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[House Report 112-635]
[From the U.S. Government Printing Office]


112th Congress                                            Rept. 112-635
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
                      TAXPAYERS RIGHT-TO-KNOW ACT

                                _______
                                

 July 31, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Issa, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3609]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Oversight and Government Reform, to whom was 
referred the bill (H.R. 3609) to provide taxpayers with an 
annual report disclosing the cost of, performance by, and areas 
for improvements for Government programs, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     4
Section-by-Section...............................................     5
Explanation of Amendments........................................     6
Committee Consideration..........................................     6
Roll Call Votes..................................................     6
Application of Law to the Legislative Branch.....................     7
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     7
Statement of General Performance Goals and Objectives............     7
Federal Advisory Committee Act...................................     7
Unfunded Mandate Statement.......................................     7
Committee Estimate...............................................     7
Budget Authority and Congressional Budget Office Cost Estimate...     7
Additional Views.................................................    10
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SEC. 1. SHORT TITLE.

  This Act may be cited as the ``Taxpayers Right-To-Know Act''.

SEC. 2. AGENCY REQUIREMENTS RELATING TO ANNUAL REPORT ON THE COST AND 
                    PERFORMANCE OF GOVERNMENT PROGRAMS AND AREAS OF 
                    DUPLICATION AMONG PROGRAMS.

  (a) Requirement To Identify and Describe Programs.--On an annual 
basis, for purposes of the report required by subsection (b), the head 
of each agency shall--
          (1) identify and describe every program administered by the 
        agency;
          (2) for each such program--
                  (A) determine the total administrative expenses of 
                the program;
                  (B) determine the expenditures for services for the 
                program;
                  (C) estimate the number of clients served by the 
                program and beneficiaries who received assistance under 
                the program (if applicable); and
                  (D) estimate--
                          (i) the number of full-time employees who 
                        administer the program; and
                          (ii) the number of full-time equivalents 
                        (whose salary is paid in part or full by the 
                        Federal Government through a grant or contract, 
                        a subaward of a grant or contract, a 
                        cooperative agreement, or another form of 
                        financial award or assistance) who assist in 
                        administering the program; and
          (3) identify programs within the agency with duplicative or 
        overlapping missions, services, and allowable uses of funds.
  (b) Report.--Not later than February 1 of each fiscal year, the head 
of each agency shall create a link on the homepage of the official 
public website of the agency to a report containing the following:
          (1) Identification and description of programs.--The 
        information required under subsection (a) with respect to the 
        preceding fiscal year.
          (2) Performance reviews.--The latest performance reviews 
        (including the program performance reports required under 
        section 1116 of title 31, United States Code) of each program 
        of the agency identified under subsection (a)(1), including 
        performance indicators, performance goals, output measures, and 
        other specific metrics used to review the program and how the 
        program performed on each.
          (3) Improper payment information.--For all programs and 
        activities that may be susceptible to significant improper 
        payments, as identified by the head of the agency under section 
        2(a) of the Improper Payments Information Act of 2002 (31 
        U.S.C. 321 note), the latest improper payment rate and the 
        total estimated amount of improper payments during the 
        preceding fiscal year, including fraudulent payments and 
        overpayments.
          (4) Expired grant funding.--The total amount of undisbursed 
        grant funding remaining in grant accounts for which the period 
        of availability to the grantee has expired.
          (5) Recommendations.--Such recommendations as the head of the 
        agency considers appropriate--
                  (A) to consolidate programs within the agency that 
                are duplicative or overlapping;
                  (B) to eliminate waste and inefficiency; and
                  (C) to terminate lower priority, outdated, and 
                unnecessary programs and initiatives.
  (c) Relationship to Catalog of Domestic Financial Assistance.--With 
respect to the requirements of subsections (a)(1) and (a)(2)(B), the 
head of an agency may use the same information provided in the Catalog 
of Domestic Financial Assistance if applicable.
  (d) Format.--Each agency shall make reports required by subsection 
(b) available in a searchable, machine-readable format, and shall 
expend no funds for the printing of such reports, except when providing 
such documents to the Congress.

SEC. 3. OFFICE OF MANAGEMENT AND BUDGET REQUIREMENTS RELATING TO ANNUAL 
                    REPORT ON THE COST AND PERFORMANCE OF GOVERNMENT 
                    PROGRAMS AND AREAS OF DUPLICATION AMONG PROGRAMS.

  (a) Report by Office of Management and Budget.--Not later than 
February 1 of each fiscal year, the Director of the Office of 
Management and Budget shall publish on the official public website of 
the Office of Management and Budget a report containing the following:
          (1) Identification of duplicative programs.--An 
        identification of programs across agencies with duplicative or 
        overlapping missions, services, and allowable uses of funds.
          (2) Recommendations.--Such recommendations as the Director 
        considers appropriate--
                  (A) to consolidate programs across agencies that are 
                duplicative or overlapping;
                  (B) to eliminate waste and inefficiency; and
                  (C) to terminate lower priority, outdated, and 
                unnecessary programs and initiatives.
  (b) Relationship to President's Budget.--With respect to the 
requirements of subsection (a)(2), the Director may use the same 
information provided in the President's annual budget submission, if 
applicable.

SEC. 4. DEFINITIONS.

  In this Act:
          (1) Administrative costs.--The term ``administrative costs'' 
        has the meaning as determined by the Director of the Office of 
        Management and Budget under section 504(b)(2) of Public Law 
        111-85 (31 U.S.C. 1105 note), except the term shall also 
        include, for purposes of that section and this section, with 
        respect to an agency--
                  (A) costs incurred by the agency as well as costs 
                incurred by grantees, subgrantees, and other recipients 
                of funds from a grant program or other program 
                administered by the agency; and
                  (B) expenses related to personnel salaries and 
                benefits, property management, travel, program 
                management, promotion, reviews and audits, case 
                management, and communication about, promotion of, and 
                outreach for programs and program activities 
                administered by the agency.
          (2) Services.--The term ``services'' has the meaning provided 
        by the Director of the Office of Management and Budget and 
        shall be limited to only activities, assistance, and aid that 
        provide a direct benefit to a recipient, such as the provision 
        of medical care, assistance for housing or tuition, or 
        financial support (including grants and loans).
          (3) Agency.--The term ``agency'' has the same meaning given 
        that term in section 551(1) of title 5, United States Code, 
        except that the term also includes offices in the legislative 
        branch other than the Government Accountability Office.
          (4) Performance indicator, performance goal, output measure, 
        program activity.--The terms ``performance indicator'', 
        ``performance goal'', ``output measure'', and ``program 
        activity'' have the meanings provided by section 1115 of title 
        31, United States Code.
          (5) Program.--The term ``program'' has the meaning provided 
        by the Director of the Office of Management and Budget and 
        shall include, with respect to an agency, any organized set of 
        activities directed toward a common purpose or goal undertaken 
        by the agency that includes services, projects, processes, or 
        financial or other forms of assistance, including grants, 
        contracts, cooperative agreements, compacts, loans, leases, 
        technical support, consultation, or other guidance.

SEC. 5. CLASSIFIED INFORMATION.

  Nothing in this Act shall be construed to require the disclosure of 
classified information.

SEC. 6. REGULATIONS AND IMPLEMENTATION.

  (a) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall prescribe regulations to implement this Act.
  (b) Implementation.--This Act shall be implemented beginning with the 
first full fiscal year occurring after the date of the enactment of 
this Act.

  Amend the title so as to read:

    A bill to provide taxpayers with an annual report disclosing the 
cost and performance of Government programs and areas of duplication 
among them.

                     COMMITTEE STATEMENT AND VIEWS

                          PURPOSE AND SUMMARY

    H.R. 3609, the Taxpayers Right-To-Know Act, is designed to 
significantly reduce waste, misspending, and inefficiency 
throughout the Federal Government. The Federal Government 
wastes billions of dollars annually by operating programs that 
have duplicative, overlapping, or fragmented missions. Some 
experts estimate the annual cost of government duplication at 
$100 billion or more.
    The Taxpayers Right-To-Know Act provides information on 
government programs, spending, and duplication. The bill 
establishes several reporting requirements for agencies to 
better identify inefficiencies. Each agency is required to 
catalogue the programs it oversees, providing information on 
program cost and costs attributable to administrative overhead. 
Each agency is also required to evaluate its programs, 
collectively, for duplication and overlap.
    Agencies are further required to make recommendations to 
consolidate duplicative or overlapping programs, eliminate 
waste and inefficiency, and terminate unnecessary, outdated, or 
low priority programs. The Office of Management and Budget is 
required to issue an annual report identifying duplication of 
programs across agencies, and to provide consolidation 
recommendations. All the reports and recommendations required 
by the bill are to be made available to the public in an 
accessible online format.

                  BACKGROUND AND NEED FOR LEGISLATION

    Now more than ever, agencies must do a better job of 
managing their programs and identifying areas where taxpayer 
dollars are not being used efficiently. The Taxpayers Right-To-
Know Act provides the American people with vital information on 
government spending and program management. Access to this 
information will help reduce duplication and ensure that the 
government is providing services in an efficient manner.
    In 2010, Senator Coburn added to a bill raising the Federal 
debt limit an amendment requiring the U.S. Government 
Accountability Office to report on duplication and overlap 
across the Federal Government. Consequently, GAO now submits an 
annual report to Congress identifying specific areas of 
duplication and ways to realize cost savings.
    GAO identified 81 areas of duplication and potential cost 
savings in its first report, issued in 2011. This year, it 
found 51 new areas of waste and duplication across the Federal 
government, identifying billions of dollars of waste that could 
easily be prevented. While GAO's recommendations are a start 
toward making government more efficient and cost effective, 
government agencies are uniquely positioned to also assume 
responsibility for identifying unnecessary duplication. It is 
the Federal agencies that actually administer programs on a 
day-to-day basis. This level of intimacy with individual 
programs and their stakeholders provides senior civil servants 
at each agency with specialized knowledge that should be 
brought to bear in the effort to eliminate program duplication.
    The Oversight and Government Reform Committee held several 
hearings on program duplication during the 112th Congress. On 
March 3, 2011, the Full Committee held a hearing entitled, 
``Refuse of the Federal Spending Binge II: How U.S. Taxpayers 
are Paying Double for Failing Government Programs.'' In this 
hearing, the Committee discussed the 2011 GAO report, which 
identified 81 examples of duplication in government including 
programs related to tax benefits, military spending, food 
safety, economic development, and biological terror threats. 
One year later on February 28, 2012, the Full Committee 
reviewed the 2012 GAO report outlining continued duplication 
within the Federal government at a hearing entitled, 
``Government 2.0: GAO Unveils New Duplicative Program Report.'' 
This report identified 51 additional areas of duplication 
including defense procurement, financial literacy, information 
technology investments, revenue collection and fraud detection 
in key entitlement programs. The Committee also held two 
subcommittee hearings about government duplication with 
narrower breadth: one hearing concerned duplication in social 
welfare programs, and another concerned duplicative information 
technology investments.

                          LEGISLATIVE HISTORY

    H.R. 3609 was introduced by Representative Lankford on 
December 8, 2011. The bill was referred to the Oversight and 
Government Reform Committee. A companion bill, S. 1957, was 
introduced by Senator Coburn on December 7, 2011. S. 1957 was 
referred to the Senate Homeland Security and Governmental 
Affairs Committee.

                           SECTION-BY-SECTION

    A section-by-section summary of the amendment in the nature 
of a substitute (ANS) adopted during the Full Committee 
business meeting follows:

Section 1. Short title

    This Act may be cited as the ``Taxpayers Right-To-Know 
Act.''

Section 2. Agency requirements relating to annual report on the cost 
        and performance of government programs and areas of duplication 
        among programs

    This section of the bill requires agencies to provide 
information on the programs they administer and on any 
duplication or overlap among such programs. For every program 
it administers, each agency must identify and describe the 
program, its cost, the number of full-time equivalent employees 
responsible for its administration, and the estimated number of 
people served. Each agency is further directed to identify and 
report on any programs with duplicative or overlapping 
functions.
    Each agency is required to post the aforementioned 
information annually on a publicly accessible page on its 
website--accessible via a link on the agency's home page. For 
each of its programs, each agency must also post the most 
recent performance reviews, and report on any expired grant 
funding. For susceptible programs, each agency must also 
provide an estimate of the volume of improper payments made.
    In addition to reporting on programs and duplication, 
agencies are directed to provide recommendations to consolidate 
duplicative or overlapping programs, eliminate waste and 
inefficiency, and terminate programs that are deemed 
unnecessary, outdated, or low priority.

Section 3. Office of Management and Budget requirements relating to 
        annual report on the cost and performance of government 
        programs and areas of duplication among programs

    This section requires the Director of the Office of 
Management and Budget (OMB) to publish an annual report 
identifying programs across government that have duplicative or 
overlapping services. The report will provide recommendations 
to consolidate duplicative and overlapping programs, eliminate 
waste, and terminate unnecessary, outdated, or low priority 
programs.

Section 4. Definitions

    The section defines administrative costs, services, agency, 
performance, and programs, as established by statute and OMB 
guidance.

Section 5. Classified information

    This section specifies that the Act does not require the 
disclosure of classified information.

Section 6. Regulations and implementation

    This section requires the OMB Director to prescribe 
regulations within 120 days of enactment in order to implement 
the Taxpayers Right-To-Know Act at the inception of the first 
full fiscal year after the date of enactment.

                       EXPLANATION OF AMENDMENTS

    The provisions of Representative Lankford's ANS adopted 
during the Committee Business Meeting are explained in the 
Section-by-Section above.
    Representative Quigley introduced an amendment to section 2 
of H.R. 3609 that would require every agency to create a 
permanent web page to allow the public to enter his or her 
total tax payment and calculate how much of that payment is 
used to fund each program at every Federal agency. The 
amendment was defeated by a recorded vote of 17 ayes to 19 
nays, with one member voting ``present.''

                        COMMITTEE CONSIDERATION

    On April 26, 2012, the Committee met in open session and 
ordered reported favorably the bill, H.R. 3609, as amended, by 
voice vote, a quorum being present.

                            ROLL CALL VOTES

    1. Mr. Quigley offered an amendment to the Lankford ANS to 
insert a new subsection, ``Taxpayer Receipt.'' The amendment 
was defeated by a recorded vote of 17 Yeas to 19 Nays, with one 
voting ``Present.''
    Yeas: Amash, Meehan, Cummings, Towns, Norton, Kucinich, 
Tierney, Clay, Lynch, Cooper, Connolly, Quigley, Davis, Braley, 
Welch, Yarmuth and Murphy.
    Nays: Issa, Burton, Mica, Turner, Jordan, Chaffetz, Mack, 
Walberg, Lankford, Buerkle, Gosar, Labrador, DesJarlais, Walsh, 
Gowdy, Ross, Guinta, Farenthold and Kelly.
    Present: Speier.

              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 establishes several reporting requirements for 
agencies to better identify inefficiencies. As such this bill 
does not relate to employment or access to public services and 
accommodations.

  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 descriptive portions of 
this report.

         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 
goals and objectives are reflected in the descriptive portions 
of this report.

                     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 5 U.S.C. App., Section 5(b).

                       UNFUNDED MANDATE STATEMENT

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         EARMARK IDENTIFICATION

    H.R. 3609 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           COMMITTEE ESTIMATE

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3609. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 3609 from the Director of 
Congressional Budget Office:

                                                      July 2, 2012.
Hon. Darrell Issa,
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. 3609, the 
Taxpayers Right-To-Know Act.
    If you wish further details on this estimate, we will be 
pleased to rovide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 3609--Taxpayers Right-To-Know Act

    Summary: H.R. 3609 would require government agencies to 
identify and describe each program they administer, the cost to 
administer the program, expenditures for services, the number 
of program beneficiaries, and the number of Federal employees 
and contract staff involved. Under the bill, that information 
would be posted on each agency's Web site. In addition, H.R. 
3609 would require an annual report by the Office of Management 
and Budget that identifies duplicative Federal programs.
    Based on information from several agencies, CBO estimates 
that implementing H.R. 3609 would cost around $100 million over 
the 2013-2017 period, assuming appropriation of the necessary 
amounts. Enacting the bill could affect direct spending by 
agencies not funded through annual appropriations; therefore, 
pay-as-you-go procedures apply. CBO estimates, however, that 
any net increase in spending by those agencies would be 
negligible. Enacting H.R. 3609 would not affect revenues.
    H.R. 3609 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3609 is shown in the following table. 
The costs of this legislation fall within all budget functions 
that include spending on administrative activities.

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                                                                          2013-
                                                              2013     2014     2015     2016     2017     2017
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level.............................       30       30       20       10       10      100
Estimated Outlays.........................................       30       30       20       10       10      100
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of fiscal year 2012, that the 
necessary amounts will be appropriated each year, and that 
spending will follow historical patterns for salaries and 
expenses related to modifying Federal reporting systems.
    Under current law, agencies regularly produce various types 
of management information on their programs, budgets, strategic 
plans, and annual performance reports. A recent amendment to 
the Government Performance and Results Act (GPRA) will require 
agencies to describe every program they administer. 
Consequently, CBO expects that some of the requirements of H.R. 
3609 would codify or only slightly modify current agency-
reporting requirements.
    However, the legislation would add significant new 
reporting requirements for agencies, including reports on the 
total administrative costs and the total costs of contract 
services for each Federal program. Currently, the Catalog of 
Federal Domestic Assistance (CFDA) lists more than 2,200 
programs, projects, services, and activities that provide 
assistance or benefits to the public. H.R. 3609 would apply to 
the CFDA list of programs as well as any government service, 
process, grant, contract, cooperative expense, compact, loan, 
lease, or agency guidance. Based on information from the Office 
of Management and Budget and selected agencies about the costs 
to implement reporting requirements in the Government 
Performance and Results Act and the American Recovery and 
Reinvestment Act of 2009, CBO estimates that assembling that 
information at this level of detail would cost around $100 
million over the 2013-2017 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Enacting H.R. 3609 could affect direct spending by 
agencies not funded through the appropriation process, but CBO 
estimates that such effects would not be significant in any 
year. Enacting H.R. 3609 would not affect revenues.
    Intergovernmental and Private-Sector Impact: H.R. 3609 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Any costs to state and local governments would 
result from complying with conditions of assistance.
    Estimate prepared by: Federal costs: Matthew Pickford; 
Impact on state, local, and tribal governments: Elizabeth Cove 
Delisle; Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                            ADDITIONAL VIEWS

    This bill will place an unnecessary burden on agencies. It 
requires agencies to report a significant amount of information 
which will require substantial agency resources. The bill does 
not authorize any additional funding to assist with agency 
compliance.
    This legislation is also duplicative as some of the 
information agencies already report under requirements in other 
laws. For example, the bill requires agencies to report 
information on improper payments made by the agency. The 
Improper Payments Information Act of 2002 already requires 
agencies to report information on their improper payments. 
Additionally, the bill requires duplicative reporting of 
performance information required by the GPRA Modernization Act 
of 2010.
    Some of the requirements of this legislation are unclear. 
The bill requires every agency to estimate the number of 
clients served by every program administered by the agency. 
However, the bill does not define the term ``client.''
    This legislation should be streamlined to ensure that it 
will improve transparency without compromising efficiency.

                                                Elijah E. Cummings.

                                  
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