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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4735 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  2d Session
                                S. 4735

     To address recommendations made to Congress by the Government 
Accountability Office as detailed in its annual report on duplication, 
          fragmentation, and overlap, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 24, 2020

 Ms. Hassan (for herself and Mr. Paul) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
     To address recommendations made to Congress by the Government 
Accountability Office as detailed in its annual report on duplication, 
          fragmentation, and overlap, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Acting on the Annual Duplication 
Report Act of 2020''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) The annual reports prepared by the Comptroller General 
        of the United States under section 21 of the Joint Resolution 
        entitled ``Joint Resolution increasing the statutory limit on 
        the public debt'', approved February 12, 2010 (13 U.S.C. 712 
        note), have produced approximately $429,000,000,000 in 
        financial benefits for the Federal Government.
            (2) 2020 marks the tenth year that the Comptroller General 
        has prepared this valuable report, and during that time, 
        agencies have made significant progress fully or partially 
        addressing the over 900 actions identified by the Comptroller 
        General in the past decade.
            (3) The 2020 report entitled ``Additional Opportunities to 
        Reduce Fragmentation, Overlap, and Duplication and Achieve 
        Billions in Financial Benefits'' (GAO-20-2440SP) identified 168 
        new actions that Congress or the executive branch can take to 
        improve efficiency and effectiveness across the Federal 
        Government, and potentially to save tens of billions of 
        dollars.
            (4) Those financial benefits cannot be realized without 
        full implementation of the actions and recommendations set 
        forth by the Comptroller General.
            (5) Of the 168 new actions, several require legislation to 
        be fully implemented, including--
                    (A) requiring the Secretary of the Treasury to set 
                cybersecurity standards for third-party tax preparation 
                companies to better protect taxpayer information, as 
                well as requiring the Commissioner of the Internal 
                Revenue Service to organize and coordinate all aspects 
                of the Service's efforts to protect taxpayer 
                information received from third-party preparers;
                    (B) requiring the Secretary of the Department of 
                Housing and Urban Development to evaluate and report to 
                Congress on the adequacy of the Government National 
                Mortgage Association's guaranty fee for single-family 
                mortgage-backed securities to provide capital reserves 
                to endure losses, as well as the Government National 
                Mortgage Association's reliance on contractors and 
                their associated costs; and
                    (C) requiring the Secretary of the Navy to submit 
                reports to Congress if a critical cost estimate breach 
                occurs within the major defense ship acquisition 
                program.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) it is the responsibility of Congress and the executive 
        branch to take action to implement recommendations made in the 
        annual reports of the Government Accountability Office on 
        reducing duplication, fragmentation, and overlap in Federal 
        programs to be good stewards of taxpayer dollars by achieving 
        significant savings and avoiding wasteful spending; and
            (2) legislation and adequate resources are needed to ensure 
        that all potential financial benefits are realized from the 
        implementation of those recommendations.

SEC. 3. PROTECTING THE SECURITY OF TAXPAYER INFORMATION HELD BY THIRD-
              PARTY PROVIDERS BY IMPROVING COORDINATION AND 
              ESTABLISHING MINIMUM SECURITY REQUIREMENTS TO REDUCE 
              FRAGMENTATION.

    (a) Regulation of Security Requirements for Tax Return Preparers 
and Authorized e-File Providers.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of the Treasury (or 
        the Secretary's delegate) shall prescribe standards for the 
        security of return information and information technology 
        systems that are consistent with security standards issued by 
        the National Institute for Standards and Technology.
            (2) Penalty for failure to secure information.--
                    (A) In general.--Section 6695 of the Internal 
                Revenue Code of 1986 is amended by redesignating 
                subsection (h) as subsection (i) and by inserting after 
                subsection (g) the following new subsection:
    ``(h) Failure To Comply With Electronic Return Security 
Standards.--Any person who is authorized by the Secretary to provide 
electronic filing services and who fails to secure return information 
and information technology standards in such manner as prescribed by 
the Secretary shall pay a penalty of $500 for each such failure. The 
maximum penalty imposed under this subsection on any person with 
respect to any calendar year shall not exceed $25,000.''.
                    (B) Inflation adjustment.--Section 6695(i) of such 
                Code, as redesignated by subparagraph (A), is amended--
                            (i) by redesignating paragraph (2) as 
                        paragraph (3);
                            (ii) by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) Failure to comply with security standards.--In the 
        case of any failure described in subsection (h) in a calendar 
        year beginning after 2021, each of the dollar amounts under 
        subsection (h) shall be increased by an amount equal to such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) for the calendar year 
        determined by substituting `calendar year 2020' for `calendar 
        year 2016' in subparagraph (A)(ii) thereof.''; and
                            (iii) in paragraph (3) (as redesignated by 
                        clause (i)), by striking ``paragraph (1)'' and 
                        inserting ``paragraph (1) or (2)''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to failures described in section 
                6695(h) of the Internal Revenue Code of 1986 (as added 
                by subparagraph (A)) after the date that is 60 days 
                after the date the Secretary prescribes the standards 
                required under paragraph (1).
    (b) Coordination of Taxpayer Information Security.--Not later than 
180 days after the date of enactment of this Act, the Commissioner of 
Internal Revenue shall develop an organizational plan to create a 
centralized body or other governance structure to coordinate all 
aspects of the Internal Revenue Service's efforts to protect return 
information while being held or transmitted by those authorized by the 
Internal Revenue Service to provide electronic filing services. The 
Commissioner shall transmit the organizational plan to the Committee on 
Finance of the Senate, the Committee on Homeland Security and 
Governmental Affairs of the Senate, the Committee on Ways and Means of 
the House of Representatives, and the Committee on Oversight and Reform 
of the House of Representatives.

SEC. 4. OPTIMIZING REVENUE INTAKE AND SAVING TAXPAYER DOLLARS AT GINNIE 
              MAE BY ASSESSING CURRENT PRACTICES AND EXPLORING 
              ALTERNATIVE GOVERNANCE STRUCTURES TO PROVIDE BETTER 
              OVERSIGHT.

    (a) Definitions.--In this section--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committee on Financial Services of the 
                House of Representatives; and
                    (D) the Committee on Oversight and Reform of the 
                House of Representatives;
            (2) the term ``Association'' means the Government National 
        Mortgage Association; and
            (3) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
    (b) Guaranty Fee Study and Report.--Not later than 1 year after the 
date of enactment of this Act, the Secretary shall conduct a study and 
submit to the appropriate congressional committees and the Comptroller 
General of the United States a report on the adequacy of the guaranty 
fee of the Association for single-family mortgage-backed securities, 
which shall--
            (1) evaluate the extent to which the level of the guaranty 
        fee for single-family mortgage-backed securities provides the 
        Association with sufficient reserves to cover potential losses 
        under different economic scenarios, including adverse 
        scenarios, based on an actuarial or similar analysis;
            (2) identify the types of standards that the Association 
        could use to set the guaranty fee for single-family mortgage-
        backed securities and evaluate which standard or standards 
        would enable the Association to set the guaranty fee at an 
        appropriate level in line with the mission of the Association;
            (3) assess the benefits and costs of adopting a risk-based 
        guaranty fee for single-family mortgage-backed securities that 
        imposes a higher fee on higher risk issuers;
            (4) analyze how and to what extent an increase in the 
        guaranty fee (for all issuers and a subset of riskier issuers) 
        would affect borrowers' financing, closing, and other related 
        costs for federally insured mortgage loans; and
            (5) if warranted, include recommendations for any necessary 
        amendments to the National Housing Act (12 U.S.C. 1701 et seq.) 
        to change the guaranty fee for single-family mortgage-backed 
        securities, including for establishing a standard under which 
        the Association can determine the level of the guaranty fee for 
        single-family mortgage-backed securities.
    (c) Reliance on Contractors Study and Report.--Not later than 1 
year after the date of enactment of this Act, the Secretary shall 
conduct a study and submit to the appropriate congressional committees 
and the Comptroller General of the United States a report evaluating 
the workforce composition of the Association in consideration of the 
critical functions of the Association, which shall--
            (1) analyze--
                    (A) the number of Federal employees and contractors 
                by type of role or position that the Association uses 
                to perform compliance, risk management, and other 
                critical functions, and the cost of a full-time 
                equivalent Federal employee versus a contractor for 
                comparable roles or positions;
                    (B) the extent to which the Association could use 
                Federal employees instead of contractors by role or 
                position to perform critical functions;
                    (C) the types and amounts of costs that the 
                Association could save by using Federal employees 
                instead of contractors, where possible, to perform 
                critical functions, such as savings from differences in 
                pay and not having to oversee contractors;
                    (D) whether the Association would face any legal or 
                other obstacles in using Federal employees instead of 
                contractors to perform critical functions; and
                    (E) the potential negative and positive effects of 
                using Federal employees instead of contractors on the 
                ability of the Association to achieve the mission of 
                the Association; and
            (2) if warranted, include recommendations for any necessary 
        amendments to the National Housing Act (12 U.S.C. 1701 et seq.) 
        to change the funding structure of the Association.
    (d) Compensation Structure Study and Report.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall conduct a 
study and submit to the appropriate congressional committees and the 
Comptroller General of the United States a report evaluating the 
workforce challenges of the Association, which shall--
            (1) analyze, quantitatively to the extent possible, the 
        challenges of the Association in hiring and retaining staff, 
        including compensation, during the 3-year period preceding the 
        report;
            (2) identify and summarize the options that the Association 
        has pursued within existing authorities to address the staffing 
        challenges of the Association, including which agencies or 
        offices were involved, and the key decisions and outcomes of 
        those efforts;
            (3) identify options that the Association did not pursue 
        within existing authorities to address the staffing challenges 
        of the Association and the reasons for not pursuing those 
        options;
            (4) identify and evaluate options outside of existing 
        authorities that the Association could use to address the 
        staffing challenges of the Association and the potential 
        benefits and costs of those options; and
            (5) if warranted, include recommendations for any necessary 
        amendments to the National Housing Act (12 U.S.C. 1701 et seq.) 
        to change how the Government National Mortgage Association sets 
        compensation.
    (e) Review of Reforms to Ginnie Mae's Organizational and Oversight 
Structure.--The Comptroller General of the United States shall conduct 
a study and submit to the appropriate congressional committees a report 
on alternate ways of overseeing the Association to address increasing 
risks, which shall--
            (1) review the reports submitted by the Secretary under 
        subsections (b), (c), and (d) to determine if the reports 
        addressed the required provisions and assess any 
        recommendations made in those reports;
            (2) identify key challenges or constraints that the 
        Association has faced under the governance and funding 
        structure of the Association as a government corporation within 
        the Department of Housing and Urban Development;
            (3) identify alternative models under which the governance 
        and funding structure of the Association could be reorganized 
        to better support housing policy priorities in the United 
        States and to ensure that the Association fulfilling the role 
        of increasing liquidity in the housing finance market while 
        also minimizing risk to the taxpayer;
            (4) evaluate the potential positive and negative impacts of 
        the models described in paragraph (3) on the Association, the 
        Department of Housing and Urban Development, and other 
        stakeholders;
            (5) obtain input from relevant stakeholders, such as 
        Federal entities, lenders, issuers, investors, affordable 
        housing advocates, and researchers, on reforms to the 
        organizational and oversight structure of the Association;
            (6) consider the housing finance system and ways in which 
        alternative oversight structures of the Association could 
        impact the system; and
            (7) review such other information as the Comptroller 
        General determines relevant.

SEC. 5. CONTROLLING UNANTICIPATED SUSTAINMENT COSTS ASSOCIATED WITH 
              NAVY MAJOR DEFENSE SHIP ACQUISITION PROGRAMS THROUGH 
              ROBUST OVERSIGHT.

    (a) In General.--Chapter 144 of title 10, United States Code, is 
amended by inserting after section 2433a the following new section:
``Sec. 2433b. Critical operating and support cost estimate growth in 
              Navy shipbuilding programs
    ``(a) Reporting.--Not later than 180 days after identifying a 
critical operating and support cost estimate breach in a Department of 
the Navy major defense ship acquisition program, the Secretary of the 
Navy shall submit to the Committee on Armed Services and Committee on 
Homeland Security and Governmental Affairs of the Senate and the 
Committee on Armed Services and Committee on Oversight and Reform of 
the House of Representatives a report that includes the following:
            ``(1) A determination and documentation of the root cause 
        or causes of the critical operating and support cost estimate 
        growth.
            ``(2) A reassessment of the program's operating and support 
        cost estimate that includes a new manpower analysis, 
        incorporates available actual cost data, and includes a 
        sensitivity analysis of key assumptions.
            ``(3) A plan to reduce the estimated operating and support 
        costs, including the amount that could be reduced and the 
        trade-offs or challenges in making these reductions.
            ``(4) A reassessment of the program's ability to meet any 
        changes to the program's sustainment key performance parameter 
        related to operational availability and materiel availability.
            ``(5) A determination to terminate or modify the program or 
        a certification that the program continues to be essential to 
        national security and that the program will meet its planned 
        requirements.
    ``(b) Definitions.--In this section--
            ``(1) the term `average annual operating and support costs 
        per ship' means the total operating support costs associated 
        with a program, divided by the number of hulls, multiplied by 
        the years of service life described in the original Baseline 
        Estimate;
            ``(2) the term `critical operating and support cost 
        estimate growth' means growth that exceeds the operating and 
        support cost estimate thresholds by at least 30 percent, as 
        stated in terms of constant base years dollars, over the 
        average annual operating and support costs per ship as derived 
        from the original Baseline Estimate for the program, during the 
        period the Navy submits Selected Acquisition Reports or 
        alternatives to the Selected Acquisition Reports in accordance 
        with section 2432 of this title; and
            ``(3) the term `major defense ship acquisition program' 
        means any Department of the Navy shipbuilding program with 
        estimated costs equivalent to the dollar thresholds for a major 
        defense acquisition program under section 2430 of this 
        title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by inserting after the item 
relating to section 2433a the following new item:

``2433b. Critical operating and support cost estimate growth in Navy 
                            shipbuilding programs.''.
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