IB 

Union Calendar No. 646 

114TH CONGRESS 

2D SESSION H. R. 2532 

[Report No. 114–824] 

To amend title 5, United States Code, to enhance the authority under which 

Federal agencies may pay cash awards to employees for making cost 

saving disclosures, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2015 

Mr. FLEISCHMANN introduced the following bill; which was referred to the 

Committee on Oversight and Government Reform 

NOVEMBER 14, 2016 

Additional sponsor: Mr. COOPER

NOVEMBER 14, 2016 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 21, 2015] 


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A BILL 

To amend title 5, United States Code, to enhance the authority under which Federal agencies may pay cash awards 

to employees for making cost saving disclosures, and 

for other purposes. 


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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-Cutters 

5 Act of 2016’’. 

6 SEC. 2. COST SAVINGS ENHANCEMENTS. 

7 (a) IN GENERAL.— 

8 (1) DEFINITIONS.—Section 4511 of title 5, 

9 United States Code, is amended— 

10 (A) in the section heading, by striking 

11 ‘‘Definition’’ and inserting ‘‘Definitions’’; 

12 and 

13 (B) in subsection (a)— 

14 (i) by striking the period at the end 

15 and inserting ‘‘; and’’; and 

16 (ii) by striking ‘‘this subchapter, the 

17 term’’ and inserting the following: ‘‘this 

18 subchapter— 

19 ‘‘(1) the term’’; 

20 (iii) by adding at the end the fol21 lowing: 

22 ‘‘(2) the term ‘surplus salaries and expenses 

23 funds’ means amounts made available for the salaries 

24 and expenses account, or equivalent account, of an 

25 agency— 


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1 ‘‘(A) that are identified by an employee of 

2 the agency under section 4512(a) as unnecessary; 

3 ‘‘(B) that the Inspector General of the agen4 cy or other agency employee designated under 

5 section 4512(b) determines are not required for 

6 the purpose for which the amounts were made 

7 available; 

8 ‘‘(C) that the Chief Financial Officer of the 

9 agency determines are not required for the pur10 pose for which the amounts were made available; 

11 and 

12 ‘‘(D) the rescission of which would not be 

13 detrimental to the full execution of the purposes 

14 for which the amounts were made available.’’. 

15 (2) AUTHORITY.—Section 4512 of title 5, United 

16 States Code, is amended— 

17 (A) in subsection (a)— 

18 (i) in the matter preceding paragraph 

19 (1), by inserting ‘‘or identification of sur20 plus salaries and expenses funds’’ after 

21 ‘‘mismanagement’’; 

22 (ii) in paragraph (2), by inserting ‘‘or 

23 identification’’ after ‘‘disclosure’’; and 


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1 (iii) in the matter following paragraph 

2 (2), by inserting ‘‘or identification’’ after 

3 ‘‘disclosure’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(c)(1) The Inspector General of an agency or other 

6 agency employee designated under subsection (b) shall refer 

7 to the Chief Financial Officer of the agency any potential 

8 surplus salaries and expenses funds identified by an em9 ployee that the Inspector General or other agency employee 

10 determines meets the requirements under subparagraphs 

11 (B) and (D) of section 4511(a)(2), along with any rec12 ommendations of the Inspector General or other agency em13 ployee. 

14 ‘‘(2)(A) If the Chief Financial Officer of the agency 

15 determines that potential surplus salaries and expenses 

16 funds referred under paragraph (1) meet the requirements 

17 under section 4511(a)(2), except as provided in subsection 

18 (d), the head of the agency shall transfer the amount of the 

19 surplus funds or unnecessary budget authority from the ap20 plicable appropriations account to the general fund of the 

21 Treasury. 

22 ‘‘(B) Any amounts transferred under subparagraph 

23 (A) shall be deposited in the Treasury and used for deficit 

24 reduction, except that in the case of a fiscal year for which 

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


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1 used to reduce the Federal debt (in such manner as the Sec2 retary of the Treasury considers appropriate). 

3 ‘‘(3) The Inspector General or other agency employee 

4 designated under subsection (b) for each agency and the 

5 Chief Financial Officer for each agency shall issues stand6 ards and definitions for purposes of making determinations 

7 relating to potential surplus salaries and expenses funds 

8 identified by an employee under this subsection. 

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

10 than 10 percent of amounts to be transferred to the general 

11 fund of the Treasury under subsection (c)(2). 

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

13 paragraph (1) may be— 

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

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

16 who identified the surplus salaries and expenses 

17 funds; and 

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

19 cash awards under subsection (a), transferred or re20 programmed for use by the agency, in accordance 

21 with any limitation on such a transfer or reprogram22 ming under any other provision of law. 

23 ‘‘(e)(1) Not later than October 1 of each fiscal year, 

24 the head of each agency shall submit to the Secretary of 

25 the Treasury a report identifying the total savings achieved 


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1 during the previous fiscal year through disclosures of pos2 sible fraud, waste, or mismanagement and identifications 

3 of surplus salaries and expenses funds by an employee. 

4 ‘‘(2) Not later than September 30 of each fiscal year, 

5 the head of each agency shall submit to the Secretary of 

6 the Treasury a report that, for the previous fiscal year— 

7 ‘‘(A) describes each disclosure of possible fraud, 

8 waste, or mismanagement or identification of poten9 tially surplus salaries and expenses funds by an em10 ployee of the agency determined by the agency to have 

11 merit; and 

12 ‘‘(B) provides the number and amount of cash 

13 awards by the agency under subsection (a). 

14 ‘‘(3) The head of each agency shall include the infor15 mation described in paragraphs (1) and (2) in each budget 

16 request of the agency submitted to the Office of Management 

17 and Budget as part of the preparation of the budget of the 

18 President submitted to Congress under section 1105(a) of 

19 title 31. 

20 ‘‘(4) The Secretary of the Treasury shall submit to the 

21 Committee on Appropriations of the Senate, the Committee 

22 on Appropriations of the House of Representatives, and the 

23 Government Accountability Office an annual report on Fed24 eral cost saving and awards based on the reports submitted 

25 under paragraphs (1) and (2). 


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

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

4 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 ‘‘(g) Not later than 3 years after the date of enactment 

9 of the Bonuses for Cost-Cutters Act of 2016, and every 3 

10 years thereafter, the Comptroller General of the United 

11 States shall submit to Congress a report on the operation 

12 of the cost savings and awards program under this section, 

13 including any recommendations for legislative changes.’’. 

14 (3) TECHNICAL AND CONFORMING AMEND15 MENT.—The table of sections for subchapter II of 

16 chapter 45 of title 5, United States Code, is amended 

17 by striking the item relating to section 4511 and in18 serting the following: 

‘‘4511. Definitions and general provisions.’’. 

19 (b) OFFICERS ELIGIBLE FOR CASH AWARDS.— 

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

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

22 ‘‘§ 4509. Prohibition of cash award to certain officers 

23 ‘‘(a) DEFINITIONS.—In this section, the term ‘agen24 cy’— 


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1 ‘‘(1) has the meaning given that term under sec2 tion 551(1); but 

3 ‘‘(2) includes an entity described in subpara4 graphs (A) through (G) of section 4501(1). 

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

6 award under this subchapter if the officer— 

7 ‘‘(1) serves in a position at level I of the Execu8 tive Schedule; 

9 ‘‘(2) is the head of an agency; or 

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

11 voting member of an independent establishment.’’. 

12 (2) TECHNICAL AND CONFORMING AMEND13 MENT.—The table of sections for chapter 45 of title 5, 

14 United States Code, is amended by striking the item 

15 relating to section 4509 and inserting the following: 

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


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Union Calendar No. 646 

114TH CONGRESS 

2D SESSION H. R. 2532 

[Report No. 114–824] 

A BILL 

To amend title 5, United States Code, to enhance 

saving disclosures, and for other purposes. pay cash awards to employees for making cost the authority under which Federal agencies may 

NOVEMBER 14, 2016 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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