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et, determines may be performed more advantageously on
a centralized basis.
‘‘(b)(1) The fund shall consist of the fair and reason-
able value of inventories, equipment, and other assets and
inventories on order pertaining to the services to be pro-
vided by the fund as are transferred by the head of the
agency to the fund less related liabilities and unpaid obli-
gations together with any appropriations made for the
purpose of providing capital.
‘‘(2) For the first fiscal year a fund is in operation
and each fiscal year thereafter, an amount not to exceed
4 percent of the total income of the fund may be retained
in the fund, to remain available until expended, to be used
only for the acquisition of capital equipment and for the
improvement and implementation of agency financial man-
agement and related support systems.
‘‘(3) For the first three fiscal years a fund is in oper-
ation, up to 50 percent of the unobligated balances of
funds provided in annual appropriations available at the
end of the fiscal year to the agency for salaries and ex-
penses may be transferred into the fund no later than the
end of the succeeding fiscal year.
‘‘(c) The fund shall be reimbursed or credited with
payments, including advance payments, from applicable
appropriations and funds of the agency, other Federal
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agencies, and other sources authorized by law for supplies,
materials, and services at rates which will recover the ex-
penses of operations including accrued leave, depreciation
of fund plant and equipment, and an amount necessary
to maintain a reasonable operating reserve, as determined
by the head of the agency.
‘‘(d)(1) In the third fiscal year after the fund is es-
tablished, and each year thereafter, any Federal entity
seeking to obtain any service financed through the fund
that is not inherently governmental in nature must not
be precluded from obtaining such service from one or more
other sources, either governmental or non-governmental,
in addition to the source finance through the funds.
‘‘(2) If, after the end of the third fiscal year after
a fund is established, any Federal entity seeking to obtain
any service financed through the fund that is not inher-
ently governmental in nature is precluded from obtaining
such service from one or more other sources, either gov-
ernmental or non-governmental, in addition to the source
financed through the fund, the fund shall be cancelled.’’.
(b) The table of sections for subchapter III of chapter
15 of title 31, United States Code, is amended by adding,
after the item for section 1537, the following new item:
‘‘Section 1538. Franchise Funds.’’.
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(c) Title 31, United States Code, is amended by add-
ing, after section 1538, a section 1539, as follows:
‘‘§ 1539. Innovation funds
‘‘(a) There is hereby authorized to be established an
innovation fund in any executive agency which does not
have such a fund, which shall be available without further
appropriation action by the Congress.
‘‘(b) The purpose of the fund is to provide a self-
sustaining source of financing for agencies to invest in
projects designed to produce measurable improvements in
agency efficiency and significant taxpayer savings.
Amounts available in the fund may be borrowed by the
agency for such projects, subject to subsection (e).
‘‘(c) Each agency that establishes an innovation fund
will develop an investment project selection process, in-
cluding specific investment criteria such as return on in-
vestment, payback period, extent of matching or in-kind
support (including such support from other Federal agen-
cies), technical merit, and budget justification.
‘‘(d) For the first three fiscal years a fund is in oper-
ation, up to 50 percent of the unobligated balances of
funds provided in annual appropriations available at the
end of the fiscal year to the agency (other than appropria-
tions for salaries and expenses) may be transferred to and
merged with the innovation fund to be available to make
277
loans to agency components for projects designed to en-
hance productivity and generate cost savings, provided
that such transfers occur no later than the end of the suc-
ceeding fiscal year.
‘‘(e)(1) Any amounts borrowed from the fund by an
agency component to finance a project selected under the
process described in subsection (c) shall be repaid to the
fund at the times specified in the repayment schedule
agreed upon at the time the loan is made.
‘‘(2) Interest on loans made by the fund shall be paid
to the fund at the rate on marketable Treasury securities
of similar maturity at the time the loan is made.
‘‘(3) Repayments shall be made from the accounts
anticipated to receive the greatest long-term benefit from
the project at the time the loan is made.
‘‘(4) Repayments to the fund shall take priority over
any other obligation of payments of an account designated
to make repayments under paragraph (3) of this sub-
section.’’.
(d) The table of sections for subchapter III of chapter
15 of title 31, United States Code, is amended by adding,
after the item for section 1538, the following new item:
‘‘Section 1539. Innovation Funds.’’.
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Subtitle C—Simplifying the
Management Reporting Process
SEC. 16301. SIMPLIFICATION OF MANAGEMENT REPORTING
PROCESS.
(a) To improve the efficiency of Executive branch
performance in implementing statutory requirements for
general management and financial management reports to
the Congress and its committees, the Director of the Of-
fice of Management and Budget may publish annually in
the President’s Budget his recommendations for consoli-
dation, elimination, or adjustments in frequency and due
dates of statutorily required periodic 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 general management or fi-
nancial management responsibility. For each rec-
ommendation, the Director shall provide an individualized
statement of the reasons that support the recommenda-
tion. In addition, for each report for which a recommenda-
tion is made, the Director shall state with specificity the
exact consolidation, elimination, or adjustment in fre-
quency or due date that is recommended. If the Director’s
recommendations are approved by law, they shall take ef-
fect.
279
(b) The Director’s recommendations shall be consist-
ent with the purpose stated in subsection (a).
(c) Prior to the publication of the recommendations
authorized in subsection (a), the Director or his designee
shall consult with the appropriate congressional commit-
tees, including the House Committee on Government Op-
erations and the Senate Committee on Governmental Af-
fairs, concerning the recommendations.
Subtitle D—Annual Financial
Reports
SEC. 16401. ANNUAL FINANCIAL REPORTS.
(a) Section 3515 of title 31, United States Code, is
amended to read as follows:
‘‘§ 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 of-
fice, bureau, and activity of the agency.
‘‘(b) Each audited financial statement of an executive
agency under this section shall reflect—
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‘‘(1) the overall financial position of the offices,
bureaus, and activities covered by the statement, in-
cluding assets and liabilities thereof; and
‘‘(2) results of operations of those offices, bu-
reaus, and activities.
‘‘(c) The Director of the Office of Management and
Budget shall prescribe the form and content of the finan-
cial statements of executive agencies under this section,
consistent with applicable accounting principles, stand-
ards, and requirements.
‘‘(d) The Director of the Office of Management and
Budget may waive the application of all or part of sub-
section (a).
‘‘(e) Not later than March 1 of 1996, the head of
each Executive agency identified in section 901(b) of this
title and designated by the Director of the Office of Man-
agement and Budget shall prepare and submit to the Di-
rector 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, bu-
reau, and activity of the agency.
‘‘(f) Not later than March 31 of 1994, 1995, and,
for Executive agencies not designated by the Director of
the Office of Management and Budget under subsection
(e), 1996, the head of each Executive agency identified
281
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, cover-
ing—
‘‘(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.
‘‘(g) for purposes of subsection (f), the term ‘commer-
cial 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) 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 (e) of section 3515 of this title,
the person who audits the statement for purpose of sub-
section (e) of this section shall submit a report on the
audit to the head of the agency. A report under this sub-
282
section shall be prepared in accordance with generally ac-
cepted government auditing standards.
‘‘(2) Not later than June 30 following the fiscal year
for which a financial statement is submitted under sub-
section (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 pre-
pared in accordance with generally accepted government
auditing standards.’’.
Subtitle E—Strengthening Debt
Collection Programs
SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR EN-
HANCING DEBT COLLECTION.
(a) Title 31, United States Code, is amended by add-
ing, after section 3720A, a section 3720B, as follows:
‘‘§ 3720B. Authorization of appropriations for enhanc-
ing 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 one fiscal
year is authorized to be credited in the following fis-
cal year to a special fund for such program;
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‘‘(2) an amount not to exceed 10 percent of any
sustained annual increase in delinquent debt collec-
tions, as defined by the Director of the Office of
Management and Budget, is authorized to be cred-
ited to a special fund for such program; and
‘‘(3) from amounts credited under paragraphs
(1) and (2), such sums as may be necessary are au-
thorized to be appropriated for the improvement of
that program’s debt collection activities, including,
but not limited to, account and loan servicing, delin-
quent 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.’’.
(b) The table of sections for subchapter II of chapter
37 of title 31, United States Code, is amended by adding,
after the item for section 3720A, the following new item:
‘‘Section 3720B. Authorization of appropriations for enhancing debt collection.’’.
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SEC. 16502. CONTRACTS FOR COLLECTION SERVICES.
(a) Subsection 3701(d) of Title 31, United States
Code, is amended—
(1) by striking ‘‘and 3716–3719’’ and inserting
in lieu thereof ‘‘, 3716, and 3717’’; and
(2) by striking ‘‘, the Social Security Act (42
U.S.C. 301 et seq.),’’.
(b) Section 3701 of title 31, United States Code, is
amended by adding at the end the following:
‘‘(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, title 26 of
the United States Code.’’.
SEC. 16503. NOTIFICATION TO AGENCIES OF DEBTORS’
MAILING ADDRESSES.
Section 3720A of title 31, United States Code is
amended by striking ‘‘the individual’s home address.’’ at
the end of subsection (c) and inserting the following: ‘‘the
person’s mailing address. Provision of this information is
authorized by section 6103(m)(2) of the Internal Revenue
Code (26 U.S.C. 6103(m)(2)).’’.
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Subtitle F—Improving Department
of Justice Debt Collection
SEC. 16601. DEBT COLLECTION FUND.
(a) Section 3011 of title 28, United States Code, is
amended to read as follows:
‘‘§ 3011. Establishment of debt collection fund; assess-
ment of surcharge on debt
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) ESTABLISHMENT
OF
DEBT
COLLECTION
FUND.—
‘‘(A) There is hereby established in the
Treasury a Debt Collection Fund (hereafter re-
ferred to as ‘‘the Fund’’), which shall be avail-
able to the Attorney General to the extent and
in such amounts as are provided in advance in
appropriations Acts solely for the purposes
specified in paragraph (2).
‘‘(B) If at the end of any fiscal year, unap-
propriated
balances
in
the
Fund
exceed
$15,000,000, the excess balances shall be trans-
ferred to the general fund of the Treasury.
‘‘(2) The Attorney General may use amounts
appropriated to the Fund to reimburse any appro-
priation or fund of the Department of Justice or any
other executive agency for expenses incurred in con-
286
ducting or providing support to debt collection litiga-
tion, enforcing judgments, and related activities per-
taining to the collection of any debt or monies owed
to the United States Government.
‘‘(3) Reimbursement received pursuant to para-
graph (2) shall be used solely for the purposes speci-
fied in that paragraph under authorities available to
the receiving appropriation or fund.
‘‘(b) SURCHARGE.—
‘‘(1) ASSESSMENT OF SURCHARGE ON DEBT.—
‘‘(A) In any action in which the United
States prevails on its claim for a debt, and sub-
ject to paragraph (b)(1)(B) and (b)(2), the
court shall award the United States, and the
Department of Justice shall collect and deposit,
a surcharge of 10 percent of the total amount
of any judgment or settlement which is ap-
proved by the court.
‘‘(B) Paragraph (b)(1)(A) shall not apply
if—
‘‘(i) the United States receives an at-
torney’s fee in connection with the enforce-
ment of the claim;
287
‘‘(ii) the law upon which the action or
claim is based provides any other amount
to cover such costs; or
‘‘(iii) the judgment or settlement is
for a claim under title 26, United States
Code.
‘‘(C) Notwithstanding 31 U.S.C. 3302 or
any other statute affecting the crediting of col-
lections, and pursuant to section (b)(2), for fis-
cal year 1994 and thereafter, surcharges col-
lected pursuant to this section shall be depos-
ited in, and collect to, the Fund.
‘‘(2) AUTHORITY TO AWARD AND CREDIT OF
SURCHARGES.—The authority of the court to award
surcharges and of the Department of Justice to col-
lect and deposit such surcharges pursuant to para-
graph (b)(1) shall be available only to the extent
provided in advance in appropriations Acts.’’.
(b) The table of sections for chapter 176 of Title 28,
United States Code, is amended by amending the item for
Section 3011 to read: ‘‘3011. Establishment of debt collec-
tion fund; assessment of surcharge on debt.’’.
SEC. 16602. CONTRACTS FOR COLLECTION SERVICES.
Subparagraph 3718(B)(1)(A) of title 31, United
States Code, is amended by striking the following: ‘‘If the
288
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.’’.
Subtitle G—Adjusting Civil
Monetary Penalties for Inflation
SEC. 16701. ADJUSTING CIVIL MONETARY PENALTIES FOR
INFLATION.
The Federal Civil Penalties Inflation Adjustment Act
of 1990 is amended by—
(1) amending section 4 to read as follows: ‘‘The
head of each agency shall—
‘‘(1) by regulation, no later than September 30,
1994, and at least once every 4 years thereafter, ad-
just each civil monetary penalty provided by law
within the jurisdiction of the Federal agency, except
for any penalty under title 26, United States Code,
by the inflation adjustment described under section
5 and publish each such adjustment in the Federal
Register; and
289
‘‘(2) provide a report to the Secretary of the
Treasury by November 15 of each year on all pen-
alties adjusted during the preceding fiscal year.’’;
(2) amending subsection 5(a) by striking ‘‘The
adjustment described under paragraphs (4) and
(5)(A) of section 4’’ and inserting ‘‘The inflation ad-
justment’’; and
(3) adding, after section 6, a section 7, as fol-
lows: ‘‘Section 7. Any increase to a civil monetary
penalty resulting from this Act shall apply only to
violations which occur after the date any such in-
crease takes effect.’’.
TITLE XVII—YEAR-END
SPENDING
SEC. 17001. YEAR-END SPENDING.
Section 1301 of title 31, United States Code, is
amended by adding the following new subsection at the
end:
‘‘(e) Not to exceed 50 percent of unobligated balances
remaining available at the end of one fiscal year from ap-
propriations made available for salaries and expenses
made for that year shall remain available through Septem-
ber 30 of the following fiscal year for each account for
the same purposes. Not to exceed 2 percent of the funds
so carried over may be used to pay cash awards to employ-
290
ees, as authorized by law, and not to exceed 3 percent
of the funds may be used for employee training pro-
grams.’’.
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