 U.S.C.A. 
        Sec. 1087-1(c)(2)] shall be increased by 0.50 percent.
  (c) Treatment of Foster Care and Adoption Assistance 
Programs.--Any order issued by the President under section 904 
of this title shall make the reduction which is otherwise 
required under the foster care and adoption assistance programs 
(established by part E of title IV of the Social Security Act 
[42 U.S.C.A. Sec. 670 et seq.]) only with respect to payments 
and expenditures made by States in which increases in foster 
care maintenance payment rates or adoption assistance payment 
rates (or both) are to take effect during the fiscal year 
involved, and only to the extent that the required reduction 
can be accomplished by applying a uniform percentage reduction 
to the Federal matching payments that each such State would 
otherwise receive under section 474 of that Act [42 U.S.C.A. 
Sec. 674] (for such fiscal year) for that portion of the 
State's payments which is attributable to the increases taking 
effect during that year. No State's matching payments from the 
Federal Government for foster care maintenance payments or for 
adoption assistance maintenance payments may be reduced by a 
percentage exceeding the applicable domestic sequestration 
percentage. No State may, after December 12, 1985, make any 
change in the timetable for making payments under a State plan 
approved under part E of title IV of the Social Security Act 
[42 U.S.C.A. Sec. 670 et seq.] which has the effect of changing 
the fiscal year in which expenditures under such part are made.
  (d) Special Rules for Medicare Program.--
          (1) Calculation of reduction in individual payment 
        amounts.--To achieve the total percentage reduction in 
        those programs required by sections 902 of this title 
        and 903 of this title, and notwithstanding section 710 
        of the Social Security Act [42 U.S.C.A. Sec. 911], OMB 
        shall determine, and the applicable Presidential order 
        under section 904 of this title shall implement, the 
        percentage reduction that shall apply to payments under 
        the health insurance programs under title XVIII of the 
        Social Security Act [42 U.S.C.A. Sec. 1395 et seq.] for 
        services furnished after the order is issued, such that 
        the reduction made in payments under that order shall 
        achieve the required total percentage reduction in 
        those payments for that fiscal year as determined on a 
        12-month basis.
          (2) Timing of application of reductions.--
                  (A) In general.--Except as provided in 
                subparagraph (B), if a reduction is made under 
                paragraph (1) in payment amounts pursuant to a 
                sequestration order, the reduction shall be 
                applied to payment for services furnished 
                during the effective period of the order. For 
                purposes of the previous sentence, in the case 
                of inpatient services furnished for an 
                individual, the services shall be considered to 
                be furnished on the date of the individual's 
                discharge from the inpatient facility.
                  (B) Payment on basis of cost reporting 
                periods.--In the case in which payment for 
                services of a provider of services is made 
                under title XVIII of the Social Security Act 
                [42 U.S.C.A. Sec. 1395 et seq.] on a basis 
                relating to the reasonable cost incurred for 
                the services during a cost reporting period of 
                the provider, if a reduction is made under 
                paragraph (1), in payment amounts pursuant to a 
                sequestration order, the reduction shall be 
                applied to payment for costs for such services 
                incurred at any time during each cost reporting 
                period of the provider any part of which occurs 
                during the effective period of the order, but 
                only (for each such cost reporting period) in 
                the same proportion as the fraction of the cost 
                reporting period that occurs during the 
                effective period of the order.
          (3) No increase in beneficiary charges in assignment-
        related cases.--If a reduction in payment amounts is 
        made under paragraph (1) for services for which payment 
        under part B of title XVIII of the Social Security Act 
        [42 U.S.C.A. Sec. 1395j et seq.] is made on the basis 
        of an assignment described in section 1842(b)(3)(B)(ii) 
        [42 U.S.C.A. Sec. 1395u(b)(3)(B)(ii)], in accordance 
        with section 1842(b)(6)(B) [42 U.S.C.A. Sec. 
        1395u(b)(6)(B)], or under the procedure described in 
        section 1870(f)(1) [42 U.S.C.A Sec. 1395gg(f)(1)], of 
        such Act, the person furnishing the services shall be 
        considered to have accepted payment of the reasonable 
        charge for the services, less any reduction in payment 
        amount made pursuant to a sequestration order, as 
        payment in full.
          (4) No effect on computation of adjusted average per 
        capita cost.--In computing the adjusted average per 
        capita cost for purposes of section 1876(a)(4) of the 
        Social Security Act [42 U.S.C.A. Sec. 1395mm(a)(4)], 
        the Secretary of Health and Human Services shall not 
        take into account any reductions in payment amounts 
        which have been or may be effected under this 
        subchapter.
  (e) Community and Migrant Health Centers, Indian Health 
Services and Facilities, and Veteran's Medical Care.--
          (1) The maximum permissible reduction in budget 
        authority for any account listed in paragraph (2) for 
        any fiscal year, pursuant to an order issued under 
        section 902 of this title, shall be--
                  (A) 1 percent in the case of the fiscal year 
                1986, and
                  (B) 2 percent in the case of any subsequent 
                fiscal year.
          (2) The accounts referred to in paragraph (1) are as 
        follows:
                  (A) Community health centers (75-0350-0-1-
                550).
                  (B) Migrant health centers (75-0350-0-1-550).
                  (C) Indian health facilities (75-0391-0-1-
                551).
                  (D) Indian health services (75-0390-0-1-551).
                  (E) Veterans' medical care (36-0160-0-1-703).
        For purposes of the preceding provisions of this 
        paragraph, programs are identified by the designated 
        budget account identification code numbers set forth in 
        the Budget of the United States Government--Appendix.
  (f) Treatment of Child Support Enforcement Program.--
Notwithstanding any change in the display of budget accounts, 
any order issued by the President under section 904 of this 
title shall accomplish the full amount of any required 
reduction in expenditures under sections 455 and 458 of the 
Social Security Act [42 U.S.C.A. Secs. 655 and 658] by reducing 
the Federal matching rate for State administrative costs under 
such program, as specified (for the fiscal year involved) in 
section 455(a) of such Act [42 U.S.C.A. Sec. 655(a)], to the 
extent necessary to reduce such expenditures by that amount.
  (g) Federal Pay.--
          (1) In general.--For purposes of any order issued 
        under section 904 of this title--
                  (A) Federal pay under a statutory pay system, 
                and
                  (B) elements of military pay,
        shall be subject to reduction under an order in the 
        same manner as other administrative expense components 
        of the Federal budget; except that no such order may 
        reduce or have the effect of reducing the rate of pay 
        to which any individual is entitled under any such 
        statutory pay system (as increased by any amount 
        payable under section 5304 of Title 5, or section 302 
        of the Federal Employees Pay Comparability Act of 1990) 
        or the rate of any element of military pay to which any 
        individual is entitled under Title 37, or any increase 
        in rates of pay which is scheduled to take effect under 
        section 5303 of Title 5, section 1009 of Title 37, or 
        any other provision of law.
          (2) Definitions.--For purposes of this subsection:
                  (A) The term ``statutory pay system'' shall 
                have the meaning given that term in section 
                5302(1) of Title 5.
                  (B) The term ``elements of military pay'' 
                means--
                          (i) the elements of compensation of 
                        members of the uniformed services 
                        specified in section 1009 of Title 37,
                          (ii) allowances provided members of 
                        the uniformed services under sections 
                        403a and 405 of such title, and
                          (iii) cadet pay and midshipman pay 
                        under section 203(c) of such title.
                  (C) The term ``uniformed services'' shall 
                have the meaning given that term in section 
                101(3) of Title 37.
  (h) Treatment of Federal Administrative Expenses.--
          (1) Notwithstanding any other provision of this 
        title, administrative expenses incurred by the 
        departments and agencies, including independent 
        agencies, of the Federal Government in connection with 
        any program, project, activity, or account shall be 
        subject to reduction pursuant to an order issued under 
        section 904 of this title, without regard to any 
        exemption, exception, limitation, or special rule which 
        is otherwise applicable with respect to such program, 
        project, activity, or account under this subchapter.
          (2) Notwithstanding any other provision of law, 
        administrative expenses of any program, project, 
        activity, or account which is self-supporting and does 
        not receive appropriations shall be subject to 
        reduction under a sequester order, unless specifically 
        exempted in this joint resolution.
          (3) Payments made by the Federal Government to 
        reimburse or match administrative costs incurred by a 
        State or political subdivision under or in connection 
        with any program, project, activity, or account shall 
        not be considered administrative expenses of the 
        Federal Government for purposes of this section, and 
        shall be subject to reduction or sequestration under 
        this subchapter to the extent (and only to the extent) 
        that other payments made by the Federal Government 
        under or in connection with that program, project, 
        activity, or account are subject to such reduction or 
        sequestration; except that Federal payments made to a 
        State as reimbursement of administrative costs incurred 
        by such State under or in connection with the 
        unemployment compensation programs specified in 
        subsection (h)(1) of this section shall be subject to 
        reduction or sequestration under this subchapter 
        notwithstanding the exemption otherwise granted to such 
        programs under that subsection.
          (4) Notwithstanding any other provision of law, this 
        subsection shall not apply with respect to the 
        following:
                  (A) Comptroller of the Currency.
                  (B) Federal Deposit Insurance Corporation.
                  (C) Office of Thrift Supervision.
                  (D) Office of Thrift Supervision.
                  (E) National Credit Union Administration.
                  (F) National Credit Union Administration, 
                central liquidity facility.
                  (G) Federal Retirement Thrift Investment 
                Board.
                  (H) Resolution Funding Corporation.
                  (I) Resolution Trust Corporation.
  (i) Treatment of Payments and Advances Made With Respect to 
Unemployment Compensation Programs.--
          (1) For purposes of section 904 of this title--
                  (A) any amount paid as regular unemployment 
                compensation by a State from its account in the 
                Unemployment Trust Fund (established by section 
                904(a) of the Social Security Act [42 U.S.C.A. 
                Sec. 1104(a)]),
                  (B) any advance made to a State from the 
                Federal unemployment account (established by 
                section 904(g) of such Act [42 U.S.C.A. Sec. 
                1104(g)]) under title XII of such Act [42 
                U.S.C.A. Sec. 1321 et seq.] and any advance 
                appropriated to the Federal unemployment 
                account pursuant to section 1203 of such Act 
                [42 U.S.C.A. Sec. 1323], and
                  (C) any payment made from the Federal 
                Employees Compensation Account (as established 
                under section 909 of such Act [42 U.S.C.A. Sec. 
                1109]) for the purpose of carrying out chapter 
                85 of Title 5 [5 U.S.C.A. Sec. 8501 et seq.] 
                and funds appropriated or transferred to or 
                otherwise deposited in such Account, shall not 
                be subject to reduction.
          (2)(A) A State may reduce each weekly benefit payment 
        made under the Federal-State Extended Unemployment 
        Compensation Act of 1970 [26 U.S.C.A. Sec. 3304 note] 
        for any week of unemployment occurring during any 
        period with respect to which payments are reduced under 
        an order issued under section 904 of this title by a 
        percentage not to exceed the percentage by which the 
        Federal payment to the State under section 204 of such 
        Act is to be reduced for such week as a result of such 
        order.
          (B) A reduction by a State in accordance with 
        subparagraph (A) shall be not be considered as a 
        failure to fulfill the requirements of section 
        3304(a)(11) of the Internal Revenue Code of 1954 [26 
        U.S.C.A. Sec. 3304(A)(11)].
  (j) Commodity Credit Corporation.--
          (1) Powers and authorities of commodity credit 
        corporation.--This title shall not restrict the 
        Commodity Credit Corporation in the discharge of its 
        authority and responsibility as a corporation to buy 
        and sell commodities in world trade, to use the 
        proceeds as a revolving fund to meet other obligations 
        and otherwise operate as a corporation, the purpose for 
        which it was created.
          (2) Reduction in payments made under contracts.--
                  (A) Payments and loan eligibility under any 
                contract entered into with a person by the 
                Commodity Credit Corporation prior to the time 
                an order has been issued under section 904 of 
                this title shall not be reduced by an order 
                subsequently issued. Subject to subparagraph 
                (B), after an order is issued under such 
                section for a fiscal year, any cash payments 
                made by the Commodity Credit Corporation--
                          (i) under the terms of any one-year 
                        contract entered into in such fiscal 
                        year and after the issuance of the 
                        order; and
                          (ii) out of an entitlement account,
                to any person (including any producer, lender, 
                or guarantee entity) shall be subject to 
                reduction under the order.
                  (B) Each contract entered into with producers 
                or producer cooperatives with respect to a 
                particular crop of a commodity and subject to 
                reduction under subparagraph (A) shall be 
                reduced in accordance with the same terms and 
                conditions. If some, but not all, contracts 
                applicable to a crop of a commodity have been 
                entered into prior to the issuance of an order 
                under section 904 of this title, the order 
                shall provide that the necessary reduction in 
                payments under contracts applicable to the 
                commodity be uniformly applied to all contracts 
                for the next succeeding crop of the commodity, 
                under the authority provided in paragraph (3).
          (3) Delayed reduction in outlays permissible.--
        Notwithstanding any other provision of this joint 
        resolution, if an order under section 904 of this title 
        is issued with respect to a fiscal year, any reduction 
        under the order applicable to contracts described in 
        paragraph (1) may provide for reductions in outlays for 
        the account involved to occur in the fiscal year 
        following the fiscal year to which the order applies. 
        No other account, or other program, project, or 
        activity, shall bear an increased reduction for the 
        fiscal year to which the order applies as a result of 
        the operation of the preceding sentence.
          (4) Uniform percentage rate of reduction and other 
        limitations.--All reductions described in paragraph (2) 
        which are required to be made in connection with an 
        order issued under section 904 of this title with 
        respect to a fiscal year--
                  (A) shall be made so as to ensure that 
                outlays for each program, project, activity, or 
                account involved are reduced by a percentage 
                rate that is uniform for all such programs, 
                projects, activities, and accounts, and may not 
                be made so as to achieve a percentage rate of 
                reduction in any such item exceeding the rate 
                specified in the order; and
                  (B) with respect to commodity price support 
                and income protection programs, shall be made 
                in such manner and under such procedures as 
                will attempt to ensure that--
                          (i) uncertainty as to the scope of 
                        benefits under any such program is 
                        minimized;
                          (ii) any instability in market prices 
                        for agricultural commodities resulting 
                        from the reduction is minimized; and
                          (iii) normal production and marketing 
                        relationships among agricultural 
                        commodities (including both contract 
                        and non-contract commodities) are not 
                        distorted.
                In meeting the criterion set out in clause 
                (iii) of subparagraph (B) of the preceding 
                sentence, the President shall take into 
                consideration that reductions under an order 
                may apply to programs for two or more 
                agricultural commodities that use the same type 
                of production or marketing resources or that 
                are alternative commodities among which a 
                producer could choose in making annual 
                production decisions.
          (5) No double reduction.--No agricultural price 
        support or income protection program that is subject to 
        reduction under an order issued under section 904 of 
        this title for a fiscal year may be subject, as well, 
        to modification or suspension under such order as an 
        automatic spending increase.
          (6) Certain authority not to be limited.--Nothing in 
        this joint resolution shall limit or reduce, in any 
        way, any appropriation that provides the Commodity 
        Credit Corporation with budget authority to cover the 
        Corporation's net realized losses.
  (k) Special Rules for the JOBS portion of AFDC.--
          (1) Full amount of sequestration required.--Any order 
        issued by the President under section 904 of this title 
        shall accomplish the full amount of any required 
        sequestration of the job opportunities and basic skills 
        training program under section 402(a)(19) [42 U.S.C.A. 
        Sec. 602(a)(19)], and part F of title VI, of the Social 
        Security Act, in the manner specified in this 
        subsection. Such an order may not reduce any Federal 
        matching rate pursuant to section 403(l) of the Social 
        Security Act [42 U.S.C.A. Sec. 603(l)].
          (2) New allotment formula.--
                  (A) General rule.--Notwithstanding section 
                403(k) of the Social Security Act [42 U.S.C.A. 
                Sec. 603(k)], each State's percentage share of 
                the amount available after sequestration for 
                direct spending pursuant to section 403(l) of 
                such Act [42 U.S.C.A. Sec. 603(l)] for the 
                fiscal year to which the sequestration applies 
                shall be equal to--
                          (I) that percentage of the total 
                        amount paid to the States pursuant to 
                        such section 403(l) for the prior 
                        fiscal year that is represented by the 
                        amount paid to such State pursuant to 
                        such section 403(l) [42 U.S.C.A. Sec. 
                        603(l)] for the prior fiscal year; or
                          (II) the amount that would have been 
                        allotted to such State pursuant to such 
                        section 403(k) [42 U.S.C.A. Sec. 
                        603(k)] had the sequestration not been 
                        in effect.
                  (B) Reallotment of amounts remaining 
                unallotted after application of general rule.--
                Any amount made available after sequestration 
                for direct spending pursuant to section 403(l) 
                of the Social Security Act [42 U.S.C.A. Sec. 
                603(l)] for the fiscal year to which the 
                sequestration applies that remains unallotted 
                as a result of subparagraph (A) of this 
                paragraph shall be allotted among the States in 
                proportion to the absolute difference between 
                the amount allotted, respectively, to each 
                State as a result of such subparagraph and the 
                amount that would have been allotted to such 
                State pursuant to section 403(k) [42 U.S.C.A. 
                Sec. 603(k)] of such Act had the sequestration 
                not been in effect, except that a State may not 
                be allotted an amount under this subparagraph 
                that results in a total allotment to the State 
                under this paragraph of more than the amount 
                that would have been allotted to such State 
                pursuant to such section 403(k) [42 U.S.C.A. 
                Sec. 603(k)] had the sequestration not been in 
                effect.
  (l) Effects of Sequestration.--The effects of sequestration 
shall be as follows:
          (1) Budgetary resources sequestered from any account 
        other than a trust or special fund account shall be 
        permanently cancelled.
          (2) Except as otherwise provided, the same percentage 
        sequestration shall apply to all programs, projects, 
        and activities within a budget account (with programs, 
        projects, and activities as delineated in the 
        appropriation Act or accompanying report for the 
        relevant fiscal year covering that account, or for 
        accounts not included in appropriation Acts, as 
        delineated in the most recently submitted President's 
        budget).
          (3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 
        days of the sequestration order. To the extent that 
        formula allocations differ at different levels of 
        budgetary resources within an account, program, 
        project, or activity, the sequestration shall be 
        interpreted as producing a lower total appropriation, 
        with the remaining amount of the appropriation being 
        obligated in a manner consistent with program 
        allocation formulas in substantive law.
          (4) Except as otherwise provided, obligations in 
        sequestered accounts shall be reduced only in the 
        fiscal year in which a sequester occurs.
          (5) If an automatic spending increase is sequestered, 
        the increase (in the applicable index) that was 
        disregarded as a result of that sequestration shall not 
        be taken into account in any subsequent fiscal year.
          (6) Except as otherwise provided, sequestration in 
        trust and special fund accounts for which obligations 
        are indefinite shall be taken in a manner to ensure 
        that obligations in the fiscal year of a sequestration 
        are reduced, from the level that would actually have 
        occurred, by the applicable sequestration percentage.

SEC. 907. THE BASELINE.

  (a) In General.--For any budget year, the baseline refers to 
a projection of current-year levels of new budget authority, 
outlays, revenues, and the surplus or deficit into the budget 
year and the outyears based on laws enacted through the 
applicable date.
  (b) Direct Spending and Receipts.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions:
          (1) In general.--Laws providing or creating direct 
        spending and receipts are assumed to operate in the 
        manner specified in those laws for each such year and 
        funding for entitlement authority is assumed to be 
        adequate to make all payments required by those laws.
          (2) Exceptions.--
                  (A) No program with estimated current-year 
                outlays greater than $50 million shall be 
                assumed to expire in the budget year or 
                outyears.
                  (B) The increase for veterans' compensation 
                for a fiscal year is assumed to be the same as 
                that required by law for veterans' pensions 
                unless otherwise provided by law enacted in 
                that session.
                  (C) Excise taxes dedicated to a trust fund, 
                if expiring, are assumed to be extended at 
                current rates.
          (3) Hospital insurance trust fund.--Notwithstanding 
        any other provision of law, the receipts and 
        disbursements of the Hospital Insurance Trust Fund 
        shall be included in all calculations required by this 
        Act.
  (c) Discretionary Appropriations.--For the budget year and 
each outyear, the baseline shall be calculated using the 
following assumptions regarding all amounts other than those 
covered by subsection (b) of this section:
          (1) Inflation of current-year appropriations.--
        Budgetary resources other than unobligated balances 
        shall be at the level provided for the budget year in 
        full-year appropriation Acts. If for any account a 
        full-year appropriation has not yet been enacted, 
        budgetary resources other than unobligated balances 
        shall be at the level available in the current year, 
        adjusted sequentially and cumulatively for expiring 
        housing contracts as specified in paragraph (2), for 
        social insurance administrative expenses as specified 
        in paragraph (3), to offset pay absorption and for pay 
        annualization as specified in paragraph (4), for 
        inflation as specified in paragraph (5), and to account 
        for changes required by law in the level of agency 
        payments for personnel benefits other than pay.
          (2) Expiring housing contracts.--New budget authority 
        to renew expiring multiyear subsidized housing 
        contracts shall be adjusted to reflect the difference 
        in the number of such contracts that are scheduled to 
        expire in that fiscal year and the number expiring in 
        the current year, with the per-contract renewal cost 
        equal to the average current-year cost of renewal 
        contracts.
          (3) Social insurance administrative expenses.--
        Budgetary resources for the administrative expenses of 
        the following trust funds shall be adjusted by the 
        percentage change in the beneficiary population from 
        the current year to that fiscal year: the Federal 
        Hospital Insurance Trust Fund, the Supplementary 
        Medical Insurance Trust Fund, the Unemployment Trust 
        Fund, and the railroad retirement account.
          (4) Pay annualization; offset to pay absorption.--
        Current-year new budget authority for Federal employees 
        shall be adjusted to reflect the full 12-month costs 
        (without absorption) of any pay adjustment that 
        occurred in that fiscal year.
          (5) Inflators.--The inflator used in paragraph (1) to 
        adjust budgetary resources relating to personnel shall 
        be the percent by which the average of the Bureau of 
        Labor Statistics Employment Cost Index (wages and 
        salaries, private industry workers) for that fiscal 
        year differs from such index for the current year. The 
        inflator used in paragraph (1) to adjust all other 
        budgetary resources shall be the percent by which the 
        average of the estimated gross national product fixed-
        weight price index for that fiscal year differs from 
        the average of such estimated index for the current 
        year.
          (6) Current-year appropriations.--If, for any 
        account, a continuing appropriation is in effect for 
        less than the entire current year, then the current-
        year amount shall be assumed to equal the amount that 
        would be available if that continuing appropriation 
        covered the entire fiscal year. If law permits the 
        transfer of budget authority among budget accounts in 
        the current year, the current-year level for an account 
        shall reflect transfers accomplished by the submission 
        of, or assumed for the current year in, the President's 
        original budget for the budget year.
  (d) Up-to-Date Concepts.--In deriving the baseline for any 
budget year or outyear, current-year amounts shall be 
calculated using the concepts and definitions that are required 
for that budget year.
  (e) Sale of Assets or Prepayment of Loans.--The sale of an 
asset or prepayment of a loan shall not alter the deficit or 
produce any net deficit reduction in the budget baseline, 
except that the budget baseline estimate shall include asset 
sales mandated by law before September 18, 1987, and routine, 
ongoing asset sales and loan prepayments at levels consistent 
with agency operations in fiscal year 1986.

SEC. 907A. SUSPENSION IN THE EVENT OF WAR OR LOW GROWTH.

  (a) Procedures in the Event of a Low Growth Report.--
          (1) Trigger.--Whenever CBO issues a low-growth report 
        under section 254(j), the Majority Leader of the House 
        of Representatives may, and the Majority Leader of the 
        Senate shall, introduce a joint resolution (in the form 
        set forth in paragraph (2)) declaring that the 
        conditions specified in section 254(j) are met and 
        suspending the relevant provisions of this title, 
        titles III and VI of the Congressional Budget Act of 
        1974, and section 1103 of title 31, United States Code.
          (2) Form of joint resolution.--
                  (A) The matter after the resolving clause in 
                any joint resolution introduced pursuant to 
                paragraph (1) shall be as follows: That the 
                Congress declares that the conditions specified 
                in section 254(j) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 are met, 
                and the implementation of the Congressional 
                Budget and Impoundment Control Act of 1974, 
                chapter 11 of title 31, United States Code, and 
                part C of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 are modified as 
                described in section 258(b) of the Balanced 
                Budget and Emergency Deficit Control Act of 
                1985.
                  (B) The title of the joint resolution shall 
                be ``Joint resolution suspending certain 
                provisions of law pursuant to section 258(a)(2) 
                of the Balanced Budget and Emergency Deficit 
                Control Act of 1985.''; and the joint 
                resolution shall not contain any preamble.
          (3) Committee action.--Each joint resolution 
        introduced pursuant to paragraph (1) shall be referred 
        to the appropriate committees of the House of 
        Representatives or the Committee on the Budget of the 
        Senate, as the case may be; and such Committee shall 
        report the joint resolution to its House without 
        amendment on or before the fifth day on which such 
        House is in session after the date on which the joint 
        resolution is introduced. If the Committee fails to 
        report the joint resolution within the five-day period 
        referred to in the preceding sentence, it shall be 
        automatically discharged from further consideration of 
        the joint resolution, and the joint resolution shall be 
        placed on the appropriate calendar.
          (4) Consideration of joint resolution.--
                  (A) A vote on final passage of a joint 
                resolution reported to the Senate or discharged 
                pursuant to paragraph (3) shall be taken on or 
                before the close of the fifth calendar day of 
                session after the date on which the joint 
                resolution is reported or after the Committee 
                has been discharged from further consideration 
                of the joint resolution. If prior to the 
                passage by one House of a joint resolution of 
                that House, that House receives the same joint 
                resolution from the other House, then--
                          (i) the procedure in that House shall 
                        be the same as if no such joint 
                        resolution had been received from the 
                        other House, but
                          (ii) the vote on final passage shall 
                        be on the joint resolution of the other 
                        House.
                When the joint resolution is agreed to, the 
                Clerk of the House of Representatives (in the 
                case of a House joint resolution agreed to in 
                the House of Representatives) or the Secretary 
                of the Senate (in the case of a Senate joint 
                resolution agreed to in the Senate) shall cause 
                the joint resolution to be engrossed, 
                certified, and transmitted to the other House 
                of the Congress as soon as practicable.
                  (B) (i) In the Senate, a joint resolution 
                under this paragraph shall be privileged. It 
                shall not be in order to move to reconsider the 
                vote by which the motion is agreed to or 
                disagreed to.
                  (ii) Debate in the Senate on a joint 
                resolution under this paragraph, and all 
                debatable motions and appeals in connection 
                therewith, shall be limited to not more than 
                five hours. The time shall be equally divided 
                between, and controlled by, the majority leader 
                and the minority leader or their designees.
                  (iii) Debate in the Senate on any debatable 
                motion or appeal in connection with a joint 
                resolution under this paragraph shall be 
                limited to not more than one hour, to be 
                equally divided between, and controlled by, the 
                mover and the manager of the joint resolution, 
                except that in the event the manager of the 
                joint resolution is in favor of any such motion 
                or appeal, the time in opposition thereto shall 
                be controlled by the minority leader or his 
                designee.
                  (iv) A motion in the Senate to further limit 
                debate on a joint resolution under this 
                paragraph is not debatable. A motion to table 
                or to recommit a joint resolution under this 
                paragraph is not in order.
                  (C) No amendment to a joint resolution 
                considered under this paragraph shall be in 
                order in the Senate.
  (b) Suspension of Sequestration Procedures.--Upon the 
enactment of a declaration of war or a joint resolution 
described in subsection (a)--
          (1) the subsequent issuance of any sequestration 
        report or any sequestration order is precluded;
          (2) sections 302(f), 310(d), 311(a), and title VI of 
        the Congressional Budget Act of 1974 are suspended; and
          (3) section 1103 of title 31, United States Code, is 
        suspended.
  (c) Restoration of Sequestration Procedures.--
          (1) In the event of a suspension of sequestration 
        procedures due to a declaration of war, then, effective 
        with the first fiscal year that begins in the session 
        after the state of war is concluded by Senate 
        ratification of the necessary treaties, the provisions 
        of subsection (b) triggered by that declaration of war 
        are no longer effective.
          (2) In the event of a suspension of sequestration 
        procedures due to the enactment of a joint resolution 
        described in subsection (a), then, effective with 
        regard to the first fiscal year beginning at least 12 
        months after the enactment of that resolution, the 
        provisions of subsection (b) triggered by that 
        resolution are no longer effective.

SEC. 907B. MODIFICATION OF PRESIDENTIAL ORDER.

  (a) Introduction of Joint Resolution.--At any time after the 
Director of OMB issues a final sequestration report under 
section 904 of this title for a fiscal year, but before the 
close of the twentieth calendar day of the session of Congress 
beginning after the date of issuance of such report, the 
majority leader of either House of Congress may introduce a 
joint resolution which contains provisions directing the 
President to modify the most recent order issued under section 
904 of this title or provide an alternative to reduce the 
deficit for such fiscal year. After the introduction of the 
first such joint resolution in either House of Congress in any 
calendar year, then no other joint resolution introduced in 
such House in such calendar year shall be subject to the 
procedures set forth in this section.
  (b) Procedures for Consideration of Joint Resolutions.--
          (1) Referral to committee.--A joint resolution 
        introduced in the Senate under subsection (a) of this 
        section shall not be referred to a committee of the 
        Senate and shall be placed on the calendar pending 
        disposition of such joint resolution in accordance with 
        this subsection.
          (2) Consideration in the senate.--On or after the 
        third calendar day (excluding Saturdays, Sundays, and 
        legal holidays) beginning after a joint resolution is 
        introduced under subsection (a) of this section, 
        notwithstanding any rule or precedent of the Senate, 
        including Rule XXII of the Standing Rules of the 
        Senate, it is in order (even though a previous motion 
        to the same effect has been disagreed to) for any 
        Member of the Senate to move to proceed to the 
        consideration of the joint resolution. The motion is 
        not in order after the eighth calendar day (excluding 
        Saturdays, Sundays, and legal holidays) beginning after 
        a joint resolution (to which the motion applies) is 
        introduced. The joint resolution is privileged in the 
        Senate. A motion to reconsider the vote by which the 
        motion is agreed to or disagreed to shall not be in 
        order. If a motion to proceed to the consideration of 
        the joint resolution is agreed to, the Senate shall 
        immediately proceed to consideration of the joint 
        resolution without intervening motion, order, or other 
        business, and the joint resolution shall remain the 
        unfinished business of the Senate until disposed of.
          (3) Debate in the senate.--
                  (A) In the Senate, debate on a joint 
                resolution introduced under subsection (a) of 
                this section, amendments thereto, and all 
                debatable motions and appeals in connection 
                therewith shall be limited to not more than 10 
                hours, which shall be divided equally between 
                the majority leader and the minority leader (or 
                their designees).
                  (B) A motion to postpone, or a motion to 
                proceed to the consideration of other business 
                is not in order. A motion to reconsider the 
                vote by which the joint resolution is agreed to 
                or disagreed to is not in order, and a motion 
                to recommit the joint resolution is not in 
                order.
                  (C) (i) No amendment that is not germane to 
                the provisions of the joint resolution or to 
                the order issued under section 904 of this 
                title shall be in order in the Senate. In the 
                Senate, an amendment, any amendment to an 
                amendment, or any debatable motion or appeal is 
                debatable for not to exceed 30 minutes to be 
                equally divided between, and controlled by, the 
                mover and the majority leader (or their 
                designees), except that in the event that the 
                majority leader favors the amendment, motion, 
                or appeal, the minority leader (or the minority 
                leader's designee) shall control the time in 
                opposition to the amendment, motion, or appeal.
                  (ii) In the Senate, an amendment that is 
                otherwise in order shall be in order 
                notwithstanding the fact that it amends the 
                joint resolution in more than one place or 
                amends language previously amended. It shall 
                not be in order in the Senate to vote on the 
                question of agreeing to such a joint resolution 
                or any amendment thereto unless the figures 
                then contained in such joint resolution or 
                amendment are mathematically consistent.
          (4) Vote on final passage.--Immediately following the 
        conclusion of the debate on a joint resolution 
        introduced under subsection (a) of this section, a 
        single quorum call at the conclusion of the debate if 
        requested in accordance with the rules of the Senate, 
        and the disposition of any pending amendments under 
        paragraph (3), the vote on final passage of the joint 
        resolution shall occur.
          (5) Appeals.--Appeals from the decisions of the Chair 
        shall be decided without debate.
          (6) Conference reports.--In the Senate, points of 
        order under titles III, IV, and VI of the Congressional 
        Budget Act of 1974 [2 U.S.C.A. Secs. 631 et seq., 651 
        et seq., and 665 et seq.] are applicable to a 
        conference report on the joint resolution or any 
        amendments in disagreement thereto.
          (7) Resolution from other house.--If, before the 
        passage by the Senate of a joint resolution of the 
        Senate introduced under subsection (a) of this section, 
        the Senate receives from the House of Representatives a 
        joint resolution introduced under subsection (a) of 
        this section, then the following procedures shall 
        apply:
                  (A) The joint resolution of the House of 
                Representatives shall not be referred to a 
                committee and shall be placed on the calendar.
                  (B) With respect to a joint resolution 
                introduced under subsection (a) of this section 
                in the Senate--
                          (i) the procedure in the Senate shall 
                        be the same as if no joint resolution 
                        had been received from the House; but
                          (ii)(I) the vote on final passage 
                        shall be on the joint resolution of the 
                        House if it is identical to the joint 
                        resolution then pending for passage in 
                        the Senate; or
                          (II) if the joint resolution from the 
                        House is not identical to the joint 
                        resolution then pending for passage in 
                        the Senate and the Senate then passes 
                        the Senate joint resolution, the Senate 
                        shall be considered to have passed the 
                        House joint resolution as amended by 
                        the text of the Senate joint 
                        resolution.
                  (C) Upon disposition of the joint resolution 
                received from the House, it shall no longer be 
                in order to consider the resolution originated 
                in the Senate.
          (8) Senate action on house resolution.--If the Senate 
        receives from the House of Representatives a joint 
        resolution introduced under subsection (a) of this 
        section after the Senate has disposed of a Senate 
        originated resolution which is identical to the House 
        passed joint resolution, the action of the Senate with 
        regard to the disposition of the Senate originated 
        joint resolution shall be deemed to be the action of 
        the Senate with regard to the House originated joint 
        resolution. If it is not identical to the House passed 
        joint resolution, then the Senate shall be considered 
        to have passed the joint resolution of the House as 
        amended by the text of the Senate joint resolution.

SEC. 907C. FLEXIBILITY AMONG DEFENSE PROGRAMS, PROJECTS, AND 
                    ACTIVITIES.

  (a) Reductions Beyond Amount Specified in Presidential 
Order.--Subject to subsections (b), (c), and (d) of this 
section, new budget authority and unobligated balances for any 
programs, projects, or activities within major functional 
category 050 (other than a military personnel account) may be 
further reduced beyond the amount specified in an order issued 
by the President under section 904 of this title for such 
fiscal year. To the extent such additional reductions are made 
and result in additional outlay reductions, the President may 
provide for lesser reductions in new budget authority and 
unobligated balances for other programs, projects, or 
activities within major functional category 050 for such fiscal 
year, but only to the extent that the resulting outlay 
increases do not exceed the additional outlay reductions, and 
no such program, project, or activity may be increased above 
the level actually made available by law in appropriation Acts 
(before taking sequestration into account). In making 
calculations under this subsection, the President shall use 
account outlay rates that are identical to those used in the 
report by the Director of OMB under section 904 of this title.
  (b) Base Closures Prohibited.--No actions taken by the 
President under subsection (a) of this section for a fiscal 
year may result in a domestic base closure or realignment that 
would otherwise be subject to section 2687 of Title 10.
  (c) Report and Joint Resolution Required.--The President may 
not exercise the authority provided by this paragraph for a 
fiscal year unless--
          (1) the President submits a single report to Congress 
        specifying, for each account, the detailed changes 
        proposed to be made for such fiscal year pursuant to 
        this section;
          (2) that report is submitted within 5 calendar days 
        of the start of the next session of Congress; and
          (3) a joint resolution affirming or modifying the 
        changes proposed by the President pursuant to this 
        paragraph becomes law.
  (d) Introduction of Joint Resolution.--Within 5 calendar days 
of session after the President submits a report to Congress 
under subsection (c)(1) of this section for a fiscal year, the 
majority leader of each House of Congress shall (by request) 
introduce a joint resolution which contains provisions 
affirming the changes proposed by the President pursuant to 
this paragraph.
  (e) Form and Title of Joint Resolution.--
          (1) The matter after the resolving clause in any 
        joint resolution introduced pursuant to subsection (d) 
        of this section shall be as follows: ``That the report 
        of the President as submitted on [Insert Date] under 
        section 258B is hereby approved.''
          (2) The title of the joint resolution shall be 
        ``Joint resolution approving the report of the 
        President submitted under section 258B of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.''
          (3) Such joint resolution shall not contain any 
        preamble.
  (f) Calendaring and Consideration of Joint Resolution in the 
Senate.--
          (1) A joint resolution introduced in the Senate under 
        subsection (d) of this section shall be referred to the 
        Committee on Appropriations, and if not reported within 
        5 calendar days (excluding Saturdays, Sundays, and 
        legal holidays) from the date of introduction shall be 
        considered as having been discharged therefrom and 
        shall be placed on the appropriate calendar pending 
        disposition of such joint resolution in accordance with 
        this subsection. In the Senate, no amendment proposed 
        in the Committee on Appropriations shall be in order 
        other than an amendment (in the nature of a substitute) 
        that is germane or relevant to the provisions of the 
        joint resolution or to the order issued under section 
        904 of this title. For purposes of this paragraph, an 
        amendment shall be considered to be relevant if it 
        relates to function 050 (national defense).
          (2) On or after the third calendar day (excluding 
        Saturdays, Sundays, and legal holidays) beginning after 
        a joint resolution is placed on the Senate calendar, 
        notwithstanding any rule or precedent of the Senate, 
        including Rule XXII of the Standing Rules of the 
        Senate, it is in order (even though a previous motion 
        to the same effect has been disagreed to) for any 
        Member of the Senate to move to proceed to the 
        consideration of the joint resolution. The motion is 
        not in order after the eighth calendar day (excluding 
        Saturdays, Sundays, and legal holidays) beginning after 
        such joint resolution is placed on the appropriate 
        calendar. The motion is not debatable. The joint 
        resolution is privileged in the Senate. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. If a motion to 
        proceed to the consideration of the joint resolution is 
        agreed to, the Senate shall immediately proceed to 
        consideration of the joint resolution without 
        intervening motion, order, or other business, and the 
        joint resolution shall remain the unfinished business 
        of the Senate until disposed of.
  (g) Debate of Joint Resolution; Motions.--
          (1) In the Senate, debate on a joint resolution 
        introduced under subsection (d) of this section, 
        amendments thereto, and all debatable motions and 
        appeals in connection therewith shall be limited to not 
        more than 10 hours, which shall be divided equally 
        between the majority leader and the minority leader (or 
        their designees).
          (2) A motion to postpone, or a motion to proceed to 
        the consideration of other business is not in order. A 
        motion to reconsider the vote by which the joint 
        resolution is agreed to or disagreed to is not in 
        order. In the Senate, a motion to recommit the joint 
        resolution is not in order.
  (h) Amendment of Joint Resolution.--
          (1) No amendment that is not germane or relevant to 
        the provisions of the joint resolution or to the order 
        issued under section 904 of this title shall be in 
        order in the Senate. For purposes of this paragraph, an 
        amendment shall be considered to be relevant if it 
        relates to function 050 (national defense). In the 
        Senate, an amendment, any amendment to an amendment, or 
        any debatable motion or appeal is debatable for not to 
        exceed 30 minutes to be equally divided between, and 
        controlled by, the mover and the majority leader (or 
        their designees), except that in the event that the 
        majority leader favors the amendment, motion, or 
        appeal, the minority leader (or the minority leader's 
        designee) shall control the time in opposition to the 
        amendment, motion, or appeal.
          (2) In the Senate, an amendment that is otherwise in 
        order shall be in order notwithstanding the fact that 
        it amends the joint resolution in more than one place 
        or amends language previously amended, so long as the 
        amendment makes or maintains mathematical consistency. 
        It shall not be in order in the Senate to vote on the 
        question of agreeing to such a joint resolution or any 
        amendment thereto unless the figures then contained in 
        such joint resolution or amendment are mathematically 
        consistent.
          (3) It shall not be in order in the Senate to 
        consider any amendment to any joint resolution 
        introduced under subsection (d) of this section or any 
        conference report thereon if such amendment or 
        conference report would have the effect of decreasing 
        any specific budget outlay reductions below the level 
        of such outlay reductions provided in such joint 
        resolution unless such amendment or conference report 
        makes a reduction in other specific budget outlays at 
        least equivalent to any increase in outlays provided by 
        such amendment or conference report.
          (4) For purposes of the application of paragraph (3), 
        the level of outlays and specific budget outlay 
        reductions provided in an amendment shall be determined 
        on the basis of estimates made by the Committee on the 
        Budget of the Senate.
  (i) Vote on Final Passage of Joint Resolution.--Immediately 
following the conclusion of the debate on a joint resolution 
introduced under subsection (d) of this section, a single 
quorum call at the conclusion of the debate if requested in 
accordance with the rules of the Senate, and the disposition of 
any pending amendments under subsection (h) of this section, 
the vote on final passage of the joint resolution shall occur.
  (j) Appeal From Decision of Chair.--Appeals from the 
decisions of the Chair relating to the application of the rules 
of the Senate to the procedure relating to a joint resolution 
described in subsection (d) of this section shall be decided 
without debate.
  (k) Conference Reports.--In the Senate, points of order under 
titles III [2 U.S.C.A. Sec. 631 et seq.] and IV [2 U.S.C.A. 
Sec. 651 et seq.] of the Congressional Budget Act of 1974 
(including points of order under sections 302(c) [2 U.S.C.A. 
Sec. 633(c)], 303(a) [2 U.S.C.A. Sec. 634(a)], 306 [2 U.S.C.A. 
Sec. 637], and 401(b)(1) [2 U.S.C.A. Sec. 651(b)(1)]) are 
applicable to a conference report on the joint resolution or 
any amendments in disagreement thereto.
  (l) Resolution From Other House.--If, before the passage by 
the Senate of a joint resolution of the Senate introduced under 
subsection (d) of this section, the Senate receives from the 
House of Representatives a joint resolution introduced under 
subsection (d) of this section, then the following procedures 
shall apply:
          (1) The joint resolution of the House of 
        Representatives shall not be referred to a committee.
          (2) With respect to a joint resolution introduced 
        under subsection (d) of this section in the Senate--
                  (A) the procedure in the Senate shall be the 
                same as if no joint resolution had been 
                received from the House; but
                  (B)(i) the vote on final passage shall be on 
                the joint resolution of the House if it is 
                identical to the joint resolution then pending 
                for passage in the Senate; or
                  (ii) if the joint resolution from the House 
                is not identical to the joint resolution then 
                pending for passage in the Senate and the 
                Senate then passes the Senate joint resolution, 
                the Senate shall be considered to have passed 
                the House joint resolution as amended by the 
                text of the Senate joint resolution.
          (3) Upon disposition of the joint resolution received 
        from the House, it shall no longer be in order to 
        consider the joint resolution originated in the Senate.
  (m) Senate Action on House Resolution.--If the Senate 
receives from the House of Representatives a joint resolution 
introduced under subsection (d) of this section after the 
Senate has disposed of a Senate originated joint resolution 
which is identical to the House passed joint resolution, the 
action of the Senate with regard to the disposition of the 
Senate originated joint resolution shall be deemed to be the 
action of the Senate with regard to the House originated joint 
resolution. If it is not identical to the House passed joint 
resolution, then the Senate shall be considered to have passed 
the joint resolution of the House as amended by the text of the 
Senate joint resolution.

SEC. 907D. SPECIAL RECONCILIATION PROCESS.

  (a) Reporting of Resolutions and Reconciliation Bills and 
Resolutions, in the Senate.--
          (1) Committee alternatives to presidential order.--
        After the submission of an OMB sequestration update 
        report under section 904 of this title that envisions a 
        sequestration under section 902 of this title or 903 of 
        this title, each standing committee of the Senate may, 
        not later than October 10, submit to the Committee on 
        the Budget of the Senate information of the type 
        described in section 632(d) of this title with respect 
        to alternatives to the order envisioned by such report 
        insofar as such order affects laws within the 
        jurisdiction of the committee.
          (2) Initial budget committee action.--After the 
        submission of such a report, the Committee on the 
        Budget of the Senate may, not later than October 15, 
        report to the Senate a resolution. The resolution may 
        affirm the impact of the order envisioned by such 
        report, in whole or in part. To the extent that any 
        part is not affirmed, the resolution shall state which 
        parts are not affirmed and shall contain instructions 
        to committees of the Senate of the type referred to in 
        section 641(a) of this title, sufficient to achieve at 
        least the total level of deficit reduction contained in 
        those sections which are not affirmed.
          (3) Response of committees.--Committees instructed 
        pursuant to paragraph (2), or affected thereby, shall 
        submit their responses to the Budget Committee no later 
        than 10 days after the resolution referred to in 
        paragraph (2) is agreed to, except that if only one 
        such Committee is so instructed such Committee shall, 
        by the same date, report to the Senate a reconciliation 
        bill or reconciliation resolution containing its 
        recommendations in response to such instructions. A 
        committee shall be considered to have complied with all 
        instructions to it pursuant to a resolution adopted 
        under paragraph (2) if it has made recommendations with 
        respect to matters within its jurisdiction which would 
        result in a reduction in the deficit at least equal to 
        the total reduction directed by such instructions.
          (4) Budget committee action.--Upon receipt of the 
        recommendations received in response to a resolution 
        referred to in paragraph (2), the Budget Committee 
        shall report to the Senate a reconciliation bill or 
        reconciliation resolution, or both, carrying out all 
        such recommendations without any substantive revisions. 
        In the event that a committee instructed in a 
        resolution referred to in paragraph (2) fails to submit 
        any recommendation (or, when only one committee is 
        instructed, fails to report a reconciliation bill or 
        resolution) in response to such instructions, the 
        Budget Committee shall include in the reconciliation 
        bill or reconciliation resolution reported pursuant to 
        this subparagraph legislative language within the 
        jurisdiction of the noncomplying committee to achieve 
        the amount of deficit reduction directed in such 
        instructions.
          (5) Point of order.--It shall not be in order in the 
        Senate to consider any reconciliation bill or 
        reconciliation resolution reported under paragraph (4) 
        with respect to a fiscal year, any amendment thereto, 
        or any conference report thereon if--
                  (A) the enactment of such bill or resolution 
                as reported;
                  (B) the adoption and enactment of such 
                amendment; or
                  (C) the enactment of such bill or resolution 
                in the form recommended in such conference 
                report,
        would cause the amount of the deficit for such fiscal 
        year to exceed the maximum deficit amount for such 
        fiscal year, unless the low-growth report submitted 
        under section 904 of this title projects negative real 
        economic growth for such fiscal year, or for each of 
        any two consecutive quarters during such fiscal year.
          (6) Treatment of certain amendments.--In the Senate, 
        an amendment which adds to a resolution reported under 
        paragraph (2) an instruction of the type referred to in 
        such paragraph shall be in order during the 
        consideration of such resolution if such amendment 
        would be in order but for the fact that it would be 
        held to be non-germane on the basis that the 
        instruction constitutes new matter.
          (7) Definition.--For purposes of paragraphs (1), (2), 
        and (3), the term ``day'' shall mean any calendar day 
        on which the Senate is in session.
  (b) Procedures.--
          (1) In general.--Except as provided in paragraph (2), 
        in the Senate the provisions of sections 636 and 641 of 
        this title for the consideration of concurrent 
        resolutions on the budget and conference reports 
        thereon shall also apply to the consideration of 
        resolutions, and reconciliation bills and 
        reconciliation resolutions reported under this 
        paragraph and conference reports thereon.
          (2) Limit on debate.--Debate in the Senate on any 
        resolution reported pursuant to subsection (a)(2) of 
        this section, and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be 
        limited to 10 hours.
          (3) Limitation on amendments.--Section 636(d)(2) of 
        this title shall apply to reconciliation bills and 
        reconciliation resolutions reported under this 
        subsection.
          (4) Bills and resolutions received from the house.--
        Any bill or resolution received in the Senate from the 
        House, which is a companion to a reconciliation bill or 
        reconciliation resolution of the Senate for the 
        purposes of this subsection, shall be considered in the 
        Senate pursuant to the provisions of this subsection.
          (5) Definition.--For purposes of this subsection, the 
        term ``resolution'' means a simple, joint, or 
        concurrent resolution.

SEC. 908. MODIFICATION OF PRESIDENTIAL ORDER.

  (a) Introduction of Joint Resolution.--At any time after the 
Director of OMB issues a report under section 901(c)(2) of this 
title for a fiscal year, but before the close of the tenth 
calendar day of session in that session of Congress beginning 
after the date of issuance of such report, the majority leader 
of either House of Congress may introduce a joint resolution 
which contains provisions directing the President to modify the 
most recent order issued under section 902 of this title for 
such fiscal year. After the introduction of the first such 
joint resolution in either House of Congress in any calendar 
year, then no other joint resolution introduced in such House 
in such calendar year shall be subject to the procedures set 
forth in this section.
  (b) Procedures for Consideration of Joint Resolutions.--
          (1) No referral to committee.--A joint resolution 
        introduced in the Senate or the House of 
        Representatives under subsection (a) of this section 
        shall not be referred to a committee of the Senate or 
        the House of Representatives, as the case may be, and 
        shall be placed on the appropriate calendar pending 
        disposition of such joint resolution in accordance with 
        this subsection.
          (2) Immediate consideration.--On or after the third 
        calendar day (excluding Saturdays, Sundays, and legal 
        holidays) beginning after a joint resolution is 
        introduced under subsection (a) of this section, 
        notwithstanding any rule or precedent of the Senate, 
        including Rule 22 of the Standing Rules of the Senate, 
        it is in order (even though a previous motion to the 
        same effect has been disagreed to) for any Member of 
        the respective House to move to proceed to the 
        consideration of the joint resolution, and all points 
        of order against the joint resolution (and against 
        consideration of the joint resolution) are waived, 
        except for points of order under titles III [2 U.S.C.A. 
        Sec. 631 et seq.] or IV [2 U.S.C.A. Sec. 651 et seq.] 
        of the Congressional Budget Act of 1974. The motion is 
        not in order after the eighth calendar day (excluding 
        Saturdays, Sundays, and legal holidays) beginning after 
        a joint resolution (to which the motion applies) is 
        introduced. The motion is highly privileged in the 
        House of Representatives and is privileged in the 
        Senate and is not debatable. The motion is not subject 
        to amendment, or to a motion to postpone, or to a 
        motion to proceed to the consideration of other 
        business. A motion to reconsider the vote by which the 
        motion is agreed to or disagreed to shall not be in 
        order. If a motion to proceed to the consideration of 
        the joint resolution is agreed to, the respective House 
        shall immediately proceed to consideration of the joint 
        resolution without intervening motion, order, or other 
        business, and the joint resolution shall remain the 
        unfinished business of the respective House until 
        disposed of.
          (3) Debate--
                  (A) In the Senate, debate on a joint 
                resolution introduced under subsection (a) of 
                this section, amendments thereto, and all 
                debatable motions and appeals in connection 
                therewith shall be limited to not more than 10 
                hours, which shall be divided equally between 
                the majority leader and the minority leader (or 
                their designees). In the House, general debate 
                on a joint resolution introduced under 
                subsection (a) of this section shall be limited 
                to not more than 4 hours which shall be equally 
                divided between the majority and minority 
                leaders.
                  (B) A motion to postpone, or a motion to 
                proceed to the consideration of other business 
                is not in order. A motion to reconsider the 
                vote by which the joint resolution is agreed to 
                or disagreed to is not in order. In the Senate, 
                a motion to recommit the joint resolution is 
                not in order. In the House, a motion further to 
                limit debate is in order and not debatable. In 
                the House, a motion to recommit is in order.
                  (C)(i) In the House of Representatives, an 
                amendment and any amendment thereto is 
                debatable for not to exceed 30 minutes to be 
                equally divided between the proponent of the 
                amendment and a Member opposed thereto.
                  (ii) No amendment that is not germane or 
                relevant to the provisions of the joint 
                resolution or to the order issued under section 
                902(b)(1) of this title shall be in order in 
                the Senate. In the Senate, an amendment, any 
                amendment to an amendment, or any debatable 
                motion or appeal is debatable for not to exceed 
                30 minutes to be equally divided between the 
                majority leader and the minority leader (or 
                their designees).
                  (iii) In the Senate, an amendment that is 
                otherwise in order shall be in order 
                notwithstanding the fact that it amends the 
                joint resolution in more than one place or 
                amends language previously amended. It shall 
                not be in order in the Senate to vote on the 
                question of agreeing to such a joint resolution 
                or any amendment thereto unless the figures 
                then contained in such joint resolution or 
                amendment are mathematically consistent.
          (4) Vote on final passage.--Immediately following the 
        conclusion of the debate on a joint resolution 
        introduced under subsection (a) of this section, a 
        single quorum call at the conclusion of the debate if 
        requested in accordance with the rules of the 
        appropriate House, and the disposition of any 
        amendments under paragraph (3) (except for the motion 
        to recommit in the House of Representatives), the vote 
        on final passage of the joint resolution shall occur.
          (5) Appeals.--Appeals from the decisions of the Chair 
        relating to the application of the rules of the Senate 
        or the House of Representatives, as the case may be, to 
        the procedure relating to a joint resolution described 
        in subsection (a) of this section shall be decided 
        without debate.
          (6) Conference reports.--In the Senate, points of 
        order under titles III [2 U.S.C.A. Sec. 631 et seq.] 
        and IV [2 U.S.C.A. Sec. 651 et seq.] of the 
        Congressional Budget Act of 1974 (including points of 
        order under sections 302(c) [2 U.S.C.A. Sec. 633(c)], 
        303(a) [2 U.S.C.A. Sec. 634(a)], 306 [2 U.S.C.A. Sec. 
        637], and 401(b)(1) [2 U.S.C.A. Sec. 651(b)(1)]) are 
        applicable to a conference report on the joint 
        resolution or any amendments in disagreement thereto.
          (7) Resolution from other house.--If, before the 
        passage by the Senate of a joint resolution of the 
        Senate introduced under subsection (a) of this section, 
        the Senate receives from the House of Representatives a 
        joint resolution introduced under subsection (a), of 
        this section, then the following procedures shall 
        apply:
                  (A) The joint resolution of the House of 
                Representatives shall not be referred to a 
                committee.
                  (B) With respect to a joint resolution 
                introduced under subsection (a) of this section 
                in the Senate--
                          (i) the procedure in the Senate shall 
                        be the same as if no joint resolution 
                        had been received from the House; but
                          (ii)(I) the vote on final passage 
                        shall be on the joint resolution of the 
                        House if it is identical to the joint 
                        resolution then pending for passage in 
                        the Senate; or
                          (II) if the joint resolution from the 
                        House is not identical to the joint 
                        resolution then pending for passage in 
                        the Senate and the Senate then passes 
                        it, the Senate shall be considered to 
                        have passed the joint resolution as 
                        amended by the text of the Senate joint 
                        resolution.
                  (C) Upon disposition of the joint resolution 
                received from the House, it shall no longer be 
                in order to consider the resolution originated 
                in the Senate.
          (8) Senate action on house resolution.--If the Senate 
        receives from the House of Representatives a joint 
        resolution introduced under subsection (a) of this 
        section after the Senate has disposed of a Senate 
        originated resolution which is identical to the House 
        passed joint resolution, the action of the Senate with 
        regard to the disposition of the Senate originated 
        joint resolution shall be deemed to be the action of 
        the Senate with regard to the House originated joint 
        resolution. If it is not identical to the House passed 
        joint resolution, then the Senate shall be considered 
        to have passed the joint resolution of the House as 
        amended by the text of the Senate joint resolution.
======================================================================


                    SELECTED PROVISIONS OF TITLE 5,

                          UNITED STATES CODE--

                      GOVERNMENT ORGANIZATION AND

                               EMPLOYEES

======================================================================

      
       Table of Sections of Selected Provisions of Title 5 8
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    \8\ This table of sections is not part of Title 5 but is included 
for the convenience of the reader.
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                              ----------                              


                      TITLE 5, UNITED STATES CODE

                 GOVERNMENT ORGANIZATION AND EMPLOYEES

                     PART I--THE AGENCIES GENERALLY

                        CHAPTER 1--ORGANIZATION
Sec. 101.  Executive departments.
Sec. 102.  Military departments.
Sec. 103.  Government corporation.
                           CHAPTER 3--POWERS
Sec. 306.  Strategic plans.
                  CHAPTER 5--ADMINISTRATIVE PROCEDURE
                Subchapter II--Administrative Procedure
Sec. 551.  Definitions.
Sec. 552a.  Records maintained on Individuals.
                   APPENDIX 3--INSPECTOR GENERAL ACT
Sec. 1.   Short title.
Sec. 2.   Purpose and establishment of Offices of Inspector 
General.
Sec. 3.   Appointment of Inspector General.
Sec. 4.   Duties and responsibilities.
Sec. 5.   Semiannual reports.
Sec. 6.   Authority of Inspector General.
Sec. 7.   Complaints by employees.
Sec. 8A.  Special provisions relating to the Agency for 
International Development.
Sec. 8B.  Special provisions relating to the Nuclear Regulatory 
Commission.
Sec. 8C.  Special provisions relating to the Federal Deposit 
Insurance Corporation.
Sec. 8D.  Special provisions relating to the Department of the 
Treasury.
Sec. 8E.  Special provisions relating to the Department of 
Justice.
Sec. 8F.  Special provisions relating to the Corporation for 
National and Community Service.
Sec. 8G.  Requirements for Federal entities and designated 
Federal entities.
Sec. 8H.  Rule of construction of special provisions.
Sec. 9.   Transfer of functions.
Sec. 10.  Conforming and technical amendments.
Sec. 11.  Definitions.
Sec. 12.  Effective date.
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

          * * * * * * *

                     PART I--THE AGENCIES GENERALLY

                        CHAPTER 1--ORGANIZATION

SEC. 101. EXECUTIVE DEPARTMENTS.

  The Executive departments are:
          The Department of State.
          The Department of the Treasury.
          The Department of Defense.
          The Department of Justice.
          The Department of the Interior.
          The Department of Agriculture.
          The Department of Commerce.
          The Department of Labor.
          The Department of Health and Human Services.
          The Department of Housing and Urban Development.
          The Department of Transportation.
          The Department of Energy.
          The Department of Education.
          The Department of Veterans Affairs.

SEC. 102. MILITARY DEPARTMENTS.

  The military departments are:
          The Department of the Army.
          The Department of the Navy.
          The Department of the Air Force.

SEC. 103. GOVERNMENT CORPORATION.

  For the purpose of this title--
          (1) ``Government corporation'' means a corporation 
        owned or controlled by the Government of the United 
        States; and
          (2) ``Government controlled corporation'' does not 
        include a corporation owned by the Government of the 
        United States.
          * * * * * * *
  The following list shows the section of 5 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 5 U.S.C.                    Requirements or Guidelines 
------------------------------------------------------------------------
102.......................................  32 C.F.R. 626, 627          
------------------------------------------------------------------------

             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

          * * * * * * *

                     PART I--THE AGENCIES GENERALLY

                           CHAPTER 3--POWERS

SEC. 306. STRATEGIC PLANS.

  (a) No later than September 30, 1997, the head of each agency 
shall submit to the Director of the Office of Management and 
Budget and to the Congress a strategic plan for program 
activities. Such plan shall contain--
          (1) a comprehensive mission statement covering the 
        major functions and operations of the agency;
          (2) general goals and objectives, including outcome-
        related goals and objectives, for the major functions 
        and operations of the agency;
          (3) a description of how the goals and objectives are 
        to be achieved, including a description of the 
        operational processes, skills and technology, and the 
        human, capital, information, and other resources 
        required to meet those goals and objectives;
          (4) a description of how the performance goals 
        included in the plan required by section 1115(a) of 
        title 31 shall be related to the general goals and 
        objectives in the strategic plan;
          (5) an identification of those key factors external 
        to the agency and beyond its control that could 
        significantly affect the achievement of the general 
        goals and objectives; and
          (6) a description of the program evaluations used in 
        establishing or revising general goals and objectives, 
        with a schedule for future program evaluations.
  (b) The strategic plan shall cover a period of not less than 
five years forward from the fiscal year in which it is 
submitted, and shall be updated and revised at least every 
three years.
  (c) The performance plan required by section 1115 of title 31 
shall be consistent with the agency's strategic plan. A 
performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section.
  (d) When developing a strategic plan, the agency shall 
consult with the Congress, and shall solicit and consider the 
views and suggestions of those entities potentially affected by 
or interested in such a plan.
  (e) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of strategic plans under this section shall be 
performed only by Federal employees.
  (f) For purposes of this section the term ``agency'' means an 
Executive agency defined under section 105, but does not 
include the Central Intelligence Agency, the General Accounting 
Office, the Panama Canal Commission, the United States Postal 
Service, and the Postal Rate Commission.
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

          * * * * * * *

                     PART I--THE AGENCIES GENERALLY

                  CHAPTER 5--ADMINISTRATIVE PROCEDURE

                Subchapter II--Administrative Procedure

SEC. 551. DEFINITIONS.

  For the purpose of this subchapter--
          (1) ``agency'' means each authority of the Government 
        of the United States, whether or not it is within or 
        subject to review by another agency, but does not 
        include--
                  (A) the Congress;
                  (B) the courts of the United States;
                  (C) the governments of the territories or 
                possessions of the United States;
                  (D) the government of the District of 
                Columbia;
        or except as to the requirements of section 552 of this 
        title--
                  (E) agencies composed of representatives of 
                the parties or of representatives of 
                organizations of the parties to the disputes 
                determined by them;
                  (F) courts martial and military commissions;
                  (G) military authority exercised in the field 
                in time of war or in occupied territory; or
                  (H) functions conferred by sections 1738, 
                1739, 1743, and 1744 of title 12; chapter 2 of 
                title 41; subchapter II of chapter 471 of title 
                49; or sections 1884, 1891-1902, and former 
                section 1641(b)(2), of title 50, appendix;
          (2) ``person'' includes an individual, partnership, 
        corporation, association, or public or private 
        organization other than an agency;
          (3) ``party'' includes a person or agency named or 
        admitted as a party, or properly seeking and entitled 
        as of right to be admitted as a party, in an agency 
        proceeding, and a person or agency admitted by an 
        agency as a party for limited purposes;
          (4) ``rule'' means the whole or a part of an agency 
        statement of general or particular applicability and 
        future effect designed to implement, interpret, or 
        prescribe law or policy or describing the organization, 
        procedure, or practice requirements of an agency and 
        includes the approval or prescription for the future of 
        rates, wages, corporate or financial structures or 
        reorganizations thereof, prices, facilities, 
        appliances, services or allowances therefor or of 
        valuations, costs, or accounting, or practices bearing 
        on any of the foregoing;
          (5) ``rule making'' means agency process for 
        formulating, amending, or repealing a rule;
          (6) ``order'' means the whole or a part of a final 
        disposition, whether affirmative, negative, injunctive, 
        or declaratory in form, of an agency in a matter other 
        than rule making but including licensing;
          (7) ``adjudication'' means agency process for the 
        formulation of an order;
          (8) ``license'' includes the whole or a part of an 
        agency permit, certificate, approval, registration, 
        charter, membership, statutory exemption or other form 
        of permission;
          (9) ``licensing'' includes agency process respecting 
        the grant, renewal, denial, revocation, suspension, 
        annulment, withdrawal, limitation, amendment, 
        modification, or conditioning of a license;
          (10) ``sanction'' includes the whole or a part of an 
        agency--
                  (A) prohibition, requirement, limitation, or 
                other condition affecting the freedom of a 
                person;
                  (B) withholding of relief;
                  (C) imposition of penalty or fine;
                  (D) destruction, taking, seizure, or 
                withholding of property;
                  (E) assessment of damages, reimbursement, 
                restitution, compensation, costs, charges, or 
                fees;
                  (F) requirement, revocation, or suspension of 
                a license; or
                  (G) taking other compulsory or restrictive 
                action;
          (11) ``relief'' includes the whole or a part of an 
        agency--
                  (A) grant of money, assistance, license, 
                authority, exemption, exception, privilege, or 
                remedy;
                  (B) recognition of a claim, right, immunity, 
                privilege, exemption, or exception; or
                  (C) taking of other action on the application 
                or petition of, and beneficial to, a person;
          (12) ``agency proceeding'' means an agency process as 
        defined by paragraphs (5), (7), and (9) of this 
        section;
          (13) ``agency action'' includes the whole or a part 
        of an agency rule, order, license, sanction, relief, or 
        the equivalent or denial thereof, or failure to act; 
        and
          (14) ``ex parte communication'' means an oral or 
        written communication not on the public record with 
        respect to which reasonable prior notice to all parties 
        is not given, but it shall not include requests for 
        status reports on any matter or proceeding covered by 
        this subchapter.

SEC. 552A. RECORDS MAINTAINED ON INDIVIDUALS.

  (a) Definitions.--For purposes of this section--
          (1) the term ``agency'' means agency as defined in 
        section 552(e) of this title;
          (2) the term ``individual'' means a citizen of the 
        United States or an alien lawfully admitted for 
        permanent residence;
          (3) the term ``maintain'' includes maintain, collect, 
        use, or disseminate;
          (4) the term ``record'' means any item, collection, 
        or grouping of information about an individual that is 
        maintained by an agency, including, but not limited to, 
        his education, financial transactions, medical history, 
        and criminal or employment history and that contains 
        his name, or the identifying number, symbol, or other 
        identifying particular assigned to the individual, such 
        as a finger or voice print or a photograph;
          (5) the term ``system of records'' means a group of 
        any records under the control of any agency from which 
        information is retrieved by the name of the individual 
        or by some identifying number, symbol, or other 
        identifying particular assigned to the individual;
          (6) the term ``statistical record'' means a record in 
        a system of records maintained for statistical research 
        or reporting purposes only and not used in whole or in 
        part in making any determination about an identifiable 
        individual, except as provided by section 8 of title 
        13;
          (7) the term ``routine use'' means, with respect to 
        the disclosure of a record, the use of such record for 
        a purpose which is compatible with the purpose for 
        which it was collected;
          (8) the term ``matching program''--
                  (A) means any computerized comparison of--
                          (i) two or more automated systems of 
                        records or a system of records with 
                        non-Federal records for the purpose 
                        of--
                                  (I) establishing or verifying 
                                the eligibility of, or 
                                continuing compliance with 
                                statutory and regulatory 
                                requirements by, applicants 
                                for, recipients or 
                                beneficiaries of, participants 
                                in, or providers of services 
                                with respect to, cash or in-
                                kind assistance or payments 
                                under Federal benefit programs, 
                                or
                                  (II) recouping payments or 
                                delinquent debts under such 
                                Federal benefit programs, or
                          (ii) two or more automated Federal 
                        personnel or payroll systems of records 
                        or a system of Federal personnel or 
                        payroll records with non-Federal 
                        records,
                  (B) but does not include--
                          (i) matches performed to produce 
                        aggregate statistical data without any 
                        personal identifiers;
                          (ii) matches performed to support any 
                        research or statistical project, the 
                        specific data of which may not be used 
                        to make decisions concerning the 
                        rights, benefits, or privileges of 
                        specific individuals;
                          (iii) matches performed, by an agency 
                        (or component thereof) which performs 
                        as its principal function any activity 
                        pertaining to the enforcement of 
                        criminal laws, subsequent to the 
                        initiation of a specific criminal or 
                        civil law enforcement investigation of 
                        a named person or persons for the 
                        purpose of gathering evidence against 
                        such person or persons;
                          (iv) matches of tax information (I) 
                        pursuant to section 6103(d) of the 
                        Internal Revenue Code of 1986, (II) for 
                        purposes of tax administration as 
                        defined in section 6103(b)(4) of such 
                        Code, (III) for the purpose of 
                        intercepting a tax refund due an 
                        individual under authority granted by 
                        section 464 or 1137 of the Social 
                        Security Act; or (IV) for the purpose 
                        of intercepting a tax refund due an 
                        individual under any other tax refund 
                        intercept program authorized by statute 
                        which has been determined by the 
                        Director of the Office of Management 
                        and Budget to contain verification, 
                        notice, and hearing requirements that 
                        are substantially similar to the 
                        procedures in section 1137 of the 
                        Social Security Act;
                          (v) matches--
                                  (I) using records 
                                predominantly relating to 
                                Federal personnel, that are 
                                performed for routine 
                                administrative purposes 
                                (subject to guidance provided 
                                by the Director of the Office 
                                of Management and Budget 
                                pursuant to subsection (v)); or
                                  (II) conducted by an agency 
                                using only records from systems 
                                of records maintained by that 
                                agency;
                        if the purpose of the match is not to 
                        take any adverse financial, personnel, 
                        disciplinary, or other adverse action 
                        against Federal personnel
                          (vi) matches performed for foreign 
                        counterintelligence purposes or to 
                        produce background checks for security 
                        clearances of Federal personnel or 
                        Federal contractor personnel; or
                          (vii) matches performed pursuant to 
                        section 6103(l)(12) of the Internal 
                        Revenue Code of 1986 and section 1144 
                        of the Social Security Act;
          (9) the term ``recipient agency'' means any agency, 
        or contractor thereof, receiving records contained in a 
        system of records from a source agency for use in a 
        matching program;
          (10) the term ``non-Federal agency'' means any State 
        or local government, or agency thereof, which receives 
        records contained in a system of records from a source 
        agency for use in a matching program;
          (11) the term ``source agency'' means any agency 
        which discloses records contained in a system of 
        records to be used in a matching program, or any State 
        or local government, or agency thereof, which discloses 
        records to be used in a matching program;
          (12) the term ``Federal benefit program'' means any 
        program administered or funded by the Federal 
        Government, or by any agent or State on behalf of the 
        Federal Government, providing cash or in-kind 
        assistance in the form of payments, grants, loans, or 
        loan guarantees to individuals; and
          (13) the term ``Federal personnel'' means officers 
        and employees of the Government of the United States, 
        members of the uniformed services (including members of 
        the Reserve Components), individuals entitled to 
        receive immediate or deferred retirement benefits under 
        any retirement program of the Government of the United 
        States (including survivor benefits).
  (b) Conditions of Disclosure.--No agency shall disclose any 
record which is contained in a system of records by any means 
of communication to any person, or to another agency, except 
pursuant to a written request by, or with the prior written 
consent of, the individual to whom the record pertains, unless 
disclosure of the record would be--
          (1) to those officers and employees of the agency 
        which maintains the record who have a need for the 
        record in the performance of their duties;
          (2) required under section 552 of this title;
          (3) for a routine use as defined in subsection (a)(7) 
        of this section and described under subsection 
        (e)(4)(D) of this section;
          (4) to the Bureau of the Census for purposes of 
        planning or carrying out a census or survey or related 
        activity pursuant to the provisions of title 13;
          (5) to a recipient who has provided the agency with 
        advance adequate written assurance that the record will 
        be used solely as a statistical research or reporting 
        record, and the record is to be transferred in a form 
        that is not individually identifiable;
          (6) to the National Archives and Records 
        Administration as a record which has sufficient 
        historical or other value to warrant its continued 
        preservation by the United States Government, or for 
        evaluation by the Archivist of the United States or the 
        designee of the Archivist to determine whether the 
        record has such value;
          (7) to another agency or to an instrumentality of any 
        governmental jurisdiction within or under the control 
        of the United States for a civil or criminal law 
        enforcement activity if the activity is authorized by 
        law, and if the head of the agency or instrumentality 
        has made a written request to the agency which 
        maintains the record specifying the particular portion 
        desired and the law enforcement activity for which the 
        record is sought;
          (8) to a person pursuant to a showing of compelling 
        circumstances affecting the health or safety of an 
        individual if upon such disclosure notification is 
        transmitted to the last known address of such 
        individual;
          (9) to either House of Congress, or, to the extent of 
        matter within its jurisdiction, any committee or 
        subcommittee thereof, any joint committee of Congress 
        or subcommittee of any such joint committee;
          (10) to the Comptroller General, or any of his 
        authorized representatives, in the course of the 
        performance of the duties of the General Accounting 
        Office;
          (11) pursuant to the order of a court of competent 
        jurisdiction; or
          (12) to a consumer reporting agency in accordance 
        with section 3711(f) of title 31.
  (c) Accounting of Certain Disclosures.--Each agency, with 
respect to each system of records under its control, shall--
          (1) except for disclosures made under subsections 
        (b)(1) or (b)(2) of this section, keep an accurate 
        accounting of--
                  (A) the date, nature, and purpose of each 
                disclosure of a record to any person or to 
                another agency made under subsection (b) of 
                this section; and
                  (B) the name and address of the person or 
                agency to whom the disclosure is made;
          (2) retain the accounting made under paragraph (1) of 
        this subsection for at least five years or the life of 
        the record, whichever is longer, after the disclosure 
        for which the accounting is made;
          (3) except for disclosures made under subsection 
        (b)(7) of this section, make the accounting made under 
        paragraph (1) of this subsection available to the 
        individual named in the record at his request; and
          (4) inform any person or other agency about any 
        correction or notation of dispute made by the agency in 
        accordance with subsection (d) of this section of any 
        record that has been disclosed to the person or agency 
        if an accounting of the disclosure was made.
  (d) Access to Records.--Each agency that maintains a system 
of records shall--
          (1) upon request by any individual to gain access to 
        his record or to any information pertaining to him 
        which is contained in the system, permit him and upon 
        his request, a person of his own choosing to accompany 
        him, to review the record and have a copy made of all 
        or any portion thereof in a form comprehensible to him, 
        except that the agency may require the individual to 
        furnish a written statement authorizing discussion of 
        that individual's record in the accompanying person's 
        presence;
          (2) permit the individual to request amendment of a 
        record pertaining to him and--
                  (A) not later than 10 days (excluding 
                Saturdays, Sundays, and legal public holidays) 
                after the date of receipt of such request, 
                acknowledge in writing such receipt; and
                  (B) promptly, either--
                          (i) make any correction of any 
                        portion thereof which the individual 
                        believes is not accurate, relevant, 
                        timely, or complete; or
                          (ii) inform the individual of its 
                        refusal to amend the record in 
                        accordance with his request, the reason 
                        for the refusal, the procedures 
                        established by the agency for the 
                        individual to request a review of that 
                        refusal by the head of the agency or an 
                        officer designated by the head of the 
                        agency, and the name and business 
                        address of that official;
          (3) permit the individual who disagrees with the 
        refusal of the agency to amend his record to request a 
        review of such refusal, and not later than 30 days 
        (excluding Saturdays, Sundays, and legal public 
        holidays) from the date on which the individual 
        requests such review, complete such review and make a 
        final determination unless, for good cause shown, the 
        head of the agency extends such 30-day period; and if, 
        after his review, the reviewing official also refuses 
        to amend the record in accordance with the request, 
        permit the individual to file with the agency a concise 
        statement setting forth the reasons for his 
        disagreement with the refusal of the agency, and notify 
        the individual of the provisions for judicial review of 
        the reviewing official's determination under subsection 
        (g)(1)(A) of this section;
          (4) in any disclosure, containing information about 
        which the individual has filed a statement of 
        disagreement, occurring after the filing of the 
        statement under paragraph (3) of this subsection, 
        clearly note any portion of the record which is 
        disputed and provide copies of the statement and, if 
        the agency deems it appropriate, copies of a concise 
        statement of the reasons of the agency for not making 
        the amendments requested, to persons or other agencies 
        to whom the disputed record has been disclosed; and
          (5) nothing in this section shall allow an individual 
        access to any information compiled in reasonable 
        anticipation of a civil action or proceeding.
  (e) Agency Requirements.--Each agency that maintains a system 
of records shall--
          (1) maintain in its records only such information 
        about an individual as is relevant and necessary to 
        accomplish a purpose of the agency required to be 
        accomplished by statute or by executive order of the 
        President;
          (2) collect information to the greatest extent 
        practicable directly from the subject individual when 
        the information may result in adverse determinations 
        about an individual's rights, benefits, and privileges 
        under Federal programs;
          (3) inform each individual whom it asks to supply 
        information, on the form which it uses to collect the 
        information or on a separate form that can be retained 
        by the individual--
                  (A) the authority (whether granted by 
                statute, or by executive order of the 
                President) which authorizes the solicitation of 
                the information and whether disclosure of such 
                information is mandatory or voluntary;
                  (B) the principal purpose or purposes for 
                which the information is intended to be used;
                  (C) the routine uses which may be made of the 
                information, as published pursuant to paragraph 
                (4)(D) of this subsection; and
                  (D) the effects on him, if any, of not 
                providing all or any part of the requested 
                information;
          (4) subject to the provisions of paragraph (11) of 
        this subsection, publish in the Federal Register upon 
        establishment or revision a notice of the existence and 
        character of the system of records, which notice shall 
        include--
                  (A) the name and location of the system;
                  (B) the categories of individuals on whom 
                records are maintained in the system;
                  (C) the categories of records maintained in 
                the system;
                  (D) each routine use of the records contained 
                in the system, including the categories of 
                users and the purpose of such use;
                  (E) the policies and practices of the agency 
                regarding storage, retrievability, access 
                controls, retention, and disposal of the 
                records;
                  (F) the title and business address of the 
                agency official who is responsible for the 
                system of records;
                  (G) the agency procedures whereby an 
                individual can be notified at his request if 
                the system of records contains a record 
                pertaining to him;
                  (H) the agency procedures whereby an 
                individual can be notified at his request how 
                he can gain access to any record pertaining to 
                him contained in the system of records, and how 
                he can contest its content; and
                  (I) the categories of sources of records in 
                the system;
          (5) maintain all records which are used by the agency 
        in making any determination about any individual with 
        such accuracy, relevance, timeliness, and completeness 
        as is reasonably necessary to assure fairness to the 
        individual in the determination;
          (6) prior to disseminating any record about an 
        individual to any person other than an agency, unless 
        the dissemination is made pursuant to subsection (b)(2) 
        of this section, make reasonable efforts to assure that 
        such records are accurate, complete, timely, and 
        relevant for agency purposes;
          (7) maintain no record describing how any individual 
        exercises rights guaranteed by the First Amendment 
        unless expressly authorized by statute or by the 
        individual about whom the record is maintained or 
        unless pertinent to and within the scope of an 
        authorized law enforcement activity;
          (8) make reasonable efforts to serve notice on an 
        individual when any record on such individual is made 
        available to any person under compulsory legal process 
        when such process becomes a matter of public record;
          (9) establish rules of conduct for persons involved 
        in the design, development, operation, or maintenance 
        of any system of records, or in maintaining any record, 
        and instruct each such person with respect to such 
        rules and the requirements of this section, including 
        any other rules and procedures adopted pursuant to this 
        section and the penalties for noncompliance;
          (10) establish appropriate administrative, technical, 
        and physical safeguards to insure the security and 
        confidentiality of records and to protect against any 
        anticipated threats or hazards to their security or 
        integrity which could result in substantial harm, 
        embarrassment, inconvenience, or unfairness to any 
        individual on whom information is maintained;
          (11) at least 30 days prior to publication of 
        information under paragraph (4)(D) of this subsection, 
        publish in the Federal Register notice of any new use 
        or intended use of the information in the system, and 
        provide an opportunity for interested persons to submit 
        written data, views, or arguments to the agency; and
          (12) if such agency is a recipient agency or a source 
        agency in a matching program with a non-Federal agency, 
        with respect to any establishment or revision of a 
        matching program, at least 30 days prior to conducting 
        such program, publish in the Federal Register notice of 
        such establishment or revision.
  (f) Agency Rules.--In order to carry out the provisions of 
this section, each agency that maintains a system of records 
shall promulgate rules, in accordance with the requirements 
(including general notice) of section 553 of this title, which 
shall--
          (1) establish procedures whereby an individual can be 
        notified in response to his request if any system of 
        records named by the individual contains a record 
        pertaining to him;
          (2) define reasonable times, places, and requirements 
        for identifying an individual who requests his record 
        or information pertaining to him before the agency 
        shall make the record or information available to the 
        individual;
          (3) establish procedures for the disclosure to an 
        individual upon his request of his record or 
        information pertaining to him, including special 
        procedure, if deemed necessary, for the disclosure to 
        an individual of medical records, including 
        psychological records, pertaining to him;
          (4) establish procedures for reviewing a request from 
        an individual concerning the amendment of any record or 
        information pertaining to the individual, for making a 
        determination on the request, for an appeal within the 
        agency of an initial adverse agency determination, and 
        for whatever additional means may be necessary for each 
        individual to be able to exercise fully his rights 
        under this section; and
          (5) establish fees to be charged, if any, to any 
        individual for making copies of his record, excluding 
        the cost of any search for and review of the record.
The Office of the Federal Register shall biennially compile and 
publish the rules promulgated under this subsection and agency 
notices published under subsection (e)(4) of this section in a 
form available to the public at low cost.
  (g)(1) Civil Remedies.--Whenever any agency--
          (A) makes a determination under subsection (d)(3) of 
        this section not to amend an individual's record in 
        accordance with his request, or fails to make such 
        review in conformity with that subsection;
          (B) refuses to comply with an individual request 
        under subsection (d)(1) of this section;
          (C) fails to maintain any record concerning any 
        individual with such accuracy, relevance, timeliness, 
        and completeness as is necessary to assure fairness in 
        any determination relating to the qualifications, 
        character, rights, or opportunities of, or benefits to 
        the individual that may be made on the basis of such 
        record, and consequently a determination is made which 
        is adverse to the individual; or
          (D) fails to comply with any other provision of this 
        section, or any rule promulgated thereunder, in such a 
        way as to have an adverse effect on an individual,
the individual may bring a civil action against the agency, and 
the district courts of the United States shall have 
jurisdiction in the matters under the provisions of this 
subsection.
  (2)(A) In any suit brought under the provisions of subsection 
(g)(1)(A) of this section, the court may order the agency to 
amend the individual's record in accordance with his request or 
in such other way as the court may direct. In such a case the 
court shall determine the matter de novo.
  (B) The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred in 
any case under this paragraph in which the complainant has 
substantially prevailed.
  (3)(A) In any suit brought under the provisions of subsection 
(g)(1)(B) of this section, the court may enjoin the agency from 
withholding the records and order the production to the 
complainant of any agency records improperly withheld from him. 
In such a case the court shall determine the matter de novo, 
and may examine the contents of any agency records in camera to 
determine whether the records or any portion thereof may be 
withheld under any of the exemptions set forth in subsection 
(k) of this section, and the burden is on the agency to sustain 
its action.
  (B) The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred in 
any case under this paragraph in which the complainant has 
substantially prevailed.
  (4) In any suit brought under the provisions of subsection 
(g)(1)(C) or (D) of this section in which the court determines 
that the agency acted in a manner which was intentional or 
willful, the United States shall be liable to the individual in 
an amount equal to the sum of--
          (A) actual damages sustained by the individual as a 
        result of the refusal or failure, but in no case shall 
        a person entitled to recovery receive less than the sum 
        of $1,000; and
          (B) the costs of the action together with reasonable 
        attorney fees as determined by the court.
  (5) An action to enforce any liability created under this 
section may be brought in the district court of the United 
States in the district in which the complainant resides, or has 
his principal place of business, or in which the agency records 
are situated, or in the District of Columbia, without regard to 
the amount in controversy, within two years from the date on 
which the cause of action arises, except that where an agency 
has materially and willfully misrepresented any information 
required under this section to be disclosed to an individual 
and the information so misrepresented is material to 
establishment of the liability of the agency to the individual 
under this section, the action may be brought at any time 
within two years after discovery by the individual of the 
misrepresentation. Nothing in this section shall be construed 
to authorize any civil action by reason of any injury sustained 
as the result of a disclosure of a record prior to September 
27, 1975.
  (h) Rights of Legal Guardians.--For the purposes of this 
section, the parent of any minor, or the legal guardian of any 
individual who has been declared to be incompetent due to 
physical or mental incapacity or age by a court of competent 
jurisdiction, may act on behalf of the individual.
  (i)(1) Criminal Penalties.--Any officer or employee of an 
agency, who by virtue of his employment or official position, 
has possession of, or access to, agency records which contain 
individually identifiable information the disclosure of which 
is prohibited by this section or by rules or regulations 
established thereunder, and who knowing that disclosure of the 
specific material is so prohibited, willfully discloses the 
material in any manner to any person or agency not entitled to 
receive it, shall be guilty of a misdemeanor and fined not more 
than $5,000.
  (2) Any officer or employee of any agency who willfully 
maintains a system of records without meeting the notice 
requirements of subsection (e)(4) of this section shall be 
guilty of a misdemeanor and fined not more than $5,000.
  (3) Any person who knowingly and willfully requests or 
obtains any record concerning an individual from an agency 
under false pretenses shall be guilty of a misdemeanor and 
fined not more than $5,000.
  (j) General Exemptions.--The head of any agency may 
promulgate rules, in accordance with the requirements 
(including general notice) of sections 553(b)(1), (2), and (3), 
(c), and (e) of this title, to exempt any system of records 
within the agency from any part of this section except 
subsections (b), (c)(1) and (2), (e)(4)(A) through (F), (e) 
(6), (7), (9), (10), and (11), and (i) if the system of records 
is--
          (1) maintained by the Central Intelligence Agency; or
          (2) maintained by an agency or component thereof 
        which performs as its principal function any activity 
        pertaining to the enforcement of criminal laws, 
        including police efforts to prevent, control, or reduce 
        crime or to apprehend criminals, and the activities of 
        prosecutors, courts, correctional, probation, pardon, 
        or parole authorities, and which consists of (A) 
        information compiled for the purpose of identifying 
        individual criminal offenders and alleged offenders and 
        consisting only of identifying data and notations of 
        arrests, the nature and disposition of criminal 
        charges, sentencing, confinement, release, and parole 
        and probation status; (B) information compiled for the 
        purpose of a criminal investigation, including reports 
        of informants and investigators, and associated with an 
        identifiable individual; or (C) reports identifiable to 
        an individual compiled at any stage of the process of 
        enforcement of the criminal laws from arrest or 
        indictment through release from supervision.
At the time rules are adopted under this subsection, the agency 
shall include in the statement required under section 553(c) of 
this title, the reasons why the system of records is to be 
exempted from a provision of this section.
  (k) Specific Exemptions.--The head of any agency may 
promulgate rules, in accordance with the requirements 
(including general notice) of sections 553(b)(1), (2), and (3), 
(c), and (e) of this title, to exempt any system of records 
within the agency from subsections (c)(3), (d), (e)(1), (e)(4) 
(G), (H), and (I) and (f) of this section if the system of 
records is--
          (1) subject to the provisions of section 552(b)(1) of 
        this title;
          (2) investigatory material compiled for law 
        enforcement purposes, other than material within the 
        scope of subsection (j)(2) of this section: Provided, 
        however, That if any individual is denied any right, 
        privilege, or benefit that he would otherwise be 
        entitled by Federal law, or for which he would 
        otherwise be eligible, as a result of the maintenance 
        of such material, such material shall be provided to 
        such individual, except to the extent that the 
        disclosure of such material would reveal the identity 
        of a source who furnished information to the Government 
        under an express promise that the identity of the 
        source would be held in confidence, or, prior to the 
        effective date of this section, under an implied 
        promise that the identity of the source would be held 
        in confidence;
          (3) maintained in connection with providing 
        protective services to the President of the United 
        States or other individuals pursuant to section 3056 of 
        title 18;
          (4) required by statute to be maintained and used 
        solely as statistical records;
          (5) investigatory material compiled solely for the 
        purpose of determining suitability, eligibility, or 
        qualifications for Federal civilian employment, 
        military service, Federal contracts, or access to 
        classified information, but only to the extent that the 
        disclosure of such material would reveal the identity 
        of a source who furnished information to the Government 
        under an express promise that the identity of the 
        source would be held in confidence, or, prior to the 
        effective date of this section, under an implied 
        promise that the identity of the source would be held 
        in confidence;
          (6) testing or examination material used solely to 
        determine individual qualifications for appointment or 
        promotion in the Federal service the disclosure of 
        which would compromise the objectivity or fairness of 
        the testing or examination process; or
          (7) evaluation material used to determine potential 
        for promotion in the armed services, but only to the 
        extent that the disclosure of such material would 
        reveal the identity of a source who furnished 
        information to the Government under an express promise 
        that the identity of the source would be held in 
        confidence, or, prior to the effective date of this 
        section, under an implied promise that the identity of 
        the source would be held in confidence.
At the time rules are adopted under this subsection, the agency 
shall include in the statement required under section 553(c) of 
this title, the reasons why the system of records is to be 
exempted from a provision of this section.
  (l)(1) Archival Records.--Each agency record which is 
accepted by the Archivist of the United States for storage, 
processing, and servicing in accordance with section 3103 of 
title 44 shall, for the purposes of this section, be considered 
to be maintained by the agency which deposited the record and 
shall be subject to the provisions of this section. The 
Archivist of the United States shall not disclose the record 
except to the agency which maintains the record, or under rules 
established by that agency which are not inconsistent with the 
provisions of this section.
  (2) Each agency record pertaining to an identifiable 
individual which was transferred to the National Archives of 
the United States as a record which has sufficient historical 
or other value to warrant its continued preservation by the 
United States Government, prior to the effective date of this 
section, shall, for the purposes of this section, be considered 
to be maintained by the National Archives and shall not be 
subject to the provisions of this section, except that a 
statement generally describing such records (modeled after the 
requirements relating to records subject to subsections (e)(4) 
(A) through (G) of this section) shall be published in the 
Federal Register.
  (3) Each agency record pertaining to an identifiable 
individual which is transferred to the National Archives of the 
United States as a record which has sufficient historical or 
other value to warrant its continued preservation by the United 
States Government, on or after the effective date of this 
section, shall, for the purposes of this section, be considered 
to be maintained by the National Archives and shall be exempt 
from the requirements of this section except subsections (e)(4) 
(A) through (G) and (e)(9) of this section.
  (m)(1) Government Contractors.--When an agency provides by a 
contract for the operation by or on behalf of the agency of a 
system of records to accomplish an agency function, the agency 
shall, consistent with its authority, cause the requirements of 
this section to be applied to such system. For purposes of 
subsection (i) of this section any such contractor and any 
employee of such contractor, if such contract is agreed to on 
or after the effective date of this section, shall be 
considered to be an employee of an agency.
  (2) A consumer reporting agency to which a record is 
disclosed under section 3711(f) of title 31 shall not be 
considered a contractor for the purposes of this section.
  (n) Mailing Lists.--An individual's name and address may not 
be sold or rented by an agency unless such action is 
specifically authorized by law. This provision shall not be 
construed to require the withholding of names and addresses 
otherwise permitted to be made public.
  (o) Matching Agreements.--(1) No record which is contained in 
a system of records may be disclosed to a recipient agency or 
non-Federal agency for use in a computer matching program 
except pursuant to a written agreement between the source 
agency and the recipient agency or non-Federal agency 
specifying--
          (A) the purpose and legal authority for conducting 
        the program;
          (B) the justification for the program and the 
        anticipated results, including a specific estimate of 
        any savings;
          (C) a description of the records that will be 
        matched, including each data element that will be used, 
        the approximate number of records that will be matched, 
        and the projected starting and completion dates of the 
        matching program;
          (D) procedures for providing individualized notice at 
        the time of application, and notice periodically 
        thereafter as directed by the Data Integrity Board of 
        such agency (subject to guidance provided by the 
        Director of the Office of Management and Budget 
        pursuant to subsection (v)), to--
                  (i) applicants for and recipients of 
                financial assistance or payments under Federal 
                benefit programs, and
                  (ii) applicants for and holders of positions 
                as Federal personnel, that any information 
                provided by such applicants, recipients, 
                holders, and individuals may be subject to 
                verification through matching programs;
          (E) procedures for verifying information produced in 
        such matching program as required by subsection (p);
          (F) procedures for the retention and timely 
        destruction of identifiable records created by a 
        recipient agency or non-Federal agency in such matching 
        program;
          (G) procedures for ensuring the administrative, 
        technical, and physical security of the records matched 
        and the results of such programs;
          (H) prohibitions on duplication and redisclosure of 
        records provided by the source agency within or outside 
        the recipient agency or the non-Federal agency, except 
        where required by law or essential to the conduct of 
        the matching program;
          (I) procedures governing the use by a recipient 
        agency or non-Federal agency of records provided in a 
        matching program by a source agency, including 
        procedures governing return of the records to the 
        source agency or destruction of records used in such 
        program;
          (J) information on assessments that have been made on 
        the accuracy of the records that will be used in such 
        matching program; and
          (K) that the Comptroller General may have access to 
        all records of a recipient agency or a non-Federal 
        agency that the Comptroller General deems necessary in 
        order to monitor or verify compliance with the 
        agreement.
  (2)(A) A copy of each agreement entered into pursuant to 
paragraph (1) shall--
          (i) be transmitted to the Committee on Governmental 
        Affairs of the Senate and the Committee on Government 
        Operations of the House of Representatives; and
          (ii) be available upon request to the public.
  (B) No such agreement shall be effective until 30 days after 
the date on which such a copy is transmitted pursuant to 
subparagraph (A)(i).
  (C) Such an agreement shall remain in effect only for such 
period, not to exceed 18 months, as the Data Integrity Board of 
the agency determines is appropriate in light of the purposes, 
and length of time necessary for the conduct, of the matching 
program.
  (D) Within 3 months prior to the expiration of such an 
agreement pursuant to subparagraph (C), the Data Integrity 
Board of the agency may, without additional review, renew the 
matching agreement for a current, ongoing matching program for 
not more than one additional year if--
          (i) such program will be conducted without any 
        change; and
          (ii) each party to the agreement certifies to the 
        Board in writing that the program has been conducted in 
        compliance with the agreement.
  (p) Verification and Opportunity To Contest Findings.--(1) In 
order to protect any individual whose records are used in a 
matching program, no recipient agency, non-Federal agency, or 
source agency may suspend, terminate, reduce, or make a final 
denial of any financial assistance or payment under Federal 
benefit program to such individual, or take other adverse 
action against such individual, as a result of information 
produced by such matching program, until--
          (A)(i) the agency has independently verified the 
        information; or
          (ii) the Data Integrity Board of the agency, or in 
        the case of a non-Federal agency the Data Integrity 
        Board of the source agency determines in accordance 
        with guidance issued by the Director of the Office of 
        Management and Budget that--
                  (I) the information is limited to 
                identification and amount of benefits paid by 
                the source agency under a Federal benefit 
                program; and
                  (II) there is a high degree of confidence 
                that the information provided to the recipient 
                agency is accurate;
          (B) the individual receives a notice from the agency 
        containing a statement of its findings and informing 
        the individual of the opportunity to contest such 
        findings; and
          (C)(i) the expiration of any time period established 
        for the program by statute or regulation for the 
        individual to respond to that notice; or
          (ii) in the case of a program for which no such 
        period is established, the end of the 30-day period 
        beginning on the date on which notice under 
        subparagraph (B) is mailed or otherwise provided to the 
        individual.
  (2) Independent verification referred to in paragraph (1) 
requires investigation and confirmation of specific information 
relating to an individual that is used as a basis for an 
adverse action against the individual, including where 
applicable investigation and confirmation of--
          (A) the amount of any asset or income involved;
          (B) whether such individual actually has or had 
        access to such asset or income for such individual's 
        own use; and
          (C) the period or periods when the individual 
        actually had such asset or income.
  (3) Notwithstanding paragraph (1), an agency may take any 
appropriate action otherwise prohibited by such paragraph if 
the agency determines that the public health or public safety 
may be adversely affected or significantly threatened during 
any notice period required by such paragraph.
  (q) Sanctions.--(1) Notwithstanding any other provision of 
law, no source agency may disclose any record which is 
contained in a system of records to a recipient agency or non-
Federal agency for a matching program if such source agency has 
reason to believe that the requirements of subsection (p), or 
any matching agreement entered into pursuant to subsection (o), 
or both, are not being met by such recipient agency.
  (2) No source agency may renew a matching agreement unless--
          (A) the recipient agency or non-Federal agency has 
        certified that it has complied with the provisions of 
        that agreement; and
          (B) the source agency has no reason to believe that 
        the certification is inaccurate.
  (r) Report on New Systems and Matching Programs.--Each agency 
that proposes to establish or make a significant change in a 
system of records or a matching program shall provide adequate 
advance notice of any such proposal (in duplicate) to the 
Committee on Government Operations of the House of 
Representatives, the Committee on Governmental Affairs of the 
Senate, and the Office of Management and Budget in order to 
permit an evaluation of the probable or potential effect of 
such proposal on the privacy or other rights of individuals.
  (s) Biennial Report.--The President shall biennially submit 
to the Speaker of the House of Representatives and the 
President pro tempore of the Senate a report--
          (1) describing the actions of the Director of the 
        Office of Management and Budget pursuant to section 6 
        of the Privacy Act of 1974 during the preceding 2 
        years;
          (2) describing the exercise of individual rights of 
        access and amendment under this section during such 
        years;
          (3) identifying changes in or additions to systems of 
        records;
          (4) containing such other information concerning 
        administration of this section as may be necessary or 
        useful to the Congress in reviewing the effectiveness 
        of this section in carrying out the purposes of the 
        Privacy Act of 1974.
  (t) Effect of Other Laws.--(1) No agency shall rely on any 
exemption contained in section 552 of this title to withhold 
from an individual any record which is otherwise accessible to 
such individual under the provisions of this section.
  (2) No agency shall rely on any exemption in this section to 
withhold from an individual any record which is otherwise 
accessible to such individual under the provisions of section 
552 of this title.
  (u) Data Integrity Boards.--(1) Every agency conducting or 
participating in a matching program shall establish a Data 
Integrity Board to oversee and coordinate among the various 
components of such agency the agency's implementation of this 
section.
  (2) Each Data Integrity Board shall consist of senior 
officials designated by the head of the agency, and shall 
include any senior official designated by the head of the 
agency as responsible for implementation of this section, and 
the inspector general of the agency, if any. The inspector 
general shall not serve as chairman of the Data Integrity 
Board.
  (3) Each data integrity board.--
          (A) shall review, approve, and maintain all written 
        agreements for receipt or disclosure of agency records 
        for matching programs to ensure compliance with 
        subsection (o), and all relevant statutes, regulations, 
        and guidelines;
          (B) shall review all matching programs in which the 
        agency has participated during the year, either as a 
        source agency or recipient agency, determine compliance 
        with applicable laws, regulations, guidelines, and 
        agency agreements, and assess the costs and benefits of 
        such programs;
          (C) shall review all recurring matching programs in 
        which the agency has participated during the year, 
        either as a source agency or recipient agency, for 
        continued justification for such disclosures;
          (D) shall compile an annual report, which shall be 
        submitted to the head of the agency and the Office of 
        Management and Budget and made available to the public 
        on request, describing the matching activities of the 
        agency, including--
                  (i) matching programs in which the agency has 
                participated as a source agency or recipient 
                agency;
                  (ii) matching agreements proposed under 
                subsection (o) that were disapproved by the 
                Board;
                  (iii) any changes in membership or structure 
                of the Board in the preceding year;
                  (iv) the reasons for any waiver of the 
                requirement in paragraph (4) of this section 
                for completion and submission of a cost-benefit 
                analysis prior to the approval of a matching 
                program;
                  (v) any violations of matching agreements 
                that have been alleged or identified and any 
                corrective action taken; and
                  (vi) any other information required by the 
                Director of the Office of Management and Budget 
                to be included in such report;
          (E) shall serve as a clearinghouse for receiving and 
        providing information on the accuracy, completeness, 
        and reliability of records used in matching programs;
          (F) shall provide interpretation and guidance to 
        agency components and personnel on the requirements of 
        this section for matching programs;
          (G) shall review agency recordkeeping and disposal 
        policies and practices for matching programs to assure 
        compliance with this section; and
          (H) may review and report on any agency matching 
        activities that are not matching programs.
  (4)(A) Except as provided in subparagraphs (B) and (C), a 
Data Integrity Board shall not approve any written agreement 
for a matching program unless the agency has completed and 
submitted to such Board a cost-benefit analysis of the proposed 
program and such analysis demonstrates that the program is 
likely to be cost effective.
  (B) The Board may waive the requirements of subparagraph (A) 
of this paragraph if it determines in writing, in accordance 
with guidelines prescribed by the Director of the Office of 
Management and Budget, that a cost-benefit analysis is not 
required.
  (C) A cost-benefit analysis shall not be required under 
subparagraph (A) prior to the initial approval of a written 
agreement for a matching program that is specifically required 
by statute. Any subsequent written agreement for such a program 
shall not be approved by the Data Integrity Board unless the 
agency has submitted a cost-benefit analysis of the program as 
conducted under the preceding approval of such agreement.
  (5)(A) If a matching agreement is disapproved by a Data 
Integrity Board, any party to such agreement may appeal the 
disapproval to the Director of the Office of Management and 
Budget. Timely notice of the filing of such an appeal shall be 
provided by the Director of the Office of Management and Budget 
to the Committee on Governmental Affairs of the Senate and the 
Committee on Government Operations of the House of 
Representatives.
  (B) The Director of the Office of Management and Budget may 
approve a matching agreement notwithstanding the disapproval of 
a Data Integrity Board if the Director determines that--
          (i) the matching program will be consistent with all 
        applicable legal, regulatory, and policy requirements;
          (ii) there is adequate evidence that the matching 
        agreement will be cost-effective; and
          (iii) the matching program is in the public interest.
  (C) The decision of the Director to approve a matching 
agreement shall not take effect until 30 days after it is 
reported to committees described in subparagraph (A).
  (D) If the Data Integrity Board and the Director of the 
Office of Management and Budget disapprove a matching program 
proposed by the inspector general of an agency, the inspector 
general may report the disapproval to the head of the agency 
and to the Congress.
  (6) The Director of the Office of Management and Budget 
shall, annually during the first 3 years after the date of 
enactment of this subsection and biennially thereafter, 
consolidate in a report to the Congress the information 
contained in the reports from the various Data Integrity Boards 
under paragraph (3)(D). Such report shall include detailed 
information about costs and benefits of matching programs that 
are conducted during the period covered by such consolidated 
report, and shall identify each waiver granted by a Data 
Integrity Board of the requirement for completion and 
submission of a cost-benefit analysis and the reasons for 
granting the waiver.
  (7) In the reports required by paragraphs (3)(D) and (6), 
agency matching activities that are not matching programs may 
be reported on an aggregate basis, if and to the extent 
necessary to protect ongoing law enforcement or 
counterintelligence investigations.
  (v) Office of Management and Budget Responsibilities.--The 
Director of the Office of Management and Budget shall--
          (1) develop and, after notice and opportunity for 
        public comment, prescribe guidelines and regulations 
        for the use of agencies in implementing the provisions 
        of this section; and
          (2) provide continuing assistance to and oversight of 
        the implementation of this section by agencies.
          * * * * * * *
  The following list shows the section of 5 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
                 5 U.S.C.                    Requirements or Guidelines 
------------------------------------------------------------------------
551 et seq................................  14 C.F.R. 201, 211; 16      
                                             C.F.R. 1025; 18 C.F.R. 281,
                                             286; 22 C.F.R. 171; 29     
                                             C.F.R. 1910; 40 C.F.R. 124;
                                             43 C.F.R. 4, 2650          
551-559...................................  29 C.F.R. 511; 31 C.F.R. 8, 
                                             10                         
51-558....................................  21 C.F.R. 10, 12, 13        
551-557...................................  18 C.F.R. 3, 6, 8, 36, 154, 
                                             375, 382, 385, 388; 46     
                                             C.F.R. 501                 
551-553...................................  44 C.F.R. 18                
551-552a..................................  32 C.F.R. 518               
551.......................................  17 C.F.R. 10; 28 C.F.R. 540;
                                             29 C.F.R. 580; 44 C.F.R. 1;
                                             46 C.F.R. 502; 49 C.F.R.   
                                             1003                       
552-556...................................  29 C.F.R. 98                
552-552a..................................  48 C.F.R. 2424              
552a......................................  1 C.F.R. 304, 425, 455; 5   
                                             C.F.R. 297, 736, 831, 841, 
                                             1001, 1205, 1261, 1302,    
                                             1410, 1630, 1703, 1830,    
                                             2100, 2412, 2504; 7 C.F.R. 
                                             1, 661; 18 C.F.R. 103; 10  
                                             C.F.R. 9, 1008, 1705; 11   
                                             C.F.R. 1; 12 C.F.R. 261a,  
                                             310, 405, 411, 503, 603,   
                                             790, 792, 909, 1403, 1503, 
                                             1616; 13 C.F.R. 102; 14    
                                             C.F.R. 1206, 1212; 15      
                                             C.F.R. 4b, 2005; 16 C.F.R. 
                                             1014, 1016; 17 C.F.R. 145- 
                                             147, 200; 18 C.F.R. 701,   
                                             1301; 19 C.F.R. 201; 20    
                                             C.F.R. 401, 422, 903; 21   
                                             C.F.R. 21, 291; 22 C.F.R.  
                                             171, 215, 308, 505, 603,   
                                             707, 1003, 1101, 1202,     
                                             1301, 1507; 24 C.F.R. 16,  
                                             2003; 25 C.F.R. 515; 27    
                                             C.F.R. 179; 28 C.F.R. 16,  
                                             30, 50, 540, 700; 29 C.F.R.
                                             70a, 102, 1410, 1611, 1913,
                                             2400, 2607, 2705; 31 C.F.R.
                                             1; 32 C.F.R. 310-323, 505, 
                                             701, 806b, 1665, 1901,     
                                             2102; 34 C.F.R. 5b; 35     
                                             C.F.R. 10, 1202; 36 C.F.R. 
                                             903, 1121, 1202; 38 C.F.R. 
                                             1, 19; 39 C.F.R. 262, 266, 
                                             3003; 40 C.F.R. 13, 16,    
                                             1516; 41 C.F.R. 51-9, 105- 
                                             64; 42 C.F.R. 401; 43      
                                             C.F.R. 2; 44 C.F.R. 6; 45  
                                             C.F.R. 5b, 30, 504, 613,   
                                             705, 1115, 1224, 1705,     
                                             1800, 2106; 46 C.F.R. 503; 
                                             49 C.F.R. 10, 802; 50      
                                             C.F.R. 501                 
------------------------------------------------------------------------

              TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

          * * * * * * *

                APPENDIX 3. INSPECTOR GENERAL ACT OF 1978

SEC. 1. SHORT TITLE.

  That this Act be cited as the ``Inspector General Act of 
1978''.

SEC. 2. PURPOSE AND ESTABLISHMENT OF OFFICES OF INSPECTOR GENERAL; 
                    DEPARTMENTS AND AGENCIES INVOLVED.

  In order to create independent and objective units--
          (1) to conduct and supervise audits and 
        investigations relating to the programs and operations 
        of the establishments listed in section 11(2);
          (2) to provide leadership and coordination and 
        recommend policies for activities designed (A) to 
        promote economy, efficiency, and effectiveness in the 
        administration of, and (B) to prevent and detect fraud 
        and abuse in, such programs and operations; and
          (3) to provide a means for keeping the head of the 
        establishment and the Congress fully and currently 
        informed about problems and deficiencies relating to 
        the administration of such programs and operations and 
        the necessity for and progress of corrective action;

SEC. 3. APPOINTMENT OF INSPECTOR GENERAL; SUPERVISION; REMOVAL; 
                    POLITICAL ACTIVITIES; APPOINTMENT OF ASSISTANT 
                    INSPECTOR GENERAL FOR AUDITING AND ASSISTANT 
                    INSPECTOR GENERAL FOR INVESTIGATIONS.

  (a) There shall be at the head of each Office an Inspector 
General who shall be appointed by the President, by and with 
the advice and consent of the Senate, 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. Each Inspector General shall report to and be 
under the general supervision of the head of the establishment 
involved or, to the extent such authority is delegated, the 
officer next in rank below such head, but shall not report to, 
or be subject to supervision by, any other officer of such 
establishment. Neither the head of the establishment nor the 
officer next in rank below such head shall prevent or prohibit 
the Inspector General from initiating, carrying out, or 
completing any audit or investigation, or from issuing any 
subpena during the course of any audit or investigation.
  (b) An Inspector General may be removed from office by the 
President. The President shall communicate the reasons for any 
such removal to both Houses of Congress.
  (c) For the purposes of section 7324 of Title 5, United 
States Code, no Inspector General shall be considered to be an 
employee who determines policies to be pursued by the United 
States in the nationwide administration of Federal laws.
  (d) Each Inspector General shall, in accordance with 
applicable laws and regulations governing the civil service--
          (1) appoint an Assistant Inspector General for 
        Auditing who shall have the responsibility for 
        supervising the performance of auditing activities 
        relating to programs and operations of the 
        establishment, and
          (2) appoint an Assistant Inspector General for 
        Investigations who shall have the responsibility for 
        supervising the performance of investigative activities 
        relating to such programs and operations.

SEC. 4. DUTIES AND RESPONSIBILITIES; REPORT OF CRIMINAL VIOLATIONS TO 
                    ATTORNEY GENERAL.

  (a) It shall be the duty and responsibility of each Inspector 
General, with respect to the establishment within which his 
office is established--
          (1) to provide policy direction for and to conduct, 
        supervise, and coordinate audits and investigations 
        relating to the programs and operations of such 
        establishment;
          (2) to review existing and proposed legislation and 
        regulations relating to programs and operations of such 
        establishment and to make recommendations in the 
        semiannual reports required by section 5(a) concerning 
        the impact of such legislation or regulations on the 
        economy and efficiency in the administration of 
        programs and operations administered or financed by 
        such establishment or the prevention and detection of 
        fraud and abuse in such programs and operations;
          (3) to recommend policies for, and to conduct, 
        supervise, or coordinate other activities carried out 
        or financed by such establishment for the purpose of 
        promoting economy and efficiency in the administration 
        of, or preventing and detecting fraud and abuse in, its 
        programs and operations;
          (4) to recommend policies for, and to conduct, 
        supervise, or coordinate relationships between such 
        establishment and other Federal agencies, State and 
        local governmental agencies, and non-governmental 
        entities with respect to (A) all matters relating to 
        the promotion of economy and efficiency in the 
        administration of, or the prevention and detection of 
        fraud and abuse in, programs and operations 
        administered or financed by such establishment, or (B) 
        the identification and prosecution of participants in 
        such fraud or abuse; and
          (5) to keep the head of such establishment and the 
        Congress fully and currently informed, by means of the 
        reports required by section 5 and otherwise, concerning 
        fraud and other serious problems, abuses, and 
        deficiencies relating to the administration of programs 
        and operations administered or financed by such 
        establishment, to recommend corrective action 
        concerning such problems, abuses, and deficiencies, and 
        to report on the progress made in implementing such 
        corrective action.
  (b)(1) In carrying out the responsibilities specified in 
subsection (a)(1), each Inspector General shall--
          (A) comply with standards established by the 
        Comptroller General of the United States for audits of 
        Federal establishments, organizations, programs, 
        activities, and functions;
          (B) establish guidelines for determining when it 
        shall be appropriate to use non-Federal auditors; and
          (C) take appropriate steps to assure that any work 
        performed by non-Federal auditors complies with the 
        standards established by the Comptroller General as 
        described in paragraph (1).
  (2) For purposes of determining compliance with paragraph 
(1)(A) with respect to whether internal quality controls are in 
place and operating and whether established audit standards, 
policies, and procedures are being followed by Offices of 
Inspector General of establishments defined under section 
11(2), Offices of Inspector General of designated Federal 
entities defined under section 8F(a)(2), and any audit office 
established within a Federal entity defined under section 
8F(a)(1), reviews shall be performed exclusively by an audit 
entity in the Federal Government, including the General 
Accounting Office or the Office of Inspector General of each 
establishment defined under section 11(2), or the Office of 
Inspector General of each designated Federal entity defined 
under section 8F(a)(2).
  (c) In carrying out the duties and responsibilities 
established under this Act, each Inspector General shall give 
particular regard to the activities of the Comptroller General 
of the United States with a view toward avoiding duplication 
and insuring effective coordination and cooperation.
  (d) In carrying out the duties and responsibilities 
established under this Act, each Inspector General shall report 
expeditiously to the Attorney General whenever the Inspector 
General has reasonable grounds to believe there has been a 
violation of Federal criminal law.

SEC. 5. SEMIANNUAL REPORTS; TRANSMITTAL TO CONGRESS; AVAILABILITY TO 
                    PUBLIC; IMMEDIATE REPORT ON SERIOUS OR FLAGRANT 
                    PROBLEMS.

  (a) Each Inspector General shall, not later than April 30 and 
October 31 of each year, prepare semiannual reports summarizing 
the activities of the Office during the immediately preceding 
six-month periods ending March 31 and September 30. Such 
reports shall include, but need not be limited to--
          (1) a description of significant problems, abuses, 
        and deficiencies relating to the administration of 
        programs and operations of such establishment disclosed 
        by such activities during the reporting period;
          (2) a description of the recommendations for 
        corrective action made by the Office during the 
        reporting period with respect to significant problems, 
        abuses, or deficiencies identified pursuant to 
        paragraph (1);
          (3) an identification of each significant 
        recommendation described in previous semiannual reports 
        on which corrective action has not been completed;
          (4) a summary of matters referred to prosecutive 
        authorities and the prosecutions and convictions which 
        have resulted;
          (5) a summary of each report made to the head of the 
        establishment under section 6(b)(2) during the 
        reporting period;
          (6) a listing, subdivided according to subject 
        matter, of each audit report issued by the Office 
        during the reporting period and for each audit report, 
        where applicable, the total dollar value of questioned 
        costs (including a separate category for the dollar 
        value of unsupported costs) and the dollar value of 
        recommendations that funds be put to better use;
          (7) a summary of each particularly significant 
        report;
          (8) statistical tables showing the total number of 
        audit reports and the total dollar value of questioned 
        costs (including a separate category for the dollar 
        value of unsupported costs), for audit reports--
                  (A) for which no management decision had been 
                made by the commencement of the reporting 
                period;
                  (B) which were issued during the reporting 
                period;
                  (C) for which a management decision was made 
                during the reporting period, including--
                          (i) the dollar value of disallowed 
                        costs; and
                          (ii) the dollar value of costs not 
                        disallowed; and
                  (D) for which no management decision has been 
                made by the end of the reporting period;
          (9) statistical tables showing the total number of 
        audit reports and the dollar value of recommendations 
        that funds be put to better use by management, for 
        audit reports--
                  (A) for which no management decision had been 
                made by the commencement of the reporting 
                period;
                  (B) which were issued during the reporting 
                period;
                  (C) for which a management decision was made 
                during the reporting period, including--
                          (i) the dollar value of 
                        recommendations that were agreed to by 
                        management; and
                          (ii) the dollar value of 
                        recommendations that were not agreed to 
                        by management; and
                  (D) for which no management decision has been 
                made by the end of the reporting period;
          (10) a summary of each audit report issued before the 
        commencement of the reporting period for which no 
        management decision has been made by the end of the 
        reporting period (including the date and title of each 
        such report), an explanation of the reasons such 
        management decision has not been made, and a statement 
        concerning the desired timetable for achieving a 
        management decision on each such report;
          (11) a description and explanation of the reasons for 
        any significant revised management decision made during 
        the reporting period; and
          (12) information concerning any significant 
        management decision with which the Inspector General is 
        in disagreement.
  (b) Semiannual reports of each Inspector General shall be 
furnished to the head of the establishment involved not later 
than April 30 and October 31 of each year and shall be 
transmitted by such head to the appropriate committees or 
subcommittees of the Congress within thirty days after receipt 
of the report, together with a report by the head of the 
establishment containing--
          (1) any comments such head determines appropriate;
          (2) statistical tables showing the total number of 
        audit reports and the dollar value of disallowed costs, 
        for audit reports--
                  (A) for which final action had not been taken 
                by the commencement of the reporting period;
                  (B) on which management decisions were made 
                during the reporting period;
                  (C) for which final action was taken during 
                the reporting period, including--
                          (i) the dollar value of disallowed 
                        costs that were recovered by management 
                        through collection, offset, property in 
                        lieu of cash, or otherwise; and
                          (ii) the dollar value of disallowed 
                        costs that were written off by 
                        management; and
                  (D) for which no final action has been taken 
                by the end of the reporting period;
          (3) statistical tables showing the total number of 
        audit reports and the dollar value of recommendations 
        that funds be put to better use by management agreed to 
        in a management decision, for audit reports--
                  (A) for which final action had not been taken 
                by the commencement of the reporting period;
                  (B) on which management decisions were made 
                during the reporting period;
                  (C) for which final action was taken during 
                the reporting period, including--
                          (i) the dollar value of 
                        recommendations that were actually 
                        completed; and
                          (ii) the dollar value of 
                        recommendations that management has 
                        subsequently concluded should not or 
                        could not be implemented or completed; 
                        and
                  (D) for which no final action has been taken 
                by the end of the reporting period; and
          (4) a statement with respect to audit reports on 
        which management decisions have been made but final 
        action has not been taken, other than audit reports on 
        which a management decision was made within the 
        preceding year, containing--
                  (A) a list of such audit reports and the date 
                each such report was issued;
                  (B) the dollar value of disallowed costs for 
                each report;
                  (C) the dollar value of recommendations that 
                funds be put to better use agreed to by 
                management for each report; and
                  (D) an explanation of the reasons final 
                action has not been taken with respect to each 
                such audit report,
        except that such statement may exclude such audit 
        reports that are under formal administrative or 
        judicial appeal or upon which management of an 
        establishment has agreed to pursue a legislative 
        solution, but shall identify the number of reports in 
        each category so excluded.
  (c) Within sixty days of the transmission of the semiannual 
reports of each Inspector General to the Congress, the head of 
each establishment shall make copies of such report available 
to the public upon request and at a reasonable cost. Within 60 
days after the transmission of the semiannual reports of each 
establishment head to the Congress, the head of each 
establishment shall make copies of such report available to the 
public upon request and at a reasonable cost.
  (d) Each Inspector General shall report immediately to the 
head of the establishment involved whenever the Inspector 
General becomes aware of particularly serious or flagrant 
problems, abuses, or deficiencies relating to the 
administration of programs and operations of such 
establishment. The head of the establishment shall transmit any 
such report to the appropriate committees or subcommittees of 
Congress within seven calendar days, together with a report by 
the head of the establishment containing any comments such head 
deems appropriate.
  (e)(1) Nothing in this section shall be construed to 
authorize the public disclosure of information which is--
          (A) specifically prohibited from disclosure by any 
        other provision of law;
          (B) specifically required by Executive order to be 
        protected from disclosure in the interest of national 
        defense of national security or in the conduct of 
        foreign affairs; or
          (C) a part of an ongoing criminal investigation.
  (2) Notwithstanding paragraph (1)(C), any report under this 
section may be disclosed to the public in a form which includes 
information with respect to a part of an ongoing criminal 
investigation if such information has been included in a public 
record.
  (3) Except to the extent and in the manner provided under 
section 6103(f) of the Internal Revenue Code of 1986 [26 
U.S.C.A. Sec. 6103(f)], nothing in this section or in any other 
provision of this Act shall be construed to authorize or permit 
the withholding of information from the Congress, or from any 
committee or subcommittee thereof.
  (f) As used in this section--
          (1) the term ``questioned cost'' means a cost that is 
        questioned by the Office because of--
                  (A) an alleged violation of a provision of a 
                law, regulation, contract, grant, cooperative 
                agreement, or other agreement or document 
                governing the expenditure of funds;
                  (B) a finding that, at the time of the audit, 
                such cost is not supported by adequate 
                documentation; or
                  (C) a finding that the expenditure of funds 
                for the intended purpose is unnecessary or 
                unreasonable;
          (2) the term ``unsupported cost'' means a cost that 
        is questioned by the Office because the Office found 
        that, at the time of the audit, such cost is not 
        supported by adequate documentation;
          (3) the term ``disallowed cost'' means a questioned 
        cost that management, in a management decision, has 
        sustained or agreed should not be charged to the 
        Government;
          (4) the term ``recommendation that funds be put to 
        better use'' means a recommendation by the Office that 
        funds could be used more efficiently if management of 
        an establishment took actions to implement and complete 
        the recommendation, including--
                  (A) reductions in outlays;
                  (B) deobligation of funds from programs or 
                operations;
                  (C) withdrawal of interest subsidy costs on 
                loans or loan guarantees, insurance, or bonds;
                  (D) costs not incurred by implementing 
                recommended improvements related to the 
                operations of the establishment, a contractor 
                or grantee;
                  (E) avoidance of unnecessary expenditures 
                noted in preaward reviews of contract or grant 
                agreements; or
                  (F) any other savings which are specifically 
                identified;
          (5) the term ``management decision'' means the 
        evaluation by the management of an establishment of the 
        findings and recommendations included in an audit 
        report and the issuance of a final decision by 
        management concerning its response to such findings and 
        recommendations, including actions concluded to be 
        necessary; and
          (6) the term ``final action'' means--
                  (A) the completion of all actions that the 
                management of an establishment has concluded, 
                in its management decision, are necessary with 
                respect to the findings and recommendations 
                included in an audit report; and
                  (B) in the event that the management of an 
                establishment concludes no action is necessary, 
                final action occurs when a management decision 
                has been made.

                                  NOTE

               Prompt Resolution of Audit Recommendations

  Pub. L. 103-355, Title Vi, Sec. 6009, Oct. 13, 1994, 108 
Stat. 3367, provides that: ``Federal agencies shall resolve or 
take corrective action on all Office of Inspector General audit 
report findings within a maximum of six months after their 
issuance, or, in case of audits performed by non-Federal 
auditors, six months after receipt of the reports by the 
Federal Government.''

  [Note effective Oct. 13, 1994, except as otherwise provided, 
see section 10001 of Pub. L. 103-355, set out as a note under 
section 251 of Title 41, Public Contracts.]

SEC. 6. AUTHORITY OF INSPECTOR GENERAL; INFORMATION AND ASSISTANCE FROM 
                    FEDERAL AGENCIES; UNREASONABLE REFUSAL; OFFICE 
                    SPACE AND EQUIPMENT.

  (a) In addition to the authority otherwise provided by this 
Act, each Inspector General, in carrying out the provisions of 
this Act, is authorized--
          (1) to have access to all records, reports, audits, 
        reviews, documents, papers, recommendations, or other 
        material available to the applicable establishment 
        which relate to programs and operations with respect to 
        which that Inspector General has responsibilities under 
        this Act;
          (2) to make such investigations and reports relating 
        to the administration of the programs and operations of 
        the applicable establishment as are, in the judgment of 
        the Inspector General, necessary or desirable;
          (3) to request such information or assistance as may 
        be necessary for carrying out the duties and 
        responsibilities provided by this Act from any Federal, 
        State, or local governmental agency or unit thereof;
          (4) to require by subpoena the production of all 
        information, documents, reports, answers, records, 
        accounts, papers, and other data and documentary 
        evidence necessary in the performance of the functions 
        assigned by this Act, which subpoena, in the case of 
        contumacy or refusal to obey, shall be enforceable by 
        order of any appropriate United States district court: 
        Provided, That procedures other than subpoenas shall be 
        used by the Inspector General to obtain documents and 
        information from Federal agencies;
          (5) to administer to or take from any person an oath, 
        affirmation, or affidavit, whenever necessary in the 
        performance of the functions assigned by this Act, 
        which oath, affirmation, or affidavit when administered 
        or taken by or before an employee of an Office of 
        Inspector General designated by the Inspector General 
        shall have the same force and effect as if administered 
        or taken by or before an officer having a seal;
          (6) to have direct and prompt access to the head of 
        the establishment involved when necessary for any 
        purpose pertaining to the performance of functions and 
        responsibilities under this Act;
          (7) to select, appoint, and employ such officers and 
        employees as may be necessary for carrying out the 
        functions, powers, and duties of the Office subject to 
        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;
          (8) to obtain services as authorized by section 3109 
        of Title 5, United States Code, at daily rates not to 
        exceed the equivalent rate prescribed for grade GS-18 
        of the General Schedule by section 5332 of Title 5, 
        United States Code; and
          (9) to the extent and in such amounts as may be 
        provided in advance by appropriations Acts, to enter 
        into contracts and other arrangements for audits, 
        studies, analyses, and other services with public 
        agencies and with private persons, and to make such 
        payments as may be necessary to carry out the 
        provisions of this Act.
  (b)(1) Upon request of an Inspector General for information 
or assistance under subsection (a)(3), the head of any Federal 
agency involved shall, insofar as is practicable and not in 
contravention of any existing statutory restriction or 
regulation of the Federal agency from which the information is 
requested, furnish to such Inspector General, or to an 
authorized designee, such information or assistance.
  (2) Whenever information or assistance requested under 
subsection (a)(1) or (a)(3) is, in the judgment of an Inspector 
General, unreasonably refused or not provided, the Inspector 
General shall report the circumstances to the head of the 
establishment involved without delay.
  (c) Each head of an establishment shall provide the Office 
within such establishment with appropriate and adequate office 
space at central and field office locations of such 
establishment, together with such equipment, office supplies, 
and communications facilities and services as may be necessary 
for the operation of such offices, and shall provide necessary 
maintenance services for such offices and the equipment and 
facilities located therein.
  (d) For purposes of the provisions of title 5, United States 
Code, governing the Senior Executive Service, any reference in 
such provisions to the ``appointing authority'' for a member of 
the Senior Executive Service or for a Senior Executive Service 
position shall, if such member or position is or would be 
within the Office of an Inspector General, be deemed to be a 
reference to such Inspector General.

SEC. 7. COMPLAINTS BY EMPLOYEES; DISCLOSURE OF IDENTITY; REPRISALS.

  (a) The Inspector General may receive and investigate 
complaints or information from an employee of the establishment 
concerning the possible existence of an activity constituting a 
violation of law, rules, or regulations, or mismanagement, 
gross waste of funds, abuse of authority or a substantial and 
specific danger to the public health and safety.
  (b) The Inspector General shall not, after receipt of a 
complaint or information from an employee, disclose the 
identity of the employee without the consent of the employee, 
unless the Inspector General determines such disclosure is 
unavoidable during the course of the investigation.
  (c) Any employee who has authority to take, direct others to 
take, recommend, or approve any personnel action, shall not, 
with respect to such authority, take or threaten to take any 
action against any employee as a reprisal for making a 
complaint or disclosing information to an Inspector General, 
unless the complaint was made or the information disclosed with 
the knowledge that it was false or with willful disregard for 
its truth or falsity.

SEC. 8A. SPECIAL PROVISIONS RELATING TO THE AGENCY FOR INTERNATIONAL 
                    DEVELOPMENT.

  (a) In addition to the other duties and responsibilities 
specified in this Act, the Inspector General of the Agency for 
International Development--
          (1) shall supervise, direct, and control all security 
        activities relating to the programs and operations of 
        that Agency, subject to the supervision of the 
        Administrator of that Agency; and
          (2) to the extent requested by the Director of the 
        United States International Development Cooperation 
        Agency (after consultation with the Administrator of 
        the Agency for International Development), shall 
        supervise, direct, and control all audit, 
        investigative, and security activities relating to 
        programs and operations within the United States 
        International Development Cooperation Agency.
  (b) In addition to the Assistant Inspector Generals provided 
for in section 3(d) of this Act, the Inspector General of the 
Agency for International Development shall, in accordance with 
applicable laws and regulations governing the civil service, 
appoint an Assistant Inspector General for Security who shall 
have the responsibility for supervising the performance of 
security activities relating to programs and operations of the 
Agency for International Development.
  (c) The semiannual reports required to be submitted to the 
Administrator of the Agency for International Development 
pursuant to section 5(b) of this Act shall also be submitted to 
the Director of the United States International Development 
Cooperation Agency.
  (d) In addition to the officers and employees provided for in 
section 6(a)(6) of this Act, members of the Foreign Service 
may, at the request of the Inspector General of the Agency for 
International Development, be assigned as employees of the 
Inspector General. Members of the Foreign Service so assigned 
shall be responsible solely to the Inspector General, and the 
Inspector General (or his or her designee) shall prepare the 
performance evaluation reports for such members.
  (e) In establishing and staffing field offices pursuant to 
section 6(c) of this Act, the Administrator of the Agency for 
International Development shall not be bound by overseas 
personnel ceilings established under the Monitoring Overseas 
Direct Employment policy.
  (f) The reference in section 7(a) of this Act to an employee 
of the establishment shall, with respect to the Inspector 
General of the Agency for International Development, be 
construed to include an employee of or under the United States 
International Development Cooperation Agency.
  (g) The Inspector General of the Agency for International 
Development shall be in addition to the officers provided for 
in section 624(a) of the Foreign Assistance Act of 1961 [22 
U.S.C.A. Sec. 2384(a)].
  (h) As used in this Act, the term ``Agency for International 
Development'' includes any successor agency primarily 
responsible for administering part I of the Foreign Assistance 
Act of 1961 [22 U.S.C.A. Sec. 2151 et seq.].

SEC. 8B. SPECIAL PROVISIONS CONCERNING THE NUCLEAR REGULATORY 
                    COMMISSION.

  (a) The Chairman of the Commission may delegate the authority 
specified in the second sentence of section 3(a) to another 
member of the Nuclear Regulatory Commission, but shall not 
delegate such authority to any other officer or employee of the 
Commission.
  (b) Notwithstanding sections 6(a)(7) and (8), the Inspector 
General of the Nuclear Regulatory Commission is authorized to 
select, appoint, and employ such officers and employees as may 
be necessary for carrying out the functions, powers and duties 
of the Office of Inspector General and to obtain the temporary 
or intermittent services of experts or consultants or an 
organization thereof, subject to the applicable laws and 
regulations that govern such selections, appointments and 
employment, and the obtaining of such services, within the 
Nuclear Regulatory Commission.

SEC. 8C. SPECIAL PROVISIONS CONCERNING THE FEDERAL DEPOSIT INSURANCE 
                    CORPORATION.

  (a) Delegation.--The Chairperson of the Federal Deposit 
Insurance Corporation may delegate the authority specified in 
the second sentence of section 3(a) to the Vice Chairperson of 
the Board of Directors of the Federal Deposit Insurance 
Corporation, but may not delegate such authority to any other 
officer or employee of the Corporation.
  (b) Personnel.--Notwithstanding paragraphs (7) and (8) of 
section 6(a), the Inspector General of the Federal Deposit 
Insurance Corporation may select, appoint, and employ such 
officers and employees as may be necessary for carrying out the 
functions, powers, and duties of the Office of Inspector 
General and to obtain the temporary or intermittent services of 
experts or consultants or an organization of experts or 
consultants, subject to the applicable laws and regulations 
that govern such selections, appointments, and employment, and 
the obtaining of such services, within the Federal Deposit 
Insurance Corporation.

SEC. 8D. SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF THE TREASURY.

  (a)(1) Notwithstanding the last two sentences of section 
3(a), the Inspector General shall be under the authority, 
direction, and control of the Secretary of the Treasury with 
respect to audits or investigations, or the issuance of 
subpoenas, which require access to sensitive information 
concerning--
          (A) ongoing criminal investigations or proceedings;
          (B) undercover operations;
          (C) the identity of confidential sources, including 
        protected witnesses;
          (D) deliberations and decisions on policy matters, 
        including documented information used as a basis for 
        making policy decisions, the disclosure of which could 
        reasonably be expected to have a significant influence 
        on the economy or market behavior;
          (E) intelligence or counterintelligence matters; or
          (F) other matters the disclosure of which would 
        constitute a serious threat to national security or to 
        the protection of any person or property authorized 
        protection by section 3056 of title 18, United States 
        Code, section 202 of title 3, United States Code, or 
        any provision of the Presidential Protection Assistance 
        Act of 1976 (18 U.S.C. 3056 note; Public Law 94-524).
  (2) With respect to the information described under paragraph 
(1), the Secretary of the Treasury may prohibit the Inspector 
General from carrying out or completing any audit or 
investigation, or from issuing any subpoena, after such 
Inspector General has decided to initiate, carry out, or 
complete such audit or investigation or to issue such subpoena, 
if the Secretary determines that such prohibition is necessary 
to prevent the disclosure of any information described under 
paragraph (1) or to prevent significant impairment to the 
national interests of the United States.
  (3) If the Secretary of the Treasury exercises any power 
under paragraph (1) or (2), the Secretary of the Treasury shall 
notify the Inspector General in writing stating the reasons for 
such exercise. Within 30 days after receipt of any such notice, 
the Inspector General shall transmit a copy of such notice to 
the Committees on Governmental Affairs and Finance of the 
Senate and the Committees on Government Operations and Ways and 
Means of the House of Representatives, and to other appropriate 
committees or subcommittees of the Congress.
  (b) In carrying out the duties and responsibilities specified 
in this Act, the Inspector General of the Department of the 
Treasury shall have oversight responsibility for the internal 
investigations performed by the Office of Internal Affairs of 
the Bureau of Alcohol, Tobacco and Firearms, the Office of 
Internal Affairs of the United States Customs Service, and the 
Office of Inspections of the United States Secret Service, and 
the internal audits and internal investigations performed by 
the Office of Assistant Commissioner (Inspection) of the 
Internal Revenue Service. The head of each such office shall 
promptly report to the Inspector General the significant 
activities being carried out by such office.
  (c) Notwithstanding subsection (b), the Inspector General may 
initiate, conduct and supervise such audits and investigations 
in the Department of the Treasury (including the bureaus and 
services referred to in subsection (b)) as the Inspector 
General considers appropriate.
  (d) If the Inspector General initiates an audit or 
investigation under subsection (c) concerning a bureau or 
service referred to in subsection (b), the Inspector General 
may provide the head of the office of such bureau or service 
referred to in subsection (b) with written notice that the 
Inspector General has initiated such an audit or investigation. 
If the Inspector General issues a notice under the preceding 
sentence, no other audit or investigation shall be initiated 
into the matter under audit or investigation by the Inspector 
General and any other audit or investigation of such matter 
shall cease.
  (e)(1) The Inspector General shall have access to returns and 
return information, as defined in section 6103(b) of the 
Internal Revenue Code of 1986, only in accordance with the 
provisions of section 6103 of such Code [26 U.S.C.A. Sec. 6103] 
and this Act.
  (2) Access by the Inspector General to returns and return 
information under section 6103(h)(1) of such Code shall be 
subject to the following additional requirements:
          (A) In order to maintain internal controls over 
        access to returns and return information, the Inspector 
        General, or in the absence of the Inspector General, 
        the Acting Inspector General, the Deputy Inspector 
        General, the Assistant Inspector General for Audits, or 
        the Assistant Inspector General for Investigations, 
        shall provide to the Assistant Commissioner 
        (Inspection) of the Internal Revenue Service written 
        notice of the Inspector General's intent to access 
        returns and return information. If the Inspector 
        General determines that the Inspection Service of the 
        Internal Revenue Service should not be made aware of a 
        notice of access to returns and return information, 
        such notice shall be provided to the Senior Deputy 
        Commissioner of Internal Revenue.
          (B) Such notice shall clearly indicate the specific 
        returns or return information being accessed, contain a 
        certification by the Inspector General, or in the 
        absence of the Inspector General, the Acting Inspector 
        General, the Deputy Inspector General, the Assistant 
        Inspector General for Audits, or the Assistant 
        Inspector General for Investigations, that the returns 
        or return information being accessed are needed for a 
        purpose described under section 6103(h)(1) of the 
        Internal Revenue Code of 1986, and identify those 
        employees of the Office of Inspector General of the 
        Department of the Treasury who may receive such returns 
        or return information.
          (C) The Internal Revenue Service shall maintain the 
        same system of standardized records or accountings of 
        all requests from the Inspector General for inspection 
        or disclosure of returns and return information 
        (including the reasons for and dates of such requests), 
        and of returns and return information inspected or 
        disclosed pursuant to such requests, as described under 
        section 6103(p)(3)(A) of the Internal Revenue Code of 
        1986. Such system of standardized records or 
        accountings shall also be available for examination in 
        the same manner as provided under section 6103(p)(3) of 
        the Internal Revenue Code of 1986.
          (D) The Inspector General shall be subject to the 
        same safeguards and conditions for receiving returns 
        and return information as are described under section 
        6103(p)(4) of the Internal Revenue Code of 1986.
  (f) An audit or investigation conducted by the Inspector 
General shall not affect a final decision of the Secretary of 
the Treasury or his delegate under section 6406 of the Internal 
Revenue Code of 1986 [26 U.S.C.A. Sec. 6406].
  (g) Notwithstanding section 4(d), in matters involving 
chapter 75 of the Internal Revenue Code of 1986 [26 U.S.C.A. 
Secs. 7201 to 7487], the Inspector General shall report 
expeditiously to the Attorney General only offenses under 
section 7214 of such Code [26 U.S.C.A. Sec. 7214], unless the 
Inspector General obtains the consent of the Commissioner of 
Internal Revenue to exercise additional reporting authority 
with respect to such chapter.
  (h) Any report required to be transmitted by the Secretary of 
the Treasury to the appropriate committees or subcommittees of 
the Congress under section 5(d) shall also be transmitted, 
within the seven-day period specified under such section, to 
the Committees on Governmental Affairs and Finance of the 
Senate and the Committees on Government Operations and Ways and 
Means of the House of Representatives.

SEC. 8E. SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF JUSTICE.

  (a)(1) Notwithstanding the last two sentences of section 
3(a), the Inspector General shall be under the authority, 
direction, and control of the Attorney General with respect to 
audits or investigations, or the issuance of subpoenas, which 
require access to sensitive information concerning--
          (A) ongoing civil or criminal investigations or 
        proceedings;
          (B) undercover operations;
          (C) the identity of confidential sources, including 
        protected witnesses;
          (D) intelligence or counterintelligence matters; or
          (E) other matters the disclosure of which would 
        constitute a serious threat to national security.
  (2) With respect to the information described under paragraph 
(1), the Attorney General may prohibit the Inspector General 
from carrying out or completing any audit or investigation, or 
from issuing any subpoena, after such Inspector General has 
decided to initiate, carry out, or complete such audit or 
investigation or to issue such subpoena, if the Attorney 
General determines that such prohibition is necessary to 
prevent the disclosure of any information described under 
paragraph (1) or to prevent the significant impairment to the 
national interests of the United States.
  (3) If the Attorney General exercises any power under 
paragraph (1) or (2), the Attorney General shall notify the 
Inspector General in writing stating the reasons for such 
exercise. Within 30 days after receipt of any such notice, the 
Inspector General shall transmit a copy of such notice to the 
Committees on Governmental Affairs and Judiciary of the Senate 
and the Committees on Government Operations and Judiciary of 
the House of Representatives, and to other appropriate 
committees or subcommittees of the Congress.
  (b) In carrying out the duties and responsibilities specified 
in this Act, the Inspector General of the Department of 
Justice--
          (1) may initiate, conduct and supervise such audits 
        and investigations in the Department of Justice as the 
        Inspector General considers appropriate;
          (2) shall give particular regard to the activities of 
        the Counsel, Office of Professional Responsibility of 
        the Department and the audit, internal investigative, 
        and inspection units outside the Office of Inspector 
        General with a view toward avoiding duplication and 
        insuring effective coordination and cooperation; and
          (3) shall refer to the Counsel, Office of 
        Professional Responsibility of the Department for 
        investigation, information or allegations relating to 
        the conduct of an officer or employee of the Department 
        of Justice employed in an attorney, criminal 
        investigative, or law enforcement position that is or 
        may be a violation of law, regulation, or order of the 
        Department or any other applicable standard of conduct, 
        except that no such referral shall be made if the 
        officer or employee is employed in the Office of 
        Professional Responsibility of the Department.
  (c) Any report required to be transmitted by the Attorney 
General to the appropriate committees or subcommittees of the 
Congress under section 5(d) shall also be transmitted, within 
the seven-day period specified under such section, to the 
Committees on the Judiciary and Governmental Affairs of the 
Senate and the Committees on the Judiciary and Government 
Operations of the House of Representatives.

SEC. 8F. SPECIAL PROVISIONS CONCERNING THE CORPORATION FOR NATIONAL AND 
                    COMMUNITY SERVICE.

  (a) Notwithstanding the provisions of paragraphs (7) and (8) 
of section 6(a), it is within the exclusive jurisdiction of the 
Inspector General of the Corporation for National and Community 
Service to--
          (1) appoint and determine the compensation of such 
        officers and employees in accordance with section 
        195(b) of the National and Community Service Trust Act 
        of 1993 [42 U.S.C.A. Sec. 12651f(b)]; and
          (2) procure the temporary and intermittent services 
        of and compensate such experts and consultants, in 
        accordance with section 3109(b) of title 5, United 
        States Code [5 U.S.C.A. Sec. 3109(b)],
as may be necessary to carry out the functions, powers, and 
duties of the Inspector General.
  (b) No later than the date on which the Chief Executive 
Officer of the Corporation for National and Community Service 
transmits any report to the Congress under subsection (a) or 
(b) of section 5, the Chief Executive Officer shall transmit 
such report to the Board of Directors of such Corporation.
  (c) No later than the date on which the Chief Executive 
Officer of the Corporation for National and Community Service 
transmits a report described under section 5(b) to the Board of 
Directors as provided under subsection (b) of this section, the 
Chief Executive Officer shall also transmit any audit report 
which is described in the statement required under section 
5(b)(4) to the Board of Directors. All such audit reports shall 
be placed on the agenda for review at the next scheduled 
meeting of the Board of Directors following such transmittal. 
The Chief Executive Officer of the Corporation shall be present 
at such meeting to provide any information relating to such 
audit reports.
  (d) No later than the date on which the Inspector General of 
the Corporation for National and Community Service reports a 
problem, abuse, or deficiency under section 5(d) to the Chief 
Executive Officer of the Corporation, the Chief Executive 
Officer shall report such problem, abuse, or deficiency to the 
Board of Directors.

SEC. 8G. REQUIREMENTS FOR FEDERAL ENTITIES AND DESIGNATED FEDERAL 
                    ENTITIES

  (a) Notwithstanding section 11 of this Act, as used in this 
section--
          (1) the term ``Federal entity'' means any Government 
        corporation (within the meaning of section 103(1) of 
        title 5, United States Code), any Government controlled 
        corporation (within the meaning of section 103(2) of 
        such title), or any other entity in the Executive 
        branch of the Government, or any independent regulatory 
        agency, but does not include--
                  (A) an establishment (as defined under 
                section 11(2) of this Act) or part of an 
                establishment;
                  (B) a designated Federal entity (as defined 
                under paragraph (2) of this subsection) or part 
                of a designated Federal entity;
                  (C) the Executive Office of the President;
                  (D) the Central Intelligence Agency;
                  (E) the General Accounting Office; or
                  (F) any entity in the judicial or legislative 
                branches of the Government, including the 
                Administrative Office of the United States 
                Courts and the Architect of the Capitol and any 
                activities under the direction of the Architect 
                of the Capitol;
          (2) the term ``designated Federal entity'' means 
        Amtrak, the Appalachian Regional Commission, the Board 
        of Governors of the Federal Reserve System, the Board 
        for International Broadcasting, the Commodity Futures 
        Trading Commission, the Consumer Product Safety 
        Commission, the Corporation for Public Broadcasting, 
        the Equal Employment Opportunity Commission, the Farm 
        Credit Administration, the Federal Communications 
        Commission, the Federal Deposit Insurance Corporation, 
        the Federal Election Commission, the Federal Housing 
        Finance Board, the Federal Labor Relations Authority, 
        the Federal Maritime Commission, the Federal Trade 
        Commission, the Interstate Commerce Commission, the 
        Legal Services Corporation, the National Archives and 
        Records Administration, the National Credit Union 
        Administration, the National Endowment for the Arts, 
        the National Endowment for the Humanities, the National 
        Labor Relations Board, the National Science Foundation, 
        the Panama Canal Commission, the Peace Corps, the 
        Pension Benefit Guaranty Corporation, the Securities 
        and Exchange Commission, the Smithsonian Institution, 
        the Tennessee Valley Authority, the United States 
        International Trade Commission, and the United States 
        Postal Service;
          (3) the term ``head of the Federal entity'' means any 
        person or persons designated by statute as the head of 
        a Federal entity, and if no such designation exists, 
        the chief policymaking officer or board of a Federal 
        entity as identified in the list published pursuant to 
        subsection (h)(1) of this section;
          (4) the term ``head of the designated Federal 
        entity'' means any person or persons designated by 
        statute as the head of a designated Federal entity and 
        if no such designation exists, the chief policymaking 
        officer or board of a designated Federal entity as 
        identified in the list published pursuant to subsection 
        (h)(1) of this section, except that with respect to the 
        National Science Foundation, such term means the 
        National Science Board;
          (5) the term ``Office of Inspector General'' means an 
        Office of Inspector General of a designated Federal 
        entity; and
          (6) the term ``Inspector General'' means an Inspector 
        General of a designated Federal entity.
  (b) No later than 180 days after October 18, 1988, there 
shall be established and maintained in each designated Federal 
entity an Office of Inspector General. The head of the 
designated Federal entity shall transfer to such office the 
offices, units, or other components, and the functions, powers, 
or duties thereof, that such head determines are properly 
related to the functions of the Office of Inspector General and 
would, if so transferred, further the purposes of this section. 
There shall not be transferred to such office any program 
operating responsibilities.
  (c) Except as provided under subsection (f) of this section, 
the Inspector General shall be appointed by the head of the 
designated Federal entity in accordance with the applicable 
laws and regulations governing appointments within the 
designated Federal entity.
  (d) Each Inspector General shall report to and be under the 
general supervision of the head of the designated Federal 
entity, but shall not report to, or be subject to supervision 
by, any other officer or employee of such designated Federal 
entity. The head of the designated Federal entity shall not 
prevent or prohibit the Inspector General from initiating, 
carrying out, or completing any audit or investigation, or from 
issuing any subpena during the course of any audit or 
investigation.
  (e) If an Inspector General is removed from office or is 
transferred to another position or location within a designated 
Federal entity, the head of the designated Federal entity shall 
promptly communicate in writing the reasons for any such 
removal or transfer to both Houses of the Congress.
  (f)(1) The Chief Postal Inspector of the United States Postal 
Service shall also hold the position of Inspector General of 
the United States Postal Service, and for purposes of this 
section, shall report to, and be under the general supervision 
of, the Postmaster General of the United States Postal Service. 
The Postmaster General, in consultation with the Governors of 
the United States Postal Service, shall appoint the Chief 
Postal Inspector. The Postmaster General, with the concurrence 
of the Governors of the United States Postal Service, shall 
have power to remove the Chief Postal Inspector or transfer the 
Chief Postal Inspector to another position or location within 
the United States Postal Service. If the Chief Postal Inspector 
is removed or transferred in accordance with this subsection, 
the Postmaster General shall promptly notify both Houses of the 
Congress in writing of the reasons for such removal or 
transfer.
  (2) For purposes of paragraph (1), the term ``Governors'' has 
the same meaning as such term is defined under section 102(3) 
of title 39, United States Code.
  (g)(1) Sections 4, 5, 6 (other than subsections (a)(7) and 
(a)(8) thereof), and 7 of this Act shall apply to each 
Inspector General and Office of Inspector General of a 
designated Federal entity and such sections shall be applied to 
each designated Federal entity and head of the designated 
Federal entity (as defined under subsection (a)) by 
substituting--
          (A) ``designated Federal entity'' for 
        ``establishment''; and
          (B) ``head of the designated Federal entity'' for 
        ``head of the establishment''.
  (2) In addition to the other authorities specified in this 
Act, an Inspector General is authorized to select, appoint, and 
employ such officers and employees as may be necessary for 
carrying out the functions, powers, and duties of the Office of 
Inspector General and to obtain the temporary or intermittent 
services of experts or consultants or an organization thereof, 
subject to the applicable laws and regulations that govern such 
selections, appointments, and employment, and the obtaining of 
such services, within the designated Federal entity.
  (3) Notwithstanding the last sentence of subsection (d) of 
this section, the provisions of subsection (a) of section 8C 
(other than the provisions of subparagraphs (A), (B), (C), and 
(E) of subsection (a)(1)) shall apply to the Inspector General 
of the Board of Governors of the Federal Reserve System and the 
Chairman of the Board of Governors of the Federal Reserve 
System in the same manner as such provisions apply to the 
Inspector General of the Department of the Treasury and the 
Secretary of the Treasury, respectively.
  (h)(1) No later than April 30, 1989, and annually thereafter, 
the Director of the Office of Management and Budget, after 
consultation with the Comptroller General of the United States, 
shall publish in the Federal Register a list of the Federal 
entities and designated Federal entities and the head of each 
such entity (as defined under subsection (a) of this section).
  (2) Beginning on October 31, 1989, and on October 31 of each 
succeeding calendar year, the head of each Federal entity (as 
defined under subsection (a) of this section) shall prepare and 
transmit to the Director of the Office of Management and Budget 
and to each House of the Congress a report which--
          (A) states whether there has been established in the 
        Federal entity an office that meets the requirements of 
        this section;
          (B) specifies the actions taken by the Federal entity 
        otherwise to ensure that audits are conducted of its 
        programs and operations in accordance with the 
        standards for audit of governmental organizations, 
        programs, activities, and functions issued by the 
        Comptroller General of the United States, and includes 
        a list of each audit report completed by a Federal or 
        non-Federal auditor during the reporting period and a 
        summary of any particularly significant findings; and
          (C) summarizes any matters relating to the personnel, 
        programs, and operations of the Federal entity referred 
        to prosecutive authorities, including a summary 
        description of any preliminary investigation conducted 
        by or at the request of the Federal entity concerning 
        these matters, and the prosecutions and convictions 
        which have resulted.

SEC. 8H. RULE OF CONSTRUCTION OF SPECIAL PROVISIONS.

  The special provisions under section 8, 8A, 8B, 8C, 8D, or 8E 
of this Act relate only to the establishment named in such 
section and no inference shall be drawn from the presence or 
absence of a provision in any such section with respect to an 
establishment not named in such section or with respect to a 
designated Federal entity as defined under section 8F(a).

SEC. 9. TRANSFER OF FUNCTIONS.

  (a) There shall be transferred--
          (1) to the Office of Inspector General--
                  (A) of the Department of Agriculture, the 
                offices of that department referred to as the 
                ``Office of Investigation'' and the ``Office of 
                Audit'';
                  (B) of the Department of Commerce, the 
                offices of that department referred to as the 
                ``Office of Audits'' and the ``Investigations 
                and Inspections Staff'' and that portion of the 
                office referred to as the ``Office of 
                Investigations and Security'' which has 
                responsibility for investigation of alleged 
                criminal violations and program abuse;
                  (C) of the Department of Defense, the offices 
                of that department referred to as the ``Defense 
                Audit Service'' and the ``Office of Inspector 
                General, Defense Logistics Agency'', and that 
                portion of the office of that department 
                referred to as the ``Defense Investigative 
                Service'' which has responsibility for the 
                investigation of alleged criminal violations;
                  (D) of the Department of Education, all 
                functions of the Inspector General of Health, 
                Education, and Welfare or of the Office of 
                Inspector General of Health, Education, and 
                Welfare relating to functions transferred by 
                section 301 of the Department of Education 
                Organization Act [20 U.S.C.A. Sec. 3441];
                  (E) of the Department of Energy, the Office 
                of Inspector General (as established by section 
                208 of the Department of Energy Organization 
                Act) [42 U.S.C.A. former Sec. 7138];
                  (F) of the Department of Health and Human 
                Services, the Office of Inspector General (as 
                established by title II of Public Law 94-505) 
                [42 U.S.C.A. former Secs. 3521-3527];
                  (G) of the Department of Housing and Urban 
                Development, the office of that department 
                referred to as the ``Office of Inspector 
                General'';
                  (H) of the Department of the Interior, the 
                office of that department referred to as the 
                ``Office of Audit and Investigation'';
                  (I) of the Department of Justice, the offices 
                of that Department referred to as (i) the 
                ``Audit Staff, Justice Management Division'', 
                (ii) the ``Policy and Procedures Branch, Office 
                of the Comptroller, Immigration and 
                Naturalization Service'', the ``Office of 
                Professional Responsibility, Immigration and 
                Naturalization Service'', and the ``Office of 
                Program Inspections, Immigration and 
                Naturalization Service'', (iii) the ``Office of 
                Internal Inspection, United States Marshals 
                Service'', (iv) the ``Financial Audit Section, 
                Office of Financial Management, Bureau of 
                Prisons'' and the ``Office of Inspections, 
                Bureau of Prisons'', and (v) from the Drug 
                Enforcement Administration, that portion of the 
                ``Office of Inspections'' which is engaged in 
                internal audit activities, and that portion of 
                the ``Office of Planning and Evaluation'' which 
                is engaged in program review activities;
                  (J) of the Department of Labor, the office of 
                that department referred to as the ``Office of 
                Special Investigations'';
                  (K) of the Department of Transportation, the 
                offices of that department referred to as the 
                ``Office of Investigations and Security'' and 
                the ``Office of Audit'' of the Department, the 
                ``Offices of Investigations and Security, 
                Federal Aviation Administration'', and 
                ``External Audit Divisions, Federal Aviation 
                Administration'', the ``Investigations Division 
                and the External Audit Division of the Office 
                of Program Review and Investigation, Federal 
                Highway Administration'', and the ``Office of 
                Program Audits, Urban Mass Transportation 
                Administration'';
                  (L) of the Department of the Treasury, the 
                office of that department referred to as the 
                ``Office of Inspector General'', and, 
                notwithstanding any other provision of law, 
                that portion of each of the offices of that 
                department referred to as the ``Office of 
                Internal Affairs, Bureau of Alcohol, Tobacco, 
                and Firearms'', the ``Office of Internal 
                Affairs, United States Customs Service'', and 
                the ``Office of Inspections, United States 
                Secret Service'' which is engaged in internal 
                audit activities;
                  (M) of the Environmental Protection Agency, 
                the offices of that agency referred to as the 
                ``Office of Audit'' and the ``Security and 
                Inspection Division'';
                  (N) of the Federal Emergency Management 
                Agency, the office of that agency referred to 
                as the ``Office of Inspector General'';
                  (O) of the General Services Administration, 
                the offices of that agency referred to as the 
                ``Office of Audits'' and the ``Office of 
                Investigations'';
                  (P) of the National Aeronautics and Space 
                Administration, the offices of that agency 
                referred to as the ``Management Audit Office'' 
                and the ``Office of Inspections and Security'';
                  (Q) of the Nuclear Regulatory Commission, the 
                office of that commission referred to as the 
                ``Office of Inspector and Auditor'';
                  (R) of the Office of Personnel Management, 
                the offices of that agency referred to as the 
                ``Office of Inspector General'', the 
                ``Insurance Audits Division, Retirement and 
                Insurance Group'', and the ``Analysis and 
                Evaluation Division, Administration Group'';
                  (S) of the Railroad Retirement Board, the 
                Office of Inspector General (as established by 
                section 23 of the Railroad Retirement Act of 
                1974);
                  (T) of the Small Business Administration, the 
                office of that agency referred to as the 
                ``Office of Audits and Investigations'';
                  (U) of the Veterans' Administration, the 
                offices of that agency referred to as the 
                ``Office of Audits'' and the ``Office of 
                Investigations''; and
                  (V) of the Corporation for National and 
                Community Service, the Office of Inspector 
                General of ACTION;
                  (W) of the Social Security Administration, 
                the functions of the Inspector General of the 
                Department of Health and Human Services which 
                are transferred to the Social Security 
                Administration by the Social Security 
                Independence and Program Improvements Act of 
                1994 (other than functions performed pursuant 
                to section 105(a)(2) of such Act), except that 
                such transfers shall be made in accordance with 
                the provisions of such Act and shall not be 
                subject to subsections (b) through (d) of this 
                section; and
          (2) such other offices or agencies, or functions, 
        powers, or duties thereof, as the head of the 
        establishment involved may determine are properly 
        related to the functions of the Office and would, if so 
        transferred, further the purposes of this Act,
        except that there shall not be transferred to an 
        Inspector General under paragraph (2) program operating 
        responsibilities.
  (b) The personnel, assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds employed, held, 
used, arising from, available or to be made available, of any 
office or agency the functions, powers, and duties of which are 
transferred under subsection (a) are hereby transferred to the 
applicable Office of Inspector General.
  (c) Personnel transferred pursuant to subsection (b) shall be 
transferred in accordance with applicable laws and regulations 
relating to the transfer of functions except that the 
classification and compensation of such personnel shall not be 
reduced for one year after such transfer.
  (d) In any case where all the functions, powers, and duties 
of any office or agency are transferred pursuant to this 
subsection, such office or agency shall lapse. Any person who, 
on the effective date of this Act [Oct. 1, 1978], held a 
position compensated in accordance with the General Schedule, 
and who, without a break in service, is appointed in an Office 
of Inspector General to a position having duties comparable to 
those performed immediately preceding such appointment shall 
continue to be compensated in the new position at not less than 
the rate provided for the previous position, for the duration 
of service in the new position.

SEC. 10. CONFORMING AND TECHNICAL AMENDMENTS.

  [Section amended sections 5315 and 5316 of Title 5, 
Government Organization and Employees, and section 3522 of 
Title 42, The Public Health and Welfare, which amendments have 
been executed to text.]

SEC. 11. DEFINITIONS.

  As used in this Act--
          (1) the term ``head of the establishment'' means the 
        Secretary of Agriculture, Commerce, Defense, Education, 
        Energy, Health and Human Services, Housing and Urban 
        Development, the Interior, Labor, State, 
        Transportation, or the Treasury; the Attorney General; 
        the Administrator of the Agency for International 
        Development, Environmental Protection, General 
        Services, National Aeronautics and Space, Small 
        Business, or Veterans' Affairs; the Director of the 
        Federal Emergency Management Agency, the Office of 
        Personnel Management or the United States Information 
        Agency; the Chairman of the Nuclear Regulatory 
        Commission or the Railroad Retirement Board; the 
        Chairperson of the Thrift Depositor Protection 
        Oversight Board; the Chief Executive Officer of the 
        Corporation for National and Community Service; the 
        Administrator of the Community Development Financial 
        Institutions Fund; and the chief executive officer of 
        the Resolution Trust Corporation; and the Chairperson 
        of the Federal Deposit Insurance Corporation; or the 
        Commissioner of Social Security, Social Security 
        Administration; as the case may be;
          (2) the term ``establishment'' means the Department 
        of Agriculture, Commerce, Defense, Education, Energy, 
        Health and Human Services, Housing and Urban 
        Development, the Interior, Justice, Labor, State, 
        Transportation, or the Treasury; the Agency for 
        International Development, the Community Development 
        Financial Institutions Fund, the Environmental 
        Protection Agency, the Federal Emergency Management 
        Agency, the General Services Administration, the 
        National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, the United States Information Agency, 
        the Corporation for National and Community Service, or 
        the Veterans' Administration, or the Social Security 
        Administration; as the case may be;
          (3) the term ``Inspector General'' means the 
        Inspector General of an establishment;
          (4) the term ``Office'' means the Office of Inspector 
        General of an establishment; and
          (5) the term ``Federal agency'' means an agency as 
        defined in section 552(e) of Title 5 (including an 
        establishment as defined in paragraph (2)), United 
        States Code, but shall not be construed to include the 
        General Accounting Office.

SEC. 12. EFFECTIVE DATE.

  The provisions of this Act and the amendments made by this 
Act [see section 10 of this Act] shall take effect October 1, 
1978.
          * * * * * * *
  The following list shows the section of 5 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:


------------------------------------------------------------------------
                 5 U.S.C.                    Requirements or Guidelines 
------------------------------------------------------------------------
Appendix 3................................  12 C.F.R. 603, 1403; 20     
                                             C.F.R. 75, 76; 39 C.F.R.   
                                             221, 222, 224, 233, 265    
                                            GAO: Government Auditing    
                                             Standards: 1994 Revision,  
                                             see appendix III           
------------------------------------------------------------------------

                                                                   
======================================================================


                    SELECTED PROVISIONS OF TITLE 15,

                          UNITED STATES CODE--

                           COMMERCE AND TRADE

======================================================================

        Table of Sections of Selected Provisions of Title 15 \9\
---------------------------------------------------------------------------

    \9\ This table of sections is not part of Title 15 but is included 
for the convenience of the reader.
---------------------------------------------------------------------------
                              ----------                              


                      TITLE 15, UNITED STATES CODE

                           COMMERCE AND TRADE

                   CHAPTER 14A--AID TO SMALL BUSINESS
Sec. 644.  Awards or contracts.
       CHAPTER 21--NATIONAL POLICY ON EMPLOYMENT AND PRODUCTIVITY
Sec. 1022.  Economic Report of President; coverage; 
supplementary reports; reference to congressional joint 
committee; percentage rate of unemployment; definitions.
                      TITLE 15--COMMERCE AND TRADE

          * * * * * * *

                   CHAPTER 14A--AID TO SMALL BUSINESS

SEC. 644. AWARDS OR CONTRACTS

  (a) Determination.--To effectuate the purposes of this 
chapter, small-business concerns within the meaning of this 
chapter shall receive any award or contract or any part 
thereof, and be awarded any contract for the sale of Government 
property, as to which it is determined by the Administration 
and the contracting procurement or disposal agency (1) to be in 
the interest of maintaining or mobilizing the Nation's full 
productive capacity, (2) to be in the interest of war or 
national defense programs, (3) to be in the interest of 
assuring that a fair proportion of the total purchases and 
contracts for property and services for the Government in each 
industry category are placed with small-business concerns, or 
(4) to be in the interest of assuring that a fair proportion of 
the total sales of Government property be made to small-
business concerns; but nothing contained in this chapter shall 
be construed to change any preferences or priorities 
established by law with respect to the sale of electrical power 
or other property by the Government or any agency thereof. 
These determinations may be made for individual awards or 
contracts or for classes of awards or contracts. If a proposed 
procurement includes in its statement of work goods or services 
currently being performed by a small business, and if the 
proposed procurement is in a quantity or estimated dollar value 
the magnitude of which renders small business prime contract 
participation unlikely, or if a proposed procurement for 
construction seeks to package or consolidate discrete 
construction projects, the Procurement Activity shall provide a 
copy of the proposed procurement to the Procurement Activity's 
Small Business Procurement Center Representative at least 30 
days prior to the solicitation's issuance along with a 
statement explaining (1) why the proposed acquisition cannot be 
divided into reasonably small lots (not less than economic 
production runs) to permit offers on quantities less than the 
total requirement, (2) why delivery schedules cannot be 
established on a realistic basis that will encourage small 
business participation to the extent consistent with the actual 
requirements of the Government, (3) why the proposed 
acquisition cannot be offered so as to make small business 
participation likely, or (4) why construction cannot be 
procured as separate discrete projects. The thirty-day 
notification process shall occur concurrently with other 
processing steps required prior to issuance of the 
solicitation. Within 15 days after receipt of the proposed 
procurement and accompanying statement, if the Procurement 
Center Representative believes that the procurement as proposed 
will render small business prime contract participation 
unlikely, the Representative shall recommend to the Procurement 
Activity alternative procurement methods which would increase 
small business prime contracting opportunities. Whenever the 
Administration and the contracting procurement agency fail to 
agree, the matter shall be submitted for determination to the 
Secretary or the head of the appropriate department or agency 
by the Administrator. For purposes of clause (3) of the first 
sentence of this subsection, an industry category is a discrete 
group of similar goods and services. Such groups shall be 
determined by the Administration in accordance with the four-
digit standard industrial classification codes contained in the 
Standard Industrial Classification Manual published by the 
Office of Management and Budget, except that the Administration 
shall limit such an industry category to a greater extent than 
provided under such classification codes if the Administration 
receives evidence indicating that further segmentation for 
purposes of this paragraph is warranted due to special capital 
equipment needs or special labor or geographic requirements or 
to recognize a new industry. A market for goods or services may 
not be segmented under the preceding sentence due to geographic 
requirements unless the Government typically designates the 
area where work for contracts for such goods or services is to 
be performed and Government purchases comprise the major 
portion of the entire domestic market for such goods or 
services and, due to the fixed location of facilities, high 
mobilization costs, or similar economic factors, it is 
unreasonable to expect competition from business concerns 
located outside of the general areas where such concerns are 
located. A contract may not be awarded under this subsection if 
the award of the contract would result in a cost to the 
awarding agency which exceeds a fair market price.
  (b) Placement of Contracts by Contracting Procurement 
Agency.--With respect to any work to be performed the amount of 
which would exceed the maximum amount of any contract for which 
a surety may be guaranteed against loss under section 694b of 
this title, the contracting procurement agency shall, to the 
extent practicable, place contracts so as to allow more than 
one small business concern to perform such work.
  (c) Programs for Blind and Handicapped Individuals.--(1) As 
used in this subsection:
          (A) The term ``Committee'' means the Committee for 
        Purchase From People Who Are Blind or Severely Disabled 
        established under section 46 of Title 41.
          (B) The term ``public or private organization for the 
        handicapped'' has the same meaning given such term in 
        section 3(e).
          (C) The term ``handicapped individual'' has the same 
        meaning given such term in section 632(f) of this 
        title.
  (2)(A) During fiscal year 1995, public or private 
organizations for the handicapped shall be eligible to 
participate in programs authorized under this section in an 
aggregate amount not to exceed $40,000,000.
  (B) None of the amounts authorized for participation by 
subparagraph (A) may be placed on the procurement list 
maintained by the Committee pursuant to section 47 of Title 41.
  (3) The Administrator shall monitor and evaluate such 
participation.
  (4)(A) Not later than ten days after the announcement of a 
proposed award of a contract by an agency or department to a 
public or private organization for the handicapped, a for-
profit small business concern that has experienced or is likely 
to experience severe economic injury as the result of the 
proposed award may file an appeal of the proposed award with 
the Administrator.
  (B) If such a concern files an appeal of a proposed award 
under subparagraph (A) and the Administrator, after 
consultation with the Executive Director of the Committee, 
finds that the concern has experienced or is likely to 
experience severe economic injury as the result of the proposed 
award, not later than thirty days after the filing of the 
appeal, the Administration shall require each agency and 
department having procurement powers to take such action as may 
be appropriate to alleviate economic injury sustained or likely 
to be sustained by the concern.
  (5) Each agency and department having procurement powers 
shall report to the Office of Federal Procurement Policy each 
time a contract subject to paragraph (2)(A) is entered into, 
and shall include in its report the amount of the next higher 
bid submitted by a for-profit small business concern. The 
Office of Federal Procurement Policy shall collect data 
reported under the preceding sentence through the Federal 
procurement data system and shall report to the Administration 
which shall notify all such agencies and departments when the 
maximum amount of awards authorized under paragraph (2)(A) has 
been made during any fiscal year.
  (6) For the purpose of this subsection, a contract may be 
awarded only if at least 75 per centum of the direct labor 
performed on each item being produced under the contract in the 
sheltered workshop or performed in providing each type of 
service under the contract by the sheltered workshop is 
performed by handicapped individuals.
  (7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may 
use multiyear contracts, if appropriate.
  (d) Priority.--For purposes of this section priority shall be 
given to the awarding of contracts and the placement of 
subcontracts to small business concerns which shall perform a 
substantial proportion of the production on those contracts and 
subcontracts within areas of concentrated unemployment or 
underemployment or within labor surplus areas. Notwithstanding 
any other provision of law, total labor surplus area set-asides 
pursuant to Defense Manpower Policy Number 4 (32A C.F.R. 
Chapter 1) or any successor policy shall be authorized if the 
Secretary or his designee specifically determines that there is 
a reasonable expectation that offers will be obtained from a 
sufficient number of eligible concerns so that awards will be 
made at reasonable prices. As soon as practicable and to the 
extent possible, in determining labor surplus areas, 
consideration shall be given to those persons who would be 
available for employment were suitable employment available. 
Until such definition reflects such number, the present 
criteria of such policy shall govern.
  (e), (f) Repealed.--Pub. L. 103-355, Title VII, Sec. 7101(a), 
Oct. 13, 1994, 108 Stat. 3367
  (g) Goals for Participation of Small Business Concerns in 
Procurement Contracts.--
          (1) The President shall annually establish 
        Government-wide goals for procurement contracts awarded 
        to small business concerns, small business concerns 
        owned and controlled by socially and economically 
        disadvantaged individuals, and small business concerns 
        owned and controlled by women. The Government-wide goal 
        for participation by small business concerns shall be 
        established at not less than 20 percent of the total 
        value of all prime contract awards for each fiscal 
        year. The Government-wide goal for participation by 
        small business concerns owned and controlled by 
        socially and economically disadvantaged individuals 
        shall be established at not less than 5 percent of the 
        total value of all prime contract and subcontract 
        awards for each fiscal year. The Government-wide goal 
        for participation by small business concerns owned and 
        controlled by women shall be established at not less 
        than 5 percent of the total value of all prime contract 
        and subcontract awards for each fiscal year. 
        Notwithstanding the Government-wide goal, each agency 
        shall have an annual goal that presents, for that 
        agency, the maximum practicable opportunity for small 
        business concerns, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, and small business concerns owned and 
        controlled by women to participate in the performance 
        of contracts let by such agency. The Administration and 
        the Administrator of the Office of Federal Procurement 
        Policy shall, when exercising their authority pursuant 
        to paragraph (2), insure that the cumulative annual 
        prime contract goals for all agencies meet or exceed 
        the annual Government-wide prime contract goal 
        established by the President pursuant to this 
        paragraph.
          (2) The head of each Federal agency shall, after 
        consultation with the Administration, establish goals 
        for the participation by small business concerns, owned 
        and controlled by socially and economically 
        disadvantaged individuals, and by small business 
        concerns owned and controlled by women in procurement 
        contracts of such agency. Goals established under this 
        subsection shall be jointly established by the 
        Administration and the head of each Federal agency and 
        shall realistically reflect the potential of small 
        business concerns, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, and small business concerns owned and 
        controlled by women to perform such contracts and to 
        perform subcontracts under such contracts. Whenever the 
        Administration and the head of any Federal agency fail 
        to agree on established goals, the disagreement shall 
        be submitted to the Administrator of the Office of 
        Federal Procurement Policy for final determination. For 
        the purpose of establishing goals under this 
        subsection, the head of each Federal agency shall make 
        consistent efforts to annually expand participation by 
        small business concerns from each industry category in 
        procurement contracts of the agency, including 
        participation by small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals and participation by small business 
        concerns owned and controlled by women. The head of 
        each Federal agency, in attempting to attain such 
        participation, shall consider--
                  (A) contracts awarded as the result of 
                unrestricted competition; and
                  (B) contracts awarded after competition 
                restricted to eligible small business concerns 
                under this section and under the program 
                established under section 637(a) of this title.
  (h) Reports to Administration; Submittal of Information To 
Congress.--
          (1) At the conclusion of each fiscal year, the head 
        of each Federal agency shall report to the 
        Administration on the extent of participation by small 
        business concerns, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, and small business concerns owned and 
        controlled by women in procurement contracts of such 
        agency. Such reports shall contain appropriate 
        justifications for failure to meet the goals 
        established under subsection (g) of this section.
          (2) The Administration shall annually compile and 
        analyze the reports submitted by the individual 
        agencies pursuant to paragraph (1) and shall submit 
        them to the President. The Administration's submission 
        to the President shall include the following:
                  (A) The Government-wide goals for 
                participation by small business concerns, small 
                business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women and the performance in 
                attaining such goals.
                  (B) The goals in effect for each agency and 
                the agency's performance in attaining such 
                goals.
                  (C) An analysis of any failure to achieve the 
                Government-wide goals or any individual agency 
                goals and the actions planned by such agency 
                (and approved by the Administration) to achieve 
                the goals in the succeeding fiscal year.
                  (D) The number and the dollar value of 
                contracts awarded to small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women through--
                          (i) noncompetitive negotiation,
                          (ii) competition restricted to small 
                        business concerns owned and controlled 
                        by socially and economically 
                        disadvantaged individuals,
                          (iii) competition restricted to small 
                        business concerns, and
                          (iv) unrestricted competitions, for 
                        each agency and on a Government-wide 
                        basis.
                  (E) The number and dollar value of 
                subcontracts awarded to small business 
                concerns, small business concerns owned and 
                controlled by socially and economically 
                disadvantaged individuals, and small business 
                concerns owned and controlled by women.
                  (F) The number and dollar value of prime 
                contracts and subcontracts awarded to small 
                business concerns owned and controlled by 
                women.
          (3) The President shall include the information 
        required by paragraph (2) in each annual report to the 
        Congress on the state of small business prepared 
        pursuant to section 631b(a) of this title.
  (i) Small Business Set-asides.--Nothing in this chapter or 
any other provision of law precludes exclusive small business 
set-asides for procurements of architectural and engineering 
services, research, development, test and evaluation, and each 
Federal agency is authorized to develop such set-asides to 
further the interests of small business in those areas.
  (j) Small Business Reservation.--
          (1) Each contract for the purchase of goods and 
        services that has an anticipated value greater than 
        $2,500 but not greater than $100,000 shall be reserved 
        exclusively for small business concerns unless the 
        contracting officer is unable to obtain offers from two 
        or more small business concerns that are competitive 
        with market prices and are competitive with regard to 
        the quality and delivery of the goods or services being 
        purchased.
          (2) In carrying out paragraph (1), a contracting 
        officer shall consider a responsive offer timely 
        received from an eligible small business offeror.
          (3) Nothing in paragraph (1) shall be construed as 
        precluding an award of a contract with a value not 
        greater than $100,000 under the authority of subsection 
        (a) of section 637 of this title, section 2323 of Title 
        10, section 712 of the Business Opportunity Development 
        Reform Act of 1988 (Public Law 100-656; 15 U.S.C. 644 
        note), or section 7102 of the Federal Acquisition 
        Streamlining Act of 1994.
  (k) Office of Small and Disadvantaged Business Utilization; 
Director.--There is hereby established in each Federal agency 
having procurement powers an office to be known as the ``Office 
of Small and Disadvantaged Business Utilization''. The 
management of each such office shall be vested in an officer or 
employee of such agency who shall--
          (1) be known as the ``Director of Small and 
        Disadvantaged Business Utilization'' for such agency,
          (2) be appointed by the head of such agency,
          (3) be responsible only to, and report directly to, 
        the head of such agency or to the deputy of such head, 
        except that the director for the Office of the 
        Secretary of Defense shall be responsible only to, and 
        report directly to, such Secretary or the Secretary's 
        designee,
          (4) be responsible for the implementation and 
        execution of the functions and duties under this 
        section and section 637 of this title which relate to 
        such agency,
          (5) assist small business concerns to obtain 
        payments, required late payment interest penalties, or 
        information regarding payments due to such concerns 
        from an executive agency or a contractor, in conformity 
        with chapter 39 of Title 31 or any other protection for 
        contractors or subcontractors (including suppliers) 
        that is included in the Federal Acquisition Regulation 
        or any individual agency supplement to such Government-
        wide regulation,
          (6) have supervisory authority over personnel of such 
        agency to the extent that the functions and duties of 
        such personnel relate to functions and duties under 
        this section and section 637 of this title,
          (7) assign a small business technical adviser to each 
        office to which the Administration has assigned a 
        procurement center representative--
                  (A) who shall be a full-time employee of the 
                procuring activity and shall be well qualified, 
                technically trained and familiar with the 
                supplies or services purchased at the activity, 
                and
                  (B) whose principal duty shall be to assist 
                the Administration procurement center 
                representative in his duties and functions 
                relating to this section and section 637 of 
                this title, and
          (8) cooperate, and consult on a regular basis, with 
        the Administration with respect to carrying out the 
        functions and duties described in paragraph (4) of this 
        subsection, and
          (9) make recommendations to contracting officers as 
        to whether a particular contract requirement should be 
        awarded pursuant to subsection (a) of this section, or 
        section 637(a) of this title or section 2323 of Title 
        10. Such recommendations shall be made with due regard 
        to the requirements of subsection (m) of this section, 
        and the failure of the contracting officer to accept 
        any such recommendations shall be documented and 
        included within the appropriate contract file. This 
        subsection shall not apply to the Administration.
  (l) Breakout Procurement Center Representatives.--(1) The 
Administration shall assign to each major procurement center a 
breakout procurement center representative with such assistance 
as may be appropriate. The breakout procurement center 
representative shall carry out the activities described in 
paragraph (2), and shall be an advocate for the breakout of 
items for procurement through full and open competition, 
whenever appropriate, while maintaining the integrity of the 
system in which such items are used, and an advocate for the 
use of full and open competition, whenever appropriate, for the 
procurement of supplies and services by such center. Any 
breakout procurement center representative assigned under this 
subsection shall be in addition to the representative referred 
to in subsection (k)(6) of this section.
    (2) In addition to carrying out the responsibilities 
assigned by the Administration, a breakout procurement center 
representative is authorized to--
          (A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        as to whether requirements are to be procured through 
        other than full and open competition and make 
        recommendations with respect to such requirements to 
        the members of such conference or session;
          (B) review, at any time, restrictions on competition 
        previously imposed on items through acquisition method 
        coding or similar procedures, and recommend to 
        personnel of the appropriate activity the prompt 
        reevaluation of such limitations;
          (C) review restrictions on competition arising out of 
        restrictions on the rights of the United States in 
        technical data, and, when appropriate, recommend that 
        personnel of the appropriate activity initiate a review 
        of the validity of such an asserted restriction;
          (D) obtain from any governmental source, and make 
        available to personnel of the appropriate activity, 
        technical data necessary for the preparation of a 
        competitive solicitation package for any item of supply 
        or service previously procured noncompetitively due to 
        the unavailability of such technical data;
          (E) have access to procurement records and other data 
        of the procurement center commensurate with the level 
        of such representative's approved security clearance 
        classification;
          (F) receive unsolicited engineering proposals and, 
        when appropriate (i) conduct a value analysis of such 
        proposal to determine whether such proposal, if 
        adopted, will result in lower costs to the United 
        States without substantially impeding legitimate 
        acquisition objectives and forward to personnel of the 
        appropriate activity recommendations with respect to 
        such proposal, or (ii) forward such proposals without 
        analysis to personnel of the activity responsible for 
        reviewing such proposals and who shall furnish the 
        breakout procurement center representative with 
        information regarding the disposition of any such 
        proposal; and
          (G) review the systems that account for the 
        acquisition and management of technical data within the 
        procurement center to assure that such systems provide 
        the maximum availability and access to data needed for 
        the preparation of offers to sell to the United States 
        those supplies to which such data pertain which 
        potential offerors are entitled to receive.
    (3) A breakout procurement center representative is 
authorized to appeal the failure to act favorably on any 
recommendation made pursuant to paragraph (2). Such appeal 
shall be filed and processed in the same manner and subject to 
the same conditions and limitations as an appeal filed by the 
Administrator pursuant to subsection (a).
    (4) The Administration shall assign and co-locate at least 
two small business technical advisers to each major procurement 
center in addition to such other advisers as may be authorized 
from time to time. The sole duties of such advisers shall be to 
assist the breakout procurement center representative for the 
center to which such advisers are assigned in carrying out the 
functions described in paragraph (2) and the representatives 
referred to in subsection (k)(6) of this section.
    (5)(A) The breakout procurement center representatives and 
technical advisers assigned pursuant to this subsection shall 
be--
          (i) full-time employees of the Administration; and
          (ii) fully qualified, technically trained, and 
        familiar with the supplies and services procured by the 
        major procurement center to which they are assigned.
    (B) In addition to the requirements of subparagraph (A), 
each breakout procurement center representative, and at least 
one technical adviser assigned to such representative, shall be 
an accredited engineer.
    (C) The Administration shall establish personnel positions 
for breakout procurement representatives and advisers assigned 
pursuant to this subsection, which are classified at a grade 
level of the General Schedule sufficient to attract and retain 
highly qualified personnel.
    (6) For purposes of this subsection, the term ``major 
procurement center'' means a procurement center that, in the 
opinion of the Administrator, purchases substantial dollar 
amounts of other than commercial items and which has the 
potential to incur significant savings as the result of the 
placement of a breakout procurement center representative.
    (7)(A) At such times as the Administrator deems 
appropriate, the breakout procurement center representative 
shall conduct familiarization sessions for contracting officers 
and other appropriate personnel of the procurement center to 
which such representative is assigned. Such sessions shall 
acquaint the participants with the provisions of this 
subsection and shall instruct them in methods designed to 
further the purposes of such subsection.
    (B) The breakout procurement center representative shall 
prepare and personally deliver an annual briefing and report to 
the head of the procurement center to which such representative 
is assigned. Such briefing and report shall detail the past and 
planned activities of the representative and shall contain such 
recommendations for improvement in the operation of the center 
as may be appropriate. The head of such center shall personally 
receive such briefing and report and shall, within sixty 
calendar days after receipt, respond, in writing, to each 
recommendation made by such representative.
  (m) Relationship to Other Procurement Programs.--
          (1) Each agency subject to the requirements of 
        section 2323 of Title 10 shall, when implementing such 
        requirements--
                  (A) establish policies and procedures that 
                insure that there will be no reduction in the 
                number of dollar value of contracts awarded 
                pursuant to this section and section 637(a) of 
                this title in order to achieve any goal or 
                other program objective; and
                  (B) assure that such requirements will not 
                alter or change the procurement process used to 
                implement this section or section 637(a) of 
                this title.
          (2) All procurement center representatives (including 
        those referred to in subsection (k)(6) of this 
        section), in addition to such other duties as may be 
        assigned by the Administrator, shall--
                  (A) monitor the performance of the 
                procurement activities to which they are 
                assigned to ascertain the degree of compliance 
                with the requirements of paragraph (1);
                  (B) report to their immediate supervisors all 
                instances of noncompliance with such 
                requirements; and
                  (C) increase, insofar as possible, the number 
                and dollar value of procurements that may be 
                used for the programs established under this 
                section, section 637(a) of this title, and 
                section 2323 of Title 10.
  (n) Determination of Labor Surplus Areas.--For purposes of 
this section, the determination of labor surplus areas shall be 
made on the basis of the criteria in effect at the time of the 
determination, except that any minimum population criteria 
shall not exceed twenty-five thousand. Such determination, as 
modified by the preceding sentence, shall be made by the 
Secretary of Labor.
  (o) Costs of Contract Performance and Manufacturing.--
          (1) A concern may not be awarded a contract under 
        subsection (a) as a small business concern unless the 
        concern agrees that--
                  (A) in the case of a contract for services 
                (except construction), at least 50 percent of 
                the cost of contract performance incurred for 
                personnel shall be expended for employees of 
                the concern; and
                  (B) in the case of a contract for procurement 
                of supplies (other than procurement from a 
                regular dealer in such supplies), the concern 
                will perform work for at least 50 percent of 
                the cost of manufacturing the supplies (not 
                including the cost of materials).
          (2) The Administrator may change the percentage under 
        subparagraph (A) or (B) of paragraph (1) if the 
        Administrator determines that such change is necessary 
        to reflect conventional industry practices among 
        business concerns that are below the numerical size 
        standard for businesses in that industry category.
          (3) The Administration shall establish, through 
        public rulemaking, requirements similar to those 
        specified in paragraph (1) to be applicable to 
        contracts for general and specialty construction and to 
        contracts for any other industry category not otherwise 
        subject to the requirements of such paragraph. The 
        percentage applicable to any such requirement shall be 
        determined in accordance with paragraph (2).
          * * * * * * *
  The following list shows the section of 15 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:


------------------------------------------------------------------------
                 5 U.S.C.                    Requirements or Guidelines 
------------------------------------------------------------------------
644.......................................  13 C.F.R. 121; 20 C.F.R.    
                                             654; 48 C.F.R. 2819        
------------------------------------------------------------------------

                      TITLE 15--COMMERCE AND TRADE

          * * * * * * *

       CHAPTER 21--NATIONAL POLICY ON EMPLOYMENT AND PRODUCTIVITY

SEC. 1022. ECONOMIC REPORT OF PRESIDENT; COVERAGE; SUPPLEMENTARY 
                    REPORTS; REFERENCE TO CONGRESSIONAL JOINT 
                    COMMITTEE; PERCENTAGE RATE OF UNEMPLOYMENT; 
                    DEFINITIONS.

  (a) The President shall annually transmit to the Congress not 
later than 10 days after the submission of the budget under 
section 1105(a) of Title 31, United States Code, with copies 
transmitted to the Governor of each State and to other 
appropriate State and local officials, an economic report 
(hereinafter in this chapter referred to as the ``Economic 
Report'') together with the annual report of the Council of 
Economic Advisers submitted in accord with section 1023(c) of 
this title, setting forth--
          (1) the current and foreseeable trends in the levels 
        of employment, unemployment, production, capital 
        formation, real income, Federal budget outlays and 
        receipts, productivity, international trade and 
        payments, and prices, and a review and analysis of 
        recent domestic and international developments 
        affecting economic trends in the Nation;
          (2)(A) annual numerical goals for employment and 
        unemployment, production, real income, productivity, 
        Federal outlays as a proportion of gross national 
        product, and prices for the calendar year in which the 
        Economic Report is transmitted and for the following 
        calendar year, designated as short-term goals, which 
        shall be consistent with achieving as rapidly as 
        feasible the goals of full employment and production, 
        increased real income, balanced growth, fiscal policies 
        that would establish the share of an expanding gross 
        national product accounted for by Federal outlays at 
        the lowest level consistent with national needs and 
        priorities, a balanced Federal budget, adequate 
        productivity growth, price stability, achievement of an 
        improved trade balance, and proper attention to 
        national priorities; and
          (B) annual numerical goals as specified in 
        subparagraph (A) for the three successive calendar 
        years, designated as medium term goals;
          (3) employment objectives for certain significant 
        subgroups of the labor force, including youth, women, 
        minorities, handicapped persons, veterans, and middle-
        aged and older persons; and
          (4) a program for carrying out the policy declared in 
        section 1021 of this title, together with such 
        recommendations for legislation as the President may 
        deem necessary or desirable.
  (b) The President may transmit from time to time to the 
Congress reports supplementary to the Economic Report, each of 
which shall include such supplementary or revised 
recommendations as he may deem necessary or desirable to 
achieve the policy declared in section 1021 of this title.
  (c) The Economic Report, and all supplementary reports 
transmitted under subsection (b) of this section, shall, when 
transmitted to Congress, be referred to the joint committee 
created by section 1024 of this title.
  (d) For the purposes of the Full Employment and Balanced 
Growth Act of 1978 [15 U.S.C.A. Sec. 3101 et seq.], the 
percentage rate of unemployment as [FN1] a percentage of the 
civilian labor force as set forth by the Bureau of Labor 
Statistics in the Department of Labor as computed under the 
procedures in effect as of October 27, 1978.
  (e) For the purpose of the Full Employment and Balanced 
Growth Act of 1978 [15 U.S.C.A. Sec. 3101 et seq.], the terms 
``inflation'', ``prices'', and ``reasonable price stability'' 
refer to the rate of change or level of the consumer price 
index as set forth by the Bureau of Labor Statistics, United 
States Department of Labor.
      
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                    SELECTED PROVISIONS OF TITLE 39,

                          UNITED STATES CODE--

                             POSTAL SERVICE

======================================================================

      
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                     Provisions of Title 39 10
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                              ----------                              


                      TITLE 39, UNITED STATES CODE

                             POSTAL SERVICE

           PART III--MODERNIZATION AND FISCAL ADMINISTRATION

       CHAPTER 28--STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT
Sec. 2801.  Definitions.
Sec. 2802.  Strategic plans.
Sec. 2803.  Performance plans.
Sec. 2804.  Program performance reports.
Sec. 2805.  Inherently Governmental functions.
                        TITLE 39--POSTAL SERVICE

          * * * * * * *

           PART III--MODERNIZATION AND FISCAL ADMINISTRATION

       CHAPTER 28--STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT

SEC. 2801. DEFINITIONS.

    For purposes of this chapter the term--
          (1) ``outcome measure'' refers to an assessment of 
        the results of a program activity compared to its 
        intended purpose;
          (2) ``output measure'' refers to the tabulation, 
        calculation, or recording of activity or effort and can 
        be expressed in a quantitative or qualitative manner;
          (3) ``performance goal'' means a target level of 
        performance expressed as a tangible, measurable 
        objective, against which actual achievement shall be 
        compared, including a goal expressed as a quantitative 
        standard, value, or rate;
          (4) ``performance indicator'' refers to a particular 
        value or characteristic used to measure output or 
        outcome;
          (5) ``program activity'' means a specific activity 
        related to the mission of the Postal Service; and
          (6) ``program evaluation'' means an assessment, 
        through objective measurement and systematic analysis, 
        of the manner and extent to which Postal Service 
        programs achieve intended objectives.

SEC. 2802. STRATEGIC PLANS.

  (a) No later than September 30, 1997, the Postal Service 
shall submit to the President and the Congress a strategic plan 
for its program activities. Such plan shall contain--
          (1) a comprehensive mission statement covering the 
        major functions and operations of the Postal Service;
          (2) general goals and objectives, including outcome-
        related goals and objectives, for the major functions 
        and operations of the Postal Service;
          (3) a description of how the goals and objectives are 
        to be achieved, including a description of the 
        operational processes, skills and technology, and the 
        human, capital, information, and other resources 
        required to meet those goals and objectives;
          (4) a description of how the performance goals 
        included in the plan required under section 2803 shall 
        be related to the general goals and objectives in the 
        strategic plan;
          (5) an identification of those key factors external 
        to the Postal Service and beyond its control that could 
        significantly affect the achievement of the general 
        goals and objectives; and
          (6) a description of the program evaluations used in 
        establishing or revising general goals and objectives, 
        with a schedule for future program evaluations.
  (b) The strategic plan shall cover a period of not less than 
five years forward from the fiscal year in which it is 
submitted, and shall be updated and revised at least every 
three years.
  (c) The performance plan required under section 2803 shall be 
consistent with the Postal Service's strategic plan. A 
performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section.
  (d) When developing a strategic plan, the Postal Service 
shall solicit and consider the views and suggestions of those 
entities potentially affected by or interested in such a plan, 
and shall advise the Congress of the contents of the plan.

SEC. 2803. PERFORMANCE PLANS.

  (a) The Postal Service shall prepare an annual performance 
plan covering each program activity set forth in the Postal 
Service budget, which shall be included in the comprehensive 
statement presented under section 2401(g) of this title. Such 
plan shall--
          (1) establish performance goals to define the level 
        of performance to be achieved by a program activity;
          (2) express such goals in an objective, quantifiable, 
        and measurable form unless an alternative form is used 
        under subsection (b);
          (3) briefly describe the operational processes, 
        skills and technology, and the human, capital, 
        information, or other resources required to meet the 
        performance goals;
          (4) establish performance indicators to be used in 
        measuring or assessing the relevant outputs, service 
        levels, and outcomes of each program activity;
          (5) provide a basis for comparing actual program 
        results with the established performance goals; and
          (6) describe the means to be used to verify and 
        validate measured values.
  (b) If the Postal Service determines that it is not feasible 
to express the performance goals for a particular program 
activity in an objective, quantifiable, and measurable form, 
the Postal Service may use an alternative form. Such 
alternative form shall--
          (1) include separate descriptive statements of--
                  (A) a minimally effective program, and
                  (B) a successful program,
        with sufficient precision and in such terms that would 
        allow for an accurate, independent determination of 
        whether the program activity's performance meets the 
        criteria of either description; or
          (2) state why it is infeasible or impractical to 
        express a performance goal in any form for the program 
        activity.
  (c) In preparing a comprehensive and informative plan under 
this section, the Postal Service may aggregate, disaggregate, 
or consolidate program activities, except that any aggregation 
or consolidation may not omit or minimize the significance of 
any program activity constituting a major function or 
operation.
  (d) The Postal Service may prepare a non-public annex to its 
plan covering program activities or parts of program activities 
relating to--
          (1) the avoidance of interference with criminal 
        prosecution; or
          (2) matters otherwise exempt from public disclosure 
        under section 410(c) of this title.

SEC. 2804. PROGRAM PERFORMANCE REPORTS.

  (a) The Postal Service shall prepare a report on program 
performance for each fiscal year, which shall be included in 
the annual comprehensive statement presented under section 
2401(g) of this title.
  (b)(1) The program performance report shall set forth the 
performance indicators established in the Postal Service 
performance plan, along with the actual program performance 
achieved compared with the performance goals expressed in the 
plan for that fiscal year.
  (2) If performance goals are specified by descriptive 
statements of a minimally effective program activity and a 
successful program activity, the results of such program shall 
be described in relationship to those categories, including 
whether the performance failed to meet the criteria of either 
category.
  (c) The report for fiscal year 2000 shall include actual 
results for the preceding fiscal year, the report for fiscal 
year 2001 shall include actual results for the two preceding 
fiscal years, and the report for fiscal year 2002 and all 
subsequent reports shall include actual results for the three 
preceding fiscal years.
  (d) Each report shall--
          (1) review the success of achieving the performance 
        goals of the fiscal year;
          (2) evaluate the performance plan for the current 
        fiscal year relative to the performance achieved 
        towards the performance goals in the fiscal year 
        covered by the report;
          (3) explain and describe, where a performance goal 
        has not been met (including when a program activity's 
        performance is determined not to have met the criteria 
        of a successful program activity under section 
        2803(b)(2))--
                  (A) why the goal was not met;
                  (B) those plans and schedules for achieving 
                the established performance goal; and
                  (C) if the performance goal is impractical or 
                infeasible, why that is the case and what 
                action is recommended; and
          (4) include the summary findings of those program 
        evaluations completed during the fiscal year covered by 
        the report.

SEC. 2805. INHERENTLY GOVERNMENTAL FUNCTIONS.

  The functions and activities of this chapter shall be 
considered to be inherently Governmental functions. The 
drafting of strategic plans, performance plans, and program 
performance reports under this section shall be performed only 
by employees of the Postal Service.
          * * * * * * *
  The following list shows the section of 39 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
             39 U.S.C.                   Requirements or Guidelines     
------------------------------------------------------------------------
2801..............................  OMB: Circular A-11, see appendix IV 
2802..............................  OMB: Circular A-11, see appendix IV 
2803..............................  OMB: Circular A-11, See appendix IV 
------------------------------------------------------------------------

      
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                    SELECTED PROVISIONS OF TITLE 40,

                          UNITED STATES CODE--

                 PUBLIC BUILDINGS, PROPERTY, AND WORKS

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                     Provisions of Title 40 11
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                              ----------                              


                      TITLE 40, UNITED STATES CODE

                 PUBLIC BUILDINGS, PROPERTY, AND WORKS

       CHAPTER 10--MANAGEMENT AND DISPOSAL OF GOVERNMENT PROPERTY
                    Subchapter I--General Provisions
Sec. 472.  Definitions.
            TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

          * * * * * * *

       CHAPTER 10--MANAGEMENT AND DISPOSAL OF GOVERNMENT PROPERTY

                    Subchapter I--General Provisions

SEC. 472. DEFINITIONS.

  As used in titles I through VI of this Act--
          (a) The term ``executive agency'' means any executive 
        department or independent establishment in the 
        executive branch of the Government, including any 
        wholly owned Government corporation.
          (b) The term ``Federal agency'' means any executive 
        agency or any establishment in the legislative or 
        judicial branch of the Government (except the Senate, 
        the House of Representatives, and the Architect of the 
        Capitol and any activities under his direction).
          (c) The term ``Administrator'' means the 
        Administrator of General Services provided for in 
        chapter 16 of this title.
          (d) The term ``property'' means any interest in 
        property except (1) the public domain; lands reserved 
        or dedicated for national forest or national park 
        purposes; minerals in lands or portions of lands 
        withdrawn or reserved from the public domain which the 
        Secretary of the Interior determines are suitable for 
        disposition under the public land mining and mineral 
        leasing laws; and lands withdrawn or reserved from the 
        public domain except lands or portions of lands so 
        withdrawn or reserved which the Secretary of the 
        Interior, with the concurrence of the Administrator, 
        determines are not suitable for return to the public 
        domain for disposition under the general public-land 
        laws because such lands are substantially changed in 
        character by improvements or otherwise; (2) naval 
        vessels of the following categories: Battleships, 
        cruisers, aircraft carriers, destroyers, and 
        submarines; and (3) records of the Federal Government.
          (e) The term ``excess property'' means any property 
        under the control of any Federal agency which is not 
        required for its needs and the discharge of its 
        responsibilities, as determined by the head thereof.
          (f) The term ``foreign excess property'' means any 
        excess property located outside the States of the 
        Union, the District of Columbia, Puerto Rico, American 
        Samoa, Guam, the Trust Territory of the Pacific 
        Islands, and the Virgin Islands.
          (g) The term ``surplus property'' means any excess 
        property not required for the needs and the discharge 
        of the responsibilities of all Federal agencies, as 
        determined by the Administrator.
          (h) The term ``care and handling'' includes 
        completing, repairing, converting, rehabilitating, 
        operating, preserving, protecting, insuring, packing, 
        storing, handling, conserving, and transporting excess 
        and surplus property, and, in the case of property 
        which is dangerous to public health or safety, 
        destroying or rendering innocuous such property.
          (i) The term ``person'' includes any corporation, 
        partnership, firm, association, trust, estate, or other 
        entity.
          (j) The term ``nonpersonal services'' means such 
        contractual services, other than personal and 
        professional services, as the Administrator shall 
        designate.
          (k) The term ``contractor inventory'' means (1) any 
        property acquired by and in the possession of a 
        contractor or subcontractor under a contract pursuant 
        to the terms of which title is vested in the 
        Government, and in excess of the amounts needed to 
        complete full performance under the entire contract; 
        and (2) any property which the Government is obligated 
        or has the option to take over under any type of 
        contract as a result either of any changes in the 
        specifications or plans thereunder or of the 
        termination of such contract (or subcontract 
        thereunder), prior to completion of the work, for the 
        convenience or at the option of the Government.
          (l) The term ``motor vehicle'' means any vehicle, 
        self-propelled or drawn by mechanical power, designed 
        and operated principally for highway transportation of 
        property or passengers, exclusive of any vehicle 
        designed or used for military field training, combat, 
        or tactical purposes, or used principally within the 
        confines of a regularly established military post, 
        camp, or depot, and any vehicle regularly used by an 
        agency in the performance of investigative, law 
        enforcement, or intelligence duties if the head of such 
        agency determines that exclusive control of such 
        vehicle is essential to the effective performance of 
        such duties.
          * * * * * * *
  The following list shows the section of 40 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
             40 U.S.C.                   Requirements or Guidelines     
------------------------------------------------------------------------
472...............................  43 C.F.R. 2370                      
------------------------------------------------------------------------

     
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                    SELECTED PROVISIONS OF TITLE 41,

                          UNITED STATES CODE--

                            PUBLIC CONTRACTS

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                     Provisions of Title 41 12
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                      TITLE 41, UNITED STATES CODE

                            PUBLIC CONTRACTS

                     CHAPTER 1--GENERAL PROVISIONS
Sec. 5a. Definitions
Sec. 11. No contracts or purchases unless authorized or under 
adequate appropriation; report to Congress.
            CHAPTER 7--OFFICE OF FEDERAL PROCUREMENT POLICY
Sec. 422. Cost accounting standards board.
                      CHAPTER 9--CONTRACT DISPUTES
Sec. 601. Definitions.
Sec. 605. Decisions by contracting officer.
Sec. 611. Interest.
                       TITLE 41--PUBLIC CONTRACTS

          * * * * * * *

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 5a. DEFINITIONS.

  The word ``department'' as used in this Act shall be 
construed to include independent establishments, other 
agencies, wholly owned Government corporations (the 
transactions of which corporations shall be subject to the 
authorizations and limitations of this Act, except that section 
5 of this title shall apply to their administrative 
transactions only) and the Government of the District of 
Columbia, but shall not include the Senate, House of 
Representatives, or Office of the Architect of the Capitol, or 
the officers or employees thereof. The words ``continental 
United States'' as used herein shall be construed to mean the 
forty-eight States and the District of Columbia. The word 
``Government'' shall be construed to include the government of 
the District of Columbia. The word ``appropriation'' shall be 
construed as including funds made available by legislation 
under section 9104 of Title 31.

SEC. 11. NO CONTRACTS OR PURCHASES UNLESS AUTHORIZED OR UNDER ADEQUATE 
                    APPROPRIATION; REPORT TO CONGRESS.

  (a) No contract or purchase on behalf of the United States 
shall be made, unless the same is authorized by law or is under 
an appropriation adequate to its fulfillment, except in the 
Department of Defense and in the Department of Transportation 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, for clothing, subsistence, forage, fuel, 
quarters, transportation, or medical and hospital supplies, 
which, however, shall not exceed the necessities of the current 
year.
  (b) The Secretary of Defense and the Secretary of 
Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy shall immediately advise the 
Congress of the exercise of the authority granted in subsection 
(a) of this section, and shall report quarterly on the 
estimated obligations incurred pursuant to the authority 
granted in subsection (a) of this section.
                       TITLE 41--PUBLIC CONTRACTS

          * * * * * * *

            CHAPTER 7--OFFICE OF FEDERAL PROCUREMENT POLICY

SEC. 422. COST ACCOUNTING STANDARDS BOARD.

  (a) Establishment; Membership; Terms.--(1) There is 
established within the Office of Federal Procurement Policy an 
independent board to be known as the ``Cost Accounting 
Standards Board'' (hereinafter referred to as the ``Board''). 
The Board shall consist of 5 members, including the 
Administrator, who shall serve as Chairman, and 4 members, all 
of whom shall have experience in Government contract cost 
accounting, and who shall be appointed as follows:
          (A) two representatives of the Federal Government--
                  (i) one of whom shall be a representative of 
                the Department of Defense and be appointed by 
                the Secretary of Defense; and
                  (ii) one of whom shall be an officer or 
                employee of the General Services Administration 
                appointed by the Administrator of General 
                Services; and
          (B) two individuals from the private sector, each of 
        whom shall be appointed by the Administrator and--
                  (i) one of whom shall be a representative of 
                industry; and
                  (ii) one of whom shall be particularly 
                knowledgeable about cost accounting problems 
                and systems.
  (2)(A) The term of office of each of the members of the 
Board, other than the Administrator for Federal Procurement 
Policy, shall be 4 years, except that--
          (i) of the initial members, two shall be appointed 
        for terms of two years, one shall be appointed for a 
        term of three years, and one shall be appointed for a 
        term of four years;
          (ii) any member appointed to fill a vacancy in the 
        Board shall serve for the remainder of the term for 
        which his predecessor was appointed; and
          (iii) no individual who is appointed under paragraph 
        (1)(A) of this subsection shall continue to serve after 
        ceasing to be an officer or employee of the agency from 
        which he or she was appointed.
  (B) A vacancy on the Board shall be filled in the same manner 
in which the original appointment was made.
  (C) The initial members of the Board shall be appointed 
within 120 days after November 17, 1988.
  (b) Senior Staff.--The Administrator, after consultation with 
the Board, may appoint an executive secretary and two 
additional staff members without regard to the provisions of 
Title 5, governing appointments in the competitive service, and 
may pay such employees without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates, 
except that no individual so appointed may receive pay in 
excess of the annual rate of basic pay payable for GS-18 of the 
General Schedule.
  (c) Other Staff.--The Administrator may appoint, fix the 
compensation, and remove additional employees of the Board 
under the applicable provisions of Title 5.
  (d) Detailed and Temporary Personnel.--(1) The Board may use, 
without reimbursement, any personnel of a Federal agency (with 
the consent of the head of the agency concerned) to serve on 
advisory committees and task forces to assist the Board in 
carrying out the functions and responsibilities of the Board 
under this section.
  (2) The Administrator, after consultation with the Board, may 
procure temporary and intermittent services under section 
3109(b) of Title 5, of personnel for the purpose of serving on 
advisory committees and task forces to assist the Board in 
carrying out the functions and responsibilities of the Board 
under this section.
  (e) Compensation.--Except as otherwise provided in subsection 
(a) of this section the members of the Board who are officers 
or employees of the Federal Government, and officers and 
employees of other agencies of the Federal Government who are 
used under subsection (d)(1) of this section shall receive no 
additional compensation for services, but shall continue to be 
compensated by the employing Department or agency of such 
officer or employee. Each member of the Board appointed from 
private life shall receive compensation at a rate not to exceed 
the daily equivalent of the rate prescribed for level IV of the 
Executive Schedule for each day (including travel time) in 
which the member is engaged in the actual performance of duties 
vested in the Board. Individuals hired under subsection (d)(2) 
of this section may receive compensation at rates fixed by the 
Administrator, but not to exceed the daily equivalent of the 
rate prescribed for level V of the Federal Executive Salary 
Schedule under section 5316 of Title 5, for each day (including 
travel time) in which such appointees are properly engaged in 
the actual performance of duties under this section. While 
serving away from homes or the regular place of business, Board 
members and other appointees serving on an intermittent basis 
under this section shall be allowed travel expenses in 
accordance with section 5703 of Title 5.
  (f) Cost Accounting Standards Authority.--(1) The Board shall 
have the exclusive authority to make, promulgate, amend, and 
rescind cost accounting standards and interpretations thereof 
designed to achieve uniformity and consistency in the cost 
accounting standards governing measurement, assignment, and 
allocation of costs to contracts with the United States.
  (2)(A) Cost accounting standards promulgated under this 
section shall be mandatory for use by all executive agencies 
and by contractors and subcontractors in estimating, 
accumulating, and reporting costs in connection with pricing 
and administration of, and settlement of disputes concerning, 
all negotiated prime contract and subcontract procurements with 
the United States in excess of $500,000.
  (B) Subparagraph (A) does not apply to the following 
contracts or subcontracts:
          (i) Contracts or subcontracts where the price 
        negotiated is based on established catalog or market 
        prices of commercial items sold in substantial 
        quantities to the general public.
          (ii) Contracts or subcontracts where the price 
        negotiated is based on prices set by law or regulation.
          (iii) Any other firm fixed-price contract or 
        subcontract (without cost incentives) for commercial 
        items.
  (C) In this paragraph, the term ``subcontract'' includes a 
transfer of commercial items between divisions, subsidiaries, 
or affiliates of a contractor or subcontractor.
  (3) The Administrator, after consultation with the Board, 
shall prescribe rules and procedures governing actions of the 
Board under this section. Such rules and procedures shall 
require that any cost accounting standard promulgated, amended, 
or rescinded (and interpretations thereof) shall be adopted by 
majority vote of the Board members.
  (4) The Board is authorized--
          (A) to exempt classes or categories of contractors 
        and subcontractors from the requirements of this 
        section; and
          (B) to establish procedures for the waiver of the 
        requirements of this section with respect to individual 
        contracts and subcontracts.
  (g) Requirements for Standards.--(1) Prior to the 
promulgation under this section of cost accounting standards 
and interpretations thereof, the Board shall--
          (A) take into account, after consultation and 
        discussions with the Comptroller General and 
        professional accounting organizations, contractors, and 
        other interested parties--
                  (i) the probable costs of implementation, 
                including inflationary effects, if any, 
                compared to the probable benefits;
                  (ii) the advantages, disadvantages, and 
                improvements anticipated in the pricing and 
                administration of, and settlement of disputes 
                concerning, contracts; and
                  (iii) the scope of, and alternatives 
                available to, the action proposed to be taken;
          (B) prepare and publish a report in the Federal 
        Register on the issues reviewed under paragraph (1)(A);
          (C)(i) publish an advanced notice of proposed 
        rulemaking in the Federal Register in order to solicit 
        comments on the report prepared pursuant to 
        subparagraph (B);
          (ii) provide all parties affected a period of not 
        less than 60 days after such publication to submit 
        their views and comments; and
          (iii) during this 60-day period, consult with the 
        Comptroller General and consider any recommendation the 
        Comptroller General may make; and
          (D) publish a notice of such proposed rulemaking in 
        the Federal Register and provide all parties affected a 
        period of not less than 60 days after such publication 
        to submit their views and comments.
    (2) Rules, regulations, cost accounting standards, and 
modifications thereof promulgated or amended under this section 
shall have the full force and effect of law, and shall become 
effective within 120 days after publication in the Federal 
Register in final form, unless the Board determines a longer 
period is necessary. Implementation dates for contractors and 
subcontractors shall be determined by the Board, but in no 
event shall such dates be later than the beginning of the 
second fiscal year of the contractor or subcontractor after the 
standard becomes effective. Rules, regulations, cost accounting 
standards, and modifications thereof promulgated or amended 
under this section shall be accompanied by prefatory comments 
and by illustrations, if necessary.
    (3) The functions exercised under this section are excluded 
from the operation of sections 551, 553 through 559, and 701 
through 706 of Title 5.
  (h) Implementing Regulations.--(1) The Board shall promulgate 
rules and regulations for the implementation of cost accounting 
standards promulgated or interpreted under subsection (f) of 
this section. Such regulations shall be incorporated into the 
Federal Acquisition Regulation and shall require contractors 
and subcontractors as a condition of contracting with the 
United States to--
          (A) disclose in writing their cost accounting 
        practices, including methods of distinguishing direct 
        costs from indirect costs and the basis used for 
        allocating indirect costs; and
          (B) agree to a contract price adjustment, with 
        interest, for any increased costs paid to such 
        contractor or subcontractor by the United States by 
        reason of a change in the contractor's or 
        subcontractor's cost accounting practices or by reason 
        of a failure by the contractor or subcontractor to 
        comply with applicable cost accounting standards.
  (2) If the United States and a contractor or subcontractor 
fail to agree on a contract price adjustment, including whether 
the contractor or subcontractor has complied with the 
applicable cost accounting standards, the disagreement will 
constitute a dispute under the Contract Disputes Act (41 U.S.C. 
601).
  (3) Any contract price adjustment undertaken pursuant to 
paragraph (1)(B) shall be made, where applicable, on relevant 
contracts between the United States and the contractor that are 
subject to the cost accounting standards so as to protect the 
United States from payment, in the aggregate, of increased 
costs (as defined by the Board). In no case shall the 
Government recover costs greater than the increased cost (as 
defined by the Board) to the Government, in the aggregate, on 
the relevant contracts subject to the price adjustment, unless 
the contractor made a change in its cost accounting practices 
of which it was aware or should have been aware at the time of 
the price negotiation and which it failed to disclose to the 
Government.
  (4) The interest rate applicable to any contract price 
adjustment shall be the annual rate of interest established 
under section 6621 of Title 26 for such period. Such interest 
shall accrue from the time payments of the increased costs were 
made to the contractor or subcontractor to the time the United 
States receives full compensation for the price adjustment.
  (i) Reports to Congress.--The Board shall report to the 
Congress not later than one year after November 17, 1988, and 
annually thereafter, with respect to the activities and 
operations of the Board under this section, together with such 
recommendations as it considers appropriate.
  (j) Effect on Other Standards and Regulations.--(1) All cost 
accounting standards, waivers, exemptions, interpretations, 
modifications, rules, and regulations promulgated by the Cost 
Accounting Standards Board under section 2168 of this Appendix 
to Title 5 (50 U.S.C. App. 2168) shall remain in effect unless 
and until amended, superseded, or rescinded by the Board 
pursuant to this section.
  (2) Existing cost accounting standards referred to in 
paragraph (1) shall be subject to the provisions of this Act in 
the same manner as if promulgated by the Board under this 
chapter.
  (3) The Administrator, under the authority set forth in 
section 405 of this title, shall ensure that no regulation or 
proposed regulation of an executive agency is inconsistent with 
a cost accounting standard promulgated or amended under this 
section by rescinding or denying the promulgation of any such 
inconsistent regulation or proposed regulation and taking such 
other action authorized under section 405 of this title as may 
be appropriate.
  (4) Costs which are the subject of cost accounting standards 
promulgated under this section shall not be subject to 
regulations that are established by another executive agency 
that differ from such standards with respect to the 
measurement, assignment, and allocation of such costs.
  (k) Examinations.--For the purpose of determining whether a 
contractor or subcontractor has complied with cost accounting 
standards promulgated under this section and has followed 
consistently the contractor's or subcontractor's disclosed cost 
accounting practices, any authorized representative of the head 
of the agency concerned, of the offices of inspector general 
established pursuant to the Inspector General Act of 1978, or 
of the Comptroller General of the United States shall have the 
right to examine and make copies of any documents, papers, or 
records of such contractor or subcontractor relating to 
compliance with such cost accounting standards.
  (l) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out the 
provisions of this section.
          * * * * * * *
  The following list shows the section of 41 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
             41 U.S.C.                   Requirements or Guidelines     
------------------------------------------------------------------------
422...............................  48 C.F.R. 9900, 9901, 9903-9905     
                                    OMB: Circular A-21, see appendix IV 
                                    CASB: Cost Accounting Standards     
                                     Board, see appendix VIII           
------------------------------------------------------------------------

                       TITLE 41--PUBLIC CONTRACTS

          * * * * * * *

                      CHAPTER 9--CONTRACT DISPUTES

SEC. 601. DEFINITIONS

  As used in this chapter--
          (1) the term ``agency head'' means the head and any 
        assistant head of an executive agency, and may ``upon 
        the designation by'' the head of an executive agency 
        include the chief official of any principal division of 
        the agency;
          (2) the term ``executive agency'' means an executive 
        department as defined in section 101 of Title 5, an 
        independent establishment as defined by section 104 of 
        Title 5 (except that it shall not include the General 
        Accounting Office): a military department as defined by 
        section 102 of Title 5, and a wholly owned Government 
        corporation as defined by section 9101(3) of Title 31, 
        the United States Postal Service, and the Postal Rate 
        Commission;
          (3) The term ``contracting officer'' means any person 
        who, by appointment in accordance with applicable 
        regulations, has the authority to enter into and 
        administer contracts and make determinations and 
        findings with respect thereto. The term also includes 
        the authorized representative of the contracting 
        officer, acting within the limits of his authority;
          (4) the term ``contractor'' means a party to a 
        Government contract other than the Government;
          (5) The term ``Administrator'' means the 
        Administrator for Federal Procurement Policy appointed 
        pursuant to the Office of Federal Procurement Policy 
        Act [41 U.S.C.A. Sec. 401 et seq.];
          (6) The term ``agency board'' means an agency board 
        of contract appeals established under section 607 of 
        this title; and
          (7) The term ``misrepresentation of fact'' means a 
        false statement of substantive fact, or any conduct 
        which leads to a belief of a substantive fact material 
        to proper understanding of the matter in hand, made 
        with intent to deceive or mislead.

SEC. 605. DECISION BY CONTRACTING OFFICER.

  (a) Contractor Claims.--All claims by a contractor against 
the government relating to a contract shall be in writing and 
shall be submitted to the contracting officer for a decision. 
All claims by the government against a contractor relating to a 
contract shall be the subject of a decision by the contracting 
officer. Each claim by a contractor against the government 
relating to a contract and each claim by the government against 
a contractor relating to a contract shall be submitted within 6 
years after the accrual of the claim. The preceding sentence 
does not apply to a claim by the government against a 
contractor that is based on a claim by the contractor involving 
fraud. The contracting officer shall issue his decisions in 
writing, and shall mail or otherwise furnish a copy of the 
decision to the contractor. The decision shall state the 
reasons for the decision reached, and shall inform the 
contractor of his rights as provided in this chapter. Specific 
findings of fact are not required, but, if made, shall not be 
binding in any subsequent proceeding. The authority of this 
subsection shall not extend to a claim or dispute for penalties 
or forfeitures prescribed by statute or regulation which 
another Federal agency is specifically authorized to 
administer, settle, or determine. This section shall not 
authorize any agency head to settle, compromise, pay, or 
otherwise adjust any claim involving fraud.
  (b) Review; Performance of Contract Pending Appeal.--The 
contracting officer's decision on the claim shall be final and 
conclusive and not subject to review by any forum, tribunal, or 
Government agency, unless an appeal or suit is timely commenced 
as authorized by this chapter. Nothing in this chapter shall 
prohibit executive agencies from including a clause in 
government contracts requiring that pending final decision of 
an appeal, action, or final settlement, a contractor shall 
proceed diligently with performance of the contract in 
accordance with the contracting officer's decision.
  (c) Amount of Claim; Certification; Notification; Time of 
Issuance; Presumption; Authorization of Certifier.--(1) A 
contracting officer shall issue a decision on any submitted 
claim of $100,000 or less within sixty days from his receipt of 
a written request from the contractor that a decision be 
rendered within that period. For claims of more than $100,000, 
the contractor shall certify that the claim is made in good 
faith, that the supporting data are accurate and complete to 
the best of his knowledge and belief, that the amount requested 
accurately reflects the contract adjustment for which the 
contractor believes the government is liable, and that the 
certifier is duly authorized to certify the claim on behalf of 
the contractor.
  (2) A contracting officer shall, within sixty days of receipt 
of a submitted certified claim over $100,000--
          (A) issue a decision; or
          (B) notify the contractor of the time within which a 
        decision will be issued.
  (3) The decision of a contracting officer on submitted claims 
shall be issued within a reasonable time, in accordance with 
regulations promulgated by the agency, taking into account such 
factors as the size and complexity of the claim and the 
adequacy of the information in support of the claim provided by 
the contractor.
  (4) A contractor may request the tribunal concerned to direct 
a contracting officer to issue a decision in a specified period 
of time, as determined by the tribunal concerned, in the event 
of undue delay on the part of the contracting officer.
  (5) Any failure by the contracting officer to issue a 
decision on a contract claim within the period required will be 
deemed to be a decision by the contracting officer denying the 
claim and will authorize the commencement of the appeal or suit 
on the claim as otherwise provided in this chapter. However, in 
the event an appeal or suit is so commenced in the absence of a 
prior decision by the contracting officer, the tribunal 
concerned may, at its option, stay the proceedings to obtain a 
decision on the claim by the contracting officer.
  (6) The contracting officer shall have no obligation to 
render a final decision on any claim of more than $100,000 that 
is not certified in accordance with paragraph (1) if, within 60 
days after receipt of the claim, the contracting officer 
notifies the contractor in writing of the reasons why any 
attempted certification was found to be defective. A defect in 
the certification of a claim shall not deprive a court or an 
agency board of contract appeals of jurisdiction over that 
claim. Prior to the entry of a final judgment by a court or a 
decision by an agency board of contract appeals, the court or 
agency board shall require a defective certification to be 
corrected.
  (7) The certification required by paragraph (1) may be 
executed by any person duly authorized to bind the contractor 
with respect to the claim.
  (d) Alternative Means of Dispute Resolution.--Notwithstanding 
any other provision of this chapter, a contractor and a 
contracting officer may use any alternative means of dispute 
resolution under subchapter IV of chapter 5 of Title 5, or 
other mutually agreeable procedures, for resolving claims. In a 
case in which such alternative means of dispute resolution or 
other mutually agreeable procedures are used, the contractor 
shall certify that the claim is made in good faith, that the 
supporting data are accurate and complete to the best of his or 
her knowledge and belief, and that the amount requested 
accurately reflects the contract adjustment for which the 
contractor believes the Government is liable. All provisions of 
subchapter IV of chapter 5 of Title 5 shall apply to such 
alternative means of dispute resolution.
  (e) Cessation of Authority in Dispute Resolution; Procedures 
Regarding Small Business Contractors.--The authority of 
agencies to engage in alternative means of dispute resolution 
proceedings under subsection (d) of this section shall cease to 
be effective on October 1, 1999, except that such authority 
shall continue in effect with respect to then pending dispute 
resolution proceedings which, in the judgment of the agencies 
that are parties to such proceedings, require such 
continuation, until such proceedings terminate. In any case in 
which the contracting officer rejects a contractor's request 
for alternative dispute resolution proceedings, the contracting 
officer shall provide the contractor with a written 
explanation, citing one or more of the conditions in section 
572(b) of Title 5, or such other specific reasons that 
alternative dispute resolution procedures are inappropriate for 
the resolution of the dispute. In any case in which a 
contractor rejects a request of an agency for alternative 
dispute resolution proceedings, the contractor shall inform the 
agency in writing of the contractor's specific reasons for 
rejecting the request.

SEC. 611. INTEREST.

  Interest on amounts found due contractors on claims shall be 
paid to the contractor from the date the contracting officer 
receives the claim pursuant to section 605(a) of this title 
from the contractor until payment thereof. The interest 
provided for in this section shall be paid at the rate 
established by the Secretary of the Treasury pursuant to Public 
Law 92-41 (85 Stat. 97) for the Renegotiation Board.
          * * * * * * *
  The following list shows the section of 41 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
             41 U.S.C.                   Requirements or Guidelines     
------------------------------------------------------------------------
601-613...........................  7 C.F.R. 24; 24 C.F.R. 20; 38 C.F.R.
                                     1; 43 C.F.R. 4; 48 C.F.R. 6101     
------------------------------------------------------------------------

      
======================================================================


                    SELECTED PROVISIONS OF TITLE 44,

                          UNITED STATES CODE--

                     PUBLIC PRINTING AND DOCUMENTS

======================================================================

      
                     Table of Sections of Selected

                     Provisions of Title 44 13
---------------------------------------------------------------------------

    \13\ This table of sections is not part of Title 44 but is included 
for the convenience of the reader.
---------------------------------------------------------------------------
                              ----------                              


                      TITLE 44, UNITED STATES CODE

                     PUBLIC PRINTING AND DOCUMENTS

         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY
Sec. 3502.  Definitions.
                TITLE 44--PUBLIC PRINTING AND DOCUMENTS

          * * * * * * *

         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

SEC. 3502. DEFINITIONS.

  As used in this chapter--
          (1) the term ``agency'' means any executive 
        department, military department, Government 
        corporation, Government controlled corporation, or 
        other establishment in the executive branch of the 
        Government (including the Executive Office of the 
        President), or any independent regulatory agency, but 
        does not include--
                  (A) the General Accounting Office;
                  (B) Federal Election Commission;
                  (C) the governments of the District of 
                Columbia and of the territories and possessions 
                of the United States, and their various 
                subdivisions; or
                  (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in 
                national defense research and production 
                activities;
          (2) the term ``burden'' means time, effort, or 
        financial resources expended by persons to generate, 
        maintain, or provide information to or for a Federal 
        agency, including the resources expended for--
                  (A) reviewing instructions;
                  (B) acquiring, installing, and utilizing 
                technology and systems;
                  (C) adjusting the existing ways to comply 
                with any previously applicable instructions and 
                requirements;
                  (D) searching data sources;
                  (E) completing and reviewing the collection 
                of information; and
                  (F) transmitting, or otherwise disclosing the 
                information;
          (3) the term ``collection of information''--
                  (A) means the obtaining, causing to be 
                obtained, soliciting, or requiring the 
                disclosure to third parties or the public, of 
                facts or opinions by or for an agency, 
                regardless of form or format, calling for 
                either--
                          (i) answers to identical questions 
                        posed to, or identical reporting or 
                        recordkeeping requirements imposed on, 
                        ten or more persons, other than 
                        agencies, instrumentalities, or 
                        employees of the United States; or
                          (ii) answers to questions posed to 
                        agencies, instrumentalities, or 
                        employees of the United States which 
                        are to be used for general statistical 
                        purposes; and
                  (B) shall not include a collection of 
                information described under section 3518(c)(1);
          (4) the term ``Director'' means the Director of the 
        Office of Management and Budget;
          (5) the term ``independent regulatory agency'' means 
        the Board of Governors of the Federal Reserve System, 
        the Commodity Futures Trading Commission, the Consumer 
        Product Safety Commission, the Federal Communications 
        Commission, the Federal Deposit Insurance Corporation, 
        the Federal Energy Regulatory Commission, the Federal 
        Housing Finance Board, the Federal Maritime Commission, 
        the Federal Trade Commission, the Interstate Commerce 
        Commission, the Mine Enforcement Safety and Health 
        Review Commission, the National Labor Relations Board, 
        the Nuclear Regulatory Commission, the Occupational 
        Safety and Health Review Commission, the Postal Rate 
        Commission, the Securities and Exchange Commission, and 
        any other similar agency designated by statute as a 
        Federal independent regulatory agency or commission;
          (6) the term ``information resources'' means 
        information and related resources, such as personnel, 
        equipment, funds, and information technology;
          (7) the term ``information resources management'' 
        means the process of managing information resources to 
        accomplish agency missions and to improve agency 
        performance, including through the reduction of 
        information collection burdens on the public;
          (8) the term ``information system'' means a discrete 
        set of information resources organized for the 
        collection, processing, maintenance, use, sharing, 
        dissemination, or disposition of information;
          (9) the term ``information technology'' has the same 
        meaning as the term ``automatic data processing 
        equipment'' as defined by section 111(a)(2) and 
        (3)(C)(i) through (v) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 
        759(a)(2) and (3)(C)(i) through (v));
          (10) the term ``person'' means an individual, 
        partnership, association, corporation, business trust, 
        or legal representative, an organized group of 
        individuals, a State, territorial, tribal, or local 
        government or branch thereof, or a political 
        subdivision of a State, territory, tribal, or local 
        government or a branch of a political subdivision;
          (11) the term ``practical utility'' means the ability 
        of an agency to use information, particularly the 
        capability to process such information in a timely and 
        useful fashion;
          (12) the term ``public information'' means any 
        information, regardless of form or format, that an 
        agency discloses, disseminates, or makes available to 
        the public;
          (13) the term ``recordkeeping requirement'' means a 
        requirement imposed by or for an agency on persons to 
        maintain specified records, including a requirement 
        to--
                  (A) retain such records;
                  (B) notify third parties, the Federal 
                Government, or the public of the existence of 
                such records;
                  (C) disclose such records to third parties, 
                the Federal Government, or the public; or
                  (D) report to third parties, the Federal 
                Government, or the public regarding such 
                records; and
          (14) the term ``penalty'' includes the imposition by 
        an agency or court of a fine or other punishment; a 
        judgment for monetary damages or equitable relief; or 
        the revocation, suspension, reduction, or denial of a 
        license, privilege, right, grant, or benefit.
          * * * * * * *
  The following list shows the section of 44 U.S.C. and the 
related requirements or guidelines issued by federal agencies 
or entities:

------------------------------------------------------------------------
             44 U.S.C.                   Requirements or Guidelines     
------------------------------------------------------------------------
3501-3520.........................  18 C.F.R. 389; 41 C.F.R. 60-999; 46 
                                     C.F.R. 501; 50 C.F.R. 204          
------------------------------------------------------------------------

      
======================================================================


                            DEBT COLLECTION

                            IMPROVEMENT ACT

                                OF 1996

======================================================================

      
            Debt Collection Improvement Act of 1996 14
---------------------------------------------------------------------------

    \14\ This Act is Section 31001 of Public Law 104-134, the ``Omnibus 
Consolidated Rescissions and Appropriations Act of 1996,'' enacted on 
April 26, 1996.
---------------------------------------------------------------------------

                          (Public Law 104-134)

  (a)(1) This section may be cited as the ``Debt Collection 
Improvement Act of 1996''.
  (2)(A) In General.--The provisions of this section and the 
amendments made by this section shall take effect on the date 
of the enactment of this Act.
  (B) Offsets From Social Security Payments, Etc.--Subparagraph 
(A) of section 3716(c)(3) of title 31, United States Code (as 
added by subsection (d)(2) of this section), shall apply only 
to payments made after the date which is 4 months after the 
date of the enactment of this Act.
  (b) The purposes of this section are the following:
          (1) To maximize collections of delinquent debts owed 
        to the Government by ensuring quick action to enforce 
        recovery of debts and the use of all appropriate 
        collection tools.
          (2) To minimize the costs of debt collection by 
        consolidating related functions and activities and 
        utilizing interagency teams.
          (3) To reduce losses arising from debt management 
        activities by requiring proper screening of potential 
        borrowers, aggressive monitoring of all accounts, and 
        sharing of information within and among Federal 
        agencies.
          (4) To ensure that the public is fully informed of 
        the Federal Government's debt collection policies and 
        that debtors are cognizant of their financial 
        obligations to repay amounts owed to the Federal 
        Government.
          (5) To ensure that debtors have all appropriate due 
        process rights, including the ability to verify, 
        challenge, and compromise claims, and access to 
        administrative appeals procedures which are both 
        reasonable and protect the interests of the United 
        States.
          (6) To encourage agencies, when appropriate, to sell 
        delinquent debt, particularly debts with underlying 
        collateral.
          (7) To rely on the experience and expertise of 
        private sector professionals to provide debt collection 
        services to Federal agencies.
  (c) Chapter 37 of title 31, United States Code, is amended--
          (1) in each of sections 3711, 3716, 3717, and 3718, 
        by striking ``the head of an executive or legislative 
        agency'' each place it appears and inserting ``the head 
        of an executive, judicial, or legislative agency''; and
          (2) by amending section 3701(a)(4) to read as 
        follows:
          ``(4) `executive, judicial, or legislative agency' 
        means a department, agency, court, court administrative 
        office, or instrumentality in the executive, judicial, 
        or legislative branch of Government, including 
        government corporations.''
  (d)(1) Persons Subject to Administrative Offset.--Section 
3701(c) of title 31, United States Code, is amended to read as 
follows:
  ``(c) In sections 3716 and 3717 of this title, the term 
`person' does not include an agency of the United States 
Government.''
  (2) Requirements and Procedures.--Section 3716 of title 31, 
United States Code, is amended--
          (A) by amending subsection (b) to read as follows:
  ``(b) Before collecting a claim by administrative offset, the 
head of an executive, judicial, or legislative agency must 
either--
          ``(1) adopt, without change, regulations on 
        collecting by administrative offset promulgated by the 
        Department of Justice, the General Accounting Office, 
        or the Department of the Treasury; or
          ``(2) prescribe regulations on collecting by 
        administrative offset consistent with the regulations 
        referred to in paragraph (1).'';
          (B) by amending subsection (c)(2) to read as follows:
          ``(2) when a statute explicitly prohibits using 
        administrative offset or setoff to collect the claim or 
        type of claim involved.''
          (C) by redesignating subsection (c) as subsection 
        (e); and
          (D) by inserting after subsection (b) the following 
        new subsections:
  ``(c)(1)(A) Except as otherwise provided in this subsection, 
a disbursing official of the Department of the Treasury, the 
Department of Defense, the United States Postal Service, or any 
other government corporation, or any disbursing official of the 
United States designated by the Secretary of the Treasury, 
shall offset at least annually the amount of a payment which a 
payment certifying agency has certified to the disbursing 
official for disbursement, by an amount equal to the amount of 
a claim which a creditor agency has certified to the Secretary 
of the Treasury pursuant to this subsection.
  ``(B) An agency that designates disbursing officials pursuant 
to section 3321(c) of this title is not required to certify 
claims arising out of its operations to the Secretary of the 
Treasury before such agency's disbursing officials offset such 
claims.
  ``(C) Payments certified by the Department of Education under 
a program administered by the Secretary of Education under 
title IV of the Higher Education Act of 1965 shall not be 
subject to administrative offset under this subsection.
  ``(2) Neither the disbursing official nor the payment 
certifying agency shall be liable--
          ``(A) for the amount of the administrative offset on 
        the basis that the underlying obligation, represented 
        by the payment before the administrative offset was 
        taken, was not satisfied; or
          ``(B) for failure to provide timely notice under 
        paragraph (8).
  ``(3)(A)(i) Notwithstanding any other provision of law 
(including sections 207 and 1631(d)(1) of the Social Security 
Act (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of Public 
Law 91-173 (30 U.S.C. 923(b)), and section 14 of the Act of 
August 29, 1935 (45 U.S.C. 231m)), except as provided in clause 
(ii), all payments due to an individual under--
          ``(I) the Social Security Act,
          ``(II) part B of the Black Lung Benefits Act, or
          ``(III) any law administered by the Railroad 
        Retirement Board (other than payments that such Board 
        determines to be tier 2 benefits), shall be subject to 
        offset under this section.
  ``(ii) An amount of $9,000 which a debtor may receive under 
Federal benefit programs cited under clause (i) within a 12-
month period shall be exempt from offset under this subsection. 
In applying the $9,000 exemption, the disbursing official 
shall--
          ``(I) reduce the $9,000 exemption amount for the 12-
        month period by the amount of all Federal benefit 
        payments made during such 12-month period which are not 
        subject to offset under this subsection; and
          ``(II) apply a prorated amount of the exemption to 
        each periodic benefit payment to be made to the debtor 
        during the applicable 12-month period.
For purposes of the preceding sentence, the amount of a 
periodic benefit payment shall be the amount after any 
reduction or deduction required under the laws authorizing the 
program under which such payment is authorized to be made 
(including any reduction or deduction to recover any 
overpayment under such program).
  ``(B) The Secretary of the Treasury shall exempt from 
administrative offset under this subsection payments under 
means-tested programs when requested by the head of the 
respective agency. The Secretary may exempt other payments from 
administrative offset under this subsection upon the written 
request of the head of a payment certifying agency. A written 
request for exemption of other payments must provide 
justification for the exemption under standards prescribed by 
the Secretary. Such standards shall give due consideration to 
whether administrative offset would tend to interfere 
substantially with or defeat the purposes of the payment 
certifying agency's program. The Secretary shall report to the 
Congress annually on exemptions granted under this section.
  ``(C) The provisions of sections 205(b)(1) and 1631(c)(1) of 
the Social Security Act shall not apply to any administrative 
offset executed pursuant to this section against benefits 
authorized by either title II or title XVI of the Social 
Security Act, respectively.
  ``(4) The Secretary of the Treasury may charge a fee 
sufficient to cover the full cost of implementing this 
subsection. The fee may be collected either by the retention of 
a portion of amounts collected pursuant to this subsection, or 
by billing the agency referring or transferring a claim for 
those amounts. Fees charged to the agencies shall be based on 
actual administrative offsets completed. Amounts received by 
the United States as fees under this subsection shall be 
deposited into the account of the Department of the Treasury 
under section 3711(g)(7) of this title, and shall be collected 
and accounted for in accordance with the provisions of that 
section.
  ``(5) The Secretary of the Treasury in consultation with the 
Commissioner of Social Security and the Director of the Office 
of Management and Budget, may prescribe such rules, 
regulations, and procedures as the Secretary of the Treasury 
considers necessary to carry out this subsection. The Secretary 
shall consult with the heads of affected agencies in the 
development of such rules, regulations, and procedures.
  ``(6) Any Federal agency that is owed by a person a past due, 
legally enforceable nontax debt that is over 180 days 
delinquent, including nontax debt administered by a third party 
acting as an agent for the Federal Government, shall notify the 
Secretary of the Treasury of all such nontax debts for purposes 
of administrative offset under this subsection.
  ``(7)(A) The disbursing official conducting an administrative 
offset with respect to a payment to a payee shall notify the 
payee in writing of--
          ``(i) the occurrence of the administrative offset to 
        satisfy a past due legally enforceable debt, including 
        a description of the type and amount of the payment 
        otherwise payable to the payee against which the offset 
        was executed;
          ``(ii) the identity of the creditor agency requesting 
        the offset; and
          ``(iii) a contact point within the creditor agency 
        that will handle concerns regarding the offset.
  ``(B) If the payment to be offset is a periodic benefit 
payment, the disbursing official shall take reasonable steps, 
as determined by the Secretary of the Treasury, to provide the 
notice to the payee not later than the date on which the payee 
is otherwise scheduled to receive the payment, or as soon as 
practical thereafter, but no later than the date of the 
administrative offset. Notwithstanding the preceding sentence, 
the failure of the debtor to receive such notice shall not 
impair the legality of such administrative offset.
  ``(8) A levy pursuant to the Internal Revenue Code of 1986 
shall take precedence over requests for administrative offset 
pursuant to other laws.
  ``(d) Nothing in this section is intended to prohibit the use 
of any other administrative offset authority existing under 
statute or common law.''.
  (3) Nontax Debt or Claim Defined.--Section 3701 of title 31, 
United States Code, is amended in subsection (a) by adding at 
the end the following new paragraph:
          ``(8) `nontax' means, with respect to any debt or 
        claim, any debt or claim other than a debt or claim 
        under the Internal Revenue Code of 1986.''.
  (4) Treasury Check Withholding.--Section 3712 of title 31, 
United States Code, is amended by adding at the end the 
following new subsection:
  ``(e) Treasury Check Offset.--
          ``(1) In general.--To facilitate collection of 
        amounts owed by presenting banks pursuant to subsection 
        (a) or (b), upon the direction of the Secretary, a 
        Federal reserve bank shall withhold credit from banks 
        presenting Treasury checks for ultimate charge to the 
        account of the United States Treasury. By presenting 
        Treasury checks for payment a presenting bank is deemed 
        to authorize this offset.
          ``(2) Attempt to collect required.--Prior to 
        directing offset under subsection (a)(1), the Secretary 
        shall first attempt to collect amounts owed in the 
        manner provided by sections 3711 and 3716.''
  (e) Section 3716 of title 31, United States Code, as amended 
by subsection (d)(2) of this section, is further amended by 
adding at the end the following new subsections:
  ``(f) The Secretary may waive the requirements of sections 
552a(o) and (p) of title 5 for administrative offset or claims 
collection upon written certification by the head of a State or 
an executive, judicial, or legislative agency seeking to 
collect the claim that the requirements of subsection (a) of 
this section have been met.
  ``(g) The Data Integrity Board of the Department of the 
Treasury established under 552a(u) of title 5 shall review and 
include in reports under paragraph (3)(D) of that section a 
description of any matching activities conducted under this 
section. If the Secretary has granted a waiver under subsection 
(f) of this section, no other Data Integrity Board is required 
to take any action under section 552a(u) of title 5.''.
  (f) Section 3716 of title 31, United States Code, as amended 
by subsections (d) and (e) of this section, is further amended 
by adding at the end the following new subsection:
  ``(h)(1) The Secretary may, in the discretion of the 
Secretary, apply subsection (a) with respect to any past-due, 
legally-enforceable debt owed to a State if--
          ``(A) the appropriate State disbursing official 
        requests that an offset be performed; and
          ``(B) a reciprocal agreement with the State is in 
        effect which contains, at a minimum--
                  ``(i) requirements substantially equivalent 
                to subsection (b) of this section; and
                  ``(ii) any other requirements which the 
                Secretary considers appropriate to facilitate 
                the offset and prevent duplicative efforts.
  ``(2) This subsection does not apply to--
          ``(A) the collection of a debt or claim on which the 
        administrative costs associated with the collection of 
        the debt or claim exceed the amount of the debt or 
        claim;
          ``(B) any collection of any other type, class, or 
        amount of claim, as the Secretary considers necessary 
        to protect the interest of the United States; or
          ``(C) the disbursement of any class or type of 
        payment exempted by the Secretary of the Treasury at 
        the request of a Federal agency.
  ``(3) In applying this section with respect to any debt owed 
to a State, subsection (c)(3)(A) shall not apply.''.
  (g)(1) Title 31.--Title 31, United States Code, is amended--
          (A) in section 3322(a), by inserting ``section 3716 
        and section 3720A of this title and'' after ``Except as 
        provided in'';
          (B) in section 3325(a)(3), by inserting ``or pursuant 
        to payment intercepts or offsets pursuant to section 
        3716 or 3720A of this title,'' after ``voucher''; and
          (C) in each of sections 3711(e)(2) and 3717(h) by 
        inserting ``, the Secretary of the Treasury,'' after 
        ``Attorney General''.
  (2) Internal Revenue Code of 1986.--Subparagraph (A) of 
section 6103(l)(10) of the Internal Revenue Code of 1986 (26 
U.S.C. 6103(l)(10)) is amended by inserting ``and to officers 
and employees of the Department of the Treasury in connection 
with such reduction'' after ``6402''.
  (h) Section 5514 of title 5, United States Code, is amended--
          (A) in subsection (a)--
                  (i) by adding at the end of paragraph (1) the 
                following: ``All Federal agencies to which 
                debts are owed and which have outstanding 
                delinquent debts shall participate in a 
                computer match at least annually of their 
                delinquent debt records with records of Federal 
                employees to identify those employees who are 
                delinquent in repayment of those debts. The 
                preceding sentence shall not apply to any debt 
                under the Internal Revenue Code of 1986. 
                Matched Federal employee records shall include, 
                but shall not be limited to, records of active 
                Civil Service employees government-wide, 
                military active duty personnel, military 
                reservists, United States Postal Service 
                employees, employees of other government 
                corporations, and seasonal and temporary 
                employees. The Secretary of the Treasury shall 
                establish and maintain an interagency 
                consortium to implement centralized salary 
                offset computer matching, and promulgate 
                regulations for this program. Agencies that 
                perform centralized salary offset computer 
                matching services under this subsection are 
                authorized to charge a fee sufficient to cover 
                the full cost for such services.'';
                  (ii) by redesignating paragraphs (3) and (4) 
                as paragraphs (4) and (5), respectively;
                  (iii) by inserting after paragraph (2) the 
                following new paragraph:
          ``(3) Paragraph (2) shall not apply to routine intra-
        agency adjustments of pay that are attributable to 
        clerical or administrative errors or delays in 
        processing pay documents that have occurred within the 
        four pay periods preceding the adjustment and to any 
        adjustment that amounts to $50 or less, if at the time 
        of such adjustment, or as soon thereafter as practical, 
        the individual is provided written notice of the nature 
        and the amount of the adjustment and a point of contact 
        for contesting such adjustment.''; and
                  (iv) by amending paragraph (5)(B) (as 
                redesignated by clause (ii) of this 
                subparagraph) to read as follows:
                  ``(B) `agency' includes executive departments 
                and agencies, the United States Postal Service, 
                the Postal Rate Commission, the United States 
                Senate, the United States House of 
                Representatives, and any court, court 
                administrative office, or instrumentality in 
                the judicial or legislative branches of the 
                Government, and government corporations.'';
          (B) by adding after subsection (c) the following new 
        subsection:
  ``(d) A levy pursuant to the Internal Revenue Code of 1986 
shall take precedence over other deductions under this 
section.''.
  (i)(1) In General.--Section 7701 of title 31, United States 
Code, is amended by adding at the end the following new 
subsections:
  ``(c)(1) The head of each Federal agency shall require each 
person doing business with that agency to furnish to that 
agency such person's taxpayer identifying number.
  ``(2) For purposes of this subsection, a person shall be 
considered to be doing business with a Federal agency if the 
person is--
          ``(A) a lender or servicer in a Federal guaranteed or 
        insured loan program administered by the agency;
          ``(B) an applicant for, or recipient of, a Federal 
        license, permit, right-of-way, grant, or benefit 
        payment administered by the agency or insurance 
        administered by the agency;
          ``(C) a contractor of the agency;
          ``(D) assessed a fine, fee, royalty or penalty by the 
        agency; and
          ``(E) in a relationship with the agency that may give 
        rise to a receivable due to that agency, such as a 
        partner of a borrower in or a guarantor of a Federal 
        direct or insured loan administered by the agency.
  ``(3) Each agency shall disclose to a person required to 
furnish a taxpayer identifying number under this subsection its 
intent to use such number for purposes of collecting and 
reporting on any delinquent amounts arising out of such 
person's relationship with the Government.
  ``(4) For purposes of this subsection, a person shall not be 
treated as doing business with a Federal agency solely by 
reason of being a debtor under third party claims of the United 
States. The preceding sentence shall not apply to a debtor 
owing claims resulting from petroleum pricing violations or 
owing claims resulting from Federal loan or loan guarantee/
insurance programs.
  ``(d) Notwithstanding section 552a(b) of title 5, United 
States Code, creditor agencies to which a delinquent claim is 
owed, and their agents, may match their debtor records with 
Department of Health and Human Services, and Department of 
Labor records to obtain names (including names of employees), 
name controls, names of employers, taxpayer identifying 
numbers, addresses (including addresses of employers), and 
dates of birth. The preceding sentence shall apply to the 
disclosure of taxpayer identifying numbers only if such 
disclosure is not otherwise prohibited by section 6103 of the 
Internal Revenue Code of 1986. The Department of Health and 
Human Services, and the Department of Labor shall release that 
information to creditor agencies and may charge reasonable fees 
sufficient to pay the costs associated with that release.''.
  (2) Included Federal Loan Program Defined.--Subparagraph (C) 
of section 6103(l)(3) of the Internal Revenue Code of 1986 
(relating to disclosure that applicant for Federal loan has tax 
delinquent account) is amended to read as follows:
          ``(C) Included federal loan program defined.--For 
        purposes of this paragraph, the term `included Federal 
        loan program' means any program under which the United 
        States or a Federal agency makes, guarantees, or 
        insures loans.''.
  (3) Clerical Amendments.--
          (A) The chapter title to chapter 77 of subtitle VI of 
        title 31, United States Code, is amended to read as 
        follows:
       ``CHAPTER 77--ACCESS TO INFORMATION FOR DEBT COLLECTION''.
          (B) The table of chapters for subtitle VI of title 
        31, United States Code, is amended by inserting before 
        the item relating to chapter 91 the following new item:

``77. Access to information for debt collection..................7701''.

  (j)(1) In General.--Title 31, United States Code, is amended 
by inserting after section 3720A the following new section:

``SEC. 3720B. BARRING DELINQUENT FEDERAL DEBTORS FROM OBTAINING FEDERAL 
                    LOANS OR LOAN INSURANCE GUARANTEES.

  ``(a) Unless this subsection is waived by the head of a 
Federal agency, a person may not obtain any Federal financial 
assistance in the form of a loan (other than a disaster loan) 
or loan insurance or guarantee administered by the agency if 
the person has an outstanding debt (other than a debt under the 
Internal Revenue Code of 1986) with any Federal agency which is 
in a delinquent status, as determined under standards 
prescribed by the Secretary of the Treasury. Such a person may 
obtain additional loans or loan guarantees only after such 
delinquency is resolved in accordance with those standards. The 
Secretary of the Treasury may exempt, at the request of an 
agency, any class of claims.
  ``(b) The head of a Federal agency may delegate the waiver 
authority under subsection (a) to the Chief Financial Officer 
of the agency. The waiver authority may be redelegated only to 
the Deputy Chief Financial Officer of the agency.''
  (2) Clerical Amendment.--The table of sections for subchapter 
II of chapter 37 of title 31, United States Code, is amended by 
inserting after the item relating to section 3720A the 
following new item:

``3720B. BARRING DELINQUENT FEDERAL DEBTORS FROM OBTAINING FEDERAL 
                    LOANS OR LOAN INSURANCE GUARANTEES.''.

  (k) Section 3711(f) of title 31, United States Code, is 
amended--
          (1) by striking ``may'' the first place it appears 
        and inserting ``shall'';
          (2) by striking ``an individual'' each place it 
        appears and inserting ``a person'';
          (3) by striking ``the individual'' each place it 
        appears and inserting ``the person''; and
          (4) by adding at the end the following new 
        paragraphs:
          ``(4) The head of each executive agency shall 
        require, as a condition for insuring or guaranteeing 
        any loan, financing, or other extension of credit under 
        any law to a person, that the lender provide 
        information relating to the extension of credit to 
        consumer reporting agencies or commercial reporting 
        agencies, as appropriate.
          ``(5) The head of each executive agency may provide 
        to a consumer reporting agency or commercial reporting 
        agency information from a system of records that a 
        person is responsible for a claim which is current, if 
        notice required by section 552a(e)(4) of title 5 
        indicates that information in the system may be 
        disclosed to a consumer reporting agency or commercial 
        reporting agency, respectively.''.
  (l) Section 3718 of title 31, United States Code, is 
amended--
          (1) in subsection (a), by striking the first sentence 
        and inserting the following: ``Under conditions the 
        head of an executive, judicial, or legislative agency 
        considers appropriate, the head of the agency may enter 
        into a contract with a person for collection service to 
        recover indebtedness owed, or to locate or recover 
        assets of, the United States Government. The head of an 
        agency may not enter into a contract under the 
        preceding sentence to locate or recover assets of the 
        United States held by a State government or financial 
        institution unless that agency has established 
        procedures approved by the Secretary of the Treasury to 
        identify and recover such assets.''; and
          (2) in subsection (d), by inserting ``, or to locate 
        or recover assets of,'' after ``owed''.
  (m)(1) In General.--Section 3711 of title 31, United States 
Code, is amended by adding at the end the following new 
subsections:
  ``(g)(1) If a nontax debt or claim owed to the United States 
has been delinquent for a period of 180 days--
          ``(A) the head of the executive, judicial, or 
        legislative agency that administers the program that 
        gave rise to the debt or claim shall transfer the debt 
        or claim to the Secretary of the Treasury; and
          ``(B) upon such transfer the Secretary of the 
        Treasury shall take appropriate action to collect or 
        terminate collection actions on the debt or claim.
  ``(2) Paragraph (1) shall not apply--
          ``(A) to any debt or claim that--
                  ``(i) is in litigation or foreclosure;
                  ``(ii) will be disposed of under an asset 
                sales program within 1 year after becoming 
                eligible for sale, or later than 1 year if 
                consistent with an asset sales program and a 
                schedule established by the agency and approved 
                by the Director of the Office of Management and 
                Budget;
                  ``(iii) has been referred to a private 
                collection contractor for collection for a 
                period of time determined by the Secretary of 
                the Treasury;
                  ``(iv) has been referred by, or with the 
                consent of, the Secretary of the Treasury to a 
                debt collection center for a period of time 
                determined by the Secretary of the Treasury; or
                  ``(v) will be collected under internal 
                offset, if such offset is sufficient to collect 
                the claim within 3 years after the date the 
                debt or claim is first delinquent; and
          ``(B) to any other specific class of debt or claim, 
        as determined by the Secretary of the Treasury at the 
        request of the head of an executive, judicial, or 
        legislative agency or otherwise.
  ``(3) For purposes of this section, the Secretary of the 
Treasury may designate, and withdraw such designation of debt 
collection centers operated by other Federal agencies. The 
Secretary of the Treasury shall designate such centers on the 
basis of their performance in collecting delinquent claims owed 
to the Government.
  ``(4) At the discretion of the Secretary of the Treasury, 
referral of a nontax claim may be made to--
          ``(A) any executive department or agency operating a 
        debt collection center for servicing, collection, 
        compromise, or suspension or termination of collection 
        action;
          ``(B) a private collection contractor operating under 
        a contract for servicing or collection action; or
          ``(C) the Department of Justice for litigation.
  ``(5) Nontax claims referred or transferred under this 
section shall be serviced, collected, or compromised, or 
collection action thereon suspended or terminated, in 
accordance with otherwise applicable statutory requirements and 
authorities. Executive departments and agencies operating debt 
collection centers may enter into agreements with the Secretary 
of the Treasury to carry out the purposes of this subsection. 
The Secretary of the Treasury shall--
          ``(A) maintain competition in carrying out this 
        subsection;
          ``(B) maximize collections of delinquent debts by 
        placing delinquent debts quickly;
          ``(C) maintain a schedule of private collection 
        contractors and debt collection centers eligible for 
        referral of claims; and
          ``(D) refer delinquent debts to the person most 
        appropriate to collect the type or amount of claim 
        involved.
  ``(6) Any agency operating a debt collection center to which 
nontax claims are referred or transferred under this subsection 
may charge a fee sufficient to cover the full cost of 
implementing this subsection. The agency transferring or 
referring the nontax claim shall be charged the fee, and the 
agency charging the fee shall collect such fee by retaining the 
amount of the fee from amounts collected pursuant to this 
subsection. Agencies may agree to pay through a different 
method, or to fund an activity from another account or from 
revenue received from the procedure described under section 
3720C of this title. Amounts charged under this subsection 
concerning delinquent claims may be considered as costs 
pursuant to section 3717(e) of this title.
  ``(7) Notwithstanding any other law concerning the depositing 
and collection of Federal payments, including section 3302(b) 
of this title, agencies collecting fees may retain the fees 
from amounts collected. Any fee charged pursuant to this 
subsection shall be deposited into an account to be determined 
by the executive department or agency operating the debt 
collection center charging the fee (in this subsection referred 
to in this section as the `Account'). Amounts deposited in the 
Account shall be available until expended to cover costs 
associated with the implementation and operation of 
Governmentwide debt collection activities. Costs properly 
chargeable to the Account include--
          ``(A) the costs of computer hardware and software, 
        word processing and telecommunications equipment, and 
        other equipment, supplies, and furniture;
          ``(B) personnel training and travel costs;
          ``(C) other personnel and administrative costs;
          ``(D) the costs of any contract for identification, 
        billing, or collection services; and
          ``(E) reasonable costs incurred by the Secretary of 
        the Treasury, including services and utilities provided 
        by the Secretary, and administration of the Account.
  ``(8) Not later than January 1 of each year, there shall be 
deposited into the Treasury as miscellaneous receipts an amount 
equal to the amount of unobligated balances remaining in the 
Account at the close of business on September 30 of the 
preceding year, minus any part of such balance that the 
executive department or agency operating the debt collection 
center determines is necessary to cover or defray the costs 
under this subsection for the fiscal year in which the deposit 
is made.
  ``(9) Before discharging any delinquent debt owed to any 
executive, judicial, or legislative agency, the head of such 
agency shall take all appropriate steps to collect such debt, 
including (as applicable)--
          ``(A) administrative offset,
          ``(B) tax refund offset,
          ``(C) Federal salary offset,
          ``(D) referral to private collection contractors,
          ``(E) referral to agencies operating a debt 
        collection center,
          ``(F) reporting delinquencies to credit reporting 
        bureaus,
          ``(G) garnishing the wages of delinquent debtors, and
          ``(H) litigation or foreclosure.
  ``(10) To carry out the purposes of this subsection, the 
Secretary of the Treasury may prescribe such rules, 
regulations, and procedures as the Secretary considers 
necessary and transfer such funds from funds appropriated to 
the Department of the Treasury as may be necessary to meet 
existing liabilities and obligations incurred prior to the 
receipt of revenues that result from debt collections.
  ``(h)(1) The head of an executive, judicial, or legislative 
agency acting under subsection (a) (1), (2), or (3) of this 
section to collect a claim, compromise a claim, or terminate 
collection action on a claim may obtain a consumer report (as 
that term is defined in section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681a)) or comparable credit 
information on any person who is liable for the claim.
  ``(2) The obtaining of a consumer report under this 
subsection is deemed to be a circumstance or purpose authorized 
or listed under section 604 of the Fair Credit Reporting Act 
(15 U.S.C. 1681b).''.
  (2) Returns Relating to Cancellation of Indebtedness by 
Certain Entities.--
          (A) In general.--Subsection (a) of section 6050P of 
        the Internal Revenue Code of 1986 (relating to returns 
        relating to the cancellation of indebtedness by certain 
        financial entities) is amended by striking ``applicable 
        financial entity'' and inserting ``applicable entity''.
          (B) Entities to which requirement applies.--
        Subsection (c) of section 6050P of such Code is 
        amended--
                  (i) by redesignating paragraphs (1) and (2) 
                as paragraphs (2) and (3), respectively, and 
                inserting before paragraph (2) (as so 
                redesignated) the following new paragraph:
  ``(1) Applicable Entity.--The term `applicable entity' 
means--
          ``(A) an executive, judicial, or legislative agency 
        (as defined in section 3701(a)(4) of title 31, United 
        States Code), and
          ``(B) an applicable financial entity.'', and
                  (ii) in paragraph (3), as so redesignated, by 
                striking ``(1)(B)'' and inserting ``(1)(A) or 
                (2)(B)''.
          (C) Alternative procedure.--Section 6050P of such 
        Code is amended by adding at the end the following new 
        subsection:
    ``(e) Alternative Procedure.--In lieu of making a return 
required under subsection (a), an agency described in 
subsection (c)(1)(A) may submit to the Secretary (at such time 
and in such form as the Secretary may by regulations prescribe) 
information sufficient for the Secretary to complete such a 
return on behalf of such agency. Upon receipt of such 
information, the Secretary shall complete such return and 
provide a copy of such return to such agency.''
          (D) Conforming amendments.--
                  (i) Subsection (d) of section 6050P of such 
                Code is amended by striking ``applicable 
                financial entity'' and inserting ``applicable 
                entity''.
                  (ii) The heading of section 6050P of such 
                Code is amended to read as follows:

``SEC. 6050P. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY 
                    CERTAIN ENTITIES.''

                  (iii) The table of sections for subpart B of 
                part III of subchapter A of chapter 61 of such 
                Code is amended by striking the item relating 
                to section 6050P and inserting the following 
                new item:

``Sec. 6050P. Returns relating to the cancellation of indebtedness by 
          certain entities.''

    (n) Effective October 1, 1995, section 11 of the 
Administrative Dispute Resolution Act (Public Law 101-552, 5 
U.S.C. 571 note) shall not apply to the amendment made by 
section 8(b) of such Act.
    (o)(1) In General.--Chapter 37 of title 31, United States 
Code, is amended in subchapter II by adding after section 
3720C, as added by subsection (t) of this section, the 
following new section:

``SEC. 3720D. GARNISHMENT.

  ``(a) Notwithstanding any provision of State law, the head of 
an executive, judicial, or legislative agency that administers 
a program that gives rise to a delinquent nontax debt owed to 
the United States by an individual may in accordance with this 
section garnish the disposable pay of the individual to collect 
the amount owed, if the individual is not currently making 
required repayment in accordance with any agreement between the 
agency head and the individual.
  ``(b) In carrying out any garnishment of disposable pay of an 
individual under subsection (a), the head of an executive, 
judicial, or legislative agency shall comply with the following 
requirements:
          ``(1) The amount deducted under this section for any 
        pay period may not exceed 15 percent of disposable pay, 
        except that a greater percentage may be deducted with 
        the written consent of the individual.
          ``(2) The individual shall be provided written 
        notice, sent by mail to the individual's last known 
        address, a minimum of 30 days prior to the initiation 
        of proceedings, from the head of the executive, 
        judicial, or legislative agency, informing the 
        individual of--
                  ``(A) the nature and amount of the debt to be 
                collected;
                  ``(B) the intention of the agency to initiate 
                proceedings to collect the debt through 
                deductions from pay; and
                  ``(C) an explanation of the rights of the 
                individual under this section.
          ``(3) The individual shall be provided an opportunity 
        to inspect and copy records relating to the debt.
          ``(4) The individual shall be provided an opportunity 
        to enter into a written agreement with the executive, 
        judicial, or legislative agency, under terms agreeable 
        to the head of the agency, to establish a schedule for 
        repayment of the debt.
          ``(5) The individual shall be provided an opportunity 
        for a hearing in accordance with subsection (c) on the 
        determination of the head of the executive, judicial, 
        or legislative agency concerning--
                  ``(A) the existence or the amount of the 
                debt, and
                  ``(B) in the case of an individual whose 
                repayment schedule is established other than by 
                a written agreement pursuant to paragraph (4), 
                the terms of the repayment schedule.
          ``(6) If the individual has been reemployed within 12 
        months after having been involuntarily separated from 
        employment, no amount may be deducted from the 
        disposable pay of the individual until the individual 
        has been reemployed continuously for at least 12 
        months.
  ``(c)(1) A hearing under subsection (b)(5) shall be provided 
prior to issuance of a garnishment order if the individual, on 
or before the 15th day following the mailing of the notice 
described in subsection (b)(2), and in accordance with such 
procedures as the head of the executive, judicial, or 
legislative agency may prescribe, files a petition requesting 
such a hearing.
  ``(2) If the individual does not file a petition requesting a 
hearing prior to such date, the head of the agency shall 
provide the individual a hearing under subsection (a)(5) upon 
request, but such hearing need not be provided prior to 
issuance of a garnishment order.
  ``(3) The hearing official shall issue a final decision at 
the earliest practicable date, but not later than 60 days after 
the filing of the petition requesting the hearing.
  ``(d) The notice to the employer of the withholding order 
shall contain only such information as may be necessary for the 
employer to comply with the withholding order.
  ``(e)(1) An employer may not discharge from employment, 
refuse to employ, or take disciplinary action against an 
individual subject to wage withholding in accordance with this 
section by reason of the fact that the individual's wages have 
been subject to garnishment under this section, and such 
individual may sue in a State or Federal court of competent 
jurisdiction any employer who takes such action.
  ``(2) The court shall award attorneys' fees to a prevailing 
employee and, in its discretion, may order reinstatement of the 
individual, award punitive damages and back pay to the 
employee, or order such other remedy as may be reasonably 
necessary.
  ``(f)(1) The employer of an individual--
          ``(A) shall pay to the head of an executive, 
        judicial, or legislative agency as directed in a 
        withholding order issued in an action under this 
        section with respect to the individual, and
          ``(B) shall be liable for any amount that the 
        employer fails to withhold from wages due an employee 
        following receipt by such employer of notice of the 
        withholding order, plus attorneys' fees, costs, and, in 
        the court's discretion, punitive damages.
  ``(2)(A) The head of an executive, judicial, or legislative 
agency may sue an employer in a State or Federal court of 
competent jurisdiction to recover amounts for which the 
employer is liable under paragraph (1)(B).
  ``(B) A suit under this paragraph may not be filed before the 
termination of the collection action, unless earlier filing is 
necessary to avoid expiration of any applicable statute of 
limitations period.
  ``(3) Notwithstanding paragraphs (1) and (2), an employer 
shall not be required to vary its normal pay and disbursement 
cycles in order to comply with this subsection.
  ``(g) For the purpose of this section, the term `disposable 
pay' means that part of the compensation of any individual from 
an employer remaining after the deduction of any amounts 
required by any other law to be withheld.
  ``(h) The Secretary of the Treasury shall issue regulations 
to implement this section.''.
    (2) Clerical Amendment.--The table of sections for 
subchapter II of chapter 37 of title 31, United States Code, is 
amended by inserting after the item relating to section 3720C 
(as added by subsection (t) of this section) the following new 
item:

  ``Sec. 3720D. Garnishment''.

  (p) Section 3711 of title 31, United States Code, as amended 
by subsection (m) of this section, is further amended by adding 
at the end the following new subsection:
  ``(i)(1) The head of an executive, judicial, or legislative 
agency may sell, subject to section 504(b) of the Federal 
Credit Reform Act of 1990 and using competitive procedures, any 
nontax debt owed to the United States that is delinquent for 
more than 90 days. Appropriate fees charged by a contractor to 
assist in the conduct of a sale under this subsection may be 
payable from the proceeds of the sale.
  ``(2) After terminating collection action, the head of an 
executive, judicial, or legislative agency shall sell, using 
competitive procedures, any nontax debt or class of nontax 
debts owed to the United States, if the Secretary of the 
Treasury determines the sale is in the best interests of the 
United States.
  ``(3) Sales of nontax debt under this subsection--
          ``(A) shall be for--
                  ``(i) cash, or
                  ``(ii) cash and a residuary equity or profit 
                participation, if the head of the agency 
                reasonably determines that the proceeds will be 
                greater than sale solely for cash,
          ``(B) shall be without recourse, but may include the 
        use of guarantees if otherwise authorized, and
          ``(C) shall transfer to the purchaser all rights of 
        the Government to demand payment of the nontax debt, 
        other than with respect to a residuary equity or profit 
        participation under subparagraph (A)(ii).
  ``(4)(A) Within one year after the date of enactment of the 
Debt Collection Improvement Act of 1996, each executive agency 
with current and delinquent collateralized nontax debts shall 
report to the Congress on the valuation of its existing 
portfolio of loans, notes and guarantees, and other 
collateralized debts based on standards developed by the 
Director of the Office of Management and Budget, in 
consultation with the Secretary of the Treasury.
  ``(B) The Director of the Office of Management and Budget 
shall determine what information is required to be reported to 
comply with subparagraph (A). At a minimum, for each financing 
account and for each liquidating account (as those terms are 
defined in sections 502(7) and 502(8), respectively, of the 
Federal Credit Reform Act of 1990) the following information 
shall be reported:
          ``(i) The cumulative balance of current debts 
        outstanding, the estimated net present value of such 
        debts, the annual administrative expenses of those 
        debts (including the portion of salaries and expenses 
        that are directly related thereto), and the estimated 
        net proceeds that would be received by the Government 
        if such debts were sold.
          ``(ii) The cumulative balance of delinquent debts, 
        debts outstanding, the estimated net present value of 
        such debts, the annual administrative expenses of those 
        debts (including the portion of salaries and expenses 
        that are directly related thereto), and the estimated 
        net proceeds that would be received by the Government 
        if such debts were sold.
          ``(iii) The cumulative balance of guaranteed loans 
        outstanding, the estimated net present value of such 
        guarantees, the annual administrative expenses of such 
        guarantees (including the portion of salaries and 
        expenses that are directly related to such guaranteed 
        loans), and the estimated net proceeds that would be 
        received by the Government if such loan guarantees were 
        sold.
          ``(iv) The cumulative balance of defaulted loans that 
        were previously guaranteed and have resulted in loans 
        receivables, the estimated net present value of such 
        loan assets, the annual administrative expenses of such 
        loan assets (including the portion of salaries and 
        expenses that are directly related to such loan 
        assets), and the estimated net proceeds that would be 
        received by the Government if such loan assets were 
        sold.
          ``(v) The marketability of all debts.
  ``(5) This subsection is not intended to limit existing 
statutory authority of agencies to sell loans, debts, or other 
assets.''.
  (q) Section 3717 of title 31, United States Code, is amended 
by adding at the end of subsection (h) the following new 
subsection:
  ``(i)(1) The head of an executive, judicial, or legislative 
agency may increase an administrative claim by the cost of 
living adjustment in lieu of charging interest and penalties 
under this section. Adjustments under this subsection will be 
computed annually.
  ``(2) For the purpose of this subsection--
          ``(A) the term `cost of living adjustment' means the 
        percentage by which the Consumer Price Index for the 
        month of June of the calendar year preceding the 
        adjustment exceeds the Consumer Price Index for the 
        month of June of the calendar year in which the claim 
        was determined or last adjusted; and
          ``(B) the term `administrative claim' includes all 
        debt that is not based on an extension of Government 
        credit through direct loans, loan guarantees, or 
        insurance, including fines, penalties, and 
        overpayments.''.
  (r)(1) In General.--Chapter 37 of title 31, United States 
Code, is amended in subchapter II by adding after section 
3720D, as added by subsection (o) of this section, the 
following new section:

``Sec. 3720E. Dissemination of information regarding identity of 
                    delinquent debtors

  ``(a) The head of any agency may, with the review of the 
Secretary of the Treasury, for the purpose of collecting any 
delinquent nontax debt owed by any person, publish or otherwise 
publicly disseminate information regarding the identity of the 
person and the existence of the nontax debt.
  ``(b)(1) The Secretary of the Treasury, in consultation with 
the Director of the Office of Management and Budget and the 
heads of other appropriate Federal agencies, shall issue 
regulations establishing procedures and requirements the 
Secretary considers appropriate to carry out this section.
  ``(2) Regulations under this subsection shall include--
          ``(A) standards for disseminating information that 
        maximize collections of delinquent nontax debts, by 
        directing actions under this section toward delinquent 
        debtors that have assets or income sufficient to pay 
        their delinquent nontax debt;
          ``(B) procedures and requirements that prevent 
        dissemination of information under this section 
        regarding persons who have not had an opportunity to 
        verify, contest, and compromise their nontax debt in 
        accordance with this subchapter; and
          ``(C) procedures to ensure that persons are not 
        incorrectly identified pursuant to this section.''.
  (2) Clerical Amendment.--The table of sections for subchapter 
II of chapter 37 of title 31, United States Code, is amended by 
adding after the item relating to section 3720D (as added by 
subsection (o) of this section) the following new item:

``3720E. Dissemination of information regarding identity of delinquent 
debtors.''.

  (s)(1) In General.--The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Public Law 101-410, 104 Stat. 890; 28 
U.S.C. 2461 note) is amended--
          (A) by amending section 4 to read as follows:
    ``Sec. 4. The head of each agency shall, not later than 180 
days after the date of enactment of the Debt Collection 
Improvement Act of 1996, and at least once every 4 years 
thereafter--
          ``(1) by regulation adjust each civil monetary 
        penalty provided by law within the jurisdiction of the 
        Federal agency, except for any penalty (including any 
        addition to tax and additional amount) under the 
        Internal Revenue Code of 1986, the Tariff Act of 1930, 
        the Occupational Safety and Health Act of 1970, or the 
        Social Security Act, by the inflation adjustment 
        described under section 5 of this Act; and
          ``(2) publish each such regulation in the Federal 
        Register.'';
          (B) in section 5(a), by striking ``The adjustment 
        described under paragraphs (4) and (5)(A) of section 
        4'' and inserting ``The inflation adjustment under 
        section 4''; and
          (C) by adding at the end the following new section:
    ``Sec. 7. Any increase under this Act in a civil monetary 
penalty shall apply only to violations which occur after the 
date the increase takes effect.''
      (2) Limitation on Initial Adjustment.--The first 
adjustment of a civil monetary penalty made pursuant to the 
amendment made by paragraph (1) may not exceed 10 percent of 
such penalty.
  (t)(1) In General.--Title 31, United States Code, is amended 
by inserting after section 3720B (as added by subsection (j) of 
this section) the following new section:

``SEC. 3720C. DEBT COLLECTION IMPROVEMENT ACCOUNT.

  ``(a)(1) There is hereby established in the Treasury a 
special fund to be known as the `Debt Collection Improvement 
Account' (hereinafter in this section referred to as the 
`Account').
  ``(2) The Account shall be maintained and managed by the 
Secretary of the Treasury, who shall ensure that agency 
programs are credited with amounts transferred under subsection 
(b)(1).
  ``(b)(1) Not later than 30 days after the end of a fiscal 
year, an agency may transfer to the Account the amount 
described in paragraph (3), as adjusted under paragraph (4).
    ``(2) Agency transfers to the Account may include 
collections from--
          ``(A) salary, administrative, and tax refund offsets;
          ``(B) the Department of Justice;
          ``(C) private collection agencies;
          ``(D) sales of delinquent loans; and
          ``(E) contracts to locate or recover assets.
  ``(3) The amount referred to in paragraph (1) shall be 5 
percent of the amount of delinquent debt collected by an agency 
in a fiscal year, minus the greater of--
          ``(A) 5 percent of the amount of delinquent nontax 
        debt collected by the agency in the previous fiscal 
        year, or
          ``(B) 5 percent of the average annual amount of 
        delinquent nontax debt collected by the agency in the 
        previous 4 fiscal years.
  ``(4) In consultation with the Secretary of the Treasury, the 
Office of Management and Budget may adjust the amount described 
in paragraph (3) for an agency to reflect the level of effort 
in credit management programs by the agency. As an indicator of 
the level of effort in credit management, the Office of 
Management and Budget shall consider the following:
          ``(A) The number of days between the date a claim or 
        debt became delinquent and the date which an agency 
        referred the debt or claim to the Secretary of the 
        Treasury or obtained an exemption from this referral 
        under section 3711(g)(2) of this title.
          ``(B) The ratio of delinquent debts or claims to 
        total receivables for a given program, and the change 
        in this ratio over a period of time.
  ``(c)(1) The Secretary of the Treasury may make payments from 
the Account solely to reimburse agencies for qualified 
expenses. For agencies with franchise funds, such payments may 
be credited to subaccounts designated for debt collection.
  ``(2) For purposes of this section, the term `qualified 
expenses' means expenditures for the improvement of credit 
management, debt collection, and debt recovery activities, 
including--
          ``(A) account servicing (including cross-servicing 
        under section 3711(g) of this title),
          ``(B) automatic data processing equipment 
        acquisitions,
          ``(C) delinquent debt collection,
          ``(D) measures to minimize delinquent debt,
          ``(E) sales of delinquent debt,
          ``(F) asset disposition, and
          ``(G) training of personnel involved in credit and 
        debt management.
  ``(3)(A) Amounts transferred to the Account shall be 
available to the Secretary of the Treasury for purposes of this 
section to the extent and in amounts provided in advance in 
appropriations Acts.
  ``(B) As soon as practicable after the end of the third 
fiscal year after which amounts transferred are first available 
pursuant to this section, and every 3 years thereafter, any 
uncommitted balance in the Account shall be transferred to the 
general fund of the Treasury as miscellaneous receipts.
  ``(d) For direct loans and loan guarantee programs subject to 
title V of the Congressional Budget Act of 1974, amounts 
credited in accordance with subsection (c) shall be considered 
administrative costs.
  ``(e) The Secretary of the Treasury shall prescribe such 
rules, regulations, and procedures as the Secretary considers 
necessary or appropriate to carry out the purposes of this 
section.''.
  (2) Clerical Amendment.--The table of sections for chapter 37 
of title 31, United States Code, is amended by inserting after 
the item relating to section 3720B (as added by subsection (j) 
of this section) the following new item:

``3720C. Debt Collection Improvement Account.''.

  (u)(1) Discretionary Authority.--Section 3720A of title 31, 
United States Code, is amended by adding after subsection (h) 
the following new subsection:
    ``(i) An agency subject to section 9 of the Act of May 18, 
1933 (16 U.S.C. 831h), may implement this section at its 
discretion.''
  (2) Federal Agency Defined.--Section 6402(f) of the Internal 
Revenue Code of 1986 (26 U.S.C. 6402(f)) is amended to read as 
follows:
    ``(f) Federal Agency.--For purposes of this section, the 
term `Federal agency' means a department, agency, or 
instrumentality of the United States, and includes a Government 
corporation (as such term is defined in section 103 of title 5, 
United States Code).''
  (v)(1) Notification of Secretary of the Treasury.--Section 
3720A(a) of title 31, United States Code, is amended to read as 
follows:
    ``(a) Any Federal agency that is owed by a person a past-
due, legally enforceable debt (including debt administered by a 
third party acting as an agent for the Federal Government) 
shall, and any agency subject to section 9 of the Act of May 
18, 1933 (16 U.S.C. 831h), owed such a debt may, in accordance 
with regulations issued pursuant to subsections (b) and (d), 
notify the Secretary of the Treasury at least once each year of 
the amount of such debt.''
  (2) Implementation of Support Collection by Secretary of the 
Treasury.--Section 464(a) of the Social Security Act (42 U.S.C. 
664(a)) is amended--
          (1) in paragraph (1), by adding at the end the 
        following: ``This subsection may be executed by the 
        disbursing official of the Department of the 
        Treasury.''; and
          (2) in paragraph (2)(A), by adding at the end the 
        following: ``This subsection may be executed by the 
        Secretary of the Department of the Treasury or his 
        designee.''.
  (w) Section 3720A(h) of title 31, United States Code, is 
amended to read as follows:
  ``(h)(1) The disbursing official of the Department of the 
Treasury--
          ``(1) shall notify a taxpayer in writing of--
                  ``(A) the occurrence of an offset to satisfy 
                a past-due legally enforceable nontax debt;
                  ``(B) the identity of the creditor agency 
                requesting the offset; and
                  ``(C) a contact point within the creditor 
                agency that will handle concerns regarding the 
                offset;
          ``(2) shall notify the Internal Revenue Service on a 
        weekly basis of--
                  ``(A) the occurrence of an offset to satisfy 
                a past-due legally enforceable non-tax debt;
                  ``(B) the amount of such offset; and
                  ``(C) any other information required by 
                regulations; and
          ``(3) shall match payment records with requests for 
        offset by using a name control, taxpayer identifying 
        number (as that term is used in section 6109 of the 
        Internal Revenue Code of 1986), and any other necessary 
        identifiers.''.
  ``(h)(2) The term `disbursing official' of the Department of 
the Treasury means the Secretary or his designee.''
  (x)(1) Amendments Relating to Electronic Funds Transfer.--
Section 3332 of title 31, United States Code, popularly known 
as the Federal Financial Management Act of 1994, is amended--
          (A) by redesignating subsection (e) as subsection 
        (h), and inserting after subsection (d) the following 
        new subsections:
  ``(e)(1) Notwithstanding subsections (a) through (d) of this 
section, sections 5120 (a) and (d) of title 38, and any other 
provision of law, all Federal payments to a recipient who 
becomes eligible for that type of payment after 90 days after 
the date of the enactment of the Debt Collection Improvement 
Act of 1996 shall be made by electronic funds transfer.
    ``(2) The head of a Federal agency shall, with respect to 
Federal payments made or authorized by the agency, waive the 
application of paragraph (1) to a recipient of those payments 
upon receipt of written certification from the recipient that 
the recipient does not have an account with a financial 
institution or an authorized payment agent.
    ``(f)(1) Notwithstanding any other provision of law 
(including subsections (a) through (e) of this section and 
sections 5120 (a) and (d) of title 38), except as provided in 
paragraph (2) all Federal payments made after January 1, 1999, 
shall be made by electronic funds transfer.
    ``(2)(A) The Secretary of the Treasury may waive 
application of this subsection to payments--
          ``(i) for individuals or classes of individuals for 
        whom compliance imposes a hardship;
          ``(ii) for classifications or types of checks; or
          ``(iii) in other circumstances as may be necessary.
    ``(B) The Secretary of the Treasury shall make 
determinations under subparagraph (A) based on standards 
developed by the Secretary.
    ``(g) Each recipient of Federal payments required to be 
made by electronic funds transfer shall--
          ``(1) designate 1 or more financial institutions or 
        other authorized agents to which such payments shall be 
        made; and
          ``(2) provide to the Federal agency that makes or 
        authorizes the payments information necessary for the 
        recipient to receive electronic funds transfer payments 
        through each institution or agent designated under 
        paragraph (1).''; and
    (B) by adding after subsection (h) (as so redesignated) the 
following new subsections:
    ``(i)(1) The Secretary of the Treasury may prescribe 
regulations that the Secretary considers necessary to carry out 
this section.
    ``(2) Regulations under this subsection shall ensure that 
individuals required under subsection (g) to have an account at 
a financial institution because of the application of 
subsection (f)(1)--
          ``(A) will have access to such an account at a 
        reasonable cost; and
          ``(B) are given the same consumer protections with 
        respect to the account as other account holders at the 
        same financial institution.
  ``(j) For purposes of this section--
          ``(1) The term `electronic funds transfer' means any 
        transfer of funds, other than a transaction originated 
        by cash, check, or similar paper instrument, that is 
        initiated through an electronic terminal, telephone, 
        computer, or magnetic tape, for the purpose of 
        ordering, instructing, or authorizing a financial 
        institution to debit or credit an account. The term 
        includes Automated Clearing House transfers, Fed Wire 
        transfers, transfers made at automatic teller machines, 
        and point-of-sale terminals.
          ``(2) The term `Federal agency' means--
                  ``(A) an agency (as defined in section 101 of 
                this title); and
                  ``(B) a Government corporation (as defined in 
                section 103 of title 5).
          ``(3) The term `Federal payments' includes--
                  ``(A) Federal wage, salary, and retirement 
                payments;
                  ``(B) vendor and expense reimbursement 
                payments; and
                  ``(C) benefit payments.
  Such term shall not include any payment under the Internal 
Revenue Code of 1986.''
  (2) Amendments Relating to Substitute Checks.--Section 3331 
of title 31, United States Code, is amended--
          (A) in subsection (b), by striking ``subsection (c)'' 
        and inserting ``subsection (c) or (f)'';
          (B) by redesignating subsection (f) as subsection 
        (g); and
          (C) by inserting after subsection (e) the following 
        new subsection:
    ``(f) The Secretary may waive any provision of this section 
as may be necessary to ensure that claimants receive timely 
payments.''.
  (3) Permanent Funding of the Check Forgery Insurance Fund.--
Section 3343 of title 31, United States Code, is amended--
          (A) in subsection (a), by amending the second 
        sentence to read as follows: ``Necessary amounts are 
        hereafter appropriated to the Fund out of any moneys in 
        the Treasury not otherwise appropriated, and shall 
        remain available until expended to make the payments 
        required or authorized under this section.'';
          (B) in subsection (b)--
                  (i) by inserting ``in the determination of 
                the Secretary the payee or special endorse 
                establishes that'' after ``without interest 
                if'';
                  (ii) in paragraph (2), by inserting ``and'' 
                after the semicolon;
                  (iii) in paragraph (3), by striking ``; and'' 
                and inserting a period; and
                  (iv) by striking paragraph (4);
          (C) in subsection (d), by inserting after the first 
        sentence the following new sentence: ``The Secretary 
        may use amounts in the Fund to reimburse payment 
        certifying or authorizing agencies for any payment that 
        the Secretary determines would otherwise have been 
        payable from the Fund, and may reimburse certifying or 
        authorizing agencies with amounts recovered because of 
        payee nonentitlement;''
          (D) by redesignating subsection (e) as subsection 
        (g); and
          (E) by inserting after subsection (d) the following 
        new subsections:
    ``(e) The Secretary may waive any provision of this section 
as may be necessary to ensure that claimants receive timely 
payments.
    ``(f) Under such conditions as the Secretary may prescribe, 
the Secretary may delegate duties and powers of the Secretary 
under this section to the head of an agency. Consistent with a 
delegation from the Secretary under this subsection, the head 
of an agency may redelegate those duties and powers to officers 
or employees of the agency.''.
  (y) Section 3325 of title 31, United States Code, is amended 
by adding at the end the following new subsection:
  ``(d) The head of an executive agency or an officer or 
employee of an executive agency referred to in subsection 
(a)(1)(B), as applicable, shall include with each certified 
voucher submitted to a disbursing official pursuant to this 
section the taxpayer identifying number of each person to whom 
payment may be made under the voucher.''.
  (z)(1) In General.--Section 3701 of title 31, United States 
Code, is amended--
          (A) by amending subsection (a)(1) to read as follows:
          ``(1) `administrative offset' means withholding funds 
        payable by the United States (including funds payable 
        by the United States on behalf of a State government) 
        to, or held by the United States for, a person to 
        satisfy a claim.'';
          (B) by amending subsection (b) to read as follows:
  ``(b)(1) In subchapter II of this chapter and subsection 
(a)(8) of this section, the term `claim' or `debt' means any 
amount of funds or property that has been determined by an 
appropriate official of the Federal Government to be owed to 
the United States by a person, organization, or entity other 
than another Federal agency. A claim includes, without 
limitation--
          ``(A) funds owed on account of loans made, insured, 
        or guaranteed by the Government, including any 
        deficiency or any difference between the price obtained 
        by the Government in the sale of a property and the 
        amount owed to the Government on a mortgage on the 
        property,
          ``(B) expenditures of nonappropriated funds,
          ``(C) over-payments, including payments disallowed by 
        audits performed by the Inspector General of the agency 
        administering the program,
          ``(D) any amount the United States is authorized by 
        statute to collect for the benefit of any person,
          ``(E) the unpaid share of any non-Federal partner in 
        a program involving a Federal payment and a matching, 
        or cost-sharing, payment by the non-Federal partner,
          ``(F) any fines or penalties assessed by an agency; 
        and
          ``(G) other amounts of money or property owed to the 
        Government.
  ``(2) For purposes of section 3716 of this title, each of the 
terms `claim' and `debt' includes an amount of funds or 
property owed by a person to a State (including any past-due 
support being enforced by the State), the District of Columbia, 
American Samoa, Guam, the United States Virgin Islands, the 
Commonwealth of the Northern Mariana Islands, or the 
Commonwealth of Puerto Rico.'';
          (C) by adding after subsection (d) the following new 
        subsection:
    ``(e) In section 3716 of this title--
          ``(1) `creditor agency' means any agency owed a claim 
        that seeks to collect that claim through administrative 
        offset; and
          ``(2) `payment certifying agency' means any agency 
        that has transmitted a voucher to a disbursing official 
        for disbursement.
    ``(f) In section 3711 of this title, `private collection 
contractor' means private debt collectors under contract with 
an agency to collect a nontax debt or claim owed the United 
States. The term includes private debt collectors, collection 
agencies, and commercial attorneys.''; and
          (D) by amending subsection (d) to read as follows:
    ``(d) Sections 3711(f) and 3716-3719 of this title do not 
apply to a claim or debt under, or to an amount payable under--
          ``(1) the Internal Revenue Code of 1986 (26 U.S.C. 1 
        et seq.),
          ``(2) the Social Security Act (42 U.S.C. 301 et 
        seq.), except to the extent provided under section 
        204(f) of such Act and section 3716(c) of this title, 
        or
          ``(3) the tariff laws of the United States.''.
  (2) Social Security.--
          (A) Application of amendments made by this act.--
        Subsection (f) of section 204 of the Social Security 
        Act (42 U.S.C. 404) is amended to read as follows:
    ``(f)(1) With respect to any delinquent amount, the 
Commissioner of Social Security may use the collection 
practices described in sections 3711(f), 3716, 3717, and 3718 
of title 31, United States Code and in section 5514 of title 5, 
United States Code, as in effect immediately after the 
enactment of the Debt Collection Improvement Act of 1996.''
          (B) Permanent application.--Subsection (c) of section 
        5 of the Social Security Domestic Reform Act of 1994 
        (Public Law 103-387) is amended by striking ``and 
        before'' and all that follows and inserting a period.
  (aa)(1) Guidelines.--The Secretary of the Treasury, in 
consultation with concerned Federal agencies, may establish 
guidelines, including information on outstanding debt, to 
assist agencies in the performance and monitoring of debt 
collection activities.
  (2) Report.--Not later than 3 years after the date of 
enactment of this Act, the Secretary of the Treasury shall 
report to the Congress on collection services provided by 
Federal agencies or entities collecting debt on behalf of other 
Federal agencies under the authorities contained in section 
3711(g) of title 31, United States Code, as added by subsection 
(m) of this section.
  (3) Agency Reports.--Section 3719 of title 31, United States 
Code, is amended--
          (A) in subsection (a)--
                  (i) by amending the first sentence to read as 
                follows: ``In consultation with the Comptroller 
                General of the United States, the Secretary of 
                the Treasury shall prescribe regulations 
                requiring the head of each agency with 
                outstanding nontax claims to prepare and submit 
                to the Secretary at least once each year a 
                report summarizing the status of loans and 
                accounts receivable that are managed by the 
                head of the agency.''; and
                  (ii) in paragraph (3), by striking 
                ``Director'' and inserting ``Secretary''; and
          (B) in subsection (b), by striking ``Director'' and 
        inserting ``Secretary.''
  (4) Consolidation of Reports.--Notwithstanding any other 
provision of law, the Secretary of the Treasury may consolidate 
reports concerning debt collection otherwise required to be 
submitted by the Secretary into one annual report.
  (bb) The Director of the Office of Management and Budget 
shall--
          (1) review the standards and policies of each Federal 
        agency for compromising, writing-down, forgiving, or 
        discharging indebtedness arising from programs of the 
        agency;
          (2) determine whether those standards and policies 
        are consistent and protect the interests of the United 
        States;
          (3) in the case of any Federal agency standard or 
        policy that the Director determines is not consistent 
        or does not protect the interests of the United States, 
        direct the head of the agency to make appropriate 
        modifications to the standard or policy; and
          (4) report annually to the Congress on--
                  (A) deficiencies in the standards and 
                policies of Federal agencies for compromising, 
                writing-down, forgiving, or discharging 
                indebtedness; and
                  (B) progress made in improving those 
                standards and policies.
  (cc)(1) Elimination of Minimum Number of Contracts.--Section 
3718(b)(1)(A) of title 31, United States Code, is amended by 
striking the fourth sentence.
  (2) Repeal.--Sections 3 and 5 of the Act of October 28, 1986 
(popularly known as the Federal Debt Recovery Act; Public Law 
99-578, 100 Stat. 3305) are hereby repealed.
======================================================================


                            SINGLE AUDIT ACT

                             AMENDMENTS OF

                                  1996

======================================================================

                            Single Audit Act

                           Amendments of 1996

                           Public Law 104-156

                            (110 Stat. 1391)

  AN ACT To streamline and improve the effectiveness of chapter 75 of 
  title 31, United States Code (commonly referred to as the ``Single 
                             Audit Act'').

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

SECTION 1. SHORT TITLE; PURPOSES.

    (a) Short Title.--This Act may be cited as the ``Single 
Audit Act Amendments of 1996''.
    (b) Purposes.--The purposes of this Act are to--
            (1) promote sound financial management, including 
        effective internal controls, with respect to Federal 
        awards administered by non-Federal entities;
            (2) establish uniform requirements for audits of 
        Federal awards administered by non-Federal entities;
            (3) promote the efficient and effective use of 
        audit resources;
            (4) reduce burdens on State and local governments, 
        Indian tribes, and nonprofit organizations; and
            (5) ensure that Federal departments and agencies, 
        to the maximum extent practicable, rely upon and use 
        audit work done pursuant to chapter 75 of title 31, 
        United States Code (as amended by this Act).

SEC. 2. AMENDMENT TO TITLE 31, UNITED STATES CODE.

    Chapter 75 of title 31, United States Code, is amended to 
read as follows:

              ``CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS

    ``Sec.
``7501. Definitions.
``7502. Audit requirements; exemptions.
``7503. Relation to other audit requirements.
``7504. Federal agency responsibilities and relations with non-Federal 
          entities.
``7505. Regulations.
``7506. Monitoring responsibilities of the Comptroller General.
``7507. Effective date.

``Sec. 7501. Definitions

    ``(a) As used in this chapter, the term--
            ``(1) `Comptroller General' means the Comptroller 
        General of the United States;
            ``(2) `Director' means the Director of the Office 
        of Management and Budget;
            ``(3) `Federal agency' has the same meaning as the 
        term `agency' in section 551(1) of title 5;
            ``(4) `Federal awards' means Federal financial 
        assistance and Federal cost-reimbursement contracts 
        that non-Federal entities receive directly from Federal 
        awarding agencies or indirectly from pass-through 
        entities;
            ``(5) `Federal financial assistance' means 
        assistance that non-Federal entities receive or 
        administer in the form of grants, loans, loan 
        guarantees, property, cooperative agreements, interest 
        subsidies, insurance, food commodities, direct 
        appropriations, or other assistance, but does not 
        include amounts received as reimbursement for services 
        rendered to individuals in accordance with guidance 
        issued by the Director;
            ``(6) `Federal program' means all Federal awards to 
        a non-Federal entity assigned a single number in the 
        Catalog of Federal Domestic Assistance or encompassed 
        in a group of numbers or other category as defined by 
        the Director;
            ``(7) `generally accepted government auditing 
        standards' means the government auditing standards 
        issued by the Comptroller General;
            ``(8) `independent auditor' means--
                    ``(A) an external State or local government 
                auditor who meets the independence standards 
                included in generally accepted government 
                auditing standards; or
                    ``(B) a public accountant who meets such 
                independence standards;
            ``(9) `Indian tribe' means any Indian tribe, band, 
        nation, or other organized group or community, 
        including any Alaskan Native village or regional or 
        village corporation (as defined in, or established 
        under, the Alaskan Native Claims Settlement Act) that 
        is recognized by the United States as eligible for the 
        special programs and services provided by the United 
        States to Indians because of their status as Indians;
            ``(10) `internal controls' means a process, 
        effected by an entity's management and other personnel, 
        designed to provide reasonable assurance regarding the 
        achievement of objectives in the following categories:
                    ``(A) Effectiveness and efficiency of 
                operations.
                    ``(B) Reliability of financial reporting.
                    ``(C) Compliance with applicable laws and 
                regulations;
            ``(11) `local government' means any unit of local 
        government within a State, including a county, borough, 
        municipality, city, town, township, parish, local 
        public authority, special district, school district, 
        intrastate district, council of governments, any other 
        instrumentality of local government and, in accordance 
        with guidelines issued by the Director, a group of 
        local governments;
            ``(12) `major program' means a Federal program 
        identified in accordance with risk-based criteria 
        prescribed by the Director under this chapter, subject 
        to the limitations described under subsection (b);
            ``(13) `non-Federal entity' means a State, local 
        government, or nonprofit organization;
            ``(14) `nonprofit organization' means any 
        corporation, trust, association, cooperative, or other 
        organization that--
                    ``(A) is operated primarily for scientific, 
                educational, service, charitable, or similar 
                purposes in the public interest;
                    ``(B) is not organized primarily for 
                profit; and
                    ``(C) uses net proceeds to maintain, 
                improve, or expand the operations of the 
                organization;
            ``(15) `pass-through entity' means a non-Federal 
        entity that provides Federal awards to a subrecipient 
        to carry out a Federal program;
            ``(16) `program-specific audit' means an audit of 
        one Federal program;
            ``(17) `recipient' means a non-Federal entity that 
        receives awards directly from a Federal agency to carry 
        out a Federal program;
            ``(18) `single audit' means an audit, as described 
        under section 7502(d), of a non-Federal entity that 
        includes the entity's financial statements and Federal 
        awards;
            ``(19) `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, and 
        the Trust Territory of the Pacific Islands, any 
        instrumentality thereof, any multi-State, regional, or 
        interstate entity which has governmental functions, and 
        any Indian tribe; and
            ``(20) `subrecipient' means a non-Federal entity 
        that receives Federal awards through another non-
        Federal entity to carry out a Federal program, but does 
        not include an individual who receives financial 
        assistance through such awards.
    ``(b) In prescribing risk-based program selection criteria 
for major programs, the Director shall not require more 
programs to be identified as major for a particular non-Federal 
entity, except as prescribed under subsection (c) or as 
provided under subsection (d), than would be identified if the 
major programs were defined as any program for which total 
expenditures of Federal awards by the non-Federal entity during 
the applicable year exceed--
            ``(1) the larger of $30,000,000 or 0.15 percent of 
        the non-Federal entity's total Federal expenditures, in 
        the case of a non-Federal entity for which such total 
        expenditures for all programs exceed $10,000,000,000;
            ``(2) the larger of $3,000,000, or 0.30 percent of 
        the non-Federal entity's total Federal expenditures, in 
        the case of a non-Federal entity for which such total 
        expenditures for all programs exceed $100,000,000 but 
        are less than or equal to $10,000,000,000; or
            ``(3) the larger of $300,000, or 3 percent of such 
        total Federal expenditures for all programs, in the 
        case of a non-Federal entity for which such total 
        expenditures for all programs equal or exceed $300,000 
        but are less than or equal to $100,000,000.
    ``(c) When the total expenditures of a non-Federal entity's 
major programs are less than 50 percent of the non-Federal 
entity's total expenditures of all Federal awards (or such 
lower percentage as specified by the Director), the auditor 
shall select and test additional programs as major programs as 
necessary to achieve audit coverage of at least 50 percent of 
Federal expenditures by the non-Federal entity (or such lower 
percentage as specified by the Director), in accordance with 
guidance issued by the Director.
    ``(d) Loan or loan guarantee programs, as specified by the 
Director, shall not be subject to the application of subsection 
(b).

``Sec. 7502. Audit requirements; exemptions

    ``(a)(1)(A) Each non-Federal entity that expends a total 
amount of Federal awards equal to or in excess of $300,000 or 
such other amount specified by the Director under subsection 
(a)(3) in any fiscal year of such non-Federal entity shall have 
either a single audit or a program-specific audit made for such 
fiscal year in accordance with the requirements of this 
chapter.
    ``(B) Each such non-Federal entity that expends Federal 
awards under more than one Federal program shall undergo a 
single audit in accordance with the requirements of subsections 
(b) through (i) of this section and guidance issued by the 
Director under section 7505.
    ``(C) Each such non-Federal entity that expends awards 
under only one Federal program and is not subject to laws, 
regulations, or Federal award agreements that require a 
financial statement audit of the non-Federal entity, may elect 
to have a program-specific audit conducted in accordance with 
applicable provisions of this section and guidance issued by 
the Director under section 7505.
    ``(2)(A) Each non-Federal entity that expends a total 
amount of Federal awards of less than $300,000 or such other 
amount specified by the Director under subsection (a)(3) in any 
fiscal year of such entity, shall be exempt for such fiscal 
year from compliance with--
            ``(i) the audit requirements of this chapter; and
            ``(ii) any applicable requirements concerning 
        financial audits contained in Federal statutes and 
        regulations governing programs under which such Federal 
        awards are provided to that non-Federal entity.
    ``(B) The provisions of subparagraph (A)(ii) of this 
paragraph shall not exempt a non-Federal entity from compliance 
with any provision of a Federal statute or regulation that 
requires such non-Federal entity to maintain records concerning 
Federal awards provided to such non-Federal entity or that 
permits a Federal agency, pass-through entity, or the 
Comptroller General access to such records.
    ``(3) Every 2 years, the Director shall review the amount 
for requiring audits prescribed under paragraph (1)(A) and may 
adjust such dollar amount consistent with the purposes of this 
chapter, provided the Director does not make such adjustments 
below $300,000.
    ``(b)(1) Except as provided in paragraphs (2) and (3), 
audits conducted pursuant to this chapter shall be conducted 
annually.
    ``(2) A State or local government that is required by 
constitution or statute, in effect on January 1, 1987, to 
undergo its audits less frequently than annually, is permitted 
to undergo its audits pursuant to this chapter biennially. 
Audits conducted biennially under the provisions of this 
paragraph shall cover both years within the biennial period.
    ``(3) Any nonprofit organization that had biennial audits 
for all biennial periods ending between July 1, 1992, and 
January 1, 1995, is permitted to undergo its audits pursuant to 
this chapter biennially. Audits conducted biennially under the 
provisions of this paragraph shall cover both years within the 
biennial period.
    ``(c) Each audit conducted pursuant to subsection (a) shall 
be conducted by an independent auditor in accordance with 
generally accepted government auditing standards, except that, 
for the purposes of this chapter, performance audits shall not 
be required except as authorized by the Director.
    ``(d) Each single audit conducted pursuant to subsection 
(a) for any fiscal year shall--
            ``(1) cover the operations of the entire non-
        Federal entity; or
            ``(2) at the option of such non-Federal entity such 
        audit shall include a series of audits that cover 
        departments, agencies, and other organizational units 
        which expended or otherwise administered Federal awards 
        during such fiscal year provided that each such audit 
        shall encompass the financial statements and schedule 
        of expenditures of Federal awards for each such 
        department, agency, and organizational unit, which 
        shall be considered to be a non-Federal entity.
    ``(e) The auditor shall--
            ``(1) determine whether the financial statements 
        are presented fairly in all material respects in 
        conformity with generally accepted accounting 
        principles;
            ``(2) determine whether the schedule of 
        expenditures of Federal awards is presented fairly in 
        all material respects in relation to the financial 
        statements taken as a whole;
            ``(3) with respect to internal controls pertaining 
        to the compliance requirements for each major program--
                    ``(A) obtain an understanding of such 
                internal controls;
                    ``(B) assess control risk; and
                    ``(C) perform tests of controls unless the 
                controls are deemed to be ineffective; and
            ``(4) determine whether the non-Federal entity has 
        complied with the provisions of laws, regulations, and 
        contracts or grants pertaining to Federal awards that 
        have a direct and material effect on each major 
        program.
    ``(f)(1) Each Federal agency which provides Federal awards 
to a recipient shall--
            ``(A) provide such recipient the program names (and 
        any identifying numbers) from which such awards are 
        derived, and the Federal requirements which govern the 
        use of such awards and the requirements of this 
        chapter; and
            ``(B) review the audit of a recipient as necessary 
        to determine whether prompt and appropriate corrective 
        action has been taken with respect to audit findings, 
        as defined by the Director, pertaining to Federal 
        awards provided to the recipient by the Federal agency.
    ``(2) Each pass-through entity shall--
            ``(A) provide such subrecipient the program names 
        (and any identifying numbers) from which such 
        assistance is derived, and the Federal requirements 
        which govern the use of such awards and the 
        requirements of this chapter;
            ``(B) monitor the subrecipient's use of Federal 
        awards through site visits, limited scope audits, or 
        other means;
            ``(C) review the audit of a subrecipient as 
        necessary to determine whether prompt and appropriate 
        corrective action has been taken with respect to audit 
        findings, as defined by the Director, pertaining to 
        Federal awards provided to the subrecipient by the 
        pass-through entity; and
            ``(D) require each of its subrecipients of Federal 
        awards to permit, as a condition of receiving Federal 
        awards, the independent auditor of the pass-through 
        entity to have such access to the subrecipient's 
        records and financial statements as may be necessary 
        for the pass-through entity to comply with this 
        chapter.
    ``(g)(1) The auditor shall report on the results of any 
audit conducted pursuant to this section, in accordance with 
guidance issued by the Director.
    ``(2) When reporting on any single audit, the auditor shall 
include a summary of the auditor's results regarding the non-
Federal entity's financial statements, internal controls, and 
compliance with laws and regulations.
    ``(h) The non-Federal entity shall transmit the reporting 
package, which shall include the non-Federal entity's financial 
statements, schedule of expenditures of Federal awards, 
corrective action plan defined under subsection (i), and 
auditor's reports developed pursuant to this section, to a 
Federal clearinghouse designated by the Director, and make it 
available for public inspection within the earlier of--
            ``(1) 30 days after receipt of the auditor's 
        report; or
            ``(2)(A) for a transition period of at least 2 
        years after the effective date of the Single Audit Act 
        Amendments of 1996, as established by the Director, 13 
        months after the end of the period audited; or
            ``(B) for fiscal years beginning after the period 
        specified in subparagraph (A), 9 months after the end 
        of the period audited, or within a longer timeframe 
        authorized by the Federal agency, determined under 
        criteria issued under section 7504, when the 9-month 
        timeframe would place an undue burden on the non-
        Federal entity.
    ``(i) If an audit conducted pursuant to this section 
discloses any audit findings, as defined by the Director, 
including material noncompliance with individual compliance 
requirements for a major program by, or reportable conditions 
in the internal controls of, the non-Federal entity with 
respect to the matters described in subsection (e), the non-
Federal entity shall submit to Federal officials designated by 
the Director, a plan for corrective action to eliminate such 
audit findings or reportable conditions or a statement 
describing the reasons that corrective action is not necessary. 
Such plan shall be consistent with the audit resolution 
standard promulgated by the Comptroller General (as part of the 
standards for internal controls in the Federal Government) 
pursuant to section 3512(c).
    ``(j) The Director may authorize pilot projects to test 
alternative methods of achieving the purposes of this chapter. 
Such pilot projects may begin only after consultation with the 
Chair and Ranking Minority Member of the Committee on 
Governmental Affairs of the Senate and the Chair and Ranking 
Minority Member of the Committee on Government Reform and 
Oversight of the House of Representatives.

``Sec. 7503. Relation to other audit requirements

    ``(a) An audit conducted in accordance with this chapter 
shall be in lieu of any financial audit of Federal awards which 
a non-Federal entity is required to undergo under any other 
Federal law or regulation. To the extent that such audit 
provides a Federal agency with the information it requires to 
carry out its responsibilities under Federal law or regulation, 
a Federal agency shall rely upon and use that information.
    ``(b) Notwithstanding subsection (a), a Federal agency may 
conduct or arrange for additional audits which are necessary to 
carry out its responsibilities under Federal law or regulation. 
The provisions of this chapter do not authorize any non-Federal 
entity (or subrecipient thereof) to constrain, in any manner, 
such agency from carrying out or arranging for such additional 
audits, except that the Federal agency shall plan such audits 
to not be duplicative of other audits of Federal awards.
    ``(c) The provisions of this chapter do not limit the 
authority of Federal agencies to conduct, or arrange for the 
conduct of, audits and evaluations of Federal awards, nor limit 
the authority of any Federal agency Inspector General or other 
Federal official.
    ``(d) Subsection (a) shall apply to a non-Federal entity 
which undergoes an audit in accordance with this chapter even 
though it is not required by section 7502(a) to have such an 
audit.
    ``(e) A Federal agency that provides Federal awards and 
conducts or arranges for audits of non-Federal entities 
receiving such awards that are in addition to the audits of 
non-Federal entities conducted pursuant to this chapter shall, 
consistent with other applicable law, arrange for funding the 
full cost of such additional audits. Any such additional audits 
shall be coordinated with the Federal agency determined under 
criteria issued under section 7504 to preclude duplication of 
the audits conducted pursuant to this chapter or other 
additional audits.
    ``(f) Upon request by a Federal agency or the Comptroller 
General, any independent auditor conducting an audit pursuant 
to this chapter shall make the auditor's working papers 
available to the Federal agency or the Comptroller General as 
part of a quality review, to resolve audit findings, or to 
carry out oversight responsibilities consistent with the 
purposes of this chapter. Such access to auditor's working 
papers shall include the right to obtain copies.

``Sec. 7504. Federal agency responsibilities and relations with non-
                    Federal entities

    ``(a) Each Federal agency shall, in accordance with 
guidance issued by the Director under section 7505, with regard 
to Federal awards provided by the agency--
            ``(1) monitor non-Federal entity use of Federal 
        awards, and
            ``(2) assess the quality of audits conducted under 
        this chapter for audits of entities for which the 
        agency is the single Federal agency determined under 
        subsection (b).
    ``(b) Each non-Federal entity shall have a single Federal 
agency, determined in accordance with criteria established by 
the Director, to provide the non-Federal entity with technical 
assistance and assist with implementation of this chapter.
    ``(c) The Director shall designate a Federal clearinghouse 
to--
            ``(1) receive copies of all reporting packages 
        developed in accordance with this chapter;
            ``(2) identify recipients that expend $300,000 or 
        more in Federal awards or such other amount specified 
        by the Director under section 7502(a)(3) during the 
        recipient's fiscal year but did not undergo an audit in 
        accordance with this chapter; and
            ``(3) perform analyses to assist the Director in 
        carrying out responsibilities under this chapter.

``Sec. 7505. Regulations

    ``(a) The Director, after consultation with the Comptroller 
General, and appropriate officials from Federal, State, and 
local governments and nonprofit organizations shall prescribe 
guidance to implement this chapter. Each Federal agency shall 
promulgate such amendments to its regulations as may be 
necessary to conform such regulations to the requirements of 
this chapter and of such guidance.
    ``(b)(1) The guidance prescribed pursuant to subsection (a) 
shall include criteria for determining the appropriate charges 
to Federal awards for the cost of audits. Such criteria shall 
prohibit a non-Federal entity from charging to any Federal 
awards--
            ``(A) the cost of any audit which is--
                    ``(i) not conducted in accordance with this 
                chapter; or
                    ``(ii) conducted in accordance with this 
                chapter when expenditures of Federal awards are 
                less than amounts cited in section 
                7502(a)(1)(A) or specified by the Director 
                under section 7502(a)(3), except that the 
                Director may allow the cost of limited scope 
                audits to monitor subrecipients in accordance 
                with section 7502(f)(2)(B); and
            ``(B) more than a reasonably proportionate share of 
        the cost of any such audit that is conducted in 
        accordance with this chapter.
    ``(2) The criteria prescribed pursuant to paragraph (1) 
shall not, in the absence of documentation demonstrating a 
higher actual cost, permit the percentage of the cost of audits 
performed pursuant to this chapter charged to Federal awards, 
to exceed the ratio of total Federal awards expended by such 
non-Federal entity during the applicable fiscal year or years, 
to such non-Federal entity's total expenditures during such 
fiscal year or years.
    ``(c) Such guidance shall include such provisions as may be 
necessary to ensure that small business concerns and business 
concerns owned and controlled by socially and economically 
disadvantaged individuals will have the opportunity to 
participate in the performance of contracts awarded to fulfill 
the audit requirements of this chapter.

``Sec. 7506. Monitoring responsibilities of the Comptroller General

    ``(a) The Comptroller General shall review provisions 
requiring financial audits of non-Federal entities that receive 
Federal awards that are contained in bills and resolutions 
reported by the committees of the Senate and the House of 
Representatives.
    ``(b) If the Comptroller General determines that a bill or 
resolution contains provisions that are inconsistent with the 
requirements of this chapter, the Comptroller General shall, at 
the earliest practicable date, notify in writing--
            ``(1) the committee that reported such bill or 
        resolution; and
            ``(2)(A) the Committee on Governmental Affairs of 
        the Senate (in the case of a bill or resolution 
        reported by a committee of the Senate); or
            ``(B) the Committee on Government Reform and 
        Oversight of the House of Representatives (in the case 
        of a bill or resolution reported by a committee of the 
        House of Representatives).

``Sec. 7507. Effective date

    ``This chapter shall apply to any non-Federal entity with 
respect to any of its fiscal years which begin after June 30, 
1996.''.

SEC. 3. TRANSITIONAL APPLICATION.

    Subject to section 7507 of title 31, United States Code (as 
amended by section 2 of this Act) the provisions of chapter 75 
of such title (before amendment by section 2 of this Act) shall 
continue to apply to any State or local government with respect 
to any of its fiscal years beginning before July 1, 1996.
      
======================================================================


                             MAJOR LAWS ON

                          FINANCIAL MANAGEMENT

                            (Original Acts)

======================================================================

      
           Major Laws on Financial Management (Original Acts)

  Laws enacted are often codified in multiple sections in the 
Code. To provide users of this report the entire text of 
important laws and to provide a historical perspective, 11 
major laws \15\ effecting financial management are included 
herein in the original text when enacted.
---------------------------------------------------------------------------
    \15\ A twelfth law, ``The Inspector General Act of 1978,'' is 
important, however, it is not included in this part of the report since 
the pertinent sections appear in their entirety, as amended, in 
appendix 3 of Title 5 (5 U.S.C. App 3) in this report.
---------------------------------------------------------------------------
  The 11 major laws in the order enacted are:

           1. Budget and Accounting Act of 1921
           2. Budget and Accounting Procedures Act of 1950
           3. Legislative Reorganization Act of 1970 (Parts 1, 
        2, and 3)
           4. Impoundment Control Act of 1974
           5. Federal Managers' Financial Integrity Act of 1982
           6. Debt Collection Act of 1982
           7. Single Audit Act of 1984
           8. Chief Financial Officers Act of 1990
           9. Cash Management Improvement Act Amendments of 
        1992
          10. Government Performance and Results Act of 1993
          11. Government Management Reform Act of 1994

  Several of these laws have been amended by subsequent laws. 
These amendments are reflected in the Code contained in this 
Print. Appendix IX, ``Popular Names of Selected Major Laws 
Cross-Indexed to Sections of the United States Code and Statute 
or Public Law'' contains an alphabetic listing of these 11 laws 
(as well as other laws) with the related U.S.C. cite.
    However, for laws numbered 5 through 11 listed above, we 
provide a reference if the law has been amended as of December 
31, 1995.
                    Budget and Accounting Act, 1921

                       (Chapter 18, 42 Stat. 20)

                          TITLE I--DEFINITIONS

    Section 1. This Act may be cited as the ``Budget and 
Accounting Act, 1921.''
    Sec 2. When used in this Act--
    The terms ``department and establishment'' and ``department 
or establishment'' mean any executive department, independent 
commission, board, bureau, office, agency, or other 
establishment of the Government, including the municipal 
government of the District of Columbia, but do not include the 
Legislative Branch of the Government or the Supreme Court of 
the United States;
    The term ``the Budget'' means the Budget required by 
section 201 to be transmitted to Congress;
    The term ``Bureau'' means the Bureau of the Budget;
    The term ``Director'' means the Director of the Bureau of 
the Budget; and
    The term ``Assistant Director'' means the Assistant 
Director of the Bureau of the Budget.

                          TITLE II--THE BUDGET

    Sec. 201. The President shall transmit to Congress on the 
first day of each regular session, the Budget, which shall set 
forth in summary and in detail:
    (a) Estimates of the expenditures and appropriations 
necessary in his judgment for the support of the Government for 
the ensuing fiscal year; except that the estimates for such 
year for the Legislative Branch of the Government and the 
Supreme Court of the United States shall be transmitted to the 
President on or before October 15th of each year, and shall be 
included by him in the Budget without revision;
    (b) His estimates of the receipts of the Government during 
the ensuing fiscal year, under (1) laws existing at the time 
the Budget is transmitted and also (2) under the revenue 
proposals, if any, contained in the Budget;
    (c) The expenditures and receipts of the Government during 
the last completed fiscal year;
    (d) Estimates of the expenditures and receipts of the 
Government during the fiscal year in progress;
    (e) The amount of annual, permanent, or other 
appropriations, including balances of appropriations for prior 
fiscal years, available for expenditure during the fiscal year 
in progress, as of November 1 of such year;
    (f) Balanced statements of (1) the condition of the 
Treasury at the end of the last completed fiscal year, (2) the 
estimated condition of the Treasury at the end of the fiscal 
year in progress, and (3) the estimated condition of the 
Treasury at the end of the ensuing fiscal year if the financial 
proposals contained in the Budget are adopted.
    (g) All essential facts regarding the bonded and other 
indebtedness of the Government; and
    (h) Such other financial statements and data as in his 
opinion are necessary or desirable in order to make known in 
all practicable detail the financial condition of the 
Government.
    Sec. 202. (a) If the estimated receipts for the ensuing 
fiscal year contained in the Budget, on the basis of laws 
existing at the time the Budget is transmitted, plus the 
estimated amounts in the Treasury at the close of the fiscal 
year in progress, available for expenditure in the ensuing 
fiscal year, are less than the estimated expenditures for the 
ensuing fiscal year contained in the Budget, the President in 
the Budget shall make recommendations to Congress for new 
taxes, loans, or other appropriate action to meet the estimated 
deficiency.
  (b) If the aggregate of such estimated receipts and such 
estimated amounts in the Treasury is greater than such 
estimated expenditures for the ensuing fiscal year, he shall 
make such recommendations as in his opinion the public 
interests require.
  Sec. 203. (a) The President from time to time may transmit to 
Congress supplemental or deficiency estimates for such 
appropriations or expenditures as in his judgment (1) are 
necessary on account of laws enacted after the transmission of 
the Budget, or (2) are otherwise in the public interest. He 
shall accompany such estimates with a statement of the reasons 
therefor, including the reasons for their omission from the 
Budget.
  (b) Whenever such supplemental or deficiency estimates reach 
an aggregate which, if they had been contained in the Budget, 
would have required the President to make a recommendation 
under subdivision (a) of section 202, he shall thereupon make 
such recommendation.
  Sec. 204. (a) Except as otherwise provided in this Act, the 
contents, order, and arrangement of the estimates of 
appropriations and the statements of expenditures and estimated 
expenditures contained in the Budget or transmitted under 
Section 203, and the notes and other data submitted therewith, 
shall conform to the requirements of existing law.
  (b) Estimates for lump-sum appropriations contained in the 
Budget or transmitted under section 203 shall be accompanied by 
statements showing, in such detail and form as may be necessary 
to inform Congress, the manner of expenditure of such 
appropriations and of the corresponding appropriations for the 
fiscal year in progress and the last completed fiscal year. 
Such statements shall be in lieu of statements of like 
character now required by law.
  Sec. 205. The President, in addition to the Budget, shall 
transmit to Congress on the first Monday in December, 1921, for 
the service of the fiscal year ending June 30, 1923, only, an 
alternative budget, which shall be prepared in such form and 
amounts and according to such system of classification and 
itemization as is, in his opinion, most appropriate, with such 
explanatory notes and tables as may be necessary to show where 
the various items embraced in the Budget are contained in such 
alternative budget.
  Sec. 206. No estimate or request for an appropriation and no 
request for an increase in an item of any such estimate or 
request, and no recommendation as to how the revenue needs of 
the Government should be met, shall be submitted to Congress or 
any committee thereof by any officer or employee of any 
department or establishment, unless at the request of either 
House of Congress.
  Sec. 207. There is hereby created in the Treasury Department 
a Bureau to be known as the Bureau of the Budget. There shall 
be in the Bureau a Director and an Assistant Director, who 
shall be appointed by the President and receive salaries of 
$10,00 and $7,500 a year, respectively. The Assistant Director 
shall perform such duties as the Director may designate, and 
during the absence or incapacity of the Director or during a 
vacancy in the office of Director he shall act as Director. The 
Bureau, under such rules and regulations as the President may 
prescribe, shall prepare for him the Budget, the alternative 
Budget, and any supplemental or deficiency estimates, and to 
this end shall have authority to assemble, correlate, revise, 
reduce, or increase the estimates of the several departments or 
establishments.
  Sec. 208. (a) The Director, under such rules and regulations 
as the President may prescribe, shall appoint and fix the 
compensation of attorneys and other employees and make 
expenditures for rent in the District of Columbia, printing, 
binding, telegrams, telephone service, law books, books of 
reference, periodicals, stationery, furniture, office 
equipment, other supplies, and necessary expenses of the 
office, within the appropriations made therefor.
  (b) No person appointed by the Director shall be paid a 
salary at a rate in excess of $6,000 a year, and not more than 
four persons so appointed shall be paid a salary at a rate in 
excess of $5,000 a year.
  (c) All employees in the Bureau whose compensation is at a 
rate of $5,000 a year or less shall be appointed in accordance 
with the civil-service laws and regulations.
  (d) The provisions of law prohibiting the transfer of 
employees of executive departments and independent 
establishments until after service of three years shall not 
apply during the fiscal years ending June 30, 1921, and June 
30, 1922, to the transfer of employees to the Bureau.
  (e) The Bureau shall not be construed to be a bureau or 
office created since January 1, 1916, so as to deprive 
employees therein of the additional compensation allowed 
civilian employees under the provisions of section 6 of the 
Legislative, Executive, and Judicial Appropriation Act for the 
fiscal years ending June 30, 1921, and June 30, 1922, if 
otherwise entitled thereto.
  Sec. 209. The Bureau, when directed by the President, shall 
make a detailed study of the departments and establishments for 
the purpose of enabling the President to determine what changes 
(with a view of securing greater economy and efficiency in the 
conduct of the public service) should be made in (1) the 
existing organization, activities, and methods of business of 
such departments or establishments, (2) the appropriations 
therefor, (3) the assignment of particular activities to 
particular services, or (4) the regrouping of services. The 
results of such study shall be embodied in a report or reports 
to the President, who may transmit to Congress such report or 
reports or any part thereof with his recommendations on the 
matters covered thereby.
    Sec. 210. The Bureau shall prepare for the President a 
codification of all laws or parts of laws relating to the 
preparation and transmission to Congress of statements of 
receipts and expenditures of the Government and of estimates of 
appropriations. The President shall transmit the same to 
Congress on or before the first Monday in December, 1921, with 
a recommendation as to the changes which, in his opinion, 
should be made in such laws or parts of laws.
    Sec. 211. The powers and duties relating to the compiling 
of estimates now conferred and imposed upon the Division of 
Bookkeeping and Warrants of the office of the Secretary of the 
Treasury are transferred to the Bureau.
    Sec. 212. The Bureau shall, at the request of any committee 
of either House of Congress having jurisdiction over revenue or 
appropriations, furnish the committee such aid and information 
as it may request.
    Sec. 213. Under such regulations as the President may 
prescribe, (1) every department and establishment shall furnish 
to the Bureau such information as the Bureau may from time to 
time require, and (2) the Director and the Assistant Director, 
or any employee of the Bureau when duly authorized, shall, for 
the purpose of securing such information, have access to, and 
the right to examine, any books, documents, papers, or records 
of any such department or establishment.
    Sec. 214. (a) The head of each department and establishment 
shall designate an official thereof as budget officer therefor, 
who, in each year under his direction and on or before a date 
fixed by him, shall prepare the departmental estimates.
    (b) Such budget officer shall also prepare, under the 
direction of the head of the department or establishment, such 
supplemental and deficiency estimates as may be required for 
its work.
    Sec. 215. The head of each department and establishment 
shall revise the departmental estimates and submit them to the 
Bureau on or before September 15 of each year. In case of his 
failure so to do, the President shall cause to be prepared such 
estimates and data as are necessary to enable him to include in 
the Budget estimates and statements in respect to the work of 
such department or establishment.
    Sec. 216. The departmental estimates and any supplemental 
or deficiency estimates submitted to the Bureau by the head of 
any department or establishment shall be prepared and submitted 
in such form, manner, and detail as the President may 
prescribe.
    Sec. 217. For expenses of the establishment and maintenance 
of the Bureau there is appropriated, out of any money in the 
Treasury not otherwise appropriated, the sum of $225,000, to 
continue available during the fiscal year ending June 30, 1922.

                  TITLE III--GENERAL ACCOUNTING OFFICE

    Sec. 301. There is created an establishment of the 
Government to be known as the General Accounting Office, which 
shall be independent of the executive departments and under the 
control and direction of the Comptroller General of the United 
States. The offices of Comptroller of the Treasury and 
Assistant Comptroller of the Treasury are abolished, to take 
effect July 1, 1921. All other officers and employees of the 
office of the Comptroller of the Treasury shall become officers 
and employees in the General Accounting Office at their grades 
and salaries on July 1, 1921, and all books, records, 
documents, papers, furniture, office equipment and other 
property of the office of the Comptroller of the Treasury shall 
become the property of the General Accounting Office. The 
Comptroller General is authorized to adopt a seal for the 
General Accounting Office.
    Sec. 302. There shall be in the General Accounting Office a 
Comptroller General of the United States and an Assistant 
Comptroller General of the United States, who shall be 
appointed by the President with the advice and consent of the 
Senate, and shall receive salaries of $10,000 and $7,500 a 
year, respectively. The Assistant Comptroller General shall 
perform such duties as may be assigned to him by the 
Comptroller General, and during the absence or incapacity of 
the Comptroller General, or during a vacancy in that office, 
shall act as Comptroller General.
    Sec. 303. Except as hereinafter provided in this section, 
the Comptroller General and the Assistant Comptroller General 
shall hold office for fifteen years. The Comptroller General 
shall not be eligible for reappointment. The Comptroller 
General or the Assistant Comptroller General may be removed at 
any time by joint resolution of Congress after notice and 
hearing, when, in the judgment of Congress, the Comptroller 
General or Assistant Comptroller General has become permanently 
incapacitated or has been inefficient, or guilty of neglect of 
duty, or of malfeasance in office, or of any felony or conduct 
involving moral turpitude, or for no other cause and in no 
other manner except by impeachment. Any Comptroller General or 
Assistant Comptroller General removed in the manner herein 
provided shall be ineligible for reappointment to that office. 
When a Comptroller General or Assistant Comptroller General 
attains the age of seventy years, he shall be retired from his 
office.
    Sec. 304. All powers and duties now conferred or imposed by 
law upon the Comptroller of the Treasury or the six auditors of 
the Treasury Department, and the duties of the Division of 
Bookkeeping and Warrants of the Office of the Secretary of the 
Treasury relating to keeping the personal ledger accounts of 
disbursing and collecting officers, shall, so far as not 
inconsistent with this Act, be vested in and imposed upon the 
General Accounting Office and be exercised without direction 
from any other officer. The balances certified by the 
Comptroller General shall be final and conclusive upon the 
executive branch of the Government. The revision by the 
Comptroller General of settlements made by the six auditors 
shall be discontinued, except as to settlements made before 
July 1, 1921.
    The administrative examination of the accounts and vouchers 
of the Postal Service now imposed by law upon the Auditor for 
the Post Office Department shall be performed on and after July 
1, 1921, by a bureau in the Post Office Department to be known 
as the Bureau of Accounts, which is hereby established for that 
purpose. The Bureau of Accounts shall be under the direction of 
a Comptroller, who shall be appointed by the President with the 
advice and consent of the Senate, and shall receive a salary of 
$5,000 a year. The Comptroller shall perform the administrative 
duties now performed by the Auditor for the Post Office 
Department and such other duties in relation thereto as the 
Postmaster General may direct. The appropriation of $5,000 for 
the salary of the Auditor for the Post Office Department for 
the fiscal year 1922 is transferred and made available for the 
salary of the Comptroller, Bureau of Accounts, Post Office 
Department. The officers and employees of the Office of the 
Auditor for the Post Office Department engaged in the 
administrative examination of accounts shall become officers 
and employees of the Bureau of Accounts at their grades and 
salaries on July 1, 1921. The appropriations for salaries and 
for contingent and miscellaneous expenses and tabulating 
equipment for such office for the fiscal year 1922, and all 
books, records, documents, papers, furniture, office equipment, 
and other property shall be apportioned between, transferred 
to, and made available for the Bureau of Accounts and the 
General Accounting Office, respectively, on the basis of duties 
transferred.
    Sec. 305. Section 236 of the Revised Statutes is amended to 
read as follows:
    ``Sec. 236. All claims and demands whatever by the 
Government of the United States or against it, and all accounts 
whatever in which the Government of the United States is 
concerned, either as debtor or creditor, shall be settled and 
adjusted in the General Accounting Office.''
    Sec. 306. All laws relating generally to the administration 
of the departments and establishments shall, so far as 
applicable, govern the General Accounting Office. Copies of any 
books, records, papers, or documents, and transcripts from the 
books and proceedings of the General Accounting Office, when 
certified by the Comptroller General or the Assistant 
Comptroller General under its seal, shall be admitted as 
evidence with the same effect as the copies and transcripts 
referred to in sections 882 and 886 of the Revised Statutes.
    Sec. 307. The Comptroller General may provide for the 
payment of accounts or claims adjusted and settled in the 
General Accounting Office, through disbursing officers of the 
several departments and establishments, instead of by warrant.
    Sec. 308. The duties now appertaining to the Division of 
Public Moneys of the Office of the Secretary of the Treasury, 
so far as they relate to the covering of revenues and 
repayments into the Treasury, the issue of duplicate checks and 
warrants, and the certification of outstanding liabilities for 
payment, shall be performed by the Division of Bookkeeping and 
Warrants of the Office of the Secretary of the Treasury.
    Sec. 309. The Comptroller General shall prescribe the 
forms, systems, and procedure for administrative appropriation 
and fund accounting in the several departments and 
establishments, and for the administrative examination of 
fiscal officers' accounts and claims against the United States.
    Sec. 310. The offices of the six auditors shall be 
abolished, to take effect July 1, 1921. All other officers and 
employees of these offices except as otherwise provided herein 
shall become officers and employees of the General Accounting 
Office at their grades and salaries on July 1, 1921. All books, 
records, documents, papers, furniture, office equipment, and 
other property of these offices, and of the Division of 
Bookkeeping and Warrants, so far as they relate to the work of 
such division transferred by section 304, shall become the 
property of the General Accounting Office. The General 
Accounting Office shall occupy temporarily the rooms now 
occupied by the office of the Comptroller of the Treasury and 
the six auditors.
    Sec. 311. (a) The Comptroller General shall appoint, 
remove, and fix the compensation of such attorneys and other 
employees in the General Accounting Office as may from time to 
time be provided for by law.
    (b) All such appointments, except to positions carrying a 
salary at a rate of more than $5,000 a year, shall be made in 
accordance with the civil-service laws and regulations.
    (c) No person appointed by the Comptroller General shall be 
paid a salary at a rate of more than $6,000 a year, and not 
more than four persons shall be paid a salary at a rate of more 
than $5,000 a year.
    (d) All officers and employees of the General Accounting 
Office, whether transferred thereto or appointed by the 
Comptroller General, shall perform such duties as may be 
assigned to them by him.
    (e) All official acts performed by such officers or 
employees specially designated therefor by the Comptroller 
General shall have the same force and effect as though 
performed by the Comptroller General in person.
    (f) The Comptroller General shall make such rules and 
regulations as may be necessary for carrying on the work of the 
General Accounting Office, including rules and regulations 
concerning the admission of attorneys to practice before such 
office.
    Sec. 312. (a) The Comptroller General shall investigate, at 
the seat of government or elsewhere, all matters relating to 
the receipt, disbursement, and application of public funds, and 
shall make to the President when requested by him, and to 
Congress at the beginning of each regular session, a report in 
writing of the work of the General Accounting Office, 
containing recommendations concerning the legislation he may 
deem necessary to facilitate the prompt and accurate rendition 
and settlement of accounts and concerning such other matters 
relating to the receipt, disbursement, and application of 
public funds as he may think advisable. In such regular report, 
or in special reports at any time when Congress is in session, 
he shall make recommendations looking to greater economy or 
efficiency in public expenditures.
    (b) He shall make such investigations and reports as shall 
be ordered by either House of Congress or by any committee of 
either House having jurisdiction over revenue, appropriations, 
or expenditures. The Comptroller General shall also, at the 
request of any such committee, direct assistants from his 
office to furnish the committee such aid and information as it 
may request.
    (c) The Comptroller General shall specially report to 
Congress every expenditure or contract made by any department 
or establishment in any year in violation of law.
    (d) He shall submit to Congress reports upon the adequacy 
and effectiveness of the administrative examination of accounts 
and claims in the respective departments and establishments and 
upon the adequacy and effectiveness of departmental inspection 
of the offices and accounts of fiscal officers.
    (e) He shall furnish such information relating to 
expenditures and accounting to the Bureau of the Budget as it 
may request from time to time.
    Sec. 313. All departments and establishments shall furnish 
to the Comptroller General such information regarding the 
powers, duties, activities, organization, financial 
transactions, and methods of business of their respective 
offices as he may from time to time require of them; and the 
Comptroller General, or any of his assistants or employees, 
when duly authorized by him, shall, for the purpose of securing 
such information, have access to and the right to examine any 
books, documents, papers, or records of any such department or 
establishment. The authority contained in this section shall 
not be applicable to expenditures made under the provisions of 
section 291 of the Revised Statutes.
    Sec. 314. The Civil Service Commission shall establish an 
eligible register for accountants for the General Accounting 
Office, and the examinations of applicants for entrance upon 
such register shall be based upon questions approved by the 
Comptroller General.
    Sec. 315. (a) All appropriations for the fiscal year ending 
June 30, 1922, for the offices of the Comptroller of the 
Treasury and the six auditors, are transferred to and made 
available for the General Accounting Office, except as 
otherwise provided herein.
    (b) During such fiscal year the Comptroller General, within 
the limit of the total appropriations available for the General 
Accounting Office, may make such changes in the number and 
compensation of officers and employees appointed by him or 
transferred to the General Accounting Office under this Act as 
may be necessary.
    (c) There shall also be transferred to the General 
Accounting Office such portions of the appropriations for rent 
and contingent and miscellaneous expenses, including allotments 
for printing and binding, made for the Treasury Department for 
the fiscal year ending June 30, 1922, as are equal to the 
amounts expended from similar appropriations during the fiscal 
year ending June 30, 1921, by the Treasury Department for the 
offices of the Comptroller of the Treasury and the six 
auditors.
    (d) During the fiscal year ending June 30, 1922, the 
appropriations and portions of appropriations referred to in 
this section shall be available for salaries and expenses of 
the General Accounting Office, including payment for rent in 
the District of Columbia, traveling expenses, the purchase and 
exchange of law books, books of reference, and for all 
necessary miscellaneous and contingent expenses.
    Sec. 316. The General Accounting Office and the Bureau of 
Accounts shall not be construed to be a bureau or office 
created since January 1, 1916, so as to deprive employees 
therein of the additional compensation allowed civilian 
employees under the provisions of section 6 of the Legislative, 
Executive, and Judicial Appropriation Act for the fiscal year 
ending June 30, 1922, if otherwise entitled thereto.
    Sec. 317. The provisions of law prohibiting the transfer of 
employees of executive departments and independent 
establishments until after service of three years shall not 
apply during the fiscal year ending June 30, 1922, to the 
transfer of employees to the General Accounting Office.
    Sec. 318. This Act shall take effect upon its approval by 
the President: Provided, That sections 301 to 317, inclusive, 
relating to the General Accounting Office and the Bureau of 
Accounts, shall take effect July 1, 1921.
    Approved, June 10, 1921.
            The Budget and Accounting Procedures Act of 1950

                      (Chapter 946, 64 Stat. 832)

AN ACT To authorize the President to determine the form of the national 
    budget and of departmental estimates, to modernize and simplify 
 governmental accounting and auditing methods and procedures, and for 
                            other purposes.
  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Budget and Accounting Procedures Act 
of 1950''.

                   TITLE I--BUDGETING AND ACCOUNTING

                           PART I--BUDGETING
    Sec. 101. Section 2 of the Budget and Accounting Procedures 
Act, 1921 (42 Stat. 20), is amended by adding at the end 
thereof the following:
  ``The term `appropriations' includes, in appropriate context, 
funds and authorizations to create obligations by contract in 
advance of appropriations, or any other authority making funds 
available for obligation or expenditure.''
    Sec. 102 (a) Section 201 of such Act is amended to read as 
follows:
    ``Sec. 201. The President shall transmit to Congress during 
his first fifteen days of each regular session, the Budget, 
which shall set forth Budget messages, summary data and text, 
and supporting detail. The Budget shall set forth in such form 
and detail as the President may determine---
          ``(a) functions and activities of the Government;
          ``(b) any other desirable classification of data;
          ``(c) a reconciliation of the summary data on 
        expenditures with proposed appropriations;
          ``(d) estimated expenditures and proposed 
        appropriations necessary in his judgement for the 
        support of the Government for the ensuing fiscal year, 
        except that estimated expenditures and proposed 
        appropriations for such year for the legislative branch 
        of the Government and the Supreme Court of the United 
        Stated shall be transmitted to the President on or 
        before October 15 of each year and shall be included by 
        him in the Budget without revision;
          ``(e) estimated receipts of the Government during the 
        ensuing fiscal year, under (1) laws existing at the 
        time the Budget is transmitted and also (2) under the 
        revenue proposals, if any, contained in the Budget;
          ``(f) actual appropriations, expenditures, and 
        receipts of the Government during the last completed 
        fiscal year;
          ``(g) estimated expenditures and receipts, and actual 
        or proposed appropriations of the Government during the 
        fiscal year in progress;
          ``(h) balanced statements of (1) the condition of the 
        Treasury at the end of the last completed fiscal year, 
        (2) the estimated condition of the Treasury at the end 
        of the fiscal year in progress, and (3) the estimated 
        condition of the Treasury at the end of the ensuing 
        fiscal year if the financial proposals contained in the 
        Budget are adopted;
          ``(i) all essential facts regarding the bonded and 
        other indebtedness of the Government; and
          ``(j) such other financial statements and data as is 
        in his opinion are necessary or desirable in order to 
        make known in all practicable detail the financial 
        condition of the Government.''
  (b) Section 203 of such Act is amended to read as follows:
    ``Sec. 203. (a) The President from time to time may 
transmit to Congress such proposed supplemental or deficiency 
appropriations as in his judgement (1) are necessary on account 
of laws enacted after the transmission of the Budget, or (2) 
are other wise in the public interest. He shall accompany such 
proposals with a statement of the reasons therefor, including 
the reasons for their omission from the Budget.
  ``(b) Whenever such proposed supplemental or deficiency 
appropriations reach an aggregate, which if they had been 
contained in the Budget, would have required the President to 
make a recommendation under subsection (a) of section 202, he 
shall thereupon make such recommendation.''
  (c) Section 204 of such Act is amended to read as follows:
    ``Sec. 204. (a) Except as other wise provided in this Act, 
the contents, order, and arrangement of then proposed 
appropriations and the statement of expenditures and estimated 
expenditures contained in the Budget or transmitted under 
section 203, and notes and other data submitted therewith, 
shall conform to requirements prescribed by the President.
  ``(b) The Budget, and statements furnished with any proposed 
supplemental or deficiency appropriations, shall be accompanied 
by information as to personal services and other objects of 
expenditure in the same manner and form as in the Budget for 
the fiscal year 1950: Provided, That this requirement may be 
waived, or modified, either generally or in specific cases, by 
joint action of the committees of Congress having jurisdiction 
over appropriation: And provided further, That nothing in this 
Act shall be construed to limit the authority of committees of 
Congress to request and receive such information in such form 
as they may desire in consideration of and action upon budget 
estimates.''
  (d) Section 205 of Such Act is amended to read as follows:
    ``Sec. 205. Whenever any basic change is made in the form 
of the Budget, the President, in addition top the Budget, shall 
transmit Congress such explanatory notes and tables as may be 
necessary to show where the various items embraced in the 
budget of the prior year are contained in the new Budget.''
  (e) The last sentence of section 207 of such Act is amended 
to read as follows: ``The Bureau, under such rules and 
regulations as the President may prescribe, shall prepare the 
Budget, and any proposed supplemental or deficiency 
appropriations, and to this end shall have authority to 
assemble, correlate, revise, reduce, or increase the requests 
for appropriations of the several departments or 
establishments.''
  (f) Section 214 of such Act is amended to read as follows:
    ``Sec. 214. The head of each department and establishment 
shall prepare or cause to be prepared in each year his requests 
for regular, supplemental, or deficiency appropriations.''
  (g) Section 215 of such Act is amended to read as follows:
    ``Sec. 215. The head of each department and establishment 
shall submit his requests for appropriations to the Bureau on 
or before a date which the President shall determine. In case 
of his failure to do so, the President shall cause such 
requests to be prepared as are necessary to enable him to 
include such requests with the Budget in respect to the work of 
such department or establishment.''
  (h) Section 216 of such Act is amended to read as follow:
    ``Sec. 216. Requests for regular, supplemental, or 
deficiency appropriations which are submitted to the Bureau by 
the head of any department or establishment shall be prepared 
and submitted as the President may determine in accordance with 
the provisions of section 201.''
                   government statistical activities
    Sec. 103. The President, through the Director of the Bureau 
of the Budget, is authorized and directed to develop programs 
and to issue regulations and orders for the improved gathering, 
compiling, analyzing, publishing, and disseminating of 
statistical information for any purpose by the various agencies 
in the executive branch of the Government. Such regulations and 
orders shall be adhered to by such agencies.
             improved administration of executive agencies
    Sec. 104. The President, through the Director of the Bureau 
of the Budget, is authorized and directed to evaluate and 
develop improved plans for the organization, coordination, and 
management of the executive branch of the Government with a 
view to efficient and economical service.
                         business-type budgets
    Sec. 105. The first two sentences of section 102 of the 
Government Corporation Control Act of 1945 (59 Stat. 597), are 
amended to read as follows: ``Each wholly owned Government 
corporation shall cause to be prepared annually a business-type 
budget which shall be submitted to the Bureau of the Budget, 
under such rules and regulations as the President may establish 
as to the date of submission, the form and content, the 
classifications of data, and the manner in which such budget 
program shall be prepared and presented.''

                   PART II---ACCOUNTING AND AUDITING

                              short title
    Sec. 110. This part may be cited as the ``Accounting and 
Auditing Act of 1950.''
                         declaration of policy
    Sec. 111. It is the policy of the Congress in enacting this 
part that--
  (a) The accounting of the Government provide full disclosure 
of the results of financial operations, adequate financial 
information needed in the management of operations and the 
formulation and execution of the Budget, and effective control 
over income, expenditures, funds, property, and other assets.
  (b) Full consideration be given to the needs and 
responsibilities of both the legislative and executive branches 
in the establishment of accounting and reporting systems and 
requirements.
  (c) The maintenance of accounting systems and the producing 
of financial reports with respect to the operations of 
executive agencies, including central facilities for bringing 
together and disclosing information on the results of the 
financial operations of the Government as a whole, be the 
responsibility of the executive branch.
  (d) The auditing for the Government, conducted by the 
Comptroller General of the United States as an agent of the 
Congress be directed at determining the extent to which 
accounting and related financial reporting fulfill the purposes 
specified, financial transactions have been consummated in 
accordance with laws, regulations or other legal requirements, 
and adequate internal financial control over operations is 
exercised, and afford an effective basis for the settlement of 
accounts of accountable officers.
  (e) Emphasis be placed on effecting orderly improvements 
resulting in simplified and more effective accounting, 
financial reporting, budgeting, and auditing requirements and 
procedures and on the elimination of those which involve 
duplication or which do not serve a purpose commensurate with 
the costs involved.
  (f) The Comptroller General of the United States, the 
Secretary of the Treasury, and the Director of the Bureau of 
the Budget conduct a continuous program for the improvement of 
accounting and financial reporting in the Government.
                  accounting and reporting provisions
    Sec. 112. (a) the Comptroller General of the United States, 
after consulting the Secretary of the Treasury and the Director 
of the Bureau of the Budget concerning their accounting, 
financial reporting, and budgetary needs, and considering the 
needs of the other executive agencies, shall prescribe the 
principles, standards, and related requirements for accounting 
to be observed by each executive agency, including requirements 
for suitable integration between the accounting processes of 
each executive agency and the accounting of the Treasury 
Department. Requirements prescribed by the Comptroller General 
shall be designed to permit the executive agencies to carry out 
their responsibilities under section 113 of this part, while 
providing a basis for integrated accounting for the Government, 
full disclosure of the results of the financial operations of 
each executive agency and the Government as a whole, and 
financial information and control necessary to enable the 
Congress and the president to discharge their respective 
responsibilities. The Comptroller General shall continue to 
exercise the authority vested in him by section 205(b) of the 
Federal Property and Administrative Services Act of 1949 (63 
Stat. 389) and, to the extent he deems necessary, the authority 
vested in him by section 309 of the Budget and Accounting Act, 
1921 (42 Stat. 25). Any such exercise of authority shall be 
consistent with the provisions of this section.
    (b) The General Accounting Office shall cooperate with the 
executive agencies in the development of their accounting 
systems, including the Treasury Department, in the development 
and establishment of the system of central accounting and 
reporting required by section 114 of this part. Such accounting 
systems shall be approved by the Comptroller General when 
deemed by him to be adequate and in conformity with the 
principles, standards, and related requirements prescribed by 
him.
    (c) The General Accounting Office shall from time to time 
review the accounting systems of the executive agencies. The 
results of such reviews shall be available to the heads of the 
executive agencies concerned, to the Secretary of the Treasury, 
and the Director of the Bureau of the Budget, and the 
Comptroller General shall make such reports thereon to the 
Congress as he deems proper.
    Sec. 113. (a) The head of each executive agency shall 
establish and maintain systems of accounting and internal 
control designed to provide--
          (1) full disclosure of the financial results of the 
        agency's activities;
          (2) adequate financial information needed for the 
        agency's management purposes;
          (3) effective control over and accountability for all 
        funds, property, and other assets for which the agency 
        is responsible, including appropriate internal audit;
          (4) reliable accounting results to serve as the basis 
        for preparation and support of the agency's budget 
        requests, for controlling the execution of its budget, 
        and for providing financial information required by the 
        Bureau of the Budget under section 213 of the Budget 
        and Accounting Act, 1921 (42 Stat. 23);
          (5) suitable integration of the accounting of the 
        agency with the accounting of the Treasury Department 
        in connection with the central accounting and reporting 
        responsibilities imposed on the Secretary of the 
        Treasury by section 114 of this part.
    (b) The accounting systems of executive agencies shall 
conform to the principles, standards, and related requirements 
prescribed by the Comptroller General pursuant to section 
112(a) of this part.
    Sec. 114. (a) The Secretary of the Treasury shall prepare 
such reports for the information of the President, the 
Congress, and the public as will present the results of the 
financial operations of the Government: Provided, That there 
shall be included such financial data as the director of the 
Bureau of the Budget may require in connection with the 
preparation of the Budget or for other purposes of the Bureau. 
Each executive agency shall furnish the Secretary of the 
Treasury such reports and information relating to its financial 
condition and operations as the Secretary, by rules and 
regulations, may require for the effective performance of his 
responsibilities under this section.
    (b) The Secretary of the Treasury is authorized to 
establish the facilities necessary to produce the financial 
reports requires by subsection (a) of this section. The 
Secretary is further authorized to reorganize the accounting 
functions and install, revise, or eliminate accounting 
procedures and financial reports of the Treasury Department in 
order to develop effective and coordinated systems of 
accounting and financial reporting in the several bureaus and 
offices of the Department with such concentration of accounting 
and reporting as is necessary to accomplish integration of 
accounting results for the activities of the Department and 
provide the operating center for the consolidation of 
accounting results of other executive agencies with those of 
the Department. The authority vested in and the duties imposed 
upon the Department by sections 10, 15, and 22 of the Act 
entitled ``An act making appropriations for the legislative, 
executive, and judicial branches of the Government for the 
fiscal year ending June thirtieth, eighteen hundred ninety-
five, and for other purposes'', approved July 31, 1894 (28 
Stat.162, 208-210), may be exercised and performed by the 
Secretary of the Treasury as part of his broader authority and 
duties under this section and in such a manner as to provide a 
unified system of central accounting and reporting on the most 
efficient and useful basis.
    (c) The system of central accounting and reporting provided 
for herein shall be consistent with the principles, standards, 
and related requirements prescribed by the Comptroller General 
pursuant to section 112 of this part.
    Sec. 115. (a) when the Secretary of the Treasury and the 
Comptroller General determine that existing procedures can be 
modified in interest of simplification, improvement, or 
economy, with sufficient safeguards over the control and 
accounting for the public funds, they may issue joint 
regulations providing for the waiving, in whole or in part, of 
the requirements of existing law that--
          (1) warrants be issued and countersigned in 
        connection with the receipt, retention, and 
        disbursement of public moneys and trust funds; and
          (2) funds be requisitioned, and advanced to 
        accountable officers under such separate appropriation 
        head or otherwise.
    (b) Such regulations may further provide for the payment of 
vouchers by authorized disbursing officers by means of checks 
issued against the general account of the Treasurer of the 
United States: Provided, That in such case the regulations 
shall provide for appropriate action in the event of 
delinquency by disbursing in the rendition of their accounts of 
for, other reasons arising out of the condition of the 
officers' accounts, including under necessary circumstances, 
the suspension or withdrawal of authority to disburse.
    Sec. 116. The Comptroller General is authorized to 
discontinue the maintenance in the General Accounting Office of 
appropriation, expenditure, limitation, receipt, and personal 
accounts when in his opinion the accounting systems and 
internal control of the executive, legislative, and judicial 
agencies are sufficient to enable him to perform properly the 
functions to which such accounts relate.
                          auditing provisions
    Sec. 117. (a) Except as otherwise specifically provided by 
law, the financial transactions of each executive, legislative, 
and judicial agency, including but not limited to the accounts 
of accountable officers, shall be audited by the General 
Accounting Office in accordance with such principles and 
procedures and under such rules and regulations as may be 
prescribed by the Comptroller General of the United States. In 
the determination of auditing procedures to be followed and the 
extent of examination of vouchers and other documents, the 
Comptroller General shall give due regard to generally accepted 
principles of auditing, including consideration of the 
effectiveness of accounting organizations and systems, internal 
audit and control, and related administrative practices of the 
respective agencies.
    (b) whenever the Comptroller General determines that he 
audit shall be conducted at the place or places where the 
accounts and other records of an executive agency are normally 
kept, he may require any executive agency to retain in whole or 
in part accounts of accountable officers, contracts, vouchers, 
and other documents, which are required under existing law to 
be submitted to the General Accounting Office, under such 
conditions and for such period not exceeding ten years as he 
may specify, unless a longer period is agreed upon with the 
executive agency: Provided, That under agreements between the 
Comptroller General and legislative and judicial agencies the 
provisions of this sentence may be extended to the accounts and 
records of such agencies.
                           general provisions
    Sec. 118. As used in this part, the term ``executive 
agency'' means any executive department or independent 
establishment in the executive branch of the Government but
    (a) except for the purposes of sections 114, 116, and 119 
shall not include any Government corporation or agency subject 
to the Government Corporation Control Act (59 Stat. 597), and
    (b) except for the purposes of sections 111, 114, and 116 
shall not include the Post Office Department.
    Sec. 119. The head of each executive agency is authorized 
to designate then place or places, at the seat of government or 
elsewhere, at which the administrative examination of fiscal 
officers' accounts will be performed, and with the concurrence 
of the Comptroller General to waive the administrative 
examination in whole or in part: Provided, That the same 
authority is hereby conferred upon the officers responsible for 
the administrative examination of accounts for legislative and 
judicial agencies.

                        TITLE II--APPROPRIATIONS

                    authorization for appropriations
    Sec. 201. No requests for legislation, which, if enacted 
would authorize subsequent appropriations for a department or 
establishment the executive branch of the Government, shall be 
transmitted to the Bureau of the Budget, to the President, or 
to the Congress by such department or establishment, or by any 
organization unit thereof, without the prior approval of the 
head of such department or establishment.
             adjustment of appropriation for reorganization
    Sec. 202. (a) When under authority of law a function or an 
activity is transferred or assigned from one agency within any 
department or establishment to another agency in the same 
department or establishment, the balance of appropriations 
which are determined by the head of such department or 
establishment to be available, and necessary to finance or 
discharge the function or activity so transferred or assigned 
may, with the approval of the President, be transferred to, and 
be available for use by, the agency to which said function or 
activity is transferred or assigned for any purpose for which 
said funds were originally available. Balances so transferred 
shall be credited to any applicable existing appropriation 
account or accounts, or to any new appropriation account or 
accounts, which are hereby authorized to be established, and 
shall be merged with funds in the applicable existing or newly 
established appropriation account or accounts and thereafter 
accounted for as one fund.
    (b) When under authority of law a function or activity is 
transferred or assigned from one department or establishment to 
another department or establishment, the balance of 
appropriations which are determined by the President to be 
available and necessary to finance or discharge the function or 
activity so transferred or assigned, shall be transferred to 
and be available for use by the department or establishment to 
which said function or activity is transferred or assigned for 
any purpose for which said funds were originally available. 
Balances so transferred shall be credited to any applicable 
existing appropriation account or accounts, or to any new 
appropriation account or accounts, which are hereby authorized 
to be established, and shall be merged with funds in the 
applicable existing or newly established appropriation account 
or accounts and thereafter accounted for as one fund.

               TITLE III--REPEALS AND SAVINGS PROVISIONS

                                repeals
    Sec. 301. The following Acts and parts of Acts are hereby 
repealed:
          (1) Section 10 of the Act of August 1, 1914 (38 Stat. 
        680; U.S.C., title 31, sec. 582).
          (2) So much of section 4 of the Act of June 20, 1874 
        (18 Stat. 109); U.S.C., title 31 sec. 583 (1)), as 
        reads: ``; and hereafter the Secretary of the Treasury 
        shall annually submit to Congress detailed estimates of 
        appropriations required for said expenses;''.
          (3) The last proviso in the first paragraph under the 
        heading ``Judgements; United States Courts'' of the Act 
        of April 27, 1904 (33 Stat. 422; U.S.C., title 31, sec 
        583 (2)).
          (4) The last sentence of section 5 of the Act of 
        August 5, 1882 (22 Stat. 256; U.S.C., title 31, sec. 
        583(3)).
          (5) So much of the matter appearing under the heading 
        ``Mints and Assay Offices'' of the Act of March 4, 1911 
        (36 Stat. 1292; U.S.C., title 31, sec. 583 (4)), as 
        reads: ``, and the Secretary of the Treasury shall, for 
        the fiscal year nineteen hundred and thirteen, and 
        annually thereafter, submit to Congress in the regular 
        book of estimates, detailed estimates for the expenses 
        of this Service''.
          (6) So much of the matter appearing under the heading 
        ``Treasury Department'' in the Act of August 26, 1912 
        (37 Stat. 596; U.S.C., title 31, sec. 583 (5)), as 
        reads: ``Provided further, That estimates hereunder 
        shall be submitted in detail for the fiscal year 1914, 
        and annually thereafter''.
          (7) The last sentence of the paragraph under the 
        heading ``Federal Farm Loan Board'' of the Act of 
        September 8, 1916 (U.S.C., title 31 sec. 583 (7)), 
        appearing on page 803 of volume 39 of the Statutes at 
        Large; and the third and last paragraph under the 
        heading ``Federal Farm Loan Bureau'' of the Act of 
        March 3, 1917 (U.S.C. title 31, sec. 583 (7)), 
        appearing on page 1084 of volume 39 of the Statutes at 
        Large.
          (8) The last sentence on page 48 of volume 30 of the 
        Statutes at Large, in the Act of June 4, 1897 (U.S.C., 
        title 31, sec. 583 (8)).
          (9) The first sentence of section 6 of the Act of 
        March 3, 1919 (40 Stat. 1309; U.S.C., title 31, sec. 
        583 (10)).
          (10) The last proviso under the heading ``Office of 
        the Chief Signal Officer'' of the Act of March 2, 1907 
        (34 Stat. 11539; U.S.C. title 31, sec. 583 (11)).
          (11) The sixth full paragraph appearing on page 648 
        of volume 29 of the Statutes at Large in the Act of 
        March 3, 1897 (U.S.C., title 31, sec. 583 (13)).
          (12) So much of the matter following the heading 
        ``Bureau of Mines'' in the Act of March 3, 1915 (38 
        Stat. 858; U.S.C., title 31, sec. 583 (14)) as reads: 
        ``, estimates shall be submitted specifically for all 
        personal services required permanently and entirely in 
        the Bureau of Mines at Washington, District of 
        Columbia, and previously paid from lump-sum or general 
        appropriations;''.
          (13) The proviso at the end of the fourth paragraph 
        on page 312 of volume 37 of the Statutes at Large, in 
        the Act of August 17, 1912 (U.S.C., title, sec. 583 
        (15)).
          (14) The third paragraph appearing on page 1082 of 
        volume 32 of the Statutes at Large, in the Act of March 
        3, 1903 (U.S.C., title 31, sec. 583 (16)).
          (15) So much of section 12 of the Act of June 26, 
        1906 (34 Stat. 480; U.S.C., title 31, sec. 583 (18)), 
        as reads: ``and he shall annually submit to Congress 
        estimates to cover the cost of the establishment and 
        maintenance of fish hatcheries in Alaska, the salaries 
        and actual traveling expenses of such officials, and 
        for such other expenditure as may be necessary to carry 
        out the provisions of this Act''.
          (16) The proviso at the end of the first full 
        paragraph on page 456 of volume 32 of the Statutes at 
        Large, in the Act of June 28, 1902 (U.S.C., title 31, 
        sec. 583 (20)).
          (17) The second full paragraph on page 841 of volume 
        38 of the Statutes at Large, in the Act of March 3, 
        1915 (U.S.C., title 31, sec. 583 (21)).
          (18) The fourth full paragraph on page 2 of volume 38 
        of the Statutes at Large, in the Act of May 1, 1913 
        (U.S.C., title 31, sec. 583 (22)).
          (19) The proviso at the end of the second paragraph 
        under the heading ``Bureau of Immigration and 
        Naturalization'' of the Act of March 4, 1907 (34 Stat. 
        1329, 1330; U.S.C., title 31, sec. 583 (23)).
          (20) The second full paragraph on page 374 of volume 
        35 of the Statutes at Large, in the Act of May 27, 1908 
        (U.S.C., title 31 sec. 583 (25)).
          (21) So much of the last paragraph on page 396 of 
        volume 37 of the Statutes at Large, in the Act of 
        August 23, 1912 (U.S.C., title 31, sec. 583 (26)), as 
        reads: ``For the fiscal year nineteen hundred and 
        fourteen and annually thereafter estimates in detail 
        shall be submitted for all personal services required 
        in the Indian Office,''.
          (22) The proviso at the end of the first full 
        paragraph on page 646 of volume 41 of the Statutes at 
        Large, in the Act of May 29, 1920 (U.S.C., title 31, 
        sec. 584).
          (23) Section 3660 of the Revised Statutes (U.S.C., 
        title 31, sec. 585).
          (24) Section 4 of the Act of June 22, 1906 (34 Stat. 
        448; U.S.C., title 31, sec. 586).
          (25) Section 4 of the Act of March 4, 1909 (35 Stat. 
        907; U.S.C., title 31, sec. 587).
          (26) Section 2 of the Act of June 30, 1906 (34 Stat. 
        762; U.S.C., title 31, sec. 588); and the proviso in 
        the first paragraph on page 1367 of volume 34 of the 
        Statutes at Large, in the Act of March 4, 1907 (U.S.C., 
        title 31, sec. 588).
          (27) Section 3661, as amended, of the Revised 
        Statutes (U.S.C., title 31, sec. 589).
          (28) So much of the first paragraph on page 255 of 
        volume 24 of the Statutes at Large, in the Act of 
        August 4, 1886 (U.S.C., title 31, sec. 590), as reads: 
        ``: Provided further, That all printing and engraving 
        for the Geological Survey, the Coast and Geodetic 
        Survey, the Hydrographic Office of the Navy Department, 
        and the Signal Service shall hereafter be estimated for 
        separately and in detail, and appropriated for 
        separately for each of said bureaus''.
          (29) Section 3662 of the Revised Statutes (U.S.C., 
        title 31, sec. 591).
          (30) Section 3663 of the Revised Statutes, as amended 
        (U.S.C. title 31, sec. 594).
          (31) Section 3664 of the Revised Statutes (U.S.C. 
        title 31, sec. 597).
          (32) Section 3665 of the Revised Statutes (U.S.C. 
        title 31, sec. 598).
          (33) The second paragraph under the heading 
        ``Revenue-Cutter Service'' in the Act of March 2, 1889 
        (25 Stat. 907; U.S.C., title 31, sec. 600).
          (34) So much of the second full paragraph on page 512 
        of volume 24 of the Statutes at Large, in the Act of 
        March 3, 1887 (U.S.C., title 31, sec. 601), as reads: 
        ``That the Secretary of the Treasury shall for the 
        fiscal year eighteen hundred and eighty-seven, and for 
        each fiscal year thereafter in the annual estimates, 
        report to Congress the number of persons employed 
        outside the District of Columbia, as superintendents, 
        clerks, watchmen and other wise, and paid from 
        appropriations for the construction of public buildings 
        showing where said persons are employed, in what 
        capacity, the length of time and at what rate of 
        compensation.''.
          (35) So much of the sixth full paragraph on page 374 
        of volume 26 of the Statutes at Large, in the Act of 
        August 30, 1980 (U.S.C. title 31, sec. 601) as reads: 
        ``; and hereafter the Secretary of the Treasury shall 
        annually report to Congress in the book of estimates a 
        statement of the expenditure of the appropriation for 
        `repairs and preservation of public buildings' which 
        shall show the amount expended on each public building 
        and the number of persons employed and paid salaries 
        from such appropriation''.
          (36) So much of section 1317 of the Revenue Act of 
        1921 (42 Stat. 314; U.S.C., title 31, sec. 602) as 
        reads: ``; and the Secretary of the Treasury shall 
        submit for the fiscal year 1921, and annually 
        thereafter, an estimate of appropriations to refund and 
        pay back duties or taxes erroneously, or illegally 
        assessed or collected under the internal-revenue laws, 
        and to pay judgements, including interests and costs, 
        rendered for taxes or penalties erroneously or 
        illegally assessed or collected under the internal-
        revenue laws''.
          (37) The first paragraph on page 133 of volume 22 of 
        the Statutes at Large, in the Act of July 1, 1882 
        (U.S.C., title 31, sec. 603).
          (38) The eighth paragraph under the heading ``Foreign 
        Intercourse'' of the Act of May 3, 1905 (33 Stat. 1214; 
        U.S.C., title 31, sec. 603).
          (39) The last paragraph on page 48 of volume 30 of 
        the Statutes at Large, in the Act of June 4, 1897 
        (U.S.C., title 31, sec. 604).
          (40) The eighth paragraph under the heading ``Under 
        the Engineer Department'' of the Act of February 13, 
        1913 (37 Stat. 671; U.S.C., title 31, sec. 605).
          (41) The sixth paragraph under the heading 
        ``Fortifications in Insular Possessions'' of the Act of 
        March 3, 1905 (33 Stat. 847; U.S.C., title 31, sec. 
        606).
          (42) So much of the first section of the Act of 
        August 4, 1886 (24 Stat. 246; U.S.C., title 31, sec. 
        607), as reads: ``the estimates for the Army and Navy 
        hospital service shall be submitted as a part of the 
        military establishment''.
          (43) The first full paragraph on page 117 of volume 
        31 of the Statutes at Large, in the Act of April 17, 
        1900 (U.S.C., title 31, sec. 609).
          (44) Section 3668 of the Revised Statutes (U.S.C., 
        title 31, sec. 610).
          (45) So much of the first paragraph on page 357 of 
        volume 20 of the Statutes at Large, in the Act of March 
        3, 1879 (U.S.C., title 31, sec. 611), as reads: ``: 
        Provided That hereafter, in making this estimates for 
        railway mail service the Postmaster General shall 
        separate the estimate for postal-car service from the 
        general estimates; and in case any increase of 
        diminution of service by postal cars shall be made by 
        him, the reasons therefor shall be given in his annual 
        report next succeeding such increase or diminution''.
          (46) So much of the first paragraph under the heading 
        ``United States Geological Survey'' in the Act of March 
        3, 1887 (24 Stat. 527; U.S.C., title 31, sec. 612), as 
        reads: ``; and hereafter the estimates for the 
        Geological Survey shall be itemized''.
          (47) The first paragraph on page 455 of volume 32 of 
        the Statutes at Large, in the Act of June 28, 1902 
        (U.S.C., title 31, sec. 612).
          (48) Section 4 of the Act of August 15, 1876 (19 
        Stat. 200; U.S.C., title 31, sec. 613).
          (49) The fourth paragraph of section 26 of the Act of 
        June 31, 1913 (38 Stat. 103; U.S.C., title 31, sec. 
        613).
          (50) The eighth full paragraph on page 1421 of volume 
        36 of the Statutes at Large, in the Act of March 4, 
        1911 (U.S.C., title 31, sec. 614).
          (51) The eighth full paragraph on page 1206 of volume 
        33 of the Statutes at Large, in the Act of March 3, 
        1905 (U.S.C., title 31, sec. 615).
          (52) The fourth full paragraph under the heading 
        ``Government in the Territories'' of the Act of July 
        16, 1914 (38 Stat. 479; U.S.C., title 31, sec. 616).
          (53) The first full paragraph on page 492 of volume 
        39 of the Statutes at Large, in the Act of August 11, 
        1916 (U.S.C., title 31, sec. 617).
          (54) The proviso in the first paragraph under the 
        heading ``Rent in the District of Columbia'' of the Act 
        of March 4, 1915 (38 Stat.1108; U.S.C., title 31 sec. 
        617).
          (55) The seventh paragraph on page 433 of volume 32 
        of the Statutes at Large, in the Act of June 28, 1902 
        (U.S.C., title 31 sec. 618).
          (56) The ninth full paragraph on page 755 of volume 
        36 of the Statutes at Large, in the Act of June 25, 
        1910 (U.S.C., title 31 sec. 618).
          (57) The fourth full paragraph on page 362 of volume 
        27 of the Statutes at Large, in the Act of August 5, 
        1892 (U.S.C., title 31, sec. 619).
          (58) The first full paragraph on page 764 of volume 
        36 of the Statutes at Large, in the Act of June 25, 
        1910 (U.S.C., title 31, sec. 620).
          (59) Section 6 of the Act of August 1, 1914 (38 Stat. 
        679; U.S.C., title 31, sec. 621).
          (60) The last full sentence in the first paragraph on 
        page 254 of volume 23 of the Statutes at Large, in the 
        Act of July 7, 1884 (U.S.C., title 31, sec. 622).
          (61) Section 5 of the Act of June 30, 1906 (34 Stat. 
        763; U.S.C., title 31, sec. 626).
          (62) The proviso at the end of the first paragraph on 
        page 579 of volume 37 of the Statutes at Large, in the 
        Act of August 24, 1912 (U.S.C., title 31, sec. 626).
          (63) Section 7, as amended, of the Act of August 26, 
        1912 (37 Stat. 626; 37 Stat. 790; U.S.C., title 31, 
        sec. 629).
          (64) The fourth full paragraph on page 854 of volume 
        37 of the Statute at Large, in the Act of March 4, 1913 
        (U.S.C., title 31, sec. 630).
          (65) The proviso at the end of the seventh paragraph 
        on page 1030 of volume 31 of the Statutes at Large, in 
        the Act of March 3, 1901 (U.S.C., title 31, sec. 633).
          (66) The second paragraph under the heading 
        ``Contingent, Bureau of Ordnance'' of the Act of July 
        12, 1921 (42 Stat. 128; U.S.C., title 31, sec. 636), 
        down through the first proviso therein.
          (67) So much of the third paragraph under the heading 
        ``Contingent Expenses, Navy Department'' of the Act of 
        June 22, 1906 (34 Stat. 427; U.S.C., title 31, sec. 
        637), as reads: ``and hereafter it shall not be lawful 
        to expend, for any of the offices or bureaus of the 
        Navy Department at Washington, any sum out of 
        appropriations made for the naval establishment for any 
        of the purposes mentioned or authorized in the said 
        foregoing paragraph''.
          (68) So much of the paragraph under the heading 
        ``Increase of the Navy, Equipment'' of the Act of March 
        3, 1915 (38 Stat. 952; U.S.C., title 31, sec. 348) as 
        reads: ``and beginning with July first, nineteen 
        hundred and fifteen, equipment outfits shall be charged 
        to appropriation `Increase of the Navy, Construction 
        and Machinery' ''.
          (69) The two proviso in the paragraph under the 
        heading ``Fuel and Transportation'' of the Act of March 
        3, 1915 (38 Stat. 944; U.S.C., title 31, sec. 649).
          (70) The proviso in the tenth paragraph on page 236 
        of volume 28 of the Statutes at Large, in the Act of 
        August 6, 1894 (U.S.C., title 31, sec. 650).
          (71) The fourth full paragraph on page 1175 of volume 
        34 of the Statutes as Large, in the Act of March 2, 
        1907 (U.S.C., title 31, sec. 655).
          (72) So much of the first full paragraph on page 1391 
        of volume 42 of the Statutes at Large, in the Act of 
        March 2, 1923 (U.S.C., title 31, sec. 656), as reads: 
        ``and the Budget estimates for each of such 
        appropriations shall hereafter carry separately the 
        amounts required for such transportation costs''.
          (73) The proviso in the seventh full paragraph on 
        page 520 of volume 32 of the Statutes at Large, in the 
        Act of June 30, 1902 (U.S.C., title 31, sec. 657).
          (74) The proviso in lines 2 through 8 on page 710 of 
        volume 36 of the Statutes at Large, in the Act of June 
        25, 1910 (U.S.C., title 31, sec. 664).
          (75) Section 3682 of the Revised Statutes (U.S.C., 
        title 31, sec. 674).
          (76) Section 3683 of the Revised Statutes (U.S.C., 
        title 31, sec. 675).
          (77) The second full paragraph on page 1303 of volume 
        41 of the Statutes at Large, in the Act of March 3, 
        1921 (U.S.C., title 31, sec. 676).
          (78) The proviso in lines 7 though 17 on page 203 of 
        volume 21 of the Statutes at Large, in the Act of June 
        19, 1878 (U.S.C., title 31, sec. 677).
          (79) Section 3684 of the Revised Statutes (U.S.C., 
        title 31, sec. 681).
          (80) Section 6 of the Act of May 30, 1908 (U.S.C., 
        title 31, sec. 683).
          (81) So much of the paragraph under the heading ``Pay 
        of Assistant Custodians and Janitors'' on pages 1153 
        and 1154 of volume 31 of the Statutes at Large, in the 
        Act of March 3, 1901 (U.S.C., title 31, sec. 684), as 
        reads: ``, and hereafter no other fund appropriated 
        shall be used for this service''.
          (82) The second paragraph under the heading ``United 
        States Commerce Court'' of the Act of March 4, 1911 (36 
        Stat; U.S.C., title 31, sec. 687).
          (83) Section 26 of the Act of June 30, 1913 (38 Stat. 
        103, U.S.C., title 31, sec. 688).
          (84) Section 400 of the Second Deficiency 
        Appropriation Act, 1947 (U.S.C., title 31, sec. 694).
          (85) Section 607 of the Act of June 30, 1945, as 
        amended (59 Stat. 304; U.S.C., title 5, sec. 947).
          (86) Section 3 of the Act of March 3, 1875, as 
        amended (18 Stat. 370; U.S.C., title 31, sec. 624).
          (87) So much of the Act of March 26, 1934, as amended 
        (48 Stat. 466; U.S.C., title 5, sec. 118c), as reads: 
        ``with budget estimates''.
          (88) So much of the paragraph under the heading 
        ``Department of State'' in the Act of August 5, 1909 
        (36 Stat. 119; U.S.C., title 5, sec. 157), as reads: 
        ``and estimates for further appropriations hereunder 
        shall include in detail salaries for all persons to be 
        employed and paid in the Department of State at 
        Washington, District of Columbia''.
          (89) The last proviso under the head ``Working 
        Capital Fund'' in the Act of July 12, 1943 (57 Stat. 
        393; U.S.C., title 5, sec. 558a).
          (90) So much of section 17 of the Act of May 22, 
        1920, as amended (41 Stat. 620; U.S.C., title 5, sec. 
        730), as reads: ``annually to the Bureau of the 
        Budget''.
          (92) The last sentence of Section 35 of the Act of 
        September 7, 1916, as amended (39 Stat. 749; U.S.C., 
        title 5, sec. 785).
          (93) So much of section 1 of the Act of October 1, 
        1980 (26 Stat. 653; U.S.C., title 10, sec. 214), as 
        reads: ``and the Signal Corps of the Army shall remain 
        a part of the Military Establishment under the 
        direction of the Secretary of War, and all estimates 
        for its support shall be included with other estimates 
        for the support of the Military Establishment''.
          (94) The last proviso of section 4 of the Act of 
        March 12, 1926 (44 Stat. 206; U.S.C., title 10, sec. 
        1597).
          (95) So much of section 1 of the Act of June 12, 
        1917, as amended (40 Stat. 153; U.S.C., title 16, sec. 
        452) as reads: ``and the Secretary of the Interior is 
        directed to submit, for the fiscal year nineteen 
        hundred and nineteen and annually thereafter, estimates 
        of the amounts required for the care, maintenance, and 
        development of the said parks.''
          (96) So much of section 1 of the Act of July 24, 
        1876, as amended (19 Stat. 99; U.S.C., title 24, sec. 
        278), as requires estimates for the care and 
        maintenance of the national military cemeteries to be 
        submitted annually by the Director of the National Park 
        Service.
          (97) So much of section 1 of the Act of January 24, 
        1923 (42 Stat. 1208; U.S.C., title 31, sec. 12), as 
        reads: ``The aggregate of all estimates of 
        appropriations from the `reclamation fund' contained in 
        the Budget for any fiscal year shall be included in the 
        totals of the Budget for that year.''
          (98) The second paragraph under the heading ``Pay, 
        Miscellaneous'' of the Act of March 3, 1909 (35 Stat. 
        754; U.S.C., title 31 sec. 609a).
          (99) The third paragraph under the heading ``Office 
        of the Fourth Assistant Postmaster General'' of the Act 
        of June 9, 1896 (29 Stat. 316; U.S.C., title 31, sec. 
        610a).
          (100) The last proviso under the heading ``National 
        Home for Disabled Volunteer Soldiers'' of the Act of 
        October 2, 1888, as amended (25 Stat. 543; U.S.C., 
        title 31 sec. 719).
          (101) Section 119 of the Act of June 3, 1916 (39 
        Stat. 213; U.S.C., title 32, sec. 25).
          (102) So much of the fourth full paragraph on page 
        558 of volume 39 of the Statutes at Large in the Act of 
        August 29, 1916 (U.S.C., title 34, sec. 504), as reads: 
        ``and the Secretary of the Navy shall each year, in the 
        annual estimates, report to Congress the number of 
        persons so employed, their duties, and the amount paid 
        to each''.
          (103) The last proviso in the third paragraph on page 
        377 of volume 37 of the Statutes at Large in the Act of 
        August 23, 1912 (U.S.C., title 39, sec. 769).
          (104) Section 27 of the Act of January 12, 1895, as 
        amended (28 Stat. 604; U.S.C., title 44 sec. 37).
          (105) The eighth full paragraph on page 382 of volume 
        35 of the Statutes at Large in the Act of May 27, 1908 
        (U.S.C., title 44, sec. 37).
          (106) The last paragraph under the heading 
        ``Government in the Territories'' in the Act of June 
        20, 1874 (18 Stat. 99; U.S.C., title 48, sec. 1456).
                           saving provisions
    Sec. 302. (a) The omission of any provision of law from the 
provisions of law repealed under section 301 shall not be 
construed as limiting the application of section 201 or 216 of 
the Budget and Accounting Act, 1921, as amended, or the Powers 
of the President thereunder, or as evidencing an intent that 
such provision was not to be superseded by such sections.
    (b) Whenever any law authorizes expenditures for a 
particular object or purpose to be made from an appropriation 
item referred to in such law by the specific title theretofore 
used for that appropriation item in the appropriation Act 
concerned, and thereafter may be made from any corresponding 
appropriation item.
    (c) Except where authority for performance of a function is 
specifically repealed in section 301, none of the provisions of 
such section shall be construed as affecting the jurisdiction 
or responsibility of any agency or officer of the Government 
over any function or organizational unit referred to in such 
section.
    (d) Existing laws, policies, procedures, and directives 
pertaining to functions covered by this Act, and not 
inconsistent herewith or repealed hereby, shall remain in full 
force and effect unless and until superseded, or except as they 
may be amended, under the authority of this Act or other 
appropriate authority.
    Approved September 12, 1950.
                          Parts 1, 2, and 3 of

                 Legislative Reorganization Act of 1970

                           Public Law 91-510

                            (84 Stat. 1140)

   AN ACT To improve the operations of the legislative branch of the 
              Federal Government, and for other purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act, divided into titles, parts, and sections according to the 
following table of contents, may be cited as the ``Legislative 
Reorganization Act of 1970''.\16\
---------------------------------------------------------------------------
    \16\ Only parts 1, 2, and 3, of title II, ``Fiscal Controls,'' of 
this law are reproduced here.
---------------------------------------------------------------------------

                       TITLE II--FISCAL CONTROLS

           PART 1--BUDGETARY AND FISCAL INFORMATION AND DATA
              budgetary and fiscal data processing system
    Sec. 201. The Secretary of the Treasury and the Director of 
the Office of Management and Budget, in cooperation with the 
Comptroller General of the United States, shall develop, 
establish, and maintain, insofar as practicable, for use by all 
Federal agencies, a standardized information and data 
processing system for budgetary and fiscal data.
                    budget standard classifications
    Sec. 202. (a) The Secretary of the Treasury and the 
Director of the Office of Management and Budget, in cooperation 
with the Comptroller General, shall develop, establish, and 
maintain standard classifications of programs, activities, 
receipts, and expenditures of Federal agencies in order--
          (1) to meet the needs of the various branches of the 
        Government; and
          (2) to facilitate the development, establishment, and 
        maintenance of the data processing system under section 
        201 through the utilization of modern automatic data 
        processing techniques.
The initial classifications under this subsection shall be 
established on or before December 31, 1971.
  (b) The Secretary of the Treasury and the Director of the 
Office of Management and Budget shall submit a report to the 
Senate and the House of Representatives on or before September 
1 of each year, commencing with 1971, with respect to the 
performance during the preceding fiscal year of the functions 
and duties imposed on them by section 201 and subsection (a) of 
this section. The reports made under the subsection in 1971 and 
1972 shall set forth the progress achieved in the development 
of classifications under subsection (a) of this section. The 
reports made in years thereafter shall include information with 
respect to changes in, and additions to, classifications 
previously established. Each support report shall include such 
comments of the Comptroller General as he deems necessary or 
advisable.
    availability to congress of budgetary, fiscal, and related data
    Sec. 203. Upon request of any committee of either House, or 
of any joint committee of the two Houses, the Secretary of the 
Treasury and the Director of the Office of Management and 
Budget shall--
          (1) furnish to such committee or joint committee 
        information as to the location and nature of data 
        available in the various and expenditures of such 
        agencies; and
          (2) to the extent feasible, prepare for such 
        committee or joint committee summary tables of such 
        data.
          assistance to congress by general accounting office
    Sec. 204. (a) The Comptroller General shall review and 
analyze the results of Government programs and activities 
carried on under existing law, including the making of cost 
benefits studies, when ordered by either House of Congress, or 
upon his own initiative, or when requested by any committee of 
the House of Representatives or the Senate, or any joint 
committee of the two Houses, having jurisdiction over such 
programs and activities.
      (b) The Comptroller General shall have available in the 
General Accounting Office employees who are expert in analyzing 
and conducting cost benefit studies of Government programs. 
Upon request of any committee of either House or any joint 
committee of the two Houses, the Comptroller General shall 
assist such committee or joint committee, or the staff of such 
committee or joint committee--
          (1) in analyzing cost benefit studies furnished by 
        any Federal agency to such committee or joint 
        committee; or
          (2) in conducting cost benefit studies of programs 
        under the jurisdiction of such committee or joint 
        committee.
 power and duties of comptroller general in connection with budgetary, 
                      fiscal, and related matters
    Sec. 205. (a) The Comptroller General shall establish 
within the General Accounting Office such office or division, 
or such offices or divisions, as he considers necessary to 
carry out the functions and duties imposed on him by the 
provisions of this title.
    (b) The Comptroller General shall include in his annual 
report to the Congress information with respect to the 
performance of the functions and duties imposed on him by the 
provisions of this title.
   preservation of existing authorities and duties under budget and 
                     accounting and other statutes
    Sec. 206. Nothing contained in this Act shall be 
constructed as impairing any authority or responsibility of the 
Secretary of the Treasury, the Director of the Office of 
Management and Budget, and the Comptroller General of the 
United States under the Budget and Accounting Act, 1921, as 
amended, and the Budget and Accounting Procedures Act of 1950, 
as amended, or any other statutes.
                               definition
    Sec. 207. As used in this title, the term ``Federal 
agency'' means any department, agency, wholly owned Government 
corporation, establishment, or instrumentality of the 
Government of the United States or the government of the 
District of Columbia.
                           PART 2--THE BUDGET
                    supplemental budget information
    Sec. 221. (a) Section 201(a) of the Budget and Accounting 
Act, 1921, as amended (31 U.S.C. 11), is amended--
          (1) by striking out the word ``and'' at the end of 
        subparagraph (10)
          (2) by striking out the period at the end of 
        subparagraph (11) and inserting in lieu of the period a 
        semicolon and the word ``and''; and
          (3) by adding immediately below subparagraph (11) the 
        following new subparagraph:
          ``(12) with respect to each proposal in the Budget 
        for new or additional legislation which would create or 
        expand any function, activity, or authority, in 
        addition to those functions, activities, and 
        authorities then existing or as then being administered 
        and operated, a tabulation showing--
                  ``(A) the amount proposed in the Budget for 
                appropriation and for expenditure in the 
                ensuring fiscal year on account of such 
                proposal; and
                  ``(B) the estimated appropriation required on 
                account of such proposal in each of the four 
                fiscal years, immediately following that 
                ensuing fiscal year, during which such proposal 
                is to be in effect.''.
    (b) Section 201 of the Budget and Accounting Act, 1921, as 
amended (31 U.S.C. 11) is amended by striking out the 
terminated and obsolete subsections (b), (c), (d), (e), and (f) 
and inserting in lieu thereof the following new subsections:
    ``(b) The President shall transmit to the Congress, on or 
before June 1 of each year, beginning with 1972 a supplemental 
summary of the Budget for the ensuing fiscal year transmitted 
to the Congress by the President under subsection (a) of this 
section. Such supplemental summary--
          ``(1) shall reflect with respect to that ensuing 
        fiscal year--
                  ``(A) all substantial alterations in or 
                reappraisals of estimates of expenditures and 
                receipts, and
                  ``(B) all substantial obligations imposed on 
                that budget after its transmission to the 
                Congress;
          ``(2) shall contain current information with respect 
        to those matters covered by subparagraph (8) and 
        clauses (2) and (3) of subparagraph (9) of subsection 
        (a) of this section; and
          ``(3) shall contain such additional information, in 
        summary form, as the President considers necessary or 
        advisable to provide the Congress with a complete and 
        current summary of information with respect to that 
        Budget and the then currently estimated functions, 
        obligations, requirements, and financial condition of 
        the Government for that ensuring fiscal year.
    ``(c) The President shall transmit to the Congress, on or 
before June 1 of each year, beginning with 1972, in such form 
and detail as he may determine--
          ``(1) summaries of estimated expenditures, for the 
        first four fiscal years following the ensuring fiscal 
        year for which the Budget was transmitted to the 
        Congress by the President under subsection (a) of this 
        section, which will be required under continuing 
        programs which have a legal commitment for future years 
        or are considered mandatory under existing law; and
          ``(2) summaries of estimated expenditures, in fiscal 
        years following such ensuing fiscal year, of balances 
        carried over from such ensuring fiscal year.''.
  PART 3--UTILIZATION OF REPORTS AND EMPLOYEES OF GENERAL ACCOUNTING 
                                 OFFICE
assistance by general accounting office to congressional committees in 
 connection with proposed legislation and committee review of federal 
                        programs and activities
    Sec. 231. At the request of any committee of the House of 
Senate, or of any joint committee of the two Houses, the 
Comptroller General shall explain to, and discuss with, the 
committee or joint committee making the request, or the staff 
of such committee or joint committee, any report made by the 
General Accounting Office which would assist such committee in 
connection with--
          (1) its consideration of proposed legislation, 
        including requests for appropriations, or
          (2) its review of any program, or of any activity of 
        any Federal agency, which is within the jurisdiction of 
        such committee or joint committee.
 delivery of general accounting office to congressional committees of 
                          reports to congress
    Sec. 232. Whenever the General Accounting Office submits 
any reports to the Congress, the Comptroller General shall 
deliver copies of such report to--
          (1) the Committees on Appropriations of the House and 
        Senate,
          (2) the Committees on Government Operations of the 
        House and Senate, and
          (3) any other committee of the House or Senate, or 
        any joint committee of the two Houses, which has 
        requested information on any program or part thereof, 
        or any activity of any Federal agency, which is the 
        subject, in whole or in part, of such report.
furnishing to congressional committees by general accounting office of 
                         its reports generally
    Sec. 233. At the request of any committee of the House or 
Senate, or of any joint committee of the two Houses, the 
Comptroller General shall make available to such committee or 
joint committee a copy of any report of the General Accounting 
Office which was not delivered to that committee or joint 
committee under section 232 of this Act.
furnishing to committees and members of congress by general accounting 
  office of monthly and annual lists of its reports; availability of 
              reports to committees and members on request
    Sec. 234. The Comptroller General shall prepare, once each 
calendar month, a list of all reports of the General Accounting 
Office issued during the immediately preceding calendar month, 
and, not less than once each calendar year, a cumulative list 
of all reports of the General Accounting Office issued during 
the immediately preceding twelve months, and transmit a copy of 
each such list of reports to each committee, Member of the 
House or Senate, or the Resident Commissioner, as the case may 
be, a copy of each report so listed and requested.
  assignments of employees of general accounting office to duty with 
                         committees of congress
    Sec. 235. (a) Notwithstanding any other provision of law, 
the Comptroller General may not assign or detail any employee 
of the General Accounting Office to full-time duty on a 
continuing basis with any committee of the Senate or House of 
Representatives or with any joint committee of Congress for any 
period of more than one year.
    (b) The Comptroller General shall include in his annual 
report to the Congress the following information--
          (1) the name of each employee assigned or detailed to 
        any committee of the Senate or House of Representative 
        or any joint committee of Congress;
          (2) the name of each committee or joint committee to 
        which each such employee is assigned or detailed;
          (3) the length of the period of such assignment or 
        detail of such employee;
          (4) a statement as to whether such assignment or 
        detail is finished or is currently in effect; and
          (5) the pay of such employee, his travel, 
        subsistence, and other expenses, the agency 
        contributions for his retirement and life and health 
        insurance benefits, and other necessary monetary 
        expenses for personnel benefits on account of such 
        employee, paid out of appropriations available to the 
        General Accounting Office during the period of the 
        assignment or detail of such employee, or, if such 
        assignment or detail is currently in effect during that 
        part of the period of such assignment or detail which 
        has been completed.
                             agency reports
    Sec. 236. Whenever the General Accounting Office has made a 
report which contains recommendations to the head of any 
Federal agency, such agency shall--
          (1) not later than sixty days after the date of such 
        report, submit a written statement to the Committees on 
        Government Operations of the House of Representatives 
        and the Senate of the action taken by such agency with 
        respect to such recommendations; and
          (2) in connection with the first request for 
        appropriations for that agency submitted to the 
        Congress more than sixty days after the date of such 
        report, submit a written statement to the Committees on 
        Appropriations of the House of Representatives and the 
        Senate of the action taken by such agency with respect 
        to such recommendations.
    October 26, 1970.
                    Impoundment Control Act of 1974

                      Title X of Public Law 93-344

                             (88 Stat. 332)

                        PART A--GENERAL PROVISIONS

                               disclaimer
    Sec. 1001. Nothing contained in this Act, or in any 
amendments made by this Act, shall be construed as--
          (1) asserting or conceding the constitutional powers 
        or limitations of either the Congress or the President;
          (2) ratifying or approving any impoundment heretofore 
        or hereafter executed or approved by the President or 
        any other Federal officer or employee, except insofar 
        as pursuant to statutory authorization then in effect;
          (3) affecting in any way the claims or defenses of 
        any party to litigation concerning any impoundment; or
          (4) superseding any provision of law which requires 
        the obligation of budget authority or the making of 
        outlays thereunder.
                    amendment to antideficiency act
    Sec. 1002. Section 3679(c)(2) of the Revised Statutes, as 
amended (31 U.S.C. 665), is amended to read as follows:
          ``(2) In apportioning an appropriation, reserves may 
        be established solely to provide for contingencies, or 
        to effect savings whenever savings are made possible by 
        or through changes in requirements or greater 
        efficiency of operations. Whenever it is determined by 
        an officer designated in subsection (d) of this section 
        to make apportionments and reapportionments that any 
        amount so reserved will not be required to carry out 
        the full objectives and scope of the appropriation 
        concerned. He shall recommend the rescission of such 
        amount in the manner provided in the Budget and 
        Accounting Act, 1921, for estimates of appropriations. 
        Except as specifically provided by particular 
        appropriations Acts or other laws, no reserves shall be 
        established other than as authorized by this 
        subsection. Reserves established pursuant to this 
        subsection shall be reported to the Congress in 
        accordance with the Impoundment Control Act of 1974.''
           repeal of existing impoundment reporting provision
    Sec. 1003. Section 203 of the Budget and Accounting 
Procedures Act of 1950 is repealed.
     PART B--CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS, 
            RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY
                              definitions
    Sec. 1011. For purposes of this part--
          (1) ``deferral of budget authority'' includes--
                  (A) withholding or delaying the obligation or 
                expenditure of budget authority (whether by 
                establishing reserves or otherwise) provided 
                for projects or activities; or
                  (B) any other type of Executive action or 
                inaction which effectively precludes the 
                obligation or expenditure of budget authority, 
                including authority to obligate by contract in 
                advance of appropriations as specifically 
                authorized by law;
          (2) ``Comptroller General'' means the Comptroller 
        General of the United States;
          (3) ``rescission bill'' means a bill or joint 
        resolution which only rescinds, in whole or in part, 
        budget authority proposed to be rescinded in a special 
        message transmitted by the President under section 
        1012, and upon which the Congress completes action 
        before the end of the first period of 45 calendar days 
        of continuous session of the Congress after the date on 
        which the President's message is received by the 
        Congress;
          (4) ``impoundment resolution'' means a resolution of 
        the House of Representatives or the Senate which only 
        expresses its disapproval of a proposed deferral of 
        budget authority set forth in a special message 
        transmitted by the President under section 1013; and
          (5) continuity of a session of the Congress shall be 
        considered as broken only by an adjournment of the 
        Congress sine die, and the days on which either House 
        is not in session because of an adjournment of more 
        than 3 days to a day certain shall be excluded in the 
        computation of the 45-day period referred to in 
        paragraph (3) of this section and in section 1012, and 
        the 25-day periods referred to in sections 1016 and 
        1017(b)(1). If a special message is transmitted under 
        section 1012 during any Congress and the last session 
        of such Congress adjourns sine die before the 
        expiration of 45 calendar days of continuous session 
        (or a special message is so transmitted after the last 
        session of the Congress adjourns sine die), the message 
        shall be deemed to have been retransmitted on the first 
        day of the succeeding Congress and the 45-day period 
        referred to in paragraph (3) of this section and in 
        section 1012 (with respect to such message) shall 
        commence on the day after such first day.
                     rescission of budget authority
    Sec. 1012. (a) Transmittal of Special Message.--Whenever 
the President determines that all or part of any budget 
authority will not be required to carry out the full objectives 
or scope of programs for which it is provided or that such 
budget authority should be rescinded for fiscal policy or other 
reasons (including the termination of authorized projects or 
activities for which budget authority has been provided), or 
whenever all or part of budget authority provided for only one 
fiscal year is to be reserved from obligation for such fiscal 
year, the President shall transmit to both Houses of Congress a 
special message specifying--
          (1) the amount of budget authority which he proposes 
        to be rescinded or which is to be so reserved;
          (2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific project or 
        governmental functions involved;
          (3) the reasons why the budget authority should be 
        rescinded or is to be so reserved;
          (4) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        rescission or of the reservation; and
          (5) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed rescission or 
        the reservation and the decision to effect the proposed 
        rescission or the reservation, and to the maximum 
        extent practicable, the estimated effect of the 
        proposed rescission or the reservation upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
    (b) Requirement to Make Available for Obligation.--Any 
amount of budget authority proposed to be rescinded or that is 
to be reserved as set forth in such special message shall be 
made available for obligation unless, within the prescribed 45-
day period, the Congress has completed action on a rescission 
bill rescinding all or part of the amount proposed to be 
rescinded or that is to be reserved.
         disapproval of proposed deferrals of budget authority
    Sec. 1013. (a) Transmittal of Special Message.--Whenever 
the President, the Director of the Office of Management and 
Budget, the head of any department or agency of the United 
States, or any officer or employee of the United States 
proposes to defer any budget authority provided for a specific 
purpose or project, the President shall transmit to the House 
of Representatives and the Senate a special message 
specifying--
          (1) the amount of the budget authority proposed to be 
        deferred;
          (2) any account, department, or establishment of the 
        Government to which such budget authority is available 
        for obligation, and the specific projects or 
        governmental functions involved;
          (3) the period of time during which the budget 
        authority to be deferred;
          (4) the reasons for the proposed deferral, including 
        any legal authority invoked by him to justify the 
        proposed deferral;
          (5) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary effect of the proposed 
        deferral; and
          (6) all facts, circumstances, and considerations 
        relating to or bearing upon the proposed deferral and 
        the decision to effect the proposed deferral, including 
        an analysis of such facts, circumstances, and 
        considerations in terms of their application to any 
        legal authority and specific elements of legal 
        authority invoked by him to justify such proposed 
        deferral, and to the maximum extent practicable, the 
        estimated effect of the proposed deferral upon the 
        objects, purposes, and programs for which the budget 
        authority is provided.
A special message may include one or more proposed deferrals of 
budget authority. A deferral may not be proposed for any period 
of time extending beyond the end of the fiscal year in which 
the special message proposing the deferral is transmitted to 
the House and the Senate.
    (b) Requirement To Make Available for Obligation.--Any 
amount of budget authority proposed to be deferred, as set 
forth in a special message transmitted under subsection (a), 
shall be made available for obligation if either House of 
Congress passes an impoundment resolution disapproving such 
proposed deferral.
    (c) Exception.--The provisions of this section do not apply 
to any budget authority proposed to be rescinded or that is to 
be reserved as set forth in a special message required to be 
transmitted under section 1012.
                 transmission of messages; publication
    Sec. 1014. (a) Delivery to House and Senate.--Each special 
message transmitted under section 1012 or 1013 shall be 
transmitted to the House of Representatives and the Senate on 
the same day, and shall be delivered to the Clerk of the House 
of Representatives if the House is not in session, and to the 
Secretary of the Senate if the Senate is not in session. Each 
special message so transmitted shall be referred to the 
appropriate committee of the House of Representatives and the 
Senate. Each such message shall be printed as a document of 
each House.
    (b) Delivery to Comptroller General.--A copy of each 
special message transmitted under section 1012 or 1013 shall be 
transmitted to the Comptroller General on the same day it is 
transmitted to the House of Representatives and the Senate. In 
order to assist the Congress in the exercise of its functions 
under sections 1012 and 1013, the Comptroller General shall 
review each such message and inform the House of 
Representatives and the Senate as promptly as practicable with 
respect to--
          (1) in the case of a special message transmitted 
        under section 1012, the facts surrounding the proposed 
        rescission or the reservation of budget authority 
        (including the probable effects thereof); and
          (2) in the case of a special message transmitted 
        under section 1013, (A) the facts surrounding each 
        proposed deferral of budget authority (including the 
        probable effects thereof) and (B) whether or not (or to 
        what extent), in his judgment, such proposed deferral 
        is in accordance with existing statutory authority.
    (c) Transmission of Supplementary Messages.--If any 
information contained in a special message transmitted under 
section 1012 or 1013 is subsequently revised, the President 
shall transmit to both Houses of Congress and the Comptroller 
General a supplementary message stating and explaining such 
revision. Any such supplementary message shall be delivered, 
referred, and printed as provided in subsection (a). The 
Comptroller General shall promptly notify the House of 
Representatives and the Senate of any changes in the 
information submitted by him under his subsection (b) which may 
be necessitated by such revision.
    (d) Printing in Federal Register.--Any special message 
transmitted under section 1012 or 1013, and any supplementary 
message transmitted under subsection (c) shall be printed in 
the first issue of the Federal Register published after such 
transmittal.
    (e) Cumulative Reports of Proposed Rescissions, 
Reservations, and Deferrals of Budget Authority.--
          (1) The President shall submit a report to the House 
        of Representatives and the Senate, not later than the 
        10th day of each month during a fiscal year, listing 
        all budget authority for that fiscal year with respect 
        to which, as of the first day of such month--
                  (A) he has transmitted a special message 
                under section 1012 with respect to a proposed 
                rescission or a reservation; and
                  (B) he has transmitted a special message 
                under section 1013 proposing a deferral.
Such report shall also contain, with respect to each such 
proposed rescission or deferral, or each such reservation, the 
information required to be submitted in the special message 
with respect thereto under section 1012 or 1013.
          (2) Each report submitted under paragraph (1) shall 
        be printed in the first issue of the Federal Register 
        published after its submission.
                     reports by comptroller general
    Sec. 1015. (a) Failure To Transmit Special Message.--If the 
Comptroller General finds that the President, the Director of 
the Office of Management and Budget, the head of any department 
or agency of the United States, or any other officer or 
employee of the United States--
          (1) is to establish a reserve or proposes to defer 
        budget authority with respect to which the President is 
        required to transmit a special message under section 
        1012 or 1013; or
          (2) has ordered, permitted, or approved the 
        establishment of such a reserve or a deferral of budget 
        authority;
  and that the President has failed to transmit a special 
message with respect to such reserve or deferral, the 
Comptroller General shall make a report on such reserve or 
deferral and any available information concerning it to both 
Houses of Congress. The provisions of this part shall apply 
with respect to such reserve or deferral in the same manner and 
with the same effect as if such report of the Comptroller 
General were a special message transmitted by the President 
under section 1012 or 1013, and, for purposes of this part, 
such report shall be considered a special message transmitted 
under section 1012 or 1013.
    (b) Incorrect Classification of Special Message.--If the 
President has transmitted a special message to both Houses of 
Congress in accordance with section 1012 or 1013, and the 
Comptroller General believes that the President so transmitted 
the special message in accordance with one of those sections 
when the special message should have been transmitted in 
accordance with the other of those sections, the Comptroller 
General shall make a report to both Houses of the Congress 
setting forth his reasons.
                      suits by comptroller general
    Sec. 1016. If, under section 1012(b) or 1013(b), budget 
authority is required to be made available for obligation and 
such budget authority is not made available for obligation, the 
Comptroller General is hereby expressly empowered through 
attorneys of his own selection, to bring a civil action in the 
United States District Court for the District of Columbia to 
require such budget authority to be made available for 
obligation, and such court is hereby expressly empowered to 
enter in such civil action, against any department, agency, 
officer, or employee of the United States, any decree, 
judgment, or order which may be necessary or appropriate to 
make such budget authority available for obligation. The courts 
shall give precedence to civil actions brought under this 
section, and to appeals and writs from decisions in such 
actions, over all other civil actions, appeals, and writs. No 
civil action shall be brought by the Comptroller General under 
this section until the expiration of 25 calendar days of 
continuous session of the Congress following the date on which 
an explanatory statement by the Comptroller General of the 
circumstances giving rise to the action contemplated has been 
filed with the Speaker of the House of Representatives and the 
President of the Senate.
                     procedure in house and senate
    Sec. 1017. (a) Referral.--Any rescission bill introduced 
with respect to a special message or impoundment resolution 
introduced with respect to a proposed deferral of budget 
authority shall be refereed to the appropriate committee of the 
House of Representatives or the Senate, as the case may be.
    (b) Discharge of Committee.--
          (1) If the committee to which a rescission bill or 
        impoundment resolution has been referred has not 
        reported it at the end of 25 calendar days of 
        continuous session of the Congress after its 
        introduction, it is in order to move either to 
        discharge the committee from further consideration of 
        the bill or resolution or to discharge the committee 
        from further consideration of any other rescission bill 
        with respect to the same special message or impoundment 
        resolution with respect to the same proposed deferral, 
        as the case may be, which has been referred to the 
        committee.
          (2) A motion to discharge may be made only by an 
        individual favoring the bill or resolution, may be made 
        only if supported by one-fifth of the Members of the 
        House involved (a quorum being present), and is highly 
        privileged in the House and privileged in the Senate 
        (except that it may not be made after the committee has 
        reported a bill or resolution with respect to the same 
        special message or the same proposed deferral, as the 
        case may be); and debate thereon shall be limited to 
        not more than 1 hour, the time to be divided in the 
        House equally between those favoring and those opposing 
        the bill or resolution, and to be divided in the Senate 
        equally between, and controlled by, the majority leader 
        and the minority leader or their designees. An 
        amendment to the motion is not in order, and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
    (c) Floor Consideration in the House.--
          (1) When the committee of the House of 
        Representatives has reported, or has been discharged 
        from further consideration of, a rescission bill or 
        impoundment resolution, it shall at any time thereafter 
        be in order (even though a previous motion to the same 
        effect has been disagreed to) to move to proceed to the 
        consideration of the bill or resolution. The motion 
        shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor 
        shall it be in order to move to reconsider the vote by 
        which the motion is agreed to or disagreed to.
          (2) Debate on a rescission bill or impoundment 
        resolution shall be limited to not more than 2 hours, 
        which shall be divided equally between those favoring 
        and those opposing the bill or resolution. A motion 
        further to limit debate shall not be debatable. In the 
        case of an impoundment resolution, no amendment to, or 
        motion to recommit, the resolution shall be in order. 
        It shall not be in order to move to reconsider the vote 
        by which a rescission bill or impoundment resolution is 
        agreed to or disagreed to.
          (3) Motions to postpone, made with respect to the 
        consideration of a rescission bill or impoundment 
        resolution, and motions to proceed to the consideration 
        of other business, shall be decided without debate.
          (4) All appeals from the decisions of the Chair 
        relating to the application of the Rules of the House 
        of Representatives to the procedure relating to any 
        rescission bill or impoundment resolution shall be 
        decided without debate.
          (5) Except to the extent specifically provided in the 
        preceding provisions of this subsection, consideration 
        of any rescission bill or impoundment resolution and 
        amendments thereto (or any conference report thereon) 
        shall be governed by the Rules of the House of 
        Representatives applicable to other bills and 
        resolutions, amendments, and conference reports in 
        similar circumstances.
    (d) Floor Consideration in the Senate.--
          (1) Debate in the Senate on any rescission bill or 
        impoundment resolution, and all amendments thereto (in 
        the case of a rescission bill) and debatable motions 
        and appeals in connection therewith, shall be limited 
        to not more than 10 hours. The time shall be equally 
        divided between, and controlled by, the majority leader 
        and the minority leader or their designees.
          (2) Debate in the Senate on any amendment to a 
        rescission bill shall be limited to 2 hours, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the bill. Debate on an amendment to 
        an amendment, to such a bill, and debate on any 
        debatable motion or appeal in connection with such a 
        bill or an impoundment resolution shall be limited to 
        1, hours to be equally divided between, and controlled 
        by, the mover and the manager of the bill or 
        resolution, except that in the event the manager of the 
        bill or resolution is in favor of any such amendment, 
        motion, or appeal, the time in opposition thereto, 
        shall be controlled by the minority leader or his 
        designee. No amendment that is not germane to the 
        provisions of a rescission bill shall be received. Such 
        leaders, or either of them, may, from time to time 
        under their control on the passage of a rescission bill 
        or impoundment resolution, allot additional time to any 
        Senator during the consideration of any amendment, 
        debatable motion, or appeal.
          (3) A motion to further limit debate is not 
        debatable. In the case of a rescission bill, a motion 
        to recommit (except a motion to recommit with 
        instructions to report back within a specified number 
        of days, not to exceed 3, not counting any day on which 
        the Senate is not in session) is not in order. Debate 
        on any such motion to recommit shall be limited to one 
        hour, to be equally divided between, and controlled by, 
        the mover and the manager of the concurrent resolution. 
        In the case of an impoundment resolution, no amendment 
        or motion to recommit is in order.
          (4) The conference report on any rescission bill 
        shall be in order in the Senate at any time after the 
        third day (excluding Saturdays, Sundays, and legal 
        holidays) following the day on which such a conference 
        report is reported and is available to Members of the 
        Senate. A motion to proceed to the consideration of the 
        conference report may be made even though a previous 
        motion to the same effect has been disagree to.
          (5) During the consideration in the Senate of the 
        conference report on any rescission bill, debate shall 
        be limited to 2 hours, to be equally divided between, 
        and controlled by, the majority leader and minority 
        leader or their designees. Debate on any debatable 
        motion or appeal related to the conference report shall 
        be limited to 30 minutes, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the conference report.
          (6) Should the conference report be defeated, debate 
        on any request for a new conference and the appointment 
        of conferees shall be limited to one hour, to be 
        equally divided between, and controlled by, the manager 
        of the conference report and the minority leader or his 
        designee, and should any motion be made to instruct the 
        conferees before the conferees are named, debate on 
        such motion shall be limited to 30 minutes, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the conference report. Debate on any 
        amendment to any such instructions shall be limited to 
        20 minutes, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        conference report. In all cases when the manager of the 
        conference report is in favor of any motion, appeal, or 
        amendment, the time in opposition shall be under the 
        control of the minority leader or his designee.
          (7) In any case in which there are amendments in 
        disagreement, time on each amendment shall be limited 
        to 30 minutes, to be equally divided between, and 
        controlled by, the manager of the conference report and 
        the minority leader or his designee. No amendment that 
        is not germane to the provisions of such amendments 
        shall be received.
    Approved July 12, 1974.
           Federal Managers' Financial Integrity Act of 1982

                           Public Law 97-255

                             (96 Stat. 814)

  AN ACT To amend the Accounting and Auditing Act of 1950 to require 
   ongoing evaluations and reports on the adequacy of the systems of 
   internal accounting and administrative control of each executive 
                     agency, and for other purposes
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,
    Section 1. This Act may be cited as the ``Federal Managers' 
Financial Integrity Act of 1982''. (31 U.S.C. 65 note).
    Sec. 2. Section 113 of the Accounting and Auditing Act of 
1950 (31 U.S.C. 66a) is amended by adding at the end thereof 
the following new subsection:
    ``(d)(1)(A) To ensure compliance with the requirements of 
subsection (a)(3) of this section, internal accounting and 
administrative controls of each executive agency shall be 
established in accordance with standards prescribed by the 
Comptroller General, and shall provide reasonable assurances 
that--
          ``(i) obligations and costs are in compliance with 
        applicable law;
          ``(ii) funds, property, and other assets are 
        safeguarded against waste, loss, unauthorized use, or 
        misappropriation; and
          ``(iii) revenues and expenditures applicable to 
        agency operations are properly recorded and accounted 
        for to permit the preparation of accounts and reliable 
        financial and statistical reports and to maintain 
        accountability over the assets.
                  ``(B) The standards prescribed by the 
                Comptroller General under this paragraph shall 
                include standards to ensure the prompt 
                resolution of all audit findings.
                          ``(2) By December 31, 1982, the 
                        Director of the Office of Management 
                        and Budget, in consultation with the 
                        Comptroller General, shall establish 
                        guidelines for the evaluation by 
                        agencies of their systems of internal 
                        accounting and administrative control 
                        to determine such systems' compliance 
                        with the requirements of paragraph (1) 
                        of this subsection. The Director, in 
                        consultation with the Comptroller 
                        General, may modify such guidelines 
                        from time to time as deemed necessary.
                          ``(3) By December 31, 1983, and by 
                        December 31 of each succeeding year, 
                        the head of each executive agency 
                        shall, on the basis of an evaluation 
                        conducted in accordance with guidelines 
                        prescribed under paragraph (2) of this 
                        subsection, prepare a statement--
                  ``(A) that the agency's systems of internal 
                accounting and administrative control fully 
                comply with the requirements of paragraph (1); 
                or
                  ``(B) that such systems do not fully comply 
                with such requirements.
                          ``(4) In the event that the head of 
                        an agency prepares a statement 
                        described in paragraph (3)(B), the head 
                        of such agency shall include with such 
                        statement a report in which any 
                        material weaknesses in the agency's 
                        systems of internal accounting and 
                        administrative control are identified 
                        and the plans and schedule for 
                        correcting any such weakness are 
                        described.
                          ``(5) The statements and reports 
                        required by this subsection shall be 
                        signed by the head of each executive 
                        agency and transmitted to the President 
                        and the Congress. Such statements and 
                        reports shall also be made available to 
                        the public, except that, in the case of 
                        any such statement or report containing 
                        information which is--
                  ``(A) specifically prohibited from disclosure 
                by any provision of law; or
                  ``(B) specifically required by Executive 
                order to be kept secret in the interest of 
                national defense or the conduct of foreign 
                affairs, such information shall be deleted 
                prior to the report or statement being made 
                available to the public.''.
    Sec. 3. Section 201 of the Budget and Accounting Act, 1921 
(31 U.S.C. 11), is amended by adding at the end thereof the 
following new subsection:
          ``(k)(1) The President shall include in the 
        supporting detail accompanying each Budget submitted on 
        or after January 1, 1983, a separate statement, with 
        respect to each department and establishment, of the 
        amounts of appropriations requested by the President 
        for the Office of Inspector General, if any, of each 
        such establishment or department.
          ``(2) At the request of 8 committee of the Congress, 
        additional information concerning the amount of 
        appropriations originally requested by any office of 
        Inspector General, shall be submitted to such 
        committee.''.
    Sec. 4. Section 113(b) of the Accounting and Auditing Act 
of 1950 (31 U.S.C. 66a(b)), is amended by adding at the end 
thereof the following new sentence: ``Each annual statement 
prepared pursuant to subsection (d) of this section shall 
include a separate report on whether the agency's accounting 
system conforms to the principles, standards, and related 
requirements prescribed by the Comptroller General under 
section 112 of this Act.''. (31 U.S.C. 66a).
---------------------------------------------------------------------------
    This Act has not been amended as of December 31, 1995.
---------------------------------------------------------------------------
    Approved September 8, 1982.
                      Debt Collection Act of 1982

                           Public Law 97-365

                            (96 Stat. 1749)

AN ACT To increase the efficiency of Government-wide efforts to collect 
 debts owed The United States and to provide additional procedures for 
            the collection of debts owed the United States.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act maybe cited as the ``Debt Collection Act of 1982''. (5 
U.S.C. 5514 note).
                     AMENDMENTS TO THE PRIVACY ACT
    Sec. 2. (a) Section 552a(b) of title 5, United States Code, 
is amended--
          (1) by striking out ``or'' at the end of paragraph 
        (10);
          (2) by striking out the period at the end of 
        paragraph (11) and inserting in lieu thereof ``; or''; 
        and
          (3) by adding at the end thereof the following new 
        paragraph:
          ``(12) to a consumer reporting agency in accordance 
        with section 3(d) of the Federal Claims Collection Act 
        of 1966 (31 U.S.C. 952(d)).''.
    (b) Section 552a(m) of such title is amended--
          (1) by inserting ``(1)'' immediately after ``(m)''; 
        and
          (2) by adding at the end thereof the following new 
        paragraph:
          ``(2) A consumer reporting agency to which a record 
        is disclosed under section 3(d) of the Federal Claims 
        Collection Act of 1966 (31 U.S.C. 952(d)) shall not be 
        considered a contractor for the purposes of this 
        section.''.
         AMENDMENT TO THE FEDERAL CLAIMS COLLECTION ACT OF 1966
    Sec. 3. Section 3 of the Federal Claims Collection Act of 
1966 (31 U.S.C. 952) is amended by adding at the end thereof 
the following new subsection:
    ``(d)(1) Whenever the head of an agency attempts to collect 
a claim of the United States under subsection (a) of this 
section, or under any other statutory authority except the 
Internal Revenue Code of 1954, the head of the agency may 
disclose (26 U.S.C. 1 et seq.) to a consumer reporting agency 
information from a system of records that an individual is 
responsible for a claim if--
          ``(A) the notice for the system of records required 
        by section 552a(e)(4) of title 5, United States Code, 
        indicates that information in the system may be 
        disclosed to a consumer reporting agency;
          ``(B) the head of the agency has reviewed the claim 
        and determined that such claim is valid and overdue;
          ``(C) the head of the agency has sent a written 
        notice to the individual informing such individual*
                  ``(i) that the payment of the claim is 
                overdue;
                  ``(ii) that the agency intends to disclose to 
                a consumer reporting agency, within not less 
                than sixty days after sending such notice, that 
                the individual is responsible for such claim;
                  ``(iii) of the specific information intended 
                to be disclosed to the consumer reporting 
                agency; and
                  ``(iv) of the rights of such individual to a 
                full explanation of the claim, to dispute any 
                information in the records of the agency 
                concerning the claim, and to administrative 
                appeal or review with respect to the claim;''
          ``(D) such individual has not--
                  ``(i) repaid or agreed to repay such claim 
                under a repayment plan which is agreeable to 
                the head of the agency and is in a written form 
                signed by such individual; or
                  ``(ii) filed for review of such claim under 
                paragraph (2) of this subsection;
          ``(E) the agency has established procedures (i) for 
        promptly disclosing, to each consumer reporting agency 
        to which the original disclosure was made, any 
        substantial change in the status or amount of the 
        claim, (ii) for promptly verifying or correcting, as 
        appropriate, information concerning the claim upon the 
        request of any such consumer reporting agency for 
        verification of any or all information so disclosed, 
        and (iii) for obtaining satisfactory assurances from 
        each such consumer reporting agency concerning 
        compliance by such consumer reporting agency with the 
        Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) and 
        any other Federal law governing the provision of 
        consumer credit information; and
          ``(F) the information disclosed to the consumer 
        reporting agency is limited to (i) the name, address, 
        taxpayer identification number, and other information 
        necessary to establish the identity of the individual, 
        (ii) the amount, status, and history of the claim, and 
        (iii) the agency or program under which the claim 
        arose.
    ``(2) Prior to a disclosure to any consumer reporting 
agency under paragraph (1) of this subsection and at such other 
times as may be permitted by law, the head of the agency shall, 
upon request of any individual alleged by the agency to be 
responsible for the claim, provide for the review of the 
obligation of such individual, including an opportunity for 
reconsideration of the initial decision concerning the claim.
    ``(3) If an agency does not have a current address for an 
individual for the purpose of sending the notice required by 
paragraph (1)(C), the agency shall take reasonable action to 
locate the individual prior to disclosing any information to a 
consumer reporting agency under paragraph (1).
    ``(4) For purposes of this subsection--
          ``(A) the term `consumer reporting agency' means--
                  ``(i) a consumer reporting agency within the 
                meaning of section 603(f) of the Fair Credit 
                Reporting Act (15 U.E;.C. 1681a(f)); or
                  ``(ii) any person who, for monetary fees, 
                dues, or on a cooperative basis, regularly 
                engages in whole or in part in the practice of 
                (I) obtaining credit or other information on 
                consumers for the purpose of furnishing such 
                information to consumer reporting agencies (as 
                defined in clause (i) of this subparagraph), or 
                (II) serving as a marketing agent under 
                arrangements enabling third parties to obtain 
                such information from such reporting agencies;
          ``(B) the term `system of records' has the meaning 
        given such term under section 552a(a)(5) of title 5, 
        United States Code; and
          ``(C) the term `head of an agency' includes a 
        designee of the head of an agency.''.
     REQUIREMENT THAT APPLICANT FURNISH TAXPAYER IDENTIFYING NUMBER
                                 number
    Sec. 4. (a) In General.--Each Federal agency administering 
an included Federal loan program shall require any person 
applying for a loan under such program to furnish such person's 
taxpayer identifying number. (26 U.S.C. 6103 note).
    (b) Definitions.--For purposes of this section--
          (1) Included federal loan program.--The term 
        ``included Federal loan program'' has the meaning given 
        to such term by subparagraph (C) of section 6103(l)(3) 
        of the Internal Revenue Code of 1954 (as added by 
        section 7 of this Act).
          (2) Taxpayer identifying number.--The term ``taxpayer 
        identifying number'' has the meaning given to such term 
        by section 6109 of such Code. (26 U.S.C. 6109).
                             salary offset
    Sec. 5. (a) Subsection (a) of section 5514 of title 5, 
United States Code, is amended to read as follows:
    ``(a)(1) When the head of an agency or his designee 
determines that an employee, member of the Armed Forces or 
Reserve of the Armed Forces, is indebted to the United States 
for debts to which the United States is entitled to be repaid 
at the time of the determination by the head of an agency or 
his designee, or is notified of such a debt by the head of 
another agency or his designee the amount of indebtedness may 
be collected in monthly installments, or at officially 
established pay intervals, by deduction from the current pay 
account of the individual. The deductions may be made from 
basic pay, special pay, incentive pay, retired pay, retainer 
pay, or, in the case of an individual not entitled to basic 
pay, other authorized pay. The amount deducted for any period 
may not exceed 15 percent of disposable pay, except that a 
greater percentage may be deducted upon the written consent of 
the individual involved. If the individual retires or resigns, 
or if his employment or period of active duty otherwise ends, 
before collection of the amount of the indebtedness is 
completed, deduction shall be made from subsequent payments of 
any nature due the individual from the agency concerned.
    ``(2) Except as provided in paragraph (3) of this 
subsection, prior to initiating any proceedings under paragraph 
(1) of this subsection to collect any indebtedness of an 
individual, the head of the agency holding the debt or his 
designee, shall provide the individual with--
          ``(A) a minimum of thirty days written notice, 
        informing such individual of the nature and amount of 
        the indebtedness determined by such agency to be due, 
        the intention of the agency to initiate proceedings to 
        collect the debt through deductions from pay, and an 
        explanation of the rights of the individual under this 
        subsection;
          ``(B) an opportunity to inspect and copy Government 
        records relating to the debt;
          ``(C) an opportunity to enter into a written 
        agreement with the agency, under terms agreeable to the 
        head of the agency or his designee, to establish a 
        schedule for the repayment of the debt; and
          ``(D) an opportunity for a hearing on the 
        determination of the agency concerning the existence or 
        the amount of the debt, and in the case of an 
        individual whose repayment schedule is established 
        other than by a written agreement pursuant to 
        subparagraph (C), concerning the terms of the repayment 
        schedule. A hearing, described in subparagraph (D), 
        shall be provided if the individual, on or before the 
        fifteenth day following receipt of the notice described 
        in subparagraph (A), and in accordance with such 
        procedures as the head of the agency may prescribe, 
        files a petition requesting such a hearing. The timely 
        filing of a petition for hearing shall stay the 
        commencement of collection proceedings. A hearing under 
        subparagraph (D) may not be conducted by an individual 
        under the supervision or control of the head of the 
        agency, except that nothing in this sentence shall be 
        construed to prohibit the appointment of an 
        administrative law judge. The hearing official shall 
        issue a final decision at the earliest practicable date 
        but not later than sixty days after the filing of the 
        petition requesting the hearing.
    ``(3) the collection of any amount under this section shall 
be in accordance with the standards promulgated pursuant to the 
Federal Claims Collection Act of 1966 (31 U.S.C. 951 et seq.) 
or in accordance with any other statutory authority for the 
collection of claims of the United States or any agency 
thereof.
    ``(4) For purposes of this subsection--
          ``(A) `disposable pay' means that part of pay of any 
        individual remaining after the deduction from those 
        earnings of any amounts required by law to be withheld; 
        and
          ``(B) `agency' includes the United States Postal 
        Service and the Postal Rate Commission.''.
    (b) Section 5514(b) of title 5, United States Code, is 
amended by inserting ``(1)'' immediately after ``(b)'' and by 
adding at the end thereof the following new paragraph:
          ``(2) For purposes of section 7117(a) of this title, 
        no regulation prescribed to carry out subsection (a)(2) 
        of this section shall be considered to be a Government-
        wide rule or regulation.''.
    (c) The section heading of section 5514 of title 5, United 
States Code, is amended to read as follows:

``Sec. 5514. Installment deduction for indebtedness to the United 
                    States''

                 PROTECTION OF FEDERAL DEBT COLLECTORS
    Sec. 6. Section 1114 of title 18, United States Code, is 
amended--
          (1) by striking out ``or'' before ``any attorney''; 
        and
          (2) by inserting before ``shall be punished'' a comma 
        and the following: ``or any officer or employee of the 
        United States or any agency thereof designated to 
        collect or compromise a Federal claim in accordance 
        with the Federal Claims Collection Act of 1966 (31 
        U.S.C. 951 et seq.) or other statutory authority''.
                      SCREENING POTENTIAL DEBTORS
    Sec. 7. (a) Disclosure to Federal Lending Agency That 
Applicant Has Tax Delinquent Account.--Paragraph (3) of section 
6103(l) of the Internal Revenue Code of 1954 is amended to read 
as follows: (26 U.S.C. 6103).
          (3) Disclosure that applicant for federal loan has 
        tax delinquent account.--
                  ``(A) In general.--Upon written request, the 
                Secretary may disclose to the head of the 
                Federal agency administering any included 
                Federal loan program whether or not an 
                applicant for a loan under such program has a 
                tax delinquent account.
                  ``(B) Restriction on disclosure. Any 
                disclosure under subparagraph (A) shall be made 
                only for the purpose of, and to the extent 
                necessary in, determining the credit worthiness 
                of the applicant for the loan in question.
                  ``(C) Included federal loan program defined. 
                For purposes of this paragraph, the term 
                `included Federal loan program' means any 
                program--
                          ``(i) under which the United States 
                        or a Federal agency makes, guarantees, 
                        or insures loans, and
                          ``(ii) with respect to which there is 
                        in effect a determination by the 
                        Director of the Office of Management 
                        and Budget (which has been published in 
                        the Federal Register) that the 
                        application of this paragraph to such 
                        program will substantially prevent or 
                        reduce future delinquencies under such 
                        program.''
    (b) Technical Amendments.--
          (1) Clause (i) of section 6103(p)(3)(C) of such Code 
        is amended by striking out ``(1) (3) or (6) and 
        inserting in lieu thereof ``(1)(6)''.
          (2) Paragraph (4) of section 6103(p) of such Code is 
        amended--
                  (A) by striking out ``(1) (1), (2),'' in the 
                matter preceding subparagraph (A) and inserting 
                in lieu thereof ``(1) (1), (2),
                  (B) by striking out ``(1) (3), (6),'' and 
                inserting in lieu thereof ``(1)(6),'', and
                  (C) by striking out ``(1) (1), (2), or (5), 
                or (o)(1), the commission described in 
                subsection (1)(3)'' in subparagraph (F)(ii) and 
                inserting in lieu thereof ``(1) (1), (2), (3), 
                or (5), or (o)(1),''.
      (c) Effective Date.--The amendments made by this section 
shall apply in the case of loan applications made after 
September 30, 1982. (26 U.S.C. 6103 note).
    DISCLOSURE OF MAILING ADDRESS TO THIRD PARTIES FOR PURPOSES OF 
                       COLLECTING FEDERAL CLAIMS
    Sec. 8. (a) Paragraph (2) of section 6103(m) of the 
Internal Revenue Code of 1954 (relating to disclosure of 
taxpayer identity information) (26 U.S.C. 6103) is amended to 
read as follows:
          ``(2) Federal claims.--
                  ``(A) In general. Except as provided in 
                subparagraph (B), the Secretary may, upon 
                written request, disclose the mailing address 
                of a taxpayer for use by officers, employees, 
                or agents of a Federal agency for purposes of 
                locating such taxpayer to collect or compromise 
                a Federal claim against the taxpayer in 
                accordance with section 3 of the Federal Claims 
                Collection Act of 1966 (31 U.S.C. 952).
                  ``(B) Special rule for consumer reporting 
                agency. In the case of an agent of a Federal 
                agency which is a consumer reporting agency 
                (within the meaning of section 603(f) of the 
                Fair Credit Reporting Act (15 U.S.C. 
                l68la(f))), the mailing address of a taxpayer 
                may be disclosed to such agent under 
                subparagraph (A) only for the purpose of 
                allowing such agent to prepare a commercial 
                credit report on the taxpayer for use by such 
                Federal agency in accordance with section 3 of 
                the Federal Claims Collection Act of 1966 (31 
                U.S.C. 952).''
    (b) Safeguards.--Paragraph (4) of section 6103(p) (26 
U.S.C. 6103) of such Code (relating to safeguards) is amended 
by adding at the end thereof the following new sentence: ``In 
the case of any agency which receives any mailing address under 
subsection (m) (2) or (4) and which discloses any such mailing 
address to any agent, this paragraph shall apply to such agency 
and each such agent except that, in the case of an agent, any 
report to the Secretary or other action with respect to the 
Secretary shall be made or taken through such agency).''
    (c) Technical Amendments.--
          (1) Paragraph (3) of section 6103(a) of such Code is 
        amended by striking out ``subsection (m)(4)B'' and 
        inserting in lieu thereof ``paragraph (2) or (4)(B) of 
        subsection (m)''.
          (2) Paragraph (2) of section 7213(a) (26 U.S.C. 7213) 
        of such Code (relating to unauthorized disclosure of 
        information) is amended by striking out ``(m)(4)'' and 
        inserting in lieu thereof ``(m) (2) or (4)''.
    (d) Effective Date. (26 U.S.C. 6103)--The amendments made 
by this section shall take effect on the date of the enactment 
of this Act.
    (e) Except as otherwise provided (5 U.S.C. 5514 note) in 
section 4 or 7 or the foregoing provisions of this section, 
nothing in this Act (or in the amendments made by this Act) 
shall apply to claims or indebtedness arising under, or amounts 
payable under, the Internal Revenue Code of 1954, (26 U.S.C. 1 
et seq. 42 U.S.C. 1305) the Social Security Act, or the tariff 
laws of the United States.
     STATUTE OF LIMITATIONS WITH RESPECT TO ADMINISTRATIVE OFFSETS
    Sec. 9. Section 2415 of title 28, United States Code, is 
amended by adding at the end thereof the following new 
subsection:
                          ``(i) The provisions of this section 
                        shall not prevent the United States or 
                        an officer or agency thereof from 
                        collecting any claim of the United 
                        States by means of administrative 
                        offset, in accordance with section 5 of 
                        the Federal Claims Collection Act of 
                        1966.''.
                         ADMINISTRATIVE OFFSETS
    Sec. 10. The Federal Claims Collection Act of 1966 (31 
U.S.C. 951 et seq.) is amended (31 U.S.C. 951 note)--
          (1) by redesignating section 5 as section 6; and
          (2) by adding the following new section 5:
    ``Sec. 5. (a) The head of an agency or his designee may, 
after attempting to collect a claim from a Person under section 
3(a) of this Act, collect the claim by means of administrative 
offset, except that no claim under this Act that has been 
outstanding for more than ten years may be collected by means 
of administrative offset.
    ``(b) The head of an agency or his designee may not collect 
any claim by administrative offset authorized by subsection (a) 
unless the agency head has prescribed regulations for the 
exercise of such administrative offset, (31 U.S.C. 954) based 
on the best interests of the United States, the likelihood of 
collecting a claim by administrative offset, and, with respect 
to the collection of claims by means of administrative offset 
after the six-year period provided in section 2415 of title 28, 
United States Code, has expired for bringing an action on such 
a claim, the cost effectiveness of leaving such claim 
unresolved for more than six years.
    ``(c) Prior to collecting any claim through administrative 
offset, the head of the agency or his designee shall provide 
the debtor with--
          ``(1) written notification of the nature and amount 
        of the claim, the intention of the agency to collect 
        the claim through administrative offset, and an 
        explanation of the rights of the debtor under this 
        section;
          ``(2) an opportunity to inspect and copy the records 
        of the agency with respect to the claim;
          ``(3) an opportunity for the review, within the 
        agency, of the determination of the agency with respect 
        to the claim; and
          ``(4) an opportunity to enter into a written 
        agreement with the head of the agency or his designee, 
        for the repayment of the amount of the claim.
    ``(d) The provisions of this section shall not apply in any 
case in which a statute either explicitly provides for or 
prohibits the collection through administrative offset of the 
claim or type of claim involved.
    ``(e) For purposes of this section--
          ``(1) the term `administrative offset' means the 
        withholding of money payable by the United States to or 
        held by the United States on behalf of a person to 
        satisfy a debt owed the United States by that person; 
        and
          ``(2) the term `person' does not include any agency 
        of the United States, or of any State or local 
        government.''.
       INTEREST AND PENALTY ON INDEBTEDNESS TO THE UNITED STATES
    Sec. 11. Section 3 of the Federal Claims Collection Act of 
1966 (31 U.S.C. 952) (as amended by section 3 of this Act) is 
further amended by adding at the end thereof the following new 
subsection:
          ``(e)(1) Except as provided in paragraph (3), the 
        head of an agency or his designee shall charge a 
        minimum annual rate of interest on outstanding debts on 
        claims owed by persons that is equal to the average 
        investment rate for the Treasury tax and loan accounts 
        for the twelve-month period ending on September 30 of 
        each year, rounded to the nearest whole per centum. The 
        Secretary of the Treasury or his designee shall publish 
        such rate each year not later than October 31 and such 
        rate shall become effective on the first day of the 
        next calendar quarter. The Secretary of the Treasury 
        may revise such rate quarterly if the average 
        investment rate for the twelve-month period ending at 
        the close of that calendar quarter, rounded to the 
        nearest whole per centum, is greater or less than the 
        existing published rate by 2 per centum. For purposes 
        of this paragraph, `calendar quarter' means any three 
        month period beginning on January 1, April 1, July 1, 
        or October 1.
          ``(2) Except as provided in paragraph (3), the head 
        of an agency or his designee shall, with respect to 
        claims owed by persons--
                  ``(A) assess charges to cover the costs of 
                processing and handling delinquent claims, and
                  ``(B) assess a penalty charge, not to exceed 
                6 per centum per annum, for failure to pay any 
                portion of a debt more than ninety days past 
                due.
          ``(3) Interest and charges under paragraphs (1) and 
        (2) shall not apply if an applicable statute, a 
        regulation required by statute, a loan agreement, or a 
        contract either prohibit the charging of interest or 
        charges, or explicitly fix interest or charges that 
        apply to claims involved. The head of an agency or his 
        designee may promulgate regulations identifying 
        circumstances appropriate to waive collection of 
        interest and charges in conformity with such standards 
        as may be promulgated jointly by the Attorney General 
        and the Comptroller General. Waivers in accordance with 
        such regulations shall constitute compliance with the 
        requirements of paragraphs (1) and (2).
          ``(4) This subsection shall not apply to any claim 
        under a contract which is executed before the effective 
        date of this subsection and which is in effect on that 
        date.
          ``(5) Subject to paragraph (6), interest under 
        paragraph (1) shall accrue''
                  ``(A) except as provided in subparagraph (B), 
                from the date on which notification of the 
                amount due on the claim is first mailed to the 
                debtor (using the most current address of such 
                debtor that is available to the head of the 
                agency or his designee; or
                  ``(B) if such notification was first mailed 
                before the date of the enactment of the Debt 
                Collection Act of 1982, from the date on which 
                such notification is first mailed after such 
                date of enactment.
  The rate of interest to be charged on a claim under paragraph 
(1) shall be the rate in effect on the date from which interest 
accrues on the claim under subparagraph (A) or (B), and shall 
remain fixed at that rate for the duration of the indebtedness.
          ``(6) Interest under paragraph (1) shall not be 
        charged if the amount due on the claim is paid within 
        thirty days after the date from which interest accrues 
        under paragraph (5). The head of an agency may extend 
        such thirty-day period.
          ``(7) Interest under this subsection shall not accrue 
        on any charges assessed pursuant to paragraph (2) of 
        this subsection.
          ``(8) For purposes of this subsection, the term 
        `person' does not include any agency of the United 
        States or any State or local government.''
              REPORT ON AGENCY DEBT COLLECTION ACTIVITIES
    Sec. 12. (a) The Director of the Office of Management and 
Budget, (31 U.S.C. 955) in consultation with the Secretary of 
the Treasury and Comptroller General of the United States, 
shall establish regulations requiring each agency with 
outstanding debts to prepare and transmit to the Director and 
the Secretary of the Treasury at least once each year a report 
which summarizes the status of loans and accounts receivable 
managed by each agency. The report shall contain information 
regarding--
          (1) the total amount of loans and accounts receivable 
        owed to the agency and when the funds owed to the 
        agency are due to be repaid;
          (2) the total amount of receivables and number of 
        claims that are at least thirty days past due;
          (3) the total amount written off as uncollectible, 
        actual, and allowed for;
          (4) the rate of interest charged for overdue debts 
        and the amount of interest charged and collected on 
        debts;
          (5) the total number of claims and total amount 
        collected
          (6) the number of claims and the total amount of 
        claims referred to the Department of Justice for 
        settlement and the number of claims and the total 
        amount of claims settled by such Department;
          (7) for each program or activity administered by the 
        agency, the information described in clauses (1) 
        through (6) of this subsection; and
          (8) such other information as the Director finds 
        necessary in order to determine whether the agency is 
        engaging in aggressive action to collect the claims of 
        the agency.
    (b) The Director shall analyze the reports received by each 
agency under subsection (a) and shall report annually to the 
Congress on the management of agency debt collection 
activities, including the information provided to the Director 
under subsection (a) above.
                   CONTRACTS FOR COLLECTION SERVICES
    Sec. 13. (a) Section 3617 of the Revised Statutes (31 
U.S.C. 484) is amended by striking out ``section 487'' and 
inserting in lieu thereof ``sections 487 and 952(g)(2)''.
    (b) Section 3 of the Federal Claims Collection Act of 1966 
(31 U.S.C. 952) (as amended by sections 3 and 11 of this Act) 
is further amended by adding at the end thereof the following 
new subsections:
          ``(f)(1) Notwithstanding the provisions of any other 
        law governing the collection of claims owed the United 
        States, except for collections of unpaid or underpaid 
        debts under the Internal Revenue Code of 1954, the head 
        of an agency or his designee may enter into a contract 
        with any person or organization, under such terms and 
        conditions as the head of the agency or his designee 
        considers appropriate, for collection services to 
        recover indebtedness owed to the United States. Any 
        such contract shall include provisions specifying that 
        the head of the agency or his designee retains the 
        authority to resolve disputes, compromise claims, 
        terminate collection action, and refer the matter to 
        the Attorney General to initiate legal action, and that 
        the contractor shall be subject to section 552a of 
        title 5, United States Code, to the extent provided in 
        subsection (m) of that section, and shall be subject to 
        Federal and State laws and regulations pertaining to 
        debt collection practices, including the Fair Debt 
        Collection Practices Act (15 U.S.C. 1692 et seq.).
          ``(2) Notwithstanding section 3617 of the Revised 
        Statutes (31 U.S.C. 484), the head of an agency or his 
        designee may provide, as part of a contract described 
        in paragraph (1), that appropriate fees charged by a 
        contractor to recover indebtedness owed to the United 
        States may be payable from the amount collected by such 
        contractor.
          ``(3) Any such contract shall be effective only to 
        such extent and in such amounts as are provided in 
        advance appropriation Acts.
          ``(g) For purposes of this Act, the term `claim' 
        includes amounts owing on account of loans insured or 
        guaranteed by the United States and all other amounts 
        due the United States from fees, duties, leases, rents, 
        royalties, services, sales of real or personal 
        property, overpayments, fines, penalties, damages, 
        interest, taxes, forfeitures, and other sources.''.
    Approved October 25, 1982.
---------------------------------------------------------------------------
    This law has been amended by Public Law 103-272, sec. 7(b), July 5, 
1994, 108 Stat. 1393.
                        SINGLE AUDIT ACT OF 1984

                           Public Law 98-502

                            (98 Stat. 2327)

  AN ACT To establish uniform audit requirements for State and local 
           governments receiving Federal financial assistance
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

                          SHORT TITLE; PURPOSE

    Section 1. (a) This Act may be cited as the ``Single Audit 
Act of 1984''. (31 U.S.C. 7501 note).
    (b) It is the purpose of this Act--
          (1) to improve the financial management of State and 
        local governments with respect to Federal financial 
        assistance programs;
          (2) to establish uniform requirements for audits of 
        Federal financial assistance provided to State and 
        local governments;
          (3) to promote the efficient and effective use of 
        audit resources; and
          (4) to ensure that Federal departments and agencies, 
        to the maximum extent practicable, rely upon and use 
        audit work done pursuant to chapter 75 of title 31, 
        United States Code (as added by this Act).

               AMENDMENT TO TITLE 31, UNITED STATES CODE

    Sec. 2. (a) Subtitle V of title 31, United States Code, is 
amended by adding at the end thereof the following new chapter:

              ``CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS

``Sec.                                                                  
``7501.                              Definitions.                       
``7502.                              Audit requirements; exemptions.    
``7503.                              Relation to other audit            
                                      requirement.                      
``7504.                              Cognizant agency responsibilities. 
``7505.                              Regulations.                       
``7506.                              Monitoring responsibilities of the 
                                      Comptroller General.              
``7537.                              Effective date; report.            
                                                                        

``Sec. 7501. Definitions (31 U.S.C. 7501)

    ``As used in this chapter, the term--
          ``(1) `cognizant agency' means a Federal agency which 
        is assigned by the Director with the responsibility for 
        implementing the requirements of this chapter with 
        respect to a particular State or local government.''
          ``(2) `Comptroller General' means the Comptroller 
        General of the United States.
          ``(3) `Director' means the Director of the Office of 
        Management and Budget.
          ``(4) `Federal financial assistance' means assistance 
        provided by a Federal agency in the form of grants, 
        contracts, loans. loan guarantees, property, 
        cooperative agreements, interest subsidies, insurance, 
        or direct appropriations, but does not include direct 
        Federal cash assistance to individuals
          ``(5) `Federal agency' has the same meaning as the 
        term `agency' in section 551(l) of title 5, United 
        States Code.
          ``(6) `generally accepted accounting principles' has 
        the meaning specified in the generally accepted 
        government auditing standards.
          ``(7) `generally accepted government auditing 
        standards' means the standards for audit of 
        governmental organizations, programs, activities, and 
        functions, issued by the Comptroller General.
          ``(8) `independent auditor' means
                  ``(A) an external State or local government 
                auditor who meets the independence standards 
                included in generally accepted government 
                auditing standards, or
                  ``(B) a public accountant who meets such 
                independence standards.
          ``(9) `internal controls' means the plan of 
        organization and methods and procedures adopted by 
        management to ensure that--
                  ``(A) resource use is consistent with laws, 
                regulations, and policies;
                  ``(B) resources are safeguarded against 
                waste, loss, and misuse; and
                  ``(C) reliable data are obtained, maintained, 
                and fairly disclosed in reports.
          ``(10) `Indian tribe' means any Indian tribe, band, 
        nation, or other organized group or community, 
        including any Alaskan Native village or regional or 
        village corporation (as defined in, or established 
        under, the Alaskan Native Claims Settlement Act) that 
        is recognized by the United States as eligible for the 
        special programs and services provided by the United 
        States to Indians because of their status as Indians.
          ``(11) `local government' means any unit of local 
        government within a State, including a county, borough, 
        municipality, city, town, township, parish, local 
        public authority, special district, school district, 
        intrastate district, council of governments, and any 
        other instrumentality of local government.
          ``(12) `major Federal assistance program' means any 
        program for which total expenditures of Federal 
        financial assistance by the State or local government 
        during the applicable year exceed
                  ``(A) $20,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $7,000,000,000;
                  ``(B) $19,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $6,000,000,000 but are less than or equal to 
                $7,000,000,000;
                  ``(C) $16,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $5,000,000,000 but are less than or equal to 
                $6,000,000,000;
                  ``(D) $13,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $4,000,000,000 but are less than or equal to 
                $5,000,000,000;
                  ``(E) $10,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $3,000,000,000 but are less than or equal to 
                $4,000,000,000;
                  ``(F) $7,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $2,000,000,000 but are less than or equal to 
                $3,000,000,000;
                  ``(G) $4,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $1,000,000,000 but are less than or equal to 
                $2,000,000,000;
                  ``(H) $3,000,000 in the case of a State or 
                local government for which such total 
                expenditures for all programs exceed 
                $100,000,000 but are less than or equal to 
                $1,000,000,000; and
                  ``(I) the larger of (i) $300,000, or (ii) 3 
                percent of such total expenditures for all 
                programs, in the case of a State or local 
                government for which such total expenditures 
                for all programs exceed $100,000 but are less 
                than or equal to $100,000,000.
          ``(13) `public accountants' means those individuals 
        who meet the qualification standards included in 
        generally accepted government auditing standards for 
        personnel performing government audits.
          ``(14) `State' means any State of the United States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the 
        Trust Territory of the Pacific Islands, any 
        instrumentality thereof, any multi-State, regional, or 
        interstate entity which has governmental functions, and 
        any Indian tribe.
          ``(15) `subrecipient' means any person or government 
        department, agency, or establishment that receives 
        Federal financial assistance through a State or local 
        government, but does not include an individual that 
        receives such assistance.
    Section 7502. Audit requirements; exemptions (31 U.S.C. 
7502)
    ``(a)(1)(A) Each State and local government which receives 
a total amount of Federal financial assistance equal to or in 
excess of $100,000 in any fiscal year of such government shall 
have an audit made for such fiscal year in accordance with the 
requirements of this chapter and the requirements of the 
regulations prescribed pursuant to section 7505 of this title.
    ``(B) Each State and local government that receives a total 
amount of Federal financial assistance which is equal to or in 
excess of $25,000 but less than $100,000 in any fiscal year of 
such government shall--
          ``(i) have an audit made for such fiscal year in 
        accordance with the requirements of this chapter and 
        the requirements of the regulations prescribed pursuant 
        to section 7505 of this title; or
          ``(ii) comply with any applicable requirements 
        concerning financial or financial and compliance audits 
        contained in Federal statutes and regulations governing 
        programs under which such Federal financial assistance 
        is provided to that government.
    ``(C) Each State and local government that receives a total 
amount of Federal financial assistance which is less than 
$25,000 in any fiscal year of such government shall be exempt 
for such fiscal year from compliance with
          ``(i) the audit requirements of this chapter; and
          ``(ii) any applicable requirements concerning 
        financial or financial and compliance audits contained 
        in Federal statutes and regulations governing programs 
        under which such Federal financial assistance is 
        provided to that government.
The provisions of clause (ii) of this subparagraph do not 
exempt a State or local government from compliance with any 
provision of a Federal statute or regulation that requires such 
government to maintain records concerning Federal financial 
assistance provided to such government or that permits a 
Federal agency or the Comptroller General access to such 
records.
    ``(2) For purposes of this section, a State or local 
government shall be considered to receive Federal financial 
assistance whether such assistance is received directly from a 
Federal agency or indirectly through another State or local 
government.
    ``(b)(1) Except as provided in paragraphs (2) and (3), 
audits conducted pursuant to this chapter shall be conducted 
annually.
    ``(2) If a State or local government is required--
          ``(A) by constitution or statute, as in effect on the 
        date of enactment of this chapter, or
          ``(B) by administrative rules, regulations, 
        guidelines, standards, or policies, as in effect on 
        such date,
to conduct its audits less frequently than annually, the 
cognizant agency for such government shall, upon request of 
such government, permit the government to conduct its audits 
pursuant to this chapter biennially, except as provided in 
paragraph (3). Such audits shall cover both years within the 
biennial period.
    ``(3) Any State or local government that is permitted, 
under clause (B) of paragraph (2), to conduct its audits 
pursuant to this chapter biennially by reason of the 
requirements of a rule, regulation, guideline, standard, or 
policy, shall, for any of its fiscal years beginning after 
December 31, 1986, conduct such audits annually unless such 
State or local government codifies a requirement for biennial 
audits in its constitution or statutes by January 1, 1987. 
Audits conducted biennially under the provisions of this 
paragraph shall cover both years within the biennial period.''
    (c) Each audit conducted pursuant to subsection (a) shall 
be conducted by an independent auditor in accordance with 
generally accepted government auditing standards, except that, 
for the purposes of this chapter, such standards shall not be 
construed to require economy and efficiency audits, program 
results audits, or program evaluations.
    ``(d)(1) Each audit conducted pursuant to subsection (a) 
for any fiscal year shall cover the entire State or local 
government's operations except that, at the option of such 
government--
          ``(A) such audit may, except as provided in paragraph 
        (5), cover only each department, agency, or 
        establishment which received, expended, or otherwise 
        administered Federal financial assistance during such 
        fiscal year; and
          ``(B) such audit may exclude public hospitals and 
        public colleges and universities.
    ``(2) Each such audit shall encompass the entirety of the 
financial operations of such government or of such department, 
agency, or establishment, whichever is applicable, and shall 
determine and report whether--
          ``(A)(i) the financial statements of the government, 
        department, agency, or establishment present fairly its 
        financial position and the results of its financial 
        operations in accordance with generally accepted 
        accounting principles; and
          ``(ii) the government, department, agency, or 
        establishment has complied with laws and regulations 
        that may have a material effect upon the financial 
        statements;
          ``(B) the government, department, agency, or 
        establishment has internal control systems to provide 
        reasonable assurance that it is managing Federal 
        financial assistance programs in compliance with 
        applicable laws and regulations; and
          ``(C) the government, department, agency, or 
        establishment has complied with laws and regulations 
        that may have a material effect upon each major Federal 
        assistance program. In complying with the requirements 
        of subparagraph (C), the independent auditor shall 
        select and test a representative number of transactions 
        from each major Federal assistance program.
    ``(3) Transactions selected from Federal assistance 
programs, other than major Federal assistance programs, 
pursuant to the requirements of paragraphs (2)(A) and (2)(B) 
shall be tested for compliance with Federal laws and 
regulations that apply to such transactions. Any noncompliance 
found in such transactions by the independent auditor in making 
determinations required by this paragraph shall be reported.
    ``(4) The number of transactions selected and tested under 
paragraphs (2) and (3), the selection and testing of such 
transactions, and the determinations required by such 
paragraphs shall be based on the professional judgment of the 
independent auditor.
    ``(5) Each State or local government which, in any fiscal 
year of such government, receives directly from the Department 
of the Treasury a total of $25,000 or more under chapter 67 (31 
U.S.C. 6701 et seq.) of this title (relating to general revenue 
sharing) and which is required to conduct an audit pursuant to 
this chapter for such fiscal year shall not have the option 
provided by paragraph (1)(A) for such fiscal year.
    ``(6) A series of audits of individual departments, 
agencies, and establishments for the same fiscal year may be 
considered to be an audit for the purpose of this chapter.
    ``(e)(1) Each State and local government subject to the 
audit requirements of this chapter, which receives Federal 
financial assistance and provides $25,000 or more of such 
assistance in any fiscal year to a subrecipient, shall
          ``(A) if the subrecipient conducts an audit in 
        accordance with the requirements of this chapter, 
        review such audit and ensure that prompt and 
        appropriate corrective action is taken on instances of 
        material noncompliance with applicable laws and 
        regulations with respect to Federal financial 
        assistance provided to the subrecipient by the State or 
        local government; or
          ``(B) if the subrecipient does not conduct an audit 
        in accordance with the requirements of this chapter
          ``(i) determine whether the expenditures of Federal 
        financial assistance provided to the subrecipient by 
        the State or local government are in accordance with 
        applicable laws and regulations; and
          ``(ii) ensure that prompt and appropriate corrective 
        action is taken on instances of material noncompliance 
        with applicable laws and regulations with respect to 
        Federal financial assistance provided to the 
        subrecipient by the State or local government.
    ``(2) Each such State and local government shall require 
each subrecipient of Federal assistance through such government 
to permit, as a condition of receiving funds from such 
assistance, the independent auditor of the State or local 
government to have such access to the subrecipient's records 
and financial statements as may be necessary for the State or 
local government to comply with this chapter.
    (f) The report made on any audit conducted pursuant to this 
section shall, within thirty days after completion of such 
report, be transmitted to the appropriate Federal officials and 
made available by the State or local government for public 
inspection.
    (g) If an audit conducted pursuant to this section finds 
any material noncompliance with applicable laws and regulations 
by, or material weakness in the internal controls of, the State 
or local government with respect to the matters described in 
subsection (d)(2), the State or local government shall submit 
to appropriate Federal officials a plan for corrective action 
to eliminate such material noncompliance or weakness or a 
statement describing the reasons that corrective action is not 
necessary. Such plan shall be consistent with the audit 
resolution standard promulgated by the Comptroller General (as 
part of the standards for internal controls in the Federal 
Government) pursuant to section 3512(b) of this title. (31 
U.S.C. 3512).

  ``Sec. 7503. Relation to other audit requirements (31 U.S.C. 7503)

    ``(a) An audit conducted in accordance with this chapter 
shall be in lieu of any financial or financial and compliance 
audit of an individual Federal assistance program which a State 
or local government is required to conduct under any other 
Federal law or regulation. To the extent that such audit 
provides a Federal agency with the information it requires to 
carry out its responsibilities under Federal law or regulation, 
a Federal agency shall rely upon and use that information and 
plan and conduct its own audits accordingly in order to avoid a 
duplication of effort.
    ``(b) Notwithstanding subsection (a), a Federal agency 
shall conduct any additional audits which are necessary to 
carry out its responsibilities under Federal law or regulation. 
The provisions of this chapter do not authorize any State or 
local government (or subrecipient thereof) to constrain, in any 
manner, such agency from carrying out such additional audits.
    ``(c) The provisions of this chapter do not limit the 
authority of Federal agencies to conduct or enter into 
contracts for the conduct of, audits and evaluations of Federal 
financial assistance programs, nor limit the authority of any 
Federal agency Inspector General or other Federal audit 
official.
    ``(d) Subsection (a) shall apply to a State or local 
government which conducts an audit in accordance with this 
chapter even though it is not required by section 7502(a) to 
conduct such audit.
    ``(e) A Federal agency that performs or contracts for 
audits in addition to the audits conducted by recipients 
pursuant to this chapter shall, consistent with other 
applicable law, arrange for funding the cost of such additional 
audits. Such additional audits include economy and efficiency 
audits, program results audits, and program evaluations.
    ``Section 7504. Cognizant agency responsibilities (31 
U.S.C. 7504)
          ``(a) The Director shall designate cognizant agencies 
        for audits conducted pursuant to this chapter.
          ``(b) A cognizant agency shall--
                  ``(1) ensure that audits are made in a timely 
                manner and in accordance with the requirements 
                of this chapter;
                  ``(2) ensure that the audit reports and 
                corrective action plans made pursuant to 
                section 7502 of this title are transmitted to 
                the appropriate Federal officials; and
                  ``(3)(A) coordinate, to the extent 
                practicable, audits done by or under contract 
                with Federal agencies that are in addition to 
                the audits conducted pursuant to this chapter; 
                and (B) ensure that such additional audits 
                build upon the audits conducted pursuant to 
                this chapter.
    ``Section 7505. Regulations (31 U.S.C. 7505)
          ``(a) The Director, after consultation with the 
        Comptroller General and appropriate Federal, State, and 
        local government officials, shall prescribe policies, 
        procedures, and guidelines to implement this chapter. 
        Each Federal agency shall promulgate such amendments to 
        its regulations as may be necessary to conform such 
        regulations to the requirements of this chapter and of 
        such policies, procedures, and guidelines.
          ``(b)(1) The policies, procedures, and guidelines 
        prescribed pursuant to subsection (a) shall include 
        criteria for determining the appropriate charges to 
        programs of Federal financial assistance for the cost 
        of audits. Such criteria shall prohibit a State or 
        local government which is required to conduct an audit 
        pursuant to this chapter from charging to any such 
        program (A) the cost of any financial or financial and 
        compliance audit which is not conducted in accordance 
        with this chapter, and (B) more than a reasonably 
        proportionate share of the cost of any such audit that 
        is conducted in accordance with this chapter.
          ``(2) The criteria prescribed pursuant to paragraph 
        (1) shall not, in the absence of documentation 
        demonstrating a higher actual cost, permit (A) the 
        ratio of (i) the total charges by a government to 
        Federal financial assistance programs for the cost of 
        audits performed pursuant to this chapter, to (ii) the 
        total cost of such audits, to exceed (B) the ratio of 
        (i) total Federal financial assistance expended by such 
        government during the applicable fiscal year or years, 
        to (ii) such government's total expenditures during 
        such fiscal year or years.
          ``(c) Such policies, procedures, and guidelines shall 
        include such provisions as may be necessary to ensure 
        that small business concerns and business concerns 
        owned and controlled by socially and economically 
        disadvantaged individuals will have the opportunity to 
        participate in the performance of contracts awarded to 
        fulfill the audit requirements of this chapter.
    ``Section 7506. Monitoring responsibilities of the 
Comptroller General (31 U.S.C. 7506)
  ``The Comptroller General shall review provisions requiring 
financial or financial and compliance audits of recipients of 
Federal assistance that are contained in bills and resolutions 
reported by the committees of the Senate and the House of 
Representatives. If the Comptroller General determines that a 
bill or resolution contains provisions that are inconsistent 
with the requirements of this chapter, the Comptroller General 
shall, at the earliest practicable date, notify in writing
          ``(1) the committee that reported such bill or 
        resolution; and
          ``(2)(A) the Committee on Governmental Affairs of the 
        Senate (in the case of a bill or resolution reported by 
        a committee of the Senate); or
          ``(B) the Committee on Government Operations of the 
        House of Representatives in the case of a bill or 
        resolution reported by a committee of the House of 
        Representatives).
    ``Section 7507. Effective date; report (31 U.S.C. 7507)
          ``(a) This chapter shall apply to any State or local 
        government with respect to any of its fiscal years 
        which begin after December 31, 1984.
          ``(b) The Director, on or before May 1, 1987, and 
        annually thereafter, shall submit to each House of 
        Congress a report on operations under this chapter. 
        Each such report shall specifically identify each 
        Federal agency or State or local government which is 
        failing to comply with this chapter''.
          (b) The provisions of this Act shall not diminish or 
        otherwise affect the authority of the Tennessee Valley 
        Authority to conduct its own audits of any matter 
        involving funds disbursed by the Tennessee Valley 
        Authority.
          (c) The table of chapters for subtitle V of title 31, 
        United States Code, is amended by inserting after the 
        item relating to chapter 73 the following new item:

``75. Requirements for Single Audits................7501''
    Approved October 19, 1984
---------------------------------------------------------------------------
    This Act has not been amended as of December 31, 1995.
                  Chief Financial Officers Act of 1990

                           Public Law 101-576

                            (104 Stat. 2838)

 AN ACT To amend title 31, United States Code, to improve the general 
 and financial management of the Federal Government by establishing a 
   Chief Financial Officer of the United States within the Office of 
Management and Budget; by establishing a Chief Financial Officer within 
 each executive department and within each major executive agency; and 
    by requiring the development of systems that provide complete, 
        accurate, and timely reporting of financial information.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE.

    This Act may be cited as the ``Chief Financial Officers Act 
of 1990''.

SEC. 102. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
          (1) General management functions of the Office of 
        Management and Budget need to be significantly enhanced 
        to improve the efficiency and effectiveness of the 
        Federal Government.
          (2) Financial management functions of the Office of 
        Management and Budget need to be significantly enhanced 
        to provide overall direction and leadership in the 
        development of a modern Federal financial management 
        structure and associated systems.
          (3) Billions of dollars are lost each year through 
        fraud, waste, abuse, and mismanagement among the 
        hundreds of programs in the Federal Government.
          (4) These losses could be significantly decreased by 
        improved management, including improved central 
        coordination of internal controls and financial 
        accounting.
          (5) The Federal Government is in great need of 
        fundamental reform in financial management requirements 
        and practices as financial management systems are 
        obsolete and inefficient, and do not provide complete, 
        consistent, reliable, and timely information.
          (6) Current financial reporting practices of the 
        Federal Government do not accurately disclose the 
        current and probable future cost of operating and 
        investment decisions, including the future need for 
        cash or other resources, do not permit adequate 
        comparison of actual costs among executive agencies, 
        and do not provide the timely information required for 
        efficient management of programs.
    (b) Purposes.--The purposes of this Act are the following:
          (1) Bring more effective general and financial 
        management practices to the Federal Government through 
        statutory provisions which would establish in the 
        Office of Management and Budget a Deputy Director for 
        Management, establish an Office of Federal Financial 
        Management headed by a Controller, and designate a 
        Chief Financial Officer in each executive department 
        and in each major executive agency in the Federal 
        Government.
          (2) Provide for improvement in each agency of the 
        Federal Government, of systems of accounting, financial 
        management, and internal controls to assure the 
        issuance of reliable financial information and to deter 
        fraud, waste, and abuse of Government resources.
          (3) Provide for the production of complete, reliable, 
        timely, and consistent financial information for use by 
        the executive branch of the Government and the Congress 
        in the financing, management, and evaluation of Federal 
        programs.

          TITLE II--ESTABLISHMENT OF CHIEF FINANCIAL OFFICERS

SEC. 201. DEPUTY DIRECTOR FOR MANAGEMENT.

    Section 502 of title 31, United States Code, as amended by 
this Act, is amended--
          (1) by redesignating subsections (c), (d), and (e), 
        as amended by this section, as subsections (d), (e), 
        and (f); and
          (2) by inserting after subsection (b) the following:
    ``(c) The Office has a Deputy Director for Management 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Director for Management shall be the 
chief official responsible for financial management in the 
United States Government.''.

SEC. 202. FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT.

    (a) Clerical Amendments.--Sections 503 and 504 of title 31, 
United States Code, are redesignated in order as sections 505 
and 506, respectively.
    (b) Functions of Deputy Director for Management.--
Subchapter I of chapter 5 of title 31, United States Code, is 
amended by inserting after section 502 the following:

Sec. 503. Functions of Deputy Director for Management

    ``(a) Subject to the direction and approval of the 
Director, the Deputy Director for Management shall establish 
governmentwide financial management policies for executive 
agencies and shall perform the following financial management 
functions:
          ``(1) Perform all functions of the Director, 
        including all functions delegated by the President to 
        the Director, relating to financial management.
          ``(2) Provide overall direction and leadership to the 
        executive branch on financial management matters by 
        establishing financial management policies and 
        requirements, and by monitoring the establishment and 
        operation of Federal Government financial management 
        systems.
          ``(3) Review agency budget requests for financial 
        management systems and operations, and advise the 
        Director on the resources required to develop and 
        effectively operate and maintain Federal Government 
        financial management systems and to correct major 
        deficiencies in such systems.
          ``(4) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they are in 
        accordance with financial management plans of the 
        Office of Management and Budget.
          ``(5) Monitor the financial execution of the budget 
        in relation to actual expenditures, including timely 
        performance reports.
          ``(6) Oversee, periodically review, and make 
        recommendations to heads of agencies on the 
        administrative structure of agencies with respect to 
        their financial management activities.
          ``(7) Develop and maintain qualification standards 
        for agency Chief Financial Officers and for agency 
        Deputy Chief Financial Officers appointed under 
        sections 901 and 903, respectively.
          ``(8) Provide advice to agency heads with respect to 
        the selection of agency Chief Financial Officers and 
        Deputy Chief Financial Officers.
          ``(9) Provide advice to agencies regarding the 
        qualifications, recruitment, performance, and retention 
        of other financial management personnel.
          ``(10) Assess the overall adequacy of the 
        professional qualifications and capabilities of 
        financial management staffs throughout the Government 
        and make recommendations on ways to correct problems 
        which impair the capacity of those staffs.
          ``(11) Settle differences that arise among agencies 
        regarding the implementation of financial management 
        policies.
          ``(12) Chair the Chief Financial Officers Council 
        established by section 302 of the Chief Financial 
        Officers Act of 1990.
          ``(13) Communicate with the financial officers of 
        State and local governments, and foster the exchange 
        with those officers of information concerning financial 
        management standards, techniques, and processes.
          ``(14) Issue such other policies and directives as 
        may be necessary to carry out this section, and perform 
        any other function prescribed by the Director.
    ``(b) Subject to the direction and approval of the 
Director, the Deputy Director for Management shall establish 
general management policies for executive agencies and perform 
the following general management functions:
          ``(1) Coordinate and supervise the general management 
        functions of the Office of Management and Budget.
          ``(2) Perform all functions of the Director, 
        including all functions delegated by the President to 
        the Director, relating to--
                  ``(A) managerial systems, including the 
                systematic measurement of performance;
                  ``(B) procurement policy;
                  ``(C) grant, cooperative agreement, and 
                assistance management;
                  ``(D) information and statistical policy;
                  ``(E) property management;
                  ``(F) human resources management;
                  ``(G) regulatory affairs; and
                  ``(H) other management functions, including 
                organizational studies, long-range planning, 
                program evaluation, productivity improvement, 
                and experimentation and demonstration programs.
          ``(3) Provide complete, reliable, and timely 
        information to the President, the Congress, and the 
        public regarding the management activities of the 
        executive branch.
          ``(4) Facilitate actions by the Congress and the 
        executive branch to improve the management of Federal 
        Government operations and to remove impediments to 
        effective administration.
          ``(5) Provide leadership in management innovation, 
        through--
                  ``(A) experimentation, testing, and 
                demonstration programs; and
                  ``(B) the adoption of modern management 
                concepts and technologies.
          ``(6) Work with State and local governments to 
        improve and strengthen intergovernmental relations, and 
        provide assistance to such governments with respect to 
        intergovernmental programs and cooperative 
        arrangements.
          ``(7) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they respond to 
        program evaluations by, and are in accordance with 
        general management plans of, the Office of Management 
        and Budget.
          ``(8) Provide advice to agencies on the 
        qualification, recruitment, performance, and retention 
        of managerial personnel.
          ``(9) perform any other functions prescribed by the 
        Director.''.

SEC. 203. OFFICE OF FEDERAL FINANCIAL MANAGEMENT.

    (a) Establishment.--Subchapter I of chapter 5 of title 31, 
United States Code, as amended by this Act, is amended by 
inserting after section 503 (as added by section 202 of this 
Act) the following:

``Sec. 504. Office of Federal Financial Management

    ``(a) There is established in the Office of Management and 
Budget an office to be known as the `Office of Federal 
Financial Management'. The Office of Federal Financial 
Management, under the direction and control of the Deputy 
Director for Management of the Office of Management and Budget, 
shall carry out the financial management functions listed in 
section 503(a) of this title.
    ``(b) There shall be at the head of the Office of Federal 
Financial Management a Controller, who shall be appointed by 
the President, by and with the advice and consent of the 
Senate. The Controller shall be appointed from among 
individuals who possess--
          ``(1) demonstrated ability and practical experience 
        in accounting, financial management, and financial 
        systems; and
          ``(2) extensive practical experience in financial 
        management in large governmental or business entities.
    ``(c) The Controller of the Office of Federal Financial 
Management shall be the deputy and principal advisor to the 
Deputy Director for Management in the performance by the Deputy 
Director for Management of functions described in section 
503(a).''.
    (b) Statement of Appropriations in Budget.--Section 1105(a) 
of title 31, United States Code, is amended by adding at the 
end the following:
          ``(28) a separate statement of the amount of 
        appropriations requested for the Office of Federal 
        Financial Management.''.
    (c) Clerical Amendment.--The table of contents at the 
beginning of chapter 5 of title 31, United States Code, is 
amended by striking the items relating to sections 503 and 504 
and inserting the following:

``503. Functions of Deputy Director for Management.
``504. Office of Federal Financial Management.
``505. Office of Information and Regulatory Affairs.
``506. Office of Federal Procurement Policy.''.

SEC. 204. DUTIES AND FUNCTIONS OF THE DEPARTMENT OF THE TREASURY.

    Nothing in this Act shall be construed to interfere with 
the exercise of the functions, duties, and responsibilities of 
the Department of the Treasury, as in effect immediately before 
the enactment of this Act.

SEC. 205. AGENCY CHIEF FINANCIAL OFFICERS.

    (a) In General.--Subtitle I of title 31, United States 
Code, is amended by adding at the end the following new 
chapter:
               CHAPTER 9--AGENCY CHIEF FINANCIAL OFFICERS
``Sec.
``901. Establishment of agency Chief Financial Officers.
``902. Authority and functions of agency Chief Financial Officers.
``903. Establishment of agency Deputy Chief Financial Officers.

``Sec. 901. Establishment of agency Chief Financial Officers

    ``(a) There shall be within each agency described in 
subsection (b) an agency Chief Financial Officer. Each agency 
Chief Financial Officer shall--
          ``(1) for those agencies described in subsection 
        (b)(1)--
                  ``(A) be appointed by the President, by and 
                with the advice and consent of the Senate; or
                  ``(B) be designated by the President, in 
                consultation with the head of the agency, from 
                among officials of the agency who are required 
                by law to be so appointed;
          ``(2) for those agencies described in subsection 
        (b)(2)--
                  ``(A) be appointed by the head of the agency;
                  ``(B) be in the competitive service or the 
                senior executive service; and
                  ``(C) be career appointees; and
          ``(3) be appointed or designated, as applicable, from 
        among individuals who possess demonstrated ability in 
        general management of, and knowledge of and extensive 
        practical experience in financial management practices 
        in large governmental or business entities.
    ``(b)(1) The agencies referred to in subsection (a)(1) are 
the following:
          ``(A) The Department of Agriculture.
          ``(B) The Department of Commerce.
          ``(C) The Department of Defense.
          ``(D) The Department of Education.
          ``(E) The Department of Energy.
          ``(F) The Department of Health and Human Services.
          ``(G) The Department of Housing and Urban 
        Development.
          ``(H) The Department of the Interior.
          ``(I) The Department of Justice.
          ``(J) The Department of Labor.
          ``(K) The Department of State.
          ``(L) The Department of Transportation.
          ``(M) The Department of the Treasury.
          ``(N) The Department of Veterans Affairs.
          ``(O) The Environmental Protection Agency.
          ``(P) The National Aeronautics and Space 
        Administration.
    ``(2) The agencies referred to in subsection (a)(2) are the 
following:
          ``(A) The Agency for International Development.
          ``(B) The Federal Emergency Management Agency.
          ``(C) The General Services Administration.
          ``(D) The National Science Foundation.
          ``(E) The Nuclear Regulatory Commission.
          ``(F) The Office of Personnel Management.
          ``(G) The Small Business Administration.

``Sec. 902. Authority and Functions of Agency Chief Financial Officers

    ``(a) An agency Chief Financial Officer shall--
          ``(1) report directly to the head of the agency 
        regarding financial management matters;
          ``(2) oversee all financial management activities 
        relating to the programs and operations of the agency;
          ``(3) develop and maintain an integrated agency 
        accounting and financial management system, including 
        financial reporting and internal controls, which--
                  ``(A) complies with applicable accounting 
                principles, standards, and requirements, and 
                internal control standards;
                  ``(B) complies with such policies and 
                requirements as may be prescribed by the 
                Director of the Office of Management and 
                Budget;
                  ``(C) complies with any other requirements 
                applicable to such systems; and
                  ``(D) provides for--
                          ``(i) complete, reliable, consistent, 
                        and timely information which is 
                        prepared on a uniform basis and which 
                        is responsive to the financial 
                        information needs of agency management;
                          ``(ii) the development and reporting 
                        of cost information;
                          ``(iii) the integration of accounting 
                        and budgeting information; and
                          ``(iv) the systematic measurement of 
                        performance;
          ``(4) make recommendations to the head of the agency 
        regarding the selection of the Deputy Chief Financial 
        Officer of the agency;
          ``(5) direct, manage, and provide policy guidance and 
        oversight of agency financial management personnel, 
        activities, and operations, including--
                  ``(A) the preparation and annual revision of 
                an agency plan to--
                          ``(i) implement the 5-year financial 
                        management plan prepared by the 
                        Director of the Office of Management 
                        and Budget under section 3512(a)(3) of 
                        this title; and
                          ``(ii) comply with the requirements 
                        established under sections 3515 and 
                        subsections (e) and (f) of section 3521 
                        of this title;
                  ``(B) the development of agency financial 
                management budgets;
                  ``(C) the recruitment, selection, and 
                training of personnel to carry out agency 
                financial management functions;
                  ``(D) the approval and management of agency 
                financial management systems design or 
                enhancement projects;
                  ``(E) the implementation of agency asset 
                management systems, including systems for cash 
                management, credit management, debt collection, 
                and property and inventory management and 
                control;
          ``(6) prepare and transmit, by not later than 60 days 
        after the submission of the audit report required by 
        section 3521(f) of this title, an annual report to the 
        agency head and the Director of the Office of 
        Management and Budget, which shall include--
                  ``(A) a description and analysis of the 
                status of financial management of the agency;
                  ``(B) the annual financial statements 
                prepared under section 3515 of this title;
                  ``(C) the audit report transmitted to the 
                head of the agency under section 3521(f) of 
                this title;
                  ``(D) a summary of the reports on internal 
                accounting and administrative control systems 
                submitted to the President and the Congress 
                under the amendments made by the Federal 
                Managers' Financial Integrity Act of 1982 
                (Public Law 97-255); and
                  ``(E) other information the head of the 
                agency considers appropriate to fully inform 
                the President and the Congress concerning the 
                financial management of the agency;
          ``(7) monitor the financial execution of the budget 
        of the agency in relation to actual expenditures, and 
        prepare and submit to the head of the agency timely 
        performance reports; and
          ``(8) review, on a biennial basis, the fees, 
        royalties, rents, and other charges imposed by the 
        agency for services and things of value it provides, 
        and make recommendations on revising those charges to 
        reflect costs incurred by it in providing those 
        services and things of value.
    ``(b)(1) In addition to the authority otherwise provided by 
this section, each agency Chief Financial Officer--
          ``(A) subject to paragraph (2), shall have access to 
        all records, reports, audits, reviews, documents, 
        papers, recommendations, or other material which are 
        the property of the agency or which are available to 
        the agency, and which relate to programs and operations 
        with respect to which that agency Chief Financial 
        Officer has responsibilities under this section;
          ``(B) may request such information or assistance as 
        may be necessary for carrying out the duties and 
        responsibilities provided by this section from any 
        Federal, State, or local governmental entity; and
          ``(C) to the extent and in such amounts as may be 
        provided in advance by appropriations Acts, may--
                  ``(i) enter into contracts and other 
                arrangements with public agencies and with 
                private persons for the preparation of 
                financial statements, studies, analyses, and 
                other services; and
                  ``(ii) make such payments as may be necessary 
                to carry out the provisions of this section.
    ``(2) Except as provided in paragraph (1)(B), this 
subsection does not provide to an agency Chief Financial 
Officer any access greater than permitted under any other law 
to records, reports, audits, reviews, documents, papers, 
recommendations, or other material of any Office of Inspector 
General established under the Inspector General Act of 1978 (5 
U.S.C. App.).
    ``903. Establishment of agency Deputy Chief Financial 
Officers
    ``(a) There shall be within each agency described in 
section 901(b) an agency Deputy Chief Financial Officer, who 
shall report directly to the agency Chief Financial Officer on 
financial management matters. The position of agency Deputy 
Chief Financial Officer shall be a career reserved position in 
the Senior Executive Service.
    ``(b) Consistent with qualification standards developed by, 
and in consultation with, the agency Chief Financial Officer 
and the Director of the Office of Management and Budget, the 
head of each agency shall appoint as Deputy Chief Financial 
Officer an individual with demonstrated ability and experience 
in accounting, budget execution, financial and management 
analysis, and systems development, and not less than 6 years 
practical experience in financial management at large 
governmental entities.''.
    (b) Clerical Amendment.--The table of chapters at the 
beginning of subtitle I of title 31, United States Code, is 
amended by adding at the end the following:
    ``9. Agency Chief Financial Officers 901.''.
    (c) Chief Financial Officers of Department of Veterans 
Affairs and Department of Housing and Urban Development.--
          (1) Designation.--The Secretary of Veterans Affairs 
        and the Secretary of Housing and Urban Development may 
        each designate as the agency Chief Financial Officer of 
        that department for purposes of section 901 of title 
        31, United States Code, as amended by this section, the 
        officer designated, respectively, under section 4(c) of 
        the Department of Veterans Affairs Act (38 U.S.C. 201 
        note) and section 4(e) of the Department of Housing and 
        Urban Development Act (42 U.S.C. 3533(e)), as in effect 
        before the effective date of this Act.
          (2) Conforming amendment.--Section 4(c) of the 
        Department of Veterans Affairs Act (38 U.S.C. 201 note) 
        and section 4(e) of the Department of Housing and Urban 
        Development Act (42 U.S.C. 3533(e)), as added by 
        section 121 of Public Law 101-235, are repealed.
    Sec. 206. Transfer of Functions and Personnel of Agency 
Chief Financial Officers.
          (a) Agency reviews of financial management 
        activities.--Not later than 120 days after the date of 
        the enactment of this Act, the Director of the Office 
        of Management and Budget shall require each agency 
        listed in subsection (b) of section 901 of title 31, 
        United States Code, as amended by this Act, to conduct 
        a review of its financial management activities for the 
        purpose of consolidating its accounting, budgeting, and 
        other financial management activities under the agency 
        Chief Financial Officer appointed under subsection (a) 
        of that section for the agency.
          (b) Reorganization proposal.--Not later than 120 days 
        after the issuance of requirements under subsection (a) 
        and subject to all laws vesting functions in particular 
        officers and employees of the United States, the head 
        of each agency shall submit to the Director of the 
        Office of Management and Budget a proposal for 
        reorganizing the agency for the purposes of this Act. 
        Such proposal shall include--
                  (1) a description of all functions, powers, 
                duties, personnel, property, or records which 
                the agency Chief Financial Officer is proposed 
                to have authority over, including those 
                relating to functions that are not related to 
                financial management activities; and
                  (2) a detailed outline of the administrative 
                structure of the office of the agency Chief 
                Financial Officer, including a description of 
                the responsibility and authority of financial 
                management personnel and resources in agencies 
                or other subdivisions as appropriate to that 
                agency.
          (c) Review and approval of proposal.--Not later than 
        60 days after receiving a proposal from the head of an 
        agency under subsection (b), the Director of the Office 
        of Management and Budget shall approve or disapprove 
        the proposal and notify the head of the agency of that 
        approval or disapproval. The Director shall approve 
        each proposal which establishes an agency Chief 
        Financial Officer in conformance with section 901 of 
        title 31, United States Code, as added by this Act, and 
        which establishes a financial management structure 
        reasonably tailored to the functions of the agency. 
        Upon approving or disapproving a proposal of an agency 
        under this section, the Director shall transmit to the 
        head of the agency a written notice of that approval or 
        disapproval.
          (d) Implementation of Proposal.--Upon receiving 
        written notice of approval of a proposal under this 
        section from the Director of the Office of Management 
        and Budget, the head of an agency shall implement that 
        proposal.
    Sec. 207. Compensation.
          (a) Compensation, level ii.--Section 5313 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
          ``Deputy Director for Management, Office of 
        Management and Budget.''.
          (b) Compensation, level iii.--Section 5314 of title 
        5, United States Code, is amended by adding at the end 
        the following:
          ``Controller, Office of Federal Financial Management, 
        Office of Management and Budget.''.
          (c) Compensation, level iv.--Section 5315 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
          ``Chief Financial Officer, Department of Agriculture.
          ``Chief Financial Officer, Department of Commerce.
          ``Chief Financial Officer, Department of Defense.
          ``Chief Financial Officer, Department of Education.
          ``Chief Financial Officer, Department of Energy.
          ``Chief Financial Officer, Department of Health and 
        Human Services.
          ``Chief Financial Officer, Department of Housing and 
        Urban Development.
          ``Chief Financial Officer, Department of the 
        Interior.
          ``Chief Financial Officer, Department of Justice.
          ``Chief Financial Officer, Department of Labor.
          ``Chief Financial Officer, Department of State.
          ``Chief Financial Officer, Department of 
        Transportation.
          ``Chief Financial Officer, Department of the 
        Treasury.
          ``Chief Financial Officer, Department of Veterans 
        Affairs.
          ``Chief Financial Officer, Environmental Protection 
        Agency.
          ``Chief Financial Officer, National Aeronautics and 
        Space Administration.''.

   TITLE III--ENHANCEMENT OF FEDERAL FINANCIAL MANAGEMENT ACTIVITIES

    Sec. 301. Financial Management Status Report; 5-Year Plan 
of Director of Office of Management and Budget.--(a) In 
General.--Section 3512 of title 31, United States Code, is 
amended by striking the heading thereof, redesignating 
subsections (a) through (f) in order as subsections (b) through 
(g), and by inserting before such subsection (b), as so 
redesignated, the following:
          ``3512. Executive agency accounting and other 
        financial management reports and plans
    ``(a)(1) The Director of the Office of Management and 
Budget shall prepare and submit to the appropriate committees 
of the Congress a financial management status report and a 
governmentwide 5-year financial management plan.
    ``(2) A financial management status report under this 
subsection shall include--
          ``(A) a description and analysis of the status of 
        financial management in the executive branch;
          ``(B) a summary of the most recently completed 
        financial statements--
                  ``(i) of Federal agencies under section 3515 
                of this title; and
                  ``(ii) of Government corporations;
          ``(C) a summary of the most recently completed 
        financial statement audits and reports--
                  ``(i) of Federal agencies under section 3521 
                (e) and (f) of this title; and
                  ``(ii) of Government corporations;
          ``(D) a summary of reports on internal accounting and 
        administrative control systems submitted to the 
        President and the Congress under the amendments made by 
        the Federal Managers' Financial Integrity Act of 1982 
        (Public Law 97-255); and
          ``(E) any other information the Director considers 
        appropriate to fully inform the Congress regarding the 
        financial management of the Federal Government.
    ``(3)(A) A governmentwide 5-year financial management plan 
under this subsection shall describe the activities the 
Director, the Deputy Director for Management, the Controller of 
the Office of Federal Financial Management, and agency Chief 
Financial Officers shall conduct over the next 5 fiscal years 
to improve the financial management of the Federal Government.
    ``(B) Each governmentwide 5-year financial management plan 
prepared under this subsection shall--
          ``(i) describe the existing financial management 
        structure and any changes needed to establish an 
        integrated financial management system;
          ``(ii) be consistent with applicable accounting 
        principles, standards, and requirements;
          ``(iii) provide a strategy for developing and 
        integrating individual agency accounting, financial 
        information, and other financial management systems to 
        ensure adequacy, consistency, and timeliness of 
        financial information;
          ``(iv) identify and make proposals to eliminate 
        duplicative and unnecessary systems, including 
        encouraging agencies to share systems which have 
        sufficient capacity to perform the functions needed;
          ``(v) identify projects to bring existing systems 
        into compliance with the applicable standards and 
        requirements;
          ``(vi) contain milestones for equipment acquisitions 
        and other actions necessary to implement the 5-year 
        plan consistent with the requirements of this section;
          ``(vii) identify financial management personnel needs 
        and actions to ensure those needs are met;
          ``(viii) include a plan for ensuring the annual audit 
        of financial statements of executive agencies pursuant 
        to section 3521(h) of this title; and
          ``(ix) estimate the costs of implementing the 
        governmentwide 5-year plan.
    ``(4)(A) Not later than 15 months after the date of the 
enactment of this subsection, the Director of the Office of 
Management and Budget shall submit the first financial 
management status report and governmentwide 5-year financial 
management plan under this subsection to the appropriate 
committees of the Congress.
    ``(B)(i) Not later than January 31 of each year thereafter, 
the Director of the Office of Management and Budget shall 
submit to the appropriate committees of the Congress a 
financial management status report and a revised governmentwide 
5-year financial management plan to cover the succeeding 5 
fiscal years, including a report on the accomplishments of the 
executive branch in implementing the plan during the preceding 
fiscal year.
    ``(ii) The Director shall include with each revised 
governmentwide 5-year financial management plan a description 
of any substantive changes in the financial statement audit 
plan required by paragraph (3)(B)(viii), progress made by 
executive agencies in implementing the audit plan, and any 
improvements in Federal Government financial management related 
to preparation and audit of financial statements of executive 
agencies.
    ``(5) Not later than 30 days after receiving each annual 
report under section 902(a)(6) of this title, the Director 
shall transmit to the Chairman of the Committee on Government 
Operations of the House of Representatives and the Chairman of 
the Committee on Governmental Affairs of the Senate a final 
copy of that report and any comments on the report by the 
Director.''.
    (b) Clerical Amendment.--The table of contents at the 
beginning of chapter 35 of title 31, United States Code, is 
amended by striking the item relating to section 3512 and 
inserting the following:

``3512. Executive agency accounting and other financial management 
                    reports and plans.''.

    Sec. 302. Chief Financial Officers Council.--(a) 
Establishment.--There is established a Chief Financial Officers 
Council, consisting of--
          (1) the Deputy Director for Management of the Office 
        of Management and Budget, who shall act as chairperson 
        of the council;
          (2) the Controller of the Office of Federal Financial 
        Management of the Office of Management and Budget;
          (3) the Fiscal Assistant Secretary of Treasury; and
          (4) each of the agency Chief Financial Officers 
        appointed under section 901 of title 31, United States 
        Code, as amended by this Act.
    (b) Functions.--The Chief Financial Officers Council shall 
meet periodically to advise and coordinate the activities of 
the agencies of its members on such matters as consolidation 
and modernization of financial systems, improved quality of 
financial information, financial data and information 
standards, internal controls, legislation affecting financial 
operations and organizations, and any other financial 
management matter.
    Sec. 303. Financial Statements of Agencies.--(a) 
Preparation of financial statements.--
          (1) In general.--Subchapter II of chapter 35 of title 
        31, United States Code, is amended by adding at the end 
        the following:

``3515. Financial statements of agencies

    ``(a) Not later than March 31 of 1992 and each year 
thereafter, the head of each executive agency identified in 
section 901(b) of this title shall prepare and submit to the 
Director of the Office of Management and Budget a financial 
statement for the preceding fiscal year, covering--
          ``(1) each revolving fund and trust fund of the 
        agency; and
          ``(2) to the extent practicable, the accounts of each 
        office, bureau, and activity of the agency which 
        performed substantial commercial functions during the 
        preceding fiscal year.
    ``(b) Each financial statement of an executive agency under 
this section shall reflect--
          ``(1) the overall financial position of the revolving 
        funds, trust funds, offices, bureaus, and activities 
        covered by the statement, including assets and 
        liabilities thereof;
          ``(2) results of operations of those revolving funds, 
        trust funds, offices, bureaus, and activities;
          ``(3) cash flows or changes in financial position of 
        those revolving funds, trust funds, offices, bureaus, 
        and activities; and
          ``(4) a reconciliation to budget reports of the 
        executive agency for those revolving funds, trust 
        funds, offices, bureaus, and activities.
    ``(c) The Director of the Office of Management and Budget 
shall prescribe the form and content of the financial 
statements of executive agencies under this section, consistent 
with applicable accounting principles, standards, and 
requirements.
    ``(d) For purposes of this section, the term `commercial 
functions' includes buying and leasing of real estate, 
providing insurance, making loans and loan guarantees, and 
other credit programs and any activity involving the provision 
of a service or thing of value for which a fee, royalty, rent, 
or other charge is imposed by an agency for services and things 
of value it provides.
    ``(e) Not later than March 31 of each year, the head of 
each executive agency designated by the President may prepare 
and submit to the Director of the Office of Management and 
Budget a financial statement for the preceding fiscal year, 
covering accounts of offices, bureaus, and activities of the 
agency in addition to those described in subsection (a).''.
          (2) Effective date of subsection.--Subsection (e) of 
        section 3515 of title 31, United States Code, as added 
        by paragraph (1), shall take effect on the date on 
        which a resolution described in subsection (b)(1) of 
        this section is passed by the Congress and approved by 
        the President.
          (3) Waiver of requirement.--The Director of the 
        Office of Management and Budget may, for fiscal year 
        1991, waive the application of section 3515(a) of title 
        31, United States Code, as amended by this subsection, 
        with respect to any revolving fund, trust fund, or 
        account of an executive agency.
    (b) Resolution Approving Designation of Agencies.--
          (1) Resolution described.--A resolution referred to 
        in subsection (a)(2) is a joint resolution the matter 
        after the resolving clause of which is as follows: 
        ``That the Congress approves the executive agencies 
        designated by the President pursuant to section 3515(e) 
        of title 31, United States Code.''.
          (2) Introduction of resolution.--No later than the 
        first day of session following the day on which the 
        President submits to the Congress a designation of 
        executive agencies authorized to submit financial 
        statements under section 3515(e) of title 31, United 
        States Code, as added by subsection (a), a resolution 
        as described in paragraph (1) shall be introduced (by 
        request) in the House by the chairman of the Committee 
        on Government Operations of the House of 
        Representatives, or by a Member or Members of the House 
        designated by such chairman; and shall be introduced 
        (by request) in the Senate by the chairman of the 
        Committee on Governmental Affairs of the Senate, or by 
        a Member or Members of the Senate designated by such 
        chairman.
          (3) Referral.--A resolution described in paragraph 
        (1), shall be referred to the Committee on Governmental 
        Affairs of the Senate and the Committee on Government 
        Operations of the House (and all resolutions with 
        respect to the same designation of executive agencies 
        shall be referred to the same committee) by the 
        President of the Senate or the Speaker of the House of 
        Representatives, as the case may be. The committee 
        shall make its recommendations to the House of 
        Representatives or the Senate, respectively, within 60 
        calendar days of continuous session of the Congress 
        following the date of such resolution's introduction.
          (4) Discharge of committee.--If the committee to 
        which is referred a resolution introduced pursuant to 
        paragraph (2) (or, in the absence of such a resolution, 
        the first resolution introduced with respect to the 
        same designation of executive agencies) has not 
        reported such resolution or identical resolution at the 
        end of 60 calendar days of continuous session of the 
        Congress after its introduction, such committee shall 
        be deemed to be discharged from further consideration 
        of such resolution and such resolution shall be placed 
        on the appropriate calendar of the House involved.
          (5) Procedure after report or discharge of committee; 
        vote on final passage.--(A) When the committee has 
        reported, or has been deemed to be discharged (under 
        paragraph (4)) from further consideration of, a 
        resolution described in paragraph (1), it is at any 
        time thereafter in order (even though a previous motion 
        to the same effect has been disagreed to) for any 
        Member of the respective House to move to proceed to 
        the consideration of the resolution. The motion is 
        highly privileged and is not debatable. The motion 
        shall not be subject to amendment, or to a motion to 
        postpone, or a motion to proceed to the consideration 
        of other business. A motion to reconsider the vote by 
        which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the 
        consideration of the resolution is agreed to, the 
        resolution shall remain the unfinished business of the 
        respective House until disposed of.
          (B) Debate on the resolution, and on all debatable 
        motions and appeals in connection therewith, shall be 
        limited to not more than 10 hours, which shall be 
        divided equally between individuals favoring and 
        individuals opposing the resolution. A motion further 
        to limit debate is in order and not debatable. An 
        amendment to, or a motion to postpone, or a motion to 
        proceed to the consideration of other business, or a 
        motion to recommit the resolution is not in order. A 
        motion to reconsider the vote by which the resolution 
        is passed or rejected shall not be in order.
          (C) Immediately following the conclusion of the 
        debate on the resolution and a single quorum call at 
        the conclusion of the debate if requested in accordance 
        with the rules of the appropriate House, the vote on 
        final passage of the resolution shall occur.
  (D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of 
Representatives, as the case may be, to the procedure relating 
to a resolution described in paragraph (1), shall be decided 
without debate.
  (E) If, prior to the passage by one House of a resolution of 
that House, that House receives a resolution with respect to 
the same designation of executive agencies from the other 
House, then--
                  (i) the procedure in that House shall be the 
                same as if no resolution had been received from 
                the other House; but
                  (ii) the vote on final passage shall be on 
                the resolution of the other House.
          (F) It shall not be in order in either the House of 
        Representatives or the Senate to consider a resolution 
        described in paragraph (1), or to consider any 
        conference report on such a resolution, unless the 
        Director of the Office of Management and Budget submits 
        to the Congress a report under subsection (e).
          (c) Report on substantial commercial functions.--Not 
        later than 180 days after the date of the enactment of 
        this Act, the Director of the Office of Management and 
        Budget shall determine and report to the Congress on 
        which executive agencies or parts thereof perform 
        substantial commercial functions for which financial 
        statements can be prepared practicably under section 
        3515 of title 31, United States Code, as added by this 
        section.
          (d) Pilot project.--(1) Not later than March 31 of 
        each of 1991, 1992, and 1993, the head of the 
        Departments of Agriculture, Labor, and Veterans 
        Affairs, the General Services Administration, and the 
        Social Security Administration shall each prepare and 
        submit to the Director of the Office of Management and 
        Budget financial statements for the preceding fiscal 
        year for the accounts of all of the offices, bureaus, 
        and activities of that department or administration.
          (2) Not later than March 31 of each of 1992 and 1993, 
        the head of the Departments of Housing and Urban 
        Development and the Army shall prepare and submit to 
        the Director of the Office of Management and Budget 
        financial statements for the preceding fiscal year for 
        the accounts of all of the offices, bureaus, and 
        activities of that department.
    (3) Not later than March 31, 1993, the head of the 
Department of the Air Force, the Internal Revenue Service, and 
the United States Customs Service, shall each prepare and 
submit to the Director of the Office of Management and Budget 
financial statements for the preceding fiscal year for the 
accounts of all of the offices, bureaus, and activities of that 
department or service.
    (4) Each financial statement prepared under this subsection 
shall be audited in accordance with section 3521 (e), (f), (g), 
and (h) of title 31, United States Code.
    (e) Report on Initial Financial Statements.--Not later than 
June 30, 1993, the Director of the Office of Management and 
Budget shall report to the Congress on the financial statements 
prepared for fiscal years 1990, 1991, and 1992 under subsection 
(a) of section 3515 of title 31, United States Code (as added 
by subsection (a) of this section) and under subsection (d) of 
this section. The report shall include analysis of--
    (1) the accuracy of the data included in the financial 
statements;
    (2) the difficulties each department and agency encountered 
in preparing the data included in the financial statements;
    (3) the benefits derived from the preparation of the 
financial statements; and
    (4) the cost associated with preparing and auditing the 
financial statements, including a description of any activities 
that were foregone as a result of that preparation and 
auditing.
    (f) Clerical Amendment.--The table of sections at the 
beginning of chapter 35 of title 31, United States Code, is 
amended by inserting after the item relating to section 3514 
the following:

``3515. Financial statements of agencies.''.

    Sec. 304. Financial Audits of Agencies.--(a) In General.--
Section 3521 of title 31, United States Code, is amended by 
adding at the end the following new subsections:
    ``(e) Each financial statement prepared under section 3515 
by an agency shall be audited in accordance with applicable 
generally accepted government auditing standards--
          ``(1) in the case of an agency having an Inspector 
        General appointed under the Inspector General Act of 
        1978 (5 U.S.C. App.), by the Inspector General or by an 
        independent external auditor, as determined by the 
        Inspector General of the agency; and
          ``(2) in any other case, by an independent external 
        auditor, as determined by the head of the agency.
    ``(f) Not later than June 30 following the fiscal year for 
which a financial statement is submitted under section 3515 of 
this title by an agency, the person who audits the statement 
for purpose of subsection (e) shall submit a report on the 
audit to the head of the agency. A report under this subsection 
shall be prepared in accordance with generally accepted 
government auditing standards.
    ``(g) The Comptroller General of the United States--
          ``(1) may review any audit of a financial statement 
        conducted under this subsection by an Inspector General 
        or an external auditor;
          ``(2) shall report to the Congress, the Director of 
        the Office of Management and Budget, and the head of 
        the agency which prepared the statement, regarding the 
        results of the review and make any recommendation the 
        Comptroller General considers appropriate; and
          ``(3) may audit a financial statement prepared under 
        section 3515 of this title at the discretion of the 
        Comptroller General or at the request of a committee of 
        the Congress.
  An audit the Comptroller General performs under this 
subsection shall be in lieu of the audit otherwise required by 
subsection (e) of this section. Prior to performing such audit, 
the Comptroller General shall consult with the Inspector 
General of the agency which prepared the statement.
    ``(h) Each financial statement prepared by an executive 
agency for a fiscal year after fiscal year 1991 shall be 
audited in accordance with this section and the plan required 
by section 3512(a)(3)(B)(viii) of this title.''.
    (b) Waiver of Requirements.--The Director of the Office of 
Management and Budget may waive application of subsections (e) 
and (f) of section 3521 of title 31, United States Code, as 
amended by this section, to a financial statement submitted by 
an agency for fiscal years 1990 and 1991.
    Sec. 305. Financial Audits of Government Corporations.--
Section 9105 of title 31, United States Code, is amended to 
read as follows:

``9105. Audits

    ``(a)(1) The financial statements of Government 
corporations shall be audited by the Inspector General of the 
corporation appointed under the Inspector General Act of 1978 
(5 U.S.C. App.) or by an independent external auditor, as 
determined by the Inspector General or, if there is no 
Inspector General, by the head of the corporation.
    ``(2) Audits under this section shall be conducted in 
accordance with applicable generally accepted government 
auditing standards.
    ``(3) Upon completion of the audit required by this 
subsection, the person who audits the statement shall submit a 
report on the audit to the head of the Government corporation, 
to the Chairman of the Committee on Government Operations of 
the House of Representatives, and to the Chairman of the 
Committee on Governmental Affairs of the Senate.
    ``(4) The Comptroller General of the United States--
          ``(A) may review any audit of a financial statement 
        conducted under this subsection by an Inspector General 
        or an external auditor;
          ``(B) shall report to the Congress, the Director of 
        the Office of Management and Budget, and the head of 
        the Government corporation which prepared the 
        statement, regarding the results of the review and make 
        any recommendation the Comptroller General of the 
        United States considers appropriate; and
          ``(C) may audit a financial statement of a Government 
        corporation at the discretion of the Comptroller 
        General or at the request of a committee of the 
        Congress.
An audit the Comptroller General performs under this paragraph 
shall be in lieu of the audit otherwise required by paragraph 
(1) of this subsection. Prior to performing such audit, the 
Comptroller General shall consult with the Inspector General of 
the agency which prepared the statement.
  ``(5) A Government corporation shall reimburse the 
Comptroller General of the United States for the full cost of 
any audit conducted by the Comptroller General under this 
subsection, as determined by the Comptroller General. All 
reimbursements received under this paragraph by the Comptroller 
General of the United States shall be deposited in the Treasury 
as miscellaneous receipts.
          ``(b) Upon request of the Comptroller General of the 
        United States, a Government corporation shall provide 
        to the Comptroller General of the United States all 
        books, accounts, financial records, reports, files, 
        workpapers, and property belonging to or in use by the 
        Government corporation and its auditor that the 
        Comptroller General of the United States considers 
        necessary to the performance of any audit or review 
        under this section.
          ``(c) Activities of the Comptroller General of the 
        United States under this section are in lieu of any 
        audit of the financial transactions of a Government 
        corporation that the Comptroller General is required to 
        make under any other law.''.
  Sec. 306. Management Reports of Government Corporations.--(a) 
In General.--Section 9106 of title 31, United States Code, is 
amended to read as follows:
  Sec. ``9106. Management reports
  ``(a)(1) A Government corporation shall submit an annual 
management report to the Congress not later than 180 days after 
the end of the Government corporation's fiscal year.
  ``(2) A management report under this subsection shall 
include--
          ``(A) a statement of financial position;
          ``(B) a statement of operations;
          ``(C) a statement of cash flows;
          ``(D) a reconciliation to the budget report of the 
        Government corporation, if applicable;
          ``(E) a statement on internal accounting and 
        administrative control systems by the head of the 
        management of the corporation, consistent with the 
        requirements for agency statements on internal 
        accounting and administrative control systems under the 
        amendments made by the Federal Managers' Financial 
        Integrity Act of 1982 (Public Law 97-255);
          ``(F) the report resulting from an audit of the 
        financial statements of the corporation conducted under 
        section 9105 of this title; and
          ``(G) any other comments and information necessary to 
        inform the Congress about the operations and financial 
        condition of the corporation.
  ``(b) A Government corporation shall provide the President, 
the Director of the Office of Management and Budget, and the 
Comptroller General of the United States a copy of the 
management report when it is submitted to Congress.''.
  (b) Clerical Amendment.--The table of sections for chapter 91 
of title 31, United States Code, is amended by striking the 
item relating to section 9106 and inserting the following:

``9106. Management reports.''.

  Sec. 307. Adoption of Capital Accounting Standards.--No 
capital accounting standard or principle, including any human 
capital standard or principle, shall be adopted for use in an 
executive department or agency until such standard has been 
reported to the Congress and a period of 45 days of continuous 
session of the Congress has expired.
  Approved November 15, 1990
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    This Act has not been amended as of December 31, 1995.
                      Cash Management Improvement

                         Act Amendments of 1992

                           Public Law 102-589

                            (106 Stat. 5133)

AN ACT To amend the Cash Management Improvement Act of 1990 to provide 
 adequate time for implementation of that Act, and for other purposes.
  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Cash Management Improvement 
Act Amendments of 1992''.

SEC. 2. AMENDMENTS TO THE CASH MANAGEMENT IMPROVEMENT ACT OF 1990.

  The Cash Management Improvement Act of 1990 (Public Law 101-
453,
  104 Stat. 1058) is amended--
          (1) in section 4(c) (31 U.S.C. 3335 note), by 
        striking ``by the date which is 2 years after the date 
        of the enactment of this Act'';
          (2) in section 5 (31 U.S.C. 6503 note)--
                  (A) in subsection (d)(1), by striking ``not 
                later than 2 years after the date of enactment 
                of this Act'' and inserting ``July 1, 1993 or 
                the first day of a State's fiscal year 
                beginning in 1993, whichever is later'';
                  B) in subsection (d)(2), by striking ``2 
                years after the date of enactment of this Act'' 
                and inserting ``on July 1, 1993 or the first 
                day of a State's fiscal year beginning in 1993, 
                whichever is later''; and
                  (C) in subsection (e), by striking ``2 years 
                after the date of enactment of this Act'' and 
                inserting ``on July 1, 1993 or the first day of 
                a State's fiscal year beginning in 1993, 
                whichever is later''; and
          (3) in section 6 (31 U.S.C. 6503 note), by striking 
        ``Four'' and inserting ``Five''.

SEC. 3. INTERNAL REVENUE SERVICE TAX REFUND OFFSET.

  Section 3720A of title 31, United States Code, is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Any Federal agency that is owed a past-due legally 
enforceable debt (other than any past-due support), including 
debt administered by a third party acting as an agent for the 
Federal Government, by a named person shall, in accordance with 
regulations issued pursuant to subsections (b) and (d), notify 
the Secretary of the Treasury at least once a year of the 
amount of all such debt.'';
          (2) in subsection (b)--
                  (A) in paragraph (3) by striking out ``and'' 
                at the end thereof;
                  (B) in paragraph (4) by striking out ``to 
                obtain payment of such debt.'' and inserting in 
                lieu thereof ``(determined on a government-wide 
                basis) to obtain payment of such debt; and''; 
                and
                  (C) by adding at the end thereof the 
                following new paragraph:
          ``(5) certifies that reasonable efforts have been 
        made by the agency (pursuant to regulations) to obtain 
        payment of such debt.'';
          (3) by redesignating subsection (g) as subsection 
        (h);
          (4) in subsection (h) (as redesignated under 
        paragraph (3) of this section)--
                  (A) in paragraph (2) by striking out ``and'' 
                at the end thereof;
                  (B) in paragraph (3) by adding ``; and'' at 
                the end thereof; and
                  (C) by adding after paragraph (3) the 
                following new paragraph:
          ``(4) the term `person' means an individual; or a 
        sole proprietorship, partnership, corporation, 
        nonprofit organization, or any other form of business 
        association.''; and
          (5) by inserting after subsection (f) the following: 
        ``(g) In the case of refunds of business associations, 
        this section shall apply only to refunds payable on or 
        after January 1, 1995. In the case of refunds of 
        individuals who owe debts to Federal agencies that have 
        not participated in the Federal tax refund offset 
        program prior to the date of enactment of this 
        subsection, this section shall apply only to refunds 
        payable on or after January 1, 1994.''.

SEC. 4. EXTENSION OF THE PRIVATE COUNSEL PILOT.

  (a) Extension of Program.--The pilot debt collection program 
carried out by the Attorney General under section 3718 (b) and 
(c) of title 31, United States Code, as authorized and directed 
under section 3 of the Act entitled ``An Act to amend section 
3718 of title 31, United States Code, to authorize contracts 
retaining private counsel to furnish legal services in the case 
of indebtedness owed the United States.'' approved October 29, 
1986 (37 U.S.C. 3718 note; Public Law 99-578) is extended 
through September 30, 1996.
  (b) Extension of Judicial Districts.--Section 3 of such Act 
is amended by striking out ``not more than 10'' and inserting 
in lieu thereof ``not more than 15''.
  (c) Extension of Authorization.--Section 5 of such Act is 
amended by striking out all after ``effect'' and inserting in 
lieu thereof ``until September 30, 1996.''.
  (d) Contract Extension.--The Attorney General may extend or 
modify any or all of the contracts entered into with private 
counsel prior to October 1, 1992, for such time as is necessary 
to conduct a full and open competition in accordance with 
section 3718(b) of title 31, United States Code.

SEC. 5. AUDIT BY INSPECTOR GENERAL.

  (a) Contents of Audit.--The Inspector General of the 
Department of Justice shall conduct an audit, for the period 
beginning on October 1, 1991, and ending on September 30, 1994, 
of the actions of the Attorney General under subsection (b) of 
section 3718 of title 31, United States Code, under the pilot 
program referred to in section 3 of the Act entitled ``An Act 
to amend section 3718 of title 31, United States Code, to 
authorize contracts retaining private counsel to furnish legal 
services in the case of indebtedness owed the United States.'', 
approved October 29, 1986 (37 U.S.C. 3718 note; Public Law 99-
578). The Inspector General shall determine the extent of the 
competition among private counsel to obtain contracts awarded 
under such subsection, the reasonableness of the fees provided 
in such contracts, the diligence and efforts of the Attorney 
General to retain private counsel in accordance with the 
provisions of such subsection, the results of the debt 
collection efforts of private counsel retained under such 
contracts, and the cost-effectiveness of the pilot project 
compared with the use of United States Attorneys' Offices for 
debt collection.
  (b) Report to Congress.--After completing the audit under 
subsection (a), the Inspector General shall transmit to the 
Congress, not later than June 30, 1995, a report on the 
findings, conclusions, and recommendations resulting from the 
audit.

SEC. 6. ADDITIONAL REPORTING REQUIREMENTS ON CONTRACTS FOR LEGAL 
                    SERVICES.

  Section 3718 of title 31, United States Code, is amended by 
adding at the end thereof the following new subsection:
  ``(g) In order to assist Congress in determining whether use 
of private counsel is a cost-effective method of collecting 
Government debts, the Attorney General shall, following 
consultation with the General Accounting Office, maintain and 
make available to the Inspector General of the Department of 
Justice, statistical data relating to the comparative costs of 
debt collection by participating United States Attorneys' 
Offices and by private counsel.''.

SEC. 7. EFFECTIVE DATE.

  The provisions of this Act and amendments made by this Act 
shall take effect on the date of enactment of this Act, except 
if such date of enactment is on or after October 1, 1992, such 
provisions and amendments shall be effective as if enacted on 
September 30, 1992.
---------------------------------------------------------------------------
    This Act has not been amended as of December 31, 1995.
---------------------------------------------------------------------------
November 10, 1992
             Government Performance and Results Act of 1993

                           Public Law 103-62

                            (107 Stat. 285)

   AN ACT To provide for the establishment of strategic planning and 
   performance measurement in the Federal Government, and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Performance and 
Results Act of 1993''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
          (1) waste and inefficiency in Federal programs 
        undermine the confidence of the American people in the 
        Government and reduces the Federal Government's ability 
        to address adequately vital public needs;
          (2) Federal managers are seriously disadvantaged in 
        their efforts to improve program efficiency and 
        effectiveness, because of insufficient articulation of 
        program goals and inadequate information on program 
        performance; and
          (3) congressional policymaking, spending decisions 
        and program oversight are seriously handicapped by 
        insufficient attention to program performance and 
        results.
    (b) Purposes.--The purposes of this Act are to--
          (1) improve the confidence of the American people in 
        the capability of the Federal Government, by 
        systematically holding Federal agencies accountable for 
        achieving program results;
          (2) initiate program performance reform with a series 
        of pilot projects in setting program goals, measuring 
        program performance against those goals, and reporting 
        publicly on their progress;
          (3) improve Federal program effectiveness and public 
        accountability by promoting a new focus on results, 
        service quality, and customer satisfaction;
          (4) help Federal managers improve service delivery, 
        by requiring that they plan for meeting program 
        objectives and by providing them with information about 
        program results and service quality;
          (5) improve congressional decisionmaking by providing 
        more objective information on achieving statutory 
        objectives, and on the relative effectiveness and 
        efficiency of Federal programs and spending; and
          (6) improve internal management of the Federal 
        Government.

SEC. 3. STRATEGIC PLANNING.

    Chapter 3 of title 5, United States Code, is amended by 
adding after section 305 the following new section:

``Sec. 306. Strategic Plans

    ``(a) No later than September 30, 1997, the head of each 
agency shall submit to the Director of the Office of Management 
and Budget and to the Congress a strategic plan for program 
activities. Such plan shall contain--
          ``(1) a comprehensive mission statement covering the 
        major functions and operations of the agency;
          ``(2) general goals and objectives, including 
        outcome-related goals and objectives, for the major 
        functions and operations of the agency;
          ``(3) a description of how the goals and objectives 
        are to be achieved, including a description of the 
        operational processes, skills and technology, and the 
        human, capital, information, and other resources 
        required to meet those goals and objectives;
          ``(4) a description of how the performance goals 
        included in the plan required by section 1115(a) of 
        title 31 shall be related to the general goals and 
        objectives in the strategic plan;
          ``(5) an identification of those key factors external 
        to the agency and beyond its control that could 
        significantly affect the achievement of the general 
        goals and objectives; and
          ``(6) a description of the program evaluations used 
        in establishing or revising general goals and 
        objectives, with a schedule for future program 
        evaluations.
    ``(b) The strategic plan shall cover a period of not less 
than five years forward from the fiscal year in which it is 
submitted, and shall be updated and revised at least every 
three years.
    ``(c) The performance plan required by section 1115 of 
title 31 shall be consistent with the agency's strategic plan. 
A performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section.
    ``(d) When developing a strategic plan, the agency shall 
consult with the Congress, and shall solicit and consider the 
views and suggestions of those entities potentially affected by 
or interested in such a plan.
    ``(e) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of strategic plans under this section shall be 
performed only by Federal employees.
    ``(f) For purposes of this section the term `agency' means 
an Executive agency defined under section 105, but does not 
include the Central Intelligence Agency, the General Accounting 
Office, the Panama Canal Commission, the United States Postal 
Service, and the Postal Rate Commission.''.

SEC. 4. ANNUAL PERFORMANCE PLANS AND REPORTS.

    (a) Budget Contents and Submission to Congress.--Section 
1105(a) of title 31, United States Code, is amended by adding 
at the end thereof the following new paragraph:
          ``(29) beginning with fiscal year 1999, a Federal 
        Government performance plan for the overall budget as 
        provided for under section 1115.''.
    (b) Performance Plans and Reports.--Chapter 11 of title 31, 
United States Code, is amended by adding after section 1114 the 
following new sections:

``Sec. 1115. Performance plans

    ``(a) In carrying out the provisions of section 
1105(a)(29), the Director of the Office of Management and 
Budget shall require each agency to prepare an annual 
performance plan covering each program activity set forth in 
the budget of such agency. Such plan shall--
          ``(1) establish performance goals to define the level 
        of performance to be achieved by a program activity;
          ``(2) express such goals in an objective, 
        quantifiable, and measurable form unless authorized to 
        be in an alternative form under subsection (b);
          ``(3) briefly describe the operational processes, 
        skills and technology, and the human, capital, 
        information, or other resources required to meet the 
        performance goals;
          ``(4) establish performance indicators to be used in 
        measuring or assessing the relevant outputs, service 
        levels, and outcomes of each program activity;
          ``(5) provide a basis for comparing actual program 
        results with the established performance goals; and
          ``(6) describe the means to be used to verify and 
        validate measured values.
    ``(b) If an agency, in consultation with the Director of 
the Office of Management and Budget, determines that it is not 
feasible to express the performance goals for a particular 
program activity in an objective, quantifiable, and measurable 
form, the Director of the Office of Management and Budget may 
authorize an alternative form. Such alternative form shall--
          ``(1) include separate descriptive statements of--
                  ``(A)(i) a minimally effective program, and
                  ``(ii) a successful program, or
                  ``(B) such alternative as authorized by the 
                Director of the Office of Management and 
                Budget, with sufficient precision and in such 
                terms that would allow for an accurate, 
                independent determination of whether the 
                program activity's performance meets the 
                criteria of the description; or
          ``(2) state why it is infeasible or impractical to 
        express a performance goal in any form for the program 
        activity.
    ``(c) For the purpose of complying with this section, an 
agency may aggregate, disaggregate, or consolidate program 
activities, except that any aggregation or consolidation may 
not omit or minimize the significance of any program activity 
constituting a major function or operation for the agency.
    ``(d) An agency may submit with its annual performance plan 
an appendix covering any portion of the plan that--
          ``(1) is specifically authorized under criteria 
        established by an Executive order to be kept secret in 
        the interest of national defense or foreign policy; and
          ``(2) is properly classified pursuant to such 
        Executive order.
    ``(e) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of performance plans under this section shall be 
performed only by Federal employees.
    ``(f) For purposes of this section and sections 1116 
through 1119, and sections 9703 and 9704 the term--
          ``(1) `agency' has the same meaning as such term is 
        defined under section 306(f) of title 5;
          ``(2) `outcome measure' means an assessment of the 
        results of a program activity compared to its intended 
        purpose;
          ``(3) `output measure' means the tabulation, 
        calculation, or recording of activity or effort and can 
        be expressed in a quantitative or qualitative manner;
          ``(4) `performance goal' means a target level of 
        performance expressed as a tangible, measurable 
        objective, against which actual achievement can be 
        compared, including a goal expressed as a quantitative 
        standard, value, or rate;
          ``(5) `performance indicator' means a particular 
        value or characteristic used to measure output or 
        outcome;
          ``(6) `program activity' means a specific activity or 
        project as listed in the program and financing 
        schedules of the annual budget of the United States 
        Government; and
          ``(7) `program evaluation' means an assessment, 
        through objective measurement and systematic analysis, 
        of the manner and extent to which Federal programs 
        achieve intended objectives.

``Sec. 1116. Program performance reports

    ``(a) No later than March 31, 2000, and no later than March 
31 of each year thereafter, the head of each agency shall 
prepare and submit to the President and the Congress, a report 
on program performance for the previous fiscal year.
    ``(b)(1) Each program performance report shall set forth 
the performance indicators established in the agency 
performance plan under section 1115, along with the actual 
program performance achieved compared with the performance 
goals expressed in the plan for that fiscal year.
    ``(2) If performance goals are specified in an alternative 
form under section 1115(b), the results of such program shall 
be described in relation to such specifications, including 
whether the performance failed to meet the criteria of a 
minimally effective or successful program.
    ``(c) The report for fiscal year 2000 shall include actual 
results for the preceding fiscal year, the report for fiscal 
year 2001 shall include actual results for the two preceding 
fiscal years, and the report for fiscal year 2002 and all 
subsequent reports shall include actual results for the three 
preceding fiscal years.
    ``(d) Each report shall--
          ``(1) review the success of achieving the performance 
        goals of the fiscal year;
          ``(2) evaluate the performance plan for the current 
        fiscal year relative to the performance achieved toward 
        the performance goals in the fiscal year covered by the 
        report;
          ``(3) explain and describe, where a performance goal 
        has not been met (including when a program activity's 
        performance is determined not to have met the criteria 
        of a successful program activity under section 
        1115(b)(1)(A)(ii) or a corresponding level of 
        achievement if another alternative form is used)--
                  ``(A) why the goal was not met;
                  ``(B) those plans and schedules for achieving 
                the established performance goal; and
                  ``(C) if the performance goal is impractical 
                or infeasible, why that is the case and what 
                action is recommended;
          ``(4) describe the use and assess the effectiveness 
        in achieving performance goals of any waiver under 
        section 9703 of this title; and
          ``(5) include the summary findings of those program 
        evaluations completed during the fiscal year covered by 
        the report.
    ``(e) An agency head may include all program performance 
information required annually under this section in an annual 
financial statement required under section 3515 if any such 
statement is submitted to the Congress no later than March 31 
of the applicable fiscal year.
    ``(f) The functions and activities of this section shall be 
considered to be inherently Governmental functions. The 
drafting of program performance reports under this section 
shall be performed only by Federal employees.

``Sec. 1117. Exemption

    ``The Director of the Office of Management and Budget may 
exempt from the requirements of sections 1115 and 1116 of this 
title and section 306 of title 5, any agency with annual 
outlays of $20,000,000 or less.''.

SEC. 5. MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY.

    (a) Managerial Accountability and Flexibility.--Chapter 97 
of title 31, United States Code, is amended by adding after 
section 9702, the following new section:

``Sec. 9703. Managerial accountability and flexibility

    ``(a) Beginning with fiscal year 1999, the performance 
plans required under section 1115 may include proposals to 
waive administrative procedural requirements and controls, 
including specification of personnel staffing levels, 
limitations on compensation or remuneration, and prohibitions 
or restrictions on funding transfers among budget object 
classification 20 and subclassifications 11, 12, 31, and 32 of 
each annual budget submitted under section 1105, in return for 
specific individual or organization accountability to achieve a 
performance goal. In preparing and submitting the performance 
plan under section 1105(a)(29), the Director of the Office of 
Management and Budget shall review and may approve any proposed 
waivers. A waiver shall take effect at the beginning of the 
fiscal year for which the waiver is approved.
    ``(b) Any such proposal under subsection (a) shall describe 
the anticipated effects on performance resulting from greater 
managerial or organizational flexibility, discretion, and 
authority, and shall quantify the expected improvements in 
performance resulting from any waiver. The expected 
improvements shall be compared to current actual performance, 
and to the projected level of performance that would be 
achieved independent of any waiver.
    ``(c) Any proposal waiving limitations on compensation or 
remuneration shall precisely express the monetary change in 
compensation or remuneration amounts, such as bonuses or 
awards, that shall result from meeting, exceeding, or failing 
to meet performance goals.
    ``(d) Any proposed waiver of procedural requirements or 
controls imposed by an agency (other than the proposing agency 
or the Office of Management and Budget) may not be included in 
a performance plan unless it is endorsed by the agency that 
established the requirement, and the endorsement included in 
the proposing agency's performance plan.
    ``(e) A waiver shall be in effect for one or two years as 
specified by the Director of the Office of Management and 
Budget in approving the waiver. A waiver may be renewed for a 
subsequent year. After a waiver has been in effect for three 
consecutive years, the performance plan prepared under section 
1115 may propose that a waiver, other than a waiver of 
limitations on compensation or remuneration, be made permanent.
    ``(f) For purposes of this section, the definitions under 
section 1115(f) shall apply.''.

SEC. 6. PILOT PROJECTS.

    (a) Performance Plans and Reports.--Chapter 11 of title 31, 
United States Code, is amended by inserting after section 1117 
(as added by section 4 of this Act) the following new section:

``Sec. 1118. Pilot projects for performance goals

    ``(a) The Director of the Office of Management and Budget, 
after consultation with the head of each agency, shall 
designate not less than ten agencies as pilot projects in 
performance measurement for fiscal years 1994, 1995, and 1996. 
The selected agencies shall reflect a representative range of 
Government functions and capabilities in measuring and 
reporting program performance.
          ``(b) Pilot projects in the designated agencies shall 
        undertake the preparation of performance plans under 
        section 1115, and program performance reports under 
        section 1116, other than section 1116(c), for one or 
        more of the major functions and operations of the 
        agency. A strategic plan shall be used when preparing 
        agency performance plans during one or more years of 
        the pilot period.
    ``(c) No later than May 1, 1997, the Director of the Office 
of Management and Budget shall submit a report to the President 
and to the Congress which shall--
          ``(1) assess the benefits, costs, and usefulness of 
        the plans and reports prepared by the pilot agencies in 
        meeting the purposes of the Government Performance and 
        Results Act of 1993;
          ``(2) identify any significant difficulties 
        experienced by the pilot agencies in preparing plans 
        and reports; and
          ``(3) set forth any recommended changes in the 
        requirements of the provisions of Government 
        Performance and Results Act of 1993, section 306 of 
        title 5, sections 1105, 1115, 1116, 1117, 1119 and 9703 
        of this title, and this section.''.
    (b) Managerial Accountability and Flexibility.--Chapter 97 
of title 31, United States Code, is amended by inserting after 
section 9703 (as added by section 5 of this Act) the following 
new section:

``Sec. 9704. Pilot projects for managerial accountability and 
                    flexibility

    ``(a) The Director of the Office of Management and Budget 
shall designate not less than five agencies as pilot projects 
in managerial accountability and flexibility for fiscal years 
1995 and 1996. Such agencies shall be selected from those 
designated as pilot projects under section 1118 and shall 
reflect a representative range of Government functions and 
capabilities in measuring and reporting program performance.
    ``(b) Pilot projects in the designated agencies shall 
include proposed waivers in accordance with section 9703 for 
one or more of the major functions and operations of the 
agency.
    ``(c) The Director of the Office of Management and Budget 
shall include in the report to the President and to the 
Congress required under section 1118(c)--
          ``(1) an assessment of the benefits, costs, and 
        usefulness of increasing managerial and organizational 
        flexibility, discretion, and authority in exchange for 
        improved performance through a waiver; and
          ``(2) an identification of any significant 
        difficulties experienced by the pilot agencies in 
        preparing proposed waivers.
    ``(d) For purposes of this section the definitions under 
section 1115(f) shall apply.''.
    (c) Performance Budgeting.--Chapter 11 of title 31, United 
States Code, is amended by inserting after section 1118 (as 
added by section 6 of this Act) the following new section:

``Sec. 1119. Pilot projects for performance budgeting

    ``(a) The Director of the Office of Management and Budget, 
after consultation with the head of each agency shall designate 
not less than five agencies as pilot projects in performance 
budgeting for fiscal years 1998 and 1999. At least three of the 
agencies shall be selected from those designated as pilot 
projects under section 1118, and shall also reflect a 
representative range of Government functions and capabilities 
in measuring and reporting program performance.
    ``(b) Pilot projects in the designated agencies shall cover 
the preparation of performance budgets. Such budgets shall 
present, for one or more of the major functions and operations 
of the agency, the varying levels of performance, including 
outcome-related performance, that would result from different 
budgeted amounts.
    ``(c) The Director of the Office of Management and Budget 
shall include, as an alternative budget presentation in the 
budget submitted under section 1105 for fiscal year 1999, the 
performance budgets of the designated agencies for this fiscal 
year.
    ``(d) No later than March 31, 2001, the Director of the 
Office of Management and Budget shall transmit a report to the 
President and to the Congress on the performance budgeting 
pilot projects which shall--
          ``(1) assess the feasibility and advisability of 
        including a performance budget as part of the annual 
        budget submitted under section 1105;
          ``(2) describe any difficulties encountered by the 
        pilot agencies in preparing a performance budget;
          ``(3) recommend whether legislation requiring 
        performance budgets should be proposed and the general 
        provisions of any legislation; and
          ``(4) set forth any recommended changes in the other 
        requirements of the Government Performance and Results 
        Act of 1993, section 306 of title 5, sections 1105, 
        1115, 1116, 1117, and 9703 of this title, and this 
        section.
          ``(e) After receipt of the report required under 
        subsection (d), the Congress may specify that a 
        performance budget be submitted as part of the annual 
        budget submitted under section 1105.''.

SEC. 7. UNITED STATES POSTAL SERVICE.

    Part III of title 39, United States Code, is amended by 
adding at the end thereof the following new chapter:
      ``CHAPTER 28--STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT

``Sec.                                                                  
``2801....................................  Definitions.                
``2802....................................  Strategic plans.            
``2803....................................  Performance plans.          
``2804....................................  Program performance reports.
``2805....................................  Inherently Governmental     
                                             functions.                 
                                                                        

``Sec. 2801. Definitions

    ``For purposes of this chapter the term--
          ``(1) `outcome measure' refers to an assessment of 
        the results of a program activity compared to its 
        intended purpose;
          ``(2) `output measure' refers to the tabulation, 
        calculation, or recording of activity or effort and can 
        be expressed in a quantitative or qualitative manner;
          ``(3) `performance goal' means a target level of 
        performance expressed as a tangible, measurable 
        objective, against which actual achievement shall be 
        compared, including a goal expressed as a quantitative 
        standard, value, or rate;
          ``(4) `performance indicator' refers to a particular 
        value or characteristic used to measure output or 
        outcome;
          ``(5) `program activity' means a specific activity 
        related to the mission of the Postal Service; and
          ``(6) `program evaluation' means an assessment, 
        through objective measurement and systematic analysis, 
        of the manner and extent to which Postal Service 
        programs achieve intended objectives.

``Sec. 2802. Strategic plans.

    ``(a) No later than September 30, 1997, the Postal Service 
shall submit to the President and the Congress a strategic plan 
for its program activities. Such plan shall contain--
          ``(1) a comprehensive mission statement covering the 
        major functions and operations of the Postal Service;
          ``(2) general goals and objectives, including 
        outcome-related goals and objectives, for the major 
        functions and operations of the Postal Service;
          ``(3) a description of how the goals and objectives 
        are to be achieved, including a description of the 
        operational processes, skills and technology, and the 
        human, capital, information, and other resources 
        required to meet those goals and objectives;
          ``(4) a description of how the performance goals 
        included in the plan required under section 2803 shall 
        be related to the general goals and objectives in the 
        strategic plan;
          ``(5) an identification of those key factors external 
        to the Postal Service and beyond its control that could 
        significantly affect the achievement of the general 
        goals and objectives; and
          ``(6) a description of the program evaluations used 
        in establishing or revising general goals and 
        objectives, with a schedule for future program 
        evaluations.
    ``(b) The strategic plan shall cover a period of not less 
than five years forward from the fiscal year in which it is 
submitted, and shall be updated and revised at least every 
three years.
    ``(c) The performance plan required under section 2803 
shall be consistent with the Postal Service's strategic plan. A 
performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section.
    ``(d) When developing a strategic plan, the Postal Service 
shall solicit and consider the views and suggestions of those 
entities potentially affected by or interested in such a plan, 
and shall advise the Congress of the contents of the plan.

``Sec. 2803. Performance plans.

    ``(a) The Postal Service shall prepare an annual 
performance plan covering each program activity set forth in 
the Postal Service budget, which shall be included in the 
comprehensive statement presented under section 2401(g) of this 
title. Such plan shall--
          ``(1) establish performance goals to define the level 
        of performance to be achieved by a program activity;
          ``(2) express such goals in an objective, 
        quantifiable, and measurable form unless an alternative 
        form is used under subsection (b);
          ``(3) briefly describe the operational processes, 
        skills and technology, and the human, capital, 
        information, or other resources required to meet the 
        performance goals;
          ``(4) establish performance indicators to be used in 
        measuring or assessing the relevant outputs, service 
        levels, and outcomes of each program activity;
          ``(5) provide a basis for comparing actual program 
        results with the established performance goals; and
          ``(6) describe the means to be used to verify and 
        validate measured values.
    ``(b) If the Postal Service determines that it is not 
feasible to express the performance goals for a particular 
program activity in an objective, quantifiable, and measurable 
form, the Postal Service may use an alternative form. Such 
alternative form shall--
          ``(1) include separate descriptive statements of--
                  ``(A) a minimally effective program, and
                  ``(B) a successful program, with sufficient 
                precision and in such terms that would allow 
                for an accurate, independent determination of 
                whether the program activity's performance 
                meets the criteria of either description; or
          ``(2) state why it is infeasible or impractical to 
        express a performance goal in any form for the program 
        activity.
    ``(c) In preparing a comprehensive and informative plan 
under this section, the Postal Service may aggregate, 
disaggregate, or consolidate program activities, except that 
any aggregation or consolidation may not omit or minimize the 
significance of any program activity constituting a major 
function or operation.
    ``(d) The Postal Service may prepare a non-public annex to 
its plan covering program activities or parts of program 
activities relating to--
          ``(1) the avoidance of interference with criminal 
        prosecution; or
          ``(2) matters otherwise exempt from public disclosure 
        under section 410(c) of this title.

``Sec. 2804. Program performance reports.

    ``(a) The Postal Service shall prepare a report on program 
performance for each fiscal year, which shall be included in 
the annual comprehensive statement presented under section 
2401(g) of this title.
    ``(b)(1) The program performance report shall set forth the 
performance indicators established in the Postal Service 
performance plan, along with the actual program performance 
achieved compared with the performance goals expressed in the 
plan for that fiscal year.
    ``(2) If performance goals are specified by descriptive 
statements of a minimally effective program activity and a 
successful program activity, the results of such program shall 
be described in relationship to those categories, including 
whether the performance failed to meet the criteria of either 
category.
    ``(c) The report for fiscal year 2000 shall include actual 
results for the preceding fiscal year, the report for fiscal 
year 2001 shall include actual results for the two preceding 
fiscal years, and the report for fiscal year 2002 and all 
subsequent reports shall include actual results for the three 
preceding fiscal years.
    ``(d) Each report shall--
          ``(1) review the success of achieving the performance 
        goals of the fiscal year;
          ``(2) evaluate the performance plan for the current 
        fiscal year relative to the performance achieved 
        towards the performance goals in the fiscal year 
        covered by the report;
          ``(3) explain and describe, where a performance goal 
        has not been met (including when a program activity's 
        performance is determined not to have met the criteria 
        of a successful program activity under section 
        2803(b)(2))--
                  ``(A) why the goal was not met;
                  ``(B) those plans and schedules for achieving 
                the established performance goal; and
                  ``(C) if the performance goal is impractical 
                or infeasible, why that is the case and what 
                action is recommended; and
          ``(4) include the summary findings of those program 
        evaluations completed during the fiscal year covered by 
        the report.

``Sec. 2805. Inherently Governmental functions.

    ``The functions and activities of this chapter shall be 
considered to be inherently Governmental functions. The 
drafting of strategic plans, performance plans, and program 
performance reports under this section shall be performed only 
by employees of the Postal Service.''.

SEC. 8. CONGRESSIONAL OVERSIGHT AND LEGISLATION.

    (a) In General.--Nothing in this Act shall be construed as 
limiting the ability of Congress to establish, amend, suspend, 
or annul a performance goal. Any such action shall have the 
effect of superseding that goal in the plan submitted under 
section 1105(a)(29) of title 31, United States Code.
    (b) GAO Report.--No later than June 1, 1997, the 
Comptroller General of the United States shall report to 
Congress on the implementation of this Act, including the 
prospects for compliance by Federal agencies beyond those 
participating as pilot projects under sections 1118 and 9704 of 
title 31, United States Code.

SEC. 9. TRAINING.

    The Office of Personnel Management shall, in consultation 
with the Director of the Office of Management and Budget and 
the Comptroller General of the United States, develop a 
strategic planning and performance measurement training 
component for its management training program and otherwise 
provide managers with an orientation on the development and use 
of strategic planning and program performance measurement.

SEC. 10. APPLICATION OF ACT.

    No provision or amendment made by this Act may be construed 
as--
          (1) creating any right, privilege, benefit, or 
        entitlement for any person who is not an officer or 
        employee of the United States acting in such capacity, 
        and no person who is not an officer or employee of the 
        United States acting in such capacity shall have 
        standing to file any civil action in a court of the 
        United States to enforce any provision or amendment 
        made by this Act; or
          (2) superseding any statutory requirement, including 
        any requirement under section 553 of title 5, United 
        States Code.

SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendment to Title 5, United States Code.--The table of 
sections for chapter 3 of title 5, United States Code, is 
amended by adding after the item relating to section 305 the 
following:

``306. Strategic plans.''.

    (b) Amendments to Title 31, United States Code.--
          (1) Amendment to Chapter 11.--The table of sections 
        for chapter 11 of title 31, United States Code, is 
        amended by adding after the item relating to section 
        1114 the following:
          ``1115. Performance plans.
          ``1116. Program performance reports.
          ``1117. Exemptions.
          ``1118. Pilot projects for performance goals.
          ``1119. Pilot projects for performance budgeting.''.
          (2) Amendment to Chapter 97.--The table of sections 
        for chapter 97 of title 31, United States Code, is 
        amended by adding after the item relating to section 
        9702 the following:
          ``9703. Managerial accountability and flexibility.
          ``9704. Pilot projects for managerial accountability 
        and flexibility.''.
    (c) Amendment to Title 39, United States Code.--The table 
of chapters for part III of title 39, United States Code, is 
amended by adding at the end thereof the following new item:

``28. Strategic planning and performance management 2801''.

    August 3, 1993.
---------------------------------------------------------------------------
    This Act has not been amended as of December 31, 1995.
                GOVERNMENT MANAGEMENT REFORM ACT OF 1994

                           Public Law 103-356

                            (108 Stat. 3410)

     AN ACT To provide a more effective, efficient, and responsive 
                              Government.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,
    Section 1. Short Title and Table of Contents.--(a) Short 
Title.--This Act may be cited as the ``Government Management 
Reform Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:
    Sec. 1. Short title and table of contents.

                        TITLE I--LIMITATION ON PAY

    Sec. 101. Limitation on certain annual pay adjustments.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

    Sec. 201. SES annual leave accumulation.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

    Sec. 301. Authority to increase efficiency in reporting to 
Congress.

                      TITLE IV--FINANCIAL MANAGEMENT

    Sec. 401. Short title.
    Sec. 402. Electronic payments.
    Sec. 403. Franchise fund pilot programs.
    Sec. 404. Simplification of management reporting process.
    Sec. 405. Annual financial reports.

                       TITLE I--LIMITATION ON PAY

    Sec. 101. Limitation on Certain Annual Pay Adjustments.--
Effective as of December 31, 1994--
          (1) section 601(a)(2) of the Legislative 
        Reorganization Act of 1946 (2 U.S.C. 31(2)) is 
        amended--
                  (A) by striking out ``(2) Effective'' and 
                inserting in lieu thereof ``(2)(A) Subject to 
                subparagraph (B), effective''; and
                  (B) by adding at the end thereof the 
                following:
                  ``(B) In no event shall the percentage 
                adjustment taking effect under subparagraph (A) 
                in any calendar year (before rounding), in any 
                rate of pay, exceed the percentage adjustment 
                taking effect in such calendar year under 
                section 5303 of title 5, United States Code, in 
                the rates of pay under the General Schedule.'';
          (2) section 104 of title 3, United States Code, is 
        amended--
                  (A) in the first sentence by inserting 
                ``(a)'' before ``The'';
                  (B) in the second sentence by striking out 
                ``Effective'' and inserting in lieu thereof 
                ``Subject to subsection (b), effective''; and
                  (C) by adding at the end thereof the 
                following:
    ``(b) In no event shall the percentage adjustment taking 
effect under the second and third sentences of subsection (a) 
in any calendar year (before rounding) exceed the percentage 
adjustment taking effect in such calendar year under section 
5303 of title 5 in the rates of pay under the General 
Schedule.'';
          (3) section 5318 of title 5, United States Code, is 
        amended--
                  (A) in the first sentence by striking out 
                ``Effective'' and inserting in lieu thereof 
                ``(a) Subject to subsection (b), effective''; 
                and
                  (B) by adding at the end thereof the 
                following:
    ``(b) In no event shall the percentage adjustment taking 
effect under subsection (a) in any calendar year (before 
rounding), in any rate of pay, exceed the percentage adjustment 
taking effect in such calendar year under section 5303 in the 
rates of pay under the General Schedule.''; and
          (4) section 461(a) of title 28, United States Code, 
        is amended--
                  (A) by striking out ``(a) Effective'' and 
                inserting in lieu thereof ``(a)(1) Subject to 
                paragraph (2), effective''
                  (B) by adding at the end thereof the 
                following:
          ``(2) In no event shall the percentage adjustment 
        taking effect under paragraph (1) in any calendar year 
        (before rounding), in any salary rate, exceed the 
        percentage adjustment taking effect in such calendar 
        year under section 5303 of title 5 in the rates of pay 
        under the General Schedule.''.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

    Sec. 201. SES Annual Leave Accumulation.--(a) In General.--
Effective on the first day of the first applicable pay period 
beginning after the date of the enactment of this Act, 
subsection (f) of section 6304 of title 5, United States Code, 
is amended to read as follows:
          ``(f)(1) This subsection applies with respect to 
        annual leave accrued by an individual while serving in 
        a position in--
                  ``(A) the Senior Executive Service;
                  ``(B) the Senior Foreign Service;
                  ``(C) the Defense Intelligence Senior 
                Executive Service;
                  ``(D) the Senior Cryptologic Executive 
                Service; or
                  ``(E) the Federal Bureau of Investigation and 
                Drug Enforcement Administration Senior 
                Executive Service.
          ``(2) For purposes of applying any limitation on 
        accumulation under this section with respect to any 
        annual leave described in paragraph (1)--
                  ``(A) `30 days' in subsection (a) shall be 
                deemed to read `90 days'; and
                  ``(B) `45 days' in subsection (b) shall be 
                deemed to read `90 days'.''.
    (b) Use of Excess Leave.--Notwithstanding the amendment 
made by subsection (a), in the case of an employee who, on the 
effective date of subsection (a), is subject to subsection (f) 
of section 6304 of title 5, United States Code, and who has to 
such employee's credit annual leave in excess of the maximum 
accumulation otherwise permitted by subsection (a) or (b) of 
section 6304 (determined applying the amendment made by 
subsection (a)), such excess annual leave shall remain to the 
credit of the employee and be subject to reduction, in the same 
manner as provided in subsection (c) of section 6304.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

    Sec. 301. Authority To Increase Efficiency in Reporting to 
Congress.--(a) Purpose.--The purpose of this title is to 
improve the efficiency of executive branch performance in 
implementing statutory requirements for reports to Congress and 
committees of Congress such as the elimination or consolidation 
of duplicative or obsolete reporting requirements and 
adjustments to deadlines that shall provide for more efficient 
workload distribution or improve the quality of reports.
    (b) Authority of the Director.--The Director of the Office 
of Management and Budget may publish annually in the budget 
submitted by the President to the Congress, recommendations for 
consolidation, elimination, or adjustments in frequency and due 
dates of statutorily required periodic reports to the Congress 
or committees of Congress. For each recommendation, the 
Director shall provide an individualized statement of the 
reasons that support the recommendation. In addition, for each 
report for which a recommendation is made, the Director shall 
state with specificity the exact consolidation, elimination, or 
adjustment in frequency or due date that is recommended.
    (c) Recommendations.--The Director's recommendations shall 
be consistent with the purpose stated in subsection (a).
    (d) Consultation.--Before the publication of the 
recommendations under subsection (b), the Director or his 
designee shall consult with the appropriate congressional 
committees concerning the recommendations.

                     TITLE IV--FINANCIAL MANAGEMENT

    Sec. 401. Short Title.--This title may be cited as the 
``Federal Financial Management Act of 1994''.
    Sec. 402. Electronic Payments.--(a) In General.--Section 
3332 of title 31, United States Code, is amended to read as 
follows:

``Sec. 3332. Required direct deposit.

    ``(a)(1) Notwithstanding any other provision of law, all 
Federal wage, salary, and retirement payments shall be paid to 
recipients of such payments by electronic funds transfer, 
unless another method has been determined by the Secretary of 
the Treasury to be appropriate.
    ``(2) Each recipient of Federal wage, salary, or retirement 
payments shall designate one or more financial institutions or 
other authorized payment agents and provide the payment 
certifying or authorizing agency information necessary for the 
recipient to receive electronic funds transfer payments through 
each institution so designated.
    ``(b)(1) The head of each agency shall waive the 
requirements of subsection (a) of this section for a recipient 
of Federal wage, salary, or retirement payments authorized or 
certified by the agency upon written request by such recipient.
    ``(2) Federal wage, salary, or retirement payments shall be 
paid to any recipient granted a waiver under paragraph (1) of 
this subsection by any method determined appropriate by the 
Secretary of the Treasury.
    ``(c)(1) The Secretary of the Treasury may waive the 
requirements of subsection (a) of this section for any group of 
recipients upon request by the head of an agency under 
standards prescribed by the Secretary of the Treasury.
    ``(2) Federal wage, salary, or retirement payments shall be 
paid to any member of a group granted a waiver under paragraph 
(1) of this subsection by any method determined appropriate by 
the Secretary of the Treasury.
    ``(d) This section shall apply only to recipients of 
Federal wage or salary payments who begin to receive such 
payments on or after January 1, 1995, and recipients of Federal 
retirement payments who begin to receive such payments on or 
after January 1, 1995.
    ``(e) The crediting of the amount of a payment to the 
appropriate account on the books of a financial institution or 
other authorized payment agent designated by a payment 
recipient under this section shall constitute a full 
acquittance to the United States for the amount of the 
payment.''.
    (b) Technical and Conforming Amendment.--The table of 
sections for chapter 33 of title 31, United States Code, is 
amended by amending the item for section 3332 to read:

``3332. Required direct deposit.''.

    Sec. 403. Franchise Fund Pilot Programs.--(a) 
Establishment.--There is authorized to be established on a 
pilot program basis in each of six executive agencies a 
franchise fund. The Director of the Office of Management and 
Budget, after consultation with the chairman and ranking 
members of the Committees on Appropriations and Governmental 
Affairs of the Senate, and the Committees on Appropriations and 
Government Operations of the House of Representatives, shall 
designate the agencies.
    (b) Uses.--Each such fund may provide, consistent with 
guidelines established by the Director of the Office of 
Management and Budget, such common administrative support 
services to the agency and to other agencies as the head of 
such agency, with the concurrence of the Director, determines 
can be provided more efficiently through such a fund than by 
other means. To provide such services, each such fund is 
authorized to acquire the capital equipment, automated data 
processing systems, and financial management and management 
information systems needed. Services shall be provided by such 
funds on a competitive basis.
    (c) Funding.--(1) There are authorized to be appropriated 
to the franchise fund of each agency designated under 
subsection (a) such funds as are necessary to carry out the 
purposes of the fund, to remain available until expended. To 
the extent that unexpended balances remain available in other 
accounts for the purposes to be carried out by the fund, the 
head of the agency may transfer such balances to the fund.
    (2) Fees for services shall be established by the head of 
the agency at a level to cover the total estimated costs of 
providing such services. Such fees shall be deposited in the 
agency's fund to remain available until expended, and may be 
used to carry out the purposes of the fund.
    (3) Existing inventories, including inventories on order, 
equipment, and other assets or liabilities pertaining to the 
purposes of the fund may be transferred to the fund.
    (d) Report on Pilot Programs.--Within 6 months after the 
end of fiscal year 1997, the Director of the Office of 
Management and Budget shall forward a report on the results of 
the pilot programs to the Committees on Appropriations of the 
Senate and of the House of Representatives, and to the 
Committee on Governmental Affairs of the Senate and the 
Committee on Government Operations of the House of 
Representatives. The report shall contain the financial and 
program performance results of the pilot programs, including 
recommendations for--
          (1) the structure of the fund;
          (2) the composition of the funding mechanism;
          (3) the capacity of the fund to promote competition; 
        and
          (4) the desirability of extending the application and 
        implementation of franchise funds to other Federal 
        agencies.
    (e) Procurement.--Nothing in this section shall be 
construed as relieving any agency of any duty under applicable 
procurement laws.
    (f) Termination.--The provisions of this section shall 
expire on October 1, 1999.
    Sec. 404. Simplification of Management Reporting Process.--
(a) In General.--To improve the efficiency of executive branch 
performance in implementing statutory requirements for 
financial management reporting to the Congress and its 
committees, the Director of the Office of Management and Budget 
may adjust the frequency and due dates of or consolidate any 
statutorily required reports of agencies to the Office of 
Management and Budget or the President and of agencies or the 
Office of Management and Budget to the Congress under any laws 
for which the Office of Management and Budget has financial 
management responsibility, including--
          (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of 
        title 31, United States Code;
          (2) the Federal Civil Penalties Inflation Adjustment 
        Act of 1990 (28 U.S.C. 2461 note; Public Law 101-410; 
        104 Stat. 890).
    (b) Application.--The authority provided in subsection (a) 
shall apply only to reports of agencies to the Office of 
Management and Budget or the President and of agencies or the 
Office of Management and Budget to the Congress required by 
statute to be submitted between January 1, 1995, and September 
30, 1997.
    (c) Adjustments in Reporting.--The Director may consolidate 
or adjust the frequency and due dates of any statutorily 
required reports under subsections (a) and (b) only after--
          (1) consultation with the Chairman of the Senate 
        Committee on Governmental Affairs and the Chairman of 
        the House of Representatives Committee on Government 
        Operations; and
          (2) written notification to the Congress, no later 
        than February 8 of each fiscal year covered under 
        subsection (b) for those reports required to be 
        submitted during that fiscal year.
    Sec. 405. Annual Financial Reports.--(a) Financial 
Statements.--Section 3515 of title 31, United States Code, is 
amended to read as follows:

``Sec. 3515. Financial statements of agencies.

    ``(a) Not later than March 1 of 1997 and each year 
thereafter, the head of each executive agency identified in 
section 901(b) of this title shall prepare and submit to the 
Director of the Office of Management and Budget an audited 
financial statement for the preceding fiscal year, covering all 
accounts and associated activities of each office, bureau, and 
activity of the agency.
    ``(b) Each audited financial statement of an executive 
agency under this section shall reflect--
          ``(1) the overall financial position of the offices, 
        bureaus, and activities covered by the statement, 
        including assets and liabilities thereof; and
          ``(2) results of operations of those offices, 
        bureaus, and activities.
    ``(c) The Director of the Office of Management and Budget 
shall identify components of executive agencies that shall be 
required to have audited financial statements meeting the 
requirements of subsection (b).
    ``(d) The Director of the Office of Management and Budget 
shall prescribe the form and content of the financial 
statements of executive agencies under this section, consistent 
with applicable accounting and financial reporting principles, 
standards, and requirements.
    ``(e) The Director of the Office of Management and Budget 
may waive the application of all or part of subsection (a) for 
financial statements required for fiscal years 1996 and 1997.
    ``(f) Not later than March 1 of 1995 and 1996, the head of 
each executive agency identified in section 901(b) of this 
title and designated by the Director of the Office of 
Management and Budget shall prepare and submit to the Director 
of the Office of Management and Budget an audited financial 
statement for the preceding fiscal year, covering all accounts 
and associated activities of each office, bureau, and activity 
of the agency.
    ``(g) Not later than March 31 of 1995 and 1996, for 
executive agencies not designated by the Director of the Office 
of Management and Budget under subsection (f), the head of each 
executive agency identified in section 901(b) of this title 
shall prepare and submit to the Director of the Office of 
Management and Budget a financial statement for the preceding 
fiscal year, covering--
          ``(1) each revolving fund and trust fund of the 
        agency; and
          ``(2) to the extent practicable, the accounts of each 
        office, bureau, and activity of the agency which 
        performed substantial commercial functions during the 
        preceding fiscal year.
    ``(h) For purposes of subsection (g), the term `commercial 
functions' includes buying and leasing of real estate, 
providing insurance, making loans and loan guarantees, and 
other credit programs and any activity involving the provision 
of a service or thing for which a fee, royalty, rent, or other 
charge is imposed by an agency for services and things of value 
it provides.''.
    (b) Audits by Agencies.--Subsection 3521(f) of title 31, 
United States Code, is amended to read as follows:
    ``(f)(1) For each audited financial statement required 
under subsections (a) and (f) of section 3515 of this title, 
the person who audits the statement for purpose of subsection 
(e) of this section shall submit a report on the audit to the 
head of the agency. A report under this subsection shall be 
prepared in accordance with generally accepted government 
auditing standards.
    ``(2) Not later than June 30 following the fiscal year for 
which a financial statement is submitted under subsection (g) 
of section 3515 of this title, the person who audits the 
statement for purpose of subsection (e) of this section shall 
submit a report on the audit to the head of the agency. A 
report under this subsection shall be prepared in accordance 
with generally accepted government auditing standards.''.
    (c) Governmentwide Financial Statement.--Section 331 of 
title 31, United States Code, is amended by adding the 
following new subsection:
    ``(e)(1) Not later than March 31 of 1998 and each year 
thereafter, the Secretary of the Treasury, in coordination with 
the Director of the Office of Management and Budget, shall 
annually prepare and submit to the President and the Congress 
an audited financial statement for the preceding fiscal year, 
covering all accounts and associated activities of the 
executive branch of the United States Government. The financial 
statement shall reflect the overall financial position, 
including assets and liabilities, and results of operations of 
the executive branch of the United States Government, and shall 
be prepared in accordance with the form and content 
requirements set forth by the Director of the Office of 
Management and Budget.
    ``(2) The Comptroller General of the United States shall 
audit the financial statement required by this section.''.
    October 13, 1994*
---------------------------------------------------------------------------
    *This Act has not been amended as of December 31, 1995.
      
======================================================================


                               APPENDIX I

                          A BRIEF EXPLANATION

                                 OF THE

                           UNITED STATES CODE

======================================================================

      
                         The United States Code

    The United States Code (Code or U.S.C.) is divided into 50 
major parts, called titles, by subject matter. The names of the 
50 titles appear at the end of this appendix. Each title is 
subdivided into several categories and the most commonly used 
categories are chapters and sections. The chapters in each 
title are identified by subject matter and sequential numbers. 
However, the numbers in the series may be omitted. Each 
sequential section within a chapter contains the chapter number 
followed by the sequential number of the section.\17\
---------------------------------------------------------------------------
    \17\ For example, Title 31, ``Money and Finance,'' Chapter 35, 
``Accounting and Collection,'' section 3511, ``Prescribing Accounting 
Requirements and Developing Accounting Systems'' is generally referred 
to or cited as ``31 U.S.C. 3511.''
---------------------------------------------------------------------------
             sections of the code contained in this report
    This report consists primarily of selected provisions from 
Title 31, ``Money and Finance,'' since this title contains most 
of the laws related to financial management. The provisions 
cover, among other subjects, the roles and responsibilities of 
governmental agencies involved in financial management 
(including agency Chief Financial Officers); the congressional 
fiscal and budget process; appropriations and appropriation 
accounting; the public debt; depositing, keeping and paying 
money; accounting and collection; claims process; prompt 
payment; and requirements for the single audit.
    This report also includes selected sections from eight 
other titles of the Code in addition to Title 31. Selected 
provisions of these other titles provide further requirements 
of congressional budget and fiscal operations and governmental 
functions and processes relating to financial management. The 
codified laws included in this report were taken from the Code 
as of December 31, 1995. These eight titles are:
          Title 1, ``General Provisions,''
          Title 2, ``The Congress,''
          Title 5, ``Government Organization and Employees,''
          Title 15, ``Commerce and Trade,''
          Title 39, ``Postal Service,''
          Title 40, ``Public Buildings, Property and Works,''
          Title 41, ``Public Contracts,'' and
          Title 44, ``Public Printing and Documents.''
                      acts included in this report
    This report also includes the recently enacted, but not yet 
codified, Debt Collection Improvement Act of 1996 and the 
Single Audit Act Amendments of 1996, because of their direct 
relationship to financial management. Further, 11 major laws 
dealing with financial management, although included in the 
provisions of the Code in this report, also appear as 
originally enacted to provide users a historical perspective.
                        statutes and public laws
    Officially enacted laws are bound in volumes (referred to 
as ``Statutes at Large'') in chronological order of enactment. 
When citing a particular law, the volume number followed by the 
designation of ``Stat.'' (statute), followed by the page number 
of the volume is used. For example, the Chief Financial 
Officers Act of 1990, would be cited as ``104 Stat. 2838,'' 
meaning the 104th volume of the statutes at large, page 2,838.
    Beginning in 1957, laws have been assigned Public law 
numbers. The public law number contains two numbers separated 
by a dash. The first number indicates the Congress and the 
second number indicates the law number. For example, the Chief 
Financial Officers Act of 1990, is Public Law 101-576; the 
first number indicating the 101st Congress and the second the 
law number.
    Prior to 1957, statute citations usually included a chapter 
number. For example, the Budget and Accounting Act of 1921, is 
cited as ``Chapter 18, 42 Stat. 20.''
                    Titles of the United States Code

1. General Provisions.
2. The Congress.
3. The President.
4. Flag and Seal, Seat of Government,
    and the States.
5. Government Organization and
    Employees
6. Surety Bonds (See Title 31, Money
    and Finance).
7. Agriculture.
8. Aliens and Nationality.
9. Arbitration.
10. Armed Forces.
11. Bankruptcy.
12. Banks and Banking.
13. Census.
14. Coast Guard.
15. Commerce and Trade.
16. Conservation.
17. Copyrights.
18. Crimes and Criminal Procedure.
19. Customs Duties.
20. Education.
21. Food and Drugs.
22. Foreign Relations and Intercourse.
23. Highways.
24. Hospitals and Asylums.
25. Indians.
26. Internal Revenue Code.
27. Intoxicating Liquors.
28. Judiciary and Judicial Procedure.
29. Labor.
30. Minerals and Mining.
31. Money and Finance
32. National Guard.
33. Navigation and Navigable Waters.
34. Navy (See Title 10, Armed Forces).
35. Patents.
36. Patriotic Societies and Observances.
37. Pay and Allowances of the
    Uniformed Services.
38. Veterans' Benefits.
39. Postal Service.
40. Public Buildings, Property, and
    Works.
41. Public Contracts.
42. The Public Health and Welfare.
43. Public Lands.
44. Public Printing and Documents.
45. Railroads.
46. Shipping.
47. Telegraphs, Telephones, and
    Radiotelegraphs.
48. Territories and Insular Possessions.
49. Transportation.
50. War and National Defense.
      
======================================================================


                              APPENDIX II

                          A BRIEF EXPLANATION

                                 OF THE

                      CODE OF FEDERAL REGULATIONS

======================================================================

      
                    The Code of Federal Regulations

    The Code of Federal Regulations (C.F.R.) is a codification 
of the general and permanent rules issued mostly by executive 
departments and agencies of the federal government. The C.F.R., 
published by the Director of the Federal Register, is a special 
edition of the Federal Register containing a compilation of 
federal regulations.
    The C.F.R. is divided into 50 parts called titles (48 
active, two reserved). The titles are listed on the following 
page. They represent broad areas subject to federal 
regulation.\18\ Each title is divided into chapters which 
usually bear the name of the issuing agency. Each chapter is 
further subdivided into parts covering specific regulatory 
areas. The parts are numbered sequentially throughout the 
title.\19\
---------------------------------------------------------------------------
    \18\ Although the C.F.R. contains 50 titles, as does the Code, it 
is organized differently from the Code. Consequently, requirements 
related to a specific subject matter covered in one section of the Code 
may appear in several titles of the C.F.R.
    \19\ The C.F.R. citation contains the number of the title followed 
by the abbreviation ``C.F.R.,'' followed by the part number; such as 31 
C.F.R. 333.
---------------------------------------------------------------------------
    The C.F.R. and the individual issues of the Federal 
Register (after the latest revision of the C.F.R.) provide the 
latest version of any given rule. Each title of the C.F.R., 
which is contained in one or two separate volumes, is revised 
at least once each calendar year.
    The C.F.R. citations in this report are taken from the 
``C.F.R. Index and Finding Aids,'' revised as of January 1, 
1995. The C.F.R. citations, where applicable, appear at the end 
of each chapter of the United States Code included in this 
report, with the section of the Code listed sequentially 
followed by the applicable C.F.R. citation(s). Of the 48 active 
titles of the C.F.R., 42 titles are cited in this report.
               Titles of the Code of Federal Regulations

1. General Provisions.
2. (Reserved).
3. The President.
4. Accounts.
5. Administrative Personnel.
6. (Reserved).
7. Agriculture.
8. Aliens and Nationality.
9. Animals and Animal Products.
10. Energy.
11. Federal Elections.
12. Banks and Banking.
13. Business Credit and Assistance.
14. Aeronautics and Space.
15. Commerce and Foreign Trade.
16. Commercial Practices.
17. Commodity and Securities
    Exchanges.
18. Conservation of Power and Water
    Resources.
19. Customs Duties.
20. Employees' Benefits.
21. Food and Drugs.
22. Foreign Relations.
23. Highways.
24. Housing and Urban
    Development.
25. Indians.
26. Internal Revenue.
27. Alcohol, Tobacco Products and
    Firearms.
28. Judicial Administration.
29. Labor.
30. Mineral Resources.
31. Money and Finance: Treasury.
32. National Defense.
33. Navigation and Navigable Waters.
34. Education.
35. Panama Canal.
36. Parks, Forests, and Public Property.
37. Patents, Trademarks, and
    Copyrights.
38. Pensions, Bonuses, and Veterans'
    Relief.
39. Postal Service.
40. Protection of Environment.
41. Public Contracts and Property
    Management.
42. Public Health.
43. Public Lands: Interior.
44. Emergency Management Assistance.
45. Public Welfare.
46. Shipping.
47. Telecommunication.
48. Federal Acquisition Regulations
    System.
49. Transportation.
50. Wildlife and Fisheries.
      
======================================================================


                              APPENDIX III

                     FINANCIAL MANAGEMENT ISSUANCES

                                 OF THE

                       GENERAL ACCOUNTING OFFICE

======================================================================

      
                     The General Accounting Office

    The General Accounting Office (GAO) was established by the 
Budget and Accounting Act of 1921 (31 U.S.C. 702) to 
independently audit Government agencies. The Office is under 
the control and direction of the Comptroller General of the 
United States who is appointed by the President with the advice 
and consent of the Senate for a term of 15 years. GAO is an 
investigative arm of the Congress and is charged with examining 
all matters relating to the receipt and disbursement of public 
funds. GAO's primary role is to ensure that the Congress has 
available for its use current, accurate, and complete financial 
management data. GAO also prescribes accounting principles and 
standards for the executive branch; advises other federal 
agencies on fiscal and related policies and procedures; and 
prescribes standards for auditing and evaluating Government 
programs.
    This appendix is divided into two parts. The first contains 
a description of GAO's issuances and the second contains a 
cross-index listing of the sections of the Code in sequential 
order followed by the related GAO issuance.
                        Description of Issuances
    The primary sources of requirements and guidelines issued 
by GAO related to financial management are contained in the 
Policy and Procedures Manual and Government Auditing Standards 
as explained below.
                             Policy Manual
    The GAO Policy and Procedures Manual for Guidance of 
Federal Agencies contains the requirements agencies are to 
follow in accounting, internal controls, and related financial 
management subjects. The manual is divided into eight major 
parts called titles. The titles applicable to the Code in this 
report on financial management follow.
    Title 2, ``Accounting.'' This title contains the 
accounting, accounting system, and internal control principles, 
standards, and related requirements.

                                                                        
                                                                        
Appendix I, ``Principles and Standards''..  31 U.S.C. 3511.             
                                            31 U.S.C. 3512(c).          
                                            31 U.S.C. 3512(d).          
Appendix II, ``Internal Control             31 U.S.C. 3511.             
 Standards''.                                                           
                                            31 U.S.C. 3512(b).          
Appendix III, ``Accounting Systems          31 U.S.C. 3511.             
 Standards''.                                                           

    Title 6, ``Pay, Leave, and Allowances.'' This title 
contains the internal control and related requirements 
pertaining to time and attendance and payroll. (31 U.S.C. 3511)
    Title 7, ``Fiscal Procedures.'' This title contains 
internal controls and related requirements pertaining to 
receipt and payment of funds and recording, using, and 
reporting budget authority. (31 U.S.C. 3511)
    Copies of the GAO Policy and Procedures Manual can be 
obtained in Room 1100, 700 4th Street NW, U.S. General 
Accounting Office, Washington, DC 20548, (202) 512-6000.
                           Auditing Standards
    The Government Auditing Standards (also called the ``Yellow 
Book'') contains the standards for audits of government 
organizations, programs, activities, and functions, and of 
government assistance received by contractors, nonprofit 
organizations, and other nongovernment organizations. These 
standards, often referred to as generally accepted government 
auditing standards (GAGAS), are to be followed by auditors and 
audit organizations when required by law, regulation, 
agreement, or policy. The standards pertain to auditors' 
professional qualifications, the quality of the audit effort, 
and the characteristics of professional and meaningful audit 
reports.

5 U.S.C. App. 3, Section 4; 31 U.S.C. 713; 31 U.S.C. 714; 31 
U.S.C. 3523; 31 U.S.C. 7501; 31 U.S.C. 7503; and 31 U.S.C. 
7505.

    Copies of the Government Auditing Standards: 1994 Revision, 
(GAO/OCG-94-4) is for sale by the Superintendent of Documents, 
U.S. Government Printing Office, Washington, DC 20401. The 
stock number is 020-000-00-265-4.
   CROSS-INDEX OF THE SECTIONS OF THE CODE FOLLOWED BY GAO ISSUANCES

                                                                        
                                                                        
5 U.S.C. App. 3, Section 3................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 713.............................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 714.............................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 3511............................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             I.                         
31 U.S.C. 3511............................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             II.                        
31 U.S.C. 3511............................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             III.                       
31 U.S.C. 3511............................  Policy and Procedures       
                                             Manual, Title 6.           
31 U.S.C. 3511............................  Policy and Procedures       
                                             Manual, Title 7.           
31 U.S.C. 3512(b).........................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             II.                        
31 U.S.C. 3512(c).........................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             I.                         
31 U.S.C. 3512(d).........................  Policy and Procedures       
                                             Manual, Title 2, Appendix  
                                             I.                         
31 U.S.C. 3523............................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 7501............................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 7503............................  Government Auditing         
                                             Standards: 1994 Revision.  
31 U.S.C. 7505............................  Government Auditing         
                                             Standards: 1994 Revision.  

      
======================================================================


                              APPENDIX IV

                     FINANCIAL MANAGEMENT ISSUANCES

                                 OF THE

                    OFFICE OF MANAGEMENT AND BUDGET

======================================================================

      
                  THE OFFICE OF MANAGEMENT AND BUDGET

    The Office of Management and Budget (OMB), formerly the 
Bureau of the Budget, was established in the Executive Office 
of the President pursuant to Reorganization Plan No. 1 of 1939 
(5 U.S.C. app.). The Office is headed by the Director, who is 
appointed by the President and confirmed by the Senate. OMB 
evaluates, formulates, and coordinates management procedures 
and program objectives within and among federal departments and 
agencies. The Office's primary fiscal responsibilities include: 
assisting the President in preparing the Budget and formulating 
the federal government's fiscal program; supervising the 
control of the budgetary administration of the Executive 
Branch; and establishing and overseeing the implementation of 
financial management policies and requirements for the federal 
government.
    This appendix is divided into two parts. The first contains 
a description of the OMB's issuances pertaining to financial 
management requirements and the second contains a listing of 
the Code's section with the related OMB issuance.
                        DESCRIPTION OF ISSUANCES
    The primary issuances of OMB related to financial 
management requirements are its Circulars and Bulletins.
    Circulars, identified by the letter ``A'' and containing a 
sequential number in the order of issuance, are used when the 
nature of the subject matter is of continuing use. Between 1952 
and December 31, 1995, OMB issued 135 Circulars. Of the 135, 98 
have been superseded or rescinded, leaving 37 still applicable. 
Of the 37, 18 pertain to the financial management requirements 
relating to the sections of the Code contained in this report. 
The applicable 18 are listed below.

------------------------------------------------------------------------
             Number                    Contents           U.S.C. Cite   
------------------------------------------------------------------------
A-11............................  Preparation and     5 U.S.C. 306, 31  
                                   submission of       U.S.C. 1105, 31  
                                   budget estimates    U.S.C. 1115, 31  
                                   with emphasis on    U.S.C. 1116, 31  
                                   the preparation     U.S.C. 1117, 31  
                                   of program          U.S.C. 1118, 31  
                                   performance         U.S.C. 1119, 31  
                                   information         U.S.C. 9703, 31  
                                   Revised June 1995.  U.S.C. 9704, 39  
                                                       U.S.C. 2801, 39  
                                                       U.S.C. 2802, 39  
                                                       U.S.C. 2803.     
A-21............................  Cost Principles     31 U.S.C. 503, 41 
                                   for Educational     U.S.C. 422.      
                                   Institutions.                        
                                   Revised 5-8-96.                      
A-25............................  User Charges.       31 U.S.C. 1111, 31
                                   Guidelines for      U.S.C. 9701.     
                                   Federal agencies                     
                                   for assessing                        
                                   fees for                             
                                   Government                           
                                   Services and for                     
                                   the sale and use                     
                                   of government                        
                                   property and                         
                                   resources.                           
                                   Revised 7-8-93.                      
A-34............................  Instructions on     31 U.S.C. 1321, 31
                                   Budget Execution,   U.S.C. 1322, 31  
                                   monitoring          U.S.C. 1323, 31  
                                   Federal Outlays,    U.S.C. 1324, 31  
                                   obtaining           U.S.C. 1511, 31  
                                   exemptions from     U.S.C. 1512, 31  
                                   GAO access to       U.S.C. 1513, 31  
                                   records,            U.S.C. 1514, 31  
                                   reporting           U.S.C. 1515, 31  
                                   requirements for    U.S.C. 1516, 31  
                                   unvouchered         U.S.C. 1517, 31  
                                   expenditures,       U.S.C. 1518, 31  
                                   closing accounts,   U.S.C. 1519, 31  
                                   and monitoring      U.S.C. 1551, 31  
                                   Federal             U.S.C. 1552, 31  
                                   employment.         U.S.C. 1553, 31  
                                   Revised 10-18-94.   U.S.C. 1554, 31  
                                                       U.S.C. 1555, 31  
                                                       U.S.C. 1556, 31  
                                                       U.S.C. 1557, 31  
                                                       U.S.C. 3524.     
A-50............................  Audit follow-up.    31 U.S.C. 720, 31 
                                   Policies and        U.S.C. 3302, 31  
                                   procedures for      U.S.C. 3711, 31  
                                   use by executive    U.S.C. 3716, 31  
                                   agencies for        U.S.C. 3717, 31  
                                   following up on     U.S.C. 3728.     
                                   audit reports                        
                                   issued by, GAO,                      
                                   OIG community,                       
                                   and other                            
                                   executive branch                     
                                   audit                                
                                   organizations.                       
                                   Revised 9-29-82.                     
A-73............................  Policies to be      31 U.S.C. 503, 31 
                                   Followed in the     U.S.C. 1111.     
                                   Audit of Federal                     
                                   Operations and                       
                                   Programs. Revised                    
                                   6-20-83.                             
A-87............................  Principles and      31 U.S.C. 503, 31 
                                   Standards for       U.S.C. 1112.     
                                   determining costs                    
                                   for Federal                          
                                   awards carried                       
                                   out through                          
                                   grants, cost                         
                                   reimbursement                        
                                   contracts, and                       
                                   other agreements                     
                                   with State,                          
                                   Local, and Indian                    
                                   Tribal                               
                                   Governments.                         
                                   Revised 5-4-95.                      
A-94............................  Guidelines and      31 U.S.C. 1111.   
                                   Discount Rates                       
                                   for Benefit-Cost                     
                                   Analysis of                          
                                   Federal Programs.                    
                                   Issued 2-25-93.                      
A-102...........................  Establishment of    31 U.S.C. 503.    
                                   consistency and                      
                                   uniformity among                     
                                   Federal agencies                     
                                   in the management                    
                                   of grants and                        
                                   cooperative                          
                                   agreements with                      
                                   state, local, and                    
                                   Federally                            
                                   recognized Indian                    
                                   tribal                               
                                   governments.                         
                                   Revised 10-7-94.                     
A-110...........................  Establishment of    31 U.S.C. 503, 31 
                                   uniform             U.S.C. 1111.     
                                   administrative                       
                                   requirements                         
                                   among Federal                        
                                   agencies in the                      
                                   administration of                    
                                   grants to and                        
                                   agreements with                      
                                   institutions of                      
                                   higher education,                    
                                   hospitals, and                       
                                   other non-profit                     
                                   organizations.                       
                                   Revised 11-19-93.                    
A-122...........................  Establishment of    31 U.S.C. 1111.   
                                   cost principles                      
                                   for determining                      
                                   costs of Federal                     
                                   grants,                              
                                   contracts, and                       
                                   other agreements                     
                                   with non-profit                      
                                   organizations.                       
                                   Revised 9-29-95.                     
A-123...........................  Guidance to         31 U.S.C. 3512.   
                                   Federal managers                     
                                   on improving the                     
                                   accountability                       
                                   and effectiveness                    
                                   of Federal                           
                                   programs and                         
                                   operations by                        
                                   establishing,                        
                                   assessing,                           
                                   correcting, and                      
                                   reporting on                         
                                   management                           
                                   controls                             
                                   (Internal Control                    
                                   Systems). Revised                    
                                   6-21-95.                             
A-125...........................  Prompt Payments.    31 U.S.C. 3903a.  
                                   Prescribed                           
                                   policies and                         
                                   procedures in                        
                                   paying for                           
                                   property and                         
                                   services acquired                    
                                   under Federal                        
                                   contracts                            
                                   pursuant to the                      
                                   Prompt Payment                       
                                   Act of 1982, (as                     
                                   amended), and for                    
                                   entitlement                          
                                   payments under                       
                                   the Agricultural                     
                                   Act of 1949.                         
                                   Revised 12-12-89.                    
A-127...........................  Financial           31 U.S.C. 1105, 31
                                   Management          U.S.C. 1113, 31  
                                   Systems.            U.S.C. 3512.     
                                   Prescribed                           
                                   policies and                         
                                   standards for                        
                                   developing,                          
                                   operating,                           
                                   evaluating, and                      
                                   reporting on                         
                                   financial                            
                                   management                           
                                   systems. Revised                     
                                   7-23-93.                             
A-128...........................  Audits of State     31 U.S.C. 7505.   
                                   and Local                            
                                   Governments.                         
                                   Audit                                
                                   requirements for                     
                                   State and local                      
                                   governments that                     
                                   receive Federal                      
                                   aid and                              
                                   definition of                        
                                   Federal                              
                                   responsibilities                     
                                   for implementing                     
                                   and monitoring                       
                                   audits. Issued 4-                    
                                   12-85.                               
A-129...........................  Policies for        2 U.S.C. 661, 31  
                                   Federal credit      U.S.C. 902(a), 31
                                   programs and non-   U.S.C. 1105a, 31 
                                   tax receivables.    U.S.C. 1108, 31  
                                   Prescribed          U.S.C. 3719, 31  
                                   policies and        U.S.C. 3720.     
                                   procedures for                       
                                   justifying,                          
                                   designing,                           
                                   budgeting, and                       
                                   managing Federal                     
                                   credit programs.                     
                                   Revised 1-11-93.                     
A-133...........................  Audits of           31 U.S.C. 1104, 31
                                   institutions of     U.S.C. 1111.     
                                   higher education                     
                                   and other non-                       
                                   profit                               
                                   institutions.                        
                                   Definition of                        
                                   Federal                              
                                   responsibilities                     
                                   for implementing                     
                                   and monitoring                       
                                   audit                                
                                   requirements for                     
                                   institutions of                      
                                   higher education                     
                                   and other                            
                                   nonprofit                            
                                   institutions                         
                                   receiving Federal                    
                                   awards. Issued 3-                    
                                   8-90.                                
A-134...........................  Financial           31 U.S.C. 3511.   
                                   Accounting                           
                                   Principles and                       
                                   Standards.                           
                                   Establishment of                     
                                   policies and                         
                                   procedures for                       
                                   approving and                        
                                   publishing                           
                                   financial                            
                                   accounting                           
                                   principles,                          
                                   standards, and                       
                                   interpretations.                     
                                   Issued 5-20-93.                      
------------------------------------------------------------------------

    Bulletins, numbered in chronological order by fiscal year, 
are used when the nature of the subject matter requires only a 
single action by agencies or is transitory in nature. The 
following four Bulletins in effect as of December 31, 1995 are 
applicable to financial management requirements:

------------------------------------------------------------------------
             Number                    Contents           U.S.C. Cite   
------------------------------------------------------------------------
93-06...........................  Audit Requirements  31 U.S.C. 3512, 31
                                   for Federal         U.S.C. 3515.     
                                   Financial                            
                                   Statements.                          
                                   Issued 1-8-93.                       
93-18...........................  Audited Financial   31 U.S.C.1104e, 31
                                   Statements.         U.S.C.1105a, 31  
                                   Required pilot      U.S.C. 3515.     
                                   agencies defined                     
                                   by the 1990 CFO                      
                                   Act (P.L. 101-                       
                                   576) to submit                       
                                   audited financial                    
                                   statements to OMB                    
                                   and the Congress                     
                                   through 1996, and                    
                                   accelerated the                      
                                   submission date                      
                                   of audited                           
                                   financial                            
                                   statements                           
                                   required by the                      
                                   CFO Act. Issued 6-                   
                                   25-93.                               
94-01...........................  Form and Content    31 U.S.C. 3515d.  
                                   of Agency                            
                                   Financial                            
                                   Statements (for                      
                                   financial                            
                                   statements                           
                                   beginning with                       
                                   the year ending                      
                                   September 30,                        
                                   1993). Issued 11-                    
                                   16-93.                               
94-09...........................  Payments by         31 U.S.C. 503, 31 
                                   Electronic Funds    U.S.C. 1111, 31  
                                   Transfer. Issued    U.S.C. 3335.     
                                   8-15-94.                             
------------------------------------------------------------------------

    Copies of Circulars and Bulletins can be obtained from: 
Executive Office of the President [Office of Management and 
Budget], Publications Service; 725 17th St. NW, Room 2200; 
Washington, DC 20503; (202) 395-7332.
 CROSS-INDEX OF SECTIONS OF THE CODE IN THIS REPORT OMB CIRCULARS AND 
                               BULLETINS

                                                                        
                                                                        
                                                                        
2 U.S.C. 661......................  Circular A-129.                     
5 U.S.C. 306......................  Circular A-11.                      
31 U.S.C. 503.....................  A-21, A-73, A-87, Circulars A-102, A-
                                     110.                               
31 U.S.C. 716.....................  Circular A-34.                      
31 U.S.C. 720.....................  Circular A-50.                      
31 U.S.C. 902(a)..................  Circular A-129.                     
31 U.S.C. 1104....................  Bulletin 93-18, Circular A-133.     
31 U.S.C. 1105(a).................  Bulletin 93-18, Circular A-129.     
31 U.S.C. 1105....................  Circulars A-11, A-127.              
31 U.S.C. 1108....................  Circular A-129.                     
31 U.S.C. 1111....................  Bulletin 94-09, Circulars A-73, A-  
                                     25, A-94, A 110, A-122, A-133.     
31 U.S.C. 1112....................  Circular A-87.                      
31 U.S.C. 1113....................  Circular A-127.                     
31 U.S.C. 1115....................  Circular A-11.                      
31 U.S.C. 1116....................  Circular A-11.                      
31 U.S.C. 1117....................  Circular A-11.                      
31 U.S.C. 1118....................  Circular A-11.                      
31 U.S.C. 1119....................  Circular A-11.                      
31 U.S.C. 1321....................  Circular A-34.                      
31 U.S.C. 1322....................  Circular A-34.                      
31 U.S.C. 1323....................  Circular A-34.                      
31 U.S.C. 1324....................  Circular A-34.                      
31 U.S.C. 1511....................  Circular A-34.                      
31 U.S.C. 1512....................  Circular A-34.                      
31 U.S.C. 1513....................  Circular A-34.                      
31 U.S.C. 1514....................  Circular A-34.                      
31 U.S.C. 1515....................  Circular A-34.                      
31 U.S.C. 1516....................  Circular A-34.                      
31 U.S.C. 1517....................  Circular A-34.                      
31 U.S.C. 1518....................  Circular A-34.                      
31 U.S.C. 1519....................  Circular A-34.                      
31 U.S.C. 1551....................  Circular A-34.                      
31 U.S.C. 1552....................  Circular A-34.                      
31 U.S.C. 1553....................  Circular A-34.                      
31 U.S.C. 1554....................  Circular A-34.                      
31 U.S.C. 1555....................  Circular A-34.                      
31 U.S.C. 1556....................  Circular A-34.                      
31 U.S.C. 1557....................  Circular A-34.                      
31 U.S.C. 3302....................  Circular A-50.                      
31 U.S.C. 3335....................  Bulletin 94-09.                     
31 U.S.C. 3511....................  Circular A-134.                     
31 U.S.C. 3512....................  Bulletin 93-06, Circulars A-123, A- 
                                     127.                               
31 U.S.C. 3515....................  Bulletins 93-06, 93-18.             
31 U.S.C. 3515(d).................  Bulletin 94-01.                     
31 U.S.C. 3719....................  Circular A-129.                     
31 U.S.C. 3711....................  Circular A-50.                      
31 U.S.C. 3716....................  Circular A-50.                      
31 U.S.C. 3717....................  Circular A-50.                      
31 U.S.C. 3719....................  Circular A-129.                     
31 U.S.C. 3720....................  Circular A-129.                     
31 U.S.C. 3728....................  Circular A-50.                      
31 U.S.C. 3903 (a)................  Circular A-125.                     
31 U.S.C. 7505....................  Circular A-128.                     
31 U.S.C. 9701....................  Circular A-25.                      
31 U.S.C. 9703....................  Circular A-11.                      
31 U.S.C. 9704....................  Circular A-11.                      
39 U.S.C. 2801....................  Circular A-11.                      
39 U.S.C. 2802....................  Circular A-11.                      
39 U.S.C. 2803....................  Circular A-11.                      
41 U.S.C. 422.....................  Circular A-21.                      
                                                                        

      
======================================================================


                               APPENDIX V

                     FINANCIAL MANAGEMENT ISSUANCES

                                 OF THE

                         DEPARTMENT OF TREASURY

======================================================================

      
                     THE DEPARTMENT OF THE TREASURY
    The Department of the Treasury (Treasury) was created by an 
act of September 2, 1789 (31 U.S.C. 301 and 301 note). Many 
subsequent acts have figured in the development of Treasury, 
delegating new duties to its charge and establishing the 
numerous bureaus and divisions that now comprise the Treasury. 
Headed by the Secretary, the Treasury performs four basic 
functions: formulating and recommending economic, financial, 
tax, and fiscal policies; serving as the financial agent for 
the U.S. Government; enforcing the law; and manufacturing coins 
and currency. Its fiscal responsibilities also include managing 
the public debt by improving cash management, debt collection, 
and credit administration on a government wide basis.
    This appendix is divided into two parts. The first contains 
a description of Treasury's issuances pertaining to financial 
management requirements and the second contains a cross-index 
listing of the section of the Code in sequential order followed 
by the related Treasury issuance.
                        description of issuances
    The primary issuance of the Treasury related to financial 
management requirements is the Treasury Financial Manual (TFM). 
The TFM contains six volumes, with only Volume 1 having parts 
applicable to the sections of the Code included in this report. 
Volume 1 includes instructions for financial accounting and 
reporting of all receipts and disbursements of the federal 
government. The volume is divided into six parts, each part 
containing several chapters. The applicable parts and chapters 
of Volume 1 follow.

----------------------------------------------------------------------------------------------------------------
                 Chapter                                   Contents                           U.S.C. Cite       
----------------------------------------------------------------------------------------------------------------
                                    Part 2, Central Accounting and Reporting                                    
1000....................................  Procedures and standard forms agencies are  31 U.S.C. 3513.           
                                           to use in reporting accounting                                       
                                           transactions to Treasury.                                            
1500....................................  Description of accounts related to          31 U.S.C. 3513.           
                                           financial operations to be used by                                   
                                           agencies.                                                            
2000....................................  Non-Expenditure Transactions..............  31 U.S.C. 3513.           
2500....................................  Expenditure Transactions between            31 U.S.C. 1535,           
                                           Appropriation, Fund, and Receipt Accounts. 31 U.S.C. 3536.           
3100....................................  Instructions for Disbursing Officers'       31 U.S.C. 3521.           
                                           Reports.                                                             
3200....................................  Foreign currency accounting and reporting   31 U.S.C. 3513.           
                                           requirements.                                                        
3300....................................  Reports of agencies for which Treasury      31 U.S.C. 3512,           
                                           disburses: Statement of Transactions and   31 U.S.C. 3513.           
                                           supporting documents.                                                
3900....................................  Integration of accounting results.........  31 U.S.C. 3513.           
4000....................................  Federal Agencies' Centralized Trial-        31 U.S.C. 3513a.          
                                           Balance System (FACTS).                                              
4100....................................  Credit and Debt Management Reporting......  31 U.S.C. 3513a.          
4200....................................  Required reports from agencies and          31 U.S.C. 3513.           
                                           government corporations on unexpended                                
                                           balances of appropriations and funds.                                
                                           (Year-End Closing Statements).                                       
4300....................................  Reporting requirements for accounts         31 U.S.C. 3513.           
                                           invested in Treasury Securities.                                     
4500....................................  Required reports on grants, credits, and    31 U.S.C. 3513.           
                                           contingent liabilities involving                                     
                                           foreigners.                                                          
4600....................................  Reporting requirements for Direct Loan and  31 U.S.C. 3513a.          
                                           Loan Guarantee programs.                                             
                                 Part 3, Payrolls, Deductions, and Withholdings                                 
2000....................................  Payroll vouchers. Procedures to be          31 U.S.C. 3513.           
                                           followed and standard forms to be used in                            
                                           preparing payrolls for the executive                                 
                                           branch civilian employees.                                           
                                               Part 4, Disbursing                                               
1000....................................  Prescribed procedures and forms governing   31 U.S.C. 3321.           
                                           certifying and disbursing transactions.                              
1100....................................  Delegations and designations of authority   31 U.S.C. 3321,           
                                           for disbursing functions.                  31 U.S.C. 3325.           
2000....................................  Check issue disbursing procedures.........  31 U.S.C. 3511,           
                                                                                      31 U.S.C. 3513.           
2500....................................  Procedures governing Treasury Financial     31 U.S.C. 3511,           
                                           Communications Systems (TFCS) payments.    31 U.S.C. 3513.           
3000....................................  Procedures covering imprest fund            31 U.S.C. 3321.           
                                           disbursing activities.                                               
4500....................................  Procedures governing the use of government  31 U.S.C. 3321,           
                                           purchase cards.                            31 U.S.C. 3322,           
                                                                                      31 U.S.C. 3327,           
                                                                                      31 U.S.C. 3335.           
9000....................................  Foreign Exchange. Policies and procedures   31 U.S.C. 301.            
                                           governing purchase, custody, transfer,                               
                                           sale, and use of foreign exchange.                                   
                                           Part 5, Deposit Regulations                                          
1000....................................  Forms and procedures for making deposits    See TFM, Vol. 1, Part 6,  
                                           to the credit of the U. S. Treasury.        Chapter 8000.            
4600....................................  Treasury automated lockbox network........  31 U.S.C. 3720(a).        
4700....................................  Plastic card collection network...........  31 U.S.C. 3720(a).        
5000....................................  Uncollected and lost checks...............  40 U.S.C. 725.            
                                          Part 6, Other Fiscal Matters                                          
4000....................................  Procedures and technical specifications     31 U.S.C. 331,            
                                           for simultaneous online billing/           31 U.S.C. 3513.           
                                           collection and payment of                                            
                                           intragovernmental transactions.                                      
6000....................................  Payment procedures upon expiration of an    31 U.S.C. 3325,           
                                           appropriation or continuing resolution.    31 U.S.C. 3326,           
                                                                                      31 U.S.C. 3328.           
7000....................................  Forms and procedures for reporting          31 U.S.C. 3513.           
                                           integrated funding transactions for                                  
                                           Federal assistance.                                                  
8000....................................  Cash management procedures to ensure        31 U.S.C. 321,            
                                           prudent practices.                         31 U.S.C. 1535,           
                                                                                      31 U.S.C. 3301,           
                                                                                      31 U.S.C. 3302,           
                                                                                      31 U.S.C. 3720.           
9000....................................  Procedures for securing government          31 U.S.C. 3301.           
                                           deposits in Federal agency accounts in                               
                                           non-Treasury institutions.                                           
----------------------------------------------------------------------------------------------------------------

    Copies of the TFM can be obtained from Department of the 
Treasury, Financial Management Service, Directives Management 
Branch, Room 5C16, 3700 East-West Highway, Hyattsville, 
Maryland 20782, (202) 874-9939.

     Cross-Index of Sections of the U.S.C. to Treasury Issuances.--

          31 U.S.C. 321--TFM, Volume 1, Part 6, Chapter 8000.
          31 U.S.C. 331--TFM, Volume 1, Part 6, Chapter 4000.
          31 U.S.C. 1535--TFM, Volume 1, Part 2, Chapter 2500.
          31 U.S.C. 1535--TFM, Volume 1, Part 6, Chapter 8000.
          31 U.S.C. 3301--TFM, Volume 1, Part 6, Chapter 8000.
          31 U.S.C. 3301--TFM, Volume 1, Part 6, Chapter 9000.
          31 U.S.C. 3302--TFM, Volume 1, Part 6, Chapter 8000.
          31 U.S.C. 3321--TFM, Volume 1, Part 2, Chapter 3100.
          31 U.S.C. 3321--TFM, Volume 1, Part 4, Chapter 1000.
          31 U.S.C. 3321--TFM, Volume 1, Part 4, Chapter 1100.
          31 U.S.C. 3321--TFM, Volume 1, Part 4, Chapter 3000.
          31 U.S.C. 3321--TFM, Volume 1, Part 4, Chapter 4500.
          31 U.S.C. 3322--TFM, Volume 1, Part 4, Chapter 4500.
          31 U.S.C. 3325--TFM, Volume 1, Part 4, Chapter 1100.
          31 U.S.C. 3325--TFM, Volume 1, Part 6, Chapter 6000.
          31 U.S.C. 3326--TFM, Volume 1, Part 6, Chapter 6000.
          31 U.S.C. 3327--TFM, Volume 1, Part 4, Chapter 4500.
          31 U.S.C. 3328--TFM, Volume 1, Part 6, Chapter 6000.
          31 U.S.C. 3335--TFM, Volume 1, Part 4, Chapter 4500.
          31 U.S.C. 3511--TFM, Volume 1, Part 4, Chapter 2000.
          31 U.S.C. 3511--TFM, Volume 1, Part 4, Chapter 2500.
          31 U.S.C. 3512--TFM, Volume 1, Part 2, Chapter 3300.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 1000.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 1500.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 3200.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 2000.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 3300.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 3900.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 4200.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 4300.
          31 U.S.C. 3513--TFM, Volume 1, Part 2, Chapter 4500.
          31 U.S.C. 3513--TFM, Volume 1, Part 3, Chapter 2000.
          31 U.S.C. 3513--TFM, Volume 1, Part 4, Chapter 2000.
          31 U.S.C. 3513--TFM, Volume 1, Part 4, Chapter 2500.
          31 U.S.C. 3513--TFM, Volume 1, Part 6, Chapter 7000.
          31 U.S.C. 3513a--TFM, Volume 1, Part 2, Chapter 4000.
          31 U.S.C. 3513a--TFM, Volume 1, Part 2, Chapter 4100.
          31 U.S.C. 3513a--TFM, Volume 1, Part 2, Chapter 4200.
          31 U.S.C. 3720--TFM, Volume 1, Part 6, Chapter 8000.
          31 U.S.C. 3720a--TFM, Volume 1, Part 5, Chapter 4600.
          31 U.S.C. 3720a--TFM, Volume 1, Part 5, Chapter 4700.
          31 U.S.C. 3513--TFM, Volume 1, Part 6, Chapter 4000.
          40 U.S.C. 725--TFM, Volume 1, Part 5, Chapter 5000.
      
======================================================================


                              APPENDIX VI

                     THE JOINT FINANCIAL MANAGEMENT

                          IMPROVEMENT PROGRAM

======================================================================

      
             JOINT FINANCIAL MANAGEMENT IMPROVEMENT PROGRAM

                      REFERENCED TO 31 U.S.C. 3511
    The Joint Financial Management Improvement Program (JFMIP) 
is a cooperative undertaking of the Office of Management and 
Budget, the General Accounting Office, the Department of the 
Treasury, and the Office of Personnel Management to improve 
financial management practices throughout the government. One 
of the JFMIP's recent contributions has been its series on 
federal financial management system requirements:
          Personnel/Payroll System Requirements (May 1990).
          Travel System Requirements (January 1991).
          Seized/Forfeited Asset System Requirements (March 
        1993).
          Direct Loan System Requirements (December 1993).
          Guaranteed Loan System Requirements (December 1993).
          Framework for Federal Financial Management Systems 
        (January 1995).
          Financial Management Systems Overview for Agency 
        Leaders (May 1995).
          Inventory System Requirements (June 1995)
          Core Financial System Requirements (September 1995).
          Improving Travel Management Governmentwide (December 
        1995).

    For information or copies of issuances contact JFMIP at 441 
G Street NW, Room 3711, Washington, DC 20548, (202) 512-9201.
      
======================================================================


                              APPENDIX VII

                    THE FEDERAL ACCOUNTING STANDARDS

                             ADVISORY BOARD

======================================================================

      
              Federal Accounting Standards Advisory Board

                      Referenced to 31 U.S.C. 3511
    The Federal Accounting Standards Advisory Board (FASAB) was 
established in 1990 by the Secretary of the Treasury, the 
Director of the OMB, and the Comptroller General (principals) 
through a Memorandum of Understanding. The nine-member FASAB 
was created to consider and recommend to the principals for 
approval accounting principles and standards for the federal 
government. Approved recommendations only become effective as 
standards when published by OMB and GAO.
    As of December 31, 1995, the FASAB issued the following 
concept statements and accounting standards which have been 
approved.
    Approved Concept Statements:
          #1.  ``Objectives of Federal Financial Reporting,'' 
        September 1993.
          #2.  ``Entity and Display,'' June 1995.
    Approved Accounting Standards:
          #1.  ``Accounting for Selected Assets and 
        Liabilities,'' March 1993.
          #2.  ``Accounting for Direct Loans and Loan 
        Guarantees,'' August 1993.
          #3.  ``Accounting for Inventory and Related 
        Property,'' October 1993.
          #4.  ``Managerial Cost Accounting Concepts and 
        Standards,'' July 1995.
          #5.  ``Accounting for Liabilities of the Federal 
        Government,'' December 1995.
          #6.  ``Accounting for Property, Plant, and 
        Equipment,'' October 1995.
    The FASAB also issued two exposure drafts for comment as of 
December 31, 1995, as follows.
          ``Accounting for Revenue and Other Financing 
        Sources,'' July 1995.\20\
---------------------------------------------------------------------------
    \20\ This standard was approved in May 1996, but has not yet been 
issued.
---------------------------------------------------------------------------
          ``Supplementary Stewardship Reporting,'' August 1995.

    For information on obtaining copies of the FASAB 
recommendations and exposure drafts, the Memorandum of 
Understanding, and its Mission Statement contact the FASAB at 
441 G Street NW, Washington, DC 20548, (202) 512-7350.
      
======================================================================


                             APPENDIX VIII

                          THE COST ACCOUNTING

                            STANDARDS BOARD

======================================================================

      
                    Cost Accounting Standards Board

                      Referenced to 41 U.S.C. 422
    The Cost Accounting Standards Board (CASB) was established 
as an independent board within the OMB's Office of Federal 
Procurement Policy. The CASB has exclusive authority to make, 
promulgate, amend, and rescind cost accounting standards and 
interpretations designed to achieve uniformity and consistency 
in cost accounting practices governing measurement, assignment, 
and allocation of costs to contracts and subcontracts with the 
federal government. The Board is a successor to the previous 
CASB which existed from 1970 to 1980. The CASB standards and 
requirements are codified in the Code of Federal Regulations 
(48 C.F.R. 9901 and 9903-9905).
    Although the CASB standards and requirements primarily 
pertain to government contractors, they may be referred to as 
authoritative guidance by federal agencies in specific subject 
areas (for example, determining which specific costs are part 
of pension costs) not covered by standards applicable to 
agencies.

    For additional information, contact the Cost Accounting 
Standards Board, Office of Federal Procurement Policy, Office 
of Management and Budget, Washington, DC 20503, (202) 395-3254.
      
======================================================================


                              APPENDIX IX

                       POPULAR NAMES OF SELECTED

                        MAJOR LAWS CROSS-INDEXED

                           TO SECTIONS OF THE

                         UNITED STATES CODE AND

                         STATUTE OR PUBLIC LAW

======================================================================

      
 Popular Names of Selected Major Laws Cross-Indexed to Sections of the 
              United States Code and Statute or Public Law

    The popular names of selected major laws related to federal 
financial management that appear below are cross-indexed to (1) 
sections of the Code contained in this report and (2) a statute 
citation or public law number. The Code indexed is the U.S.C.A. 
as of December 31, 1995. The statute or public law citations 
relate only to the listed law and do not include subsequent 
amendments.
    As explained in appendix I, public law numbers do not exist 
for laws enacted prior to 1957. Therefore, the statute citation 
is provided for laws enacted prior to 1957 and public law 
numbers are provided for laws enacted after 1956. Also, some 
public laws contain more than one act as identified by popular 
name. Consequently, the same public law number may appear for 
more than one popular named law. When this occurs, the part or 
title of the public law will be provided. For example, both the 
Congressional Budget Act of 1974 and the Impoundment Control 
Act of 1974 are contained in PL 93-344. The Congressional 
Budget Act is in titles I-IX and will be indexed as ``PL 93-344 
(Titles I-IX),'' whereas, the Impoundment Control Act will be 
indexed as ``PL 93-344 (Title X).''

------------------------------------------------------------------------
                                              U.S.C. and Statute or PL  
               Popular Name                            Number           
------------------------------------------------------------------------
Accounting and Auditing Act of 1950.......  31 U.S.C. 713, 714, 718,    
                                             719, 3326, 3501, 3511 to   
                                             3514, 3521, 3523, 3524.    
                                             Sept. 12, 1950, ch. 946,   
                                             Title I, pt. II, sec. 110  
                                             to 119, 64 Stat. 834 to    
                                             838.                       
Accounting Simplification Acts (Meter       31 U.S.C. 1308. Apr. 27,    
 Readings).                                  1937, ch. 143, 50 Stat.    
                                             119.                       
Balanced Budget and Emergency Deficit       2 U.S.C. 601, 602, 621 note,
 Control Act of 1985.                        622, 631 to 642, 651 to    
                                             656, 661, 900, 900 note,   
                                             901, 901a, 902, 904 to 908;
                                             31 U.S.C. 1104 to 1106,    
                                             1109. PL 99-177.           
Balanced Budget and Emergency Deficit       2 U.S.C. 622, 632, 636, 642,
 Control Reaffirmation Act of 1987.          901, 902, 904 to 908; 31   
                                             U.S.C. 1105. PL 100-119.   
Budget and Accounting Act of 1921.........  31 U.S.C. 501, 502, 521,    
                                             522, 701 to 704, 711, 712, 
                                             716, 718, 719, 1101, 1104  
                                             to 1108, 1111, 1113, 3301, 
                                             3323, 3324, 3521, 3522,    
                                             3526, 3529, 3541, 3702.    
                                             June 10, 1921, ch. 18, 42  
                                             Stat. 20.                  
Budget and Accounting Procedures Act of     31 U.S.C. 701, 1101, 1104,  
 1950.                                       1105, 1107, 1108, 1111,    
                                             1112, 1303, 1531, 3326,    
                                             3501, 3511 to 3514, 3521,  
                                             3523, 3524. Sept. 12, 1950,
                                             ch. 946, 64 Stat. 832.     
Cash Management Improvement Act of 1990...  31 U.S.C. prec. 3301, 3335. 
                                             PL 101-453.                
Cash Management Improvement Act Amendments  31 U.S.C. 3720. PL 102-589. 
 of 1992.                                                               
Chief Financial Officers Act of 1990......  31 U.S.C. 501 note, 502 to  
                                             506, 901, 901 notes, 903,  
                                             1105, 3511 note, 3512,     
                                             3515, 3515 note, 3521. PL  
                                             101-576.                   
Congressional Budget Act of 1974..........  1 U.S.C. 105; 2 U.S.C. 190d,
                                             601 to 603, 621 to 623, 631
                                             to 644, 651 to 656, 661,   
                                             665 & 665a to 665e; 31     
                                             U.S.C. 702, 717, 719, 1102,
                                             1104, to 1106, 1108 to     
                                             1110, 1112, 1113, 1512,    
                                             1552. PL 93-344 (Titles I- 
                                             IX).                       
Congressional Budget and Impoundment        1 U.S.C. 105; 2 U.S.C. 190d,
 Control Act of 1974.                        601 to 603, 621 to 623, 631
                                             to 642, 651 to 653, 661 &  
                                             681 to 688; 31 U.S.C. 702, 
                                             717, 719, 1102, 1104 to    
                                             1106, 1108 to 1110, 1112,  
                                             1113, 1512, 1552. PL 93-   
                                             344.                       
Debt Collection Act of 1982...............  5 U.S.C. 552a; 31 U.S.C.    
                                             3302, 3701, 3711, 3716 to  
                                             3719. PL 97-365.           
Dockery Act (Accounting)..................  31 U.S.C. 331, 3323, 3324,  
                                             3521, 3522, 3526, 3529,    
                                             3541, 3702. July 31, 1894, 
                                             ch. 174, 28 Stat. 205.     
Federal Banking Agency Audit Act..........  31 U.S.C. 714, 718, 719. PL 
                                             95-320.                    
Federal Financial Management Act of 1994..  31 U.S.C. 331, 501 note,    
                                             3332, 3515, 3521. PL 103-  
                                             356 (Title IV).            
Federal Managers' Financial Integrity Act   31 U.S.C. 1105, 1113, 3512. 
 of 1982.                                    PL 97-255.                 
General Accounting Act of 1974............  31 U.S.C. 702, 3521, 3525,  
                                             3702, 3726 PL 93-604.      
General Accounting Office Act of 1980.....  31 U.S.C. 702, 703, 716,    
                                             718, 3524. PL 96-226.      
General Accounting Office Personnel Act of  31 U.S.C. 711. PL 96-191.   
 1980.                                                                  
General Accounting Office Personne          31 U.S.C. 701 note, 703. PL 
 Amendments Act of 1988.                     100-426.                   
Government Management Reform Act of 1994..  31 U.S.C. 501 note, 3301    
                                             note, 3332, 3515, 3521. PL 
                                             103-356.                   
Government Performance and Results Act of   5 U.S.C. 306; 31 U.S.C.     
 1993.                                       1105, 1115, 1115 note, 1116
                                             to 1119, 9703, 9704; 39    
                                             U.S.C. 2801 to 2803. PL 103-
                                             62.                        
Gramm-Rudman-Hollings Act.................  See Balanced Budget and     
                                             Emergency Deficit Control  
                                             Act of 1985.               
Impoundment Control Act of 1974...........  2 U.S.C. 681 to 688; 31     
                                             U.S.C. 1512. PL 93-344     
                                             (Title X).                 
Inspector General Act of 1978.............  5 App. 3 U.S.C. 4, 8C to 8G,
                                             9, 11. PL 95-452.          
Inspector General Act Amendments of 1988..  31 U.S.C. 1105. PL 100-504. 
Legislative Reorganization Act of 1970....  2 U.S.C. 190d; 31 U.S.C.    
                                             702, 717, 719, 720, 1105,  
                                             1106, 1112, 1113. PL 91-   
                                             510.                       
Major Fraud Act of 1988...................  31 U.S.C. 3730. PL 100-700. 
Omnibus Budget Reconciliation Act of 1981.  31 U.S.C. 325. PL 97-35.    
Omnibus Budget Reconciliation Act of 1986.  31 U.S.C. 3101. PL 99-509.  
Prompt Payment Act........................  31 U.S.C. 3901 to 3906. PL  
                                             97-177.                    
Prompt Payment Act Amendments of 1988.....  15 U.S.C. 644; 31 U.S.C.    
                                             3901, 3902, 3903 3904 to   
                                             3906, 3907. PL 100-496.    
Single Audit Act of 1984..................  31 U.S.C. 7501 to 7507. PL  
                                             98-502.                    
------------------------------------------------------------------------

      
======================================================================


                               APPENDIX X

 SELECTED LAWS RELATING TO FEDERAL FINANCIAL MANAGEMENT BY STATUTE OR 
               PUBLIC LAW NUMBER INDEXED TO POPULAR NAME

======================================================================

      
 Selected Laws Relating to Federal Financial Management by Statute or 
               Public Law Number Indexed to Popular Name

    The list below shows the statute citation or Public Law 
number of selected laws related to federal financial 
management. Subsequent amendments are not shown and users 
should refer to other sources for subsequent amendments. As 
explained in appendix I, Public Law numbers were not used 
before 1957, and consequently, the statute citation is provided 
for those earlier laws. Following the statute list are the 
Public Law numbers, in numeric sequence for quick reference, 
cross-indexed to the popular name.
    Some public laws contain more than one act as identified by 
popular name. Consequently, the same public law number may 
appear for more than one law. When this occurs, the part or 
title of the public law will be provided. For example, both the 
Congressional Budget Act of 1974 and the Impoundment Control 
Act of 1974 are contained in PL 93-344. The Congressional 
Budget Act is in titles I-IX and will be indexed as ``PL 93-344 
(Titles I-IX),'' whereas, the Impoundment Control Act will be 
indexed as ``PL 93-344 (Title X).''

------------------------------------------------------------------------
       Statute Citation or PL Number                Popular Name        
------------------------------------------------------------------------
Sept. 12, 1950, ch. 946, Title I, pt. II,   Accounting and Auditing Act 
 sec. 110 to 119, 64 Stat. 834 to 838.       of 1950.                   
Apr. 27, 1937, ch. 143, 50 Stat. 119......  Accounting Simplification   
                                             Act (Meter Readings).      
June 10, 1921, ch. 18, 42 Stat. 20........  Budget and Accounting Act,  
                                             1921.                      
Sept. 12, 1950, ch. 946, 64 Stat. 832.....  Budget and Accounting       
                                             Procedures Act of 1950.    
July 31, 1894, ch. 174, 28 Stat. 205......  Dockery Act (Accounting).   
    91-510................................  Legislative Reorganization  
                                             Act of 1970.               
    93-344 (Titles I-X)...................  Congressional Budget Act of 
                                             1974.                      
    93-344................................  Congressional Budget and    
                                             Impoundment Control Act of 
                                             1974.                      
    93-344 (Title X)......................  Impoundment Control Act of  
                                             1974.                      
    93-604................................  General Accounting Act of   
                                             1974.                      
    95-320................................  Federal Banking Agency Audit
                                             Act.                       
    96-191................................  General Accounting Office   
                                             Personnel Act of 1980.     
    96-226................................  General Accounting Office   
                                             Act of 1980.               
    97-35.................................  Omnibus Budget              
                                             Reconciliation Act of 1981.
    97-177................................  Prompt Payment Act.         
    97-255................................  Federal Managers' Financial 
                                             Integrity Act of 1982.     
    97-365................................  Debt Collection Act of 1982.
    98-502................................  Single Audit Act of 1984.   
    99-177................................  Balanced Budget and         
                                             Emergency Deficit Control  
                                             Act of 1985.               
    99-509................................  Omnibus Budget              
                                             Reconciliation Act of 1986.
    100-119...............................  Balanced Budget and         
                                             Emergency Deficit Control  
                                             Reaffirmation Act of 1987. 
    100-426...............................  General Accounting Office   
                                             Personnel Amendments Act of
                                             1988.                      
    100-496...............................  Prompt Payment Act          
                                             Amendments of 1988.        
    100-504...............................  Inspector General Act       
                                             Amendments of 1988.        
    100-700...............................  Major Fraud Act of 1988.    
    101-73................................  Inspector General Act of    
                                             1978.                      
    101-453...............................  Cash Management Improvement 
                                             Act of 1990.               
    101-576...............................  Chief Financial Officers Act
                                             of 1990.                   
    102-589...............................  Cash Management Improvement 
                                             Act Amendments of 1992.    
    103-62................................  Government Performance and  
                                             Results Act of 1993.       
    103-356 (Title IV)....................  Government Management Reform
                                             Act of 1994.               
    103-356...............................  Federal Financial Management
                                             Act of 1994.               
------------------------------------------------------------------------

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