[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5943 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5943

To amend the Homeland Security Act of 2002 to prevent waste, fraud, and 
 abuse in emergency assistance programs administered by the Department 
                         of Homeland Security.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2006

 Mr. McCaul of Texas (for himself, Mr. King of New York, Mr. Rogers of 
    Alabama, Mr. Reichert, Mr. Poe, and Mr. Jindal) introduced the 
    following bill; which was referred to the Committee on Homeland 
   Security, and in addition to the Committee on Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Homeland Security Act of 2002 to prevent waste, fraud, and 
 abuse in emergency assistance programs administered by the Department 
                         of Homeland Security.

    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 ``Fraud Accountability in Emergency 
Response Act of 2006''.

SEC. 2. PREVENTING WASTE, FRAUD, AND ABUSE IN FEDERAL EMERGENCY 
              ASSISTANCE PROGRAMS.

    (a) Table of Contents.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (116 Stat. 2135) is amended by adding 
at the end of the items relating to title V the following:

``Sec. 512. Waste, fraud, and abuse controls.
``Sec. 513. System to record and track assistance.
``Sec. 514. Restrictions on debit cards.
``Sec. 515. Monitoring of Department contracting.
``Sec. 516. Small business database for Federal contracting related to 
                            major disaster and emergency assistance 
                            activities.
``Sec. 517. Fraud prevention training program.
``Sec. 518. Prenegotiated contracts for delivery of goods and services 
                            after emergencies.''.
    (b) Federal Emergency Assistance Programs.--Title V of such Act (6 
U.S.C. 311 et seq.) is amended by adding at the end the following:

``SEC. 512. WASTE, FRAUD, AND ABUSE CONTROLS.

    ``(a) In General.--The Secretary, acting through the Director of 
the Federal Emergency Management Agency, shall ensure that--
            ``(1) all programs within the Agency administering Federal 
        assistance develop and maintain proper internal management 
        controls to prevent and detect waste, fraud, and abuse;
            ``(2) application databases used by the Agency to collect 
        information on eligible recipients must record disbursements;
            ``(3) such tracking is designed to highlight and identify 
        ineligible applications; and
            ``(4) the databases used to collect information from 
        applications for such assistance must be integrated with the 
        disbursements and payment records.
    ``(b) Audits and Reviews Required.--The Secretary shall ensure that 
any existing database or similar application processing system in 
effect on the date of enactment of this section for Federal assistance 
programs administered by the Department undergoes a review by the 
Inspector General of the Department to determine the existence and 
implementation of the internal controls required under this section, 
before the database application may be used to determine eligibility 
and disbursement of Federal assistance.
    ``(c) Certification Required.--The Secretary, acting through the 
Director of the Federal Emergency Management Agency, shall certify to 
Congress on an annual basis that the internal controls required under 
this section are in place and operational before a database or similar 
application processing system may be used to disburse Federal 
assistance.
    ``(d) Report to Congress.--Recommendations or findings that remain 
unresolved between program administrators and the Inspector General of 
the Department for 30 days must be immediately reported to Congress by 
the Inspector General.

``SEC. 513. SYSTEM TO RECORD AND TRACK ASSISTANCE.

    ``(a) Establishment.--The Director of the Federal Emergency 
Management Agency shall establish and implement a system for recording 
and tracking all monetary and other benefits disbursed by the Agency to 
eligible persons.
    ``(b) Elements.--In establishing the system, the Director shall 
ensure that--
            ``(1) each person applying to the Agency for monetary or 
        other benefits is assigned a permanent and traceable 
        registration number;
            ``(2) the registration number of the person is maintained 
        by the Agency in a database that records and tracks all 
        monetary and other benefits disbursed by the Agency to the 
        person; and
            ``(3) the database is designed to detect and reject, as 
        appropriate, requests by the person to the Agency for--
                    ``(A) duplicate disbursement of monetary or other 
                benefits; and
                    ``(B) disbursement of monetary or other benefits 
                for which the person is not eligible.

``SEC. 514. RESTRICTIONS ON DEBIT CARDS.

    ``(a) In General.--If the Director of the Federal Emergency 
Management Agency uses debit cards as a means of distributing major 
disaster and emergency assistance to persons, the Director shall ensure 
that the cards are equipped with an electronic feature based on current 
technology that prohibits the use of the cards for ineligible expenses, 
as designated by the Director.
    ``(b) Ineligible Expenses.--Ineligible expenses to be designated by 
the Director under subsection (a) shall include the purchase of alcohol 
and cigarettes and the purchase of any good or service from a 
commercial establishment engaged in adult entertainment, gambling, or 
the sale of pawned goods.

``SEC. 515. MONITORING OF DEPARTMENT CONTRACTING.

    ``To the extent practicable, the Inspector General of the 
Department shall continue to monitor, and make recommendations relating 
to, the contracting process of the Department to prevent waste, fraud, 
and abuse.

``SEC. 516. SMALL BUSINESS DATABASE FOR FEDERAL CONTRACTING RELATED TO 
              MAJOR DISASTER AND EMERGENCY ASSISTANCE ACTIVITIES.

    ``(a) Establishment of Database.--The Secretary, acting through the 
Director of the Federal Emergency Management Agency, shall establish 
and maintain a database that contains information about small business 
entities for purposes of Federal contracting relating to assistance 
activities conducted in response to and recovery from acts of 
terrorism, natural disasters, and other emergencies.
    ``(b) Included Information.--The database under subsection (a) 
shall include the following information about each small business 
entity included in the database:
            ``(1) The name of the small business entity.
            ``(2) The location of the small business entity.
            ``(3) The area served by the small business entity.
            ``(4) The type of good or service provided by the small 
        business entity.
            ``(5) Whether the small business entity is--
                    ``(A) a small business entity owned and controlled 
                by socially and economically disadvantaged individuals;
                    ``(B) a small business entity owned and controlled 
                by women; or
                    ``(C) a small business entity owned and controlled 
                by service-disabled veterans.
    ``(c) Source of Information.--
            ``(1) Submission.--The database may only contain such 
        information about a small business entity as is submitted by 
        the small business entity.
            ``(2) Attestation.--Each small business entity submitting 
        information to the database shall submit--
                    ``(A) an attestation that the information submitted 
                is true; and
                    ``(B) documentation supporting such attestation.
            ``(3) Verification.--The Secretary shall verify only that 
        the documentation submitted by each small business entity 
        supports the information submitted by that small business 
        entity.
    ``(d) Availability of Database.--The Secretary shall make the 
database generally available on the Internet website of the Department.
    ``(e) Consultation of Database.--Before awarding a Federal contract 
for a disaster-related activity, a component of the Department shall 
consult the database established under this section.
    ``(f) Database Integration.--The Secretary shall integrate the 
database established under this section into any other procurement-
related database maintained by the Secretary.
    ``(g) Definitions.--For purposes of this section, the terms `small 
business entity', `small business entity owned and controlled by 
socially and economically disadvantaged individuals', `small business 
entity owned and controlled by women', and `small business entity owned 
and controlled by service-disabled veterans' shall have the meanings 
given the terms `small business concern', `small business concern owned 
and controlled by socially and economically disadvantaged individuals', 
`small business concern owned and controlled by women', and `small 
business concern owned and controlled by service-disabled veterans' 
respectively under the Small Business Act (15 U.S.C. 631 et seq.).

``SEC. 517. FRAUD PREVENTION TRAINING PROGRAM.

    ``(a) Training Program Required.--The Secretary, acting through the 
Director of the Federal Emergency Management Agency, shall develop and 
implement a program to provide training on the prevention of waste, 
fraud, and abuse of Federal assistance funds and services during the 
response to or recovery from acts of terrorism, natural disasters, or 
other emergencies and ways to identify such potential waste, fraud, and 
abuse.
    ``(b) Individuals Eligible for Training.--Under the training 
program required under subsection (a), the Secretary may provide 
training to--
            ``(1) employees, contractors, and volunteers of the Federal 
        Government;
            ``(2) employees and volunteers of any State, local, or 
        tribal government entity; and
            ``(3) employees and volunteers of nonprofit organizations 
        that assist in the administration of Federal assistance funds 
        and services provided in response to acts of terrorism, natural 
        disasters, or other national emergencies.
    ``(c) Information Sharing.--Any State, local, or tribal government 
entity or nonprofit entity that provides Federal assistance funds or 
services to individuals affected by acts of terrorism, natural 
disasters, or other emergencies may share information with the Federal 
Government, in a manner consistent with the privacy protections 
provided under section 552a of title 5, United States Code, about any 
recipient of such assistance, at the request of the head of a Federal 
department or agency, for the purpose of preventing fraud and abuse of 
Federal assistance.

``SEC. 518. PRENEGOTIATED CONTRACTS FOR DELIVERY OF GOODS AND SERVICES 
              AFTER EMERGENCIES.

    ``(a) In General.--The Director of the Federal Emergency Management 
Agency may enter into contracts for the delivery of necessary goods or 
services relating to the response to or recovery from acts of 
terrorism, natural disasters, or other emergencies.
    ``(b) Necessary Goods and Services.--The necessary goods and 
services referred to in subsection (a) include the following:
            ``(1) Debris removal and other disaster clean-up needs.
            ``(2) The provision of food, water, ice, and first aid 
        supplies.
            ``(3) Meals-ready-to-eat.
    ``(c) Preference for Contracts With Small Businesses.--To the 
greatest extent practicable, in entering into a contract under 
subsection (a), the Director shall give a preference to a small 
business entity, as that term is defined in section 516.
    ``(d) Competitive Procedures.--In entering into a contract under 
this section, the Director shall use competitive procedures, to the 
maximum extent practicable, except as otherwise provided by law.
    ``(e) Consultation With Other Federal Departments and Agencies.--
The Director shall consult with the head of a Federal department or 
agency with respect to any contract entered into by the head of such 
department or agency using funds made available for preparedness, 
mitigation, response, and recovery with respect to acts of terrorism, 
natural disasters, and other emergencies.''.

SEC. 3. ASSESSMENT AND REPORT REGARDING UTILIZATION OF INDEPENDENT 
              PRIVATE SECTOR INSPECTORS GENERAL.

     (a) In General.--The Director of the Federal Emergency Management 
Agency, in consultation with the Under Secretary for Management, 
shall--
            (1) assess the role that independent private sector 
        inspectors general (popularly known as ``IPSIGs'') played in 
        preventing waste, fraud, and abuse in contracts for goods or 
        services purchased or commissioned after the terrorist attacks 
        on the World Trade Center in New York City on September 11, 
        2001; and
            (2) report the findings of such assessment to Congress by 
        not later than one year after the date of enactment of this Act 
        and post the report on the primary agency public access 
        website.
    (b) Utilization of IPSIGs to Monitor and Provide Greater 
Accountability.--Such assessment shall include examination of how 
IPSIGs may be utilized to monitor and provide greater accountability 
for contracts using Federal funding provided in response to a terrorist 
attack, natural disaster, or other national emergency, including 
contracts for debris removal and the repair or reconstruction of 
damaged infrastructure.

SEC. 4. ENHANCED ACCOUNTABILITY FOR FEDERAL ASSISTANCE.

     (a) In General.--The Homeland Security Act of 2002 is amended by 
inserting after section 856 (6 U.S.C. 426) the following:

``SEC. 856A. ENHANCED ACCOUNTABILITY FOR FEDERAL ASSISTANCE.

    ``(a) Recipients of Federal Assistance.--
            ``(1) In general.--Each State, local, tribal, and nonprofit 
        entity that receives Federal assistance funds in response to 
        acts of terrorism, natural disasters, or other emergencies 
        shall report to the pertinent Federal agency 6 months after the 
        initial disbursement of resources regarding the expenditure of 
        such funds.
            ``(2) Contents.--The report shall include a description 
        of--
                    ``(A) the projects or programs that received 
                Federal assistance;
                    ``(B) the entity administering the program or 
                project; and
                    ``(C) the dates and amounts disbursed, allocated, 
                and expended.
            ``(3) Minimizing reporting burden.--The Director of the 
        Federal Emergency Management Agency shall determine whether the 
        requirement to report under this section is duplicative of or 
        can be combined with other reporting requirements and, if so, 
        the Director shall combine such requirements and eliminate such 
        duplication.
    ``(b) Federal Assistance Disbursing Agencies.--
            ``(1) In general.--Each Federal agency that disburses 
        Federal assistance funds in response to an act of terrorism, 
        natural disaster, or other emergency shall submit to the 
        Inspector General of the Department, acting in the Inspector 
        General's role as chairman of the President's Council on 
        Integrity and Efficiency Homeland Security Roundtable, a report 
        on the expenditure of such funds.
            ``(2) Contents.--Each report required under paragraph (1) 
        shall include--
                    ``(A) names and addresses of recipient agencies;
                    ``(B) the purpose for which resources were 
                provided;
                    ``(C) the amounts disbursed, allocated, and 
                expended; and
                    ``(D) the status of reporting by agencies that 
                received disbursements (as set forth under subparagraph 
                (A)).
            ``(3) Deadline.--Each report submitted under paragraph (1) 
        shall be submitted not later than one year after the date of 
        the enactment of the appropriations Act that makes available 
        the Federal assistance funds covered by the report, and on a 
        recurrent basis every 6 months thereafter until such time as 
        all such funds are expended or the Inspector General and such 
        Council determine that such reports are no longer required.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item related to section 856 
the following:

``Sec. 856a. Enhanced accountability for Federal assistance.''.

SEC. 5. ENHANCED INFORMATION SHARING AMONG FEDERAL AGENCIES TO PREVENT 
              WASTE, FRAUD, AND ABUSE.

     (a) In General.--The Homeland Security Act of 2002 is further 
amended by inserting after section 856a the following:

``SEC. 856B. ENHANCED INFORMATION SHARING AMONG FEDERAL AGENCIES TO 
              PREVENT WASTE, FRAUD, AND ABUSE.

    ``(a) Confirmation of Identity and Eligibility of Applicants.--Any 
Federal, State, local, or tribal agency that disburses Federal grants, 
loans, services, and other assistance in response to or for the 
recovery from acts of terrorism, natural disasters, or other 
emergencies shall make reasonable efforts to confirm the identity and 
eligibility of the applicant for such assistance without placing undue 
burden on the applicant.
    ``(b) Consent to Access.--
            ``(1) Inclusion on application materials.--The Federal, 
        State, local, or tribal agency may include provisions on 
        application materials for grants, loans, services, and other 
        assistance that would allow access to Internal Revenue Service 
        information (IRS Form 8821 Tax Information Authorization) and 
        other relevant Federal databases, to allow government agencies 
        to share information and enhance the accuracy and expedite the 
        delivery of assistance to applicants.
            ``(2) Consent not required.--Any applicant who declines to 
        consent to the sharing of such information shall not be denied 
        assistance or otherwise penalized for that reason.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by inserting after the item related to 
section 856a the following:

``Sec. 856b. Enhanced information sharing among Federal agencies to 
                            prevent waste, fraud, and abuse.''.

SEC. 6. DEPUTY INSPECTOR GENERAL FOR RESPONSE AND RECOVERY.

     (a) In General.--Subtitle B of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 371) is amended by adding at the end the 
following:

``SEC. 813. DEPUTY INSPECTOR GENERAL FOR RESPONSE AND RECOVERY.

    ``(a) Establishment.--There is established the position of Deputy 
Inspector General for Response and Recovery within the Office of the 
Inspector General of the Department.
    ``(b) Appointment.--The Deputy Inspector General shall be 
appointed--
            ``(1) by the Inspector General of the Department; and
            ``(2) solely on the basis of integrity and demonstrated 
        ability in accounting, auditing, financial analysis, law, 
        management analysis, public administration, or investigations.
    ``(c) Reporting and Status as SES Position.--The Deputy Inspector 
General shall--
            ``(1) report to, and be under the direct authority and 
        supervision of, the Inspector General; and
            ``(2) serve as a career member of the Senior Executive 
        Service.
    ``(d) Duties.--
            ``(1) Audits and investigations.--The Deputy Inspector 
        General shall, in coordination with Inspectors General of other 
        departments, as appropriate, conduct, supervise, and coordinate 
        audits and investigations of the treatment, handling, and 
        expenditure of amounts appropriated or otherwise made available 
        for response to and recovery from an act of terrorism, natural 
        disaster, or other emergency by the Federal Government, and of 
        the programs, operations, and contracts carried out utilizing 
        such funds, including--
                    ``(A) the oversight and accounting of the 
                obligation and expenditure of such funds;
                    ``(B) the monitoring and review of reconstruction 
                activities funded by such funds;
                    ``(C) the monitoring and review of contracts by 
                such funds;
                    ``(D) the monitoring and review of the transfer of 
                such funds and associated information between and among 
                departments, agencies, and entities of the United 
                States, and private nongovernmental entities; and
                    ``(E) the maintenance of records on the use of such 
                funds to facilitate future audits and investigations of 
                such funds.
            ``(2) Fraud tip line.--The Deputy Inspector General shall 
        ensure that not more than 48 hours after a terrorist attack, 
        natural disaster, or other national emergency, the Office of 
        the Inspector General institutes and publicizes a fraud tip 
        line to facilitate the collection of allegations of waste, 
        fraud, and abuse of Federal assistance funds.
            ``(3) Avoidance of duplication.--The Deputy Inspector 
        General shall ensure, to the greatest extent possible, that the 
        activities of the Deputy Inspector General do not duplicate 
        audits and investigations of Inspectors General and other 
        auditors of Federal departments and agencies, and State and 
        local government entities.
            ``(4) Coordination with fbi.--The Deputy Inspector General 
        shall ensure that investigative activities under this section 
        are coordinated with the Federal Bureau of Investigation.
    ``(e) Financial Management Matters.--In order to assist the Deputy 
Inspector General for the purposes of carrying out this section, all 
agencies receiving or distributing Federal funds to respond to acts of 
terrorism, natural disasters, or other emergencies shall establish and 
maintain budgetary procedures to distinguish funds related to response 
and relief efforts from other agency funds.
    ``(f) Funding.--There is authorized to be appropriated for 
operations of the Office of the Deputy Inspector General $11,000,000 
for each fiscal year.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item related to section 812 
the following:

``Sec. 813. Deputy Inspector General for Response and Recovery.''.
    (c) Deadline for Appointment.--The Inspector General of the 
Department of Homeland Security shall appoint the Deputy Inspector 
General under this section not later than 60 days after the date of 
enactment of this Act.
                                 <all>