[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3578 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3578
To provide oversight for the care and assistance provided to businesses
under the coronavirus relief package.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 24, 2020
Mr. Grassley introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To provide oversight for the care and assistance provided to businesses
under the coronavirus relief package.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``COVID-19 Funding Accountability Act
of 2020''.
SEC. 2. PURPOSE.
The purpose of this Act is to ensure that the Federal authority and
assistance that is extended to private entities in response to the
outbreak of the Coronavirus Disease 2019 (referred to in this Act as
``COVID-19'') is used in a manner that--
(1) promotes economic sustainability of severely distressed
sectors of the United States economy;
(2) promotes retention of jobs for working Americans and
maximizes overall returns to the taxpayers of the United
States; and
(3) provides public accountability for the exercise of such
Federal authority and assistance.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Appropriations, the Committee
on the Budget, the Committee on Commerce, Science, and
Transportation, the Committee on Finance, the Committee
on Banking, Housing, and Urban Affairs, and the
Committee on Small Business and Entrepreneurship of the
Senate; and
(B) the Committee on Appropriations, the Committee
on the Budget, the Committee on Energy and Commerce,
the Committee on Financial Services, and the Committee
on Ways and Means of the House of Representatives.
(2) Congressional support agencies.--The term
``congressional support agencies'' means--
(A) the Congressional Budget Office; and
(B) the Joint Committee on Taxation.
(3) COVID-19 relief program.--The term ``COVID-19 Relief
Program'' means initiatives established or implemented by
Federal officials in accordance with--
(A) the Coronavirus Preparedness and Response
Supplemental Appropriations Act (Public Law 116-123);
(B) the Families First Coronavirus Response Act
(Public Law 116-127);
(C) the Coronavirus Aid, Relief, and Economic
Security Act (also known as the ``CARES Act''), H.R.
748 (116th Congress); and
(D) any successor legislation to the same general
intent and effect as the legislation described in
subparagraphs (A), (B), and (C).
(4) Exchange stabilization fund.--The term ``Exchange
Stabilization Fund'' means the assistance program for
distressed sectors of the United States economy that is
established by the CARES Act, H.R. 748 (116th Congress) (or any
successor program established by Federal law).
SEC. 4. COVID-19 RELIEF OVERSIGHT BOARD.
(a) Establishment.--There is established a COVID-19 Relief
Oversight Board, which shall be responsible for--
(1) reviewing the exercise of authority under the COVID-19
Relief Program that relates to policies implemented to--
(A) increase loan forgiveness, loan eligibility,
and loan deferment of eligible small businesses under
section 7(a) of the Small Business Act (15 U.S.C.
636(a));
(B) extend grants or other forms of financial
assistance to business concerns in response to the
outbreak of COVID-19;
(C) make resources available, through the Medicare
and Medicaid programs, to hospitals and long-term care
facilities for the elderly in response to the COVID-19
outbreak; and
(D) extend emergency relief to distressed sectors
of the United States economy through the Exchange
Stabilization Fund of the Department of the Treasury;
(2) reviewing the effect of such policies and initiatives
in mitigating supply chain disruptions, preventing disruptions
in the distribution and sales of products and services, and
ensuring the sustainability of distressed sectors of the United
States economy due to the COVID-19 outbreak;
(3) making recommendations, as appropriate, to the
Administrator of the Small Business Administration, the
Secretary of the Treasury, the Secretary of Commerce, the
Secretary of Health and Human Services, and the Secretary of
Transportation regarding use of such statutory authority; and
(4) reporting any suspected fraud, misrepresentation, or
malfeasance to the Special Inspector General for the COVID-19
Relief Program or the Attorney General of the United States,
consistent with section 535(b) of title 28, United States Code.
(b) Membership.--The COVID-19 Relief Oversight Board established
under subsection (a) shall be comprised of--
(1) the Administrator of the Small Business Administration;
(2) the Secretary of the Treasury;
(3) the Secretary of Transportation;
(4) the Secretary of Commerce;
(5) the Secretary of Health and Human Services; and
(6) the Administrator of the Federal Emergency Management
Administration.
(c) Chairperson.--The chairperson of the COVID-19 Relief Oversight
Board shall be elected by the members of the Board from among the
members other than the Administrator of the Small Business
Administration and the Secretary of the Treasury.
(d) Meetings.--The COVID-19 Relief Oversight Board shall meet 2
weeks after the Exchange Stabilization Fund of the Department of the
Treasury initiates any loan, loan guarantee, or other investment for
air carriers and businesses, as authorized under the CARES Act, H.R.
748 (116th Congress) (or any successor program established under
Federal law) and monthly thereafter.
(e) Additional Authorities.--In addition to the responsibilities
described in subsection (a), the COVID-19 Relief Oversight Board shall
have the authority to ensure that the policies implemented through the
Exchange Stabilization Fund are--
(1) in accordance with the purposes of this Act, including
preservation of jobs of workers in severely distressed sectors
of the economy;
(2) in the economic interests of the United States; and
(3) consistent with protecting taxpayers' interests.
(f) Credit Review Committee.--The COVID-19 Relief Oversight Board
may appoint a credit review committee for the purpose of evaluating the
exercise of the authority provided under the COVID-19 Relief Program,
as the COVID-19 Relief Oversight Board determines appropriate.
(g) Reports.--The COVID-19 Relief Oversight Board shall report to
the appropriate committees of Congress and the Congressional Oversight
Panel established under this Act, not less frequently than quarterly,
on the matters described in subsection (a)(1).
(h) Termination.--The COVID-19 Relief Oversight Board, and its
authority under this section, shall terminate on the expiration of the
15-day period beginning upon the later of--
(1) the date on which the national emergency declared by
the President under the National Emergencies Act (50 U.S.C.
1601 et seq.) with respect to the COVID-19 expires; or
(2) the date on which the Exchange Stabilization Fund of
the Department of the Treasury ceases the direct lending, loan
guarantee, and investment activities for carriers and
businesses designated to receive such assistance under the
CARES Act, H.R. 748 (116th Congress) (or any successor program
established under Federal law).
SEC. 5. CONFLICTS OF INTEREST.
(a) Standards Required.--The Director of the Office of Management
and Budget shall issue regulations or guidelines necessary to address
and manage or to prohibit conflicts of interest that may arise in
connection with the administration and execution of the authorities
provided under the COVID-19 Relief Program.
(b) Timing.--Regulations or guidelines required by this section
shall be issued as soon as practicable after the date of enactment of
this Act.
SEC. 6. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.
(a) Applicability.--Any private entity that receives loans, loan
guarantees, grants, or other assistance through the Exchange
Stabilization Fund of the Department of the Treasury shall be subject
to the executive compensation requirements of subsection (b) and the
provisions under the Internal Revenue Code of 1986, as applicable.
(b) Criteria.--The standards required under this subsection shall
include--
(1) limits on compensation that exclude incentives for
senior executive officers of a private entity to take
unnecessary and excessive risks that threaten the value of such
entity during the period in which the entity receives financial
assistance in response to the COVID-19 outbreak; and
(2) a prohibition on the entity making any bonus, incentive
compensation or golden parachute payment to a senior executive
officer during the period in which such private entity receives
Federal assistance through the Exchange Stabilization Fund.
(c) Definition.--For purposes of this section, the term ``senior
executive officer'' means an individual who is one of the top 5 highly
paid executives of a public or private corporation or limited liability
company.
(d) Sunset.--This section shall apply only to arrangements entered
into during the period in which the entity received a Federal loan,
loan guarantee, or other investment or assistance in response to the
COVID-19 outbreak.
SEC. 7. OVERSIGHT AND AUDITS.
(a) Comptroller General Oversight.--
(1) Scope of oversight.--In furtherance of the purpose of
this Act, the Comptroller General of the United States shall
commence ongoing oversight of the activities and performance of
the COVID-19 Relief Program and any agents of the executive
branch invoking Federal authority or rendering assistance to
private entities in response to the COVID-19 outbreak.
(2) Conduct and administration of oversight.--
(A) GAO access to records.--To the extent otherwise
consistent with law, the Comptroller General shall have
access, upon request, to any information, data,
schedules, books, accounts, financial records, reports,
files, electronic communications, or other papers,
things, or property belonging to or in use by Federal
entities that exercise authority or render assistance
to private entities through the COVID-19 Relief
Program. The Comptroller General may make and retain
copies of such books, accounts, and other records as
the Comptroller General deems appropriate.
(B) Reimbursement of costs.--The Treasury shall
reimburse the Government Accountability Office for the
full cost of any such oversight activities as billed
therefor by the Comptroller General of the United
States. Such reimbursements shall be credited to the
appropriation account ``Salaries and Expenses,
Government Accountability Office'' current when the
payment is received and remain available until
expended.
(3) Reporting.--The Comptroller General--
(A) shall submit reports of findings under this
section, regularly and not less frequently than once
every 60 days, to the appropriate committees of
Congress, and the Special Inspector General for the
COVID-19 Relief Program established under section 8;
and
(B) may submit special reports under this
subsection as warranted by the findings of its
oversight activities.
(b) Comptroller General Audits.--
(1) Authority.--The Comptroller General may audit the
programs, activities, receipts, expenditures, and financial
transactions of Federal entities involved in extending
authority or assistance to private entities in response to the
COVID-19 outbreak.
(2) Corrective responses to audit problems.--Agencies or
departments subject to audits under this subsection shall--
(A) take action to address deficiencies identified
by the Comptroller General, as appropriate; or
(B) certify to appropriate committees of Congress
that no action is necessary or appropriate.
(c) Sharing of Information.--Any report or audit required under
this section shall also be submitted to the Congressional Oversight
Panel established under section 9.
(d) Termination.--Any oversight, reporting, or audit requirement
under this section shall terminate 180 days after the termination date
described in section 4(h).
SEC. 8. SPECIAL INSPECTOR GENERAL FOR COVID-19 RELIEF PROGRAM.
(a) Office of Inspector General.--There is hereby established the
Office of the Special Inspector General for the COVID-19 Relief
Program.
(b) Appointment of Inspector General; Removal.--
(1) In general.--The head of the Office of the Special
Inspector General for the COVID-19 Asset Relief Program is the
Special Inspector General for the COVID-19 Relief Program (in
this section referred to as the ``Special Inspector General''),
who shall be appointed by the President, by and with the advice
and consent of the Senate.
(2) Requirement for appointment.--The appointment of the
Special Inspector General shall be made on the basis of
integrity and demonstrated ability in accounting, auditing,
financial analysis, law, management analysis, public
administration, or investigations.
(3) Timing of nomination.--The nomination of an individual
as Special Inspector General under this section shall be made
as soon as practicable after the establishment of the Exchange
Stabilization Fund.
(4) Removal.--The Special Inspector General shall be
removable from office in accordance with the provisions of
section 3(b) of the Inspector General Act of 1978 (5 U.S.C.
App.).
(5) Political activities on duty.--For purposes of section
7324 of title 5, United States Code, the Special Inspector
General shall not be considered an employee who determines
policies to be pursued by the United States in the nationwide
administration of Federal law.
(6) Compensation.--The annual rate of basic pay of the
Special Inspector General shall be the annual rate of basic pay
for an Inspector General under section 3(e) of the Inspector
General Act of 1978 (5 U.S.C. App.).
(c) Duties.--
(1) In general.--It shall be the duty of the Special
Inspector General to conduct, supervise, and coordinate audits
and investigations of Federal assistance and relief programs
established in response to the COVID-19 outbreak.
(2) Oversight.--The Special Inspector General shall
establish, maintain, and oversee such systems, procedures, and
controls as the Special Inspector General considers appropriate
to discharge the duty under paragraph (1).
(3) Additional duties.--In addition to the duties specified
in paragraphs (1) and (2), the Inspector General shall also
have the duties and responsibilities of inspectors general
under the Inspector General Act of 1978 (5 U.S.C. App.).
(d) Powers and Authorities.--
(1) In general.--In carrying out the duties described in
subsection (c), the Special Inspector General shall have the
authorities provided in section 6 of the Inspector General Act
of 1978.
(2) Requirement.--The Special Inspector General shall carry
out the duties specified in subsection (c)(1) in accordance
with section 4(b)(1) of the Inspector General Act of 1978 (5
U.S.C. App.).
(e) Personnel, Facilities, and Other Resources.--
(1) Personnel.--The Special Inspector General may select,
appoint, and employ such officers and employees as may be
necessary for carrying out the duties of the Special Inspector
General, 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 5, relating to classification and General
Schedule pay rates.
(2) Experts and consultants.--The Special Inspector General
may 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-15 of the General Schedule by
section 5332 of such title 5.
(3) Audits and analyses.--The Special Inspector General may
enter into contracts and other arrangements for audits,
studies, analyses, and other services with public agencies and
with private persons, and make such payments as may be
necessary to carry out the duties of the Inspector General.
(4) Assistance from other departments.--
(A) In general.--Upon request of the Special
Inspector General for information or assistance from
any department, agency, or other entity of the Federal
Government, the head of such entity shall, insofar as
is practicable and not in contravention of any existing
law, furnish such information or assistance to the
Special Inspector General, or an authorized designee.
(B) Notification of congress.--Whenever information
or assistance requested by the Special Inspector
General is, in the judgment of the Special Inspector
General, unreasonably refused or not provided, the
Special Inspector General shall report the
circumstances to the appropriate committees of Congress
without delay.
(f) Reports.--
(1) In general.--Not later than 60 days after the
confirmation of the Special Inspector General, and every
calendar quarter thereafter, the Special Inspector General
shall submit to the appropriate committees of Congress a report
summarizing the activities of the Special Inspector General
during the 120-day period ending on the date of such report.
(2) Contents.--Each report required under this subsection
shall include, for the period covered by such report, a
detailed statement of all purchases, obligations, expenditures,
and revenues associated with the Exchange Stabilization Fund
and any COVID-19 Relief Program involving the expenditure of
more than $5,000,000.
(3) Rule of construction.--Nothing in this subsection shall
be construed to authorize the public disclosure of information
that 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 or national security or in the conduct of
foreign affairs; or
(C) a part of an ongoing criminal investigation.
(4) Requirement.--Any reports required under this section
shall also be submitted to the Congressional Oversight Panel
established under section 9.
(g) Funding.--Of the amounts made available to the Secretary of the
Treasury in fiscal year 2021, $50,000,000 shall be available to the
Special Inspector General to carry out this section and shall remain
available until expended.
(h) Termination.--Any oversight, reporting, or audit requirement
under this section shall terminate on the date that is 1 year after the
termination date described in section 4(h).
SEC. 9. CONGRESSIONAL OVERSIGHT PANEL.
(a) Establishment.--There is hereby established the Congressional
Oversight Panel (hereafter in this section referred to as the
``Oversight Panel'') as an establishment in the legislative branch.
(b) Duties.--The Oversight Panel shall review the current state of
the financial markets and submit the following reports to Congress:
(1) Regular reports.--
(A) In general.--Regular reports of the Oversight
Panel shall include the following:
(i) The use by Federal officials of
authority to implement COVID-19 Relief Program.
(ii) The impact of the COVID-19 Relief
Program on the financial markets, air carriers,
and medical providers.
(iii) The extent to which the information
made available on transactions under the
Exchange Stabilization Fund has contributed to
market transparency.
(iv) The effectiveness of the program from
the standpoint of minimizing long-term costs to
the taxpayers and maximizing the benefits for
taxpayers.
(B) Timing.--The reports required under this
paragraph shall be submitted not later than 30 days
after the establishment of the Exchange Stabilization
Fund, and every 30 days thereafter.
(2) Special report on regulatory reform.--The Oversight
Panel shall submit a special report on regulatory reform not
later than March 31, 2021, analyzing the current state of the
regulatory system and its effectiveness at overseeing the
recipients of COVID-19 Relief Program assistance and protecting
consumers, and providing recommendations for improvement,
including recommendations regarding whether any participants in
the financial markets that are currently outside the regulatory
system should become subject to the regulatory system, the
rationale underlying such recommendation, and whether there are
any gaps in existing consumer protections.
(c) Membership.--
(1) In general.--The Oversight Panel shall consist of 5
members, as follows:
(A) One member appointed by the Speaker of the
House of Representatives.
(B) One member appointed by the minority leader of
the House of Representatives.
(C) One member appointed by the majority leader of
the Senate.
(D) One member appointed by the minority leader of
the Senate.
(E) One member appointed by the Speaker of the
House of Representatives and the majority leader of the
Senate, after consultation with the minority leader of
the Senate and the minority leader of the House of
Representatives.
(2) Pay.--Each member of the Oversight Panel shall each be
paid at a rate equal to the daily equivalent of the annual rate
of basic pay for level I of the Executive Schedule for each day
(including travel time) during which such member is engaged in
the actual performance of duties vested in the Commission.
(3) Prohibition of compensation of federal employees.--
Members of the Oversight Panel who are full-time officers or
employees of the United States or Members of Congress may not
receive additional pay, allowances, or benefits by reason of
their service on the Oversight Panel.
(4) Travel expenses.--Each member shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with applicable provisions under subchapter I of
chapter 57 of title 5, United States Code.
(5) Quorum.--Four members of the Oversight Panel shall
constitute a quorum but a lesser number may hold hearings.
(6) Vacancies.--A vacancy on the Oversight Panel shall be
filled in the manner in which the original appointment was
made.
(7) Meetings.--The Oversight Panel shall meet at the call
of the Chairperson or a majority of its members.
(d) Staff.--
(1) In general.--The Oversight Panel may appoint and fix
the pay of any personnel as the Commission considers
appropriate.
(2) Experts and consultants.--The Oversight Panel may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code.
(3) Staff of agencies.--Upon request of the Oversight
Panel, the head of any Federal department or agency may detail,
on a reimbursable basis, any of the personnel of that
department or agency to the Oversight Panel to assist it in
carrying out its duties under this Act.
(e) Powers.--
(1) Hearings and sessions.--The Oversight Panel may, for
the purpose of carrying out this section, hold hearings, sit
and act at times and places, take testimony, and receive
evidence as the Panel considers appropriate and may administer
oaths or affirmations to witnesses appearing before it.
(2) Powers of members and agents.--Any member or agent of
the Oversight Panel may, if authorized by the Oversight Panel,
take any action which the Oversight Panel is authorized to take
by this section.
(3) Obtaining official data.--The Oversight Panel may
secure directly from any department or agency of the United
States information necessary to enable it to carry out this
section. Upon request of the Chairperson of the Oversight
Panel, the head of that department or agency shall furnish that
information to the Oversight Panel.
(4) Reports.--The Oversight Panel shall receive and
consider all reports required to be submitted to the Oversight
Panel under this Act.
(f) Termination.--The Oversight Panel shall terminate on the date
that is 180 days after the termination date described in section 4(h).
(g) Funding for Expenses.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Oversight Panel such sums as may be
necessary for any fiscal year, half of which shall be derived
from the applicable account of the House of Representatives,
and half of which shall be derived from the contingent fund of
the Senate.
(2) Reimbursement of amounts.--An amount equal to the
expenses of the Oversight Panel shall be promptly transferred
by the Secretary of the Treasury, from time to time upon the
presentment of a statement of such expenses by the Chairperson
of the Oversight Panel, from funds made available to the
Secretary of the Treasury under this Act to the applicable fund
of the House of Representatives and the contingent fund of the
Senate, as appropriate, as reimbursement for amounts expended
from such account and fund under paragraph (1).
SEC. 10. COOPERATION WITH THE DEPARTMENT OF JUSTICE AND THE FBI.
Any Federal financial regulatory agency shall cooperate with the
Department of Justice and the Federal Bureau of Investigation and other
law enforcement agencies investigating fraud, misrepresentation, and
malfeasance with respect to development, advertising, and sale of
financial or other investment products.
SEC. 11. INFORMATION FOR CONGRESSIONAL SUPPORT AGENCIES.
Upon request, and to the extent otherwise consistent with law, all
information used by the Federal officials in connection with activities
authorized under this Act (including the records to which the
Comptroller General is entitled under this Act) shall be made available
to congressional support agencies (in accordance with their obligations
to support the Congress as set out in their authorizing statutes) for
the purposes of assisting the committees of Congress with conducting
oversight, monitoring, and analysis of the activities authorized under
the COVID-19 Relief Program.
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