[Senate Report 107-176]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 443
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-176
_______________________________________________________________________



AMENDING THE INSPECTOR GENERAL ACT OF 1978 (5 U.S.C. APP.) TO 
  ESTABLISH POLICE POWERS FOR CERTAIN INSPECTOR GENERAL AGENTS ENGAGED 
  IN OFFICIAL DUTIES AND PROVIDE AN OVERSIGHT MECHANISM FOR THE EXERCISE 
  OF THOSE POWERS

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2530

AMENDING THE INSPECTOR GENERAL ACT OF 1978 (5 U.S.C. APP.) TO ESTABLISH 
 POLICE POWERS FOR CERTAIN INSPECTOR GENERAL AGENTS ENGAGED IN OFFICIAL 
 DUTIES AND PROVIDE AN OVERSIGHT MECHANISM FOR THE EXERCISE OF THOSE 
 POWERS




                 June 25, 2002.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                    WASHINGTON : 2002

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 FRED THOMPSON, Tennessee
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine
ROBERT G. TORRICELLI, New Jersey     GEORGE V. VOINOVICH, Ohio
MAX CLELAND, Georgia                 THAD COCHRAN, Mississippi
THOMAS R. CARPER, Delaware           ROBERT F. BENNETT, Utah
JEAN CARNAHAN, Missouri              JIM BUNNING, Kentucky
MARK DAYTON, Minnesota               PETER G. FITZGERALD, Illinois
           Joyce A. Rechtschaffen, Staff Director and Counsel
                  John N. Wanat, Congressional Fellow
              Richard A. Hertling, Minority Staff Director
          William ``Bill'' M. Outhier, Minority Chief Counsel
                     Darla D. Cassell, Chief Clerk

                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for Legislation..............................1
III. Legislative History and Committee Consideration..................4
 IV. Section-by-Section Analysis......................................5
  V. Regulatory Impact Statement......................................8
 VI. CBO Cost Estimate................................................8
VII. Changes to Existing Law..........................................9

                                                       Calendar No. 443
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-176

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



 
AMENDING THE INSPECTOR GENERAL ACT OF 1978 (5 U.S.C. APP.) TO ESTABLISH 
  POLICE POWERS FOR CERTAIN INSPECTOR GENERAL AGENTS ENGAGED IN OFFICIAL 
  DUTIES AND PROVIDE AN OVERSIGHT MECHANISM FOR THE EXERCISE OF THOSE 
  POWERS

                                _______
                                

                 June 25, 2002.--Ordered to be printed

                                _______
                                

 Mr. Lieberman, from the Committee on Governmental Affairs, submitted 
                             the following

                              R E P O R T

                         [To accompany S. 2530]

    The Committee on Governmental Affairs, to which was 
referred the bill (S. 2530) to amend the Inspector General Act 
of 1978 (5 U.S.C. App.) to establish police powers for certain 
Inspector General agents engaged in official duties and provide 
an oversight mechanism for the exercise of those powers, 
reports favorably thereon without an amendment and recommends 
that the bill do pass.

                         I. Purpose and Summary

    S. 2530 provides specific statutory authority for the 
Attorney General to grant certain law enforcement powers to 
presidentially-appointed Federal inspectors general (IGs) and 
their investigative personnel. The purposes of the bill are to 
alleviate administrative burdens, to provide additional 
oversight of the use of law enforcement authority by IGs, and 
to ensure that criminal investigations are not interrupted by 
lapses in the current deputation process. S. 2530 is nearly 
identical to S. 3144 which was reported out of Committee during 
the 106th Congress.

                II. Background and Need for Legislation


     A. HISTORY OF LAW ENFORCEMENT AUTHORITY FOR INSPECTORS GENERAL

    Criminal investigators for the Offices of Inspectors 
General (OIGs) covered by S. 2530 (with the exception of those 
in the Inspector General's Office for the Tennessee Valley 
Authority as discussed below) have been exercising law 
enforcement authorities for many years under designations as 
Special Deputy U.S. Marshals. Beginning in the mid-1980s the 
U.S. Marshals Service within the Department of Justice approved 
these deputations on a case-by-case basis. However, as the role 
of IGs has evolved, the need for such appointments became so 
consistent and the volume of requests so large that ``blanket'' 
deputations evolved. Since 1995, virtually all criminal 
investigators in the offices of the twenty-three covered IGs 
have exercised law enforcement authorities in cases under 
office-wide deputations. These deputations are renewed 
periodically.
    Each time that an OIG receives a blanket deputation, it 
enters into a Memorandum of Understanding (MOU) with the 
Department of Justice and the FBI. These MOUs specify the 
training and operational requirements by which the deputized 
agents must abide. Failure to follow the guidelines contained 
in the MOUs could result in rescission of the deputation for 
the OIG.
    Currently, there are approximately 2,800 criminal 
investigators in the offices of presidentially-appointed IGs. 
According to annual reports filed by the President's Council on 
Integrity and Efficiency, over the last five years the IGs 
achieved more than 25,000 successful criminal prosecutions and 
obtained more than $12 billion in investigative recoveries 
(money accrued to the federal government as a result of 
investigations). In addition, IGs were responsible for more 
than 35,000 suspensions and debarments of individuals or 
companies from doing business with the federal government 
during the same period.

                B. PROBLEMS WITH THE DEPUTATION PROCESS

    Lack of oversight. Because the deputation is renewed 
periodically, the Attorney General and the FBI are provided 
with the opportunity at the time of renewal to make a 
determination whether each specific IG office continues to 
require law enforcement authority. However, hearing testimony 
before the Committee indicates that each review is cursory. 
Beyond the renewal process, there is no current review of the 
use of the IGs' law enforcement authority.
    Delays in the renewal process. Periodic renewal of law 
enforcement authority can result in delays during the renewal 
process which could endanger ongoing criminal investigations.
    Administrative burden on the U.S. Marshals Service. One of 
the reasons for the lack of proper oversight of use of the law 
enforcement authority by the IGs is the extensive burden placed 
on the U.S. Marshals Service. There are approximately 2,800 
qualified IG agents currently deputized. Testimony before the 
Committee during a hearing held in the 106th Congress revealed 
that it is not possible for the Marshals Service to maintain 
proper oversight over all of the deputized agents in the OIGs.

                      C. NEED FOR THE LEGISLATION

    In short, S. 2530 would codify the law enforcement 
authority now exercised by qualified agents within certain OIGs 
(authority to, under certain circumstances, (i) carry a firearm 
while engaged in official duties; (ii) make an arrest without a 
warrant while engaged in official duties; and (iii) seek and 
execute search and arrest warrants). It would also ensure that 
the current rules that govern the exercise of that authority 
remain in place. In addition, it would provide moreoversight of 
the exercise of that authority than currently exists in the deputation 
process by requiring periodic peer reviews that would result in reports 
submitted to the relevant IG and the Attorney General. It would further 
provide the Attorney General the authority to suspend or rescind law 
enforcement authority if an office failed to comply with guidelines or 
no longer needed the authority.
    S. 2530 would specifically address the following issues:
    Additional oversight. S. 2530 requires that the OIGs listed 
in the statute collectively enter into a MOU, in consultation 
with the Attorney General, to establish an external review 
process for ensuring that adequate internal safeguards and 
management procedures continue to exist within each office and 
any OIGs that later receive the authority. The results of the 
periodic peer reviews shall be communicated in writing to the 
applicable IG and to the Attorney General.
    The Attorney General would also be required to promulgate 
guidelines which shall govern the exercise of law enforcement 
powers established in S. 2530. Historically, the FBI has been 
involved in drafting the guidelines contained in the MOUs that 
have governed the grant of authority by deputation. The 
Committee expects that the Attorney General will continue to 
consult with the Director of the FBI when promulgating 
guidelines pursuant to S. 2530. The Committee expects that the 
guidelines promulgated pursuant to S. 2530 will, at a minimum, 
contain the requirements in the existing MOUs. Specifically, 
the guidelines should provide training and operational 
requirements. The operational guidelines should include 
requirements for notification, referral, coordination, and 
adherence to the Attorney General guidelines on General Crimes, 
Racketeering Enterprise, and Domestic Security/Terrorism 
Investigations and Attorney General guidelines on sensitive 
investigative techniques, including undercover operations and 
sensitive targets.
    The Attorney General would retain the authority to suspend 
or rescind law enforcement authority upon determining that the 
work of an IG office is no longer hampered without the 
authority, available assistance from other law enforcement 
agencies is sufficient to meet its law enforcement needs, 
adequate internal safeguards and management procedures do not 
exist to ensure proper exercise of its authority, or that an 
OIG has not complied with the guidelines promulgated pursuant 
to S. 2530. The peer-review process established under S. 2530 
should provide the Attorney General with more information to 
make such a determination than is now available under the 
deputation process.
    Elimination of delays in the renewal process. Because there 
will no longer be a need to renew each deputation, there will 
no longer be any potential danger that the renewal process will 
interrupt an ongoing criminal investigation.
    Administrative burden on the U.S. Marshals Service. S. 2530 
would end the deputation process currently in place and 
therefore remove the existing burden on the U.S. Marshals 
Service.
    Increased need in light of recent measures by the FBI to 
refocus its efforts on counterterrorism. The role of IGs is 
even more important in light of the terrorist attacks of 
September 11, 2001. The Department of Justice and the FBI are 
currently refocusing their priorities and resources on 
counterterrorism. As a result, it is clear that other law 
enforcement agencies will be called on to play an increased 
role in handling certain law enforcement matters that the FBI 
previously would have handled. IGs are and will continue to be 
an important part of that effort. S. 2530 will provide 
stability and oversight to help carry out that goal.
    Putting IGs on par with other federal law enforcement 
agents. S. 2530 would eliminate the fragmented exercise of law 
enforcement powers that currently exists among the various 
federal law enforcement agencies. All agents who exercise law 
enforcement authority under the current MOUs must first attend 
and successfully complete the basic criminal investigator 
training program at the Federal Law Enforcement Training 
Center. Included in the basic criminal investigator program is 
a curriculum for firearms training. Except for the FBI, DEA and 
the United States Postal Inspectors, this is the basic training 
program that all other federal criminal investigators (e.g. the 
United States Secret Service, the United States Customs 
Service, the Bureau of Alcohol, Tobacco and the Firearms, 
United States Marshals Service--which have statutory law 
enforcement authority) attend. As a result, IG agents and 
agents from these law enforcement agencies are frequently 
included in the same training classes and undergo firearms 
training together.
    Analogy to other recent legislation. In the Floyd D. Spence 
National Defense Authorization Act for FY 2001 (PL 106-398), 
Congress provided statutory authority to civilian agents 
operating within the military services to execute warrants and 
make arrests. These agents exercise law enforcement authority 
within agency-specific jurisdiction and operate under 
guidelines promulgated by the Attorney General. In S. 2530, 
Congress would be extending similar authority to similarly 
situated agents within the various covered OIGs.

          III. Legislative History and Committee Consideration

    On July 19, 2000 the Committee held a hearing to consider a 
legislative proposal to grant statutory law enforcement 
authority to presidentially-appointed IGs. The witnesses were 
the Honorable Joshua Gotbaum, Executive Associate Director and 
Controller of the U.S. Office of Management and Budget; the 
Honorable Gaston L. Gianni, Jr., Inspector General for the 
Federal Deposit Insurance Corporation and Vice Chair of the 
President's Council on Integrity and Efficiency; the Honorable 
Patrick E. McFarland, Inspector General of the U.S. Office of 
Personnel Management; the Honorable Kenneth Mead, Inspector 
General for the U.S. Department of Transportation; and Nicholas 
M. Gess, Associate Deputy Attorney General, U.S. Department of 
Justice. In addition, Committee staff conducted numerous 
interviews with interested parties. On September 27, 2000, the 
Committee considered the legislative proposal and, by unanimous 
voice vote, ordered it reported as an original bill. The Senate 
did not consider the legislation prior to the end of the 
Congress.
    Committee staff continued to talk with interested parties, 
and S. 2530 was introduced on May 16, 2002. At its May 22, 
2002, business meeting, the Committee once again considered 
this legislative proposal and, by unanimous voice vote, ordered 
it reported. Present for the vote were Senators Levin, Akaka, 
Durbin, Carper, Dayton, Thompson, Cochran, Bennett and 
Lieberman.

                    IV. Section-by-Section Analysis

    Section 1(a) of the bill amends the Inspector General Act 
of 1978 (IG Act), 5 U.S.C. App., by adding a new subsection 
6(e) to that Act. The new subsection 6(e) establishes a 
statutory basis for the exercise of law enforcement powers by 
IG investigative personnel of the type they now are provided 
administratively through United States Marshals Service 
deputations.
    Enumeration of law enforcement powers and their 
limitations. Paragraph (1) of the new subsection 6(e) of the IG 
Act provides that the Attorney General may authorize eligible 
IG personnel to:
          (A) Carry a firearm while engaged in official duties 
        authorized under the IG Act or another statute, or as 
        expressly authorized by the Attorney General;
          (B) Make an arrest without a warrant while engaged in 
        official duties authorized under the IG Act or another 
        statute, or as expressly authorized by the Attorney 
        General, for any offense against the United States 
        committed in their presence, or for any felony 
        cognizable under the laws of the United States if they 
        have reasonable grounds to believe that the person to 
        be arrested has committed or is committing such felony; 
        and
          (C) Seek and execute warrants for arrest, search of a 
        premises, or seizure of evidence issued under the 
        authority of the United States upon probable cause to 
        believe that a violation has been committed.
    These law enforcement powers may be granted to IGs who are 
appointed by the President under section 3 of the IG Act, their 
subordinate Assistant IGs for Investigations, and special 
agents supervised by their Assistant IGs for Investigations. 
The term ``special agent'' is used to refer to individuals in 
the Office of Personnel Management official occupational 
classification ``Series 1811 Criminal Investigator.''
    The authority does not extend to Assistant IGs for Audit or 
other IG audit personnel. Existing authorities in the IG Act 
have been adequate for the conduct of auditing activities, 
without the need for the law enforcement powers covered by 
subsection 6(e). Nor does the authority extend to IGs who are 
appointed by their agency heads. There have been legislative 
proposals to convert agency-appointed IGs to presidentially-
appointed status and to create additional presidentially-
appointed IG positions in federal organizations that do not now 
have an IG. Any new presidentially-appointed IG would be 
eligible for Attorney General authorization of law enforcement 
powers under subsection 6(e), regardless of whether their 
office was established before or after enactment of this bill.
    The law enforcement powers under subparagraphs (1)(A) and 
(B) are restricted to eligible agents ``while engaged in 
official duties.'' This limitation continues the current 
``blanket deputation'' MOU prohibition against carrying 
firearms and making arrests while agents are on leave or 
otherwise off-duty.
    Paragraph (1) makes clear that it supplements authority 
otherwise provided by the IG Act. It is not intended to limit 
in any way IG powers already established by the Act. By the 
same token, the bill does not expand the investigative 
jurisdiction of any IG. Law enforcement powers are authorized 
only for investigative activities within the scope of the IG 
Act or other statute, or as expressly authorized by the 
Attorney General.
    Attorney General determination of need. Paragraph (2) of 
subsection 6(e) establishes standards for the Attorney 
General's initial determination of whether IGs have needs 
sufficient to justify the grant of law enforcement powers. The 
standards require that all of the following conditions be met:
          (A) An IG office is significantly hampered in the 
        performance of its responsibilities by the lack of such 
        powers;
          (B) Assistance from other law enforcement agencies is 
        insufficient to meet the need for such powers; and
          (C) Adequate internal safeguards and management 
        procedures exist to ensure the proper exercise of such 
        powers.
    These standards are derived from the Attorney General's 
1984 Guidelines for Legislation Involving Federal Criminal Law 
Enforcement Authority, which have been applied by the executive 
branch since 1984 to evaluate any request for new federal 
statutory law enforcement powers for existing or proposed 
federal entities.
    The term ``initial determination'' is used to signify that 
the Attorney General's review is a single event for each OIG, 
and that there will not be a periodic Attorney General 
reauthorization process. The lack of periodic review and 
reauthorization is a significant distinction between the bill 
and the current deputation process.
    Exemption of deputized IG offices from determination of 
need. Paragraph (3) of subsection 6(e) exempts from the 
requirement for an Attorney General initial determination of 
need the specified 23 OIGs that now exercise law enforcement 
powers through blanket deputation. These offices have already 
met the standards of section 6(e)(2), discussed above. In 
addition, the Inspector General for the Tennessee Valley 
Authority is exempted. The TVA OIG has been elevated to 
presidentially-appointed status and currently has individual 
agents that exercise law enforcement authority based on 
individual deputations as opposed to an office-wide blanket 
deputation.
    Guidelines for the exercise of law enforcement powers. 
Paragraph (4) requires the Attorney General to promulgate, and 
revise as appropriate, guidelines to govern the exercise of the 
law enforcement powers granted under subsection 6(e). Attorney 
General guidelines currently govern the 23 deputized OIGs since 
they are incorporated into the MOU negotiated as part of the 
deputation process. The intent of paragraph (4) is, in essence, 
is to carry forward the current guidelines.
    Suspension or rescission of law enforcement powers. 
Paragraph (5) of subsection 6(e) requires the Attorney General 
to suspend or rescind law enforcement powers of any OIG that no 
longer satisfies the eligibility requirements of paragraph (2) 
or that has not complied with the guidelines promulgated under 
paragraph (4).
    Exemptions from judicial review. Paragraph (6) of 
subsection 6(e) precludes judicial review of determinations by 
the Attorney General under paragraph (2) or (5). Department of 
Justice oversight of the exercise of law enforcement powers by 
IGs is an executive branch administrative process. It is not 
intended to create third party rights or to raise issues 
appropriate for litigation.
    External reviews. Paragraph (7) of subsection 6(e) requires 
the IGs that already have been granted law enforcement powers 
through deputation to establish a periodic external review 
process to ensure that they have adequate internal safeguards 
and management procedures for the exercise of these powers. The 
same review process is to apply to any OIG that later receives 
such powers under subsection 6(e). The external review process 
will be conducted by members of the IG community. It must be 
established within 180 days following the enactment of the 
bill. The review process is to be developed in consultation 
with the Attorney General, who shall be provided a copy of the 
MOU that establishes it. The results of each review shall be 
communicated to the applicable IG and to the Attorney General.
    Limitation on the scope of section 6(e). Paragraph (8) of 
subsection 6(e) provides that none of its provisions shall 
limit the exercise of law enforcement powers established 
pursuant to statutory or other authority, including Marshals 
Service special deputations. Specific case and matter special 
deputation remains available for IG agents, at the discretion 
of the Department of Justice, and may be used for agents or 
offices not authorized to exercise law enforcement powers under 
subsection 6(e), for operations beyond the scope of subsection 
6(e), and for operations between the date of enactment of the 
bill and authorization of OIGs under subsection 6(e). Some 
agencies have agency-specific statutory law enforcement powers 
which will not be affected by subsection 6(e). For example, the 
Defense Criminal Investigative Service of the Department of 
Defense and the IG at the Department of Agriculture exercise 
law enforcement powers established by agency-specific statutes.
    Promulgation of initial guidelines. Subsection 1(b) of the 
bill contains additional provisions governing the guidelines 
promulgated by the Attorney General under section 6(e)(4) of 
the IG Act as they relate to the memoranda of understanding 
that now govern the exercise of law enforcement powers by the 
23 IG offices referred to in paragraph 6(e)(3). It requires 
that the Attorney General promulgate guidelines for these 
offices not later than 180 days after the date of enactment of 
the bill. It further requires that the guidelines include, at a 
minimum, the operational and training requirements in the 
memoranda of understanding governing these offices. Finally, 
subsection 1(b) provides that the current MOU will remain in 
effect until the guidelines under section 6(e)(4) have been 
promulgated. The TVA OIG does not currently exercise law 
enforcement under a MOU. Because it is the intent of the 
Committee that the exercise of statutory law enforcement 
authority should not begin until the Attorney General has 
promulgated guidelines, it is expected that the TVA OIG will 
not exercise authority described in paragraph (2) of subsection 
6(e) (except pursuant to its individual deputations) until 
those guidelines have been promulgated.
    Effective dates. Subsection 1(c)(1) provides that the 
provisions of subsection (a) of the bill, which add section 
6(e) of the IG Act, shall become effective 180 days after the 
date of enactment of the bill. Subsection 1(c)(2) provides that 
subsection 1(b) of the bill, dealing with the initial Attorney 
General guidelines, shall take effect on the date of enactment.

                     V. Regulatory Impact Statement

    Pursuant to paragraph 11(b) of rule XXVI of the Standing 
Rules of the Senate, the Committee has considered the 
regulatory impact that would be incurred in carrying out the 
bill. The Committee finds that enactment of the bill will not 
have significant regulatory impact.

                         VI. CBO Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 29, 2002.
Hon. Joseph I. Lieberman,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2530, a bill to 
amend the Inspector General Act of 1978 (5 U.S.C. App.) to 
establish police powers for certain inspector general agents 
engaged in official duties and provide an oversight mechanism 
for the exercise of those powers.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 2530--A bill to amend the Inspector General Act of 1978 (5 U.S.C. 
        App.) to establish police powers for certain Inspector General 
        agents engaged in official duties and provide an oversight 
        mechanism for the exercise of those powers

    The bill would amend the Inspector General Act of 1978 to 
allow investigative agents in offices of federal inspectors 
general to exercise certain law enforcement powers, such as 
carrying a firearm and seeking and executing warrants for 
arrests. Investigative agents have exercised such powers 
through special deputation by the U.S. Marshals Service. The 
legislation would codify those powers and remove the 
responsibility for authorizing and overseeing the use of such 
powers from the Marshals Service. Under the bill, the 
individual inspector general (IG) offices would be responsible 
for supervising and controlling the day-to-day use of the law 
enforcement powers, with the Attorney General providing 
additional oversight. In addition, the bill would require IG 
offices to enter into an interagency memorandum of 
understanding to establish a process of periodic peer reviews 
of the use of the law enforcement powers by each office.
    CBO estimates that implementing this bill would have no 
significant effect on federal spending because the bill would 
codify powers already exercised by IG offices, and replace one 
system of review and oversight with another. S. 2530 could 
affect direct spending because some IG offices operate within 
agencies that have direct spending authority; therefore pay-as-
you-go procedures would apply. CBO estimates, however, that any 
effect on direct spending would be negligible. The bill 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would not 
affect the budgets of state, local, or tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Peter H. Fontaine, 
Deputy Assistant Director for Budget Analysis.

                      VII. Changes to Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 2530, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

      TITLE V--GOVERNMENT ORGANIZATION AND EMPLOYEES APPENDIXES

           *       *       *       *       *       *       *


                     INSPECTOR GENERAL ACT OF 1978

           *       *       *       *       *       *       *



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

           *       *       *       *       *       *       *


    (e)(1) In addition to the authority otherwise provided by 
this Act, each Inspector General appointed under section 3, any 
Assistant Inspectors General for Investigations under such an 
Inspector General, and any special agent supervised by such an 
Assistant Inspector General may be authorized by the Attorney 
General to--
          (A) carry a firearm while engaged in official duties 
        as authorized under this Act or other statute, or as 
        expressly authorized by the Attorney General;
          (B) make an arrest without a warrant while engaged in 
        official duties as authorized under this Act or other 
        statute, or as expressly authorized by the Attorney 
        General, for any offense against the United States 
        committed in their presence of such Inspector General, 
        Assistant Inspector General, or agent, or for any 
        felony cognizable under the laws of the United States 
        if such Inspector General, Assistant Inspector General, 
        or agent has reasonable grounds to believe that the 
        person to be arrested has committed or is committing 
        such felony; and
          (C) seek and execute warrants for arrest, search of a 
        premises, or seizure of evidence issued under the 
        authority of the United States upon probable cause to 
        believe that a violation has been committed.
    (2) The Attorney General may authorize exercise of the 
powers under this subsection only upon an initial determination 
that--
          (A) the affected Office of Inspector General is 
        significantly hampered in the performance of 
        responsibilities established by this Act as a result of 
        its lack of such powers;
          (B) available assistance from other law enforcement 
        agencies is insufficient to meet the need for such 
        powers; and
          (C) adequate internal safeguards and management 
        procedures exist to ensure proper exercise of such 
        powers.
    (3) The Inspector General offices of the Department of 
Commerce, Department of Education, Department of Energy, 
Department of Health and Human Services, Department of Housing 
and Urban Development, Department of the Interior, Department 
of Justice, Department of Labor, Department of State, 
Department of Transportation, Department of the Treasury, 
Department of Veterans Affairs, Agency for International 
Development, Environmental Protection Agency, Federal Deposit 
Insurance Corporation, Federal Emergency Management Agency, 
General Services Administration, National Aeronautics and Space 
Administration, Nuclear Regulatory Commission, Office of 
Personnel Management, Railroad Retirement Board, Small Business 
Administration, Social Security Administration, and the 
Tennessee Valley Authority are exempt from the requirement of 
paragraph (2) of an initial determination of eligibility by the 
Attorney General.
    (4) The Attorney General shall promulgate, and revise as 
appropriate, guidelines which shall govern the exercise of the 
law enforcement powers established under paragraph (1).
    (5) Powers authorized for an Office of Inspector General 
under paragraph (1) shall be rescinded or suspended upon a 
determination by the Attorney General that any of the 
requirements under paragraph (2) is no longer satisfied or that 
the exercise of authorized powers by that Office of Inspector 
General has not complied with the guidelines promulgated by the 
Attorney General under paragraph (4).
    (6) A determination by the Attorney General under paragraph 
(2) or (5) shall not be reviewable in or by any court.
    (7) To ensure the proper exercise of the law enforcement 
powers authorized by this subsection, the Offices of Inspector 
General described under paragraph (3) shall, not later than 180 
days after the date of enactment of this subsection, 
collectively enter into a memorandum of understanding to 
establish an external review process for ensuring that adequate 
internal safeguards and management procedures continue to exist 
within each Office and within any Office that later receives an 
authorization under paragraph (2). The review process shall be 
established in consultation with the Attorney General, who 
shall be provided with a copy of the memorandum of 
understanding that establishes the review process. Under the 
review process, the exercise of the law enforcement powers by 
each Office of Inspector General shall be reviewed periodically 
by another Office of Inspector General or by a committee of 
Inspectors General. The results of each review shall be 
communicated in writing to the applicable Inspector General and 
to the Attorney General.
    (8) No provision of this subsection shall limit the 
exercise of law enforcement powers established under any other 
statutory authority, including United States Marshals Service 
special deputation.