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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-354

======================================================================



 
                IMPROVING GOVERNMENT ACCOUNTABILITY ACT

                                _______
                                

 September 27, 2007.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Waxman, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 928]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Oversight and Government Reform, to whom was 
referred the bill (H.R. 928) to amend the Inspector General Act 
of 1978 to enhance the independence of the Inspectors General, 
to create a Council of the Inspectors General on Integrity and 
Efficiency, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     8
Background and Need for Legislation..............................     8
Legislative History..............................................    10
Section-by-Section...............................................    10
Explanation of Amendments........................................    13
Committee Consideration..........................................    13
Roll Call Votes..................................................    13
Application of Law to the Legislative Branch.....................    14
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    14
Statement of General Performance Goals and Objectives............    14
Constitutional Authority Statement...............................    14
Federal Advisory Committee Act...................................    14
Unfunded Mandates Statement......................................    14
Earmark Identification...........................................    14
Committee Estimate...............................................    15
Budget Authority and Congressional Budget Office Cost Estimate...    15
Changes in Existing Law Made by the Bill, as Reported............    18
Additional Views.................................................    32

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Improving Government 
Accountability Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Enhancing independence of Inspectors General.
Sec. 3. Direct submission of budget requests to Congress.
Sec. 4. Establishment of Council of the Inspectors General on Integrity 
and Efficiency.
Sec. 5. Pay and bonuses of Inspectors General.
Sec. 6. Miscellaneous enhancements.
Sec. 7. Program Fraud Civil Remedies Act.
Sec. 8. Application of semiannual reporting requirements with respect 
to inspection reports and evaluation reports.

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 or her term only on any of the following 
        grounds:
          ``(1) Permanent incapacity.
          ``(2) Inefficiency.
          ``(3) Neglect of duty.
          ``(4) Malfeasance.
          ``(5) Conviction of a felony or conduct involving moral 
        turpitude.''; and
          (2) in section 8G(e) by striking ``an Inspector General'' and 
        all that follows through the period at the end and inserting 
        the following: ``the head of a designated Federal entity 
        intends to remove an Inspector General from office or transfer 
        an Inspector General to another position or location within 
        such designated Federal entity, the head of such entity shall 
        communicate in writing the reasons for any such removal or 
        transfer to both Houses of Congress at least 30 days before 
        such removal or transfer.''.
  (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 at the end the following:
  ``(e)(1) The term of office of each Inspector General shall be seven 
years. An individual may serve for more than one term in such office. 
Any individual appointed and confirmed to fill a vacancy in such 
position, occurring before the expiration of the term for which his or 
her predecessor was appointed, shall be appointed and confirmed for a 
full seven-year term.
  ``(2) An individual may continue to serve as Inspector General beyond 
the expiration of the term for which the individual is appointed until 
a successor is appointed and confirmed, except that such individual may 
not continue to serve for more than 1 year after the date on which the 
term would otherwise expire under paragraph (1).''; and
          (2) in section 8G(c) by inserting ``(1)'' after ``(c)'', and 
        by adding at the end the following:
  ``(2) The term of office of each Inspector General shall be seven 
years. An individual may serve for more than one term in such office. 
Any individual appointed to fill a vacancy in such position, occurring 
before the expiration of the term for which his or her predecessor was 
appointed, shall be appointed for a full 7-year term.''.
  (c) Application.--The amendments made by this section shall apply to 
any Inspector General appointed on or after the date of the enactment 
of this Act.

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

  Section 6 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended by adding at the end the following:
  ``(f)(1) For each fiscal year, an Inspector General may transmit an 
appropriation estimate and request to the Director of the Office of 
Management and Budget and to the appropriate committees or 
subcommittees of the Congress, in addition to any appropriation 
estimate and request submitted to the head of the establishment 
concerned.
  ``(2) The President shall include in each budget of the United States 
Government submitted to the Congress--
          ``(A) a separate statement of the amount of appropriations 
        requested by each Inspector General who has submitted an 
        appropriation estimate under paragraph (1); and
          ``(B) a statement comparing each such appropriation estimate 
        and request submitted by an Inspector General and the funds 
        requested by the head of the establishment concerned.''.

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:
 ``establishment of the council of the inspectors general on integrity 
                             and efficiency
  ``Sec. 11.  (a) Establishment.--There is established as an 
independent entity within the executive branch the Inspectors General 
Council (in this section referred to as the `Council'). The Council's 
mission shall 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 are 
                established under--
                          ``(i) section 2; or
                          ``(ii) section 8G.
                  ``(B) The Inspectors General of the Central 
                Intelligence Agency and the Government Printing Office.
                  ``(C) The Controller of the Office of Federal 
                Financial Management.
                  ``(D) A senior level official of the Federal Bureau 
                of Investigation designated by the Director of the 
                Federal Bureau of Investigation.
                  ``(E) The Director of the Office of Government 
                Ethics.
                  ``(F) The Special Counsel of the Office of Special 
                Counsel.
                  ``(G) The Deputy Director of the Office of Personnel 
                Management.
                  ``(H) The Deputy Director for Management of the 
                Office of Management and Budget.
          ``(2) Chairperson and executive chairperson.--
                  ``(A) Executive chairperson.--The Deputy Director for 
                Management of the Office of Management and Budget shall 
                be the Executive Chairperson of the Council.
                  ``(B) Chairperson.--The Council shall elect one of 
                the Inspectors General referred to in paragraph (1)(A) 
                or (B) to act as Chairperson of the Council. The term 
                of office of the Chairperson shall be two years.
          ``(3) Functions of chairperson and executive chairperson.--
                  ``(A) Executive chairperson.--The Executive 
                Chairperson shall--
                          ``(i) preside over meetings of the Council;
                          ``(ii) provide to the heads of agencies and 
                        entities represented on the Council with 
                        summary reports of the activities of the 
                        Council; and
                          ``(iii) provide to the Council such 
                        information relating to the agencies and 
                        entities represented on the Council as will 
                        assist the Council in performing its functions.
                  ``(B) Chairperson.--The Chairperson shall--
                          ``(i) convene meetings of the Council--
                                  ``(I) at least six times each year;
                                  ``(II) monthly to the extent 
                                possible; and
                                  ``(III) more frequently at his or her 
                                discretion;
                          ``(ii) exercise the functions and duties of 
                        the Council under subsection (c);
                          ``(iii) appoint a Vice Chairperson to assist 
                        in carrying out the functions of the Council 
                        and act in the absence of the Chairperson, from 
                        a category of Inspectors General described in 
                        subparagraph (A)(i), (A)(ii), or (B) of 
                        subsection (b)(1), other than the category from 
                        which the Chairperson was elected;
                          ``(iv) make such payments from funds 
                        otherwise available to the Council as may be 
                        necessary to carry out the functions of the 
                        Council;
                          ``(v) select, appoint, and employ personnel 
                        as needed to carry out the functions of the 
                        Council subject to the availability of 
                        appropriations and 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;
                          ``(vi) to the extent and in such amounts as 
                        may be provided in advance by appropriations 
                        Acts, enter into contracts and other 
                        arrangements with public agencies and private 
                        persons to carry out the functions and duties 
                        of the Council;
                          ``(vii) establish, in consultation with the 
                        members of the Council, such committees as 
                        determined by the Chairperson to be necessary 
                        and appropriate for the efficient conduct of 
                        Council functions; and
                          ``(viii) prepare and transmit a report 
                        annually on behalf of the Council to the 
                        President on the activities of the Council.
  ``(c) Functions and Duties of Council.--
          ``(1) In general.--The Council shall--
                  ``(A) continually identify, review, and discuss areas 
                of weakness and vulnerability in Federal programs and 
                operations with respect to fraud, waste, and abuse;
                  ``(B) develop plans for coordinated, Government-wide 
                activities that address these problems and promote 
                economy and efficiency in Federal programs and 
                operations, including interagency and inter-entity 
                audit, investigation, inspection, and evaluation 
                programs and projects to deal efficiently and 
                effectively with those problems concerning fraud and 
                waste that exceed the capability or jurisdiction of an 
                individual agency or entity;
                  ``(C) develop policies that will aid in the 
                maintenance of a corps of well-trained and highly 
                skilled Office of Inspector General personnel;
                  ``(D) maintain an Internet Web site and other 
                electronic systems for the benefit of all Inspectors 
                General, as the Council determines are necessary or 
                desirable;
                  ``(E) maintain one or more academies as the Council 
                considers desirable for the professional training of 
                auditors, investigators, inspectors, evaluators, and 
                other personnel of the various offices of Inspector 
                General; and
                  ``(F) make such reports to the Congress as the 
                Chairperson determines are necessary or appropriate.
          ``(2) Adherence and participation by members.--Each member of 
        the Council should, to the extent permitted under law, and to 
        the extent not inconsistent with standards established by the 
        Comptroller General of the United States for audits of Federal 
        establishments, organizations, programs, activities, and 
        functions, adhere to professional standards developed by the 
        Council and participate in the plans, programs, and projects of 
        the Council.
          ``(3) Existing authorities and responsibilities.--The 
        creation and operation of the Council--
                  ``(A) shall not affect the preeminent policy-setting 
                role of the Department of Justice in law enforcement 
                and litigation;
                  ``(B) shall not affect the authority or 
                responsibilities of any Government agency or entity; 
                and
                  ``(C) shall not affect the authority or 
                responsibilities of individual members of the Council.
  ``(d) Integrity Committee.--
          ``(1) Establishment.--The Council shall have an Integrity 
        Committee, which shall receive, review, and refer for 
        investigation allegations of wrongdoing that are made against 
        Inspectors General and certain staff members of the various 
        Offices of Inspector General.
          ``(2) Membership.--The Integrity Committee shall consist of 
        the following members:
                  ``(A) The official of the Federal Bureau of 
                Investigation serving on the Council, who shall serve 
                as Chairperson of the Integrity Committee.
                  ``(B) 3 or more Inspectors General described in 
                subparagraph (A) or (B) of subsection (b)(1) appointed 
                by the Chairperson of the Council, representing both 
                establishments and designated Federal entities (as that 
                term is defined in section 8G(a)).
                  ``(C) The Special Counsel of the Office of Special 
                Counsel.
                  ``(D) The Director of the Office of Government 
                Ethics.
          ``(3) Legal advisor.--The Chief of the Public Integrity 
        Section of the Criminal Division of the Department of Justice, 
        or his designee, shall serve as a legal advisor to the 
        Integrity Committee.
          ``(4) Referral of allegations.--
                  ``(A) Requirement.--An Inspector General shall refer 
                to the Integrity Committee any allegation of wrongdoing 
                against a staff member of his or her office, if--
                          ``(i) review of the substance of the 
                        allegation cannot be assigned to an agency of 
                        the executive branch with appropriate 
                        jurisdiction over the matter; and
                          ``(ii) the Inspector General determines 
                        that--
                                  ``(I) an objective internal 
                                investigation of the allegation is not 
                                feasible; or
                                  ``(II) an internal investigation of 
                                the allegation may appear not to be 
                                objective.
                  ``(B) Staff member defined.--In this subsection the 
                term `staff member' means--
                          ``(i) any employee of an Office of Inspector 
                        General who reports directly to an Inspector 
                        General; or
                          ``(ii) who is designated by an Inspector 
                        General under subparagraph (C).
                  ``(C) Designation of staff members.--Each Inspector 
                General shall annually submit to the Chairperson of the 
                Integrity Committee a designation of positions whose 
                holders are staff members for purposes of subparagraph 
                (B).
          ``(5) Review of allegations.--The Integrity Committee shall--
                  ``(A) review all allegations of wrongdoing it 
                receives against an Inspector General, or against a 
                staff member of an Office of Inspector General; and
                  ``(B) refer to the Chairperson of the Integrity 
                Committee any allegation of wrongdoing determined by 
                the Integrity Committee to be meritorious that cannot 
                be referred to an agency of the executive branch with 
                appropriate jurisdiction over the matter.
          ``(6) Authority to investigate allegations.--
                  ``(A) Requirement.--The Chairperson of the Integrity 
                Committee shall cause a thorough and timely 
                investigation of each allegation referred under 
                paragraph (5)(B) to be conducted in accordance with 
                this paragraph.
                  ``(B) Resources.--At the request of the Chairperson 
                of the Integrity Committee, the head of each agency or 
                entity represented on the Council--
                          ``(i) may provide resources necessary to the 
                        Integrity Committee; and
                          ``(ii) may detail employees from that agency 
                        or entity to the Integrity Committee, subject 
                        to the control and direction of the 
                        Chairperson, to conduct an investigation 
                        pursuant to this subsection.
          ``(7) Procedures for investigations.--
                  ``(A) Standards applicable.--Investigations initiated 
                under this subsection shall be conducted in accordance 
                with the most current Quality Standards for 
                Investigations issued by the Council or by its 
                predecessors (the President's Council on Integrity and 
                Efficiency and the Executive Council on Integrity and 
                Efficiency).
                  ``(B) Additional policies and procedures.--The 
                Integrity Committee, in conjunction with the 
                Chairperson of the Council, shall establish additional 
                policies and procedures necessary to ensure fairness 
                and consistency in--
                          ``(i) determining whether to initiate an 
                        investigation;
                          ``(ii) conducting investigations;
                          ``(iii) reporting the results of an 
                        investigation; and
                          ``(iv) providing the person who is the 
                        subject of an investigation with an opportunity 
                        to respond to any Integrity Committee report.
                  ``(C) Report.--With respect to any investigation that 
                substantiates any allegation referred to the 
                Chairperson of the Integrity Committee under paragraph 
                (5)(B), the Chairperson of the Integrity Committee 
                shall--
                          ``(i) submit to the Executive Chairperson of 
                        the Council a report on the results of such 
                        investigation, within 180 days (to the maximum 
                        extent practicable) after the completion of the 
                        investigation; and
                          ``(ii) submit to Congress a copy of such 
                        report within 30 days after the submission of 
                        such report to the Executive Chairperson under 
                        clause (i).
          ``(8) No right or benefit.--This subsection is not intended 
        to create any right or benefit, substantive or procedural, 
        enforceable at law by a person against the United States, its 
        agencies, its officers, or any person.
  ``(e) Application.--The provisions of this section apply only to the 
Inspectors General (and their offices) listed in subsection (b)(1)(A) 
and (B).''.
  (b) Existing Executive Orders.--Executive Order 12805, dated May 11, 
1992, and Executive Order 12993, dated March 21, 1996, shall have no 
force or effect.
  (c) Conforming Amendments.--
          (1) Inspector general act of 1978.--The Inspector General Act 
        of 1978 (5 U.S.C. App.) is amended--
                  (A) 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
                  (B) in section 8G(a), in the matter preceding 
                paragraph (1), by striking ``section 11'' and inserting 
                ``section 12''.
          (2) Title 31, u.s.c.--Section 1105(a) of title 31, United 
        States Code, is amended by striking the first paragraph (33) 
        and inserting the following:
          ``(33) a separate appropriation account for appropriations 
        for the Inspectors General Council, and, included in that 
        account, a separate statement of the aggregate amount of 
        appropriations requested for each academy maintained by the 
        Inspectors General Council.''.

SEC. 5. PAY AND BONUSES OF INSPECTORS GENERAL.

  (a) Prohibition of Cash Bonus or Awards.--Section 3 of the Inspector 
General Act of 1978 (5 U.S.C. App.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end the 
following:
  ``(f) An Inspector General (as defined under section 8G(a)(6) or 
11(3)) may not receive any cash award or cash bonus, including any cash 
award under chapter 45 of title 5, United States Code.''.
  (b) Inspectors General at Level III of Executive Schedule.--
          (1) In general.--Section 3 of the Inspector General Act of 
        1978 (5 U.S.C. App.), as amended by the preceding provisions of 
        this Act, is further amended by adding at the end the 
        following:
  ``(g) The annual rate of basic pay for an Inspector General (as 
defined under section 11(3)) shall be the rate payable for level III of 
the Executive Schedule under section 5314 of title 5, United States 
Code, plus 3 percent.''.
          (2) Conforming amendment.--Section 5315 of title 5, United 
        States Code, is amended by striking the item relating to each 
        of the following positions:
                  (A) Inspector General, Department of Education.
                  (B) Inspector General, Department of Energy.
                  (C) Inspector General, Department of Health and Human 
                Services.
                  (D) Inspector General, Department of Agriculture.
                  (E) Inspector General, Department of Housing and 
                Urban Development.
                  (F) Inspector General, Department of Labor.
                  (G) Inspector General, Department of Transportation.
                  (H) Inspector General, Department of Veterans 
                Affairs.
                  (I) Inspector General, Department of Homeland 
                Security.
                  (J) Inspector General, Department of Defense.
                  (K) Inspector General, Department of State.
                  (L) Inspector General, Department of Commerce.
                  (M) Inspector General, Department of the Interior.
                  (N) Inspector General, Department of Justice.
                  (O) Inspector General, Department of the Treasury.
                  (P) Inspector General, Agency for International 
                Development.
                  (Q) Inspector General, Environmental Protection 
                Agency.
                  (R) Inspector General, Export-Import Bank.
                  (S) Inspector General, Federal Emergency Management 
                Agency.
                  (T) Inspector General, General Services 
                Administration.
                  (U) Inspector General, National Aeronautics and Space 
                Administration.
                  (V) Inspector General, Nuclear Regulatory Commission.
                  (W) Inspector General, Office of Personnel 
                Management.
                  (X) Inspector General, Railroad Retirement Board.
                  (Y) Inspector General, Small Business Administration.
                  (Z) Inspector General, Tennessee Valley Authority.
                  (AA) Inspector General, Federal Deposit Insurance 
                Corporation.
                  (BB) Inspector General, Resolution Trust Corporation.
                  (CC) Inspector General, Central Intelligence Agency.
                  (DD) Inspector General, Social Security 
                Administration.
                  (EE) Inspector General, United States Postal Service.
          (3) Savings provision.--Nothing in this subsection shall have 
        the effect of reducing the rate of pay of any individual 
        serving as an Inspector General on the effective date of this 
        subsection.
  (c) Inspectors General of Designated Federal Entities.--
Notwithstanding any other provision of law, the Inspector General of 
each designated Federal entity (as those terms are defined under 
section 8G of the Inspector General Act of 1978) shall, for pay and all 
other purposes, be classified at a grade, level, or rank designation, 
as the case may be, comparable to those of a majority of the senior 
staff members of such designated Federal entity (such as, but not 
limited to, a General Counsel, Deputy Director, or Chief of Staff) that 
report directly to the head of such designated Federal entity. The head 
of a designated Federal entity shall set the annual rate of basic pay 
for an Inspector General (as defined under such section 8G) 3 percent 
above the annual rate of basic pay for senior staff members classified 
at a comparable grade, level, or rank designation (or, if those senior 
staff members receive different rates, the annual rate of basic pay for 
a majority of those senior staff members, as determined by the head of 
the designated Federal entity concerned).

SEC. 6. MISCELLANEOUS ENHANCEMENTS.

  (a) Offices as Discrete Agencies.--Section 6(d) of the Inspector 
General Act of 1978 (5 U.S.C. App.) is amended to read as follows:
  ``(d)(1)(A) For purposes of applying the provisions of law identified 
in subparagraph (B)--
          ``(i) each Office of Inspector General shall be considered to 
        be a separate agency; and
          ``(ii) the Inspector General who is the head of an office 
        referred to in clause (i) shall, with respect to such office, 
        have the functions, powers, and duties of an agency head or 
        appointing authority under such provisions.
  ``(B) This paragraph applies with respect to the following provisions 
of title 5, United States Code:
          ``(i) Subchapter II of chapter 35.
          ``(ii) Sections 8335(b), 8336, 8414, and 8425(b).
          ``(iii) All provisions relating to the Senior Executive 
        Service (as determined by the Office of Personnel Management), 
        subject to paragraph (2).
  ``(2) For purposes of applying section 4507(b) of title 5, United 
States Code, paragraph (1)(A)(ii) shall be applied by substituting `the 
Council of the Inspectors General on Integrity and Efficiency 
(established by section 11 of the Inspector General Act) shall' for 
`the Inspector General who is the head of an office referred to in 
clause (i) shall, with respect to such office,'.''.
  (b) Subpoena Power.--Section 6(a)(4) of the Inspector General Act of 
1978 (5 U.S.C. App.), is amended--
          (1) by inserting ``in any medium (including electronically 
        stored information, as well as any tangible thing)'' after 
        ``other data''; and
          (2) by striking ``subpena'' and inserting ``subpoena''.
  (c) Law Enforcement Authority for Designated Federal Entities.--
Section 6(e) of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
          (1) in paragraph (1) by striking ``appointed under section 
        3''; and
          (2) by adding at the end the following:
  ``(9) In this subsection the term `Inspector General' means an 
Inspector General appointed under section 3 or an Inspector General 
appointed under section 8G.''.
  (d) Authority of Treasury Inspector General for Tax Administration to 
Protect Internal Revenue Service Employees.--Section 8D(k)(1)(C) of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking 
``and the providing of physical security''.
  (e) Amendment Relating to Authority of Comptroller General to 
Administer Oaths.--Section 711 of title 31, United States Code, is 
amended in paragraph (4) by striking ``when auditing and settling 
accounts'' and inserting ``upon the specific approval only of the 
Comptroller General or the Deputy Comptroller General''.
  (f) Amendments Relating to Comptroller General Reports.--
          (1) Section 719(b)(1) of title 31, United States Code, is 
        amended--
                  (A) by striking ``and'' at the end of subparagraph 
                (B);
                  (B) by striking the period and inserting ``; and'' at 
                the end of subparagraph (C); and
                  (C) by adding at the end the following new 
                subparagraph:
          ``(D) for Federal agencies subject to sections 901 to 903 of 
        this title and other agencies designated by the Comptroller 
        General, an assessment of their overall degree of cooperation 
        in making personnel available for interview, providing written 
        answers to questions, submitting to an oath authorized by the 
        Comptroller General under section 711 of this title, granting 
        access to records, providing timely comments to draft reports, 
        adopting recommendations in reports, and responding to such 
        other matters as the Comptroller General considers 
        appropriate.''.
          (2) Section 719(c) of such title is amended--
                  (A) by striking ``and'' at the end of paragraph (2);
                  (B) by striking the period and inserting ``; and'' at 
                the end of paragraph (3); and
                  (C) by adding at the end the following new paragraph:
          ``(4) as soon as practicable when an agency or other entity 
        does not, within a reasonable period of time after a request by 
        the Comptroller General, make personnel available for 
        interview, provide written answers to questions, or submit to 
        an oath authorized by the Comptroller General under section 711 
        of this title.''.

SEC. 7. PROGRAM FRAUD CIVIL REMEDIES ACT.

  Section 3801(a)(1) of title 31, United States Code, is amended by 
striking ``and'' after the semicolon at the end of subparagraph (C), by 
adding ``and'' after the semicolon at the end of subparagraph (D), and 
by adding at the end the following:
                  ``(E) a designated Federal entity (as such term is 
                defined under section 8G(a)(2) of the Inspector General 
                Act of 1978).''.

SEC. 8. APPLICATION OF SEMIANNUAL REPORTING REQUIREMENTS WITH RESPECT 
                    TO INSPECTION REPORTS AND EVALUATION REPORTS.

  Section 5 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
          (1) in subsection (a)(6)--
                  (A) by inserting ``, inspection report, and 
                evaluation report'' after ``audit report''; and
                  (B) by striking ``audit'' the second place it 
                appears;
          (2) in each of subsections (a)(8), (a)(9), (b)(2), and 
        (b)(3)--
                  (A) by inserting ``, inspection reports, and 
                evaluation reports'' after ``audit reports'' the first 
                place it appears; and
                  (B) by striking ``audit'' the second place it 
                appears; and
          (3) in subsection (a)(10) by inserting ``, inspection report, 
        and evaluation report'' after ``audit report''.

                          Purpose and Summary

    H.R. 928, the Improving Government Accountability Act, was 
introduced by Rep. Cooper on February 8, 2007. H.R. 928 updates 
the Inspector General Act of 1978 to promote independence and 
accountability for Inspectors General in executive branch 
departments and agencies.
    The bill includes provisions for (1) a defined term of 
office for the Inspectors General and conditions for removal, 
(2) Inspectors General to submit their budgets directly to the 
Office of Management and Budget (OMB) and Congress, (3) the 
statutory establishment of a combined President's Council on 
Integrity and Efficiency and Executive Council on Integrity and 
Efficiency, (4) pay reform for Inspectors General, (5) changes 
in Inspector General investigative and law enforcement 
authorities, (6) the application of semiannual reporting 
requirements with respect to inspection reports and evaluation 
reports, and (7) enhanced authority for the Government 
Accountability Office (GAO).

                  Background and Need for Legislation

    The Inspector General Act of 1978 (IG Act) created 
independent offices in executive departments and agencies 
headed by Inspectors General. Inspectors General serve as the 
principal watchdogs of the nation's major federal agencies and 
are responsible for conducting and supervising audits and 
investigations in an effort to prevent and detect fraud and 
abuse in their agencies' programs and operations.
    Investigations by Inspectors General have resulted in the 
recovery of billions of dollars from companies and individuals 
who defrauded the federal government. These investigations have 
led to thousands of criminal prosecutions, debarments, 
exclusions, and suspensions. In 2006 alone, audits by Inspector 
General offices resulted in $9.9 billion in potential savings 
from audit recommendations and $6.8 billion in investigative 
recoveries.
    The Inspectors General established by the IG Act are either 
appointed by the President with Senate confirmation 
(presidential IGs) or appointed by their agency heads in 
designated federal entities (DFE IGs). There are currently 58 
Inspector General offices established under the IG Act with 29 
presidential IGs and 29 DFE IGs. The presidential IGs are 
members of the President's Council on Integrity and Efficiency 
(PCIE) and the DFE IGs are part of the Executive Council on 
Integrity and Efficiency (ECIE). Both councils are chaired by 
the Deputy Director for Management in the Office of Management 
and Budget, and were established by Executive Order to 
coordinate IG activities across government.
    By investigating and reporting waste, fraud, and abuse to 
both agency leaders and to the Congress, Inspectors General 
play a critical role in maintaining checks and balances in the 
federal government. To effectively carry out their mission, 
Inspectors General must be independent and objective, which 
requires that they be insulated from improper management and 
political pressure. To preserve the credibility of the office, 
Inspectors General must also perform their duties with 
integrity and apply the same standards of conduct and 
accountability to themselves as they apply to the agencies that 
they audit and investigate.
    Interference by agency management, the absence of input or 
control by Inspectors General into their office budgets, and 
campaigns by management to remove Inspectors General who are 
aggressive in their investigations all may jeopardize the 
independence of the Inspector General. At the same time, a lack 
of consistent and credible mechanisms for investigating and 
resolving allegations of misconduct by Inspectors General may 
threaten accountability and credibility.
    Recent incidents demonstrating issues with independence and 
accountability include the following:
     Department of State Inspector General Howard 
Krongard allegedly interfered with numerous ongoing 
investigations to protect the State Department and White House 
from political embarrassment. According to current and former 
employees of the Office of Inspector General, Mr. Krongard's 
strong affinity with State Department leadership, support for 
the current administration, and partisan political ties have 
led him to halt investigations, censor reports, and refuse to 
cooperate with law enforcement agencies.
     NASA Inspector General Robert Cobb allegedly 
suppressed investigations and penalized his own investigators 
for pursuing allegations of theft, safety violations, and other 
wrongdoing. After a six-month investigation, the Integrity 
Committee the President's Council on Integrity and Efficiency 
determined that Mr. Cobb had abused his authority and created a 
hostile work environment, and had not maintained an appearance 
of independence from NASA officials. All members of the 
committee believed that disciplinary action, up to and 
including removal, could be appropriate. Mr. Cobb rejected the 
findings of the Integrity Committee and calls for his 
resignation from leaders of NASA's congressional oversight 
committees. He remains in office.
     Department of Commerce Inspector General Johnnie 
Frazier was under investigation for taking trips with no 
apparent official purpose at government expense, retaliating 
against employees who objected and refused to sign the travel 
vouchers, and destroying emails after he was informed of an 
investigation into his travel. A report from the Office of 
Special Counsel recently concluded that he illegally retaliated 
against employees who challenged his conduct by demoting them. 
Mr Frazier retired effective June 29, 2007.
     Former Smithsonian Institution Inspector General 
Debra Ritt stated that former Smithsonian Secretary Lawrence M. 
Small tried to pressure her to drop an audit of high-ranking 
officials and their business expenses. Ms. Ritt moved ahead 
with the audit, which found excessive spending on travel and 
other expenses by top Smithsonian officials and led to Small's 
resignation. However, Ms. Ritt resigned as Smithsonian 
Inspector General shortly afterward, in response to cuts in the 
Inspector General office budget.
     Legal Services Corporation (LSC) Inspector General 
Kirt West was considered for dismissal by the LSC board after 
he issued audit reports questioning spending on travel and 
expenses for LSC board meetings. The LSC board did not proceed 
with removal after intervention from the House Judiciary 
Committee.
    Other examples of challenges to independence and 
accountability have occurred at the General Services 
Administration, Special Inspector General for Iraq 
Reconstruction, Environmental Protection Agency, Department of 
Defense, and Department of Homeland Security, U.S. Postal 
Service, and Department of Health and Human Services.

                          Legislative History

    H.R. 928, legislation to enhance independence and 
accountability for Inspectors General, was introduced on 
February 8, 2007, and referred to the Committee on Oversight 
and Government Reform.
    The Subcommittee on Government Management, Organization, 
and Procurement held a hearing on H.R. 928 on June 20, 2007. 
The witnesses were Clay Johnson, Deputy Director for 
Management, Office of Management and Budget, Executive Office 
of the President and Chair, President's Council on Integrity 
and Efficiency and Executive Council on Integrity and 
Efficiency; Phyllis K. Fong, Inspector General, U.S. Department 
of Agriculture and Chair, Legislation Committee, President's 
Council on Integrity and Efficiency; Christine C. Boesz, 
Inspector General, National Science Foundation and Vice-Chair, 
Executive Council on Integrity and Efficiency; Eleanor J. Hill, 
former Inspector General, U.S. Department of Defense; Kenneth 
M. Mead, former Inspector General, U.S. Department of 
Transportation; Nikki L. Tinsley, former Inspector General, 
Environmental Protection Agency; Jeffrey C. Steinhoff, Managing 
Director, Financial Management and Assurance, Government 
Accountability Office; Vanessa Burrows, Legislative Attorney, 
Congressional Research Service; and Fred M. Kaiser, Specialist 
in American National Government, Congressional Research 
Service.
    The Committee held a markup to consider H.R. 928 on August 
2, 2007, and ordered the bill to be reported, as amended, by 
voice vote.

                           Section-by-Section


Section 1: Short title

    The short title of the bill is the Improving Government 
Accountability Act

Section 2: Enhancing independence of Inspectors General

    This section enhances independence of Inspectors General by 
providing that presidentially appointed Inspectors General may 
be removed only for cause, specifically permanent incapacity, 
inefficiency, neglect of duty, malfeasance, conviction of a 
felony, or conduct involving moral turpitude. Inspectors 
General of Designated Federal Entities, i.e. those that are 
appointed by agency heads, may not be removed or transferred 
unless both Houses of Congress are provided 30 days advance 
notice of the reasons for removal or transfer.
    The section sets fixed terms of seven years for Inspectors 
General, and permits reappointment. Individuals appointed and 
confirmed to fill vacancies will serve full 7 year terms.
    The section applies to Inspectors General appointed on or 
after the date of enactment of this bill.

Section 3: Direct submission of budget requests to Congress

    This section gives Inspectors General authority to submit 
budget requests to OMB and to Congress, in addition to requests 
submitted to the head of their related agency. The President's 
budget shall note these separate requests, as well as the 
difference between budget requests submitted by Inspectors 
General and federal agencies.

Section 4: Establishment of Inspectors General Council

    This section establishes in statute an Inspectors General 
Council similar to the President's Council on Integrity and 
Efficiency and Executive Council on Integrity and Efficiency 
established by Executive Orders 12805 and 12993 and supersedes 
those Executive Orders.
    The Deputy Director of the Office of Management and Budget 
shall be the Executive Chairperson of the Council.
    A Chairperson shall be elected to a two year term from 
among the Inspectors General who comprise the Council. The 
Chairperson will convene meetings, manage Council personnel and 
other business, establish Committees within the Council, and 
write an annual report to the President. The Chairperson shall 
appoint a Vice Chairman.
    The Council's duties shall be to identify, review, and 
formulate plans to promote efficiency and address waste, fraud, 
and abuse; to maintain academies for the purpose of training 
personnel of the offices of Inspectors General; to maintain a 
website; to prepare reports for Congress at the Chairman's 
discretion; and to develop professional standards that are 
consistent with the Comptroller General's audit standards by 
which Council members shall adhere.
    The Council shall establish an Integrity Committee, chaired 
by the Council's FBI representative. This Integrity Committee 
(which already exists within the present PCIE/ECIE structure) 
shall investigate any allegations of wrongdoing made against 
Inspectors General or their senior staff members and report 
substantiated allegations to the executive branch. Reports of 
Integrity Committee investigations must be submitted to both 
the Executive Chairperson of the Council and to Congress.

Section 5: Pay and bonuses of Inspectors General

    This section prohibits Inspectors General from receiving 
cash awards or cash bonuses. The section reclassifies 
Inspectors General at Executive Schedule Level IV to a level 
equivalent to Executive Schedule Level III plus 3% and requires 
that Inspectors General of Designated Federal Entities be paid 
at a level comparable to other senior staff members of the 
agency plus 3%. This section will enhance independence and 
stature of Inspector General by increasing their fixed 
compensation and eliminating discretionary compensation that 
could create a conflict of interest.

Section 6: Miscellaneous enhancements

    Section 6(a) provides that Inspectors General, rather than 
their associated agency heads, will be considered the ``agency 
head'' with regard to Senior Executive Service, Voluntary 
Separation Authority, and law enforcement officer retirement 
exemptions. The Inspectors General Council, rather than 
individual agencies, will be the nominating body for 
Presidential Rank Awards for Inspector General personnel.
    Section 6(b) extends Inspector General subpoena power to 
include documents in any medium (including electronically 
stored information, as well as any tangible thing). This 
provision brings the subpoena power already enjoyed by 
Inspectors General up to date with electronic communications. 
The ``tangible things'' power enables Inspector General 
investigators to subpoena hard drives and computers.
    Section 6(c) authorizes all Inspectors General to apply to 
the Justice Department to fully deputize agents to make 
arrests, obtain and execute search warrants, and carry 
firearms. Presidentially appointed Inspectors General have such 
authority under existing law, and this section expands the 
authority to Inspectors General of Designated Federal Entities.
    Section 6(d) authorizes the Treasury Inspector General for 
Tax Administration to protect Internal Revenue Service 
employees. This provision will permit TIGTA agents to provide 
armed escorts to IRS employees during taxpayer contacts that 
are perceived to be high risk, and to engage in other essential 
activities to protect the IRS against external attempts to 
corrupt or threaten its employees. This section incorporates 
the language of H.R. 2527, the Enhanced Protection of the 
Internal Revenue Service and Its Employees Act of 2007, a bill 
introduced by Rep. Maloney.
    Section 6(e) expands the authority of the Comptroller 
General to take sworn testimony, and requires the Comptroller 
General to assess the cooperation of federal agencies with 
Government Accountability Office (GAO) investigations and 
promptly report to Congress if agencies refuse to provide 
information to GAO.

Section 7: Program Fraud Civil Remedies Act

    This section would authorize Inspectors General of 
Designated Federal Entities to pursue false claims and recoup 
losses resulting from fraud. Under existing law, presidentially 
appointed Inspectors General, executive departments, military 
departments, and government ``establishments'' which are not 
executive departments have the authority to address and 
prosecute false claims under $150,000 under authority of the 
Program Fraud Civil Remedies Act. This section extends that 
authority to Inspectors General of Designated Federal Entities.

Section 8: Application of semiannual reporting requirements with 
        respect to inspection reports and evaluation reports

    This section requires that Inspectors General include not 
only audit reports, but other inspection reports and evaluation 
reports in their semiannual reports to Congress.

                       Explanation of Amendments

    The following amendments were adopted in Committee:
    Mr. Cooper offered an amendment in the nature of a 
substitute. The amendment changed the bill as introduced to (1) 
specify that the term limits for Inspectors General apply 
prospectively, (2) require that reports of investigation from 
the Integrity Committee be submitted to Congress within 30 days 
of their submission to the Executive Chairperson of the 
Inspectors General Council, (3) prohibit Inspectors General 
from receiving cash awards or cash bonuses, and (4) reclassify 
Inspectors General at Executive Schedule Level IV to Executive 
Schedule Level III and require that Inspectors General of 
designated federal entities be classified for pay purposes at a 
level comparable to other senior staff members of the agency. 
The Cooper amendment incorporated H.R. 2527, the Enhanced 
Protection of the Internal Revenue Service and Its Employees 
Act of 2007, a bill introduced by Rep. Maloney to streamline 
authorities of the Treasury Inspector General for Tax 
Administration. The Cooper amendment also expanded the 
authority of the Comptroller General to take sworn testimony, 
and required the Comptroller General to assess the cooperation 
of federal agencies with Government Accountability Office (GAO) 
investigations and promptly report to Congress if agencies 
refuse to provide information to GAO.
    Rep. Tom Davis offered an amendment to the Cooper 
amendment, passed by voice vote, striking a provision that 
Inspectors General of Designated Federal Entities may be 
removed only for specified cause, and replacing it with a 
provision that an Inspector General of a Designated Federal 
Entity may be removed or transferred only after the head of the 
federal agency transmits in writing the reasons for such 
removal and transfer to both Houses of Congress 30 days prior 
to such removal or transfer.
    The Cooper amendment in the nature of a substitute, as 
amended by the Davis amendment, passed by voice vote.

                        Committee Consideration

    On Thursday, August 2, 2007, the Committee met in open 
session and favorably ordered H.R. 928 to be reported to the 
House by a voice vote.

                            Roll Call Votes

    No rollcall votes were held.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. The 
bill does not relate to employment or access to public services 
and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report, including 
examples of Inspector General independence and accountability 
being compromised that have been documented through 
investigations and hearings of this Committee and other 
Committees of Congress.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report, including identifying waste and fraud in 
federal programs by maintaining independent and credible 
Inspectors General in federal departments and agencies.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 928. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants the Congress the power 
to enact this law.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                      Unfunded Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement on 
whether the provisions of the report include unfunded mandates. 
In compliance with this requirement the Committee has received 
a letter from the Congressional Budget Office included herein.

                         Earmark Identification

    H.R. 928 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 928. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 928 from the Director of 
the Congressional Budget Office:

                                                September 27, 2007.
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 928, the Improving 
Government Accountability Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 928--Improving Government Accountability Act

    Summary: H.R. 928 would amend the Inspector General Act of 
1978. The legislation would define the term of office and 
conditions for removal of Inspectors General (IGs); require IGs 
to submit their budgets directly to the Office of Management 
and Budget (OMB) and the Congress; establish an IG Council; 
provide IGs with some additional investigative, law 
enforcement, and personnel authorities; and require IGs to 
prepare additional reports.
    CBO estimates that implementing H.R 928 would cost about $9 
million in 2008 and $73 million over the 2008-2012 period, 
assuming the availability of the appropriated funds. The 
legislation could affect direct spending and revenues, but CBO 
estimates that any such effects would be negligible.
    H.R. 928 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budget of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 928 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government) and all other budget functions where 
federal agencies employ Inspectors General.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Inspector General Authorities:
    Estimated Authorization Level..................................        5       10       10       10       10
    Estimated Outlays..............................................        5        9       10       10       10
Council of Inspectors General on Integrity and Efficiency:
    Estimated Authorization Level..................................        5        5        5        5        5
    Estimated Outlays..............................................        4        5        5        5        5
Pay Provisions:
    Estimated Authorization Level..................................        1        1        1        1        1
    Estimated Outlays..............................................        *        1        1        1        1
    Total Changes:
        Estimated Authorization Level..............................       11       16       16       16       16
        Estimated Outlays..........................................        9       16       16       16      16
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted early in fiscal year 2008, that the 
necessary funds will be provided for each year, and that 
spending will follow historical patterns for similar 
activities.
    The Inspector General Act of 1978 created independent 
offices headed by Inspectors General responsible for conducting 
and supervising audits and investigations; promoting economy, 
efficiency, and effectiveness; and preventing and detecting 
fraud and abuse in government programs and operations. There 
are two types of IGs. There are 30 IGs who are appointed by the 
President with Senate confirmation, (known as Presidential IGs) 
half of whom serve the 15 cabinet departments. Another 34 IGs 
serve as designated federal entity (DFE) IGs at smaller 
agencies and are appointed (and may be removed) by the head of 
the agency. The Government Accountability Office (GAO) reported 
that IGs had appropriated budgets of almost $2 billion in 2006 
and employ over 12,000 employees.

Spending subject to appropriation

    Inspector General Authorities. Under current law, many IG 
activities come under the purview of the agency they oversee. 
The budgets for IG activities are included as part of the 
agency's overall budget request to the Congress, with funding 
determined by the Congress through the appropriations process. 
Personnel matters, including hiring and retirement issues, are 
handled by each IG's agency. IGs at some of the larger agencies 
have independent law enforcement authorities, such as carrying 
firearms and executing warrants for arrests; those at smaller 
agencies are usually deputized by the U.S. Marshall Service to 
perform such functions. In addition, IGs issue semi-annual 
reports on their activities and operations.
    H.R. 928 would amend existing law to make all IG offices 
separate agencies with the same powers and duties as the agency 
the agency monitor and investigate. IGs would be authorized to 
directly submit their budget requests to OMB and the Congress. 
In addition, IGs would be given additional personnel 
authorities, including more flexible hiring authorities. H.R. 
928 would provide additional law enforcement authorities to IGs 
appointed by agency heads, including the ability to carry 
firearms and execute warrants. The legislation also would 
require program evaluations and inspections to be added to 
their reports to Congress.
    Based on information from IG offices and the cost of 
similar authorities, CBO estimates that these provisions would 
cost $5 million in 2008 and about $45 million over the 2008-
2012 period, mostly for additional personnel costs. CBO expects 
that few IG offices would become wholly independent of the 
administrative support of their agencies, but most would 
require additional personnel, especially the smaller IG 
offices. This estimate includes the cost of additional staff 
and training for budget and human resources functions, as well 
as additional law enforcement training.
    Council of Inspectors General on Integrity and Efficiency. 
Currently, there are two advisory councils for IG functions: 
Inspectors General appointed by the President are members of 
the President's Council on Integrity and Efficiency (PCIE) 
while DFE IGs are members of the Executive Council on Integrity 
and Efficiency (ECIE). The two councils were created by 
Presidential Executive Orders and usually meet separately. They 
receive no specific appropriation, but are funded by the 
various IGs on an ad hoc basis.
    H.R. 928 would establish a single council with duties and 
functions similar to the PCIE and ECIE. It would change the new 
council with identifying, reviewing, and discussing areas of 
weakness and fraud in federal operations and programs; 
developing plans for coordinated governmentwide activities that 
address these problems; developing policies and professional 
programs for IG personnel; and investigating allegations 
against IGs. Based on information from PCIE and ECIE regarding 
their current operations, CBO estimates that implementing this 
provision would cost an additional $5 million in 2008 and $25 
million over the 2008-2012 period, primarily for the cost of 
professional training for IGs.
    Pay Provisions. Section 5 would amend the Inspector General 
Act of 1978 to raise the annual salary level of 31 IGs 
specified in the legislation from Level IV to Level III of the 
executive schedule plus an additional 3 percent. The bill would 
set the level of pay for the other IGs equal to the rate of 
basic pay for senior staff members classified at a comparable 
rank plus 3 percent. In addition, the legislation would 
prohibit payment of cash awards and bonuses to IGs.
    Based on data and information provided by the Office of 
Personnel Management, CBO estimates that increasing the pay for 
IGs would cost about $500,000 annually and $4 million over the 
2008-2012 period, subject to the availability of appropriated 
funds. Most of that cost would result from increasing 
compensation of the 31 IGs specified in the bill who will have 
their rate of basic pay set at Level III of the executive 
schedule plus 3 percent. CBO expects the cost of increasing 
basic pay for the other IGs would be small because the increase 
in basic pay would largely be offset by the loss of bonus 
payments.

Direct spending and revenues

    A few IGs are employed by offices that have direct spending 
authority to pay salaries and expenses. Amendments made by H.R. 
928 would have an insignificant impact on spending by those 
offices. Enacting H.R. 928 could affect federal revenues from 
civil penalties as a result of allowing IGs appointed by their 
agency heads to investigate and report false claims and recoup 
losses resulting from fraud under $150,000. Collections of 
civil penalties are recorded in the budget as revenues and 
deposited in the general fund of the Treasury. Based on 
information from Presidential IGs, CBO estimates that any 
change in revenues that would result from enacting the bill 
would not be significant.
    Intergovernmental and private-sector impact: H.R. 928 
contains no intergovernmental or private-sector mandates as 
defined in the UMRA and would not affect the budget of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Inspectors General: 
Matthew Pickford; Pay and Benefits: Barry Blom; Impact on 
state, local, and tribal governments: Elizabeth Cove; Impact on 
the private-sector: Justin Hall.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     -INSPECTOR GENERAL ACT OF 1978


-

           *       *       *       *       *       *       *
                         PURPOSE; ESTABLISHMENT

  Sec. 2.  In order to create independent and objective units--
          (1) to conduct and supervise audits and 
        investigations relating to the programs and operations 
        of the establishments listed in [section 11(2)] section 
        12(2);

           *       *       *       *       *       *       *


                  APPOINTMENT AND REMOVAL OF OFFICERS

  Sec. 3. (a) * * *
  (b) An Inspector General may be removed from office by the 
President. The President shall communicate the reasons for any 
such removal to both Houses of Congress. An Inspector General 
may be removed from office prior to the expiration of his or 
her term only on any of the following grounds:
          (1) Permanent incapacity.
          (2) Inefficiency.
          (3) Neglect of duty.
          (4) Malfeasance.
          (5) Conviction of a felony or conduct involving moral 
        turpitude.

           *       *       *       *       *       *       *

  (e)(1) The term of office of each Inspector General shall be 
seven years. An individual may serve for more than one term in 
such office. Any individual appointed and confirmed to fill a 
vacancy in such position, occurring before the expiration of 
the term for which his or her predecessor was appointed, shall 
be appointed and confirmed for a full seven-year term.
  (2) An individual may continue to serve as Inspector General 
beyond the expiration of the term for which the individual is 
appointed until a successor is appointed and confirmed, except 
that such individual may not continue to serve for more than 1 
year after the date on which the term would otherwise expire 
under paragraph (1).
  (f) An Inspector General (as defined under section 8G(a)(6) 
or 11(3)) may not receive any cash award or cash bonus, 
including any cash award under chapter 45 of title 5, United 
States Code.
  (g) The annual rate of basic pay for an Inspector General (as 
defined under section 11(3)) shall be the rate payable for 
level III of the Executive Schedule under section 5314 of title 
5, United States Code, plus 3 percent.

                      DUTIES AND RESPONSIBILITIES

  Sec. 4. (a) * * *
  (b)(1)  * * *
  (2) For purposes of determining compliance with paragraph 
(1)(A) with respect to whether internal quality controls are in 
place and operating and whether established audit standards, 
policies, and procedures are being followed by Offices of 
Inspector General of establishments defined under [section 
11(2)] section 12(2), Offices of Inspector General of 
designated Federal entities defined under section 8F(a)(2), and 
any audit office established within a Federal entity defined 
under section 8F(a)(1), reviews shall be performed exclusively 
by an audit entity in the Federal Government, including the 
General Accounting Office or the Office of Inspector General of 
each establishment defined under [section 11(2)] section 12(2), 
or the Office of Inspector General of each designated Federal 
entity defined under section 8F(a)(2).

           *       *       *       *       *       *       *


                                REPORTS

  Sec. 5. (a) Each Inspector General shall, not later than 
April 30 and October 31 of each year, prepare semiannual 
reports summarizing the activities of the Office during the 
immediately preceding six-month periods ending March 31 and 
September 30. Such reports shall include, but need not be 
limited to--
  (1) * * *

           *       *       *       *       *       *       *

  (6) a listing, subdivided according to subject matter, of 
each audit report, inspection report, and evaluation report 
issued by the Office during the reporting period and for each 
[audit] report, where applicable, the total dollar value of 
questioned costs (including a separate category for the dollar 
value of unsupported costs) and the dollar value of 
recommendations that funds be put to better use;

           *       *       *       *       *       *       *

  (8) statistical tables showing the total number of audit 
reports, inspection reports, and evaluation reports and the 
total dollar value of questioned costs (including a separate 
category for the dollar value of unsupported costs), for 
[audit] reports--
  (A)  * * *

           *       *       *       *       *       *       *

  (9) statistical tables showing the total number of audit 
reports, inspection reports, and evaluation reports and the 
dollar value of recommendations that funds be put to better use 
by management, for [audit] reports--
  (A) * * *

           *       *       *       *       *       *       *

  (10) a summary of each audit report, inspection report, and 
evaluation report issued before the commencement of the 
reporting period for which no management decision has been made 
by the end of the reporting period (including the date and 
title of each such report), an explanation of the reasons such 
management decision has not been made, and a statement 
concerning the desired timetable for achieving a management 
decision on each such report;

           *       *       *       *       *       *       *

  (b) Semiannual reports of each Inspector General shall be 
furnished to the head of the establishment involved not later 
than April 30 and October 31 of each year and shall be 
transmitted by such head to the appropriate committees or 
subcommittees of the Congress within thirty days after receipt 
of the report, together with a report by the head of the 
establishment containing--
          (1) any comments such head determines appropriate;
          (2) statistical tables showing the total number of 
        audit reports, inspection reports, and evaluation 
        reports and the dollar value of disallowed costs, for 
        [audit] reports--
                  (A)  * * *

           *       *       *       *       *       *       *

          (3) statistical tables showing the total number of 
        audit reports, inspection reports, and evaluation 
        reports and the dollar value of recommendations that 
        funds be put to better use by management agreed to in a 
        management decision, for [audit] reports--
                  (A)  * * *

           *       *       *       *       *       *       *


                  AUTHORITY; ADMINISTRATION PROVISIONS

  Sec. 6. (a) In addition to the authority otherwise provided 
by this Act, each Inspector General, in carrying out the 
provisions of this Act, is authorized--
          (1) * * *

           *       *       *       *       *       *       *

          (4) to require by [subpena] subpoena the production 
        of all information, documents, reports, answers, 
        records, accounts, papers, and other data in any medium 
        (including electronically stored information, as well 
        as any tangible thing) and documentary evidence 
        necessary in the performance of the functions assigned 
        by this Act, which subpena, in the case of contumacy or 
        refusal to obey, shall be enforceable by order of any 
        appropriate United States district court: Provided, 
        That procedures other than subpenas shall be used by 
        the Inspector General to obtain documents and 
        information from Federal agencies;

           *       *       *       *       *       *       *

  [(d) For purposes of the provisions of title 5, United States 
Code, governing the Senior Executive Service, any reference in 
such provisions to the ``appointing authority'' for a member of 
the Senior Executive Service or for a Senior Executive Service 
position shall, if such member or position is or would be 
within the Office of an Inspector General, be deemed to be a 
reference to such Inspector General.]
  (d)(1)(A) For purposes of applying the provisions of law 
identified in subparagraph (B)
          (i) each Office of Inspector General shall be 
        considered to be a separate agency; and
          (ii) the Inspector General who is the head of an 
        office referred to in clause (i) shall, with respect to 
        such office, have the functions, powers, and duties of 
        an agency head or appointing authority under such 
        provisions.
  (B) This paragraph applies with respect to the following 
provisions of title 5, United States Code:
          (i) Subchapter II of chapter 35.
          (ii) Sections 8335(b), 8336, 8414, and 8425(b).
          (iii) All provisions relating to the Senior Executive 
        Service (as determined by the Office of Personnel 
        Management), subject to paragraph (2).
  (2) For purposes of applying section 4507(b) of title 5, 
United States Code, paragraph (1)(A)(ii) shall be applied by 
substituting ``the Council of the Inspectors General on 
Integrity and Efficiency (established by section 11 of the 
Inspector General Act) shall'' for ``the Inspector General who 
is the head of an office referred to in clause (i) shall, with 
respect to such office,''.
  (e)(1) In addition to the authority otherwise provided by 
this Act, each Inspector General [appointed under section 3], 
any Assistant Inspector General for Investigations under such 
an Inspector General, and any special agent supervised by such 
an Assistant Inspector General may be authorized by the 
Attorney General to--
          (A)  * * *

           *       *       *       *       *       *       *

  (9) In this subsection the term ``Inspector General'' means 
an Inspector General appointed under section 3 or an Inspector 
General appointed under section 8G.
  (f)(1) For each fiscal year, an Inspector General may 
transmit an appropriation estimate and request to the Director 
of the Office of Management and Budget and to the appropriate 
committees or subcommittees of the Congress, in addition to any 
appropriation estimate and request submitted to the head of the 
establishment concerned.
  (2) The President shall include in each budget of the United 
States Government submitted to the Congress--
          (A) a separate statement of the amount of 
        appropriations requested by each Inspector General who 
        has submitted an appropriation estimate under paragraph 
        (1); and
          (B) a statement comparing each such appropriation 
        estimate and request submitted by an Inspector General 
        and the funds requested by the head of the 
        establishment concerned.

           *       *       *       *       *       *       *


      SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF THE TREASURY

  Sec. 8D. (a) * * *

           *       *       *       *       *       *       *

  (k)(1) In addition to the duties and responsibilities 
exercised by an Inspector General of an establishment, the 
Treasury Inspector General for Tax Administration--
          (A) * * *

           *       *       *       *       *       *       *

          (C) shall be responsible for protecting the Internal 
        Revenue Service against external attempts to corrupt or 
        threaten employees of the Internal Revenue Service, but 
        shall not be responsible for the conducting of 
        background checks [and the providing of physical 
        security]; and

           *       *       *       *       *       *       *


   REQUIREMENTS FOR FEDERAL ENTITIES AND DESIGNATED FEDERAL ENTITIES

  Sec. 8G. (a) Notwithstanding [section 11] section 12 of this 
Act, as used in this section--
          (1) the term ``Federal entity'' means any Government 
        corporation (within the meaning of section 103(1) of 
        title 5, United States Code), any Government controlled 
        corporation (within the meaning of section 103(2) of 
        such title), or any other entity in the Executive 
        branch of the Government, or any independent regulatory 
        agency, but does not include--
                  (A) an establishment (as defined under 
                [section 11(2)] section 12(2) of this Act) or 
                part of an establishment;

           *       *       *       *       *       *       *

  (c)(1) Except as provided under subsection (f) of this 
section, the Inspector General shall be appointed by the head 
of the designated Federal entity in accordance with the 
applicable laws and regulations governing appointments within 
the designated Federal entity.
  (2) The term of office of each Inspector General shall be 
seven years. An individual may serve for more than one term in 
such office. Any individual appointed to fill a vacancy in such 
position, occurring before the expiration of the term for which 
his or her predecessor was appointed, shall be appointed for a 
full 7-year term.

           *       *       *       *       *       *       *

  (e) If [an Inspector General is removed from office or is 
transferred to another position or location within a designated 
Federal entity, the head of the designated Federal entity shall 
promptly communicate in writing the reasons for any such 
removal or transfer to both Houses of the Congress.] the head 
of a designated Federal entity intends to remove an Inspector 
General from office or transfer an Inspector General to another 
position or location within such designated Federal entity, the 
head of such entity shall communicate in writing the reasons 
for any such removal or transfer to both Houses of Congress at 
least 30 days before such removal or transfer.

           *       *       *       *       *       *       *


ESTABLISHMENT OF THE COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY AND 
                               EFFICIENCY

  Sec. 11. (a) Establishment.--There is established as an 
independent entity within the executive branch the Inspectors 
General Council (in this section referred to as the 
``Council''). The Council's mission shall 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 are 
                established under--
                          (i) section 2; or
                          (ii) section 8G.
                  (B) The Inspectors General of the Central 
                Intelligence Agency and the Government Printing 
                Office.
                  (C) The Controller of the Office of Federal 
                Financial Management.
                  (D) A senior level official of the Federal 
                Bureau of Investigation designated by the 
                Director of the Federal Bureau of 
                Investigation.
                  (E) The Director of the Office of Government 
                Ethics.
                  (F) The Special Counsel of the Office of 
                Special Counsel.
                  (G) The Deputy Director of the Office of 
                Personnel Management.
                  (H) The Deputy Director for Management of the 
                Office of Management and Budget.
          (2) Chairperson and executive chairperson.--
                  (A) Executive chairperson.--The Deputy 
                Director for Management of the Office of 
                Management and Budget shall be the Executive 
                Chairperson of the Council.
                  (B) Chairperson.--The Council shall elect one 
                of the Inspectors General referred to in 
                paragraph (1)(A) or (B) to act as Chairperson 
                of the Council. The term of office of the 
                Chairperson shall be two years.
          (3) Functions of chairperson and executive 
        chairperson.--
                  (A) Executive chairperson.--The Executive 
                Chairperson shall--
                          (i) preside over meetings of the 
                        Council;
                          (ii) provide to the heads of agencies 
                        and entities represented on the Council 
                        with summary reports of the activities 
                        of the Council; and
                          (iii) provide to the Council such 
                        information relating to the agencies 
                        and entities represented on the Council 
                        as will assist the Council in 
                        performing its functions.
                  (B) Chairperson.--The Chairperson shall--
                          (i) convene meetings of the Council--
                                  (I) at least six times each 
                                year;
                                  (II) monthly to the extent 
                                possible; and
                                  (III) more frequently at his 
                                or her discretion;
                          (ii) exercise the functions and 
                        duties of the Council under subsection 
                        (c);
                          (iii) appoint a Vice Chairperson to 
                        assist in carrying out the functions of 
                        the Council and act in the absence of 
                        the Chairperson, from a category of 
                        Inspectors General described in 
                        subparagraph (A)(i), (A)(ii), or (B) of 
                        subsection (b)(1), other than the 
                        category from which the Chairperson was 
                        elected;
                          (iv) make such payments from funds 
                        otherwise available to the Council as 
                        may be necessary to carry out the 
                        functions of the Council;
                          (v) select, appoint, and employ 
                        personnel as needed to carry out the 
                        functions of the Council subject to the 
                        availability of appropriations and 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;
                          (vi) to the extent and in such 
                        amounts as may be provided in advance 
                        by appropriations Acts, enter into 
                        contracts and other arrangements with 
                        public agencies and private persons to 
                        carry out the functions and duties of 
                        the Council;
                          (vii) establish, in consultation with 
                        the members of the Council, such 
                        committees as determined by the 
                        Chairperson to be necessary and 
                        appropriate for the efficient conduct 
                        of Council functions; and
                          (viii) prepare and transmit a report 
                        annually on behalf of the Council to 
                        the President on the activities of the 
                        Council.
  (c) Functions and Duties of Council.--
          (1) In general.--The Council shall--
                  (A) continually identify, review, and discuss 
                areas of weakness and vulnerability in Federal 
                programs and operations with respect to fraud, 
                waste, and abuse;
                  (B) develop plans for coordinated, 
                Government-wide activities that address these 
                problems and promote economy and efficiency in 
                Federal programs and operations, including 
                interagency and inter-entity audit, 
                investigation, inspection, and evaluation 
                programs and projects to deal efficiently and 
                effectively with those problems concerning 
                fraud and waste that exceed the capability or 
                jurisdiction of an individual agency or entity;
                  (C) develop policies that will aid in the 
                maintenance of a corps of well-trained and 
                highly skilled Office of Inspector General 
                personnel;
                  (D) maintain an Internet Web site and other 
                electronic systems for the benefit of all 
                Inspectors General, as the Council determines 
                are necessary or desirable;
                  (E) maintain one or more academies as the 
                Council considers desirable for the 
                professional training of auditors, 
                investigators, inspectors, evaluators, and 
                other personnel of the various offices of 
                Inspector General; and
                  (F) make such reports to the Congress as the 
                Chairperson determines are necessary or 
                appropriate.
          (2) Adherence and participation by members.--Each 
        member of the Council should, to the extent permitted 
        under law, and to the extent not inconsistent with 
        standards established by the Comptroller General of the 
        United States for audits of Federal establishments, 
        organizations, programs, activities, and functions, 
        adhere to professional standards developed by the 
        Council and participate in the plans, programs, and 
        projects of the Council.
          (3) Existing authorities and responsibilities.--The 
        creation and operation of the Council--
                  (A) shall not affect the preeminent policy-
                setting role of the Department of Justice in 
                law enforcement and litigation;
                  (B) shall not affect the authority or 
                responsibilities of any Government agency or 
                entity; and
                  (C) shall not affect the authority or 
                responsibilities of individual members of the 
                Council.
  (d) Integrity Committee.--
          (1) Establishment.--The Council shall have an 
        Integrity Committee, which shall receive, review, and 
        refer for investigation allegations of wrongdoing that 
        are made against Inspectors General and certain staff 
        members of the various Offices of Inspector General.
          (2) Membership.--The Integrity Committee shall 
        consist of the following members:
                  (A) The official of the Federal Bureau of 
                Investigation serving on the Council, who shall 
                serve as Chairperson of the Integrity 
                Committee.
                  (B) 3 or more Inspectors General described in 
                subparagraph (A) or (B) of subsection (b)(1) 
                appointed by the Chairperson of the Council, 
                representing both establishments and designated 
                Federal entities (as that term is defined in 
                section 8G(a)).
                  (C) The Special Counsel of the Office of 
                Special Counsel.
                  (D) The Director of the Office of Government 
                Ethics.
          (3) Legal advisor.--The Chief of the Public Integrity 
        Section of the Criminal Division of the Department of 
        Justice, or his designee, shall serve as a legal 
        advisor to the Integrity Committee.
          (4) Referral of allegations.--
                  (A) Requirement.--An Inspector General shall 
                refer to the Integrity Committee any allegation 
                of wrongdoing against a staff member of his or 
                her office, if--
                          (i) review of the substance of the 
                        allegation cannot be assigned to an 
                        agency of the executive branch with 
                        appropriate jurisdiction over the 
                        matter; and
                          (ii) the Inspector General determines 
                        that--
                                  (I) an objective internal 
                                investigation of the allegation 
                                is not feasible; or
                                  (II) an internal 
                                investigation of the allegation 
                                may appear not to be objective.
                  (B) Staff member defined.--In this subsection 
                the term ``staff member'' means--
                          (i) any employee of an Office of 
                        Inspector General who reports directly 
                        to an Inspector General; or
                          (ii) who is designated by an 
                        Inspector General under subparagraph 
                        (C).
                  (C) Designation of staff members.--Each 
                Inspector General shall annually submit to the 
                Chairperson of the Integrity Committee a 
                designation of positions whose holders are 
                staff members for purposes of subparagraph (B).
          (5) Review of allegations.--The Integrity Committee 
        shall--
                  (A) review all allegations of wrongdoing it 
                receives against an Inspector General, or 
                against a staff member of an Office of 
                Inspector General; and
                  (B) refer to the Chairperson of the Integrity 
                Committee any allegation of wrongdoing 
                determined by the Integrity Committee to be 
                meritorious that cannot be referred to an 
                agency of the executive branch with appropriate 
                jurisdiction over the matter.
          (6) Authority to investigate allegations.--
                  (A) Requirement.--The Chairperson of the 
                Integrity Committee shall cause a thorough and 
                timely investigation of each allegation 
                referred under paragraph (5)(B) to be conducted 
                in accordance with this paragraph.
                  (B) Resources.--At the request of the 
                Chairperson of the Integrity Committee, the 
                head of each agency or entity represented on 
                the Council--
                          (i) may provide resources necessary 
                        to the Integrity Committee; and
                          (ii) may detail employees from that 
                        agency or entity to the Integrity 
                        Committee, subject to the control and 
                        direction of the Chairperson, to 
                        conduct an investigation pursuant to 
                        this subsection.
          (7) Procedures for investigations.--
                  (A) Standards applicable.--Investigations 
                initiated under this subsection shall be 
                conducted in accordance with the most current 
                Quality Standards for Investigations issued by 
                the Council or by its predecessors (the 
                President's Council on Integrity and Efficiency 
                and the Executive Council on Integrity and 
                Efficiency).
                  (B) Additional policies and procedures.--The 
                Integrity Committee, in conjunction with the 
                Chairperson of the Council, shall establish 
                additional policies and procedures necessary to 
                ensure fairness and consistency in--
                          (i) determining whether to initiate 
                        an investigation;
                          (ii) conducting investigations;
                          (iii) reporting the results of an 
                        investigation; and
                          (iv) providing the person who is the 
                        subject of an investigation with an 
                        opportunity to respond to any Integrity 
                        Committee report.
                  (C) Report.--With respect to any 
                investigation that substantiates any allegation 
                referred to the Chairperson of the Integrity 
                Committee under paragraph (5)(B), the 
                Chairperson of the Integrity Committee shall--
                          (i) submit to the Executive 
                        Chairperson of the Council a report on 
                        the results of such investigation, 
                        within 180 days (to the maximum extent 
                        practicable) after the completion of 
                        the investigation; and
                          (ii) submit to Congress a copy of 
                        such report within 30 days after the 
                        submission of such report to the 
                        Executive Chairperson under clause (i).
          (8) No right or benefit.--This subsection is not 
        intended to create any right or benefit, substantive or 
        procedural, enforceable at law by a person against the 
        United States, its agencies, its officers, or any 
        person.
  (e) Application.--The provisions of this section apply only 
to the Inspectors General (and their offices) listed in 
subsection (b)(1)(A) and (B).

                              DEFINITIONS

  Sec. [11.] 12. As used in this Act--
          (1)  * * *

           *       *       *       *       *       *       *


                             EFFECTIVE DATE

  Sec. [12.] 13. The provisions of this Act and the amendments 
made by this Act shall take effect October 1, 1978.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 31, UNITED STATES CODE

SUBTITLE I--GENERAL

           *       *       *       *       *       *       *


CHAPTER 7--GOVERNMENT ACCOUNTABILITY OFFICE

           *       *       *       *       *       *       *


                SUBCHAPTER II--GENERAL DUTIES AND POWERS

Sec. 711. General authority

  The Comptroller General may--
          (1) * * *

           *       *       *       *       *       *       *

          (4) administer oaths to witnesses [when auditing and 
        settling accounts] upon the specific approval only of 
        the Comptroller General or the Deputy Comptroller 
        General.

           *       *       *       *       *       *       *


Sec. 719. Comptroller General reports

  (a) * * *
  (b)(1) The Comptroller General shall include in the report to 
Congress under subsection (a) of this section--
          (A) * * *
          (B) information on carrying out duties and powers of 
        the Comptroller General under clauses (A) and (C) of 
        this paragraph, subsections (g) and (h) of this 
        section, and sections 717, 731(e)(2), 734, 1112, and 
        1113 of this title; [and]
          (C) the name of each officer and employee of the 
        Government Accountability Office assigned or detailed 
        to a committee of Congress, the committee to which the 
        officer or employee is assigned or detailed, the length 
        of the period of assignment or detail, a statement on 
        whether the assignment or detail is finished or 
        continuing, and compensation paid out of appropriations 
        available to the Comptroller General for the period of 
        the assignment or detail that has been completed[.]; 
        and
          (D) for Federal agencies subject to sections 901 to 
        903 of this title and other agencies designated by the 
        Comptroller General, an assessment of their overall 
        degree of cooperation in making personnel available for 
        interview, providing written answers to questions, 
        submitting to an oath authorized by the Comptroller 
        General under section 711 of this title, granting 
        access to records, providing timely comments to draft 
        reports, adopting recommendations in reports, and 
        responding to such other matters as the Comptroller 
        General considers appropriate.

           *       *       *       *       *       *       *

  (c) The Comptroller General shall report to Congress--
          (1) * * *
          (2) on the adequacy and effectiveness of--
                  (A) administrative audits of accounts and 
                claims in an agency; and
                  (B) inspections by an agency of offices and 
                accounts of fiscal officials; [and]
          (3) as frequently as practicable on audits carried 
        out under sections 713 and 714 of this title[.]; and
          (4) as soon as practicable when an agency or other 
        entity does not, within a reasonable period of time 
        after a request by the Comptroller General, make 
        personnel available for interview, provide written 
        answers to questions, or submit to an oath authorized 
        by the Comptroller General under section 711 of this 
        title.

           *       *       *       *       *       *       *


SUBTITLE II--THE BUDGET PROCESS

           *       *       *       *       *       *       *


CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

           *       *       *       *       *       *       *


Sec. 1105. Budget contents and submission to Congress

  (a) On or after the first Monday in January but not later 
than the first Monday in February of each year, the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
          (1) * * *

           *       *       *       *       *       *       *

          [(33) a separate appropriation account for 
        appropriations for the Inspectors General Criminal 
        Investigator Academy and the Inspectors General 
        Forensic Laboratory of the Department of the Treasury.]
          (33) a separate appropriation account for 
        appropriations for the Inspectors General Council, and, 
        included in that account, a separate statement of the 
        aggregate amount of appropriations requested for each 
        academy maintained by the Inspectors General Council.

           *       *       *       *       *       *       *


SUBTITLE III--FINANCIAL MANAGEMENT

           *       *       *       *       *       *       *


  CHAPTER 38--ADMINISTRATIVE REMEDIES FOR FALSE CLAIMS AND STATEMENTS

Sec. 3801. Definitions

  (a) For purposes of this chapter--
          (1) ``authority'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) an establishment (as such term is defined 
                in section 11(2) of the Inspector General Act 
                of 1978) which is not an executive department; 
                [and]
                  (D) the United States Postal Service; and
                  (E) a designated Federal entity (as such term 
                is defined under section 8G(a)(2) of the 
                Inspector General Act of 1978).

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 5, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART D--PAY AND ALLOWANCES

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

           *       *       *       *       *       *       *


Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.

           *       *       *       *       *       *       *

          [Inspector General, Department of Education.]

           *       *       *       *       *       *       *

          [Inspector General, Department of Energy.]

           *       *       *       *       *       *       *

          [Inspector General, Department of Health and Human 
        Services.
          [Inspector General, Department of Agriculture.]
          Special Counsel of the Merit Systems Protection 
        Board.
          [Inspector General, Department of Housing and Urban 
        Development.]
          Chairman, Federal Labor Relations Authority.
          [Inspector General, Department of Labor.
          [Inspector General, Department of Transportation.
          [Inspector General, Department of Veterans Affairs.]

           *       *       *       *       *       *       *

          [Inspector General, Department of Homeland Security.]

           *       *       *       *       *       *       *

          [Inspector General, Department of Defense.]

           *       *       *       *       *       *       *

          [Inspector General, Department of State.]

           *       *       *       *       *       *       *

          [Inspector General, Department of Commerce.
          [Inspector General, Department of the Interior.
          [Inspector General, Department of Justice.
          [Inspector General, Department of the Treasury.
          [Inspector General, Agency for International 
        Development.
          [Inspector General, Environmental Protection Agency.
          [Inspector General, Export-Import Bank.
          [Inspector General, Federal Emergency Management 
        Agency.
          [Inspector General, General Services Administration.
          [Inspector General, National Aeronautics and Space 
        Administration.
          [Inspector General, Nuclear Regulatory Commission.
          [Inspector General, Office of Personnel Management.
          [Inspector General, Railroad Retirement Board.
          [Inspector General, Small Business Administration.
          [Inspector General, Tennessee Valley Authority.
          [Inspector General, Federal Deposit Insurance 
        Corporation.]

           *       *       *       *       *       *       *

          [Inspector General, Resolution Trust Corporation.]

           *       *       *       *       *       *       *

          [Inspector General, Central Intelligence Agency]

           *       *       *       *       *       *       *

          [Inspector General, Social Security Administration.]

           *       *       *       *       *       *       *

          [Inspector General, United States Postal Service.]

           *       *       *       *       *       *       *


                            Additional Views

              ADDITIONAL VIEWS OF RANKING MEMBER TOM DAVIS

    Since the enactment of the Inspector General Act of 1978, 
inspectors general (IGs) throughout government have played an 
integral role in identifying waste and mismanagement in 
government. IGs have also been instrumental in aiding Congress 
and the executive branch to find ways to make government more 
efficient and effective.
    We all agree IGs should operate independently, free from 
political interference. After all, both agency heads and 
Congress often rely on IG reports to provide frank and open 
assessments of the effectiveness of federal programs.
    However, inspectors general should also be part of an 
agency's management structure--albeit with some independence--
rather than a ``fourth branch'' of the federal government. If 
we divorce the IGs from the day-to-day operations of the 
agencies they oversee, IGs will cease to perform a constructive 
role and could instead play more of a ``Monday morning 
quarterback'' role where their function is solely to second-
guess decisions made by agencies.
    Many of the provisions in H.R. 928 would help to enhance 
the effectiveness of the IGs in overseeing federal agencies and 
programs. But other provisions in the legislation go too far.
    As an example, during Committee consideration of the 
legislation, I offered an amendment to exempt the smaller 
agency inspectors general from the ``for cause'' removal 
provision in the bill, thereby reserving the ``for cause'' 
removal threshold only for Cabinet-level agency inspectors 
general. The purpose of the amendment, which was adopted, was 
to strike a balance between the need to ensure independence of 
our inspectors general while at the same time preserving the 
President's authority over employers and officers of the 
Executive Branch.
    While I believe this change improves the legislation, other 
changes may be necessary to ensure IGs are capable of 
effectively and efficiently carrying out their 
responsibilities. I understand the Administration has a number 
of suggested improvements to the legislation, improvements I 
trust the majority will work to accommodate before moving H.R. 
928 to the floor.

                                                         Tom Davis.