APPENDIX 3 INSPECTOR GENERAL ACT OF 1978

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TITLE 5-APPENDIX 2 188
Notes of Decisions
which had outlived their usefulness; to remedy
situation, Congress chose to terminate all advisory
committees. Carpenter v. Morton, D.C.Nev.
1976, 424 F.Supp. 603.
-t was intended to
ough this section
visory committees
ections 5, 6 and 7
"template studied
dvisory committee
lotion, D.C.Nev.
ppendix was con-
visory committees
3. Powers and duties
Congress contemplated that this Appendix
would affect existing substantive low and that if it
was later decided advisory committees were neces-
sary, Congress would enact legislation to rechartcr
them; Secretary of Interior had no obligation or
authority to recharter advisory boards of which
plaintiffs were members. Carpenter v. Morton,
D.C.Ncv.1976. 424 F.Supp. 603.
section 7(b), this Act shall become effective upon the
following October 6, 1972.
APPENDIX 3
INSPECTOR. (ENERAIL ACT OF 1978
Pub.- 95-452, Oct. 12, 1978, 92 Stat. 1101, as amended Pub.L. 96-88, Title V,
? 508(n), Oct. 17, 1979, 93 Stat. 694; Pub.L. 97-113, Title VII, ? 705, Dec. 29,
1981, 95 Stat. 1644; Pub.L. 97-252, Title XI, ? 1117(a)-(c), Sept. 8, 1982, 9? Stat.
76-752; Pub.L. 99-93, Title 1, ? 150(a), Aug. 16, 1985, 99 Stat. 427; Pub.L.
99-399, Title IV, ? 412(a), Aug. 27, 1986, 100 Stat. 867.
Sec.
Sec.
1.
Short title.
6.
Authority of Inspectors General; in-
2.
Purpose and establishment of Offices
formation and assistance from Fed-
of Inspector General; departments
eral agencies; unreasonable refusal;
and agencies involved.
office space and equipment.
3.
Appointment of Inspectors General;
7.
Complaints by employees; disclosure
1
supervision; removal; political ac-
of identity; reprisals.
i
tivities; appointment of Assistant
S.
Additional provisions with respect to
Inspector General for Auditing and
the Inspector General of the De-
Assistant Inspector General for In-
partment of Defense.
vestigations.
8A.
Special provisions relating to the
4.
Duties and responsibilities; report of
Agency for International Develop-
criminal violations to Attorney Gen-
ment.
eral.
9.
Transfer of functions.
S.
Semiannual reports; transmittal to
10.
Conforming and technical amend-
Congress; availability to public; im-
ments.
mediate report on serious or fla-
11.
Definitions.
grant problems.
12.
Effective date.
?
1.
Short title
That this Act be cited as the "Inspector General Act of 1978".
Legislative History. For legislative history and
purpose of Pub.L. 95-452, we 1978 U.S. Code
Cong: and Adm. News, p. 2676.
? 2. Purpose and establishment of Offices of Inspector General; departments
and agencies involved
In order to create independent and objective units-
(1) to conduct and supervise audits and investigations relating to programs
and operations of the Department of Agygulture, the Department of Corn erce,
the Department of D fefeense, the Department of Education, the Department of
Housing and Urban Development, the Department`o the Interior, the Depart-
ment of Labor, t7fe Department of Transportation, the Agency for International
Development, the Community Services Administration, the Ei,vironmen al Pro-
.B Aeronautics
tection Agency, the General Services ministration, the Nation
and Space Administration, the Small Business Administration, the United States
Informa iii Agency, the Veterans' Administration, and the Department of
Sta
(2) to provide leadership and coordination and recommend policies for activi-
ties designed (A) to promote economy, efficiency, and effectiveness in the
(3) to provide a means for keeping the hgad of the establishment and the
Congrgss fully and currently informed about problems and deficiencies relating
to t1 administration of such programs and operations and the necessity for and
progress of corrective action;
189
programs and operations; and
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? 2 TITLE 5-APPENDIX 3 190
thereby' is hereby established in each of such establishments an office of Inspector
General.
(As amended Pub.L. 96-88, Title V, ? 608(nX1), Oct. 17, 1979, 93 Stat. 694; Pub.L. 97-118, Title
VII, ? 705(a)(l), Dec. 29, 1981, 95 Stat. 1544; Pub.L. 97-252, Title X1, ? 1117(axl), Sept. 8, 1982,
96 Stat. 750; Pub.L. 99-93, Title I, ? 150(aXl), Aug. 16, 1985, 99 Stat. 427; Pub.L. 99-399, Title
IV, ? 412(axl), Aug. 27, 1986, 100 Stat. 867,)
I So in original. Probably should be "there".
1966 Amendment. Par. (1). Pub.L. 99-399 established by section 601 of the Economic Op-
inserted "the United States Information Agency," portunity Act of 1964, as amended (42 U.S.C.A.
before "the Veterans' Administration". ? 2941), was terminated when the Economic Op.
1983 Amendment. Par. (1). Pub.L. 99-93 portunity Act of 1964. Pub.L. 88-452, Aug. 20,
added reference to the Department of State. 1964, 78 Stat. 508, as amended, was repealed,
1982 Amendment. Par. (1). Pub.L. 97-252, except for Titles VIII and X, effective Oct. 1,
Department of De- 1981, by section 683(a) of Pub.L. 97-35, Title VI,
? 1 (, `theAug. 13, 1981, 95 Stat. 519, which is classified to inserted fencee,,"" following "Commerce,". 42 U.S.C.A. ? 9912(a). An Office of Community
1981 Amendment. Par. (I). Pub.L. 97-113 Services, headed by a Director, was established in
inserted "the Agency for International Develop- the Department of Health and Human Services by
ment," after "Transportation.". section 676 of Pub.L. 97-35, which is classified to
1979 Amendment. Par. (1). Pub.L. 96-44 in- 42 U.S.C.A. 19905.
sorted "the Department of Education," following Leg slative History. For legislative history and
"Commerce,". purpose of Pub.L. 95-452,.see 1978 U.S. Code
Effective Date of 1979 Amendment. Amend- Cong. and Adm. News, p. 2676. See, also, Pub.L.
ment by Pub.L. 96-88, effective May 4, 1980, with 96-88, 1979 U.S. Code Cong. and Adm. News, p.
specified exceptions, see section 601 of Pub.L. 1514; Pub.L. 97-113, 1981 U.S. Code Cong. and .
96-88, set out as.an Effective Date note under Adm. News, p. 2404; Pub.L. 99-93, 1985 U.S.
section 3401 of Title 20, Education. Code Cong. and Adm. News, p. 329; Pub.L.
Community Services Administration. The 99-399, 1986 U.S.Code Cong. and Adm.News, p.
Community Services Administration, which was 1865.
? 3. Appointment of Inspector General; supervision; removal; political activi-
ties; appointment of Assistant Inspector General for Auditing and Assist-
ant Inspector General for Investigations
(a) There shall be at the head of each Office an Inspector General who shall be
appointed by the PW.Aaent, by and with the advice and consent of the Senate,
without reg9,Ld_ta_po1itical-affiliation and solely on the basis of integrity and
demonstrated ability in accounting, auditing, financta analysis, law, management
l
l
analysis, public administration, or investigations.' &ch Inspector General sha
such head, shall re to or be subject to supervision by, any offer u
either a head of the establishment nor the officer next in
f such establish nt
.
o
tor General from ' ' i tin i
. shall re
ran s e ow sue.
VIY
Z
carrying out or corn e n an audit or investi ation or from lssuin an b ens
ur ng a course of any audit or investigation.
(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.
(c) For the purposes of section 7324 of Title 5, United States Code, no Inspector
General shall be considered to be an employee who determines policies to be pursued
by the United States in the nationwide administration of Federal laws.
(d) Each Inspector General shall, in accordance with applicable laws and regula-
tions governing the civil service-
(1) appoint an Assistant Inspector General for Auditing who shall have the
responsibility for supervising -re =per rmance of au t mg activities relating to
programs and operations of the establishment, and
ctor General for Inv 'etons who shall have
(2) appoint an Ass nt. 1lnoe
the responsibility for supervising the performance of investigative activities
relating to such programs and operations.
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L"11
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TITLE 5-APPENDIX 3 190
shed in each of such establishments an office of Inspector
tie V. ? 508(nX1), Oct. 17. 1979, 93 Stat. 694; Pub.L. 97-118. Title
95 Stal. 1544; Pub.L. 97-252, Title Xl, ? 1117(aXI), Sept. 8, 1982,
tie 1, ? 150(aXI), Aug. 16, 1985, 99 Stat. 427; Pub.L. 99-399, Title
100 Stat. 867.)
Pub.L. 99-399 established by section 601 of the Economic op.
ination Agency," portunity Act of 1964. as amended (42 U.S.C.A.
atoon". ? 2941), was terminated when the Economic op.
Pub.L. 99-93
em of State..
Pub.L. 97-252,
payment of De-
Pub.L. 96-44 in-
ration," following
dment. Amend-
day 4, 1980, with
1 601 of Pub.L.
Date note under
ion.
portunity Act of 1964, Pub.L. 88.452, Aug. 20,
1964. 78 Stat. 508, as amended, was repealed,
except for Titles Vlll and X, effective Oct. 1,
1981, by section 683(a) of Pub.L. 97-35, Title VI,
Aug. 13, 1981, 95 Stat. 519, which is classified to
section 676 of Pub.L. 97-35, which is classified to
42 U.S.C.A. ? 9905.
Legislative History. For legislative history and
purpose of Pub.L. 95-452, .see 1978 U.S. Code
Cong. and Adm. News, p. 2676. See, also, Pub.L.
96-88, 1979 U.S. Code Cong. and Adm. News, p.
1514; Pub.L. 97-113, 1981 U.S. Code Cong. and
Adm. News, p. 2404; Pub-L. 99-93, 1985 U.S.
Code Cong. and Adm. News, p. 329; Pub.L.
191 INSPECTOR GENERAL ACT
Legislative History. For legislative history and
purpose of Pub.L. 95-452, we 1978 U.S. Code
Cong. and Adm. News, p. 2676.
1 4. Duties and responsibilities; report of criminal violations to Attorney Gen-
eral
(a) It shall be the duty and responsibility of each Inspector General, with respect
to the establishment within which his Office is established-
(1) to provide policy direction for and to conduct, supervise, and coordinate
audits and inventions relating to the programs and operations of such
estat
(2) to review existine and proposed le
programs an o rataons o _ is ment and to make recommen bons in
legislation or regulations on the economy and efficiency in the administration of
programs and operations administered or financed by such establishment or the
prevention and detection of fraud and abuse in such programs and operations;
(3) to reco d policies for, and to conduct, supervise, or coordinate other
activities cam out or financed by such establishment for the purpose of
pro yin the administration of, or preventing and
detecting fraud and abuse in, its programs and operations;
(4) to recommend licie on
tionships betwee BUr Patahlichmont nn nf~ r e is rate And
all matters relating to the promotion of economy and efficiency in the adminis-
tration of, or the prevention and detection of fraud and abuse in, programs and
sistration. The 99-399. 1986 U.S.Code Cong. and Adm.News, p.
rtion, which was 1865.
pect.or General; supervision; removal; political activi-
of Assistant Inspector General for Auditing and Assist-.
feral for Investigations
e head of each Office an Inspector General who shall be
nt, by and with the advice and consent of the Senate,
al affiliation and solely on the basis of integrity and
-counting, auditing, financial analysis, law, management
ation, or investigations. Each Inspector General shall
to general supervision of the head of the establishment
uch authority is delegated, the officer next in rank below
port to, or be subject to supervision by, any other officer
either the head of the establishment nor the officer next in
I prevent or prohibit the Inspector General from initiating,
any audit or investigation, or from issuing any subpena
tudit or investigation.
al may be removed from office by the President. The
rte the reasons for any such removal to both Houses of
section 7324 of Title 5, United States Code, no Inspector
l to be an employee who determines policies to be pursued
e nationwide administration of Federal laws.
ervice-
;tant Inspector General for Auditing who shall have the
-rvising the performance of auditing activities relating to
ins of the establishment, and
,tent Inspector General for Investigations who shall have
supervising the performance of investigative activities
ams and operations.
operations administered or financed by such establishment, or (B) the identifica-
tion and prosecution of participants in such fraud or abuse; and
(5) to keen the head of surh establishment and the Contrress fully a
mg tau and 5713-er-MM rr n 1 c gelatins.
abuses, and deficiencies, and to report on the progress made-in implementing
such corrective action. -
(b) In carrying out the responsibilities specified in subsection (axl), each Inspector
General shall-
(1) comply with standards established by the Comptroller General of the
United States for audits of Federal establishments, organizations, programs,
activities, and functions;
(2) establish guidelines for determining when it shall be appropriate to use
non-Federal auditors; and
(3) take appropriate steps to assure that any work performed by non-Federal
auditors complies with the standards established by the Comptroller General as
described in paragraph (1).
(c) In carrying out the duties and responsibilities established under this Act, each
Inspector General shall give particular regard to the activities of the Comptroller
General of the United States with a view toward avoiding duplication and insuring
effective coordination and cooperation.
(d) In carrying out the duties and responsibilities established under this Act, each
Inspector General shall report expeditiously to the Attorney General whenever the
Inspector General has reasonable grounds to believe there has been a violation of
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676.
Notes of Decisions
1. General Services Administration programs
The Inspector General has the responsibility
and the power to conduct, supervise and coor-
dinate audits and investigations relating to pro-
grams of the General Services Administration in
order to promote efficiency and to prevent fraud
and abuse, but unlike the Internal Revenue Ser-
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Note I
vice, which by section 7122 of Title 26 ban its
power to continue civilly once the Justice Depart-
meet begins to move criminally, the powers of the
TITLE 6-APPENDIX 8
192
Inspector General are not so limited.
U.S. v: An
Metal U.S.A.. Inc., D.C.N.1.1980, 484 F.Supp.
M.
6. Semiannual reports; transmittal to Congress; availability to public; Imme-
diate report on serious or flagrant problems
(a) Each Inspector General shall, not later than April 80 and October 81 of each
year,
pre are semiannual reports summarizing the activities of the Office during the
immedia y press t g s c- on periods ending March 81 and September 80. Such
reports shall include, but need not be limited to-
(1) a description of significant problems, abuses, and deficiencies relating to
the administration of programs and operations of such establishment disclosed
by such activities during the reporting period;
(2) a description of the recommendations for corrective action made by the
Office during the reporting period with respect to significant problems, abuses,
or deficiencies identified pursuant to paragraph (1);
(3) an identification of each significant recommendation described in previous
semiannual reports on which corrective action has not been completed; .
(4) a summary of matters referred to prosecutive authorities and the.prosecu-
tions and convictions which have resulted;
(5) a summary of each report made to the head of the establishment under
section 6(b)(2) during the reporting period; and
(6) a listing of each audit report completed by the Office during the reporting
period.
(b) Semiannual reports of each Inspector General shall be furnished to the head of
the establishment involved not later than Apn1 30 and October ran
i'r3 ted by such head to the appropriate committees or subcommittees of
the
.as w?it in thirty days after receipt of the report, together with a report by
t e ead of t e establishment containing any comments such head deems appropri-
ate.
(c) Wit ys of the transmission of the semiannual reports of each
Inspector General to the Congress, the head of each establishment shall make copies
of such report available to the public upon request and at a reasonable cost.
E
(d)ach Ins ector General shall re rtimrnpdintolyj4 the head of the establish-
menentt involved -whenever the Inspector General becomes aware o pa cu ar y
serious or flagrant problems, abuses, or deficiencies relating to the administration of
programs and operations of such establishment. ThLh&,W of the establishment shall
transmit n ro riate committees or su committees o n-
gress wit in seven calen ar ays, er with a report by the head of the
establishment containing any comments such head deems a
ri
t
pprop
a
e
.
(e)(1) Nothing in this section shall be construed to authorize the public disclosure
of information which is- ,
(A) specifically prohibited from disclosure by any other provision of law;
(B) specifically required by Executive order to be protected from disclosure in
the interest of national defense of national security or in the conduct of foreign
affairs; or
(C) a part of an ongoing criminal investigation.
(2) Notwithstanding paragraph (IXC), any report 'under this section may be
disclosed to the public in a form which includes information with respect to a part of
an ongoing criminal investigation if such information has been included in a public
record.
(3) Nothing in this section or in any other provision of this Act shall be construed
to authorize or permit the withholding of information from the Congress, or from
any committee or subcommittee thereof.
(As amended Pub.L. 97-252, Title XI, 4 1117(c), Sept 8, 1982, 96 Staff 752.)
1982 Amendment. Subsec. (e). Pub.L. 97-252 Legislative History. For legislative history and
added subsec. (e). purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676.
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and shall
and facili
Legislati,
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Cong. and
1. Subpoet
Inspector
had statuto;
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TITLE 6-APPENDIX 3 192
e 26 loses its Inspector General are not so limited. U.S. v. An
ustice Depart- Metal U.S.A., Inc., D.C.N.J.1980, 484 F.Supp.
powers of the 894.
ranamittal to Congress; availability to public; imme-
ous or flagrant problems
i) shall, not later than April 80 and October 81 of each
aorta summarizing the activities of the Office during the
onth periods ending March 81 and September 80. Such
ed not be limited to-
gnificant problems, abuses, and deficiencies relating to
ograms and operations of such establishment disclosed
the reporting period;
he recommendations for corrective action made by the
zng period with respect to significant problems, abuses,
pursuant to paragraph (1);
f each significant recommendation described in previous
avhich corrective action has not been completed;
tters referred to prosecutive authorities and the.prosecu-
hich have resulted;
ch report made to the head of the establishment under
to reporting period; and
,udit report completed by the Office during the reporting
each Inspector General shall be furnished to the head of
not later than April 30 and October 31 of each year and
head to the appropriate committees or subcommittees of
lays after receipt of the report, together with a report by
tnt containing any comments such head deems appropri-
f the transmission of the semiannual reports of each
,tigress, the head of each establishment shall make copies
.o the public upon request and at a reasonable cost.
ral shall report immediately to the head of the establish-
the Inspector General becomes aware of particularly
s, abuses, or deficiencies relating to the administration of
such establishment. The head of the establishment shall
.o the appropriate committees or subcommittees of Con-
lar days, together with a report by the head of the
ny comments such head deems appropriate.
ction shall be construed to authorize the public disclosure
hibited from disclosure by any other provision of law;
tired by Executive order to be protected from disclosure in
1 defense of national security or in the conduct of foreign
going criminal investigation.
ragraph (1XC), any report 'under this section may be
form which includes information with respect to a part of
ligation if such information has been included in a public
on or in any other provision of this Act shall be construed
a withholding of information from the Congress, or from
mittee thereof.
IStle XI, ? 1117(c), Sept. 8, 1982, 96 Stat. 752.)
). Pub.L. 97-252 purpose Legislative
of P b, L. 95-452, legislative 11978 U.S. Code
Cong. and Adm. News, p. 2676.
193 INSPECTOR GENERAL ACT ? 6
Note I
6. uthor ty of Inspector General; Information and assistance from Federal
agencies; unreasonable refusal; office space and equipment
(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) to have access to all records. reports, audits, reviews, documents, papers,
recommendations, or o r ma nal available to the applicable establishment
which relate to programs and operations with respect to which that Inspector
General has responsibilities under this Act;
(2) to relating to the administration of
the programs and operations of the applicable establishment as are, in the
judgment of the Inspector General, necessary or desirable;
(3) to request such information or assistance as may be necessary for
carrying out the duties and responsibilities provided by this Act from any
Fe dI ernmen a ency or unit thereof;
(4) t ~reaui it~tul~en , he p uction of all information, documents,
s, answers, recor s, accounts, papers, and other data and documentary
report
evidence necessary in the performance of the functions assigned by this Act,
E 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;
(5) Direct and prompt access to the he of the establishment involved
when necessary or any p mtng a performance of functions and
responsibilities under this Act;
(6) tQj&IPCt anooint, and ems such officers and employees as may be
necessary for car-rying ou a uric ions, powers, and duties of the Office
subject to the provisions of Title 5, United States Code, governing appointments
in the competitive service, and the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General Schedule pay rates;
(7) to obtain services as authorized by section 3109 of Title 5, United States
Code, at daily rates not to exceed the equivalent rate prescribed for grade GS-18
of the General Schedule by section 5332 of Title 5, United States Code; and
(8) to the extent and in such amounts as may be provided in advance by
appropriations Acts, to enter into contracts and other arrangements for audits,
studies, analyses, and other services with public agencies and with private
persons, and to make such payments as may be necessary to carry out the
provisions of this Act.
(b)(1) Upon request of an Inspector General for information or assistance under
subsection (a)(3), the head of any Federal agency involved shall, insofar as is
practicable and not in contravention of any existing statutory restriction or regula-
tion of the Federal agency from which the information is requested, furnish to such
Inspector General, or to an authorized designee, such information or assistance.
(2) Whenever information or assistance requested under subsection (aXI) or (ax3)
is, in the judgment of an Inspector General, unreasonably refused or not provided,
the Inspector General shall report the circumstances to the head of the establish-
ent involved without delay.
(c) Each head of an establishment shall provide the Office within such establish-
ment with appropriate and adequate office space at central and field office locations
of such establishment, together with such equipment, office supplies, and communi-
cations facilities and services as may be necessary for the operation of such offices,
and shall provide necessary maintenance services for such offices and the equipment
and facilities located therein.
Legislative History. For legislative history and sought evidence pertaining to defense contractor's
purpose of Pub.L. 95-452, see 1978 U.S. Code audits, at request of Defense Contract Audit
Cong. and Adm. News, p. 2676. Agency so long as he did so in furtherance of
purpose within his statutory authority and exer-
cised independent judgment in deciding to issue
Notes of Decisions subpoena. U.S. v. Westinghouse Elec., Corp.,
1. Subpoena powers C.A.3 (Pa.) 1986, 788 F.2d 164. .
Inspector General of Department of Defense Inspector General could inspect government
had statutory authority to issue subpoena, which contractor's business records that had been sub-
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Note I
pocnaed for grand jury investigation, notwith-
standing'that he had recommended that investiga-
tion, where Inspector General had subpoenaed
those records prior to referring matter to Justice
Department, criminal investigation had been com-
peted and prosecution bad been declined, and
inspection was critical to Inspector General's In-
vestigation. In re Grand Jury Matter, E.D.Pa.
1986, 640 F.Supp. 63.
Likelihood or imminence of criminal proceed-
ings did not rnmder enforcement of a related ad-
ministrative subpoena impermissible and did not,
therefore, preclude enforcement of a subpoena
duces tecum sought by the Inspector General of
the General Services Administration for certain
tax and related business records of taxpayers in
connection with an investigation of payoffs and
TITLE 6--APPENDIX 3 194
other fraudulent practices where the agency in
question had not itself made a formal recommen-
dation to the Justice Department to prosecute,
and the summons or subpoena had a civil purpose.
U.S. v. Art Metal-U.S.A., Inc. D.C.NJ.1980. 484
F.Supp. 884.
Acquisition of the tax returns and related doc-
uments of a government contractor pursuant to an
investigation of fraud is within the scope of the
subpoena powers of the Inspector Gakral. Id.
Tax and related business records of taxpayers
were not beyond the scope of the subpoena lower
of the Inspector General of the General Services
Administration when be sought to discover same
in connection with an investigation of payoffs and
other fraudulent practices. Id.
? 7. Complaints by employees; disclosure of identity; reprisals
(a) The Inspector General may receive and investigate complaints or information
from an employee of the establishment concerning the possible existence of an
activity constituting a violation of law, rules, or regulations, or mismanagement,
gross waste of funds, abuse of authority or a substantial and specific danger to the
public health and safety.
(b) The Inspector General shall not, after receipt of a complaint or information
from an employee, disclose the identity of the employee without the consent of the
employee, unless the Inspector General determines such disclosure is unavoidable
during the course of the investigation.
complaint or disclosing information to an Inspector General, unless the complaint
willful disregard for its truth or falsity.
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676.
? 8. Additional provisions with respect to the Inspector General of the Depart-
ment of Defense
(a) No member of the Armed Forces, active or reserve, shall be appointed
Inspector General of the Department of Defense.
t (b)(1) Notwithstanding the last two sentences of section 3(a), r
/ General shall direction and -p . tral -f
E2! , which
ense res to a 10 of sub 5
(B) intelligence matters;
(C) counterintelligence matters;
(D) ongoing criminal investigations by other administrative units of the
Department of Defense related to national security; or
(E) other matters the disclosure of which would constitute a serious threat to
national security.
(2) With respect to the information described in paragraph (1) the Secretary of
Defense may prohibit the Inspector General from initiating, carrying out, or complet-
ing any audit or. investigation, or from issuing any subpoena, after the Inspector
General has decided to initiate, carry out or complete such audit or investigation or
to issue such subpoena, if the Secretary determines that such prohibition is neces?
sarv to >} MW=Ah national corvritt intprestc of the llntta~t Sta tnc,
(3) If the Secretary of Defense exercises any power under paragraph (1) or (2),
the Inspector General shall submit a statement concerning such exercise within
thirty d
Senate,
House i
the Cor
(4) T
paragra
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 stion, notwith-
I that invesliga-
ad subpoenaed
otter to Justice
had been com-
declined, and
it General's in-
latter. ED.Pa.
minal proceed-
if a related ad-
Je and did not.
of a subpoena
nor General of
ion for certain
of taxpayers in
of payoffs and
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TITLE 5-APPENDIX 3 194
other fraudulent practices where the agency in
question had not itself made a formal recommen-
dation to the Justice Department to prosecute,
and the summons or subpoena had a civil purpose.
U.S. v. Art Metal-U.S.A., Inc. D.C.NJ.1980, 494
F.Supp. 884.
Acquisition of the tax returns and related doc-
uments of a government contractor pursuant to an
investigation of fraud is within the scope of the
subpoena powers of the Inspector General. Id.
Tax and related business records of taxpayers
were not beyond the scope of the subpoena power
of the Inspector General of the General Services
Administration when he sought to discover same
in connection with an investigation of payoffs and
other fraudulent practices. Id.
yees; disclosure of Identity; reprisals
I may receive and investigate complaints or information
establishment concerning the possible existence of an
ition of law, rules, or regulations, or mismanagement,
of authority or a substantial and specific danger to the
sl shall not, after receipt of a complaint or information
the identity of the employee without the consent of the
actor General determines such disclosure is unavoidable
vestigation.
is authority to take, direct others to take, recommend, or
ion, shall not, with respect to such authority, take or
Dn against any employee as a reprisal for making a
ormation to an Inspector General, unless the complaint
in disclosed with the knowledge that it was false or with
th or falsity.
stive history and
1978 U.S. Code
a with respect to the Inspector General of the Depart-
Armed Forces, active or reserve, shall be appointed
Department of Defense.
the last two sentences of section 3(a), the Inspector
e authority, direction, and control of the Secretary of
lits or investigations, or the issuance of subpoenas, which
on concerning-
Tonal plans;
tern;
ice matters;
sI investigations by other administrative units of the
e related to national security; or
e disclosure of which would constitute a serious threat to
information described in paragraph (1) the Secretary of
nspector General from initiating, carrying out, or complet-
tion, or from issuing any subpoena, after the Inspector
late, carry out or complete such audit or investigation or
the Secretary determines that such prohibition is neces-
ial security interests of the United States.
Defense exercises any power under paragraph (1) or (2),
ill submit a statement concerning such exercise within
thirty days to the Committees on Armed Services and Governmental Affairs of the
Senate and the Committees on Armed Services and Government Operations of the
House of Representatives and to other appropriate committees or subcommittees of
the Congress.
(4) The Secretary shall, within thirty days after submission of a statement under
paragraph (3), transmit a statement of the reasons for the exercise of power under
paragraph (1) or (2) to the Committees on Armed Services and Governmental Affairs
of the Senate and the Committees on Armed Services and Government Operations of
the House of Representatives and to other appropriate committees or subcommit-
tees.
(e) In addition to the other duties and responsibilities specified in this Act, the
Inspector General of the Department of Defense shall-
(1) be the principal adviser to the Secretary of Defense for matters relating to
the prevention and detection of fraud, waste, and abuse in the programs and
operations of the Department;
(2) initiate, conduct, and supervise such audits and investigations in the
Department of Defense (including the military departments) as the Inspector
General considers appropriate;
(3) provide policy direction for audits and investigations relating to fraud,
waste, and abuse and program effectiveness;
(4) investigate fraud, waste, and abuse uncovered as a result of other
contract and internal audits, as the Inspector General considers appropriate;
(5) develop policy, monitor and evaluate program performance, and provide
guidance with respect to all Department activities relating to criminal investiga-
tion programs;
(6) monitor and evaluate the adherence of Department auditors to internal
audit, contract audit, and internal review principles, policies, and procedures;
(7) develop policy, evaluate program performance, and monitor actions taken
by all components of the Department in response to contract audits, internal
audits, internal review reports, and audits conducted by the Comptroller General
of the United States;
(8) request assistance as needed from other audit, inspection, and investiga-
tive units of the Department of Defense (including military departments); and
(9) give particular regard to the activities of the internal audit, inspection, and
investigative units of the military departments with a view toward avoiding
duplication and insuring effective coordination and cooperation.
(d) Notwithstanding section 4(d), the Inspector General of the Department of
Defense shall expeditiously report suspected or alleged violations of chapter 47 of
title 10, United States Code (Uniform Code of Military Justice), to the Secretary of
the military department concerned or the Secretary of Defense.
(e) For the purposes of section 7, a member of the Armed Forces shall be deemed
to be an employee of the Department of Defense.
(0(1) Each semiannual report prepared by the Inspector General of the Depart-
ment of Defense under section 5(a) shall include information concerning the numbers
and types of contract audits conducted by the Department during the reporting
period. Each such report shall be transmitted by the Secretary of Defense to the
Committees on Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the House of Repre-
sentatives and to other appropriate committees or subcommittees of the Congress.
(2) Any report required to be transmitted by the Secretary of Defense to the
appropriate committees or subcommittees of the Congress under section 5(d) shall
also be transmitted, within the seven-day period specified in such section, to the
Committees on Armed Services and Governmental Affairs of the Senate and the
Committees on Armed Services and Government Operations of the House of Repre-
sentatives. -
(g) The provisions of section 1385 of title 18, United States Code, shall not apply
to audits and investigations conducted by, under the direction of, or at the request of
the Inspector General of the Department of Defense to carry out the purposes of
this Act.
(As amended Pub.L. 97-252, Title XI, ? 1117(b), Sept. 8, 1982, 96 Stat. 751.)
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1952 Amendment. Pub.L. 97-252 amended
section generally, substituting additional provi-
sions relating to the inspector General of the
Department of Defense for provisions relating to
semiannual reports of Secretary of Defense on
audit, investigative, and inspection units of De-
fense Department, availability of such reports to
the public, exclusion of national 'security material,
delegation of the Secretary's duties, submittal of
proposed legislation, the establishment of a task
force to study operation of audit, investigative and
inspection units, membership in the task force,
and the submission of a comprehensive report by
the task force to the Secretary of Defense and
Director of office of Management and Budget.
who were to submit a final report to Congress not
later than April 1, 1980.
Legislative History. For legislative history and
purpose of Pub.L. 95452. we 1978 U.S. Code
Cong. and Adm. News, p. 2676.
TITLE $-APPENDIX 3 196
1. Subpoenas
Inspector General of the Department of De-
fense was entitled to enforcement of an adminis-
trative subpoena seeking evidence pertaining to a
defense contractor's internal audits, despite de-
fense contractor's contentions that subpoena was
improperly issued on behalf of the Defense Con-
tract Audit Agency to coerce settlement of a
related administrative dispute, that scope and sub-
ject of subpoena were too broad. and that compli-
ance would be unduly burdensome. U.S. v. West.
inghouse Elec. Corp., D.C.Pa.1985, 615 F.Supp.
1163.
? SA. Special provisions relating to the Agency for International Development
(a) In addition to the other duties and responsibilities specified in this Act, the
Inspector General of the Agency for International Development-
(1) shall supervise, direct, and control all security activities relating to the
programs and operations of that Agency, subject to the supervision of the
Administrator of that Agency; and
(2) to the extent requested by the Director of the United States International
Development Cooperation Agency (after consultation with the Administrator of
the Agency for International Development), shall supervise, direct, and control
all audit, investigative, and security activities relating to programs and opera-
tions within the United States International Development Cooperation Agency.
(b) In addition to the Assistant Inspector Generals provided for in section 3(d) of
this Act, the Inspector General of the Agency for International Development shall, in
accordance with applicable laws and regulations governing the civil service, appoint
an Assistant Inspector General for Security who shall have the responsibility for
supervising the performance of security activities relating to programs and opera-
tions of the Agency for International Development.
(c) The semiannual reports required to be submitted to the Administrator of the
Agency for International Development pursuant to section 5(b) of this Act shall also
be submitted to the Director of the United States International Development
Cooperation Agency.
(d) In addition to the officers and employees provided for in section 6(aX6) of this
Act, members of the Foreign Service may, at the request of the Inspector General of
the Agency for International Development, be assigned as employees of the Inspec-
tor General. Members of the Foreign Service so assigned shall be responsible solely
to the Inspector General, and the Inspector General (or his or her designee) shall
prepare the performance evaluation reports for such members.
(4) In establishing and staffing field offices pursuant to section 6(c) of this Act,
the Administrator of the Agency for International Development shall not be bound
by overseas personnel ceilings established under the Monitoring Overseas Direct
Employment policy.
(f) The reference in section 7(a) of this Act to an employee of the establishment.
shall, with respect to the-Inspector General of the Agency for International Develop-
ment, be construed to include an employee of or under the United States Internation-
al Development Cooperation Agency.
(g) The Inspector General of the Agency for International Development shall be in
addition to the officers provided for in section 624(a) of the Foreign Assistance Act
of 1961 [22 U.S.C.A. ? 2384(a) ].
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(6)_
indnd( Foreig
Ceder
An of
87-195,
Pan It
dusifts
seq) c3'
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7-252 amended
dditional provi-
General of the
sions relating to
of Defense on
on units of De-
such reports to
security material,
ies, submittal of
hment of a task
investigative and
the task force,
pensive report by
of Defense and
,ent and Budget,
t to Congress not
dative history and
1978 U.S. Code
TITLE &.-APPENDIX 3 196
1. Subpoenas
Inspector General of the Department of De-
fense was entitled to enforcement of an adminis-
trative subpoena seeking evidence pertaining to a
defense contractor's internal audits, despite de-
fense contractor's contentions that subpoena was
improperly issued on behalf of the Defense Con-
tract Audit Agency to coerce settlement of a
related administrative dispute, that scope and sub
jest of subpoena were too broad, and that compli-
ance would be unduly burden-at. U.S. v. West-
inghouse Elec. Corp., D.C.Pa1985. 615 F.Supp.
1163.
relating to the Agency for International Development
tther duties and responsibilities specified in this Act, the
Agency for International Development-
direct, and control all security activities relating to the
tions of that Agency, subject to the supervision of the
Agency; and
!quested by the Director of the United States International
ition Agency (after consultation with the Administrator of
national Development), shall supervise, direct, and control
'e, and security activities relating to programs and opera-
ed States International Development Cooperation Agency.
Lssistant Inspector Generals provided for in section 3(d) of
neral of the Agency for International Development shall, in
le laws and regulations governing the civil service, appoint
3eneral for Security who shall have the responsibility for
trice of security activities relating to programs and opera-
International Development.
ports required to be submitted to the Administrator of the
Development pursuant to section 5(b) of this Act shall also
irector of the United States International Development
officers and employees provided for in section 6(aX6) of this
eign Service may, at the request of the Inspector General of
ional Development, be assigned as employees of the Inspec-
1 the Foreign Service so assigned shall be responsible solely
.1, and the Inspector General (or his or her designee) shall
e evaluation reports for such members.
d staffing field offices pursuant to section 6(c) of this Act,
e Agency for International Development shall not be bound
ceilings established under the Monitoring Overseas Direct
;ection 7(a) of this Act to an employee of the establishment
e'Inspector General of the Agency for International Develop-
ielude an employee of or under the United States Internation-
ation Agency.
neral of the Agency for International Development shall be in
provided for in section 624(a) of the Foreign Assistance Act
2384(a) ].
197 INSPECTOR GENERAL ACT
(h) As used in this Act, the term "Agency for International Development"
includes any successor agency primarily responsible for administering part I of the
Foreign Assistance Act of 1961 [22 U.S.C.A. 12151 et seq.].
(Added Pub.L 97-118, Title VII, ? 705(aX3), Dec. 29, 1981,.95 Stat. 1644.)
Refereaees to Tat. The Foreign Assistance and Intercourse. For complete classification of
Act of 1%1, referred to in subset. (h). is Pub.L this Act to the Code, see Short Title note set out
87-195, Sept. 4, 1%1, 75 Stat. 424, as amended. under section 2151 of Title 22 and Tables volume.
Part I of the Foreign Assistance Act of 1%1 is Legislative History. For legislative history and
classified generally to subchapter I (? 2151 et purpose of Pub.L. 97-113, we 1981 U.S. Code
seq.) of chapter 32 of Title 22, Foreign Relations Cong. and Adm. News, p. 2404.
9, Transfer of functions
(a) There shall be transferred-
(1) to the Office of Inspector General-
(A) of the Department of Agriculture, the offices of that department
referred to as the "Office of Investigation" and the "Office of Audit";
(B) of the Department of Commerce, the offices of that department
referred to as the "Office of Audits" and the "Investigations and Inspec-
tions Staff" and that portion of the office referred to as the "Office of
Investigations and Security" which has responsibility for investigation of
alleged criminal violations and program abuse;
(C) of the Department of Defense, the offices of that department re-
ferred to as the "Defense Audit Service" and the "Office of Inspector
General, Defense Logistics Agency", and that portion of the office of that
department referred to as the "Defense Investigative Service" which has
responsibility for the investigation of alleged criminal violations;
(D) of the Department of Education, all functions of the Inspector
General of Health, Education, and Welfare or of the Office of Inspector
General of Health, Education, and Welfare relating to functions transferred
by section 301 of the Department of Education Organization Act [20
U.S.C.A. ? 3441];
(E) of the Department of Housing and Urban Development, the office of
that department referred to as the "Office of Inspector General";
(F) of the Department of the Interior, the office of that department
referred to as the "Office of Audit and Investigation";
(G) of the Department' of labor, the office of that department referred to
as the "Office of Special Investigations";
(H) of the Department of Transportation, the offices of that department
referred to as the "Office of Investigations and Security" and the "Office of
Audit" of the Department, the "Offices, of Investigations and Security,
Federal Aviation Administration", and "External Audit, Divisions, Federal
Aviation Administration", the "Investigations Division and the External
Audit Division of the Office of Program Review and Investigation, Federal
Highway Administration", and the "Office of Program Audits, Urban Mass
Transportation Administration ;
(I) of the Community Services Administration, the offices of that agency
referred to as the "Inspections Division", the "External Audit Division",
and the "Internal Audit Division";
(J) of the Environmental Protection Agency, the offices of that agency
referred to as the "Office of Audit" and the "Security and Inspection
Division";
(K) ,of the General Services Administration, the offices of that agency
referred to as the "Office of Audits" and the "Office of Investigations";
(L) of the National Aeronautics and Space Administration, the offices of
that agency referred to as the "Management Audit Office" and the "Office
of Inspections and Security";
(M) of the Small Business Administration, the office of that agency
referred to as the "Office of Audits and Investigations"; and
(N) of the Veterans' Administration, the offices of that agency referred
to as the "Office of Audits" and the "Office of Investigations"; and
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TITLE 6-APPENDIX 3 198
(2) such other offices or agencies, or functions, powers, or duties thereof, as
the head of the establishment involved may determine are properly related to
the functions of the Office and would, if so transferred, further the purposes of
this Act,
except that there shall not be transferred to an Inspector General under paragraph
(2) program operating responsibilities.
(b) The personnel, assets, liabilities, contracts, property, records, and unexpended
balances of appropriations, authorizations, allocations, and other funds employed,
held, used, arising from, available or to be made available, of any office or agency
the functions, powers, and duties of which are transferred under subsection (a) are
hereby transferred to the applicable Office of Inspector General.
(c) Personnel transferred pursuant to subsection (b) shall be transferred in
accordance with applicable laws and regulations relating to the transfer of functions
except that the classification and compensation of such personnel shall not be
reduced for one year after such transfer.
(d) In any case where all the functions, powers, and duties of any office or agency
are transferred pursuant to this subsection, such office or agency shall lapse. Any
person who, on the effective date of this Act (Oct. 1, 1978), held a position
compensated in accordance with the General Schedule, and who, without a break in
service, is appointed in an Office of Inspector General to a position having duties
comparable to those performed immediately preceding such appointment shall contin-
ue to be compensated in the new position at not less than the rate provided for the
previous position, for the duration of service in the new position.
(As amended Pub.L. 96-88, Title V, ? 508(n)(2), Oct. 17, 1979, 93 Stat. 694; Pub.L. 97-252, Title
XI, ? 1117(aX2), (3), Sept. 8, 1982, 96 Stat. 750.)
1982 Amendment. Subsec. (awl). Pub.L. Services, headed by a Director, was established in
97-252 added subpar. (C). Former subpars? (C) the Department of Health and Human Services by
to (M) redesignated (I)) to (N), respectively. ? section 676 of Pub.L. 97-35, which is classified to
1979 Amendment. Subsec. (awl). Pub.L. 42 U.S.C.A. ? 9905.
96-88 redesignated subpars. (C) to (L) us (D) to Transfer of Audit Personnel to Inspector Gen-
(M) and added a new subpar. (C). eral, Department of Defense. Section 1117(e) of
Effective Date of 1979 Amendment Amend- Pub. L. 97-252 -in the
ment by Pub.L. 96-88, effective May 4, 1980, with pen
specified exceptions, see section 601 of Pub.L. General of the Department of Defense, pursuant
9648, set out as an Effective Date note under to the amendments made by subsection (a) of this
section 3401 of Title 20, Education. section to sections 2(1), 9(aXl), and 11(1) of this
Community Services Administration. The Act), the Secretary of Defense shall transfer to the
Community Services Administration, which was Office of Inspector General of the Department of
established by section 601 of the Economic Op- Defense not less than one hundred additional
portunity Act of 1964, as amended (42 U.S.C.A. audit positions. The Inspector General of the
Department of Defense shall 611 such positions
? un was when the Economic O0? with persons trained to perform contract audits."
poetrtunit ity Act o of 19terminated 644, , Pub.L. 86 52, ?Aag. 20,
of 9
1964, 78 Stat. 508, as amended, was repealed, Legislative History. For legislative history and
except for Titles VIII and'X, effective Oct. 1, purpose of Pub.L. 95-452, see 1978 U.S. Code
1981, by section 683(a) of Pub. L. 97-35, Title VI, Cong. and Adm. News, p. 2676: See, also, Pub.L.
Aug. 13, 1981, 95 Stat. 519, which is classified to 96-88, 1979 U.S. Code Cong. and Adm. News, p.
42 U.S.C.A. ? 9912(a). An Office of Community 1514. / .
? 10. Conforming and technical amendments
[Section amended sections 5315 and 5316 of Title 5, Government Organization and
Employees, and section 3522 of Title 42, The Public Health and Welfare; which
amendments have been executed to text.]
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676.
11. Definitions.
As used in this Act-
(1) the term "head of the establishment" means the Secretary of Agriculture,
Commerce, Defense, Education, Housing and Urban Development, the Interior,
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of
a
(As am
Yale Vl
8, 1982
99-11".
1986
412(a'
United
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 Sanitized PR _ 1; '
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v.
TITLE 5-APPENDIX 8 198
es or agencies, or functions, powers, or duties thereof, as
,lishment involved may determine are properly related to
office and would, if so transferred, further the purposes of
t be transferred to an Inspector General under paragraph
ponsibilities.
ta, liabilities, contracts, property, records, and unexpended
a, authorizations, allocations, and other funds employed,
available or to be made available, of any office or agency
d duties of which are transferred under subsection (a) are
applicable Office of Inspector General.
red pursuant to subsection (b) shall, be transferred in
e laws and regulations relating to the transfer of functions
ation and compensation of such personnel shall not be
tr such transfer.
ill the functions, powers, and duties of any office or agency
to this subsection, such office or agency shall lapse. Any
ective date of -this Act [Oct. 1, 1978], held a position
ce with the General Schedule, and who, without a break in
in Office of Inspector General to a position having duties
)rmed immediately preceding such appointment shall contin-
the new position at not less than the rate provided for the
duration of service in the new position.
title V, ? 508(nX2), Oct_ 17, 1979, 93 Stat. 694; Pub.L. 97-252, Title
1982, 96 Stat. 750.)
c. (sXl)? Pub.L. Services, headed by a Director, was established in
ormer subpars. (C) the Department of Health and Human Services by
1), respectively. section 676 of Pub.L. 97-35, which is classified to
c. (aXI)? Pub.L. 42 U.S.C.A. ? 9905.
C) to (L) as (D) to Transfer of Audit Personnel to Inspector Gen-
(C). oral, Department of Defense. Section 1117(e) of
sendment. Amend- Pub.L. 97-252 provided that: "In addition to the
,e May 4, 1980, with positions transferred to the Office of the Inspector
tion 601 of Pub.L.' General of the Department of Defense, pursuant
Ye Date note under to the amendments made by subsection (a) of this
cation. section [to sections 2(1), 9(a)(1), and l l(1) of this
iminist ation. The AMT, the Secretary of Defense shall transfer to the
which was Office of Inspector General of the Department of
st t ion, Defense not less than one hundred additional
the S .A. audit positions. The Inspector General of the
tenhed o U Unomis c Op. Department of Defense shall fill such positions
n the Economic Op *oil to perform contract audits."
ram
L. 88-452, Aug. 20,
ceded. was repealed,
X, effective Oct. 1,
,b.L. 97-35. Title VI,
which is classified to
Office of Community
with persons
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cons. and Adm. News, p. 2676. See, also. Pub-L.
96-88, 1979 U.S. Code Cong. and Adm. News, p.
1514. ' .
199 INSPEC'T'OR GENERAL ACT
Labor, State, or Transportation or the Administrator of the Agency for Interna-
tional Development, Community Services, Environmental Protection, General
Services, National Aeronautics and Space, Small Business, or Veterans' Affairs,
or the Director of the United States Information Agency I as the case may be;
(2) the term "establishment" means the Department of Agriculture, Com-
merce, Defense, Education, Housing and Urban Development, the Interior,
Labor, State, or Transportation or..the Agency for International Development,
the Community Services Administration, the Environmental Protection Agency,
the General Services Administration, the, National Aeronautics and Space Ad-
ministration, the Small Business Administration, the United States Information
Agency or the Veterans' Administration, as the case may be;
(3) the term "Inspector General" means the Inspector General of an establish.
ment;
(4) the term "Office" means the Office of Inspector General of an establish-
ment; and
(5) the term "Federal agency" means an agency as defined in section 552(e)
of Title 5 (including an establishment as defined in paragraph (2) ), United States
Code, but shall not be construed to include the General Accounting Office.
(As amended Pub.L. 96-88, Title V, ? 509(nx3), (4), Oct. 17, 1979, 93 Stat. 695; Pub.L. 97-113,
Title VII, ? 705(aX2), Dec. 29, 1981, 95 Stat. 1544; Pub.L. 97-252, Title XI, ? 1117(ax4), (5), Sept.
8, 1982, 96 Stat. 760; Pub.L. 99-93, Title I, ? 150(aX2), Aug. 16, 1985, 99 Stat. 427; Pub.L.
99-399, Title IV, ? 412(aX2), Aug. 27, 1986, 100 Stat. 867.)
I So in original. Probably should be followed by a comma.
1986 Amendment. Par. (1). Pub.L. 99-399, specified exceptions, ace section 601 of Pub.L.
? 412(sX2)(A), inserted "or the Director of the 96-88; set out as an Effective Date note under
United States Information Agency" before "as the section 3401 of Title 20, Education.
Par. (2). Pub.L. 99-399,1 412(a)(2)(B), insert.
ed "the United States Information Agency'. before
..or the Veterans' Administration".
1985 Amendment. Pan. (1), (2). Pub.L.
99-93 inserted "State," after "Labor,".
1982 Amendment. Par. (1). Pub.L. 97-252,
? 1117(a)(4), inserted "Defense," following
"Commerce,".
Par. (2). Pub.L. 97-252, ? 1117(aX5), inserted
"Defense," following "Commerce,".
Community Services Administration. The
Community Services Administration, which was
established by section 601 of the Economic Op-
portunity Act of 1964, as amended (42 U.S.C.A.
? 2941), was terminated when the Economic Op-
portunity Act of 1964, Pub.L. 88-452, Aug. 20,
1964, 78 Stat. 508, as amended, was repealed,
except for Titles VIII and X, effective Oct. 1,
1981, by section 683(a) of Pub.L. 97-35, Title VI.
Aug. 13, 1981, 95 Stat. 519, which is classified to
42 U.S.C.A. ? 9912(a). An Office of Community
1981 Amendment. Par. (1). Pub.L. 97-113, Services, headed by a Director, was established in
? 705(aX2XA), inserted "the Agency for Interne- the Department of Health and Human Services by
tional Development," after "Administrator of". section 676 of Pub.L. 97-35, which is classified to
'Par. (2). Pub. L. 97-113, ? 705(aX2)(B), insert-
ed "the Agency for International Development,"
after "Transportation or".
1979 Amendment. Par. (1). Pub.L. 96-88,
? 508(n)(3), inserted "Education," following
Par. (2). Pub.L. 96-88, ? 508(nX4), inserted
"Education," following "Commerce,".
Effective Date of 1979 Amendment. Amend- 99-399, 1986 U.S.Code Cong. and Adm.News, p.
meet by Pub.L. 96-88, effective May 4, 1980, with 1865.
d technical amendments
:tions 5315 and 5316 of Title 5, Government Organization and
n 3522 of Title 42, The Public Health and Welfare, which
a executed to text.]
legislative history and
see 1978 U.S. Code
1676.-
!ad of the establishment" means the Secretary of Agriculture,
se, Education, Housing and Urban Development, the Interior,
The provisions of this Act and the amendments made by this Act [see section 10 of
this Act] shall take effect October 1, 1978.
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676.
42 U.S.C.A. ? 9905.
Legislative History. For legislative history and
purpose of Pub.L. 95-452, see 1978 U.S. Code
Cong. and Adm. News, p. 2676. See, also. Pub.L.
96-88, 1979 U.S. Code Cong. and Adm. News, p.
1514; Pub.L.' 97-113, 1981 U.S. Code Cong. and
Adm. News, p. 2404; Pub.L. 99-93, 1985 U.S.
Code Cong. and Adm. News, p. 329; Pub.L.
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CONG,RESSIONAI. J EC(I)RU - SENATE October 27, 1981
By Mr. UIDEN (tor himself, Mr. JOIN'
MoNO. Mr. KENNEDY and Mr. IIATCII):
S. 1822. A bill to make certain amend-
ments to the Sentencing Reform Act of 1984
and to improve certain provisions rclating to
imposition and collection of criminal fine-s,
and for other purposes: placed on the calen-
dar.
By Mr. STAFFORD (by requesu:
S. 1823. A bill to amend title 23, United
States Code, to provide for the construction
of new toll highways and for other pur-
poses; to the Committee on Environment
and Public Works.
By Mr. CRANSTON:
S. 1824. A bill to amend the Federal Avia-
tion Act of 1958 to require that capacity.
IeveLs be established at certain airports: to
the Committee on Commerce. Science, and
Transportation.
By.Mr.,BYP.D (for Mr. CRANSTON (for
himself and Mr. D'AMATO)):
S.J. Res. 209. Joint resolution to provide
for the extension of a'rtain programs relat
rug to housing and community development..
and for other purposes; placed on tic calen-
dar.
SUBMISSION OF CONCURRENT
AND SENATE RESOLUTIONS
The following concurrent resolutions
and Senate resolutions were read, and
referred (or acted upon), as indicated:
By Mr. KENNEDY (for himself, Mr.
MtTZLNBAUM. Mr. HATCH, Ms. MIKUL-
SKI, Mr. PEU.. Mr. DOLE. Mr. DoDn,
Mr. GLENN, Mr. CRANSTON. Mr.
DURENRFRGER. Mr. L.1UTENREPG. Mr.
SIMON, Mr. MOYNIHAN. MI. CONRAD.
Mr. MATSUNACA, Mr. CHAFE. Mr.
KERRY. Mr. WEICKER. Mr. THUh-
MoND, Mr. BURDICK, Mr. DECONCINI,
Mr. LESIN. Mr. ADAMS. ]vtr. WARNER.
Mr. INOUYE. Mr. RIEC:.E. Mr. i3RAD-
LEY. Mr. BOND. Mr. MITCHELL. Mr.
PRCXDIIRE. Mr. DrxON. Air. STAFFORD.
Mr. NONN, Mr. DOMER.CI. Mr. GARN.
Mr. SHELBY. Mr. PRYoR. Mr.
D'AMATO. Mr. BENTSEN, and Mr. SAN-
FORD):
S. Res. 303. A resolution to commend the.
efforts and commitment of the organizers
and participants of "Justice For All Day,"
November 17. 1987: to the Committee. on the
Judiciary.
By Mr. LEAIIY: from t!:e Coramit.tec
on Agriculture. Nutrition. and For-
estry:
S. Res. 304. An original resolution to crease the amount allocated to the Comrnit.-
tce on Agriculture, Nutrition, and Forestry
by S. Res. 80 relating to committee funding
for fiscal year 1988: to the Committee on
Rules and Administration.
By Mr. BYRD (for himself and Mr.
DOLE h:
S. Res. 305. A resolution to direct the
Senate legal counsel to represent and to au-
thorize the production of documents by
Philip Q. Cohen in the case of Moreno
versus Small'Business Administration, et al.:
considered arid agreed to.
STATEMENTS ON INTRODUCED
BILLS AND JOINT RESOLUTIONS
By bdi c TER:
r, to ma e requirements
fc. le preparation, and transmittal to
the Congress; of Presidential findings
for certain intelligence operations: to
provide mandatory penalties: for de-
ceiving Congress;
Independent Inspector General Tor
the CIA:
to the Select Cununittee on
rte Ii(ence.
NATION %L SECURITY R E4'ORM At
Mr. SPECTER. Mr. President, hear-
ings before the Senate Intelligence
Committee and joint hearings before
the Select Senate and House Commit-
i.c-es on the Iran/Cont.ra matter have
demonstrated the need for significant
action in order to establish the appro-
priate role for congressional oversight
pursuant to the checks and balances
contemplated by the U.S. ConsLil.u-
Lion. Notwithstanding any action
which may be taken by the President
by way of Executive order on this
issue, legislative change is necessary to
impose statutory requirements govern-
ing this or future administrations
v, here any such Executive orders
might be countermanded.
This bill has four goals:
First, to encourage timely consulta-
tirin with key Members of Congress to.
obtain the benefit of their insights to
avoid future blunders like the transac-
tion with Iran on arms for hostages;
Second, to provide for effective con-
gressional oversight by specific statu-
tory requirements establishing precise
time limits for notice where the Presi-
dont decides not to consult in advance;
Third, to establish mandatory penal-
ties where executive branch officials
wake false statements to congressional
committees; and
Fourth, to add an Inspector General
for the Central Intelligence Agency to
help assure lawful internal compliance
on matters which do not come within
the purview of congressional over-
sht.
SECTION 2
Notwithstanding the obvious failure
of the executive branch to provide req-
uisite information to Congress under
the provisions of existing statutes,
some have argued that there was com-
piiance because of the vagaries of cur-
rent law. In order to prevent, a repeti-
tion of such conduct, the National Se-
curity Act of 1947 (50 U.S.C. 413) and
section 662 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2422), known as
the Hughes-Ryan amendment, are
made more specific by this bill. Exist-
ing law prohibits the expenditure of
fin-ids by the Central Intelligence
Agency for covert activities "unless
arid until the President finds that
each such operation is important to
the national security of the United
States.- Efforts have been made to
justify the CIA's action in the Iran/
Contra matter by contentions that an
oral finding was sufficient and that a
later written finding could retroactive-
ly justify earlier covert action.
This bill unequivocally requires that
the finding be in writing and that the
President shall give notice and a copy
of any finding to the House and
Senate Intelligence Committees con-
temporaneously with the-finding, but
in no event later than 24 hours after it.
is made. A limited exception is provid-
ed for an oral finding in situations
where the President deems that inhme-
diate action by the United States is re-
quired to.deal with the emergency sit-
untion affecting vital national Inter-
ests and time does not permit the
preparation of a, written finding. In
that event, the finding must be imme-
diately reduced to writing after Lhe'
action is orally approved, with the
written finding to be completed no
later than 24 hours after the making
of the oral finding.
Where an oral finding is used, there
is the additional requirement that the,
written finding shall include a state-
ment of the reasons of the President
for having first proceeded with an oral
finding. This bill further provides that
a finding shall be effective only with
respect to operations beginning after
the finding was made by the President
in order to, preclude any contention
that the finding may retroactively
cover prior CIA operations.
These statutory requirements leave
no room for doubt that no covert
action may be undertaken without
complying with the requirements of a
written finding and the requisite
notice, by any personnel of the execu-
Live branch or anyone acting on its
behalf including foreign governments
or any individual. This specific provi-
sion would preclude any future argu-
ment that the delivery of arms to Iran
was legally justified. after the fact, by
a retroactive finding or that other en-
tities or actors v.'ere not bound by the
same limitations affecting the CIA.
This bill further removes any possi-
ble ambiguity in section 501(b) of the
President's obligation to notify the
House and Senate Intelligence Com-
mittees of covert action. Section 501(b)
now provides: .
(b) The President shall fully inform chic
intelligence committees in a timely fashion
of intelligence operations in foreign coun-
tries, other than activities intended solely
for obtaining necessary intelligence, for
wiAich prior notice was not given under sub-
se-ction (a).and shall provide a statement of
the reasons for not giving prior notice.
The phrase "for which prior notice
was not given under subsection (a)"
carries the direct implication that the
House and Senate Intelligence Com-
mittees should have been "fully and
currently Informed" of covert ac.tivi-
tics which are covered by . section
501(b). It is obvious that the President
did not comply with section 501(b) to
inform the Intelligence Committees in
a "timely fashion" where some 14
months elapsed from the time of the
first covert action on the Iranian arms
sales to the time that information
reached the Intelligence Committees.
Yet, some have contended that the ex-
igencies of the situation excused the
President from giving earlier notice so
that requirements of a "timely fzsh-
ion" were observed.
'T'his bill removes any room for such
future arguments by requiring the
President to give notice to the Intelli-
gence Committees coat inpora.ncousiy
with any written or oral finding. I n
order to remove any conceivable an-.b'-
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October 27, 1987 CONGRESSIONAL RECORD -SENATE S 15191
gutty as to the meaning of "contempo- secr,oN 3 This bill further provides that
raneously," a time certain is added re- This bill further provides for a man- anyone who gives such false or decep-
quiring the information to be trans- datory sentence of imprisonment for tive information may recant and avoid
mitted no later than 24 hours after any officer or employee of the United possible criminal liability by correcting
the making of an oral or written find- States who provides false Information the record within 5 days. This 5-day
ing. Absent the experience of the to any committee or subcommittee of period should be ample time for re-
Iran/Contra matter, it would seem un- the Senate or House of Represents- thinking the issue and time to make
necessary to put a 24-hour limitation fives. No matter how rigorous or ex- the appropriate correction.
after the requirement of "contempora- acting statutory requirements may be,
neously," but the recent experience the oversight function of Congress sscr,oa 4
that a time certain be affixed so that cannot be accomplished if executive The Inspector en al Act of 1978,
no one can later claim that "contem- branch officials present false or mis- Public Law 95-452, established inde-
poraneously" means days, weeks. leading testimony to the Congress. pendent Presidentially-appointed and
months, or even years later. This is especially problemsome Senate confirmed IG's in 19 Federal
The requirement that the President where witnesses appear before the In- departments and agencies. The cre-
shall contemporaneously inform the telligence Committees in a secret ses- ation of these statutory IC's has im-
Intelligence Committees is intended to sion. Where evidence is provided in a proved the effectiveness of the Feder.
provide a procedure where the Intelli- public session, there is an opportunity al Government. The act also ensures
genre Committees might be consulted for others to learn of the false infor- that both the Congress and agency
in advance so that the te de would mation and to come forward with the heads are receiving independent as-
as-
in bent t t their thinking i would truth so that the congressional over. sessments of programs and operations
he have cthe of hose. The language o thinking committees can perform their for which they are accountable or
he so chose. keep the Intelligence of sec ioif on functions. That is not possible where have oversight responsibility. Howev-
501(a)(1) to executive officials appear in secret er. the CIA was not-included.
Committees "fully and currently in- and provide false information to the Currently, the Inspector General for
formed of all intelligence activities" Oversight Committees. Under those CIA is usually appointed internally.
suggests a design for congressional circumstances, the committees realisti- That process is not conductive to ob-
input. Even with such contemporane- cally have little or no opportunity to Jectivity.
ous information and the possibility of determine the truth. A prime example was the CIA's
congressional input, it would remain While false official statements to mining of the harbors of Nicaragua.
within the President's power to pro- such congressional committees are The CIA official with operational re-
ceed or not as he chooses. covered by section 1001 of the Crimi- sponsibility for that action was next
There is much to recommend the nal Code, (18 U.S.C. 1001). this kind of appointed to the position of Inspector
availability of the institutional experi- misconduct, either in secret or public General. While he disqualified himself
ence of the Senate and House Intelli- session, is so serious that it warrants a from the ensuring IG investigation of
gence Committees. Had there been a mandatory jail sentence. that activity, it is difficult to calculate
review by the Intelligence Committees While there has been experience the objectivity of that investigation by
of the sale of arms to Iran, it is likely with witnesses who return to the com- virtue of his presence.
that the policy would never have been mittee to apologize for prior testimo- The Intelligence Committee has had
implemented. Had members of the ny, such apologies fall far short of cor- access to some IG reports in past
Senate and House Intelligence Com- recting the enormous damage which years, but for the most part, it has not
mittees joined the Secretary of State has been done. Obviously, there is no exercised oversight over the int.elli-
and the Secretary of Defense and way to know how much false, decep- gence community's IC's. That has
others in discouraging Presidential Live, or misleading evidence has been been a responsibility of the Intelli-
action in selling arms to Iran , the presented in secret where the truthful gence Oversight Board. The Iran-
President might well have ceased and information has never come to the at- Contra investigations have raised seri-
desisted on his own. Had the President tention of the committees. This man- ous questions about the effectiveness
declined to terminate that disastrous datory jail sentence is intended to put of that body. The Tower Commission
policy, then the Congress might have members of the executive branch on found that (111-22): "Lieutenant Colo-
utilized its power to terminate funding notice that the matter is extremely se- nel North and Vice Admiral Poin-
through its appropriations powers, rious as reflected by the heavy penal- dexter received legal advice from the
thereby ending the sale of arms t , Y. President's Intelligence Oversight
Iran. It is obviously well within the ambit Board that the restriction on lethal as-
The President's obligations on con- for any witness who appears before a sistance to the Contras did not cover
gressional oversight are further limit- congressional committee to decline to the NSC staff." In addition, review of
g by nal ovens notce to the Inimit- answer any question until that witness Executive Order 12334, which estab-
has had an opportunity to reflect on lishes the Intelligence Oversight
gence Committees where the Presi- the question or to consult with his or Board, and the operations of the
dent determines that it is essential to her superior. Simply stated, it is un- Board itself reveal that the Board is
limit such disclosure to meet extraor- derstandable if a witness declines to not adequately staffed, that the qual-
dinary circumstances affecting the answer or asks for a delay, but it is in- ity of its legal counsel has been dem-
vital interests of the United States. In tolerable for false or deceptive answers onstrated to be less than thorough
that event, such notice is to be given to be made. The committee would and experienced, and, finally, that its
only to the chairman and ranking mi- doubtless consider not insisting on an effectiveness is not held in high regard
nority members of the Intelligence answer where some reason was ad- by the Intelligence Committees.
Committees, the Speaker and minority vanced for nondisclosure. Where any This bill would greatly increase the
leader of the House of Representatives witness chooses to decline to answer a independence and credibility of the
and the majority and minority leaders question, there is always an opportuni- CIA's Inspector General by making
of the Senate. That more limited dis- ty for further consideration by both the IG a permanent, statutory official
closure gives sufficient assurances of the witness and the committee, subject to appointment by the Presi-
preservation of secrecy. A valid argu- In any event, an enforceable legal dent and confirmation by the Senate
ment could be made that notice should obligation to answer does not arise as with limitations on grounds for dismis-
go only to the leadership of both a practical matter until citation for sal. To increase accountability to Con-
Houses In the interests of secrecy, but contempt of Congress is obtained and gress, semiannual and special reports
the greater familiarity of the chair- the court orders an answer. It is only by the Inspector General must be
man and vice-chairman of the Intelli- at this point that a witness is subject promptly submitted to the Intelli-
gence Committees warrants their to a sanction for contempt for failing gence Committees, as well as to the
being included. to answer. Director of the CIA.
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r
S15192
CONGRESSIONAL RECORD - SENATE October 27, 1987
Secrecy is provided for, as is subpoe-
na power. While the Director may halt
all audit. or investigation, he may do so
only if:
First, it concerns an ongoing oper-
ation;
Second, he finds it vital to national
security; and
Third, he reports to the Intelligence
Committees within 7 days on the rea-
sons.
The combined effect of an independ-
ent. IG, mandatory penalties for de-
cdaving Congress, and statutory re-
ouirements on notice to Congress on
covert action along with written find-
ings are therapeutic steps which
should be taken in light of our experi-
ence from the Iran/Contra hnatter.
After the droblems were publicly dis-
c'osed on the failure of the executive
L?r anch to notify the Intelligence Com-
mittees on the sale of arms to Iran,
t ;:ere was an exchange of correspond-
c?rrce between the President and the
&enate Intelligence Committee. The
President wrote to Chairman BOREN
I;:d Icttcr dated August 7, 198.7, ex-
pressing leis support for certain key
concepts recommended by the Senate
intelligence Committee. Paragraph 6
of the President's letter stated:
In all but the most exceptional circum-
s,anc''s, tin:e!y notification to Congrrss
:tntd?'r Section 501'b) of the National S:~curi-
I \? Act of 1947. a-s ar.\cnd^d. v: ill not be dc-
I:_yed beyond two working days of the initi-
ation of a special act\ ity.
In my judgment. where notice may
not he given even in ?'the most excep-
l:anal circumstances" the fandainen-
.ti re ,ttirement of notice is defeated
treatise it remains with the purview of
!.;(e President to deternli:re what con-
ttutes the "exceptional circum-
moos." Precise regttiren:ents are nec-
t ?;sar y as set forth in this propo.s""d
1 gislation.
y Mr. LAU ENBERG:
S. 1819. A bill to amend the National
I)ri%cr Registration Act of 1982 to
::;1st in the identification of operators
of aircraft who have driving problems
by permitting access to the National
Driver Register; to the Committee on
Commerce, Science and Transporta-
t;on.
rt1ENTIPiCA: ION OF AIRCRAFT OPERATORS WHO
HAVE DRIVING PROBLEMS
e Mr. L.AUTENBERG. Mr. Fresidttnt,
I rise today to introduce a bill aimed
,it closing a serious loophole in our
aviation safety network.
This bill would authorize individuals
to provide the Federal Aviation Ad-
ministration with access to the Nation-
al Driver Register [NDRI in reviewing
pilot applications for medical certifica-
tion. It would allow the FAA to use
t`tis information to verify information
provided by pilots, and to help evalu-
ate whet her the airman meets mini-
mum medical standards prescribed by
the FAA.
i he FAA would not be provided
access to information more than 3
years old. unless that. information per-
Lain to a revocation or suspension of a
drivers license that is still in effect.
The FAA would not be permitted to
use the information for purposes not
set out in statute.
In addition, the airman would be
provided the opportunity to review the
NDR information and comment on it
in writing. This would protect against
false identification of an applicant,
and give the applicant the opportunity
to provide any explanation for Infor-
mation in the NDR.
With enactment of this provision, it
is intended that the FAA will promul-
gate regulations to require authoriza-
tion of access to the NDR as a condi-
tion of the medical certification proc-
In order to legally fly, any pilot
mtist receive regular medical certifica-
tion. The majority of the exams are
performed by private physicians ap-
proved by the FAA.
There are several classes of certifica-
tion. First-class certification is for air-
line pilots, and must be renewed every
6 months. Second-class certification is
for commercial pilots, flight engineers,
and flight navigators. It is renewed an-
nually. Private pilots receive third-
class certification, which must be re-
newed every 24 months.
Currently, the FAA require, pilots
stoking certification to report drug or
alcohol problems, including drunk
driving convictions. This is a require-
ment too many do not comply with.
And the FAA does not know who those
people are. Therein lies the problem.
Although the majority of pilots tale
tits responsibility that. comes with
t itcir license s riously, there are those
brat don't. There are these who might
drink and fly. There arc those who
would not. comply with FAA's reporL-
leg reQuiremc-iis.
A report by DOT's inspector gcncral
in February of this year revraled that
this reporting system is faulty. There
are. 711,648 active airmen now certified
by the FAA. The inspector general
found that about 10.300 of these pilots
had their driving license suspended or
revoked for DWI convictions in the
last. 7 years.
However. 7,850 of the 10.300--of 76
percent-did not report this informa-
tion to the FAA.
These are the people--those who in-
tentionally do not comply with'Feder-
al requirements-whorn this bill would
specifically address.
Mr. President, let me cite a few ex-
amples of where the voluntary report-
ing system proved lacking.
In February 1986, a commercial
cargo pilot was killed when his plane
that time, his BAC was 0.26. From
1981 to 1984, he had seven DWI con-
victions, and had his drivers license re-
voked.
Yet, he could still fly. And the FAA
had no way of knowing about his
record.
The inspector general's investigation
turned up 262 first-class pilots with at
least 1 drunk driving conviction. They
Included a pilot who had two separate
DWI convictions, resulting in a 5-year
revocation of his drivers license., The
IG also found 29 second- and third-
class pilots who had 3 or more DWI
convictions since 1983. Combined, the
29 pilots had 94 DWI convictions in
that time. This included 1 third-class
pilot who had 3 convictions and had
his license suspended for 10 years.
Yet, they all could fly, and the FAA
had no way of checking into their
records.
Mr. President, this is a gap we need
to close. A driving record can indicate
a pattern of behavior. If someone has
a history of drunk driving convictions,
we have a right to think about wheth-
er we want to allow that person in the
cockpit of a plane.
The FAA already has the interest in
knowing. Its medical certification ap-
plication form asks for a great deal of
information about a pilot's back-
ground. Included on that form is an
inquiry about whether the applicant
ever had, or now has traffic or other
convictions.
But, under current law, the FAA
cannot verify the information the ap-
plicant provides. The FP-A should not
fly blind while sonic pilots fly drunk.
This bill would remove the obstacle
that prevents the FAA from confirm-
ing pilots' backgrounds.
This change has long been endorsed
by the National 'T'ransportation Safely
Board, and is supported by the Dc-
prLment of Transportation. I would
note, Mr. President, that similar provi-
Siol15 were included in the Rail Safety
Improvement Act, which I introduced
in April, and in S. 1539. the rail safety
legislation subsequently reported by
the Senate Commerce Committee.
I intend to offer this bill as an
amendment to the Airport and Airway
Capacity Expansion Act when it is
considered on the Senate floor. I urge
my colleagues to support this impor-
tant legislation.
I ask unanimous consent that the
text of this bill be printed in the
RECORD.
There being no objection, the bill
was ordered to be printed in the
as follows:
RECORD
,
crashed in Tennessee. 3 hours after
leaving Milwaukee. His blood alcohol S. 1819
content [BACI was found to be 0.158, Be it enacted by the Senate and Nora