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S. 2170 (103rd): Government Management Reform Act of 1994


The text of the bill below is as of Jun 9, 1994 (Reported by Senate Committee).


S 2170 RS

Calendar No. 458

103d CONGRESS

2d Session

S. 2170

[Report No. 103-281]

IN THE SENATE OF THE UNITED STATES

June 9 (legislative day, JUNE 7), 1994

Mr. GLENN, from the Committee on Governmental Affairs, reported the following bill; which was read twice and placed on the calendar


A BILL

To provide a more effective, efficient, and responsive Government.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Government Management Reform Act of 1994’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title and table of contents.

TITLE I--LIMITATION ON PAY AND REDUCTION OF POSITIONS

      Sec. 101. Limitation on certain annual pay adjustments.

      Sec. 102. Reduction of Federal full-time equivalent positions.

TITLE II--HUMAN RESOURCE MANAGEMENT

      Sec. 201. Federal workforce training.

      Sec. 202. SES annual leave accumulation.

TITLE III--STREAMLINING MANAGEMENT CONTROL

      Sec. 301. Authority to increase efficiency in reporting to Congress.

      Sec. 302. Transfer of Davis-Bacon functions.

TITLE IV--FINANCIAL MANAGEMENT

      Sec. 401. Short title.

      Sec. 402. Electronic payments.

      Sec. 403. Franchise fund pilot programs.

      Sec. 404. Simplification of management reporting process.

      Sec. 405. Annual financial reports.

      Sec. 406. Authorization of appropriations for enhancing debt collection.

      Sec. 407. Contracts for collection services.

      Sec. 408. Notification to agencies of debtors’ mailing addresses.

      Sec. 409. Contracts for private counsel services.

      Sec. 410. Adjusting civil monetary penalties for inflation.

TITLE I--LIMITATION ON PAY AND REDUCTION OF POSITIONS

SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

    Effective as of December 31, 1994--

      (1) section 601(a)(2) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31(2)) is amended--

        (A) by striking out ‘(2) Effective’ and inserting in lieu thereof ‘(2)(A) Subject to subparagraph (B), effective’; and

        (B) by adding at the end thereof the following:

    ‘(B) In no event shall the percentage adjustment taking effect under subparagraph (A) in any calendar year (before rounding), in any rate of pay, exceed the percentage adjustment taking effect in such calendar year under section 5303 of title 5, United States Code, in the rates of pay under the General Schedule.’;

      (2) section 104 of title 3, United States Code, is amended--

        (A) in the first sentence by inserting ‘(a)’ before ‘The’;

        (B) in the second sentence by striking out ‘Effective’ and inserting in lieu thereof ‘Subject to subsection (b), effective’; and

        (C) by adding at the end thereof the following:

    ‘(b) In no event shall the percentage adjustment taking effect under the second and third sentences of subsection (a) in any calendar year (before rounding) exceed the percentage adjustment taking effect in such calendar year under section 5303 of title 5 in the rates of pay under the General Schedule.’;

      (3) section 5318 of title 5, United States Code, is amended--

        (A) in the first sentence by striking out ‘Effective’ and inserting in lieu thereof ‘(a) Subject to subsection (b), effective’; and

        (B) by adding at the end thereof the following:

    ‘(b) In no event shall the percentage adjustment taking effect under subsection (a) in any calendar year (before rounding), in any rate of pay, exceed the percentage adjustment taking effect in such calendar year under section 5303 in the rates of pay under the General Schedule.’; and

      (4) section 461(a) of title 28, United States Code, is amended--

        (A) by striking out ‘(a) Effective’ and inserting in lieu thereof ‘(a)(1) Subject to paragraph (2), effective’; and

        (B) by adding at the end thereof the following:

    ‘(2) In no event shall the percentage adjustment taking effect under paragraph (1) in any calendar year (before rounding), in any salary rate, exceed the percentage adjustment taking effect in such calendar year under section 5303 of title 5 in the rates of pay under the General Schedule.’.

SEC. 102. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSITIONS.

    (a) DEFINITION- For purposes of this section, the term ‘agency’ means an Executive agency as defined under section 105 of title 5, United States Code, but does not include the General Accounting Office.

    (b) LIMITATIONS ON FULL-TIME EQUIVALENT POSITIONS- The President, through the Office of Management and Budget (in consultation with the Office of Personnel Management), shall ensure that the total number of full-time equivalent positions in all agencies shall not exceed--

      (1) 2,095,182 during fiscal year 1994;

      (2) 2,044,100 during fiscal year 1995;

      (3) 2,003,846 during fiscal year 1996;

      (4) 1,963,593 during fiscal year 1997;

      (5) 1,923,339 during fiscal year 1998; and

      (6) 1,883,086 during fiscal year 1999.

    (c) MONITORING AND NOTIFICATION- The Office of Management and Budget, after consultation with the Office of Personnel Management, shall--

      (1) continuously monitor all agencies and make a determination on the first date of each quarter of each applicable fiscal year of whether the requirements under subsection (b) are met; and

      (2) notify the President and the Congress on the first date of each quarter of each applicable fiscal year of any determination that any requirement of subsection (b) is not met.

    (d) COMPLIANCE- If at any time during a fiscal year, the Office of Management and Budget notifies the President and the Congress that any requirement under subsection (b) is not met, no agency may hire any employee for any position in such agency until the Office of Management and Budget notifies the President and the Congress that the total number of full-time equivalent positions for all agencies equals or is less than the applicable number required under subsection (b).

    (e) WAIVER- Any provision of this section may be waived upon--

      (1) a determination by the President of the existence of war or a national emergency; or

      (2) the enactment of a joint resolution upon an affirmative vote of three-fifths of the Members of each House of the Congress duly chosen and sworn.

TITLE II--HUMAN RESOURCE MANAGEMENT

SEC. 201. FEDERAL WORKFORCE TRAINING.

    (a) IN GENERAL- Chapter 41 of title 5, United States Code, is amended--

      (1) in section 4101(4) by striking out ‘fields’ and all that follows through the semicolon and inserting in lieu thereof ‘fields which will improve individual and organizational performance and assist in achieving the agency’s mission and performance goals;’;

      (2) in section 4103--

        (A) in subsection (a)--

          (i) by striking out ‘In’ and all that follows through ‘maintain’ and inserting in lieu thereof ‘In order to assist in achieving an agency’s mission and performance goals by improving employee and organizational performance, the head of each agency, in conformity with this chapter, shall establish, operate, maintain, and evaluate’;

          (ii) by striking out ‘and’ at the end of paragraph (2);

          (iii) by redesignating paragraph (3) as paragraph (4); and

          (iv) by inserting after paragraph (2) the following:

      ‘(3) provide that information concerning the selection and assignment of employees for training and the applicable training limitations and restrictions be made available to employees of the agency; and’; and

        (B) in subsection (b)--

          (i) in paragraph (1) by striking out ‘determines’ and all that follows through the period and inserting in lieu thereof ‘determines that such training would be in the interests of the Government.’; and

          (ii) by striking out paragraph (2) and redesignating paragraph (3) as paragraph (2);

      (3) in section 4105--

        (A) in subsection (a) by striking out ‘(a)’; and

        (B) by striking out subsections (b) and (c);

      (4) by repealing section 4106;

      (5) in section 4107--

        (A) by amending the section heading to read as follows:

‘Sec. 4107. Restriction on degree training’;

        (B) by striking out subsections (a) and (b) and redesignating subsections (c) and (d) as subsections (a) and (b), respectively;

        (C) by amending subsection (a) (as so redesignated)--

          (i) by striking out ‘subsection (d)’ and inserting in lieu thereof ‘subsection (b)’; and

          (ii) by striking out ‘by, in, or through a non-Government facility’; and

        (D) by amending paragraph (1) of subsection (b) (as so redesignated) by striking out ‘subsection (c)’ and inserting in lieu thereof ‘subsection (a)’;

      (6) in section 4108(a) by striking out ‘by, in, or through a non-Government facility under this chapter’ and inserting in lieu thereof ‘for more than a minimum period prescribed by the head of the agency’;

      (7) in section 4113(b)--

        (A) in the first sentence by striking out ‘annually to the Office,’ and inserting in lieu thereof ‘to the Office, at least once every 3 years, and’; and

        (B) by striking out the matter following the first sentence and inserting in lieu thereof the following: ‘The report shall set forth--

      ‘(1) information needed to determine that training is being provided in a manner which is in compliance with applicable laws intended to protect or promote equal employment opportunity; and

      ‘(2) information concerning the expenditures of the agency in connection with training and such other information as the Office considers appropriate.’;

      (8) by repealing section 4114; and

      (9) in section 4118--

        (A) in subsection (a)(7) by striking out ‘by, in, and through non-Government facilities’;

        (B) by striking out subsection (b); and

        (C) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.

    (b) TECHNICAL AND CONFORMING AMENDMENTS- Title 5, United States Code, is amended--

      (1) in section 3381(e) by striking out ‘4105(a),’ and inserting in lieu thereof ‘4105,’; and

      (2) in the table of sections for chapter 41--

        (A) by repealing the items relating to sections 4106 and 4114; and

        (B) by amending the item relating to section 4107 to read as follows:

      ‘4107. Restriction on degree training.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall become effective on the date of enactment of this Act.

SEC. 202. SES ANNUAL LEAVE ACCUMULATION.

    (a) IN GENERAL- Effective on the first day of the first applicable pay period beginning after the date of the enactment of this Act, subsection (f) of section 6304 of title 5, United States Code, is amended to read as follows:

    ‘(f)(1) This subsection applies with respect to annual leave accrued by an individual while serving in a position in--

      ‘(A) the Senior Executive Service;

      ‘(B) the Senior Foreign Service;

      ‘(C) the Defense Intelligence Senior Executive Service;

      ‘(D) the Senior Cryptologic Executive Service; or

      ‘(E) the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service.

    ‘(2) For purposes of applying any limitation on accumulation under this section with respect to any annual leave described in paragraph (1)--

      ‘(A) ‘30 days’ in subsection (a) shall be deemed to read ‘90 days’; and

      ‘(B) ‘45 days’ in subsection (b) shall be deemed to read ‘90 days’.’.

    (b) USE OF EXCESS LEAVE- Notwithstanding the amendment made by subsection (a), in the case of an employee who, on the effective date of subsection (a), is subject to subsection (f) of section 6304 of title 5, United States Code, and who has to such employee’s credit annual leave in excess of the maximum accumulation otherwise permitted by subsection (a) or (b) of section 6304 (determined applying the amendment made by subsection (a)), such excess annual leave shall remain to the credit of the employee and be subject to reduction, in the same manner as provided in subsection (c) of section 6304.

TITLE III--STREAMLINING MANAGEMENT CONTROL

SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO CONGRESS.

    (a) PURPOSE- The purpose of this title is to improve the efficiency of executive branch performance in implementing statutory requirements for reports to Congress and committees of Congress such as the elimination or consolidation of duplicative or obsolete reporting requirements and adjustments to deadlines that shall provide for more efficient workload distribution or improve the quality of reports.

    (b) AUTHORITY OF THE DIRECTOR- The Director of the Office of Management and Budget may publish annually in the budget submitted by the President to the Congress, recommendations for consolidation, elimination, or adjustments in frequency and due dates of statutorily required periodic reports to the Congress or committees of Congress. For each recommendation, the Director shall provide an individualized statement of the reasons that support the recommendation. In addition, for each report for which a recommendation is made, the Director shall state with specificity the exact consolidation, elimination, or adjustment in frequency or due date that is recommended.

    (c) RECOMMENDATIONS- The Director’s recommendations shall be consistent with the purpose stated in subsection (a).

    (d) CONSULTATION- Before the publication of the recommendations under subsection (b), the Director or his designee shall consult with the appropriate congressional committees concerning the recommendations.

SEC. 302. TRANSFER OF DAVIS-BACON FUNCTIONS.

    (a) DAVIS-BACON ACT- Section 3(a) of the Act of March 3, 1931 (the Davis-Bacon Act) (40 U.S.C. 276a-2(a)) is amended by striking out ‘Comptroller General of the United States’ each place it appears and inserting in each such place ‘Secretary of Labor’.

    (b) CONTRACT WORK HOURS AND SAFETY STANDARDS ACT- Section 104(a) of the Contract Work Hours and Safety Standards Act (40 U.S.C. 330(a)) is amended by striking out ‘Comptroller General of the United States’ in the last sentence and inserting in lieu thereof ‘Secretary’.

    (c) TRANSFER OF RECORDS- The General Accounting Office shall transfer to the Department of Labor all of the records and unexpended balances of funds held in connection with the functions transferred under subsections (a) and (b).

    (d) SAVINGS PROVISIONS- (1) No personnel shall be transferred with the functions transferred under subsections (a) and (b).

    (2) All orders, determinations, rules, regulations, permits, agreements, grants, contracts, certificates, licenses, registrations, privileges, and other administrative actions--

      (A) which have been issued, made, granted, or allowed to become effective in the performance of functions which are transferred under this section, and

      (B) which are in effect at the time this section takes effect, or were final before the effective date of this section and are to become effective on or after the effective date of this section,

    shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, the Secretary of Labor or other authorized official, a court of competent jurisdiction, or by operation of law.

    (3) The provisions of this section shall not affect any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate, or financial assistance pending before the General Accounting Office at the time this section takes effect, with respect to functions transferred by this section but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted, and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this paragraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted.

    (4) The provisions of this section shall not affect suits commenced before the effective date of this section, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted.

    (5) No suit, action, or other proceeding commenced by or against the General Accounting Office, or by or against any individual in the official capacity of such individual as an officer of the General Accounting Office, shall abate by reason of the enactment of this section.

    (6) Any administrative action relating to the preparation or promulgation of a regulation by the General Accounting Office relating to a function transferred under this section may be continued by the Department of Labor with the same effect as if this section had not been enacted.

    (7) Reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or relating to--

      (A) the Comptroller General with regard to functions transferred under this section, shall be deemed to refer to the Secretary of Labor; and

      (B) the General Accounting Office with regard to functions transferred under this section, shall be deemed to refer to the Department of Labor.

TITLE IV--FINANCIAL MANAGEMENT

SEC. 401. SHORT TITLE.

    This title may be cited as the ‘Federal Financial Management Act of 1994’.

SEC. 402. ELECTRONIC PAYMENTS.

    (a) IN GENERAL- Section 3332 of title 31, United States Code, is amended to read as follows:

‘Sec. 3332. Required direct deposit

    ‘(a)(1) Notwithstanding any other provision of law, all Federal wage, salary, and retirement payments shall be paid to recipients of such payments by electronic funds transfer, unless another method has been determined by the Secretary of the Treasury to be appropriate.

    ‘(2) Each recipient of Federal wage, salary, or retirement payments shall designate one or more financial institutions or other authorized payment agents and provide the payment certifying or authorizing agency information necessary for the recipient to receive electronic funds transfer payments through each institution so designated.

    ‘(b)(1) The head of each agency shall waive the requirements of subsection (a) of this section for a recipient of Federal wage, salary, or retirement payments authorized or certified by the agency upon written request by such recipient.

    ‘(2) Federal wage, salary, or retirement payments shall be paid to any recipient granted a waiver under paragraph (1) of this subsection by any method determined appropriate by the Secretary of the Treasury.

    ‘(c)(1) The Secretary of the Treasury may waive the requirements of subsection (a) of this section for any group of recipients upon request by the head of an agency under standards prescribed by the Secretary of the Treasury.

    ‘(2) Federal wage, salary, or retirement payments shall be paid to any member of a group granted a waiver under paragraph (1) of this subsection by any method determined appropriate by the Secretary of the Treasury.

    ‘(d) This section shall apply only to recipients of Federal wage or salary payments who begin to receive such payments on or after January 1, 1995, and recipients of Federal retirement payments who begin to receive such payments on or after January 1, 1995.

    ‘(e) The crediting of the amount of a payment to the appropriate account on the books of a financial institution or other authorized payment agent designated by a payment recipient under this section shall constitute a full acquittance to the United States for the amount of the payment.

    ‘(f) For purposes of this section a Federal retirement payment shall not include any benefit--

      ‘(1) paid under title II of the Social Security Act; or

      ‘(2) payable under the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.)’.

    (b) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 33 of title 31, United States Code, is amended by amending the item for section 3332 to read:

      ‘3332. Required direct deposit.’.

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a) ESTABLISHMENT- There is authorized to be established on a pilot program basis in each of four executive agencies a franchise fund. The President, after consultation with the chairman and ranking members of the Committees on Appropriations and Governmental Affairs of the Senate, and the Committees on Appropriations and Government Operations of the House of Representatives, shall designate the agencies. Two of the four agencies shall be agencies with existing working capital funds that provide authorized services and two shall be agencies without such funds.

    (b) USES- Each such fund may provide, consistent with guidelines established by the President, such common administrative support services to the agency and to other agencies as the head of such agency, with the approval of the President, determines can be provided more efficiently through such a fund than by other means. To provide such services, each such fund is authorized to acquire the capital equipment, automated data processing systems, and financial management and management information systems needed. Services shall be provided by such funds on a competitive basis.

    (c) FUNDING- (1) There are authorized to be appropriated to the franchise fund of each agency designated under subsection (a) such funds as are necessary to carry out the purposes of the fund, to remain available until expended.

    (2) Fees for services provided shall be established by the head of the agency at a level to cover the total estimated costs of providing such services. Such fees shall be deposited in the agency’s fund to remain available until expended, and may be used to carry out the purposes of the fund.

    (3) There are authorized to be transferred to the fund of each agency established under subsection (a) the unobligated amounts of that agency’s appropriations available for salaries and expenses for a fiscal year. The unobligated amounts may be transferred to the agency’s franchise fund no later than the end of the succeeding fiscal year, to remain available until expended to carry out the purposes of the fund.

    (4) The amount of unobligated balances to be transferred under paragraph (3) shall be determined by the agency in consultation with the President and the Committees on Appropriations of the Senate and of the House of Representatives. Any proposed use of these transferred funds shall be made only after notification 15 days in advance to the Committees on Appropriations of the Senate and Senate and the House of Representatives.

    (d) REPORT ON PILOT PROGRAMS- Within 6 months after the end of fiscal year 1997, the President shall forward a report on the results of the pilot programs to the Committees on Appropriations of the Senate and of the House of Representatives, and to the Committee on Governmental Affairs of the Senate and the Committee on Government Operations of the House of Representatives. The report shall contain the financial and program performance results of the pilot programs, including recommendations for--

      (1) the structure of the fund;

      (2) the composition of the funding mechanism;

      (3) the capacity of the fund to promote competition; and

      (4) the desirability of extending the application and implementation of franchise funds to other Federal agencies.

    (e) PROCUREMENT- Nothing in this section shall be construed as relieving any agency of any duty under applicable procurement laws.

    (f) TERMINATION- The provisions of this section shall expire on October 1, 1999.

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

    (a) IN GENERAL- To improve the efficiency of executive branch performance in implementing statutory requirements for financial management reporting to the Congress and its committees, the Director of the Office of Management and Budget may adjust the frequency and due dates of or consolidate any statutorily required reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress under any laws for which the Office of Management and Budget has financial management responsibility, including--

      (1) chapters 5, 9, 11, 33, 35, 37, 75, and 91 of title 31, United States Code;

      (2) the Inspector General Act of 1978 (5 U.S.C. App.);

      (3) sections 6103 and 7213 of the Internal Revenue Code of 1986, and section 3302 and chapter 37 of title 31, United States Code;

      (4) chapter 39 of title 31, United States Code; and

      (5) the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).

    (b) APPLICATION- The authority provided in subsection (a) shall apply only to reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress required by statute to be submitted between January 1, 1995, and September 30, 1997.

    (c) ADJUSTMENTS IN REPORTING- The Director may consolidate or adjust the frequency and due dates of any statutorily required reports under subsections (a) and (b) only after--

      (1) consultation with the Chairman of the Senate Committee on Governmental Affairs and the Chairman of the House of Representatives Committee on Government Operations; and

      (2) written notification to the Congress, no later than February 8 of each fiscal year covered under subsection (b) for those reports required to be submitted during that fiscal year.

SEC. 405. ANNUAL FINANCIAL REPORTS.

    (a) FINANCIAL STATEMENTS- Section 3515 of title 31, United States Code, is amended to read as follows:

‘Sec. 3515. Financial statements of agencies

    ‘(a) Not later than March 1 of 1997 and each year thereafter, the head of each executive agency identified in section 901(b) of this title shall prepare and submit to the Director of the Office of Management and Budget an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.

    ‘(b) Each audited financial statement of an executive agency under this section shall reflect--

      ‘(1) the overall financial position of the offices, bureaus, and activities covered by the statement, including assets and liabilities thereof; and

      ‘(2) results of operations of those offices, bureaus, and activities.

    ‘(c) The Director of the Office of Management and Budget shall identify components of executive agencies that shall be required to have audited financial statements meeting the requirements of subsection (b).

    ‘(d) The Director of the Office of Management and Budget shall prescribe the form and content of the financial statements of executive agencies under this section, consistent with applicable accounting and financial reporting principles, standards, and requirements.

    ‘(e) The Director of the Office of Management and Budget may waive the application of all or part of subsection (a) for financial statements required for fiscal years 1996 and 1997.

    ‘(f) Not later than March 1 of 1995 and 1996, the head of each executive agency identified in section 901(b) of this title and designated by the Director of the Office of Management and Budget shall prepare and submit to the Director of the Office of Management and Budget an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.

    ‘(g) Not later than March 31 of 1995 and 1996, for executive agencies not designated by the Director of the Office of Management and Budget under subsection (f), the head of each executive agency identified in section 901(b) of this title shall prepare and submit to the Director of the Office of Management and Budget a financial statement for the preceding fiscal year, covering--

      ‘(1) each revolving fund and trust fund of the agency; and

      ‘(2) to the extent practicable, the accounts of each office, bureau, and activity of the agency which performed substantial commercial functions during the preceding fiscal year.

    ‘(h) For purposes of subsection (g), the term ‘commercial functions’ includes buying and leasing of real estate, providing insurance, making loans and loan guarantees, and other credit programs and any activity involving the provision of a service or thing for which a fee, royalty, rent, or other charge is imposed by an agency for services and things of value it provides.’.

    (b) AUDITS BY AGENCIES- Subsection 3521(f) of title 31, United States Code, is amended to read as follows:

    ‘(f)(1) For each audited financial statement required under subsections (a) and (f) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in accordance with generally accepted government auditing standards.

    ‘(2) Not later than June 30 following the fiscal year for which a financial statement is submitted under subsection (g) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in accordance with generally accepted government auditing standards.’.

    (c) GOVERNMENTWIDE FINANCIAL STATEMENT- Section 331 of title 31, United States Code, is amended by adding the following new subsection:

    ‘(e)(1) Not later than March 31 of 1998 and each year thereafter, the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, shall annually prepare and submit to the President and the Congress an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of the executive branch of the United States Government. The financial statement shall reflect the overall financial position, including assets and liabilities, and results of operations of the executive branch of the United States Government, and shall be consistent with applicable accounting and financial reporting principles, standards, and requirements.

    ‘(2) The Comptroller General of the United States shall audit the financial statement required by this section.’.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS FOR ENHANCING DEBT COLLECTION.

    (a) IN GENERAL- Chapter 37 of title 31, United States Code, is amended by adding after section 3720A the following new section:

‘Sec. 3720B. Authorization of appropriations for enhancing debt collection

    ‘(a) To the extent and in the amounts provided in advance in appropriations Acts--

      ‘(1) an amount not to exceed 1 percent of the delinquent debts collected for a program in 1 fiscal year is authorized to be credited in the following fiscal year to a special fund for such program;

      ‘(2) an amount not to exceed 10 percent of any sustained annual increase in delinquent debt collections, as defined by the Director of the Office of Management and Budget, is authorized to be credited to a special fund for such program; and

      ‘(3) from amounts credited under paragraphs (1) and (2), such sums as may be necessary are authorized to be appropriated for the improvement of that program’s debt collection activities, including, but not limited to, account and loan servicing, delinquent debt collection and asset disposition.

    ‘(b) Debt is defined as delinquent under standards prescribed or to be prescribed by the Secretary of the Treasury.

    ‘(c) For direct loan and loan guarantee programs subject to title V of the Congressional Budget Act of 1974, amounts credited in accordance with section (a) shall be considered administrative costs and shall not be included in the estimated payments to the Government for the purpose of calculating the cost of such programs.

    ‘(d) This section shall apply only to collection of debts--

      ‘(1) for a program not within the Department of Justice; and

      ‘(2) not involving the assistance of the Department of Justice.’.

    (b) TECHNICAL AND CONFORMING AMENDMENTS- The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by adding after the item relating to section 3720A the following new item:

      ‘3720B. Authorization of appropriations for enhancing debt collection.’.

SEC. 407. CONTRACTS FOR COLLECTION SERVICES.

    Section 3701 of title 31, United States Code, is amended--

      (1) in subsection (d)--

        (A) by striking out ‘and 3716-3719’ and inserting in lieu thereof ‘, 3716, and 3717’; and

        (B) by striking out ‘, the Social Security Act (42 U.S.C. 301 et seq.),’; and

      (2) by adding at the end thereof the following new subsection:

    ‘(e) Section 3718 of this title does not apply to a claim or debt under, or to an amount payable under, the Social Security Act (42 U.S.C. 301 et seq.) owed by a person receiving benefits under that Act or to a claim or debt under, or to an amount payable under the Internal Revenue Code of 1986.’.

SEC. 408. NOTIFICATION TO AGENCIES OF DEBTORS’ MAILING ADDRESSES.

    Section 3720A of title 31, United States Code, is amended by striking out ‘the individual’s home address.’ at the end of subsection (c) and inserting in lieu thereof the following: ‘the person’s mailing address. Provision of this information is authorized by section 6103(m)(2) of the Internal Revenue Code of 1986.’.

SEC. 409. CONTRACTS FOR PRIVATE COUNSEL SERVICES.

    Section 3718(b)(1)(A) of title 31, United States Code, is amended by striking out ‘If the Attorney General makes a contract for legal services to be furnished in any judicial district of the United States under the first sentence of this paragraph, the Attorney General shall use his best efforts to obtain, from among attorneys regularly engaged in the private practice of law in such district, at least four such contracts with private individuals or firms in such district.’.

SEC. 410. ADJUSTING CIVIL MONETARY PENALTIES FOR INFLATION.

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890) is amended--

      (1) by amending section 4 to read as follows:

‘CIVIL MONETARY PENALTY INFLATION ADJUSTMENT REPORTS

    ‘SEC. 4. The head of each agency shall--

      ‘(1) by regulation, no later than September 30, 1994, and at least once every 4 years thereafter, adjust each civil monetary penalty provided by law within the jurisdiction of the Federal agency, except for any penalty under the Internal Revenue Code of 1986 by the inflation adjustment described under section 5 and publish each such adjustment in the Federal Register; and

      ‘(2) provide a report to the Secretary of the Treasury by November 15 of each year on all penalties adjusted during the preceding fiscal year.’;

      (2) by amending section 5(a) by striking out ‘The adjustment described under paragraphs (4) and (5)(A) of section 4’ and inserting in lieu thereof ‘The inflation adjustment’; and

      (3) by adding after section 6 the following new section:

‘APPLICATION

    ‘SEC. 7. Any increase to a civil monetary penalty resulting from this Act shall apply only to violations which occur after the date any such increase takes effect.’.

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Calendar No. 458

103d CONGRESS

2d Session

S. 2170

[Report No. 103-281]

A BILL

To provide a more effective, efficient, and responsive Government.


June 9 (legislative day, JUNE 7), 1994

Read twice and placed on the calendar