A bill to amend the Inspector General Act of 1978 (5 U.S.C. App.) to establish police powers for certain Inspector General agents engaged in official duties and provide an oversight mechanism for the exercise of those powers.

Amends the Inspector General Act of 1978 to permit each Inspector General, any Assistant Inspector General for Investigations, and any special agent supervised by such an Assistant Inspector General to be authorized by the Attorney General to: (1) carry a firearm while engaged in official duties or as expressly authorized by the Attorney General; (2) make an arrest without a warrant while engaged in such duties (or as such expressly authorized) for any offense against the United States committed in the presence of such Inspector, Assistant Inspector, or agent, or for any felony; and (3) seek and execute warrants for an arrest, search, or seizure.

Empowers the Attorney General to authorize the exercise of such powers only upon an initial determination that: (1) the affected Office of Inspector General is significantly hampered in the performance of such responsibilities as a result of the lack of such powers; (2) available assistance from other law enforcement agencies is insufficient to meet the need for exercising such powers; and (3) adequate internal safeguards and management procedures exist to ensure proper exercise of those powers.

Exempts specified Offices of Inspector General from such an initial determination of eligibility. Directs such Offices to collectively enter into a memorandum of understanding to establish an external review process for ensuring that such safeguards and procedures continue to exist within each Office and any Office that receives such an authorization.