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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2170 Reported in Senate (RS)]

                                                       Calendar No. 458
103d CONGRESS
  2d Session
                                S. 2170

                          [Report No. 103-281]

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 June 9 (legislative day, June 7), 1994

  Mr. Glenn, from the Committee on Governmental Affairs, reported the 
    following bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
   To provide a more effective, efficient, and responsive Government.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government 
Management Reform Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
         TITLE I--LIMITATION ON PAY AND REDUCTION OF POSITIONS

Sec. 101. Limitation on certain annual pay adjustments.
Sec. 102. Reduction of Federal full-time equivalent positions.
                  TITLE II--HUMAN RESOURCE MANAGEMENT

Sec. 201. Federal workforce training.
Sec. 202. SES annual leave accumulation.
               TITLE III--STREAMLINING MANAGEMENT CONTROL

Sec. 301. Authority to increase efficiency in reporting to Congress.
Sec. 302. Transfer of Davis-Bacon functions.
                     TITLE IV--FINANCIAL MANAGEMENT

Sec. 401. Short title.
Sec. 402. Electronic payments.
Sec. 403. Franchise fund pilot programs.
Sec. 404. Simplification of management reporting process.
Sec. 405. Annual financial reports.
Sec. 406. Authorization of appropriations for enhancing debt 
                            collection.
Sec. 407. Contracts for collection services.
Sec. 408. Notification to agencies of debtors' mailing addresses.
Sec. 409. Contracts for private counsel services.
Sec. 410. Adjusting civil monetary penalties for inflation.

         TITLE I--LIMITATION ON PAY AND REDUCTION OF POSITIONS

SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

    Effective as of December 31, 1994--
            (1) section 601(a)(2) of the Legislative Reorganization Act 
        of 1946 (2 U.S.C. 31(2)) is amended--
                    (A) by striking out ``(2) Effective'' and inserting 
                in lieu thereof ``(2)(A) Subject to subparagraph (B), 
                effective''; and
                    (B) by adding at the end thereof the following:
    ``(B) In no event shall the percentage adjustment taking effect 
under subparagraph (A) in any calendar year (before rounding), in any 
rate of pay, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 of title 5, United States Code, in the 
rates of pay under the General Schedule.'';
            (2) section 104 of title 3, United States Code, is 
        amended--
                    (A) in the first sentence by inserting ``(a)'' 
                before ``The'';
                    (B) in the second sentence by striking out 
                ``Effective'' and inserting in lieu thereof ``Subject 
                to subsection (b), effective''; and
                    (C) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect 
under the second and third sentences of subsection (a) in any calendar 
year (before rounding) exceed the percentage adjustment taking effect 
in such calendar year under section 5303 of title 5 in the rates of pay 
under the General Schedule.'';
            (3) section 5318 of title 5, United States Code, is 
        amended--
                    (A) in the first sentence by striking out 
                ``Effective'' and inserting in lieu thereof ``(a) 
                Subject to subsection (b), effective''; and
                    (B) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect 
under subsection (a) in any calendar year (before rounding), in any 
rate of pay, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 in the rates of pay under the General 
Schedule.''; and
            (4) section 461(a) of title 28, United States Code, is 
        amended--
                    (A) by striking out ``(a) Effective'' and inserting 
                in lieu thereof ``(a)(1) Subject to paragraph (2), 
                effective''; and
                    (B) by adding at the end thereof the following:
    ``(2) In no event shall the percentage adjustment taking effect 
under paragraph (1) in any calendar year (before rounding), in any 
salary rate, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 of title 5 in the rates of pay under 
the General Schedule.''.

SEC. 102. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSITIONS.

    (a) Definition.--For purposes of this section, the term ``agency'' 
means an Executive agency as defined under section 105 of title 5, 
United States Code, but does not include the General Accounting Office.
    (b) Limitations on Full-Time Equivalent Positions.--The President, 
through the Office of Management and Budget (in consultation with the 
Office of Personnel Management), shall ensure that the total number of 
full-time equivalent positions in all agencies shall not exceed--
            (1) 2,095,182 during fiscal year 1994;
            (2) 2,044,100 during fiscal year 1995;
            (3) 2,003,846 during fiscal year 1996;
            (4) 1,963,593 during fiscal year 1997;
            (5) 1,923,339 during fiscal year 1998; and
            (6) 1,883,086 during fiscal year 1999.
    (c) Monitoring and Notification.--The Office of Management and 
Budget, after consultation with the Office of Personnel Management, 
shall--
            (1) continuously monitor all agencies and make a 
        determination on the first date of each quarter of each 
        applicable fiscal year of whether the requirements under 
        subsection (b) are met; and
            (2) notify the President and the Congress on the first date 
        of each quarter of each applicable fiscal year of any 
        determination that any requirement of subsection (b) is not 
        met.
    (d) Compliance.--If at any time during a fiscal year, the Office of 
Management and Budget notifies the President and the Congress that any 
requirement under subsection (b) is not met, no agency may hire any 
employee for any position in such agency until the Office of Management 
and Budget notifies the President and the Congress that the total 
number of full-time equivalent positions for all agencies equals or is 
less than the applicable number required under subsection (b).
    (e) Waiver.--Any provision of this section may be waived upon--
            (1) a determination by the President of the existence of 
        war or a national emergency; or
            (2) the enactment of a joint resolution upon an affirmative 
        vote of three-fifths of the Members of each House of the 
        Congress duly chosen and sworn.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

SEC. 201. FEDERAL WORKFORCE TRAINING.

    (a) In General.--Chapter 41 of title 5, United States Code, is 
amended--
            (1) in section 4101(4) by striking out ``fields'' and all 
        that follows through the semicolon and inserting in lieu 
        thereof ``fields which will improve individual and 
        organizational performance and assist in achieving the agency's 
        mission and performance goals;'';
            (2) in section 4103--
                    (A) in subsection (a)--
                            (i) by striking out ``In'' and all that 
                        follows through ``maintain'' and inserting in 
                        lieu thereof ``In order to assist in achieving 
                        an agency's mission and performance goals by 
                        improving employee and organizational 
                        performance, the head of each agency, in 
                        conformity with this chapter, shall establish, 
                        operate, maintain, and evaluate'';
                            (ii) by striking out ``and'' at the end of 
                        paragraph (2);
                            (iii) by redesignating paragraph (3) as 
                        paragraph (4); and
                            (iv) by inserting after paragraph (2) the 
                        following:
            ``(3) provide that information concerning the selection and 
        assignment of employees for training and the applicable 
        training limitations and restrictions be made available to 
        employees of the agency; and''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1) by striking out 
                        ``determines'' and all that follows through the 
                        period and inserting in lieu thereof 
                        ``determines that such training would be in the 
                        interests of the Government.''; and
                            (ii) by striking out paragraph (2) and 
                        redesignating paragraph (3) as paragraph (2);
            (3) in section 4105--
                    (A) in subsection (a) by striking out ``(a)''; and
                    (B) by striking out subsections (b) and (c);
            (4) by repealing section 4106;
            (5) in section 4107--
                    (A) by amending the section heading to read as 
                follows:
``Sec. 4107. Restriction on degree training'';
                    (B) by striking out subsections (a) and (b) and 
                redesignating subsections (c) and (d) as subsections 
                (a) and (b), respectively;
                    (C) by amending subsection (a) (as so 
                redesignated)--
                            (i) by striking out ``subsection (d)'' and 
                        inserting in lieu thereof ``subsection (b)''; 
                        and
                            (ii) by striking out ``by, in, or through a 
                        non-Government facility''; and
                    (D) by amending paragraph (1) of subsection (b) (as 
                so redesignated) by striking out ``subsection (c)'' and 
                inserting in lieu thereof ``subsection (a)'';
            (6) in section 4108(a) by striking out ``by, in, or through 
        a non-Government facility under this chapter'' and inserting in 
        lieu thereof ``for more than a minimum period prescribed by the 
        head of the agency'';
            (7) in section 4113(b)--
                    (A) in the first sentence by striking out 
                ``annually to the Office,'' and inserting in lieu 
                thereof ``to the Office, at least once every 3 years, 
                and''; and
                    (B) by striking out the matter following the first 
                sentence and inserting in lieu thereof the following: 
                ``The report shall set forth--
            ``(1) information needed to determine that training is 
        being provided in a manner which is in compliance with 
        applicable laws intended to protect or promote equal employment 
        opportunity; and
            ``(2) information concerning the expenditures of the agency 
        in connection with training and such other information as the 
        Office considers appropriate.'';
            (8) by repealing section 4114; and
            (9) in section 4118--
                    (A) in subsection (a)(7) by striking out ``by, in, 
                and through non-Government facilities'';
                    (B) by striking out subsection (b); and
                    (C) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
    (b) Technical and Conforming Amendments.--Title 5, United States 
Code, is amended--
            (1) in section 3381(e) by striking out ``4105(a),'' and 
        inserting in lieu thereof ``4105,''; and
            (2) in the table of sections for chapter 41--
                    (A) by repealing the items relating to sections 
                4106 and 4114; and
                    (B) by amending the item relating to section 4107 
                to read as follows:

``4107. Restriction on degree training.''.
    (c) Effective Date.--The amendments made by this section shall 
become effective on the date of enactment of this Act.

SEC. 202. SES ANNUAL LEAVE ACCUMULATION.

    (a) In General.--Effective on the first day of the first applicable 
pay period beginning after the date of the enactment of this Act, 
subsection (f) of section 6304 of title 5, United States Code, is 
amended to read as follows:
    ``(f)(1) This subsection applies with respect to annual leave 
accrued by an individual while serving in a position in--
            ``(A) the Senior Executive Service;
            ``(B) the Senior Foreign Service;
            ``(C) the Defense Intelligence Senior Executive Service;
            ``(D) the Senior Cryptologic Executive Service; or
            ``(E) the Federal Bureau of Investigation and Drug 
        Enforcement Administration Senior Executive Service.
    ``(2) For purposes of applying any limitation on accumulation under 
this section with respect to any annual leave described in paragraph 
(1)--
            ``(A) `30 days' in subsection (a) shall be deemed to read 
        `90 days'; and
            ``(B) `45 days' in subsection (b) shall be deemed to read 
        `90 days'.''.
    (b) Use of Excess Leave.--Notwithstanding the amendment made by 
subsection (a), in the case of an employee who, on the effective date 
of subsection (a), is subject to subsection (f) of section 6304 of 
title 5, United States Code, and who has to such employee's credit 
annual leave in excess of the maximum accumulation otherwise permitted 
by subsection (a) or (b) of section 6304 (determined applying the 
amendment made by subsection (a)), such excess annual leave shall 
remain to the credit of the employee and be subject to reduction, in 
the same manner as provided in subsection (c) of section 6304.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO CONGRESS.

    (a) Purpose.--The purpose of this title is to improve the 
efficiency of executive branch performance in implementing statutory 
requirements for reports to Congress and committees of Congress such as 
the elimination or consolidation of duplicative or obsolete reporting 
requirements and adjustments to deadlines that shall provide for more 
efficient workload distribution or improve the quality of reports.
    (b) Authority of the Director.--The Director of the Office of 
Management and Budget may publish annually in the budget submitted by 
the President to the Congress, recommendations for consolidation, 
elimination, or adjustments in frequency and due dates of statutorily 
required periodic reports to the Congress or committees of Congress. 
For each recommendation, the Director shall provide an individualized 
statement of the reasons that support the recommendation. In addition, 
for each report for which a recommendation is made, the Director shall 
state with specificity the exact consolidation, elimination, or 
adjustment in frequency or due date that is recommended.
    (c) Recommendations.--The Director's recommendations shall be 
consistent with the purpose stated in subsection (a).
    (d) Consultation.--Before the publication of the recommendations 
under subsection (b), the Director or his designee shall consult with 
the appropriate congressional committees concerning the 
recommendations.

SEC. 302. TRANSFER OF DAVIS-BACON FUNCTIONS.

    (a) Davis-Bacon Act.--Section 3(a) of the Act of March 3, 1931 (the 
Davis-Bacon Act) (40 U.S.C. 276a-2(a)) is amended by striking out 
``Comptroller General of the United States'' each place it appears and 
inserting in each such place ``Secretary of Labor''.
    (b) Contract Work Hours and Safety Standards Act.--Section 104(a) 
of the Contract Work Hours and Safety Standards Act (40 U.S.C. 330(a)) 
is amended by striking out ``Comptroller General of the United States'' 
in the last sentence and inserting in lieu thereof ``Secretary''.
    (c) Transfer of Records.--The General Accounting Office shall 
transfer to the Department of Labor all of the records and unexpended 
balances of funds held in connection with the functions transferred 
under subsections (a) and (b).
    (d) Savings Provisions.--(1) No personnel shall be transferred with 
the functions transferred under subsections (a) and (b).
    (2) All orders, determinations, rules, regulations, permits, 
agreements, grants, contracts, certificates, licenses, registrations, 
privileges, and other administrative actions--
            (A) which have been issued, made, granted, or allowed to 
        become effective in the performance of functions which are 
        transferred under this section, and
            (B) which are in effect at the time this section takes 
        effect, or were final before the effective date of this section 
        and are to become effective on or after the effective date of 
        this section,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary of Labor or other authorized official, a 
court of competent jurisdiction, or by operation of law.
    (3) The provisions of this section shall not affect any 
proceedings, including notices of proposed rulemaking, or any 
application for any license, permit, certificate, or financial 
assistance pending before the General Accounting Office at the time 
this section takes effect, with respect to functions transferred by 
this section but such proceedings and applications shall be continued. 
Orders shall be issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to such orders, as if 
this section had not been enacted, and orders issued in any such 
proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this 
paragraph shall be deemed to prohibit the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this section had not been enacted.
    (4) The provisions of this section shall not affect suits commenced 
before the effective date of this section, and in all such suits, 
proceedings shall be had, appeals taken, and judgments rendered in the 
same manner and with the same effect as if this section had not been 
enacted.
    (5) No suit, action, or other proceeding commenced by or against 
the General Accounting Office, or by or against any individual in the 
official capacity of such individual as an officer of the General 
Accounting Office, shall abate by reason of the enactment of this 
section.
    (6) Any administrative action relating to the preparation or 
promulgation of a regulation by the General Accounting Office relating 
to a function transferred under this section may be continued by the 
Department of Labor with the same effect as if this section had not 
been enacted.
    (7) Reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or relating 
to--
            (A) the Comptroller General with regard to functions 
        transferred under this section, shall be deemed to refer to the 
        Secretary of Labor; and
            (B) the General Accounting Office with regard to functions 
        transferred under this section, shall be deemed to refer to the 
        Department of Labor.

                     TITLE IV--FINANCIAL MANAGEMENT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Federal Financial Management Act 
of 1994''.

SEC. 402. ELECTRONIC PAYMENTS.

    (a) In General.--Section 3332 of title 31, United States Code, is 
amended to read as follows:
``Sec. 3332. Required direct deposit
    ``(a)(1) Notwithstanding any other provision of law, all Federal 
wage, salary, and retirement payments shall be paid to recipients of 
such payments by electronic funds transfer, unless another method has 
been determined by the Secretary of the Treasury to be appropriate.
    ``(2) Each recipient of Federal wage, salary, or retirement 
payments shall designate one or more financial institutions or other 
authorized payment agents and provide the payment certifying or 
authorizing agency information necessary for the recipient to receive 
electronic funds transfer payments through each institution so 
designated.
    ``(b)(1) The head of each agency shall waive the requirements of 
subsection (a) of this section for a recipient of Federal wage, salary, 
or retirement payments authorized or certified by the agency upon 
written request by such recipient.
    ``(2) Federal wage, salary, or retirement payments shall be paid to 
any recipient granted a waiver under paragraph (1) of this subsection 
by any method determined appropriate by the Secretary of the Treasury.
    ``(c)(1) The Secretary of the Treasury may waive the requirements 
of subsection (a) of this section for any group of recipients upon 
request by the head of an agency under standards prescribed by the 
Secretary of the Treasury.
    ``(2) Federal wage, salary, or retirement payments shall be paid to 
any member of a group granted a waiver under paragraph (1) of this 
subsection by any method determined appropriate by the Secretary of the 
Treasury.
    ``(d) This section shall apply only to recipients of Federal wage 
or salary payments who begin to receive such payments on or after 
January 1, 1995, and recipients of Federal retirement payments who 
begin to receive such payments on or after January 1, 1995.
    ``(e) The crediting of the amount of a payment to the appropriate 
account on the books of a financial institution or other authorized 
payment agent designated by a payment recipient under this section 
shall constitute a full acquittance to the United States for the amount 
of the payment.
    ``(f) For purposes of this section a Federal retirement payment 
shall not include any benefit--
            ``(1) paid under title II of the Social Security Act; or
            ``(2) payable under the Railroad Retirement Act of 1974 (45 
        U.S.C. 231 et seq.)''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 31, United States Code, is amended by amending the 
item for section 3332 to read:

``3332. Required direct deposit.''.

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a) Establishment.--There is authorized to be established on a 
pilot program basis in each of four executive agencies a franchise 
fund. The President, after consultation with the chairman and ranking 
members of the Committees on Appropriations and Governmental Affairs of 
the Senate, and the Committees on Appropriations and Government 
Operations of the House of Representatives, shall designate the 
agencies. Two of the four agencies shall be agencies with existing 
working capital funds that provide authorized services and two shall be 
agencies without such funds.
    (b) Uses.--Each such fund may provide, consistent with guidelines 
established by the President, such common administrative support 
services to the agency and to other agencies as the head of such 
agency, with the approval of the President, determines can be provided 
more efficiently through such a fund than by other means. To provide 
such services, each such fund is authorized to acquire the capital 
equipment, automated data processing systems, and financial management 
and management information systems needed. Services shall be provided 
by such funds on a competitive basis.
    (c) Funding.--(1) There are authorized to be appropriated to the 
franchise fund of each agency designated under subsection (a) such 
funds as are necessary to carry out the purposes of the fund, to remain 
available until expended.
    (2) Fees for services provided shall be established by the head of 
the agency at a level to cover the total estimated costs of providing 
such services. Such fees shall be deposited in the agency's fund to 
remain available until expended, and may be used to carry out the 
purposes of the fund.
    (3) There are authorized to be transferred to the fund of each 
agency established under subsection (a) the unobligated amounts of that 
agency's appropriations available for salaries and expenses for a 
fiscal year. The unobligated amounts may be transferred to the agency's 
franchise fund no later than the end of the succeeding fiscal year, to 
remain available until expended to carry out the purposes of the fund.
    (4) The amount of unobligated balances to be transferred under 
paragraph (3) shall be determined by the agency in consultation with 
the President and the Committees on Appropriations of the Senate and of 
the House of Representatives. Any proposed use of these transferred 
funds shall be made only after notification 15 days in advance to the 
Committees on Appropriations of the Senate and Senate and the House of 
Representatives.
    (d) Report on Pilot Programs.--Within 6 months after the end of 
fiscal year 1997, the President shall forward a report on the results 
of the pilot programs to the Committees on Appropriations of the Senate 
and of the House of Representatives, and to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Operations of the House of Representatives. The report shall contain 
the financial and program performance results of the pilot programs, 
including recommendations for--
            (1) the structure of the fund;
            (2) the composition of the funding mechanism;
            (3) the capacity of the fund to promote competition; and
            (4) the desirability of extending the application and 
        implementation of franchise funds to other Federal agencies.
    (e) Procurement.--Nothing in this section shall be construed as 
relieving any agency of any duty under applicable procurement laws.
    (f) Termination.--The provisions of this section shall expire on 
October 1, 1999.

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

    (a) In General.--To improve the efficiency of executive branch 
performance in implementing statutory requirements for financial 
management reporting to the Congress and its committees, the Director 
of the Office of Management and Budget may adjust the frequency and due 
dates of or consolidate any statutorily required reports of agencies to 
the Office of Management and Budget or the President and of agencies or 
the Office of Management and Budget to the Congress under any laws for 
which the Office of Management and Budget has financial management 
responsibility, including--
            (1) chapters 5, 9, 11, 33, 35, 37, 75, and 91 of title 31, 
        United States Code;
            (2) the Inspector General Act of 1978 (5 U.S.C. App.);
            (3) sections 6103 and 7213 of the Internal Revenue Code of 
        1986, and section 3302 and chapter 37 of title 31, United 
        States Code;
            (4) chapter 39 of title 31, United States Code; and
            (5) the Federal Civil Penalties Inflation Adjustment Act of 
        1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).
    (b) Application.--The authority provided in subsection (a) shall 
apply only to reports of agencies to the Office of Management and 
Budget or the President and of agencies or the Office of Management and 
Budget to the Congress required by statute to be submitted between 
January 1, 1995, and September 30, 1997.
    (c) Adjustments in Reporting.--The Director may consolidate or 
adjust the frequency and due dates of any statutorily required reports 
under subsections (a) and (b) only after--
            (1) consultation with the Chairman of the Senate Committee 
        on Governmental Affairs and the Chairman of the House of 
        Representatives Committee on Government Operations; and
            (2) written notification to the Congress, no later than 
        February 8 of each fiscal year covered under subsection (b) for 
        those reports required to be submitted during that fiscal year.

SEC. 405. ANNUAL FINANCIAL REPORTS.

    (a) Financial Statements.--Section 3515 of title 31, United States 
Code, is amended to read as follows:
``Sec. 3515. Financial statements of agencies
    ``(a) Not later than March 1 of 1997 and each year thereafter, the 
head of each executive agency identified in section 901(b) of this 
title shall prepare and submit to the Director of the Office of 
Management and Budget an audited financial statement for the preceding 
fiscal year, covering all accounts and associated activities of each 
office, bureau, and activity of the agency.
    ``(b) Each audited financial statement of an executive agency under 
this section shall reflect--
            ``(1) the overall financial position of the offices, 
        bureaus, and activities covered by the statement, including 
        assets and liabilities thereof; and
            ``(2) results of operations of those offices, bureaus, and 
        activities.
    ``(c) The Director of the Office of Management and Budget shall 
identify components of executive agencies that shall be required to 
have audited financial statements meeting the requirements of 
subsection (b).
    ``(d) The Director of the Office of Management and Budget shall 
prescribe the form and content of the financial statements of executive 
agencies under this section, consistent with applicable accounting and 
financial reporting principles, standards, and requirements.
    ``(e) The Director of the Office of Management and Budget may waive 
the application of all or part of subsection (a) for financial 
statements required for fiscal years 1996 and 1997.
    ``(f) Not later than March 1 of 1995 and 1996, the head of each 
executive agency identified in section 901(b) of this title and 
designated by the Director of the Office of Management and Budget shall 
prepare and submit to the Director of the Office of Management and 
Budget an audited financial statement for the preceding fiscal year, 
covering all accounts and associated activities of each office, bureau, 
and activity of the agency.
    ``(g) Not later than March 31 of 1995 and 1996, for executive 
agencies not designated by the Director of the Office of Management and 
Budget under subsection (f), the head of each executive agency 
identified in section 901(b) of this title shall prepare and submit to 
the Director of the Office of Management and Budget a financial 
statement for the preceding fiscal year, covering--
            ``(1) each revolving fund and trust fund of the agency; and
            ``(2) to the extent practicable, the accounts of each 
        office, bureau, and activity of the agency which performed 
        substantial commercial functions during the preceding fiscal 
        year.
    ``(h) For purposes of subsection (g), the term `commercial 
functions' includes buying and leasing of real estate, providing 
insurance, making loans and loan guarantees, and other credit programs 
and any activity involving the provision of a service or thing for 
which a fee, royalty, rent, or other charge is imposed by an agency for 
services and things of value it provides.''.
    (b) Audits by Agencies.--Subsection 3521(f) of title 31, United 
States Code, is amended to read as follows:
    ``(f)(1) For each audited financial statement required under 
subsections (a) and (f) of section 3515 of this title, the person who 
audits the statement for purpose of subsection (e) of this section 
shall submit a report on the audit to the head of the agency. A report 
under this subsection shall be prepared in accordance with generally 
accepted government auditing standards.
    ``(2) Not later than June 30 following the fiscal year for which a 
financial statement is submitted under subsection (g) of section 3515 
of this title, the person who audits the statement for purpose of 
subsection (e) of this section shall submit a report on the audit to 
the head of the agency. A report under this subsection shall be 
prepared in accordance with generally accepted government auditing 
standards.''.
    (c) Governmentwide Financial Statement.--Section 331 of title 31, 
United States Code, is amended by adding the following new subsection:
    ``(e)(1) Not later than March 31 of 1998 and each year thereafter, 
the Secretary of the Treasury, in coordination with the Director of the 
Office of Management and Budget, shall annually prepare and submit to 
the President and the Congress an audited financial statement for the 
preceding fiscal year, covering all accounts and associated activities 
of the executive branch of the United States Government. The financial 
statement shall reflect the overall financial position, including 
assets and liabilities, and results of operations of the executive 
branch of the United States Government, and shall be consistent with 
applicable accounting and financial reporting principles, standards, 
and requirements.
    ``(2) The Comptroller General of the United States shall audit the 
financial statement required by this section.''.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS FOR ENHANCING DEBT 
              COLLECTION.

    (a) In General.--Chapter 37 of title 31, United States Code, is 
amended by adding after section 3720A the following new section:
``Sec. 3720B. Authorization of appropriations for enhancing debt 
              collection
    ``(a) To the extent and in the amounts provided in advance in 
appropriations Acts--
            ``(1) an amount not to exceed 1 percent of the delinquent 
        debts collected for a program in 1 fiscal year is authorized to 
        be credited in the following fiscal year to a special fund for 
        such program;
            ``(2) an amount not to exceed 10 percent of any sustained 
        annual increase in delinquent debt collections, as defined by 
        the Director of the Office of Management and Budget, is 
        authorized to be credited to a special fund for such program; 
        and
            ``(3) from amounts credited under paragraphs (1) and (2), 
        such sums as may be necessary are authorized to be appropriated 
        for the improvement of that program's debt collection 
        activities, including, but not limited to, account and loan 
        servicing, delinquent debt collection and asset disposition.
    ``(b) Debt is defined as delinquent under standards prescribed or 
to be prescribed by the Secretary of the Treasury.
    ``(c) For direct loan and loan guarantee programs subject to title 
V of the Congressional Budget Act of 1974, amounts credited in 
accordance with section (a) shall be considered administrative costs 
and shall not be included in the estimated payments to the Government 
for the purpose of calculating the cost of such programs.
    ``(d) This section shall apply only to collection of debts--
            ``(1) for a program not within the Department of Justice; 
        and
            ``(2) not involving the assistance of the Department of 
        Justice.''.
    (b) Technical and Conforming Amendments.--The table of sections for 
subchapter II of chapter 37 of title 31, United States Code, is amended 
by adding after the item relating to section 3720A the following new 
item:

``3720B. Authorization of appropriations for enhancing debt 
                            collection.''.

SEC. 407. CONTRACTS FOR COLLECTION SERVICES.

    Section 3701 of title 31, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking out ``and 3716-3719'' and inserting 
                in lieu thereof ``, 3716, and 3717''; and
                    (B) by striking out ``, the Social Security Act (42 
                U.S.C. 301 et seq.),''; and
            (2) by adding at the end thereof the following new 
        subsection:
    ``(e) Section 3718 of this title does not apply to a claim or debt 
under, or to an amount payable under, the Social Security Act (42 
U.S.C. 301 et seq.) owed by a person receiving benefits under that Act 
or to a claim or debt under, or to an amount payable under the Internal 
Revenue Code of 1986.''.

SEC. 408. NOTIFICATION TO AGENCIES OF DEBTORS' MAILING ADDRESSES.

    Section 3720A of title 31, United States Code, is amended by 
striking out ``the individual's home address.'' at the end of 
subsection (c) and inserting in lieu thereof the following: ``the 
person's mailing address. Provision of this information is authorized 
by section 6103(m)(2) of the Internal Revenue Code of 1986.''.

SEC. 409. CONTRACTS FOR PRIVATE COUNSEL SERVICES.

    Section 3718(b)(1)(A) of title 31, United States Code, is amended 
by striking out ``If the Attorney General makes a contract for legal 
services to be furnished in any judicial district of the United States 
under the first sentence of this paragraph, the Attorney General shall 
use his best efforts to obtain, from among attorneys regularly engaged 
in the private practice of law in such district, at least four such 
contracts with private individuals or firms in such district.''.

SEC. 410. ADJUSTING CIVIL MONETARY PENALTIES FOR INFLATION.

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (28 
U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890) is amended--
            (1) by amending section 4 to read as follows:

         ``civil monetary penalty inflation adjustment reports

    ``Sec. 4. The head of each agency shall--
            ``(1) by regulation, no later than September 30, 1994, and 
        at least once every 4 years thereafter, adjust each civil 
        monetary penalty provided by law within the jurisdiction of the 
        Federal agency, except for any penalty under the Internal 
        Revenue Code of 1986 by the inflation adjustment described 
        under section 5 and publish each such adjustment in the Federal 
        Register; and
            ``(2) provide a report to the Secretary of the Treasury by 
        November 15 of each year on all penalties adjusted during the 
        preceding fiscal year.'';
            (2) by amending section 5(a) by striking out ``The 
        adjustment described under paragraphs (4) and (5)(A) of section 
        4'' and inserting in lieu thereof ``The inflation adjustment''; 
        and
            (3) by adding after section 6 the following new section:

                             ``application

    ``Sec. 7. Any increase to a civil monetary penalty resulting from 
this Act shall apply only to violations which occur after the date any 
such increase takes effect.''.
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                                                       Calendar No. 458

103d CONGRESS

  2d Session

                                S. 2170

                          [Report No. 103-281]

_______________________________________________________________________

                                 A BILL

   To provide a more effective, efficient, and responsive Government.

_______________________________________________________________________

                 June 9 (legislative day, June 7), 1994

                 Read twice and placed on the calendar
```