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 author-
ity under which Federal agencies may pay cash awards 
to employees for making cost saving disclosures, and 
for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bonuses for Cost-Cutters 
Act of 2016’’. 
SEC. 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’’ and inserting ‘‘Definitions’’; 
and 
(B) in subsection (a)— 
(i) by striking the period at the end 
and inserting ‘‘; and’’; and 
(ii) by striking ‘‘this subchapter, the 
term’’ and inserting the following: ‘‘this 
subchapter— 
‘‘(1) the term’’; 
(iii) by adding at the end the fol-
lowing: 
‘‘(2) the term ‘surplus salaries and expenses 
funds’ means amounts made available for the salaries 
and expenses account, or equivalent account, of an 
agency— 
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‘‘(A) that are identified by an employee of 
the agency under section 4512(a) as unnecessary; 
‘‘(B) that the Inspector General of the agen-
cy 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 pur-
pose 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 sur-
plus salaries and expenses funds’’ after 
‘‘mismanagement’’; 
(ii) in paragraph (2), by inserting ‘‘or 
identification’’ after ‘‘disclosure’’; and 
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(iii) in the matter following paragraph 
(2), by inserting ‘‘or identification’’ after 
‘‘disclosure’’; and 
(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 em-
ployee 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 rec-
ommendations of the Inspector General or other agency em-
ployee. 
‘‘(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 ap-
plicable 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 
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used to reduce the Federal debt (in such manner as the Sec-
retary 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 issues stand-
ards 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 re-
programmed for use by the agency, in accordance 
with any limitation on such a transfer or reprogram-
ming 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 
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during the previous fiscal year through disclosures of pos-
sible 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 poten-
tially surplus salaries and expenses funds by an em-
ployee 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 infor-
mation 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 Fed-
eral cost saving and awards based on the reports submitted 
under paragraphs (1) and (2). 
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‘‘(f) The Director of the Office of Personnel Manage-
ment 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 the Bonuses for Cost-Cutters Act of 2016, 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
AMEND-
MENT.—The table of sections for subchapter II of 
chapter 45 of title 5, United States Code, is amended 
by striking the item relating to section 4511 and in-
serting the following: 
‘‘4511. Definitions 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 ‘agen-
cy’— 
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‘‘(1) has the meaning given that term under sec-
tion 551(1); but 
‘‘(2) includes an entity described in subpara-
graphs (A) through (G) of 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 Execu-
tive 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
AMEND-
MENT.—The table of sections for chapter 45 of title 5, 
United States Code, is amended by striking the item 
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 
the authority under which Federal agencies may 
pay cash awards to employees for making cost 
saving disclosures, and for other purposes. 
NOVEMBER 14, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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