SECTION 1. INSPECTOR GENERAL FOR THE FEDERAL BUREAU OF INVESTIGATION.

    (a) Short Title.--This Act may be cited as the ``Inspector General 
for the Federal Bureau of Investigation Act of 2001''.
    (b) Establishment of An Inspector General for the Federal Bureau of 
Investigation.--The matter following paragraph (3) of section 2 of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B); 
        and'' and inserting ``subparagraphs (A) and (B);'';
            (2) in subparagraph (B), by striking the period and 
        inserting ''; and''; and
            (3) by adding at the end the following:
                    ``(C) in the establishment of the Department of the 
                Justice--
                            ``(i) an Office of Inspector General of the 
                        Department of Justice; and
                            ``(ii) an Office of Inspector General for 
                        the Federal Bureau of Investigation.''.
    (c) Amendments to Section 8E of the Inspector General Act of 
1978.--
            (1) Limitation on authority of inspector general.--Section 
        8E(a) of the Inspector General Act of 1978 (5 U.S.C. App.) is 
        amended by adding at the end the following:
            ``(4) Paragraphs (1), (2), and (3) shall apply to the 
        Attorney General and the Director of the Federal Bureau of 
        Investigation, and the Inspector General for the Federal Bureau 
        of Investigation in the same manner and to the same extent as 
        such paragraphs apply to the Attorney General and the Inspector 
        General of the Department of Justice, respectively.''.
            (2) Duties of inspector general of the department of 
        justice; relationship to the inspector general for the federal 
        bureau of investigation.--Section 8E(b) of the Inspector 
        General Act of 1978 (5 U.S.C. App.) is amended--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively; and
                    (C) by adding at the end the following:
    ``(2) The Inspector General of the Department of Justice shall 
exercise all duties and responsibilities of an Inspector General for 
the Department of Justice other than the duties and responsibilities 
exercised by the Inspector General for the Federal Bureau of 
Investigation.
    ``(3) The Attorney General shall establish procedures under which 
the Inspector General of the Department of Justice and the Inspector 
General for the Federal Bureau of Investigation will--
            ``(A) determine how audits and investigations are allocated 
        in cases of overlapping jurisdiction; and
            ``(B) provide for coordination, cooperation, and efficiency 
        in the conduct of such audits and investigations.''.
            (3) Transmission of reports.--Section 8E(c) of the 
        Inspector General Act of 1978 (5 U.S.C. App.) is amended--
                    (A) by inserting ``(1)'' after ``(c)'';
                    (B) by striking ``Government Operations'' and 
                inserting ``Government Reform''; and
                    (C) by adding at the end the following:
    ``(2)(A) Any report made by the Inspector General for the Federal 
Bureau of Investigation that is required to be transmitted by the 
Attorney General to the appropriate committees or subcommittees of 
Congress under section 5(d) shall also be transmitted, within the 7-day 
period specified under such subsection, to the Director of the Federal 
Bureau of Investigation.
    ``(B) Subparagraph (A) shall not apply to any report the subject of 
which is the Director of the Federal Bureau of Investigation.''.
            (4) Inspector general for the federal bureau of 
        investigation.--Section 8E of the Inspector General Act of 1978 
        (5 U.S.C. App.) is amended by adding at the end the following:
    ``(d) The Inspector General for the Federal Bureau of Investigation 
shall exercise all duties and responsibilities of an Inspector General 
of an establishment with respect to the Department of Justice and the 
Attorney General on all matters relating to the Federal Bureau of 
Investigation. The Inspector General for the Federal Bureau of 
Investigation shall have sole authority under this Act to conduct an 
audit or investigation of the Director of the Federal Bureau of 
Investigation.
    ``(e) In addition to the requirements of the first sentence of 
section 3(a), the Inspector General for the Federal Bureau of 
Investigation should have demonstrated ability to lead a large and 
complex organization.
    ``(f) An individual appointed to the position of Inspector General 
for the Federal Bureau of Investigation, the Assistant Inspector 
General for Auditing of the Office of the Inspector General for the 
Federal Bureau of Investigation under section 3(d)(1), the Assistant 
Inspector General for Investigations of the Office of the Inspector 
General for the Federal Bureau of Investigation under section 3(d)(2), 
or any position of Deputy Inspector General of the Office of the 
Inspector General for the Federal Bureau of Investigation may not be an 
employee of the Federal Bureau of Investigation--
            ``(1) during the 2-year period preceding the date of 
        appointment to such position; or
            ``(2) during the 5-year period following the date such 
        individual ends service in such position.
    ``(g)(1) The Attorney General or the Director of the Federal Bureau 
of Investigation may request, in writing, the Inspector General for the 
Federal Bureau of Investigation to conduct an audit or investigation 
relating to the Federal Bureau of Investigation. If the Inspector 
General for the Federal Bureau of Investigation determines not to 
conduct such audit or investigation, the Inspector General shall timely 
provide a written explanation for such determination to the Attorney 
General or the Director of the Federal Bureau of Investigation.
    ``(2)(A) Any final report of an audit conducted by the Inspector 
General for the Federal Bureau of Investigation shall be timely 
submitted by the Inspector General to the Attorney General and the 
Director of the Federal Bureau of Investigation.
    ``(B) The Inspector General for the Federal Bureau of Investigation 
shall--
            ``(i) periodically submit to the Attorney General and the 
        Director of the Federal Bureau of Investigation a list of 
        investigations for which a final report has been completed by 
        the Inspector General; and
            ``(ii) provide a copy of any such report to--
                    ``(I) the Attorney General, upon the request of the 
                Attorney General; or
                    ``(II) the Director of the Federal Bureau of 
                Investigation, upon the request of the Director, unless 
                the subject of the report is the Director of the 
                Federal Bureau of Investigation.
    ``(C) This paragraph applies regardless of whether the applicable 
audit or investigation is requested under paragraph (1).''.
    (d) Transfer of Functions.--
            (1) In general.--Section 9(a)(1) of the Inspector General 
        Act of 1978 (5 U.S.C. App.) is amended in subparagraph (I)--
                    (A) by inserting ``(i)'' after ``(I)'';
                    (B) by inserting ``and'' after the semicolon; and
                    (C) by adding at the end the following:
                            ``(ii) of the Federal Bureau of 
                        Investigation, effective 180 days after the 
                        date of enactment of the Inspector General for 
                        the Federal Bureau of Investigation Act of 
                        2001, the division of such bureau referred to 
                        as the `Inspections Division' and that portion 
                        of each of the divisions or offices of such 
                        bureau which is engaged in internal audit and 
                        investigative activities;''.
            (2) Termination of office of the inspections division.--
        Effective upon the transfer of functions under the amendment 
        made by paragraph (1), the division of the Federal Bureau of 
        Investigation referred to as the ``Inspections Division'' and 
        the Federal Bureau of Investigation Office of Professional 
        Responsibility are terminated.
    (e) Audits and Reports of Agency Financial Statements.--Subject to 
section 3521(g) of title 31, United States Code--
            (1) the Inspector General of the Department of Justice 
        shall, subject to paragraph (2)--
                    (A) audit each financial statement in accordance 
                with section 3521(e) of such title; and
                    (B) prepare and submit each report required under 
                section 3521(f) of such title; and
            (2) the Inspector General for the Federal Bureau of 
        Investigation shall--
                    (A) audit that portion of each financial statement 
                referred to under paragraph (1)(A) that relates to 
                custodial and administrative accounts of the Federal 
                Bureau of Investigation; and
                    (B) prepare that portion of each report referred to 
                under paragraph (1)(B) that relates to custodial and 
                administrative accounts of the Federal Bureau of 
                Investigation.
    (f) Technical and Conforming Amendments.--
            (1) Amendments relating to references to the inspector 
        general of the department of justice.--
                    (A) Limitation on authority.--Section 8E(a) of the 
                Inspector General Act of 1978 (5 U.S.C. App.) is 
                amended--
                            (i) in the first sentence of paragraph (1), 
                        by inserting ``of the Department of the 
                        Justice'' after ``Inspector General'';
                            (ii) in paragraph (2), by inserting ``of 
                        the Department of Justice'' after ``prohibit 
                        the Inspector General''; and
                            (iii) in paragraph (3)--
                                    (I) in the first sentence, by 
                                inserting ``of the Department of 
                                Justice'' after ``notify the Inspector 
                                General''; and
                                    (II) in the second sentence, by 
                                inserting ``of the Department of 
                                Justice'' after ``notice, the Inspector 
                                General''.
                    (B) Duties.--Section 8E(b) of the Inspector General 
                Act of 1978 (5 U.S.C. App.) is amended--
                            (i) in paragraph (1), by striking ``the 
                        Inspector General'' and inserting ``such 
                        Inspector General''; and
                            (ii) in paragraph (2), by inserting ``of 
                        the Department of Justice'' after ``Inspector 
                        General''.
            (2) Employee or contractor complaints.--Section 8H(a)(1)(B) 
        of the Inspector General Act of 1978 (5 U.S.C. App.) is amended 
        by striking ``Department of Justice'' and inserting ``Federal 
        Bureau of Investigation''.
          (3) Executive schedule level iv position.--Section 5315 of 
        title 5, United States Code, is amended by inserting after the 
        item relating to the Inspector General, Department of Justice 
        the following:
            ``Inspector General, Federal Bureau of Investigation.''.
    (g) Effective Date.--This Act shall take effect 180 days after the 
date of enactment of this Act.
Inspector General for the Federal Bureau of Investigation Act of 2001 - Amends the Inspector General Act of 1978 to establish in the Department of Justice (DOJ) an Office of Inspector General for the Federal Bureau of Investigation (FBI). Requires the Attorney General to establish procedures under which the Inspectors General for DOJ and the FBI provide for the allocation of audits and investigations in cases of overlapping jurisdiction. Outlines required duties of the Inspector General, including FBI audits and investigations. Transfers appropriate functions to such Inspector General.
A bill to amend the Inspector General Act of 1978 (5 U.S.C. App.) to establish an Inspector General for the Federal Bureau of Investigation, and for other purposes.