[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7671 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7671
To provide for the establishment of a COVID-19 Small Business Recovery
Fund, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 20, 2020
Mr. Vela (for himself and Mr. Gooden) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To provide for the establishment of a COVID-19 Small Business Recovery
Fund, and for other purposes.
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 ``Small Business Comeback Act''.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Applicant.--The term ``applicant'' means a business
filing an application for recovery compensation under this Act.
(2) Business.--The term ``business'' is intended broadly to
refer to any type of for-profit business concern, nonprofit
organization, veteran's organization, or Tribal business
concern, and shall include individuals who operate under a sole
proprietorship or as an independent contractor, and eligible
self-employed individuals.
(3) Collateral source.--The term ``collateral source''
means all compensation received by the applicant as a result of
the losses for which the applicant is seeking compensation
under this Act, including payments by Federal, State, or local
governments, related to losses arising from the COVID-19
pandemic.
(4) COVID-19 pandemic.--The term ``COVID-19 pandemic''
means the national emergency proclaimed by the President on
March 13, 2020.
(5) Eligible applicants.--The term ``eligible applicants''
means any type of for-profit business concern, nonprofit
organization, veteran's organization, or Tribal business
concern, and shall include individuals who operate under a sole
proprietorship or as an independent contractor, and eligible
self-employed individuals.
(6) Eligible self-employed individual.--The term ``eligible
self-employed individual'' has the meaning given the term in
section 7002(b) of the Families First Coronavirus Response Act
(Public Law 116-127).
(7) Financial institution.--The term ``financial
institution'' means any institution the business of which is
engaging in financial activities as described in section 4(k)
of the Bank Holding Company Act (12 U.S.C. 1843(k)).
(8) Low-to-moderate income community.--The term ``low-to-
moderate income community'' means a census tract where the
annualized family income of the households or residents in the
census tract are below 80 percent of the HUD median income for
the county where the census tract is located.
(9) Minority-owned business.--The term ``minority-owned
business'' shall have the same meaning given the term under
section 342(g)(4) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5452(g)(4)).
(10) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(11) Special administrator.--The term ``Special
Administrator'' means the Special Administrator appointed under
this Act.
(12) State.--The term ``State'' means any State of the
United States, the Commonwealth of Puerto Rico, the District of
Columbia, the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, each of the United States Virgin Islands,
and any territory or possession of the United States.
(13) United states.--The term ``United States'' means the
several States and includes the territorial sea and the
continental shelf of the United States, as those terms are
defined in the Violent Crime Control and Law Enforcement Act of
1994 (18 U.S.C. 2280, 2281).
(14) Women-owned business.--The term ``women-owned
business'' shall have the same meaning given the term under
section 342(g)(6) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5452(g)(6)).
SEC. 3. PURPOSE.
(a) It is the purpose of this Act to ensure domestic economic
recovery from the COVID-19 pandemic by ensuring that businesses in
impaired sectors can resume their function as strong engines of the
economy and employers by--
(1) offsetting operating expenses for businesses that are
partially or completely shut down as a result of COVID-19
related closures, and supporting employers' ability to retain
employees and rehire employees laid off as a result of the
COVID-19 pandemic;
(2) encourage businesses to reopen by providing them the
necessary assistance and resources to survive the COVID-19
pandemic;
(3) assisting employees of eligible employers who have
contracted or have been exposed during their employment to
COVID-19, who are unable to work and who would otherwise not be
eligible for assistance;
(4) providing support for small businesses and women- and
minority-owned businesses; and
(5) providing assistance in a manner that complements the
assistance programs established under the Coronavirus Aid,
Relief, and Economic Security Act (Public Law 116-136).
(b) Any funds paid to an applicant under this Act shall be used
exclusively for the purpose of domestic economic recovery as set forth
in subsection (a).
(c) Prioritization.--The Special Administrator shall prioritize
compensation payments under this Act, based on--
(1) the level of impairment a business is experiencing as a
result of the COVID-19 pandemic;
(2) whether the business operates in a rural or low-to-
moderate income community, as determined by the Special
Administrator;
(3) whether the business is a women-owned business or a
minority-owned business; and
(4) whether the business is a small business, including an
independently owned franchise, as determined by the Special
Administrator.
SEC. 4. ADMINISTRATION.
(a) In General.--The Secretary shall appoint a Special
Administrator on the basis of integrity and demonstrated ability in
accounting, auditing, financial analysis, law, management analysis, or
public administration, and acting through such Special Administrator,
shall--
(1) administer the recovery compensation program
established under this Act;
(2) promulgate all procedural and substantive rules for the
administration of this Act; and
(3) employ and supervise hearing officers and other
administrative personnel to perform the duties of the Special
Administrator under this Act.
(b) Recovery Compensation Services.--To the extent the Special
Administrator determines is necessary to implement the provisions of
this Act in a timely manner, the Special Administrator is authorized to
contract with third parties to review business applications, recommend
compensation determinations, arrange payments, and perform audits on
behalf of the Special Administrator. Any third party contracting to
provide recovery compensation services pursuant to this subsection
shall be compensated on a cost basis pursuant to guidelines established
by the Special Administrator in consultation with the Oversight Board.
(c) Limitation of Liability.--
(1) The provisions of this Act and the services provided
under subsection (b) shall be enforced by the Secretary. Any
party contracting with the Special Administrator to assist in
recovery compensation services pursuant to subsection (b) shall
not bear any liability for the performance of such duties
except for gross negligence, willful misconduct, or fraud.
(2) There shall be no liability imposed on any party for
not contracting with the Special Administrator as described in
paragraph (1). Any financial institution not contracting with
the Special Administrator that provides assistance or
information to an applicant with respect to the compensation
program established under this Act without receiving
compensation for providing such assistance or information shall
not bear any liability for the provision of such assistance or
information except for gross negligence, willful misconduct, or
fraud, provided that nothing in this subsection shall be
construed to alter any duty or obligation owed by such party to
an applicant under otherwise applicable State or Federal law or
by agreement with the applicant.
(3) State laws or regulations conflicting with the
directions of the Special Administrator pursuant to subsection
(b) are preempted to the extent of such actual or implied
conflict.
(4) Governing law and jurisdiction.--The district courts of
the United States shall have original and exclusive
jurisdiction over any action arising out of a contract
described in subsection (b).
(d) Confidentiality.--
(1) Retention of privilege.--The submission of any
nonpublicly available data and information by an applicant to
the Special Administrator under this Act shall not constitute a
waiver of, or otherwise affect, any privilege arising under
Federal or State law (including the rules of any Federal or
State court) to which the data or information is otherwise
subject.
(2) Continued application of prior confidentiality
agreements.--Any requirement under Federal or State law to the
extent otherwise applicable, or any requirement pursuant to a
written agreement in effect between an applicant and any third
party which provides an applicant's nonpublicly available data
or information to the Special Administrator, regarding the
privacy or confidentiality of any data or information in the
possession of the third party, shall continue to apply to such
data or information after the data or information has been
provided to the Special Administrator under this Act.
(3) The Special Administrator, and any third party which
obtains an applicant's nonpublicly available data or
information, is prohibited from sharing or selling such
information except as required by law. The Special
Administrator or third party may share information as necessary
to meet the obligations under this Act, so long as the third
party agrees in writing to maintain the confidentiality of the
information.
(e) Audit Authority.--
(1) In general.--The Secretary, and the Special Inspector
General established by this Act, shall have access, for
purposes of audit, to the records and other pertinent documents
of the Special Administrator, any third party described in
subsection (b), and any applicant, including with respect to
collateral source records and documents, used in carrying out
this Act.
(f) Reports.--
(1) In general.--The Special Administrator shall submit
weekly reports to Congress that shall include--
(A) a listing of the eligible businesses receiving
recovery compensation under this Act;
(B) a listing of each contract the Special
Administrator made with third-party service providers
under subsection (b), including information with
respect to the services being provided under such
contracts;
(C) a listing of all outstanding appeals of
compensation determinations; and
(D) an estimate of the total amount of recovery
compensation payments made under this Act that is
current as of the date on which the report is
submitted.
(2) Timing.--The reports required under this subsection
shall be submitted not later than 7 calendar days after the
date that recovery compensation is first paid under this Act,
and every 7 calendar days thereafter.
(g) Special Administrator.--The Special Administrator shall be
subject to the prohibition on acts affecting personal financial
interest under section 208 of title 18, United States Code, and shall
be subject to limitations on outside employment and outside income
pursuant to title V of the Ethics in Government Act of 1978 (5 U.S.C.
App.).
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to pay the administrative
and support costs for the Special Administrator (including the
contracts described in subsection (b)) in carrying out this Act.
SEC. 5. DETERMINATION OF ELIGIBILITY FOR RECOVERY COMPENSATION.
(a) Filing of Application for Recovery Compensation Claim.--
(1) In general.--An applicant may file an application for
recovery compensation under this Act with the Special
Administrator. Except as provided under paragraph (3), the
application for recovery compensation shall be on the form
developed under paragraph (2) and shall state the factual basis
for eligibility for recovery compensation and the amount of
recovery compensation sought.
(2) Application form.--
(A) In general.--
(i) The Special Administrator shall develop
an application form that shall be simple to
file and audit for fraud that applicants shall
use when submitting applications under
paragraph (1).
(ii) The Special Administrator shall ensure
that the form described in clause (i) can be
filed electronically, if determined to be
practicable.
(B) Multiple languages.--The form developed under
subparagraph (A) shall be made available in English and
Spanish, and the Special Administrator may prioritize
translation of the form into additional languages in
order to serve the broadest pool of applicants.
(C) Contents.--The form developed under
subparagraph (A) shall require that an applicant
disclose all known collateral compensation, and shall
request information on the applicant's impairment that
the Special Administrator deems necessary, including
information relating to the applicant's expenses,
payroll, and loss of revenue due to the COVID-19
pandemic.
(D) Expenses, payroll, and lost revenue.--In
developing the contents of the form under subparagraph
(C), the Special Administrator may consider requiring
information on payroll, operating expenses, lost
revenue, and payments to employees with potential
COVID-19-related illness. Such information required may
include--
(i) the average total monthly payments by
the applicant for payroll, payroll support
(including paid sick, medical, or family leave,
and costs related to the continuation of group
health care benefits during those periods of
leave) during the 18-month period before March
13, 2020, except that, in the case of an
applicant that is a seasonal employer, as
determined by the Special Administrator, the
average total monthly payments for payroll and
payroll support shall be for the period
beginning March 1, 2019, and ending June 30,
2019;
(ii) the average total monthly payments by
the applicant for mortgage payments, rent
payments, utilities, insurance payments, and
payments on any debt obligations incurred prior
to July 1, 2020, during the 18-month period
before July 1, 2020;
(iii) to the extent that the Special
Administrator is making available recovery
compensation for lost revenue, the average
monthly revenue, including unpaid accounts
receivable, that does not include net profits
for the applicant during the 18-month period
before the date on which the application for
recovery compensation is submitted; and
(iv) the wages, salary, or other payments
made to employees who are unable to work
because they tested positive for or were
exposed to COVID-19.
(E) Confidential business information.--To the
extent the information in the application is non-public
information, the contents shall be deemed Confidential
Business Information not subject to disclosure.
(3) Interim application filing.--During the period
beginning on the date of enactment of this Act and ending on
the date on which regulations are promulgated under this Act,
an applicant may file with the Special Administrator an interim
application for immediate relief without the use of an approved
form, provided the application includes information described
in subparagraph (C) of paragraph (2) of this subsection.
(4) Limitation.--No application may be filed under
paragraph (1), or paid by the Special Administrator, with
respect to losses accrued after the termination of the national
emergency proclaimed by the President on March 13, 2020. Within
a reasonable time after such termination, and subject to the
provisions of this Act, the Special Administrator shall notify
Congress of the expected closure of the program established
under this Act, while ensuring that all applications filed
prior to the termination of the national emergency receive due
consideration.
(5) New businesses.--The Special Administrator shall
provide guidelines on how applicants that are operating new
entities before March 13, 2020, shall substantiate their
Expenses, Payroll, and Lost Revenue.
(b) Review and Determination.--
(1) Review.--The Special Administrator shall review an
application submitted under subsection (a)(1) and determine--
(A) whether the applicant is an eligible applicant
under subsection (c); and
(B) the amount of recovery compensation the
eligible applicant shall receive, on a monthly basis,
based on what is necessary to maintain continuity of
operations for the applicant with respect to paying
expenses and payroll and compensating for lost revenue
as described in subparagraph (D) of subsection (a)(2);
provided that--
(i) the amount of recovery compensation the
eligible applicant receives shall be adjusted
each month to take into account increases or
decreases in such applicant's revenue over the
previous month;
(ii) the total amount of recovery
compensation to which the applicant is entitled
based on this subparagraph shall take into
account the amount of any interim compensation
awarded to the applicant pursuant to paragraph
(2); and
(iii) the maximum amount of recovery
compensation to which an eligible applicant may
be entitled shall be the lesser of--
(I) the applicant's average total
monthly expense payments, as determined
under subparagraph (C), for a period
not to exceed 4 months in aggregate;
and
(II) $50,000,000.
(C) Average total monthly expense payments.--For
purposes of clause (iii) of subparagraph (B), an
applicant's average total monthly expense payments
shall be the average monthly payments by the applicant
during the 1 year prior to the date on which an
application is made (or in the case of a seasonal
business or new business, a period determined by the
Special Administrator), for--
(i) payroll costs;
(ii) costs related to the continuation of
group health care benefits during periods of
paid sick, medical, or family leave;
(iii) any insurance premiums;
(iv) employee salaries, commissions, or
similar compensations, except that recovery
compensation may not be used for the
compensation of an individual employee in
excess of an annual salary of $100,000, as
prorated for the relevant compensation period;
(v) payments of interest on any mortgage
obligation (which shall not include any
prepayment of or payment of principal on a
mortgage obligation);
(vi) rent (including rent under a lease
agreement);
(vii) utilities;
(viii) loan repayment obligations incurred
by the applicant pursuant to section 1102 of
the Coronavirus Aid, Relief, and Economic
Security Act (Public Law 116-136);
(ix) loan repayment obligations incurred by
the applicant pursuant to a disaster loan
authorized under section 7(b) of the Small
Business Act (15 U.S.C. 636(b));
(x) interest on any other debt obligations
that were incurred before March 1, 2020; and
(xi) State and local tax obligations.
(2) Interim applications review.--The Special Administrator
shall review an interim application submitted under subsection
(a)(3) and determine--
(A) whether the applicant is an eligible applicant
under subsection (c); and
(B) with respect to an applicant determined to be
an eligible applicant, the amount of interim
compensation to which an eligible applicant is entitled
under subparagraph (C).
(C) Interim compensation amount.--An eligible
applicant under this paragraph shall be entitled to
interim compensation in such amounts as determined by
the Special Administrator not to exceed, as calculated
under subparagraph (C) of paragraph (1)--
(i) in the case of an applicant with
average monthly payments in excess of
$1,000,000, 25 percent of such payments;
(ii) in the case of an applicant with
average monthly payments in excess of $100,000
but less than $1,000,000, 50 percent of such
payments; and
(iii) in the case of an applicant with
average monthly payments of $100,000 or less,
75 percent of such payments.
(3) Determinations.--A determination under this subsection
shall be final and not subject to judicial review.
(A) As soon as practicable, and for applications
given priority by the Special Administrator under this
Act, not later than 30 calendar days after that date on
which an application is filed under subsection (a)(1),
the Special Administrator shall either request more
information from the applicant or complete a review and
make a determination pursuant to paragraph (1) of this
subsection, and provide written notice to the
applicant, with respect to the matters that were the
subject of the application for recovery compensation
under review. If the Special Administrator requests
additional information pursuant to this subparagraph,
the Special Administrator shall absent exigent
circumstances make its determination pursuant to
paragraph (1) of this subsection within 30 calendar
days of receiving a response to its request for more
information.
(B) Not later than 15 calendar days after the date
on which an interim application is filed under
subsection (a)(3), the Special Administrator shall
complete a review and make a determination on interim
compensation pursuant to paragraph (2) of this
subsection, and provide written notice to the applicant
with respect to that determination.
(4) Collateral sources.--In determining the amount of
recovery compensation to be paid to an applicant under
paragraph (1)(B) the Special Administrator shall consider the
amount of the collateral source compensation the applicant
received or the value of collateral source compensation the
applicant is reasonably certain to receive as a result of the
COVID-19 pandemic.
(5) Appeals.--The Special Administrator shall promulgate
regulations establishing a procedure by which an applicant may
appeal directly to the Special Administrator an eligibility or
compensation determination with respect to such applicant made
under this Act. The United States Court of Federal Claims shall
have exclusive jurisdiction of an appeal from a final
determination by the Special Administrator under this Act.
(6) Rights of an applicant.--In all matters related to its
application, an applicant shall have the right to be
represented by an attorney. Notwithstanding any contract, a
representative of an applicant may not charge, for services
rendered in connection with an application under this Act, more
than 10 percent of the difference between--
(A) the initial amount of recovery compensation
awarded to such applicant as determined by the Special
Administrator under paragraph (3); and
(B) the final amount of recovery compensation
awarded to such applicant after any appeal of such
determination.
(c) Eligibility.--
(1) In general.--An applicant shall be determined to be an
eligible applicant for purposes of this subsection if the
Special Administrator determines that such applicant--
(A) is a business or organization in an impaired
sector as defined by the Special Administrator,
including 501c(6) organizations;
(B) is a business or organization that is created
or organized in the United States or under the laws of
the United States and has significant operations in,
and a majority of its employees based in, the United
States;
(C) is not eligible for loans or loan guarantees
under subsection (b)(1), (b)(2), or (b)(3) of section
4003 of the Coronavirus Aid, Relief, and Economic
Security Act (Public Law 116-136);
(D) in the case of an applicant that has received a
loan under section 1102 of the Coronavirus Aid, Relief,
and Economic Security Act (Public Law 116-136), has
complied with all applicable borrower repayment
obligations under such loan;
(E) is not registered with the Securities and
Exchange Commission as a Family Office pursuant to
section 275.202(a)(11)(G)-1 of title 17, Code of
Federal Regulations;
(F) to the extent not otherwise eligible under this
paragraph, any business utilizing business format
franchising as a franchisor or franchisee under part
436 of title 16, Code of Federal Regulations or a
business concern operating as a franchisor or
franchisee that is assigned a franchise identifier code
by the Small Business Administration; and
(G) meets the requirements of paragraph (2).
(2) Requirements.--
(A) An applicant shall not be determined to be an
eligible applicant by the Special Administrator unless
the applicant--
(i) was in operation on March 1, 2020;
(ii) was not a debtor concerning which an
active case under title 11, United States Code,
had been commenced prior to March 1, 2020; and
(iii) to the extent the applicant is
seeking recovery compensation for payroll and
payroll support as described in this Act, had
employees for whom the applicant paid salaries
or wages, and payroll taxes.
(B) An applicant requesting recovery compensation
for losses described under this Act shall not be
eligible for such compensation unless the applicant
continued to pay salaries or wages to such employees,
or will otherwise provide relief received under
subsection (a)(2)(D) to such employees, who--
(i) tested positive for COVID-19; or
(ii) were exposed to COVID-19 in the
workplace.
(C) Single application.--Not more than one
application may be submitted under this Act by an
applicant, except that, for purposes of this
subparagraph--
(i) an eligible applicant that submitted an
interim application under subsection (a)(3)
shall remain eligible to file an application
for recovery compensation under subsection
(a)(1);
(ii) in the event the Secretary notifies
Congress of a renewed COVID-19 threat under
this Act, an eligible applicant shall remain
eligible to file a renewal or updated version
of a previously filed application; and
(iii) pursuant to guidelines to be
established by the Special Administrator,
related entities may submit a joint
application.
SEC. 6. PAYMENTS TO ELIGIBLE APPLICANTS.
(a) In General.--As soon as practicable, but not later than 5
calendar days after the date on which a determination is made by the
Special Administrator regarding the amount of recovery compensation or
interim compensation due to an applicant under this Act, the Special
Administrator shall authorize payment to such applicant of the amount
determined with respect to the applicant.
(b) Allowable Uses of Recovery Compensation.--
(1) In general.--An eligible applicant may use recovery
compensation proceeds only for--
(A) payroll costs;
(B) costs related to the continuation of group
health care benefits during periods of paid sick,
medical, or family leave;
(C) any insurance premiums;
(D) employee salaries, commissions, or similar
compensations, except that recovery compensation may
not be used for the compensation of an individual
employee in excess of an annual salary of $100,000, as
prorated for the relevant compensation period;
(E) payments of interest on any mortgage obligation
(which shall not include any prepayment of or payment
of principal on a mortgage obligation);
(F) rent (including rent under a lease agreement);
(G) utilities;
(H) loan repayment obligations incurred by the
applicant pursuant to section 1102 of the Coronavirus
Aid, Relief, and Economic Security Act (Public Law 116-
136);
(I) loan repayment obligations incurred by the
applicant pursuant to a disaster loan authorized under
section 7(b) of the Small Business Act (15 U.S.C.
636(b));
(J) interest on any other debt obligations that
were incurred before March 1, 2020; and
(K) Federal, State, and local tax obligations.
(2) Certification on use of funds.--As a condition for
receipt of recovery compensation under this Act, an eligible
applicant shall make a good-faith certification that--
(A) the uncertainty of economic conditions as of
the date of the application makes necessary the
recovery compensation request to support the ongoing
operations of the applicant;
(B) the funds the applicant receives will be used
to retain at least 90 percent of the applicant's
workforce as of the date of application, at full
compensation and benefits, for the period that they
receive compensation;
(C) the applicant intends to restore compensation
and benefits to not less than 75 percent of the
workforce of the applicant that existed as of March 1,
2020, no later than 4 months after the termination date
of the public health emergency declared by the
Secretary of Health and Human Services on January 31,
2020, under section 319 of the Public Health Service
Act (42 U.S.C. 247d) in response to COVID-19;
(D) the applicant is an entity or business that is
created or organized in the United States or under the
laws of the United States and has significant
operations in, and a majority of its employees based
in, the United States; and
(E) the funds the applicant receives will not be
used for a restricted purpose under subsection (c).
(c) Restrictions.--The Special Administrator shall make a payment
of recovery compensation to an applicant only if such applicant
agrees--
(1) until the date 12 months after the date on which the
payment is made, not to repurchase an equity security that is
listed on a national securities exchange of the applicant or
any parent company of the applicant, except to the extent
required under a contractual obligation that is in effect as of
the date of enactment of this Act;
(2) until the date 12 months after the date on which the
payment is made, not to pay dividends or make other capital
distributions with respect to the common stock of the
applicant, during the eligible period a recipient that is an S
corporation or passthrough entity may provide a distribution to
pay tax obligations; and
(3) no funds received by the applicant may be used for
payment of an expense to a foreign person which is a related
party of the applicant to which a deduction is allowable under
chapter 1 of the Internal Revenue Code of 1986.
(d) Final Netting.--
(1) In general.--Not later than 6 months after the end of
an eligible applicant's covered period, an eligible applicant
shall report, pursuant to rules prescribed by the Special
Administrator, a final accounting of all eligible operating
costs incurred during the covered period, and all eligible
revenue received during the covered period.
(2) Review.--The Special Administrator shall determine,
based on a report submitted under paragraph (1), whether an
applicant received any excess recovery compensation under this
title during the covered period.
(3) Overpayments.--To the extent an eligible applicant
received excess recovery compensation as determined by the
Special Administrator, an eligible applicant shall return such
excess recovery compensation to the Treasury in a manner
prescribed by the Special Administrator.
(e) Payment Authority.--This Act constitutes budget authority in
advance of appropriations Acts and represents the obligation of the
Federal Government to provide for the payment of amounts for
compensation under this Act.
SEC. 7. REGULATIONS.
Not later than 30 calendar days after the date of enactment of this
Act, the Secretary, in consultation with the Special Administrator,
shall promulgate regulations to carry out this Act, including
regulations with respect to--
(1) forms to be used in submitting applications under this
Act;
(2) the information to be included in such forms;
(3) procedures to assist an applicant in filing and
pursuing applications under this Act;
(4) the amount of the fee paid by the Special Administrator
for services provided under this Act; and
(5) other matters determined appropriate by the Secretary.
SEC. 8. PROGRAM RENEWAL FOR RESURGENCE OF CORONAVIRUS THREAT.
In the event that the Secretary determines that a resurgence of the
COVID-19 threat has resulted in economic conditions that warrant an
extension or renewal of recovery compensation assistance to businesses
under this Act, the Secretary shall--
(1) notify Congress of such determination no later than 2
calendar days after making such determination; and
(2) direct the Special Administrator to accept new and
updated applications for recovery compensation under this Act.
SEC. 9. SPECIAL INSPECTOR GENERAL FOR COVID-19 RECOVERY FUNDS.
(a) Office of Inspector General.--There is hereby established
within the Department of the Treasury the Office of the Special
Inspector General for COVID-19 Recovery Funds.
(b) Appointment of Inspector General; Removal.--
(1) In general.--The head of the Office of the Special
Inspector General for COVID-19 Recovery Funds shall be the
Special Inspector General for COVID-19 Recovery Funds (referred
to in this section as the ``Special Inspector General''), who
shall be appointed by the President, by and with the advice and
consent of the Senate.
(2) Nomination.--The nomination 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. The nomination of an individual as Special
Inspector General shall be made within 30 calendar days of
enactment of this Act.
(3) 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.), provided that such removal is made in concurrence with
the Congressional Oversight Board established under this Act.
(4) Political activity.--For purposes of section 7324 of
Act 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.
(5) Basic pay.--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, in accordance with section 4(b)(1) of the
Inspector General Act of 1978 (5 U.S.C. App.), conduct,
supervise, and coordinate audits and investigations of the
payment of recovery compensation by the Special Administrator
under this Act, and the administration of the provisions of
this Act by the Special Administrator, including by collecting
and summarizing the following information:
(A) A listing of the eligible businesses receiving
recovery compensation under this Act.
(B) An explanation of the reasons the Special
Administrator determined it to be appropriate to make
each recovery compensation determination.
(C) A listing of each contract the Special
Administrator made with third-party service providers
under this Act, including information with respect to
the fees and the services being provided under such
contracts.
(D) A current, as of the date on which the
information is collected, estimate of the total amount
of recovery compensation payments made under this Act.
(2) Maintenance of systems.--The Special Inspector General
shall establish, maintain, and oversee such systems,
procedures, and controls as the Special Inspector General
considers appropriate to discharge the duties of the Special
Inspector General under paragraph (1).
(3) Testimony.--The Special Inspector General shall make
reasonable efforts to comply with any request to appear before
a Committee of Congress for purposes of providing testimony
relating to the compensation program established under this
Act.
(4) Additional duties and responsibilities.--In addition to
the duties described, the Special 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 of the Special
Inspector General under subsection (c), the Special Inspector
General shall have the authorities provided in section 6 of the
Inspector General Act of 1978 (5 U.S.C. App.).
(2) Treatment of office.--The Office of the Special
Inspector General for COVID Recovery Funds shall be considered
to be an office described in section 6(f)(3) of the Inspector
General Act of 1978 (5 U.S.C. App.) and shall be exempt from an
initial determination by the Attorney General under section
6(f)(2) of that Act.
(e) Personnel, Facilities, and Other Resources.--
(1) Appointment of officers and employees.--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 that title, relating to
classification and General Schedule pay rates.
(2) Experts and consultants.--The Special Inspector General
may obtain services as authorized under 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 that title.
(3) Contracts.--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) Requests for information.--
(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 that department, agency, or
entity shall, to the extent practicable and not in
contravention of any existing law, furnish that
information or assistance to the Special Inspector
General, or an authorized designee.
(B) Refusal to provide requested information.--
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) Quarterly reports.--
(A) In general.--Not later than 60 calendar days
after the date on which the Special Inspector General
is confirmed, and once 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 3-month period ending on the date on
which the Special Inspector General submits the report.
(B) Contents.--Each report submitted under
subparagraph (A) shall include, for the period covered
by the report, a detailed statement of all recovery
compensation payments made under this Act, as well as
the information collected under subsection (c)(1).
(2) Rule of construction.--Nothing in this subsection may
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.
(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to pay the administrative
and support costs for the Special Inspector General to carry out this
section.
(h) Termination.--The Office of the Special Inspector General shall
terminate on the date that is 1 year after the closure of the Fund by
the Special Administrator under this Act.
(i) Council of the Inspectors General on Integrity and
Efficiency.--The Special Inspector General shall be a member of the
Council of the Inspectors General on Integrity and Efficiency
established under section 11 of the Inspector General Act of 1978 (5
U.S.C. App.) until the date of termination of the Office of the Special
Inspector General.
(j) Corrective Responses to Audit Problems.--The Secretary shall--
(1) take action to address deficiencies identified by a
report or investigation of the Special Inspector General; or
(2) with respect to a deficiency identified under paragraph
(1), certify to the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Finance of the Senate,
the Committee on Financial Services of the House of
Representatives, and the Committee on Ways and Means of the
House of Representatives that no action is necessary or
appropriate.
SEC. 10. CONGRESSIONAL OVERSIGHT BOARD.
(a) Establishment.--There is hereby established the Congressional
Oversight Board (hereafter in this section referred to as the
``Oversight Board'') as an establishment in the legislative branch.
(b) Duties.--
(1) In general.--The Oversight Board shall--
(A) conduct oversight of the implementation of this
Act by the Department of the Treasury, including
efforts of the Special Administrator to provide
economic support for businesses as a result of the
coronavirus disease 2019 (COVID-19) pandemic of 2020;
(B) submit to Congress reports under paragraph (2);
and
(C) review the implementation of this Act by the
Federal Government.
(2) Regular reports.--
(A) In general.--Reports of the Oversight Board
shall include the following:
(i) The use by the Special Administrator of
authority under this Act, including with
respect to the use of contracting authority and
administration of the provisions of this Act.
(ii) The impact of recovery compensation
made under this Act on the financial well-being
of the people of the United States and the
United States economy.
(iii) The extent to which the Special
Administrator has prioritized compensation
under this Act.
(iv) The effectiveness of recovery
compensation made under this Act 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 calendar
days after the appointment of the Special Administrator
and every 30 calendar days thereafter.
(3) Auditing.--The Oversight Board shall contract with a
public accounting firm registered by the Public Company
Accounting Oversight Board under section 101(c) of the
Sarbanes-Oxley Act (15 U.S.C. 7211(c)) to conduct independent
audits of the recovery compensation program established under
this Act.
(c) Membership.--
(1) In general.--The Oversight Board 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 as Chairperson 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 Board shall 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 Oversight Board.
Each member shall be subject to the prohibition on acts
affecting personal financial interest under section 208 of
title 18, United States Code, and shall be subject to
limitations on outside employment and outside income pursuant
to title V of the Ethics in Government Act of 1978 (5 U.S.C.
App.).
(3) Prohibition of compensation of federal employees.--
Members of the Oversight Board who are full-time officers or
employees of the United States may not receive additional pay,
allowances, or benefits by reason of their service on the
Oversight Board.
(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 Board shall
constitute a quorum, but a lesser number may hold hearings.
(6) Vacancies.--A vacancy on the Oversight Board shall be
filled in the manner in which the original appointment was
made.
(7) Meetings.--The Oversight Board shall meet at the call
of the Chairperson or a majority of its members.
(d) Staff.--
(1) In general.--The Oversight Board may appoint and fix
the pay of any personnel as the Oversight Board considers
appropriate.
(2) Experts and consultants.--The Oversight Board 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
Board, 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 Board to assist it in
carrying out its duties under this Act.
(e) Powers.--
(1) Hearings and evidence.--The Oversight Board, or any
subcommittee or member thereof, 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
Oversight Board considers appropriate and may administer oaths
or affirmations to witnesses appearing before it.
(2) Contracting.--The Oversight Board may, to such extent
and in such amounts as are provided in appropriation Acts,
enter into contracts to enable the Oversight Board to discharge
its duties under this section.
(3) Powers of members and agents.--Any member or agent of
the Oversight Board may, if authorized by the Oversight Board,
take any action which the Oversight Board is authorized to take
by this section.
(4) Obtaining official data.--The Oversight Board 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
Board, the head of that department or agency shall furnish that
information to the Oversight Board.
(5) Reports.--The Oversight Board shall receive and
consider all reports required to be submitted to the Oversight
Board under this Act.
(f) Termination.--The Oversight Board shall terminate on the date
that is 1 year after the closure of the Fund by the Special
Administrator under subsection (a)(4) of this Act.
(g) Funding for Expenses.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Oversight Board 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 Board shall be promptly transferred
by the Secretary and the Board of Governors of the Federal
Reserve System, from time to time upon the presentment of a
statement of such expenses by the Chairperson of the Oversight
Board, from funds made available to the Secretary 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).
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