I 111th CONGRESS 1st Session H. R. 1472 IN THE HOUSE OF REPRESENTATIVES March 12, 2009 Mrs. Blackburn (for herself, Mr. Hunter, Mr. Gohmert, Mr. Kline of Minnesota, Mr. Chaffetz, Mr. Lamborn, Mr. Conaway, Mr. Gingrey of Georgia, Mr. Culberson, Mr. Manzullo, Mr. Smith of Texas, Mr. Akin, Mr. Wamp, Mr. Latta, Ms. Fallin, Mr. Bishop of Utah, Mr. Olson, Mr. McClintock, Mr. Fleming, Mr. Pitts, Mr. Bartlett, Mr. Shadegg, Mr. Franks of Arizona, and Mr. Burton of Indiana) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, 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 establish reporting requirements each time funds from Troubled Assets Relief Program or the American Recovery and Reinvestment Act of 2009 are received or redistributed, and to establish a waste, fraud, and abuse hotline for such funds, and for other purposes.

1.

Short title

This Act may be cited as the TARP and ARRA Reporting and Waste Prevention Act.

2.

Reporting requirement

(a)

In general

Every public or private entity shall, no later than 30 days after receiving or redistributing any funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009, submit a report to the Secretary of the Treasury detailing such receipt or redistribution. (b)

Report details

Each report required by subsection (a) shall include, with respect to the funds received or redistributed, and to the extent the information is available— (1)the amount of such funds; (2)for funds being redistributed, the public or private entity receiving such funds; (3)the specific provision or provisions of title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009 under which such funds were authorized; (4)the specific purpose for which such funds are being received or redistributed, including— (A)what geographic area such funds are intended for; and (B)the specific details on how such funds will be used; (5)copies of any contracts entered into by the public or private entity for projects or services that will be funded in whole or in part by such funds; and (6)such other information as the Secretary of the Treasury may require. (c)

Separate report on contracts

Any public or private entity that enters into a contract described in subsection (b)(5) shall, no later than 30 days after the date such contract is entered into, and every 30 days thereafter until all performance under the contract has been completed, submit a report to the Secretary of the Treasury detailing— (1)the amount of funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009 that have been expended by such public or private entity in furtherance of the contract; (2)the specific details of how such funds were expended and how such expenditures furthered the fulfillment of the contract terms; (3)how many jobs were created by the expenditure of such funds and the average cost to the public or private entity of creating such jobs; and (4)in which geographic areas such funds were expended. (d)

Treatment of commingled funds

For purposes of this section, any funds that are commingled with funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009, such that the source of any particular funds within the commingled funds cannot be identified, shall be treated as funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009. (e)

Regulations

A report required under subsection (a) shall be made in such manner and form as the Secretary of the Treasury may prescribe by regulation. Such regulation shall be issued no later than 30 days after the date of the enactment of this Act. (f)

No reporting for certain tax benefits

No report shall be required under subsection (a) for funds received by a public or private entity under any provision of title I of division B of the American Recovery and Reinvestment Act of 2009. (g)

Requirement for giving notice when redistributing funds

Any public or private entity that redistributes any funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009 to another public or private entity must give such public or private entity notice— (1)that such funds are a redistribution of funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009; and (2)that such public or private entity may be required to submit a report upon the receipt or redistribution of such funds pursuant to section 2(a) of the TARP and ARRA Reporting and Waste Prevention Act. (h)

Penalty for non-compliance by a private entity

(1)

In general

A private entity that fails to submit a report required under subsection (a) may not enter into any contract to provide property or services to any Federal agency or department, and may not receive any grants, loans, or other funds from any Federal agency or department, if— (A)the failure to submit such report was intentional; and (B)The heads of the private entity knew, within the 30-day window for submitting such report, that such report was required to be submitted under this section. (2)

Heads of the private entity defined

For purposes of this subsection, the term heads of the private entity means, if applicable— (A)the board of directors of the private entity; (B)the officers of the private entity; and (C)the partners of the private entity. (i)

Definitions

For purposes of this section: (1)

Public or private entity

The term public or private entity means— (A)any Federal agency or department; (B)any agency or department of a State government; (C)any agency or department of a political subdivision of a State; and (D)any private entity, other than an individual. (2)

Redistributed

With respect to funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009, the term redistributed means the distribution of such funds by a public or private entity to another public or private entity. Notwithstanding the previous sentence, the term redistribution shall not include— (A)distributions made to purchase equipment or other supplies; or (B)distributions made for services that are merely incidental to the purchase of equipment or other supplies. (j)

Effective date

This section shall take effect, with respect to the reporting requirement of subsections (a) and (c), 60 days after the date of the enactment of this Act.

3.

Federal database

(a)

Establishment

The Secretary of the Treasury shall establish a database to hold all information reported to the Secretary under section 2. (b)

Availability

The Secretary shall, in coordination with the Recovery Accountability and Transparency Board, make the information in the database available to the public on the website recovery.gov, and in a manner that allows members of the public to easily access such information.

4.

Waste, fraud, and abuse hotline

(a)

In general

The Secretary of the Treasury shall establish, publicize, and operate a national toll-free telephone number to serve as a hotline for members of the public to report waste, fraud, or abuse related to funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009. (b)

Report

Not later than 90 days after the date of the enactment of this Act, and quarterly thereafter, the Secretary of the Treasury shall issue a report to the Congress containing— (1)a description of the Secretary’s compliance with subsection (a); and (2)a description of the actions the Secretary is taking to address instances of waste, fraud, or abuse reported to the hotline. (c)

Whistleblower protection

(1)

In general

No company, or any officer, employee, contractor, subcontractor, or agent of such company, may discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the employee— (A)to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes waste, fraud, or abuse related to funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009, where such waste, fraud, or abuse was reported to the hotline established under subsection (a); or (B)to file, cause to be filed, testify, participate in, or otherwise assist in a proceeding filed or about to be filed (with any knowledge of the employer) relating to alleged waste, fraud, or abuse related to funds distributed under title I of the Emergency Economic Stabilization Act of 2008 or the American Recovery and Reinvestment Act of 2009, where such alleged waste, fraud, or abuse was reported to the hotline established under subsection (a). (2)

Enforcement action

(A)

In general

A person who alleges discharge or other discrimination by any person in violation of paragraph (1) may seek relief under paragraph (3), by— (i)filing a complaint with the Secretary of Labor; or (ii)if the Secretary has not issued a final decision within 180 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy. (B)

Procedure

(i)

In general

An action under subparagraph (A)(i) shall be governed under the rules and procedures set forth in section 42121(b) of title 49, United States Code. (ii)

Notification Exception

Notification made under section 42121(b)(1) of title 49, United States Code, shall be made to the person named in the complaint and to the employer. (iii)

Burdens of proof

An action brought under subparagraph (A)(ii) shall be governed by the legal burdens of proof set forth in section 42121(b) of title 49, United States Code. (iv)

Statute of limitations

An action under subparagraph (A) shall be commenced not later than 90 days after the date on which the violation occurs. (3)

Remedies

(A)

In general

An employee prevailing in any action under paragraph (2)(A) shall be entitled to all relief necessary to make the employee whole. (B)

Compensatory damages

Relief for any action under subparagraph (A) shall include— (i)reinstatement with the same seniority status that the employee would have had, but for the discrimination; (ii)the amount of back pay, with interest; and (iii)compensation for any special damages sustained as a result of the discrimination, including litigation costs, expert witness fees, and reasonable attorney fees. (4)

Rights retained by employee

Nothing in this subsection shall be deemed to diminish the rights, privileges, or remedies of any employee under any Federal or State law, or under any collective bargaining agreement.

5.

Recovery Accountability and Transparency Board requests of inspector generals for audits or inspections

Section 1527(b) of the American Recovery and Reinvestment Act of 2009 is amended by striking and the inspector general rejects and all that follows through the end of the subsection and inserting , the Board shall make such request available to the public on the website recovery.gov..