[House Report 115-799]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-799
======================================================================
IG SUBPOENA AUTHORITY ACT
_______
June 29, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Gowdy, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 4917]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 4917) to amend the Inspector
General Act of 1978 to provide testimonial subpoena authority,
and for other purposes, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
CONTENTS
Page
Summary and Purpose of the Legislation........................... 1
Background and Need for Legislation.............................. 2
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 3
Statement of General Performance Goals and Objectives............ 3
Legislative History.............................................. 3
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 4
Explanation of Amendments........................................ 4
Application of Law to the Legislative Branch..................... 4
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rule Makings.............................. 4
Federal Advisory Committee Act................................... 4
Unfunded Mandates Statement...................................... 5
Earmark Identification........................................... 5
Committee Estimate............................................... 5
New Budget Authority and Congressional Budget Office Cost
Estimate....................................................... 5
Section-by-Section Analysis...................................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Summary and Purpose of Legislation
H.R. 4917, the Inspector General Subpoena Authority Act,
enhances the ability of inspectors general to identify waste,
fraud, abuse, and mismanagement in the Executive Branch. The
bill authorizes inspectors general to issue testimonial
subpoenas for contractors, grant recipients, and former federal
employees, as necessary to perform the functions required by
the Inspector General Act of 1978.\1\
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\1\ Inspector General Act of 1978, P.L. 95-452, 92 Stat. 1101,
codified as amended at 5 U.S.C. app Sec. Sec. 1-13.
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Background and Need for Legislation
The Inspector General Act of 1978 (the Inspector General
Act) established inspectors general to promote economy,
efficiency, and effectiveness within Executive Branch
departments and agencies.\2\ The role of an inspector general
is to make recommendations based on independent and objective
audits, evaluations, and investigations of the agency.
Inspectors general promote good stewardship of taxpayer dollars
and improve the effectiveness of government. Their
recommendations often involve practical methods to reduce
agency waste and mismanagement, while improving operations.
During fiscal year (FY) 2016, the 73 Offices of Inspector
General (OIGs) made recommendations with potential cost savings
totaling $45.1 billion.\3\ Compared to the total OIG
community's FY 2016 budget of $2.7 billion, the potential
savings represent a return of approximately $17 on every dollar
invested in the OIGs.\4\
---------------------------------------------------------------------------
\2\Id.
\3\ Council of the Inspectors Gen. on Integrity & Efficiency,
Progress Report to the
President, Fiscal Year 2016, available at https://www.ignet.gov/sites/
default/files/files/
FY16_Annual_Report_to_the_President_and_Congress.pdf. (last accessed
Mar. 1, 2018).
\4\Id.
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During a hearing before the Committee in November 2017,
multiple inspectors general testified on issues and challenges
the broader inspector general community faces while fulfilling
their role under the Inspector General Act. Peace Corps
Inspector General Kathy Buller, who serves as Chair of the
Legislative Committee of the Council of the Inspectors General
on Integrity and Efficiency (CIGIE), testified about CIGIE's
top legislative priorities.\5\ Among those was legislation to
authorize testimonial subpoenas for inspectors general.
---------------------------------------------------------------------------
\5\Recommendations and Reforms from the Inspectors Generals:
Hearing Before the H. Comm. on Oversight & Gov't Reform, 115th Cong.
(2017) (written testimony of Kathy Buller).
---------------------------------------------------------------------------
Federal employees are obligated to provide testimony and
fully cooperate with inspector general audits, investigations,
and other reviews. During the November 2017 hearing, all three
inspectors general described situations in which the inability
to compel testimony from certain witnesses severely hampered
their work.\6\ In some cases, federal employees simply resigned
rather than cooperate with the IG.\7\ For example, Department
of Justice Inspector General Michael Horowitz explained his
office was unable to obtain important information from former
Department of Justice employees in investigations involving
allegations of whistleblower retaliation and sexual assault.\8\
---------------------------------------------------------------------------
\6\Id.
\7\Id.
\8\Id. (written testimony of Michael Horowitz).
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H.R. 4917 would enable inspectors general to compel
testimony in cases where witnesses refuse to cooperate by
authorizing them to issue testimonial subpoenas to contractors,
grant recipients, and former federal employees, as necessary,
to perform the functions required by the Inspector General Act
of 1978. To ensure the new authority is not abused, an
inspector general contemplating a testimonial subpoena must
undergo a panel review process by three other inspectors
general prior to the subpoena's issuance. After the review
panel, the requesting inspector general must notify the
Attorney General to ensure the subpoena will not interfere with
any ongoing Department of Justice investigations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the previous section.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective of this bill is to provide testimonial
subpoena authority to inspectors general.
Legislative History
On November 15, 2017, the Committee held a hearing
entitled, Recommendations and Reforms from the Inspectors
General, to examine the implementation of the Inspector General
Empowerment Act of 2016 and ongoing management challenges
identified by inspectors general in their respective agencies.
During the hearing, Kathy Buller, Inspector General of the
Peace Corps and Executive Chair of the CIGIE Legislation
Committee, testified on CIGIE's legislative priorities.
Specifically, Ms. Buller testified regarding the need for
testimonial subpoena authority for inspectors general.
On February 2, 2018, Representative Steve Russell (R-OK)
introduced H.R. 4917, the Inspector General Subpoena Authority
Act. H.R. 4917 was referred to the Committee on Oversight and
Government Reform. The Committee considered H.R. 4917 at a
business meeting on February 6, 2018, and ordered the bill
favorably reported by voice vote.
In the 114th Congress, on May 18, 2015, then-Chairman Jason
Chaffetz (R-UT) introduced H.R. 2395, the Inspector General
Empowerment Act of 2016, with Representative Mark Meadows (R-
NC) and Ranking Minority Member Elijah Cummings (D-MD). H.R.
2395 contained a similar provision to H.R. 4917. On May 19,
2015, the Committee ordered H.R. 2395 favorably reported by
voice vote and on June 21, 2016, the House passed the bill, as
amended, by voice vote.
Also in the 114th Congress, on February 26, 2015, Senator
Chuck Grassley (R-IA) introduced S. 579, the Inspector General
Empowerment Act of 2015, with Senator Ron Johnson (R-WI), and
Senator Claire McCaskill (D-MO). S. 579 contained a similar
provision to H.R. 4917. On March 4, 2015, the Senate Committee
on Homeland Security and Governmental Affairs ordered S. 579
favorably reported, as amended, by voice vote.
In the 113th Congress, on September 16, 2014,
Representative Darrell Issa (R-CA) introduced H.R. 5492, the
Inspector General Empowerment Act of 2014, with Ranking
Minority Member Elijah Cummings (D-MD) and Representative Mark
Meadows (R-NC). H.R. 5492 contained a provision similar to H.R.
4917. On September 17, 2014, the House Committee on Oversight
and Government Reform ordered H.R. 5492 favorably reported, as
amended, by voice vote.
Committee Consideration
On February 6, 2018, the Committee met in open session and,
with a quorum being present, ordered the bill favorably
reported by voice vote.
Roll Call Votes
There were no roll call votes requested or conducted during
Committee consideration of H.R. 4917.
Explanation of Amendments
There were no amendments to H.R. 4917 offered or adopted
during Committee consideration of the bill.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill provides testimonial subpoena authority to inspectors
general. As such, this bill does not relate to employment or
access to public services and accommodations.
Duplication of Federal Programs
In accordance with clause 2(c)(5) of rule XIII no provision
of this bill establishes or reauthorizes a program of the
Federal Government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
This bill directs the Chairperson of the Council of the
Inspectors General on Integrity and Efficiency, in consultation
with the Attorney General, to promulgate regulations to carry
out revisions to Sec. 6A of the Inspector General Act of 1978
(5 U.S.C. App.).
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of Section 5(b) of the appendix to title 5,
United States Code.
Unfunded Mandates Statement
Pursuant to section 423 of the Congressional Budget and
Impoundment Control Act (Pub. L. 113-67) the Committee has
included a letter received from the Congressional Budget Office
below.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI of the House of Representatives.
Committee Estimate
Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of
the House of Representatives, the Committee includes below a
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
New Budget Authority and Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the House of
Representatives, the cost estimate prepared by the
Congressional Budget Office and submitted pursuant to section
402 of the Congressional Budget Act of 1974 is as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 1, 2018.
Hon. Trey Gowdy,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4917, the IG
Subpoena Authority Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 4917--IG Subpoena Authority Act
H.R. 4917 would amend the Inspector General Act of 1978 to
expand the subpoena authority of inspectors general at some
agencies. The bill also would create a process for a panel of
inspectors general to approve specific uses of the subpoena
authority and also for the Attorney General to disapprove such
uses.
Using information from several agencies, CBO estimates that
any budgetary effects from implementing H.R. 4917 would not be
significant because the new subpoena authority probably would
be used infrequently. Enacting H.R. 4917 could affect direct
spending by some agencies because they are authorized to use
receipts from the sale of goods, fees, and other collections to
cover operating costs. Therefore, pay-as-you-go procedures
apply. Because most agencies can make adjustments to the
amounts collected as operating costs change, CBO estimates that
any net changes in direct spending by those agencies would be
insignificant. Enacting H.R. 4917 would not affect revenues.
CBO estimates that enacting H.R. 4917 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 4917 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
Section-by-Section Analysis
Section 1. Short title
Section 1 establishes the short title of the bill.
Section 2. Additional authority provisions for Inspectors General
Section 2 amends the Inspector General Act of 1978 by
adding a new section 6A to authorize Inspectors General to
subpoena the attendance and testimony of certain witnesses as
necessary in carrying out the provisions of the Inspector
General Act.
The section also creates a panel of three inspectors
general selected by the Council of the Inspectors General on
Integrity and Efficiency (CIGIE) to review and approve any
proposed subpoena within a specified timeframe. Following
approval from the panel, the issuing inspector general must
notify the Attorney General of the subpoena. The Attorney
General may object to a subpoena because the subpoena will
interfere with an ongoing investigation.
Lastly, the section defines ``inspector general,''
determines applicability of the provision, and directs the
Chairperson of CIGIE to prescribe regulations to carry out the
purpose of the section in consultation with the Attorney
General.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, 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):
INSPECTOR GENERAL ACT OF 1978
* * * * * * *
reports
Sec. 5. (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(c)(2) during the
reporting period;
(6) a listing, subdivided according to subject
matter, of each audit report, inspection reports, and
evaluation reports issued by the Office during the
reporting period and for each 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, inspection reports, and evaluation
reports and the total dollar value of questioned costs
(including a separate category for the dollar value of
unsupported costs), for 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, inspection reports, and evaluation
reports and the dollar value of recommendations that
funds be put to better use by management, for 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, inspection
reports, and evaluation reports issued before the
commencement of the reporting period--
(A) 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;
(B) for which no establishment comment was
returned within 60 days of providing the report
to the establishment; and
(C) for which there are any outstanding
unimplemented recommendations, including the
aggregate potential cost savings of those
recommendations.
(11) a description and explanation of the reasons for
any significant revised management decision made during
the reporting period;
(12) information concerning any significant
management decision with which the Inspector General is
in disagreement;
(13) the information described under section 804(b)
of the Federal Financial Management Improvement Act of
1996;
(14)(A) an appendix containing the results of any
peer review conducted by another Office of Inspector
General during the reporting period; or
(B) if no peer review was conducted within that
reporting period, a statement identifying the date of
the last peer review conducted by another Office of
Inspector General;
(15) a list of any outstanding recommendations from
any peer review conducted by another Office of
Inspector General that have not been fully implemented,
including a statement describing the status of the
implementation and why implementation is not complete;
(16) a list of any peer reviews conducted by the
Inspector General of another Office of the Inspector
General during the reporting period, including a list
of any outstanding recommendations made from any
previous peer review (including any peer review
conducted before the reporting period) that remain
outstanding or have not been fully implemented;
(17) statistical tables showing--
(A) the total number of investigative reports
issued during the reporting period;
(B) the total number of persons referred to
the Department of Justice for criminal
prosecution during the reporting period;
(C) the total number of persons referred to
State and local prosecuting authorities for
criminal prosecution during the reporting
period; and
(D) the total number of indictments and
criminal informations during the reporting
period that resulted from any prior referral to
prosecuting authorities;
(18) a description of the metrics used for developing
the data for the statistical tables under paragraph
(17);
(19) a report on each investigation conducted by the
Office involving a senior Government employee where
allegations of misconduct were substantiated, including
a detailed description of--
(A) the facts and circumstances of the
investigation; and
(B) the status and disposition of the matter,
including--
(i) if the matter was referred to the
Department of Justice, the date of the
referral; and
(ii) if the Department of Justice
declined the referral, the date of the
declination;
(20) a detailed description of any instance of
whistleblower retaliation, including information about
the official found to have engaged in retaliation and
what, if any, consequences the establishment imposed to
hold that official accountable;
(21) a detailed description of any attempt by the
establishment to interfere with the independence of the
Office, including--
(A) with budget constraints designed to limit
the capabilities of the Office; and
(B) incidents where the establishment has
resisted or objected to oversight activities of
the Office or restricted or significantly
delayed access to information, including the
justification of the establishment for such
action[; and];
(22) detailed descriptions of the particular
circumstances of each--
(A) inspection, evaluation, and audit
conducted by the Office that is closed and was
not disclosed to the public; and
(B) investigation conducted by the Office
involving a senior Government employee that is
closed and was not disclosed to the public[.];
and
(23) a description of the use of subpoenas for the
attendance and testimony of certain witnesses
authorized under section 6A.
(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, inspection reports, and evaluation
reports and the dollar value of disallowed costs, for
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, inspection reports, and evaluation
reports and the dollar value of recommendations that
funds be put to better use by management agreed to in a
management decision, for 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 or 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, 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.
(4) Subject to any other provision of law that would
otherwise prohibit disclosure of such information, the
information described in paragraph (1) may be provided to any
Member of Congress upon request.
(5) An Office may not provide to Congress or the public any
information that reveals the personally identifiable
information of a whistleblower under this section unless the
Office first obtains the consent of the whistleblower.
(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;
(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; and
(7) the term ``senior Government employee'' means--
(A) an officer or employee in the executive
branch (including a special Government employee
as defined in section 202 of title 18, United
States Code) who occupies a position classified
at or above GS-15 of the General Schedule or,
in the case of positions not under the General
Schedule, for which the rate of basic pay is
equal to or greater than 120 percent of the
minimum rate of basic pay payable for GS-15 of
the General Schedule; and
(B) any commissioned officer in the Armed
Forces in pay grades O-6 and above.
* * * * * * *
SEC. 6A. ADDITIONAL AUTHORITY.
(a) Testimonial Subpoena Authority.--In addition to the
authority otherwise provided by this Act and in accordance with
the requirements of this section, each Inspector General, in
carrying out the provisions of this Act (or in the case of an
Inspector General or Special Inspector General not established
under this Act, the provisions of the authorizing statute), is
authorized to require by subpoena the attendance and testimony
of witnesses as necessary in the performance of the functions
assigned to the Inspector General by this Act (or in the case
of an Inspector General or Special Inspector General not
established under this Act, the functions assigned by the
authorizing statute), which in the case of contumacy or refusal
to obey, such subpoena shall be enforceable by order of any
appropriate United States district court. An Inspector General
may not require by subpoena the attendance and testimony of any
current Federal employees, but may use other authorized
procedures.
(b) Nondelegation.--The authority to issue a subpoena under
subsection (a) may not be delegated.
(c) Panel Review Before Issuance.--
(1) Approval required.--
(A) Request for approval by subpoena panel.--
Before the issuance of a subpoena described in
subsection (a), an Inspector General shall
submit a request for approval to issue a
subpoena to a panel (in this section, referred
to as the ``Subpoena Panel''), which shall be
comprised of three Inspectors General of the
Council of the Inspectors General on Integrity
and Efficiency, who shall be designated by the
Inspector General serving as Chairperson of the
Council.
(B) Protection from disclosure.--The
information contained in the request submitted
by an Inspector General under subparagraph (A)
and the identification of a witness shall be
protected from disclosure to the extent
permitted by law. Any request for disclosure of
such information shall be submitted to the
Inspector General requesting the subpoena.
(2) Time to respond.--
(A) In general.--Except as provided in
subparagraph (B), the Subpoena Panel shall
approve or deny a request for approval to issue
a subpoena not later than 10 days after the
submission of such request.
(B) Additional information for panel.--If the
Subpoena Panel determines that additional
information is necessary to approve or deny
such request, the Subpoena Panel shall request
such information and shall approve or deny such
request not later than 20 days after the
submission of such request.
(3) Denial by panel.--If a majority of the Subpoena
Panel denies the approval of a subpoena, that subpoena
may not be issued.
(d) Notice to Attorney General.--
(1) In general.--If the Subpoena Panel approves a
subpoena under subsection (c), the Inspector General
shall notify the Attorney General that the Inspector
General intends to issue the subpoena.
(2) Denial for interference with an ongoing
investigation.--Not later than 10 days after the date
on which the Attorney General is notified pursuant to
paragraph (1), the Attorney General may object to the
issuance of the subpoena because the subpoena will
interfere with an ongoing investigation and the
subpoena may not be issued.
(3) Issuance of subpoena approved.--If the Attorney
General does not object to the issuance of the subpoena
during the 10-day period described in paragraph (2),
the Inspector General may issue the subpoena.
(e) Regulations.--The Chairperson of the Council of the
Inspectors General on Integrity and Efficiency, in consultation
with the Attorney General, shall prescribe regulations to carry
out the purposes of this section.
(f) Inspector General Defined.--For purposes of this section,
the term ``Inspector General'' includes each Inspector General
established under this Act and each Inspector General or
Special Inspector General not established under this Act.
(g) Applicability.--The provisions of this section shall not
affect the exercise of authority by an Inspector General of
testimonial subpoena authority established under another
provision of law.
* * * * * * *
requirements for federal entities and designated federal entities
Sec. 8G. (a) Notwithstanding section 12 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 12(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 and the
Bureau of Consumer Financial Protection, the Board for
International Broadcasting, the Committee for Purchase
From People Who Are Blind or Severely Disabled, the
Commodity Futures Trading Commission, the Consumer
Product Safety Commission, the Corporation for Public
Broadcasting, the Defense Intelligence Agency, the
Equal Employment Opportunity Commission, the Farm
Credit Administration, the Federal Communications
Commission, the Federal Deposit Insurance Corporation,
the Federal Election Commission, the Election
Assistance Commission, the Federal Housing Finance
Board, the Federal Labor Relations Authority, the
Federal Maritime Commission, the Federal Trade
Commission, the Legal Services Corporation, the
National Archives and Records Administration, the
National Credit Union Administration, the National
Endowment for the Arts, the National Endowment for the
Humanities, the National Geospatial-Intelligence
Agency, 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 United
States International Trade Commission, the Postal
Regulatory 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 the board or commission of the
designated Federal entity, or in the event the
designated Federal entity does not have a board or
commission, 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--
(A) with respect to the National Science
Foundation, such term means the National
Science Board;
(B) with respect to the United States Postal
Service, such term means the Governors (within
the meaning of section 102(3) of title 39,
United States Code);
(C) with respect to the Federal Labor
Relations Authority, such term means the
members of the Authority (described under
section 7104 of title 5, United States Code);
(D) with respect to the Committee for
Purchase From People Who Are Blind or Severely
Disabled, such term means the Chairman of the
Committee for Purchase From People Who Are
Blind or Severely Disabled;
(E) with respect to the National Archives and
Records Administration, such term means the
Archivist of the United States;
(F) with respect to the National Credit Union
Administration, such term means the National
Credit Union Administration Board (described
under section 102 of the Federal Credit Union
Act (12 U.S.C. 1752a);
(G) with respect to the National Endowment of
the Arts, such term means the National Council
on the Arts;
(H) with respect to the National Endowment
for the Humanities, such term means the
National Council on the Humanities; and
(I) with respect to the Peace Corps, such
term means the Director of the Peace Corps;
(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 the date of the enactment of
this section, 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. Each Inspector General shall be
appointed without regard to political affiliation and solely on
the basis of integrity and demonstrated ability in accounting,
auditing, financial analysis, law, management analysis, public
administration, or investigations. For purposes of implementing
this section, the Chairman of the Board of Governors of the
Federal Reserve System shall appoint the Inspector General of
the Board of Governors of the Federal Reserve System and the
Bureau of Consumer Financial Protection. The Inspector General
of the Board of Governors of the Federal Reserve System and the
Bureau of Consumer Financial Protection shall have all of the
authorities and responsibilities provided by this Act with
respect to the Bureau of Consumer Financial Protection, as if
the Bureau were part of the Board of Governors of the Federal
Reserve System.
(d)(1) 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. Except as provided in paragraph (2), 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 subpoena during
the course of any audit or investigation.
(2)(A) The Secretary of Defense, in consultation with the
Director of National Intelligence, may prohibit the inspector
general of an element of the intelligence community specified
in subparagraph (D) from initiating, carrying out, or
completing any audit or investigation, or from accessing
information available to an element of the intelligence
community specified in subparagraph (D),, or from accessing
information available to an element of the intelligence
community specified in subparagraph (D), if the Secretary
determines that the prohibition is necessary to protect vital
national security interests of the United States.
(B) If the Secretary exercises the authority under
subparagraph (A), the Secretary shall submit to the committees
of Congress specified in subparagraph (E) an appropriately
classified statement of the reasons for the exercise of such
authority not later than 7 days after the exercise of such
authority.
(C) At the same time the Secretary submits under subparagraph
(B) a statement on the exercise of the authority in
subparagraph (A) to the committees of Congress specified in
subparagraph (E), the Secretary shall notify the inspector
general of such element of the submittal of such statement and,
to the extent consistent with the protection of intelligence
sources and methods, provide such inspector general with a copy
of such statement. Such inspector general may submit to such
committees of Congress any comments on a notice or statement
received by the inspector general under this subparagraph that
the inspector general considers appropriate.
(D) The elements of the intelligence community specified in
this subparagraph are as follows:
(i) The Defense Intelligence Agency.
(ii) The National Geospatial-Intelligence Agency.
(iii) The National Reconnaissance Office.
(iv) The National Security Agency.
(E) The committees of Congress specified in this subparagraph
are--
(i) the Committee on Armed Services and the Select
Committee on Intelligence of the Senate; and
(ii) the Committee on Armed Services and the
Permanent Select Committee on Intelligence of the House
of Representatives.
(e)(1) In the case of a designated Federal entity for which a
board, chairman of a committee, or commission is the head of
the designated Federal entity, a removal under this subsection
may only be made upon the written concurrence of a \2/3\
majority of the board, committee, or commission.''.
(2) 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
communicate in writing the reasons for any such removal or
transfer to both Houses of Congress, not later than 30 days
before the removal or transfer. Nothing in this subsection
shall prohibit a personnel action otherwise authorized by law,
other than transfer or removal.
(f)(1) For purposes of carrying out subsection (c) with
respect to the United States Postal Service, the appointment
provisions of section 202(e) of title 39, United States Code,
shall be applied.
(2) In carrying out the duties and responsibilities specified
in this Act, the Inspector General of the United States Postal
Service (hereinafter in this subsection referred to as the
``Inspector General'') shall have oversight responsibility for
all activities of the Postal Inspection Service, including any
internal investigation performed by the Postal Inspection
Service. The Chief Postal Inspector shall promptly report the
significant activities being carried out by the Postal
Inspection Service to such Inspector General.
(3)(A)(i) Notwithstanding subsection (d), the Inspector
General shall be under the authority, direction, and control of
the Governors with respect to audits or investigations, or the
issuance of subpoenas, which require access to sensitive
information concerning--
(I) ongoing civil or criminal investigations or
proceedings;
(II) undercover operations;
(III) the identity of confidential sources, including
protected witnesses;
(IV) intelligence or counterintelligence matters; or
(V) other matters the disclosure of which would
constitute a serious threat to national security.
(ii) With respect to the information described under clause
(i), the Governors 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 Governors determine that such
prohibition is necessary to prevent the disclosure of any
information described under clause (i) or to prevent the
significant impairment to the national interests of the United
States.
(iii) If the Governors exercise any power under clause (i) or
(ii), the Governors 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 Committee on Governmental
Affairs of the Senate and the Committee on Government Reform
and Oversight 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--
(i) may initiate, conduct and supervise such audits
and investigations in the United States Postal Service
as the Inspector General considers appropriate; and
(ii) shall give particular regard to the activities
of the Postal Inspection Service with a view toward
avoiding duplication and insuring effective
coordination and cooperation.
(C) Any report required to be transmitted by the Governors 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 Committee on
Governmental Affairs of the Senate and the Committee on
Government Reform and Oversight of the House of
Representatives.
(4) Nothing in this Act shall restrict, eliminate, or
otherwise adversely affect any of the rights, privileges, or
benefits of either employees of the United States Postal
Service, or labor organizations representing employees of the
United States Postal Service, under chapter 12 of title 39,
United States Code, the National Labor Relations Act, any
handbook or manual affecting employee labor relations with the
United States Postal Service, or any collective bargaining
agreement.
(5) As used in this subsection, the term ``Governors'' has
the meaning given such term by section 102(3) of title 39,
United States Code.
(6) There are authorized to be appropriated, out of
the Postal Service Fund, such sums as may be necessary
for the Office of Inspector General of the United
States Postal Service.
(g)(1) Sections 4, 5, 6 (other than subsections (a)(7) and
(a)(8) thereof), 6A, 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 8D
(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
Bureau of Consumer Financial Protection 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.
(4) Each Inspector General shall--
(A) in accordance with applicable laws and regulations
governing appointments within the designated Federal entity,
appoint a Counsel to the Inspector General who shall report to
the Inspector General;
(B) obtain the services of a counsel appointed by and
directly reporting to another Inspector General on a
reimbursable basis; or
(C) obtain the services of appropriate staff of the Council
of the Inspectors General on Integrity and Efficiency on a
reimbursable basis.
(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 if the designated
Federal entity is not a board or commission, include 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.
* * * * * * *
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