II

106TH CONGRESS

1ST SESSION S. 870

To amend the Inspector General Act of 1978 (5 U.S.C. App.) to increase

the efficiency and accountability of Offices of Inspector General within

Federal departments, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 22, 1999

Ms. COLLINS (for herself, Mr. ROTH, Mr. GRASSLEY, and Mr. BOND) introduced the following bill; which was read twice and referred to the Committee on Governmental Affairs

A BILL

To amend the Inspector General Act of 1978 (5 U.S.C.

App.) to increase the efficiency and accountability of

Offices of Inspector General within Federal departments,

and for other purposes.

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 ‘‘Inspector General Act

5 Amendments of 1999’’.

6 SEC. 2. APPOINTMENT AND REMOVAL OF OFFICERS.

7 (a) IN GENERAL.—Section 3(a) of the Inspector Gen8 eral Act of 1978 (5 U.S.C. App.) is amended—
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1 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

2 (2) by adding at the end the following new

3 paragraph:

4 ‘‘(2)(A) Each appointment under this subsection

5 shall be for a term of 9 years. An individual may serve

6 more than 1 term.

7 ‘‘(B) An individual may continue to serve as Inspec8 tor General beyond the expiration of the term until a suc9 cessor is appointed and has qualified, except that such in10 dividual may not continue to serve for more than 1 year

11 after the date on which the term would otherwise expire

12 under this paragraph.’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 this section shall take effect on the date of enactment of

15 this Act and shall apply only to an appointment made on

16 or after such date.

17 SEC. 3. PROHIBITION OF CASH BONUS OR AWARDS.

18 Section 3 of the Inspector General Act of 1978 (5

19 U.S.C. App.) is amended by adding at the end the fol20 lowing:

21 ‘‘(e) An Inspector General (as defined under section

22 8G(a)(2)(6) or 11(3)) may not receive any cash award or

23 cash bonus, including any cash award under chapter 45

24 of title 5, United States Code.’’.
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1 SEC. 4. EXTERNAL REVIEWS.

2 (a) IN GENERAL.—Section 4 of the Inspector General

3 Act of 1978 (5 U.S.C. App.) is amended by inserting at

4 the end the following:

5 ‘‘(e)(1)(A) Not less than every 3 years an external

6 review shall be conducted of each Office defined under sec7 tions 11(4) and 8G(5).

8 ‘‘(B) The Inspector General of each Office defined

9 under sections 11(4) and 8G(5) shall arrange with the

10 General Accounting Office or an appropriate private entity

11 for the conduct of the review.

12 ‘‘(C) If an Inspector General contracts with a private

13 entity for a review under this subsection, the private entity

14 shall be contracted in accordance with section 303 of the

15 Federal Property and Administrative Services Act of 1949

16 (41 U.S.C. 253).

17 ‘‘(2) At a minimum, an external review under this

18 subsection shall evaluate whether the Office of Inspector

19 General properly manages and controls—

20 ‘‘(A) contracts awarded by the Office of Inspec21 tor General, including a determination of whether—

22 ‘‘(i) procedures used to procure contracts

23 are in accordance with applicable laws and reg24 ulations; and

25 ‘‘(ii) costs incurred are reasonable and al26 lowable under the terms of each contract;
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1 ‘‘(B) appropriated funds, including a deter2 mination of whether training and travel funds are

3 expended in accordance with applicable laws and

4 regulations; and

5 ‘‘(C) personnel actions, including a determina6 tion of whether hiring and promotion practices used

7 and performance awards issued are in accordance

8 with applicable laws and regulations.

9 ‘‘(3) Not later than 30 calendar days after the com10 pletion of an external review, a report of the results shall

11 be submitted to the head of the establishment and simulta12 neously to the appropriate committees or subcommittees

13 of Congress.’’.

14 (b) TECHNICAL AND CONFORMING AMENDMENT.—

15 The section heading for section 4 of the Inspector General

16 Act of 1978 (5 U.S.C. App.) is amended to read as follows:

17 ‘‘DUTIES AND RESPONSIBILITIES; REPORT OF CRIMINAL

18 VIOLATIONS TO ATTORNEY GENERAL; EXTERNAL RE19 VIEWS’’.

20 SEC. 5. ANNUAL REPORTS.

21 (a) IN GENERAL.—Section 5(a) of the Inspector Gen22 eral Act of 1978 (5 U.S.C. App.) is amended—

23 (1) by striking the first sentence and inserting

24 ‘‘Each Inspector General shall, not later than Octo25 ber 31 of each year, prepare annual reports summa26 rizing the activities and accomplishments of the Of-
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1 fice during the immediately preceding 12-month pe2 riod ending September 30.’’;

3 (2) by striking paragraphs (1) through (12)

4 and inserting the following:

5 ‘‘(1) a summary of the program areas within

6 the establishment identified by the Inspector General

7 as high risk because of vulnerabilities to waste,

8 fraud, abuse, and mismanagement;

9 ‘‘(2) a description of the most significant au10 dits, investigations (administrative, civil, and crimi11 nal), and evaluations and inspections completed dur12 ing the reporting period;

13 ‘‘(3) a summary of each report made to the

14 head of the establishment under section 6(b)(2) dur15 ing the reporting period;

16 ‘‘(4) a table showing—

17 ‘‘(A)(i) the total number of final audit re18 ports issued by the Office of Inspector General;

19 and

20 ‘‘(ii) the financial benefits associated with

21 the reports segregated by category, such as

22 budget reductions, costs avoided, questioned

23 costs, and revenue enhancements; and

24 ‘‘(B) corrective actions taken and program

25 improvements made during the reporting period
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1 in response to either an Office of Inspector

2 General audit finding or recommendation (ex3 cluding any recommendation included under

4 subparagraph (A) with respect to such correc5 tive actions);

6 ‘‘(5) a table showing—

7 ‘‘(A) the judicial and administrative ac8 tions associated with investigations conducted

9 by the Office of Inspector General;

10 ‘‘(B) the number of—

11 ‘‘(i) cases referred for criminal pros12 ecution, civil remedies, or administrative

13 actions;

14 ‘‘(ii) cases presented but declined for

15 prosecution, segregated by criminal and

16 civil;

17 ‘‘(iii) cases accepted for prosecution

18 (both Federal and State), segregated by

19 criminal and civil;

20 ‘‘(iv) defendants indicted;

21 ‘‘(v) defendants convicted;

22 ‘‘(vi) defendants acquitted or charges

23 dismissed after indictment;

24 ‘‘(vii) defendants sentenced to terms

25 of imprisonment;
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1 ‘‘(viii) defendants sentenced to terms

2 of probation; and

3 ‘‘(ix) suspensions, disbarments, exclu4 sions, sanctions, or some other similar ad5 ministrative action; and

6 ‘‘(C) the total amount of fines, restitu7 tions, and recoveries;

8 ‘‘(6) a description of the organization and man9 agement structure of the Office of Inspector Gen10 eral, including—

11 ‘‘(A) an organization chart showing the

12 major components of the Office;

13 ‘‘(B) a statistical table showing the num14 ber of authorized full-time equivalent positions

15 segregated by component and by headquarters

16 and field office; and

17 ‘‘(C) the amount of funding received in

18 prior and current fiscal years;

19 ‘‘(7) a table showing—

20 ‘‘(A) the number of contracts, and associ21 ated dollar value, awarded on a noncompetitive

22 basis by the Office of Inspector General; and

23 ‘‘(B) with respect to any individual con24 tract valued over $100,000, awarded on a non25 competitive basis—
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1 ‘‘(i) the name of the contractor;

2 ‘‘(ii) statement of work;

3 ‘‘(iii) the time period of the contract;

4 and

5 ‘‘(iv) the dollar amount of the con6 tract;

7 ‘‘(8)(A) a summary of each audit report issued

8 in previous reporting periods for which no manage9 ment decision has been made by the end of the re10 porting period (including the date and title of each

11 such report);

12 ‘‘(B) an explanation of the reasons such man13 agement decision has not been made; and

14 ‘‘(C) a statement concerning the desired time15 table for achieving a management decision on each

16 such report;’’;

17 (3) by redesignating paragraph (13) as para18 graph (9);

19 (4) in paragraph (9) (as redesignated by para20 graph (3) of this subsection)—

21 (A) by striking ‘‘section 05(b)’’ and insert22 ing ‘‘section 804(b)’’; and

23 (B) by striking the period and inserting a

24 semicolon and ‘‘and’’; and
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1 (5) by adding at the end the following new

2 paragraph:

3 ‘‘(10) any other information that the Inspector

4 General determines appropriate to include in the an5 nual report.’’.

6 (b) SEMIANNUAL REPORTS.—Section 5 of the Inspec7 tor General Act of 1978 (5 U.S.C. App.) is amended—

8 (1) by redesignating subsection (f) as sub9 section (g); and

10 (2) by inserting after subsection (e) the fol11 lowing:

12 ‘‘(f)(1) Subject to paragraph (4), in addition to any

13 annual report required to be furnished and transmitted

14 under subsection (b), an Inspector General shall prepare

15 and submit a report described under paragraph (2) to—

16 ‘‘(A) the applicable congressional committee, if

17 the chairman or ranking member of a congressional

18 committee with appropriate jurisdiction submits a

19 written request to such Inspector General; or

20 ‘‘(B) to the Comptroller General of the United

21 States if the Comptroller General submits a written

22 request to such Inspector General.

23 ‘‘(2) A report referred to under paragraph (1) shall—

24 ‘‘(A) contain the information required for an

25 annual report under subsection (a); and
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1 ‘‘(B) summarize the activities of the Office dur2 ing the 6-month period ending on March 31 of the

3 calendar year following the date on which the re4 quest is made.

5 ‘‘(3) A report under this subsection shall be sub6 mitted on April 30 of the calendar year following the date

7 on which the request is made.

8 ‘‘(4) An Inspector General shall not be required to

9 submit a report under this subsection if the written re10 quest for such report is submitted to the Inspector General

11 after November 30 of the calendar year preceding the date

12 on which the report is otherwise required to be submitted

13 to a congressional committee or the Comptroller Gen14 eral.’’.

15 (c) SUBMISSION OF OTHER REPORTS.—Nothing in

16 the amendments made by this section shall be construed

17 to limit an Inspector General from submitting any report

18 containing in whole or part information required in an an19 nual or semiannual report furnished and transmitted

20 under section 5 of the Inspector General Act of 1978 (5

21 U.S.C. App.) to Congress more frequently than on an an22 nual or semiannual basis.

23 (d) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) Section 4(a)(2) of the Inspector General Act

2 of 1978 (5 U.S.C. App.) is amended by striking

3 ‘‘semiannual’’ and inserting ‘‘annual’’.

4 (2) Section 5 of the Inspector General Act of

5 1978 (5 U.S.C. App.) is amended—

6 (A) in subsection (b)—

7 (i) by striking ‘‘Semiannual’’ and in8 serting ‘‘Annual’’; and

9 (ii) by striking ‘‘April 30 and’’; and

10 (B) in subsection (c)—

11 (i) in the first sentence by striking

12 ‘‘semiannual’’ and inserting ‘‘annual’’; and

13 (ii) in the second sentence by striking

14 ‘‘semiannual’’ and inserting ‘‘annual’’.

15 (3) Section 8(f) of the Inspector General Act of

16 1978 (5 U.S.C. App.) is amended by striking ‘‘semi17 annual’’ and inserting ‘‘annual’’.

18 (4) Section 8A(c) of the Inspector General Act

19 of 1978 (5 U.S.C. App.) is amended by striking

20 ‘‘semiannual’’ and inserting ‘‘annual’’.

21 SEC. 6. INSPECTORS GENERAL AT LEVEL III OF EXECUTIVE

22 SCHEDULE.

23 (a) LEVEL IV POSITIONS.—Section 5315 of title 5,

24 United States Code, is amended by striking each item re25 lating to the following positions:
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1 (1) Inspector General, Department of Edu2 cation.

3 (2) Inspector General, Department of Energy.

4 (3) Inspector General, Department of Health

5 and Human Services.

6 (4) Inspector General, Department of Agri7 culture.

8 (5) Inspector General, Department of Housing

9 and Urban Development.

10 (6) Inspector General, Department of Labor.

11 (7) Inspector General, Department of Trans12 portation.

13 (8) Inspector General, Department of Veterans

14 Affairs.

15 (9) Inspector General, Department of Defense.

16 (10) Inspector General, United States Informa17 tion Agency.

18 (11) Inspector General, Department of State.

19 (12) Inspector General, Department of Com20 merce.

21 (13) Inspector General, Department of the In22 terior.

23 (14) Inspector General, Department of Justice.

24 (15) Inspector General, Department of the

25 Treasury.
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1 (16) Inspector General, Agency for Inter2 national Development.

3 (17) Inspector General, Environmental Protec4 tion Agency.

5 (18) Inspector General, Federal Emergency

6 Management Agency.

7 (19) Inspector General, General Services Ad8 ministration.

9 (20) Inspector General, National Aeronautics

10 and Space Administration.

11 (21) Inspector General, Nuclear Regulatory

12 Commission.

13 (22) Inspector General, Office of Personnel

14 Management.

15 (23) Inspector General, Railroad Retirement

16 Board.

17 (24) Inspector General, Small Business Admin18 istration.

19 (25) Inspector General, Federal Deposit Insur20 ance Corporation.

21 (26) Inspector General, Resolution Trust Cor22 poration.

23 (27) Inspector General, Central Intelligence

24 Agency.
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1 (28) Inspector General, Social Security Admin2 istration.

3 (29) Inspector General, United States Postal

4 Service.

5 (b) LEVEL III POSITIONS.—Section 5314 of title 5,

6 United States Code, is amended by adding at the end the

7 following:

8 ‘‘Inspector General, Department of Education.

9 ‘‘Inspector General, Department of Energy.

10 ‘‘Inspector General, Department of Health and

11 Human Services.

12 ‘‘Inspector General, Department of Agriculture.

13 ‘‘Inspector General, Department of Housing

14 and Urban Development.

15 ‘‘Inspector General, Department of Labor.

16 ‘‘Inspector General, Department of Transpor17 tation.

18 ‘‘Inspector General, Department of Veterans

19 Affairs.

20 ‘‘Inspector General, Department of Defense.

21 ‘‘Inspector General, Department of State.

22 ‘‘Inspector General, Department of Commerce.

23 ‘‘Inspector General, Department of the Interior.

24 ‘‘Inspector General, Department of Justice.
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1 ‘‘Inspector General, Department of the Treas2 ury.

3 ‘‘Inspector General, Agency for International

4 Development.

5 ‘‘Inspector General, Corporation for Community

6 and National Service.

7 ‘‘Inspector General, Environmental Protection

8 Agency.

9 ‘‘Inspector General, Federal Emergency Man10 agement Agency.

11 ‘‘Inspector General, General Services Adminis12 tration.

13 ‘‘Inspector General, National Aeronautics and

14 Space Administration.

15 ‘‘Inspector General, Nuclear Regulatory Com16 mission.

17 ‘‘Inspector General, Office of Personnel Man18 agement.

19 ‘‘Inspector General, Railroad Retirement

20 Board.

21 ‘‘Inspector General, Small Business Administra22 tion.

23 ‘‘Inspector General, Federal Deposit Insurance

24 Corporation.
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1 ‘‘Inspector General, Central Intelligence Agen2 cy.

3 ‘‘Inspector General, Social Security Administra4 tion.

5 ‘‘Inspector General, United States Postal Serv6 ice.’’.

7 (c) SAVINGS PROVISION.—Nothing in this section

8 shall have the effect of reducing the rate of pay of any

9 individual serving as an Inspector General on the effective

10 date of this section.

11 SEC. 7. OFFICES OF INSPECTOR GENERAL IN CERTAIN DES12 IGNATED FEDERAL ENTITIES.

13 (a) TRANSFER OF FUNCTIONS.—Section 9(a)(1) of

14 the Inspector General Act of 1978 is amended—

15 (1) in subparagraph (J)—

16 (A) by inserting ‘‘(i)’’ after ‘‘(J)’’;

17 (B) by inserting ‘‘and’’ after the semicolon;

18 and

19 (C) by adding at the end the following:

20 ‘‘(ii) of the Department of Labor, the

21 Office of Inspector General of the Pensions

22 Benefit Guaranty Corporation, effective 30

23 days after the date of enactment of the In24 spector General Act Amendments of

25 1999;’’;
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1 (2) in subparagraph (K)—

2 (A) by inserting ‘‘(i)’’ after ‘‘(K)’’;

3 (B) by inserting ‘‘and’’ after the semicolon;

4 and

5 (C) by adding at the end the following:

6 ‘‘(ii) of the Department of Transpor7 tation, the Office of Inspector General of

8 the Federal Maritime Commission, effec9 tive 30 days after the date of enactment of

10 the Inspector General Act Amendments of

11 1999;’’; and

12 (3) in subparagraph (R)—

13 (A) by inserting ‘‘(i)’’ after ‘‘(R)’’;

14 (B) by inserting ‘‘and’’ after the semicolon;

15 and

16 (C) by adding at the end the following:

17 ‘‘(ii) of the Office of Personnel Man18 agement, the Office of Inspector General of

19 the Federal Labor Relations Authority, ef20 fective 30 days after the date of enactment

21 of the Inspector General Act Amendments

22 of 1999;’’.

23 (b) ADMINISTRATIVE PROVISIONS.—
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1 (1) TERMINATION OF OFFICES.—The Office of

2 Inspector General of each designated Federal entity

3 transferred under subsection (a) is terminated.

4 (2) INCUMBENTS.—The individual who is the

5 Inspector General of a designated Federal entity

6 transferred under subsection (a)—

7 (A) shall be transferred to the Office of In8 spector General of the applicable establishment;

9 (B) shall be an employee of such Office

10 under the direction of the Inspector General of

11 the applicable establishment; and

12 (C) shall continue to be compensated at

13 not less than the rate provided for before such

14 transfer, for at least 1 year after the date of

15 such transfer.

16 (3) PERSONNEL AND ASSETS.—Section 9 (b)

17 and (c) of the Inspector General Act of 1978 (5

18 U.S.C. App.) shall apply to the transfers made by

19 the amendments under subsection (a) of this section.

20 (c) FORMER DESIGNATED FEDERAL ENTITY.—Sec21 tion 8G(a)(2) of the Inspector General Act of 1978 (5

22 U.S.C. App.) is amended by striking ‘‘the Corporation for

23 Public Broadcasting, the Equal Employment Opportunity

24 Commission, the Farm Credit Administration, the Federal

25 Communications Commission, the Federal Election Com-
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1 mission, the Federal Housing Finance Board, the Federal

2 Labor Relations Authority, the Federal Maritime Commis3 sion, the Federal Trade Commission, the Legal Services

4 Corporation, the National Archives and Records Adminis5 tration, the National Credit Union Administration, the

6 National Endowment for the Arts, the National Endow7 ment for the Humanities, the National Labor Relations

8 Board, the National Science Foundation, the Panama

9 Canal Commission, the Peace Corps, the Pension Benefit

10 Guaranty Corporation,’’ and inserting ‘‘the Corporation

11 for Public Broadcasting, the Equal Employment Oppor12 tunity Commission, the Farm Credit Administration, the

13 Federal Communications Commission, the Federal Elec14 tion Commission, the Federal Housing Finance Board, the

15 Federal Trade Commission, the Legal Services Corpora16 tion, the National Archives and Records Administration,

17 the National Credit Union Administration, the National

18 Endowment for the Arts and the National Endowment for

19 the Humanities, the National Labor Relations Board, the

20 National Science Foundation, the Panama Canal Commis21 sion, the Peace Corps,’’.

22 (d) AMENDMENTS RELATING TO SPECIAL PROVI23 SIONS CONCERNING FORMER DESIGNATED FEDERAL EN24 TITIES.—
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1 (1) RULE OF CONSTRUCTION OF SPECIAL PRO2 VISIONS.—Section 8I of the Inspector General Act of

3 1978 (5 U.S.C. App.) (relating to rule of construc4 tion of special provisions) is amended—

5 (A) by striking ‘‘SEC. 8I’’ and inserting

6 ‘‘SEC. 8K’’; and

7 (B) by striking all beginning with ‘‘special

8 provisions’’ through ‘‘of this Act’’ and inserting

9 ‘‘special provisions under section 8, 8A, 8B, 8C,

10 8D, 8E, 8F, or 8H of this Act.’’.

11 (2) SPECIAL PROVISIONS CONCERNING FORMER

12 DESIGNATED FEDERAL ENTITIES.—The Inspector

13 General Act of 1978 (5 U.S.C. App.) is amended by

14 inserting after section 8H the following:

15 ‘‘SPECIAL PROVISIONS CONCERNING FORMER

16 DESIGNATED FEDERAL ENTITIES

17 ‘‘SEC. 8I. (a) For purposes of this section, the term—

18 ‘‘(1) ‘establishment’ means any establishment

19 to which an office is transferred under section

20 9(a)(1) (J), (K), or (R); and

21 ‘‘(2) ‘former designated Federal entity’ means a

22 designated Federal entity from which any office is

23 transferred under section 9(a)(1) (J), (K), or (R).

24 ‘‘(b) The Office of Inspector General of each estab25 lishment shall perform all duties, responsibilities, and

26 functions of an Office of Inspector General under this Act
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1 with respect to each applicable former designated Federal

2 entity.

3 ‘‘(c) The Inspector General of an establishment shall

4 prepare and submit an annual report under section 5 re5 lating to each applicable former designated Federal entity

6 to the head of such former designated Federal entity.

7 ‘‘(d) In the administration of section 5(d) with re8 spect to a former designated Federal entity—

9 ‘‘(1) the Inspector General shall make the re10 quired report to the head of such former designated

11 Federal entity instead of the head of the establish12 ment; and

13 ‘‘(2) the head of such former designated Fed14 eral entity shall make the required transmittal to

15 Congress.

16 ‘‘(e) The head of each former designated Federal en17 tity shall provide the Office of the Inspector General of

18 the applicable establishment with such office space, equip19 ment, supplies, facilities, and services as may be nec20 essary, in the same manner as provided under section 6(c).

21 ‘‘SPECIAL PROVISIONS CONCERNING THE NATIONAL EN22 DOWMENT FOR THE ARTS AND THE NATIONAL EN23 DOWMENT FOR THE HUMANITIES

24 ‘‘SEC. 8J. For purposes of this Act—
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1 ‘‘(1) the National Endowment for the Arts and

2 the National Endowment for the Humanities shall

3 be treated as a single designated Federal entity;

4 ‘‘(2) subject to paragraph (3), the heads of the

5 designated Federal entities of the National Endow6 ment for the Arts and the National Endowment for

7 the Humanities (as determined under section 8H)

8 shall jointly exercise all functions of the head of a

9 designated Federal entity; and

10 ‘‘(3) in the appointment of a single Inspector

11 General for the National Endowment for the Arts

12 and the National Endowment for the Humanities,

13 the heads of such designated Federal entities shall

14 consult with the Deputy Director for Management of

15 the Office of Management and Budget.’’.

16 (e) EFFECTIVE DATE.—The amendments made by

17 this section shall take effect 30 days after the date of en18 actment of this Act.

Æ