SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bonuses for Cost-Cutters Act of 
2013''.

SEC. 2. COST SAVINGS ENHANCEMENTS.

    (a) In General.--Section 4512 of title 5, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``or identification of surplus funds or 
                unnecessary budget authority'' after ``mismanagement'';
                    (B) in paragraph (2), by inserting ``or 
                identification'' after ``disclosure''; and
                    (C) in the matter following paragraph (2), by 
                inserting ``or identification'' after ``disclosure''; 
                and
            (2) by adding at the end the following:
    ``(c) The Inspector General of an agency or other agency employee 
designated under subsection (b) shall refer to the Chief Financial 
Officer of the agency any potential surplus funds or unnecessary budget 
authority identified by an employee, along with any recommendations of 
the Inspector General or other agency employee.
    ``(d)(1) If the Chief Financial Officer of an agency determines 
that rescission of potential surplus funds or unnecessary budget 
authority identified by an employee would not hinder the effectiveness 
of the agency, except as provided in subsection (e), the head of the 
agency shall transfer the amount of the surplus funds or unnecessary 
budget authority from the applicable appropriations account to the 
general fund of the Treasury.
    ``(2) Title X of the Congressional Budget and Impoundment Control 
Act of 1974 (2 U.S.C. 681 et seq.) shall not apply to transfers under 
paragraph (1).
    ``(3) Any amounts transferred under paragraph (1) shall be 
deposited in the Treasury and used for deficit reduction, except that 
in the case of a fiscal year for which there is no Federal budget 
deficit, such amounts shall be used to reduce the Federal debt (in such 
manner as the Secretary of the Treasury considers appropriate).
    ``(e) The head of an agency may retain not more than 10 percent of 
amounts to be transferred to the general fund of the Treasury under 
subsection (d) for the purpose of paying a cash award under subsection 
(a) to the employee who identified the surplus funds or unnecessary 
budget authority.
    ``(f)(1) The head of each agency shall submit to the Director of 
the Office of Personnel Management an annual report regarding--
            ``(A) each disclosure of possible fraud, waste, or 
        mismanagement or identification of potentially surplus funds or 
        unnecessary budget authority by an employee of the agency 
        determined by the agency to have merit;
            ``(B) the total savings achieved through disclosures and 
        identifications described in subparagraph (A); and
            ``(C) the number and amount of cash awards by the agency 
        under subsection (a).
    ``(2)(A) The head of each agency shall include the information 
described in paragraph (1) in each budget request of the agency 
submitted to the Office of Management and Budget as part of the 
preparation of the budget of the President submitted to Congress under 
section 1105(a) of title 31, United States Code.
    ``(B) The Director of the Office of Personnel Management shall 
submit to Congress and the Government Accountability Office an annual 
report on Federal cost saving and awards based on the reports submitted 
under subparagraph (A).
    ``(g) The Director of the Office of Personnel Management shall--
            ``(1) ensure that the cash award program of each agency 
        complies with this section; and
            ``(2) submit to Congress an annual certification indicating 
        whether the cash award program of each agency complies with 
        this section.
    ``(h) Not later than 3 years after the date of enactment of the 
Bonuses for Cost-Cutters Act of 2013, and every 3 years thereafter, the 
Comptroller General of the United States shall submit to Congress a 
report on the operation of the cost savings and awards program under 
this section, including any recommendations for legislative changes.''.
    (b) Officers Eligible for Cash Awards.--
            (1) In general.--Section 4509 of title 5, United States 
        Code, is amended to read as follows:
``Sec. 4509. Prohibition of cash award to certain officers
    ``(a) Definitions.--In this section, the term `agency'--
            ``(1) has the meaning given that term under section 551(1); 
        and
            ``(2) includes an entity described in section 4501(1).
    ``(b) Prohibition.--An officer may not receive a cash award under 
this subchapter if the officer--
            ``(1) serves in a position at level I of the Executive 
        Schedule;
            ``(2) is the head of an agency; or
            ``(3) is a commissioner, board member, or other voting 
        member of an independent establishment.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 45 of title 5, United States Code, is 
        amended by striking the item relating to section 4509 and 
        inserting the following:

``4509. Prohibition of cash award to certain officers.''.
Bonuses for Cost-Cutters Act of 2013 - Expands the awards program for disclosures by federal employees of fraud, waste, or mismanagement that result in cost savings to the employee's agency to include identification of surplus funds or unnecessary budget authority. Directs that any savings resulting from the identification of such funds or budget authority be deposited in the Treasury and used to reduce a budget deficit or the federal debt.  Prohibits the payment of awards to: (1) federal officers who serve in a position at level I of the Executive Schedule; (2) the head of an agency; or (3) a commissioner, board member, or other voting member of an independent establishment.
Bonuses for Cost-Cutters Act of 2013