II 

113TH CONGRESS 

1ST SESSION S. 643 

To strengthen employee cost savings suggestions programs within the Federal 

Government. 

IN THE SENATE OF THE UNITED STATES 

MARCH 21, 2013 

Mr. PAUL (for himself, Mr. BEGICH, and Mr. CHAMBLISS) introduced the following bill; which was read twice and referred to the Committee on 

Homeland Security and Governmental Affairs 

A BILL 

To strengthen employee cost savings suggestions programs 

within the Federal Government. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bonuses for Cost-Cut5 ters Act of 2013’’. 

6 SEC. 2. COST SAVINGS ENHANCEMENTS. 

7 (a) IN GENERAL.—Section 4512 of title 5, United 

8 States Code, is amended— 

9 (1) in subsection (a)— 


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1 (A) in the matter preceding paragraph (1), 

2 by inserting ‘‘or identification of surplus funds 

3 or unnecessary budget authority’’ after ‘‘mis4 management’’; 

5 (B) in paragraph (2), by inserting ‘‘or 

6 identification’’ after ‘‘disclosure’’; and 

7 (C) in the matter following paragraph (2), 

8 by inserting ‘‘or identification’’ after ‘‘disclo9 sure’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(c) The Inspector General of an agency or other 

12 agency employee designated under subsection (b) shall 

13 refer to the Chief Financial Officer of the agency any po14 tential surplus funds or unnecessary budget authority 

15 identified by an employee, along with any recommenda16 tions of the Inspector General or other agency employee. 

17 ‘‘(d)(1) If the Chief Financial Officer of an agency 

18 determines that rescission of potential surplus funds or 

19 unnecessary budget authority identified by an employee 

20 would not hinder the effectiveness of the agency, except 

21 as provided in subsection (e), the head of the agency shall 

22 transfer the amount of the surplus funds or unnecessary 

23 budget authority from the applicable appropriations ac24 count to the general fund of the Treasury. 


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1 ‘‘(2) Title X of the Congressional Budget and Im2 poundment Control Act of 1974 (2 U.S.C. 681 et seq.) 

3 shall not apply to transfers under paragraph (1). 

4 ‘‘(3) Any amounts transferred under paragraph (1) 

5 shall be deposited in the Treasury and used for deficit re6 duction, except that in the case of a fiscal year for which 

7 there is no Federal budget deficit, such amounts shall be 

8 used to reduce the Federal debt (in such manner as the 

9 Secretary of the Treasury considers appropriate). 

10 ‘‘(e) The head of an agency may retain not more than 

11 10 percent of amounts to be transferred to the general 

12 fund of the Treasury under subsection (d) for the purpose 

13 of paying a cash award under subsection (a) to the em14 ployee who identified the surplus funds or unnecessary 

15 budget authority. 

16 ‘‘(f)(1) The head of each agency shall submit to the 

17 Director of the Office of Personnel Management an annual 

18 report regarding— 

19 ‘‘(A) each disclosure of possible fraud, waste, or 

20 mismanagement or identification of potentially sur21 plus funds or unnecessary budget authority by an 

22 employee of the agency determined by the agency to 

23 have merit; 


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1 ‘‘(B) the total savings achieved through disclo2 sures and identifications described in subparagraph 

3 (A); and 

4 ‘‘(C) the number and amount of cash awards by 

5 the agency under subsection (a). 

6 ‘‘(2)(A) The head of each agency shall include the 

7 information described in paragraph (1) in each budget re8 quest of the agency submitted to the Office of Manage9 ment and Budget as part of the preparation of the budget 

10 of the President submitted to Congress under section 

11 1105(a) of title 31, United States Code. 

12 ‘‘(B) The Director of the Office of Personnel Manage13 ment shall submit to Congress and the Government Ac14 countability Office an annual report on Federal cost sav15 ing and awards based on the reports submitted under sub16 paragraph (A). 

17 ‘‘(g) The Director of the Office of Personnel Manage18 ment shall— 

19 ‘‘(1) ensure that the cash award program of 

20 each agency complies with this section; and 

21 ‘‘(2) submit to Congress an annual certification 

22 indicating whether the cash award program of each 

23 agency complies with this section. 

24 ‘‘(h) Not later than 3 years after the date of enact25 ment of the Bonuses for Cost-Cutters Act of 2013, and 


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1 every 3 years thereafter, the Comptroller General of the 

2 United States shall submit to Congress a report on the 

3 operation of the cost savings and awards program under 

4 this section, including any recommendations for legislative 

5 changes.’’. 

6 (b) OFFICERS ELIGIBLE FOR CASH AWARDS.— 

7 (1) IN GENERAL.—Section 4509 of title 5, 

8 United States Code, is amended to read as follows: 

9 ‘‘§ 4509. Prohibition of cash award to certain officers 

10 ‘‘(a) DEFINITIONS.—In this section, the term ‘agen11 cy’— 

12 ‘‘(1) has the meaning given that term under 

13 section 551(1); and 

14 ‘‘(2) includes an entity described in section 

15 4501(1). 

16 ‘‘(b) PROHIBITION.—An officer may not receive a 

17 cash award under this subchapter if the officer— 

18 ‘‘(1) serves in a position at level I of the Execu19 tive Schedule; 

20 ‘‘(2) is the head of an agency; or 

21 ‘‘(3) is a commissioner, board member, or other 

22 voting member of an independent establishment.’’. 

23 (2) TECHNICAL AND CONFORMING AMEND24 MENT.—The table of sections for chapter 45 of title 

25 5, United States Code, is amended by striking the 


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1 item relating to section 4509 and inserting the fol2 lowing: 

‘‘4509. Prohibition of cash award to certain officers.’’. 

Æ 


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