S. 696Senate115th Congress (2017-2019)In Committee

Stop Improper Federal Bonuses Act

Introduced March 22, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:08 PM UTC

The Stop Improper Federal Bonuses Act changes federal law to restrict when agencies can give performance or cash bonuses to their employees. It bars a bonus if the employee has been found to have committed serious misconduct, and it forces repayment of any bonus awarded in the same fiscal year a misconduct finding is made. The rule applies to all federal employees and gives them a right to appeal the decision to the Merit Systems Protection Board.

Key Provisions

  • Defines an “adverse finding” as a determination that an employee violated a serious agency policy (punishable by at least 14 days suspension) or a felony punishable by more than one year in prison, based on investigations by the Inspector General, senior ethics official, or Comptroller General.
  • Prohibits an agency head from awarding a bonus to an employee until five years after the fiscal year in which an adverse finding is made against that employee.
  • If an employee receives a bonus and an adverse finding is made in the same fiscal year, the agency must hold a hearing and, if the finding is upheld, order the employee to repay the bonus, with a repayment plan allowed.
  • Employees must sign a certification that they will repay any bonus if a final order requires it.
  • Employees can appeal a denial of a bonus or a repayment order to the Merit Systems Protection Board.
  • Agencies are authorized to issue rules to implement these new bonus‑award restrictions.

Legislative Activity

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4 earlier actions
SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 167.

July 11, 2017

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SenateIntro Referral

Introduced in Senate

March 22, 2017

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

March 22, 2017

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment favorably.

May 17, 2017

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson with amendments. With written report No. 115-127.

July 11, 2017

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 167.

July 11, 2017

Floor Debate

18 members

What members said about S. 696 on the floor

7 Republicans10 Democrats1 Independent
Maria Cantwell
Sen. Maria CantwellD-WA · Feb 2, 2017

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I see my colleague from Texas. Did he want to make remarks in leader time? Madam President,…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 2, 2017

Mr. President, I listened carefully this morning to the statement made by the Republican majority leader, and I was a little bit curious as to what he was trying to say because he talked about a…

John Cornyn
Sen. John CornynR-TX · Feb 2, 2017

Madam President, yesterday the Senate took up legislation to block the stream buffer rule, which is a job-killing regulation from the Obama administration--something the Obama administration will be…

Edward J. Markey
Sen. Edward J. MarkeyD-MA · Feb 2, 2017

Madam President, I thank the Senator from Washington State for her tremendous leadership on all of these environmental issues, which are now on the table in our country for the first time in a…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Feb 2, 2017

Thank you, Mr. President. I come to the floor this morning to speak on the resolution of disapproval that is before us, but I want to make just a few comments following my colleague, the minority…

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James M. Inhofe
Sen. James M. InhofeR-OK · Feb 2, 2017

Mr. President, first of all, I appreciate the opportunity to get wedged in here. There are a number of very interesting things happening today. One is the CRA that I am very much concerned about. I…

Thomas R. Carper
Sen. Thomas R. CarperD-DE · Feb 2, 2017

Mr. President, I would just remind my colleagues that a lot of folks in my State and people I talk to around the country believe it is outrageous that the last President nominated a candidate for the…

Heidi  Heitkamp
Sen. Heidi HeitkampD-ND · Feb 2, 2017

Mr. President, I think all of us understand the gravity of moving forward on a CRA. It is not a usual procedure; it is limited in terms of filibuster rules, and it is extraordinary. In this case,…

Joe Manchin III
Sen. Joe Manchin IIID-WV · Feb 2, 2017

Mr. President, I rise also to speak about the rule. I want everyone to know that the State of West Virginia has been a heavy- lifting State. We are a construction State. We mined the coal that made…

Dan Sullivan
Sen. Dan SullivanR-AK · Feb 2, 2017

Madam President, today we are going to be voting on the first of what will be many resolutions of disapproval under the Congressional Review Act to roll back the avalanche of Federal regulations that…

Bernard Sanders
Sen. Bernard SandersI-VT · Feb 2, 2017

Mr. President, I oppose the Republicans' current efforts to gut environmental protections that put industry profits before public health. In repealing the EPA stream protection rule, Republicans are…

Deb Fischer
Sen. Deb FischerR-NE · Feb 2, 2017

Mr. President, I rise to address the nomination of Judge Neil Gorsuch to serve on the Supreme Court of the United States. I will address Mr. Gorsuch's qualifications and his extensive legal…

Jeff Merkley
Sen. Jeff MerkleyD-OR · Feb 2, 2017

Mr. President, yesterday I had the chance to come to the floor and talk about the changes I have seen in the streams and rivers in my home State of Oregon as we worked to clean them up, restore them…

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Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Feb 2, 2017

Mr. President, I wish to oppose the resolution of disapproval on the stream protection rule. Each Congress has an opportunity to promote having cleaner air and cleaner water. Our job description…

Mike Rounds
Sen. Mike RoundsR-SD · Feb 2, 2017

Madam President, I ask to speak as in morning business for up to 5 minutes. Madam President, I rise today to discuss President Trump's Supreme Court nominee, Judge Neil M. Gorsuch. As you know, the…

Chris Van Hollen
Sen. Chris Van HollenD-MD · Feb 2, 2017

Mr. President, with the resolution on the floor today, our Republican colleagues are beginning their effort to roll back critical health, safety, and environmental safeguards that the Obama…

Mazie K. Hirono
Sen. Mazie K. HironoD-HI · Feb 2, 2017

Mr. President, I am deeply concerned about efforts underway to use the Congressional Review Act to eliminate protections that have saved lives and cleaned up our environment. I certainly respect the…

Richard Burr
Sen. Richard BurrR-NC · Feb 2, 2017

Mr. President, I ask for the yeas and nays.

Bill Text

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Latest
Reported to SenateIssued July 11, 2017

II

Calendar No. 167

115th CONGRESS

1st Session

S. 696

[Report No. 115–127]

IN THE SENATE OF THE UNITED STATES

March 22, 2017

Mrs. Fischer (for herself, Mrs. McCaskill, and Mr. Heller) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

July 11, 2017

Reported by Mr. Johnson, with amendments

Omit the part struck through and insert the part printed in italic

A BILL

To amend title 5, United States Code, to appropriately limit the authority to award bonuses to Federal employees.

1.

Short title

This Act may be cited as the “Stop Improper Federal Bonuses Act”.

2.

Bonuses

(a)

Adverse findings and employees under investigation

Chapter 45 of title 5, United States Code, is amended by adding at the end the following:

IV

Limitations on bonus authority

4531.

Certain forms of misconduct

(a)

Definitions

In this section:

(1)

Adverse finding

(A)

In general

The term adverse finding means a determination by the head of the agency employing an employee that the conduct of the employee—

(i)

violated a policy of the agency for which the employee may be removed or suspended for a period of not less than 14 days; or

(ii)

violated a law for which the employee may be imprisoned for more than 1 year.

(B)

Basis

A determination described in subparagraph (A) may be based on an investigation by, a determination of, or information provided by the Inspector General or another senior ethics official of an agency or the Comptroller General of the United States, as part of carrying out an activity, authority, or function of the Inspector General, senior ethics official, or Comptroller General, respectively, under a provision of law other than this section.

(2)

Agency

The term agency has the meaning given the term in section 551.

(3)

Bonus

The term bonus means any performance award or cash award under—

(A)

section 4505a;

(B)

section 5384; or

(C)

section 5754.

(4)

Employee

The term employee means an employee of an agency.

(b)

Prohibition

The head of an agency may not award a bonus to an employee of the agency until the date that is 5 years after the end of the fiscal year during which the head of an agency makes an adverse finding relating to the employee.

(c)

After bonus awarded

(1)

In general

For a bonus awarded to an employee after the date of enactment of this section, if the head of the agency employing the employee makes an adverse finding relating to the employee during the fiscal year in which the bonus is awarded, the head of the agency, after notice and an opportunity for a hearing, shall issue an order directing the employee to repay the amount of the bonus.

(2)

Repayment plan

An agency shall allow an employee who is required to repay a bonus under paragraph (1) to repay that bonus using a repayment plan.

(2)(3)

Hearings

A hearing under this subsection shall be conducted in accordance with regulations relating to hearings promulgated by the head of the agency under chapter 75.

(d)

Condition of receipt

As a condition of receiving a bonus awarded after the date of enactment of this section, an employee shall sign a certification stating that the employee shall repay the bonus in accordance with a final order issued under subsection (c).

(e)

Appeal

An employee determined to be ineligible for a bonus under subsection (b) or against whom an order is issued under subsection (c) may submit an appeal to the Merit Systems Protection Board under section 7701.

.

(b)

Rulemaking

The head of each agency, as defined in section 551 of title 5, United States Code, may promulgate rules to carry out section 4531 of title 5, United States Code, as added by subsection (a).

(c)

Technical and conforming amendment

The table of sections for chapter 45 of title 5, United States Code, is amended by adding at the end the following:

“SUBCHAPTER IV—Limitations on bonus authority

“4531. Certain forms of misconduct.”.

July 11, 2017

Reported with amendments