Establishment of the Office of Whistleblower Awards

The Small Business Act (15 U.S.C. 631 et seq.) is amended—(1)in section 7(b), by redesignating the second paragraph (16) (relating to statute of limitations) as paragraph (17);(2)by redesignating section 49 as section 50; and(3)by inserting after section 48 the following new section:

49.

Office of Whistleblower Awards

(a)

Establishment

There is established within the Office of Performance, Planning, and the Chief Financial Officer of the Administration an Office of Whistleblower Awards.(b)

Administration

The Office of Whistleblower Awards shall be administered by an employee in the competitive service.(c)

Awards to whistleblowers

(1)

In general

Except as otherwise provided in this section, the head of the Office of Whistleblower Awards shall—(A)with respect to information submitted to head of the Office of Whistleblower Awards by whistleblowers relating to financial misconduct or fraudulent misrepresentation by a recipient of financial assistance from the Administrator—(i)determine, in coordination with the Inspector General, whether such information is original information; and(ii)for all such information that is original information—(I)collect and transmit to the Inspector General such original information; and(II)track the use of such original information in obtaining final convictions and settlement and plea agreements; and(B)pay an award in an amount as described in paragraph (2) to a whistleblower for information described in subparagraph (A) that is original information submitted to head of the Office of Whistleblower Awards by such whistleblower if a person is finally convicted pursuant to, or enters into a settlement or plea agreement with respect to, a COVID loan action that is based, in whole or in part, on such original information, as determined by the Inspector General.(2)

Amounts

Any amount payable under this section shall be paid from the amounts deposited in the Whistleblower Award Fund established under subsection (f) based on a person finally convicted pursuant to, or a settlement or plea agreement with respect to, a COVID loan action that is based, in whole or in part, on original information provided to the head of the Office of Whistleblower Awards by the whistleblower as follows:(A)10 percent of the amounts so deposited if the person so convicted or who entered into such settlement or plea agreement, as applicable, is a national of the United States or an entity located in the United States.(B)15 percent of the amounts so deposited if the person so convicted or who entered into such settlement or plea agreement, as applicable, is a foreign national or an entity located in a country other than the United States.(3)

Multiple whistleblowers

(A)

In general

If a person is finally convicted pursuant to, or enters into a settlement or plea agreement with respect to, a COVID loan action that is based, in whole or in part, on information described in paragraph (1)(A) that is original information from multiple whistleblowers, only the whistleblower who made the most substantial contribution with respect to such COVID loan action (including such conviction, settlement agreement, or plea agreement), as determined by the head of the Office of Whistleblower Awards, may receive an award under this section with respect to a conviction pursuant to, or a settlement or plea agreement with respect to, such COVID loan action.(B)

Substantiality determination

For the purposes of determining which whistleblower made the most substantial contribution with respect to a COVID loan action under subparagraph (A), the head of the Office of Whistleblower Awards shall consider—(i)the significance of the original information of the whistleblower with respect to such COVID loan action;(ii)the role of the whistleblower and any legal representative of the whistleblower in contributing to such COVID loan action; and(iii)such other criteria as the head of the Office of Whistleblower Awards determines appropriate.(d)

Additional requirements

(1)

Reduction in award

The head of the Office of Whistleblower Awards may reduce to an amount greater than or equal to zero an award to a whistleblower under this section for original information relating to financial misconduct or fraudulent misrepresentation by a recipient of financial assistance from the Administrator if the head of the Office of Whistleblower Awards determines that such whistleblower planned or initiated the actions that led to such to financial misconduct or fraudulent misrepresentation.(2)

Criminal conviction

(A)

Denial

A whistleblower who is finally convicted of an offense arising out of planning or initiating the actions that led to the to financial misconduct or fraudulent misrepresentation by a recipient of financial assistance from the Administrator is ineligible for any award under this section with respect any conviction, settlement agreement, or plea agreement related to such financial misconduct or fraudulent misrepresentation.(B)

Repayment

As a condition of receiving an award under this section, the whistleblower shall agree to repay the full amount of the award if the whistleblower is finally convicted of an offense relating to the original information that was the basis for receipt of such award.(3)

No contract necessary

A whistleblower shall not be required to be a party to a contract with the Administrator to be eligible to receive an award under this section.(4)

Timing

The head of the Office of Whistleblower Awards shall disburse payments to a whistleblower under this section not later than one year after the date on which amounts have been deposited into the Whistleblower Award Fund based on a conviction pursuant to, or a settlement or plea agreeement entered into with respect to, a COVID loan action based, in whole or in part, on information described in subsection (c)(1)(A) that is original information provided by such whistleblower.(5)

Status updates

The head of the Office of Whistleblower Awards shall—(A)provide confirmation of the receipt of information described in subsection (c)(1)(A) to the whistleblower that submitted such information;(B)provide to such whistleblower—(i)a notice of the determination whether such information is original information; and(ii)for such information that is original information, a notice of each determination by the Inspector General pursuant to a final conviction or settlement or plea agreement with respect to a COVID loan action whether such information was the basis, in whole or in part, of such COVID loan action; and(C)ensure that procedures consistent with section 1213 of title 5, United States Code, for findings on the disclosure and for the whistleblower to comment on any preliminary determinations.(6)

Anti-retaliation

(A)

In general

No person may be discriminated against and no other prejudicial action may be taken against a person because such person has made, is perceived as about to make, or assisted or associated with a person who made or is about to make a disclosure under this section.(B)

Relief

Any person who alleges to discrimination or other prejudicial action in violation of subparagraph (A) may seek relief for a violation of such subparagraph pursuant to the rights, procedures, burdens of proof and remedies in paragraphs (2) through (5) of section 5323(g) of title 31, United States Code.(e)

Appeals

A determination made under this section by the head of the Office of Whistleblower Awards, except the determination of the amount of an award if the award was made in accordance with the requirements of subsection (c)(2), may be appealed by the whistleblower subject to such determination to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by the head of the Office of Whistleblower Awards. The court shall review the determination in accordance with section 706 of title 5, United States Code.(f)

Whistleblower Award Fund

(1)

Establishment

There is established in the Department of the Treasury a revolving fund to be known as the Whistleblower Award Fund.(2)

Use of fund

Amounts in the Whistleblower Award Fund shall be available to head of the Office of Whistleblower Awards, without further appropriation or fiscal year limitation, for—(A)payment of awards made under this section; and(B)the necessary expenses for the operation of the Office of Whistleblower Awards.(3)

Deposits

Notwithstanding any other provision of law, if a person is finally convicted pursuant to, or enters into a settlement or plea agreement with respect to, a COVID loan action based, in whole or in part, on original information described in subsection (c)(1) that is provided to the head of the Office of Whistleblower Awards by a whistleblower, there shall be deposited into the Whistleblower Award Fund all amounts collected from such person by the Federal Government, including amounts collected as a result of a civil monetary penalty under subsection (g)—(A)for or pursuant to such conviction; or(B)under or pursuant to such settlement or plea agreement.(4)

Remaining amounts

The Administrator shall deposit into the general fund of the Treasury any amounts in the Whistleblower Award Fund not used to pay whistleblowers under subsection (c) or the necessary expenses for the operation of the Office of Whistleblower Awards.(g)

Civil monetary penalty

(1)

In general

Any person who is finally convicted pursuant to a COVID loan action or who enters into a settlement or plea agreement with respect to a COVID loan action shall, in addition to any other penalties that may be prescribed by law, be subject to a civil monetary penalty, assessed by the Administrator, in an amount equal to 30 percent of the aggregate of the principal amounts of the loans with respect to which such person was so finally convicted or entered into such a settlement or plea agreement.(2)

Collection

(A)

In general

Civil money penalties and assessments imposed under this subsection may be compromised by the Adminstrator and may be recovered in a civil action in the name of the United States brought in United States district court for the district where the conduct serving as the basis for the relevant COVID loan action occurred or in United States district court for the district in which the person against whom the penalty or assessment has been assessed resides, as determined by the Administrator.(B)

Withholdings

(i)

In general

The amount of a civil money penalty and assessment imposed under this subsection, when finally determined, or the amount agreed upon in compromise, may be deducted from any sum then or later owing by the United States to the person against whom the penalty or assessment has been assessed.(ii)

Treatment

For the purposes of awards under this section, amounts deducted under clause (i) shall be deposited into the Whistleblower Award Fund.(h)

Report

Not later than 12 months after the date of the enactment of this section, and annually thereafter, the Administrator shall submit to Congress a report on—(1)the number of times whistleblowers submitted to the head of the Office of Whistleblower Awards original information relating to financial misconduct or fraudulent misrepresentation by a recipient of financial assistance from the Administrator;(2)the amount of awards disbursed under this section; and(3)any legislative or administrative recommendations regarding the duties of the Office of Whistleblower Awards.(i)

Rule of construction

Nothing in this section shall be construed to modify or interfere with any investigations carried out by the Inspector General or another Federal agency.(j)

Sunset

(1)

In general

Except as provided by paragraph (2), the authority under this section shall terminate on the date that the last COVID loan action that was timely filed and either—(A)has not been appealed and is no longer appealable because the time for taking an appeal has expired; or(B)has been appealed and the appeals process for such conviction is completed.(2)

Appeals

Notwithstanding paragraph (1), the authority under this section shall continue with respect to a claim for an award under this section for which a determination is being appealed or is appealable under subsection (e) as of the date described in such paragraph until a determination for such award is no longer being appealed or appealable under subsection (e).(k)

Definitions

In this section:(1)

COVID loan action

The term COVID loan action means a criminal charge or civil enforcement action described in—(A)section 7(a)(36)(W);(B)section 7(a)(37)(P);(C)section 7(b)(17);(D)section 1110(e)(9) of the CARES Act (15 U.S.C. 9009(e)(9)); or(E)section 331(i) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 9009b(i)).(2)

Final conviction; finally convicted

The terms final conviction and finally convicted mean, with respect to a person, that such person has been convicted of an offense and such conviction—(A)has not been appealed and is no longer appealable because the time for taking an appeal has expired; or(B)has been appealed and the appeals process for such conviction is completed.(3)

Inspector General

The term Inspector General means the Inspector General of the Administration.(4)

Original information

The term original information means information that—(A)is derived from the independent knowledge or analysis of a whistleblower;(B)is not known to the Administrator or Inspector General from any source other than the whistleblower, unless the whistleblower is the original source of the information;(C)is not exclusively derived from an allegation made in a judicial or administrative action, in a governmental report, hearing, audit, or investigation, or from the news media, unless the whistleblower is a source of the information; and(D)was provided to the Inspector General—(i)after the date of the enactment of this Act; or(ii)by a means other than a hotline for reporting fraud, waste, and abuse that is maintained by the Inspector General.(5)

Whistleblower

The term whistleblower means an individual who submits information to the Office of Whistleblower Awards that such individual reasonably believes relates to financial misconduct or fraudulent misrepresentation by a recipient of financial assistance from the Administrator.