II 

114TH CONGRESS 

1ST SESSION S. 1378 

To strengthen employee cost savings suggestions programs within the Federal 

Government. 

IN THE SENATE OF THE UNITED STATES 

MAY 19, 2015 

Mr. PAUL (for himself, Mr. WARNER, Mr. ENZI, Mr. GARDNER, and Mr. 

TOOMEY) 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 2015’’. 

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)(1) The head of an agency may retain not more 

11 than 10 percent of amounts to be transferred to the gen12 eral fund of the Treasury under subsection (d). 

13 ‘‘(2) Amounts retained by the head of an agency 

14 under paragraph (1) may be— 

15 ‘‘(A) used for the purpose of paying a cash 

16 award under subsection (a) to 1 or more employees 

17 who identified the surplus funds or unnecessary 

18 budget authority; and 

19 ‘‘(B) to the extent amounts remain after paying 

20 cash awards under subsection (a), transferred or re21 programmed for use by the agency, in accordance 

22 with any limitation on such a transfer or reprogram23 ming under any other provision of law. 


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

2 Director of the Office of Personnel Management an annual 

3 report regarding— 

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

5 mismanagement or identification of potentially sur6 plus funds or unnecessary budget authority by an 

7 employee of the agency determined by the agency to 

8 have merit; 

9 ‘‘(B) the total savings achieved through disclo10 sures and identifications described in subparagraph 

11 (A); and 

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

13 the agency under subsection (a). 

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

15 information described in paragraph (1) in each budget re16 quest of the agency submitted to the Office of Manage17 ment and Budget as part of the preparation of the budget 

18 of the President submitted to Congress under section 

19 1105(a) of title 31, United States Code. 

20 ‘‘(B) The Director of the Office of Personnel Manage21 ment shall submit to the Committee on Appropriations of 

22 the Senate, the Committee on Appropriations of the House 

23 of Representatives, and the Government Accountability 

24 Office an annual report on Federal cost saving and awards 

25 based on the reports submitted under subparagraph (A). 


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1 ‘‘(g) The Director of the Office of Personnel Manage2 ment shall— 

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

4 each agency complies with this section; and 

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

6 indicating whether the cash award program of each 

7 agency complies with this section. 

8 ‘‘(h) Not later than 3 years after the date of enact9 ment of the Bonuses for Cost-Cutters Act of 2015, and 

10 every 3 years thereafter, the Comptroller General of the 

11 United States shall submit to Congress a report on the 

12 operation of the cost savings and awards program under 

13 this section, including any recommendations for legislative 

14 changes.’’. 

15 (b) OFFICERS ELIGIBLE FOR CASH AWARDS.— 

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

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

18 ‘‘§ 4509. Prohibition of cash award to certain officers 

19 ‘‘(a) DEFINITIONS.—In this section, the term ‘agen20 cy’— 

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

22 section 551(1); and 

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

24 4501(1). 


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

2 cash award under this subchapter if the officer— 

3 ‘‘(1) serves in a position at level I of the Execu4 tive Schedule; 

5 ‘‘(2) is the head of an agency; or 

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

7 voting member of an independent establishment.’’. 

8 (2) TECHNICAL AND CONFORMING AMEND9 MENT.—The table of sections for chapter 45 of title 

10 5, United States Code, is amended by striking the 

11 item relating to section 4509 and inserting the fol12 lowing: 

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

Æ 


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