To establish an Office of Special Inspector General for Hurricane Katrina Recovery.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Inspector General for 
Hurricane Katrina Recovery Act''.

SEC. 2. SPECIAL INSPECTOR GENERAL FOR HURRICANE KATRINA RECOVERY.

    (a) Purposes.--The purposes of this section are as follows:
            (1) To provide for the independent and objective conduct 
        and supervision of audits and investigations relating to the 
        Federal programs and Federal operations of Hurricane Katrina 
        recovery.
            (2) To provide for the independent and objective leadership 
        and coordination of, and recommendations on, policies designed 
        to--
                    (A) promote economic efficiency and effectiveness 
                in the administration of such programs and operations; 
                and
                    (B) prevent and detect waste, fraud, and abuse in 
                such programs and operations.
            (3) To provide for an independent and objective means of 
        keeping the Secretary of Homeland Security and all other 
        Federal departments and agencies involved in Hurricane Katrina 
        recovery fully and currently informed about problems and 
        deficiencies relating to the administration of such programs 
        and operations and the necessity for and progress for 
        corrective action.
    (b) Office of Inspector General.--There is hereby established the 
Office of the Special Inspector General for Hurricane Katrina Recovery.
    (c) Appointment of Inspector General; Removal.--
            (1) The head of the Office of the Special Inspector General 
        for Hurricane Katrina Recovery is the Special Inspector General 
        for Hurricane Katrina Recovery (in this section referred to as 
        the ``Special Inspector General''), who shall be appointed by 
        the Secretary of Homeland Security, in consultation with the 
        Secretary of Defense.
            (2) The appointment of Special Inspector General shall be 
        made solely on the basis of integrity and demonstrated ability 
        in accounting, auditing, financial analysis, law, management 
        analysis, public administration, or investigations.
            (3) The appointment of an individual as Special Inspector 
        General shall be made not later than 3 days after the date of 
        the enactment of this Act.
            (4) The Special Inspector General shall be removable from 
        office in accordance with the provisions of section 3(b) of the 
        Inspector General Act of 1978 (5 U.S.C. App.).
            (5) For purposes of section 7324 of title 5, United States 
        Code, the Special Inspector General shall not be considered an 
        employee who determines policies to be pursued by the United 
        States in the nationwide administration of Federal law.
            (6) The annual rate of basic pay of the Special Inspector 
        General shall be the annual rate of basic pay provided for 
        positions at level IV of the Executive Schedule under section 
        5315 of title 5, United States Code.
    (d) Assistant Inspectors General.--The Special Inspector General 
shall, in accordance with applicable laws and regulations governing the 
civil service--
            (1) appoint an Assistant Special Inspector General for 
        Auditing who shall have the responsibility for supervising the 
        performance of auditing activities relating to Federal programs 
        and operations of Hurricane Katrina recovery; and
            (2) appoint an Assistant Special Inspector General for 
        Investigations who shall have the responsibility for 
        supervising the performance of investigative activities 
        relating to such programs and operations.
    (e) Supervision.--
            (1) Except as provided in paragraph (2), the Special 
        Inspector General shall report directly to, and be under the 
        general supervision of, the Secretary of Homeland Security and 
        the Secretary of Defense.
            (2) No officer of the Department of Homeland Security nor 
        any other officer of the Federal Government shall prevent or 
        prohibit the Special Inspector General from initiating, 
        carrying out, or completing any audit or investigation related 
        to Hurricane Katrina recovery activities, or from issuing any 
        subpoena during the course of any audit or investigation.
    (f) Duties.--
            (1) It shall be the duty of the Special Inspector General 
        to conduct, supervise, and coordinate audits and investigations 
        of the treatment, handling, and expenditure of amounts 
        appropriated or otherwise made available for Hurricane Katrina 
        recovery by the Federal Government, and of the programs, 
        operations, and contracts carried out utilizing such funds, 
        including--
                    (A) the oversight and accounting of the obligation 
                and expenditure of such funds;
                    (B) the monitoring and review of reconstruction 
                activities funded by such funds;
                    (C) the monitoring and review of contracts funded 
                by such funds;
                    (D) the monitoring and review of the transfer of 
                such funds and associated information between and among 
                departments, agencies, and entities of the United 
                States, and private and nongovernmental entities; and
                    (E) the maintenance of records on the use of such 
                funds to facilitate future audits and investigations of 
                the use of such funds.
            (2) The Special Inspector General shall establish, 
        maintain, and oversee such systems, procedures, and controls as 
        the Special Inspector General considers appropriate to 
        discharge the duty under paragraph (1).
            (3) In addition to the duties specified in paragraphs (1) 
        and (2), the Special Inspector General shall also have the 
        duties and responsibilities of inspectors general under the 
        Inspector General Act of 1978.
            (4) In carrying out the duties, responsibilities, and 
        authorities of the Special Inspector General under this 
        section, the Special Inspector General shall coordinate with, 
        and receive the cooperation of, the Inspectors General of all 
        other Federal departments and agencies.
            (5) The Special Inspector General shall, within 10 days 
        after the date of the appointment of the Special Inspector 
        General, complete the following:
                    (A) Open a 24-hour fraud, waste, and abuse hotline.
                    (B) Deploy auditors and investigators to the Gulf 
                of Mexico Region of the United States.
                    (C) Announce a strategic plan for oversight, 
                including audits of no-bid contracts.
                    (D) Go to the Gulf of Mexico Region of the United 
                States media with antifraud message.
                    (E) Liaise with Hurricane Katrina recovery Federal 
                agencies to identify vulnerabilities.
                    (F) Coordinate interagency oversight elements 
                through creation of a task force.
    (g) Powers and Authorities.--
            (1) In carrying out the duties specified in subsection (f), 
        the Special Inspector General shall have the authorities 
        provided in section 6 of the Inspector General Act of 1978, 
        including the authorities under subsection (e) of such section.
            (2) The Special Inspector General shall carry out the 
        duties specified in subsection (f)(1) in accordance with 
        section 4(b)(1) of the Inspector General Act of 1978.
    (h) Personnel, Facilities, and Other Resources.--
            (1) The Special Inspector General may select, appoint, and 
        employ such officers and employees as may be necessary for 
        carrying out the duties of the Special Inspector General, 
        subject to the provisions of title 5, United States Code, 
        governing appointments in the competitive service, and the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        such title, relating to classification and General Schedule pay 
        rates.
            (2) The Special Inspector General may obtain services as 
        authorized by section 3109 of title 5, United States Code, at 
        daily rates not to exceed the equivalent rate prescribed for 
        grade GS-15 of the General Schedule by section 5332 of such 
        title.
            (3) To the extent and in such amounts as may be provided in 
        advance by appropriations Acts, the Special Inspector General 
        may enter into contracts and other arrangements for audits, 
        studies, analyses, and other services with public agencies and 
        with private persons, and make such payments as may be 
        necessary to carry out the duties of the Special Inspector 
        General.
            (4)(A) Upon request of the Special Inspector General for 
        information or assistance from any department, agency, or other 
        entity of the Federal Government, the head of such entity 
        shall, insofar as is practicable and not in contravention of 
        any existing law, furnish such information or assistance to the 
        Special Inspector General, or an authorized designee.
            (B) Whenever information or assistance requested by the 
        Special Inspector General is, in the judgment of the Special 
        Inspector General, unreasonably refused or not provided, the 
        Special Inspector General shall report the circumstances to the 
        Secretary of Homeland Security or the Secretary of Defense, as 
        appropriate, and to the appropriate committees of Congress 
        without delay.
            (5) The Secretary of Homeland Security or the Secretary of 
        Defense, as appropriate, shall provide the Special Inspector 
        General with appropriate and adequate office space at the 
        central and field office locations of the Department of 
        Homeland Security, together with such equipment, office 
        supplies, and communications facilities and services as may be 
        necessary for the operation of such offices, and shall provide 
        necessary maintenance services for such offices and the 
        equipment and facilities located therein.
    (i) Reports.--
            (1) Not later than 30 days after the end of each fiscal 
        year quarter, beginning with the quarter following the quarter 
        in which the Special Inspector General is appointed, the 
        Special Inspector General shall submit to the appropriate 
        committees of Congress a report summarizing for the period of 
        that quarter and, to the extent possible, the period from the 
        end of such quarter to the time of the submission of the 
        report, the activities of the Special Inspector General and the 
        Hurricane Katrina recovery activities of the Federal 
        Government. Each report shall include, for the period covered 
        by such report, a detailed statement of all obligations, 
        expenditures, and revenues associated with recovery activities 
        for Hurricane Katrina, including the following:
                    (A) Obligations and expenditures of appropriated 
                funds.
                    (B) Accounting of the costs incurred to date for 
                Hurricane Katrina recovery, together with the estimate 
                of the Federal Government's costs to complete each 
                project and each program.
                    (C) Operating expenses of any Federal departments, 
                agencies, or entities receiving appropriated funds for 
                Hurricane Katrina recovery activities.
                    (D) In the case of any contract described in 
                paragraph (2)--
                            (i) the amount of the contract or other 
                        agreement;
                            (ii) a brief discussion of the scope of the 
                        contract or other agreement;
                            (iii) a discussion of how the contracting 
                        department or agency identified, and solicited 
                        offers from, potential contractors to perform 
                        the contract, together with a list of the 
                        potential contractors that were issued 
                        solicitations for the offers; and
                            (iv) the justification and approval 
                        documents on which was based the determination 
                        to use procedures other than procedures that 
                        provide for full and open competition.
            (2) A contract described in this paragraph is any major 
        contract or other agreement that is entered into by any 
        department or agency of the United States Government that 
        involves the use of amounts appropriated or otherwise made 
        available for Hurricane Katrina recovery with any public or 
        private sector entity for any of the following purposes:
                    (A) To build or rebuild physical infrastructure.
                    (B) To establish or reestablish a political or 
                societal institution.
                    (C) To provide products or services to the people.
            (3) Not later than 14 days after the appointment of the 
        Special Inspector General, and every 30 days thereafter until 
        the submission of the first quarterly report described in 
        paragraph (1), the Special Inspector General shall submit to 
        the appropriate committees of Congress an interim report 
        summarizing for the period from the date of appointment of the 
        Special Inspector General in the case of the first interim 
        report and from the date of the previous interim report for 
        subsequent interim reports the activities of the Special 
        Inspector General and the Hurricane Katrina recovery activities 
        of the Federal Government. Each interim report shall include 
        but not be limited to the following for the period covered by 
        the interim report:
                    (A) The state of the Office of the Special 
                Inspector General for Hurricane Katrina Recovery.
                    (B) The status of auditors and investigators 
                deployed to the Gulf of Mexico Region of the United 
                States.
                    (C) Strategic plan for oversight, including audits 
                of no bid contracts.
                    (D) Vulnerabilities identified and immediate 
                actions to address them.
                    (E) Measures taken to coordinate interagency 
                oversight elements.
            (4) Not later than March 31, 2006, and semiannually 
        thereafter, the Special Inspector General shall submit to the 
        appropriate committees of Congress a report meeting the 
        requirements of section 5 of the Inspector General Act of 1978.
            (5) The Special Inspector General shall publish each report 
        under this subsection on the Internet website of the Secretary 
        of Homeland Security and the Secretary of Defense.
            (6) Nothing in this subsection shall be construed to 
        authorize the public disclosure of information that is--
                    (A) specifically prohibited from disclosure by any 
                other provision of law;
                    (B) specifically required by Executive order to be 
                protected from disclosure in the interest of national 
                defense or national security or in the conduct of 
                foreign affairs; or
                    (C) a part of an ongoing criminal investigation.
    (j) Report Coordination.--
            (1) The Special Inspector General shall also submit each 
        report under subsection (i) to the Secretary of Homeland 
        Security and the Secretary of Defense.
            (2) Not later than 7 days after receipt of a report under 
        paragraph (1), the Secretary of Homeland Security or the 
        Secretary of Defense, respectively, may submit to the 
        appropriate committees of Congress any comments on the matters 
        covered by the report as the Secretary of Homeland Security or 
        the Secretary of Defense, as the case may be, considers 
        appropriate.
    (k) Transparency.--
            (1) Not later than 30 days after the date of the submittal 
        to Congress of a report under subsection (i), the Secretary of 
        Homeland Security and the Secretary of Defense shall jointly 
        make copies of such report available to the public upon 
        request, and at a reasonable cost.
            (2) Not later than 60 days after the date of the submittal 
        to Congress under subsection (j)(2) of comments on a report 
        under subsection (i), the Secretary of Homeland Security and 
        the Secretary of Defense shall jointly make copies of such 
        comments available to the public upon request, and at a 
        reasonable cost.
    (l) Waiver.--
            (1) The President may waive the requirement under paragraph 
        (1) or (3) of subsection (i) for the inclusion in a report 
        under such paragraph of any element otherwise provided for 
        under such paragraph if the President determines that the 
        waiver is justified for national security reasons.
            (2) The President shall publish a notice of each waiver 
        made under this subsection in the Federal Register no later 
        than the date on which the reports required under paragraph (1) 
        or (3) of subsection (i) are submitted to Congress. The reports 
        required under paragraph (1) or (3) of subsection (i) shall 
        specify whether waivers under this subsection were made and 
        with respect to which elements.
    (m) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committees on Appropriations, Armed Services, and 
        Homeland Security and Governmental Affairs of the Senate; and
            (2) the Committees on Appropriations, Armed Services, 
        Government Reform, and Homeland Security of the House of 
        Representatives.
    (n) Termination.--The Office of Special Inspector General shall 
terminate on the date that is 10 months after the date, as determined 
by the Secretary of Homeland Security and the Secretary of Defense, on 
which 80 percent of the amounts appropriated or otherwise made 
available for Hurricane Katrina recovery by the Federal Government have 
been expended.

Summary: Special Inspector General for Hurricane Katrina Recovery Act - Establishes the Office of the Special Inspector General for Hurricane Katrina Recovery. Places at the head of such Office a Special Inspector General for Hurricane Katrina Recovery, who shall be appointed by the Secretary of Homeland Security.

Provides for the Special Inspector General to report directly to the Secretaries of Homeland Security and Defense.

Requires the Special Inspector General, among other specified duties, to conduct, supervise, and coordinate audits and investigations of the treatment, handling, and expenditure of amounts made available for Hurricane Katrina recovery by the federal government, and of the programs, operations, and contracts carried out utilizing such funds.

Instructs the Special Inspector General, within ten days of being appointed, to: (1) open a 24-hour fraud, waste, and abuse hotline; (2) deploy auditors and investigators to the affected Gulf of Mexico region of the United States; (3) announce a strategic plan for oversight; (4) go to the media of that region with antifraud messages; (5) liaise with Hurricane Katrina recovery federal agencies to identify vulnerabilities; and (6) coordinate interagency oversight elements through the creation of a task force.

Requires the Special Inspector General to: (1) submit specified quarterly and interim reports summarizing the activities of the Special Inspector General and the Hurricane Katrina recovery activities of the federal government; and (2) publish such reports on the websites of the Secretaries of Homeland Security and Defense.