To amend the Inspector General Act of 1978 (5 U.S.C. App.) to enhance the independence of the Inspectors General, create a Council of the Inspectors General on Integrity and Efficiency, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Government Accountability 
Act of 2003''.

SEC. 2. ENHANCING INDEPENDENCE OF INSPECTORS GENERAL.

    (a) Removal for Cause.--The Inspector General Act of 1978 (5 U.S.C. 
App.) is amended--
            (1) in section 3(b) by adding at the end the following: 
        ``An Inspector General may be removed from office prior to the 
        expiration of his term on the following grounds:
            ``(1) permanent disability;
            ``(2) inefficiency;
            ``(3) neglect of duty;
            ``(4) malfeasance; or
            ``(5) conviction of a felony or conduct involving moral 
        turpitude.''; and
            (2) in section 8G(e) by adding at the end the following: 
        ``An Inspector General may be removed from office prior to the 
        expiration of his term on the following grounds:
            ``(1) permanent disability;
            ``(2) inefficiency;
            ``(3) neglect of duty;
            ``(4) malfeasance; or
            ``(5) conviction of a felony or conduct involving moral 
        turpitude.''.
    (b) Establishment of Terms of Office.--The Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) in section 3 by adding after subsection (d) the 
        following new subsection:
    ``(e) The term of office of each Inspector General shall be seven 
years. Any individual appointed to fill a vacancy in such position, 
occurring before the expiration of the term for which his predecessor 
was appointed, shall be appointed for the remainder of that term.''; 
and
            (2) in section 8G by adding to the end of subsection (c) 
        the following: ``The term of office of each Inspector General 
        shall be seven years. Any individual appointed to fill a 
        vacancy in such position, occurring before the expiration of 
        the term for which his predecessor was appointed, shall be 
        appointed for the remainder of that term.''.

SEC. 3. DIRECT SUBMISSION OF BUDGET REQUESTS TO CONGRESS.

    The Inspector General Act of 1978 (5 U.S.C. App.) is amended in 
section 6 by adding at the end the following new subsection:
    ``(f) For each fiscal year, an Inspector General may transmit an 
appropriation estimate and request to the Office of Management and 
Budget and to the appropriate committees or subcommittees of Congress, 
in addition to any appropriation estimate and request submitted to the 
head of the establishment involved. Each budget of the United States 
Government submitted by the President shall include a separate 
statement of the amount of appropriations requested by each Inspector 
General who has submitted an appropriation estimate and request to 
Congress. Each such budget shall also include a statement providing a 
comparison of the appropriation estimate and request submitted by an 
Inspector General and the funds requested by the head of the 
establishment involved.''.

SEC. 4. ESTABLISHMENT OF COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY 
              AND EFFICIENCY.

    (a) Establishment.--The Inspector General Act of 1978 (5 U.S.C. 
App.) is amended by redesignating sections 11 and 12 in order as 
sections 12 and 13, and by inserting after section 10 the following new 
section:

``SEC. 11. ESTABLISHMENT OF THE COUNCIL OF THE INSPECTORS GENERAL ON 
              INTEGRITY AND EFFICIENCY.

    ``(a) Establishment.--There is established as an independent entity 
within the executive branch the Council of the Inspectors General on 
Integrity and Efficiency (in this Act referred to as the `Council'). 
The Council's mission will be to increase the professionalism and 
effectiveness of personnel by developing policies, standards, and 
approaches to aid in the establishment of a well-trained and highly 
skilled workforce in the offices of the Inspectors General.
    ``(b) Membership.--
            ``(1) In general.--The Council shall consist of the 
        following members:
                    ``(A) All Inspectors General whose offices were 
                established in the Inspector General Act of 1978 and 
                subsequent amendments.
                    ``(B) The Controller of the Office of Federal 
                Financial Management.
                    ``(C) The Associate Deputy Director for 
                Investigations of the Federal Bureau of Investigation.
                    ``(D) The Director of the Office of Government 
                Ethics.
                    ``(E) The Special Counsel of the Office of Special 
                Counsel.
                    ``(F) The Deputy Director of the Office of 
                Personnel Management.
                    ``(G) The Deputy Director for Management of the 
                Office of Management and Budget.
    ``(c) Chair.--The chairman of the Council shall be chosen from 
among the Inspectors General by a majority of the Inspectors General 
and shall serve as chair of the Council for a three-year period.
    ``(d) Meetings.--The Council shall meet at least semiannually, at 
the call of chair.
    ``(e) Functions and Duties.--
            ``(1)(A) The Council shall continually identify, review, 
        and discuss areas of weakness and vulnerability in Federal 
        programs and operations to fraud, waste, and abuse, and shall 
        develop plans for coordinated, government-wide activities that 
        address these problems and promote economy and efficiency in 
        Federal programs and operations. These activities will include 
        interagency and interentity audit and investigation programs 
        and projects to deal efficiently and effectively with those 
        problems concerning fraud and waste that exceed the capability 
        of jurisdiction of an individual agency or entity. The Council 
        shall recognize the preeminent role of the Department of 
        Justice in law enforcement and litigation.
            ``(B) The Council shall develop policies that will aid in 
        the establishment of a corps of well-trained and highly skilled 
        Office of Inspector General staff members.
            ``(2) Individual members of the Council should, to the 
        extent permitted under law, adhere to professional standards 
        developed by the Councils and participate in the plans, 
        programs, and projects of the Councils.
            ``(3) The creation and operation of the Council shall 
        neither interfere with existing authority and responsibilities 
        in the relevant agencies and entities nor augment or diminish 
        the statutory authority or responsibilities of individual 
        members of the Council.
    ``(f) Responsibilities of the Chair.--
            ``(1) The Chair may appoint a Vice Chair to assist in 
        carrying out the functions of the Council.
            ``(2) The Chair shall, in consultation with the members of 
        the Council, establish the agenda for Council activities.
            ``(3) The Chair shall, on behalf of the Council, report to 
        the President on the activities of the Council. The Chair 
        shall, as appropriate, advise the Council with respect to the 
        President's consideration of the Council's activities.
            ``(4) The Chair shall provide agency and entity heads with 
        summary reports of the activities of the Council.
            ``(5) The Chair shall establish, in consultation with 
        members of the Council, such committees as deemed necessary and 
        appropriate for the efficient conduct of Council functions.''.
    (b) Existing Executive Order.--Executive Order 12805, dated May 14, 
1992, shall have no force or effect.
    (c) Conforming Amendments.--The Inspector General Act of 1978 (5 
U.S.C. App.) is amended--
            (1) in sections 2(1), 4(b)(2), and 8G(a)(1)(A) by striking 
        ``section 11(2)'' each place it appears and inserting ``section 
        12(2)''; and
            (2) in section 8G(a), in the matter preceding paragraph 
        (1), by striking ``section 11'' and inserting ``section 12''.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $750,000 for each of fiscal 
years 2005 through 2009.

SEC. 5. PERSONNEL FLEXIBILITIES.

    (a) In General.--The Inspector General Act of 1978 (5 U.S.C. App.) 
is amended by inserting after section 3 the following:

                     ``personnel management system

    ``Sec. 3A. (a) The Office of Personnel Management shall maintain a 
personnel management system, which, except as otherwise expressly 
provided in this Act, shall apply to the officers and employees of the 
various Offices of Inspector General. The Office of Personnel 
Management may prescribe a regulation about the system only after 
notice and opportunity for public comment. A reprisal or threat of 
reprisal may not be made against an officer or employee of an Office of 
Inspector General because of comments on a proposed regulation about 
the system.
    ``(b) The personnel management system shall--
            ``(1) include the principles of section 2301(b) of title 5;
            ``(2) prohibit personnel practices prohibited under section 
        2302(b) of title 5;
            ``(3) prohibit political activities prohibited under 
        subchapter III of chapter 73 of title 5;
            ``(4) ensure that officers and employees are appointed, 
        promoted, and assigned only on the basis of merit and fitness, 
        but without regard to those provisions of title 5 governing 
        appointments and other personnel actions in the competitive 
        service; and
            ``(5) provide that an Inspector General may, in his or her 
        discretion, fix basic pay of officers and employees (apart from 
        those whose basic pay is otherwise fixed by law) in a manner 
        consistent with section 5301 of title 5.
    ``(c) Under the personnel management system--
            ``(1) the Office of Personnel Management shall publish a 
        schedule of basic pay rates for positions to which such system 
        applies;
            ``(2) the highest basic pay rate under the pay schedule may 
        not exceed the highest rate of basic pay for GS-15;
            ``(3) except as provided under section 5349(a) of title 5, 
        rates of basic pay of officers and employees who are subject to 
        such system shall be adjusted at the same time and to the same 
        extent as are rates of basic pay rates under the General 
        Schedule; and
            ``(4) officers and employees who are subject to such system 
        shall be entitled to grade and basic pay retention consistent 
        with subchapter VI of chapter 53 of title 5.
    ``(d) The personnel management system shall provide--
            ``(1) for a system of performance appraisals that meets the 
        requirements of section 4302 of title 5;
            ``(2) for the reduction in grade or removal of an officer 
        or employee because of unacceptable performance, consistent 
        with section 4303 of title 5;
            ``(3) for other personnel actions consistent with chapter 
        75 of title 5; and
            ``(4) a procedure for processing complaints and grievances 
        not otherwise provided for under paragraphs (2) and (3) of this 
        subsection or subsection (e)(1) of this section.
    ``(e)(1) The personnel management system shall--
            ``(A) provide that all personnel actions affecting an 
        officer, employee, or applicant for employment be taken without 
        regard to race, color, religion, age, sex, national origin, 
        political affiliation, marital status, or handicapping 
        condition; and
            ``(B) include a minority recruitment program consistent 
        with section 7201 of title 5.
    ``(2) Nothing in this section shall affect--
            ``(A) a right or remedy of an officer, employee, or 
        applicant for employment under a law prohibiting discrimination 
        in employment in the Government on the basis of race, color, 
        religion, age, sex, national origin, political affiliation, 
        marital status, or handicapping condition; or
            ``(B) a lawful effort to achieve equal employment 
        opportunity through affirmative action.
    ``(f)(1)(A) The Office of Personnel Management shall prescribe 
regulations, consistent with regulations issued under section 3502(a) 
of title 5, for the separation of officers or employees of an Office 
during a reduction in force or other adjustment in force.
    ``(B) The regulations shall, in descending order of priority, give 
effect to--
            ``(i) tenure of employment;
            ``(ii) military preference, subject to section 3501(a)(3) 
        of title 5;
            ``(iii) veterans' preference, in accordance with 
        subsections (b) and (c) of 3502 of title 5;
            ``(iv) performance ratings;
            ``(v) length of service, computed in accordance with the 
        second sentence of section 3502(a) of title 5; and
            ``(vi) other objective factors, such as skills and 
        knowledge, that the relevant Inspector General considers 
        necessary and appropriate to realign the Office's workforce in 
        order to meet current and future mission needs, to correct 
        skill imbalances, or to reduce high-grade, managerial, or 
        supervisory positions.
    ``(C) Notwithstanding subparagraph (B), the regulations relating to 
removal from the Senior Executive Service in a reduction in force or 
other adjustment in force shall be consistent with section 3595(a) of 
title 5.
    ``(2)(A) Except as provided in subparagraph (B), an officer or 
employee may not be released, due to a reduction force, unless such 
officer or employee is given written notice at least 60 days before 
such officer or employee is so released. Such notice shall include--
            ``(i) the personnel action to be taken with respect to the 
        officer or employee involved;
            ``(ii) the effective date of the action;
            ``(iii) a description of the procedures applicable in 
        identifying officers or employees for release;
            ``(iv) the officer's or employee's ranking relative to 
        other competing officers and employees, and how that ranking 
        was determined; and
            ``(v) a description of any appeal or other rights which may 
        be available.
    ``(B) The Inspector General may, in writing, shorten the period of 
advance notice required under subparagraph (A) with respect to a 
particular reduction in force, if necessary because of circumstances 
not reasonably foreseeable, except that such period may not be less 
than 30 days.
    ``(g) The regulations under subsection (g) shall include provisions 
under which, at the discretion of the Inspector General, the 
opportunity to separate voluntarily (in order to permit the retention 
of an individual occupying a similar position) shall, with respect to 
the Office, be available to the same extent and in the same manner as 
described in subsection (f)(1)-(4) of section 3502 of title 5 (with 
respect to the Department of Defense or a military department).
    ``(h) Nothing in this section shall be considered to supersede or 
to constitute authority for the Office of Personnel Management to 
supersede (by regulation or otherwise) any provision of section 7, 
8C(b), or 8F(a)(1), or of subsection (c), (f)(1), or (g)(2) of section 
8G.''.
    (b) Senior Executive Service.--In the application of section 3133 
of title 5, United States Code (and every other provision of such title 
5 which relates to the Senior Executive Service, as identified by the 
Office of Personnel Management in regulations)--
            (1) each Office of Inspector General shall be considered to 
        be a separate agency; and
            (2) any reference to an agency head shall, with respect to 
        an Office of Inspector General, be considered to refer to the 
        Inspector General who is the head of such Office.
    (c) Voluntary Separation.--In the application of section 8336 and 
section 8414 of title 5, United States Code--
            (1) each Office of Inspector General shall be considered to 
        be a separate agency; and
            (2) any Office of Inspector General shall, with respect to 
        an Office of Inspector General, be considered to refer to the 
        Inspector General who is the head of such Office.

SEC. 6. SUBMISSION OF REPORTS TO CONGRESS; AMENDMENT TO REPORTING 
              PERIOD.

    Section 5(b) of the Inspector General Act of 1978 (5 U.S.C. App.) 
is amended by striking the language preceding paragraph (1) and 
inserting the following language: ``Semiannual reports of each 
Inspector General shall be furnished to the head of the establishment 
involved and to the appropriate committees and subcommittees of 
Congress not later than January 31 and July 31 of each year. Within 30 
days after receipt of the report, the head of establishment involved 
may submit a report to the appropriate committees and subcommittees of 
Congress containing--''.

Summary: Improving Government Accountability Act of 2003 - Amends the Inspector General Act of 1978 to allow an Inspector General (IG) to be removed from office prior to the expiration of his term on the grounds of: (1) permanent disability; (2) inefficiency; (3) neglect of duty; (4) malfeasance; or (5) conviction of a felony or conduct involving moral turpitude.

Establishes the term of office of each IG as seven years. Directs that any individual appointed to fill a vacancy in that position, occurring before the expiration of the term for which his predecessor was appointed, be appointed for the remainder of that term.

Authorizes an IG, for each fiscal year, to transmit an appropriation estimate and request to the Office of Management and Budget and to the appropriate congressional committees or subcommittees, in addition to the head of the establishment involved. Directs that each Government budget submitted by the President include a separate statement regarding amounts requested by IGs, including a comparison with the amounts requested by the head of the establishment involved.

Establishes within the Executive Branch the Council of the Inspectors General on Integrity and Efficiency to increase the professionalism and effectiveness of personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the offices of the IG.

Directs the Office of Personnel Management to maintain a personnel management system applicable to the officers and employees of IG offices. Prohibits reprisals because of comments on proposed regulations.