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(C) state the period of the waiver and indicate the actions taken to minimize or eliminate the conflict of interest during such period.

(2)(A) The Secretary may, on a case-by-case basis, waive the requirements of this section for a supervisory employee covered if the Secretary finds that the waiver is in the best interests of the Department. A waiver under this paragraph is effective for that supervisory employee only if that supervisory employee establishes a qualified trust as provided in subparts D and E of 5 Code of Federal Regulations part 2634, as in effect on the date of the enactment of this provision. The provisions of section 2634.403(b)(3) of such part shall not apply to this paragraph.

(B) A waiver under this paragraph shall be published in the Federal Register and shall contain the basis for the finding required by this paragraph. The waiver shall be for such period as the Secretary shall prescribe and may be renewed by the Secretary. (d) Any supervisory employee who continues to receive income from any energy concern, or continues to own property directly or indirectly in any such concern shall disclose such income or ownership to the extent known.


SEC. 603. [42 U.S.C. 7218] (a) Any individual who violates section 602 shall be subject to a civil penalty, assessed by the Secretary in accordance with applicable law or by any district court of the United States, not to exceed $10,000 for each violation.

(b) Nothing in this title shall be deemed to limit the operation of section 207 or section 208 of title 18, United States Code. Nor shall any waiver issued pursuant to section 602(c) constitute a waiver of the requirements of such provision.



AN ACT To establish Offices of Inspector General within various departments and agencies, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act be cited as the "Inspector General Act of 1978".


SEC. 2. [5 U.S.C. App.] In order to create independent and objective units

(1) to conduct and supervise audits and investigations relating to the programs and operations of the establishments listed in section 11(2);

(2) to provide leadership and coordination and recommend policies for activities designed (A) to promote economy, efficiency, and effectiveness in the administration of, and (B) to prevent and detect fraud and abuse in, such programs and operations; and

(3) to provide a means for keeping the head of the establishment and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action;

there is hereby established in each of such establishments an office of Inspector General.

Enacted Oct. 12, 1978, P.L. 95-452, sec. 2, 92 Stat. 1101; amended Oct. 17, 1979, P.L. 96-88, sec. 508(n)(1), 93 Stat. 694; amended December 29, 1981, P.L. 97-113, sec. 705(a)(1), 95 Stat. 1544; amended September 8, 1982, P.L. 97-252, sec. 1117(a)(1), 96 Stat. 750, amended August 16, 1985; P.L. 99-93, sec. 150(a)(1), 99 Stat. 427; amended Aug. 27, 1986, P.L. 99-399, sec.412(a)(1), 100 Stat. 867; amended Oct. 18, 1988, P.L. 100-504, sec. 102(a)(1), 102 Stat. 2515; amended Oct. 25, 1988, P.L. 100-527, sec. 13(h)(1), 102 Stat. 2643.


SEC. 3. [5 U.S.C. App.] (a) There shall be at the head of each Office an Inspector General who shall be appointed by the President, by and with the advice and consent of the Senate, without regard to political affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. Each Inspector General shall report to and be under the general supervision of the head of the establishment involved or, to the extent such authority is delegated, the officer next in rank below such head, but shall not report to, or be subject to supervision by, any other officer of such establishment. Neither the head of the establishment nor the officer next in rank below such head shall prevent or prohibit the Inspector General from initiating, carrying out,

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