---
kind: "diff"
citation: "H.R. 378"
bill: "115-hr-378"
heading: "Bonuses for Cost-Cutters Act of 2017"
from: "ih"
from_label: "Introduced in House"
to: "rh"
to_label: "Reported in House"
sections_amended: 1
sections_added: 0
sections_removed: 1
url: "https://uscodex.org/bills/115/hr/378/changes/rh"
---

# H.R. 378 — what changed

H.R. 378, Bonuses for Cost-Cutters Act of 2017 — 1 section amended and 1 removed between Introduced in House and Reported in House.

Edits are marked `<del>struck</del>` and `<ins>inserted</ins>`.

## Sec. 2 Cost savings enhancements

- (a) Definitions— Section 4511 of title 5, United States Code, is amended—
  - (1) in the section heading, by striking “Definition” and inserting “Definitions”; and
  - (2) in subsection (a)—
    - (A) by striking the period at the end and inserting “; and”;
    - (B) by striking “this subchapter, the term” and inserting the following: “this subchapter—
      - “(1) the term”
    - (C) by adding at the end the following:
      - “(2) the term <del>unnecessary </del><ins>wasteful </ins>expenses means amounts made available for salaries and expenses accounts, operations and maintenance accounts, or other equivalent accounts—
      - “(A) that are identified by an employee of the agency under section 4512(a) as <del>unnecessary;</del><ins>wasteful; and</ins>
      - “(B) that the Chief Financial Officer of the agency determines are not required for the purpose for which the amounts were made <del>available; and</del><ins>available.”</ins>
      - <del>“(C) the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available.”</del>
- (b) Authority— Section 4512 of title 5, United States Code, is amended—
  - (1) in subsection (a)—
    - (A) by inserting “The head of an agency may pay a cash award to any employee of such agency whose identification of <del>unnecessary </del><ins>wasteful </ins>expenses to the Chief Financial Officer of the agency has resulted in cost savings for the agency.” after the first sentence;
    - (B) in paragraph (1) by striking “$10,000” and inserting “$20,000”;
    - (C) in paragraph (2)—
      - (i) by inserting “Chief Financial Officer,” after “Inspector <del>General,”;</del><ins>General,” ;</ins>
      - (ii) by striking “employee designated under subsection (b)” and inserting “designated employee”; and
      - (iii) by inserting “or identification” after “disclosure”; and
    - (D) in the matter following paragraph (2)—
      - (i) by inserting “, Chief Financial Officer,” after “Inspector General”; and
      - (ii) by inserting “or identification” after “disclosure”;
  - (2) in subsection (b) by striking “awards permitted under this section” and inserting “awards for the disclosure of fraud, waste, or mismanagement under this section”; and
  - (3) by adding at the end the following:
    - “(c)
    - “(1) If the Chief Financial Officer of the agency determines that potential <del>unnecessary </del><ins>wasteful </ins>expenses identified by an employee meet the requirements of <del>subparagraphs (C) and (D) of </del>section <del>4511(a)(2), except as provided in subsection (d), </del><ins>4511(a)(2)(B), </ins>the head of the agency shall <del>transfer </del><ins>notify </ins>the <del>amount </del><ins>President for purposes </ins>of <ins>proposing </ins>the <del>unnecessary </del>expenses <del>or unnecessary budget authority from the applicable appropriations account to the general fund </del><ins>for rescission under title X </ins>of the <del>Treasury.</del><ins>Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.).</ins>
    - “(2) <del>Any amounts transferred under paragraph (1) shall be deposited in the Treasury and used for deficit reduction, except that in </del><ins>In </ins>the case of <del>a fiscal year </del><ins>an agency </ins>for which there is no <del>Federal budget deficit, such amounts </del><ins>Chief Financial Officer, the head of the agency </ins>shall <del>be used to reduce </del><ins>designate an agency employee who shall have </ins>the <del>Federal debt (in such manner as </del><ins>authority to make </ins>the <del>Secretary </del><ins>determinations for identification </ins>of <del>the Treasury considers appropriate).</del><ins>wasteful expenses under this section.</ins>
    - <del>“(3) In the case of an agency for which there is no Chief Financial Officer, the </del><ins>“(d) The </ins>head of <del>the agency shall designate an </del><ins>each </ins>agency <del>employee who </del>shall <del>have the authority to </del>make <ins>available, along with, and in </ins>the <del>determinations for identification </del><ins>same manner and form as, the provision </ins>of <del>unnecessary </del><ins>information required under section 1116 of title 31, information on disclosures of wasteful </ins>expenses under this <del>section.</del><ins>section, including—</ins>
    - <del>“(d)</del><ins>“(1) a description of each disclosure of possible wasteful expenses identified by an employee and determined by the agency to have merit; and</ins>
    - <del>“(1) The head of an agency may retain not more than 10 percent of amounts to be transferred to </del><ins>“(2) </ins>the <del>general fund </del><ins>number and amount </ins>of <ins>cash awards provided by </ins>the <del>Treasury </del><ins>agency </ins>under subsection <del>(c)(1).</del><ins>(a).</ins>
    - <del>“(2) Amounts retained by the head of an agency under paragraph (1) </del><ins>“(e) An individual </ins>may <del>be—</del><ins>not receive a cash award under this subchapter if the individual is—</ins>
    - <del>“(A) used for </del><ins>“(1) an officer or employee of </ins>the <del>purpose </del><ins>Office </ins>of <del>paying a cash award under subsection (a) to one or more employees who identified </del>the <del>unnecessary expenses; and</del><ins>Inspector General of an agency; or</ins>
    - <del>“(B) to the extent amounts remain after paying cash awards under subsection (a), transferred or reprogrammed </del><ins>“(2) ineligible </ins>for <del>use by the agency, in accordance with any limitation on such </del>a <del>transfer or reprogramming </del><ins>cash award </ins>under <del>any other provision of law.</del><ins>section 4509.</ins>
    - <del>“(e)</del>
    - <del>“(1) Not later than October 1 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report identifying the total savings achieved during the previous fiscal year through disclosures of possible fraud, waste, or mismanagement and identifications of unnecessary expenses by an employee.</del>
    - <del>“(2) Not later than September 30 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report that, for the previous fiscal year—</del>
    - <del>“(A) describes each disclosure of possible fraud, waste, or mismanagement or identification of potentially unnecessary expenses by an employee of the agency determined by the agency to have merit; and</del>
    - <del>“(B) provides the number and amount of cash awards by the agency under subsection (a).</del>
    - <del>“(3) The head of each agency shall include the information described in paragraphs (1) and (2) in each budget request of the agency submitted to the Office of Management and Budget as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31.</del>
    - <del>“(4) The Secretary of the Treasury shall submit to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the Government Accountability Office an annual report on Federal cost saving and awards based on the reports submitted under paragraphs (1) and (2).</del>
    - “(f) The Director of the Office of Personnel Management shall—
    - “(1) ensure that the cash award program of each agency complies with this section; and
    - “(2) submit to Congress an annual certification indicating whether the cash award program of each agency complies with this section.
    - <ins>“(g) Not later than 3 years after the date of enactment of the Bonuses for Cost-Cutters Act of 2017, and every 3 years thereafter for 6 years, the Comptroller General of the United States shall submit to Congress a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes.”</ins>
    - <del>“(g) Not later than 3 years after the date of enactment of the Bonuses for Cost-Cutters Act of 2017, and every 3 years thereafter, the Comptroller General of the United States shall submit to Congress a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes.”</del>
- (c) Technical and conforming amendment— The table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4511 and inserting the following:

## Sec. 3 Officers eligible for cash awards — removed

- (a) <del>In general—</del> <del>Section 4509 of title 5, United States Code, is amended to read as follows:</del>
  - <del>“4509. Prohibition of cash award to certain officers and employees</del>
  - <del>“An individual may not receive a cash award under this subchapter if the individual—</del>
  - <del>“(1) is an officer serving in a position at level I of the Executive Schedule;</del>
  - <del>“(2) is the head of an agency;</del>
  - <del>“(3) is an officer or employee of the Office of the Inspector General of an agency; or</del>
  - <del>“(4) is a commissioner, board member, or other voting member of an independent establishment.”</del>
- (b) <del>Technical and conforming amendment—</del> <del>The table of sections for chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4509 and inserting the following:</del>
