Bonuses for Cost-Cutters Act of 2016

To strengthen employee cost savings suggestions programs within the Federal Government. 1. Short title This Act may be cited as the Bonuses for Cost-Cutters Act of 2015 2. Cost savings enhancements (a) In general Section 4512 of title 5, United States Code, is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by inserting or identification of surplus funds or unnecessary budget authority mismanagement (B) in paragraph (2), by inserting or identification disclosure (C) in the matter following paragraph (2), by inserting or identification disclosure (2) by adding at the end the following: (c) The Inspector General of an agency or other agency employee designated under subsection (b) shall refer to the Chief Financial Officer of the agency any potential surplus funds or unnecessary budget authority identified by an employee, along with any recommendations of the Inspector General or other agency employee. (d) (1) If the Chief Financial Officer of an agency determines that rescission of potential surplus funds or unnecessary budget authority identified by an employee would not hinder the effectiveness of the agency, except as provided in subsection (e), the head of the agency shall transfer the amount of the surplus funds or unnecessary budget authority from the applicable appropriations account to the general fund of the Treasury. (2) Title X of the Congressional Budget and Impoundment Control Act of 1974 ( 2 U.S.C. 681 et seq. (3) Any amounts transferred under paragraph (1) shall be deposited in the Treasury and used for deficit reduction, except that in the case of a fiscal year for which there is no Federal budget deficit, such amounts shall be used to reduce the Federal debt (in such manner as the Secretary of the Treasury considers appropriate). (e) (1) The head of an agency may retain not more than 10 percent of amounts to be transferred to the general fund of the Treasury under subsection (d). (2) Amounts retained by the head of an agency under paragraph (1) may be— (A) used for the purpose of paying a cash award under subsection (a) to 1 or more employees who identified the surplus funds or unnecessary budget authority; and (B) to the extent amounts remain after paying cash awards under subsection (a), transferred or reprogrammed for use by the agency, in accordance with any limitation on such a transfer or reprogramming under any other provision of law. (f) (1) The head of each agency shall submit to the Director of the Office of Personnel Management an annual report regarding— (A) each disclosure of possible fraud, waste, or mismanagement or identification of potentially surplus funds or unnecessary budget authority by an employee of the agency determined by the agency to have merit; (B) the total savings achieved through disclosures and identifications described in subparagraph (A); and (C) the number and amount of cash awards by the agency under subsection (a). (2) (A) The head of each agency shall include the information described in paragraph (1) in each budget request of the agency submitted to the Office of Management and Budget as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31, United States Code. (B) The Director of the Office of Personnel Management shall submit to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the Government Accountability Office an annual report on Federal cost saving and awards based on the reports submitted under subparagraph (A). (g) The Director of the Office of Personnel Management shall— (1) ensure that the cash award program of each agency complies with this section; and (2) submit to Congress an annual certification indicating whether the cash award program of each agency complies with this section. (h) Not later than 3 years after the date of enactment of the Bonuses for Cost-Cutters Act of 2015 . (b) Officers eligible for cash awards (1) In general Section 4509 of title 5, United States Code, is amended to read as follows: 4509. Prohibition of cash award to certain officers (a) Definitions In this section, the term agency (1) has the meaning given that term under section 551(1); and (2) includes an entity described in section 4501(1). (b) Prohibition An officer may not receive a cash award under this subchapter if the officer— (1) serves in a position at level I of the Executive Schedule; (2) is the head of an agency; or (3) is a commissioner, board member, or other voting member of an independent establishment. . (2) Technical and conforming amendment The table of sections for chapter 45 4509. Prohibition of cash award to certain officers. . 1. Short title This Act may be cited as the Bonuses for Cost-Cutters Act of 2016 2. Cost savings enhancements (a) In general (1) Definitions Section 4511 of title 5, United States Code, is amended— (A) in the section heading, by striking Definition Definitions (B) in subsection (a)— (i) by striking this subchapter, the term (1) the term ; (ii) by striking the period at the end and inserting ; and (iii) by adding at the end the following: (2) the term surplus salaries and expenses funds (A) that are identified by an employee of the agency under section 4512(a) as unnecessary; (B) that the Inspector General of the agency or other agency employee designated under section 4512(b) determines are not required for the purpose for which the amounts were made available; (C) that the Chief Financial Officer of the agency determines are not required for the purpose for which the amounts were made available; and (D) the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available. . (2) Authority Section 4512 of title 5, United States Code, is amended— (A) in subsection (a)— (i) in the matter preceding paragraph (1), by inserting or identification of surplus salaries and expenses funds mismanagement (ii) in paragraph (2), by inserting or identification disclosure (iii) in the matter following paragraph (2), by inserting or identification disclosure (B) by adding at the end the following: (c) (1) The Inspector General of an agency or other agency employee designated under subsection (b) shall refer to the Chief Financial Officer of the agency any potential surplus salaries and expenses funds identified by an employee that the Inspector General or other agency employee determines meets the requirements under subparagraphs (B) and (D) of section 4511(a)(2), along with any recommendations of the Inspector General or other agency employee. (2) (A) If the Chief Financial Officer of the agency determines that potential surplus salaries and expenses funds referred under paragraph (1) meet the requirements under section 4511(a)(2), except as provided in subsection (d), the head of the agency shall transfer the amount of the surplus funds or unnecessary budget authority from the applicable appropriations account to the general fund of the Treasury. (B) Any amounts transferred under subparagraph (A) shall be deposited in the Treasury and used for deficit reduction, except that in the case of a fiscal year for which there is no Federal budget deficit, such amounts shall be used to reduce the Federal debt (in such manner as the Secretary of the Treasury considers appropriate). (3) The Inspector General or other agency employee designated under subsection (b) for each agency and the Chief Financial Officer for each agency shall issue standards and definitions for purposes of making determinations relating to potential surplus salaries and expenses funds identified by an employee under this subsection. (d) (1) The head of an agency may retain not more than 10 percent of amounts to be transferred to the general fund of the Treasury under subsection (c)(2). (2) Amounts retained by the head of an agency under paragraph (1) may be— (A) used for the purpose of paying a cash award under subsection (a) to 1 or more employees who identified the surplus salaries and expenses funds; and (B) to the extent amounts remain after paying cash awards under subsection (a), transferred or reprogrammed for use by the agency, in accordance with any limitation on such a transfer or reprogramming under any other provision of law. (e) (1) Not later than October 1 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report identifying the total savings achieved during the previous fiscal year through disclosures of possible fraud, waste, or mismanagement and identifications of surplus salaries and expenses funds by an employee. (2) Not later than September 30 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report that, for the previous fiscal year— (A) describes each disclosure of possible fraud, waste, or mismanagement or identification of potentially surplus salaries and expenses funds by an employee of the agency determined by the agency to have merit; and (B) provides the number and amount of cash awards by the agency under subsection (a). (3) The head of each agency shall include the information described in paragraphs (1) and (2) in each budget request of the agency submitted to the Office of Management and Budget as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31. (4) The Secretary of the Treasury shall submit to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the Government Accountability Office an annual report on Federal cost saving and awards based on the reports submitted under paragraphs (1) and (2). (f) The Director of the Office of Personnel Management shall— (1) ensure that the cash award program of each agency complies with this section; and (2) submit to Congress an annual certification indicating whether the cash award program of each agency complies with this section. (g) Not later than 3 years after the date of enactment of this subsection, and every 3 years thereafter, the Comptroller General of the United States shall submit to Congress a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes. . (3) Technical and conforming amendment The table of sections for subchapter II of chapter 45 4511. Definitions and general provisions. . (4) Sunset Effective 6 years after the date of enactment of this Act— (A) section 4511 of title 5, United States Code, is amended— (i) in the section heading, by striking Definitions Definition (ii) in subsection (a)— (I) in paragraph (1), by striking ; and (II) by striking this subchapter— the term agency this subchapter, the term agency (III) by striking paragraph (2); (B) section 4512 of title 5, United States Code, is amended— (i) in subsection (a)— (I) in the matter preceding paragraph (1), by striking or identification of surplus salaries and expenses funds (II) in paragraph (2), by striking or identification (III) in the matter following paragraph (2), by striking or identification (ii) by striking subsections (c) through (g); and (C) the table of sections for subchapter II of chapter 45 4511. Definition and general provisions. . (b) Officers eligible for cash awards (1) In general Section 4509 of title 5, United States Code, is amended to read as follows: 4509. Prohibition of cash award to certain officers (a) Definitions In this section, the term agency (1) has the meaning given that term under section 551(1); and (2) includes an entity described in section 4501(1). (b) Prohibition An officer may not receive a cash award under this subchapter if the officer— (1) serves in a position at level I of the Executive Schedule; (2) is the head of an agency; or (3) is a commissioner, board member, or other voting member of an independent establishment. . (2) Technical and conforming amendment The table of sections for chapter 45 4509. Prohibition of cash award to certain officers. . December 9, 2016 Reported with an amendment

Summary: Bonuses for Cost-Cutters Act of 2016 (Sec. 2) This bill expands the cash awards program for disclosures by federal employees of fraud, waste, or mismanagement that result in cost savings to the employee's agency to include identification of surplus salaries and expenses funds that: (1) an agency employee identifies as unnecessary, (2) the inspector general and the chief financial officer of the agency determine are not required for the purpose for which the amounts were made available, and (3) the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available. Any savings resulting from such identifications must be deposited in the Treasury and used to reduce a budget deficit or the federal debt. But agencies may retain up to 10% of such savings for the purpose of paying cash awards to employees who identify surplus salaries and expenses funds. Each fiscal year, agencies must submit reports to the Department of the Treasury regarding: (1) the total savings achieved through disclosures of possible fraud, waste, or mismanagement and identifications of surplus salaries and expenses funds by an employee; and (2) each disclosure that has merit and the number and amount of cash awards by the agency. This information must also be included in agency budget requests submitted to the Office of Management and Budget. Treasury must report annually to Congress on federal cost saving and awards based on agency reports about such employee disclosures. The Office of Personnel Management must certify annually whether each agency's cash award program complies with this bill. Every three years, the Government Accountability Office must report on the operation of the program and any recommendations for legislative improvements. The amendments in this bill regarding the expansion of the cash awards program and the use of cost savings from such employee identifications shall sunset six years after enactment of this bill. The bill prohibits the payment of awards to: (1) federal officers who serve in a position at level I of the Executive Schedule; (2) the head of an agency; or (3) a commissioner, board member, or other voting member of an independent establishment.