[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3578 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3578

To provide oversight for the care and assistance provided to businesses 
                 under the coronavirus relief package.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 2020

 Mr. Grassley introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To provide oversight for the care and assistance provided to businesses 
                 under the coronavirus relief package.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COVID-19 Funding Accountability Act 
of 2020''.

SEC. 2. PURPOSE.

    The purpose of this Act is to ensure that the Federal authority and 
assistance that is extended to private entities in response to the 
outbreak of the Coronavirus Disease 2019 (referred to in this Act as 
``COVID-19'') is used in a manner that--
            (1) promotes economic sustainability of severely distressed 
        sectors of the United States economy;
            (2) promotes retention of jobs for working Americans and 
        maximizes overall returns to the taxpayers of the United 
        States; and
            (3) provides public accountability for the exercise of such 
        Federal authority and assistance.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Appropriations, the Committee 
                on the Budget, the Committee on Commerce, Science, and 
                Transportation, the Committee on Finance, the Committee 
                on Banking, Housing, and Urban Affairs, and the 
                Committee on Small Business and Entrepreneurship of the 
                Senate; and
                    (B) the Committee on Appropriations, the Committee 
                on the Budget, the Committee on Energy and Commerce, 
                the Committee on Financial Services, and the Committee 
                on Ways and Means of the House of Representatives.
            (2) Congressional support agencies.--The term 
        ``congressional support agencies'' means--
                    (A) the Congressional Budget Office; and
                    (B) the Joint Committee on Taxation.
            (3) COVID-19 relief program.--The term ``COVID-19 Relief 
        Program'' means initiatives established or implemented by 
        Federal officials in accordance with--
                    (A) the Coronavirus Preparedness and Response 
                Supplemental Appropriations Act (Public Law 116-123);
                    (B) the Families First Coronavirus Response Act 
                (Public Law 116-127);
                    (C) the Coronavirus Aid, Relief, and Economic 
                Security Act (also known as the ``CARES Act''), H.R. 
                748 (116th Congress); and
                    (D) any successor legislation to the same general 
                intent and effect as the legislation described in 
                subparagraphs (A), (B), and (C).
            (4) Exchange stabilization fund.--The term ``Exchange 
        Stabilization Fund'' means the assistance program for 
        distressed sectors of the United States economy that is 
        established by the CARES Act, H.R. 748 (116th Congress) (or any 
        successor program established by Federal law).

SEC. 4. COVID-19 RELIEF OVERSIGHT BOARD.

    (a) Establishment.--There is established a COVID-19 Relief 
Oversight Board, which shall be responsible for--
            (1) reviewing the exercise of authority under the COVID-19 
        Relief Program that relates to policies implemented to--
                    (A) increase loan forgiveness, loan eligibility, 
                and loan deferment of eligible small businesses under 
                section 7(a) of the Small Business Act (15 U.S.C. 
                636(a));
                    (B) extend grants or other forms of financial 
                assistance to business concerns in response to the 
                outbreak of COVID-19;
                    (C) make resources available, through the Medicare 
                and Medicaid programs, to hospitals and long-term care 
                facilities for the elderly in response to the COVID-19 
                outbreak; and
                    (D) extend emergency relief to distressed sectors 
                of the United States economy through the Exchange 
                Stabilization Fund of the Department of the Treasury;
            (2) reviewing the effect of such policies and initiatives 
        in mitigating supply chain disruptions, preventing disruptions 
        in the distribution and sales of products and services, and 
        ensuring the sustainability of distressed sectors of the United 
        States economy due to the COVID-19 outbreak;
            (3) making recommendations, as appropriate, to the 
        Administrator of the Small Business Administration, the 
        Secretary of the Treasury, the Secretary of Commerce, the 
        Secretary of Health and Human Services, and the Secretary of 
        Transportation regarding use of such statutory authority; and
            (4) reporting any suspected fraud, misrepresentation, or 
        malfeasance to the Special Inspector General for the COVID-19 
        Relief Program or the Attorney General of the United States, 
        consistent with section 535(b) of title 28, United States Code.
    (b) Membership.--The COVID-19 Relief Oversight Board established 
under subsection (a) shall be comprised of--
            (1) the Administrator of the Small Business Administration;
            (2) the Secretary of the Treasury;
            (3) the Secretary of Transportation;
            (4) the Secretary of Commerce;
            (5) the Secretary of Health and Human Services; and
            (6) the Administrator of the Federal Emergency Management 
        Administration.
    (c) Chairperson.--The chairperson of the COVID-19 Relief Oversight 
Board shall be elected by the members of the Board from among the 
members other than the Administrator of the Small Business 
Administration and the Secretary of the Treasury.
    (d) Meetings.--The COVID-19 Relief Oversight Board shall meet 2 
weeks after the Exchange Stabilization Fund of the Department of the 
Treasury initiates any loan, loan guarantee, or other investment for 
air carriers and businesses, as authorized under the CARES Act, H.R. 
748 (116th Congress) (or any successor program established under 
Federal law) and monthly thereafter.
    (e) Additional Authorities.--In addition to the responsibilities 
described in subsection (a), the COVID-19 Relief Oversight Board shall 
have the authority to ensure that the policies implemented through the 
Exchange Stabilization Fund are--
            (1) in accordance with the purposes of this Act, including 
        preservation of jobs of workers in severely distressed sectors 
        of the economy;
            (2) in the economic interests of the United States; and
            (3) consistent with protecting taxpayers' interests.
    (f) Credit Review Committee.--The COVID-19 Relief Oversight Board 
may appoint a credit review committee for the purpose of evaluating the 
exercise of the authority provided under the COVID-19 Relief Program, 
as the COVID-19 Relief Oversight Board determines appropriate.
    (g) Reports.--The COVID-19 Relief Oversight Board shall report to 
the appropriate committees of Congress and the Congressional Oversight 
Panel established under this Act, not less frequently than quarterly, 
on the matters described in subsection (a)(1).
    (h) Termination.--The COVID-19 Relief Oversight Board, and its 
authority under this section, shall terminate on the expiration of the 
15-day period beginning upon the later of--
            (1) the date on which the national emergency declared by 
        the President under the National Emergencies Act (50 U.S.C. 
        1601 et seq.) with respect to the COVID-19 expires; or
            (2) the date on which the Exchange Stabilization Fund of 
        the Department of the Treasury ceases the direct lending, loan 
        guarantee, and investment activities for carriers and 
        businesses designated to receive such assistance under the 
        CARES Act, H.R. 748 (116th Congress) (or any successor program 
        established under Federal law).

SEC. 5. CONFLICTS OF INTEREST.

    (a) Standards Required.--The Director of the Office of Management 
and Budget shall issue regulations or guidelines necessary to address 
and manage or to prohibit conflicts of interest that may arise in 
connection with the administration and execution of the authorities 
provided under the COVID-19 Relief Program.
    (b) Timing.--Regulations or guidelines required by this section 
shall be issued as soon as practicable after the date of enactment of 
this Act.

SEC. 6. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

    (a) Applicability.--Any private entity that receives loans, loan 
guarantees, grants, or other assistance through the Exchange 
Stabilization Fund of the Department of the Treasury shall be subject 
to the executive compensation requirements of subsection (b) and the 
provisions under the Internal Revenue Code of 1986, as applicable.
    (b) Criteria.--The standards required under this subsection shall 
include--
            (1) limits on compensation that exclude incentives for 
        senior executive officers of a private entity to take 
        unnecessary and excessive risks that threaten the value of such 
        entity during the period in which the entity receives financial 
        assistance in response to the COVID-19 outbreak; and
            (2) a prohibition on the entity making any bonus, incentive 
        compensation or golden parachute payment to a senior executive 
        officer during the period in which such private entity receives 
        Federal assistance through the Exchange Stabilization Fund.
    (c) Definition.--For purposes of this section, the term ``senior 
executive officer'' means an individual who is one of the top 5 highly 
paid executives of a public or private corporation or limited liability 
company.
    (d) Sunset.--This section shall apply only to arrangements entered 
into during the period in which the entity received a Federal loan, 
loan guarantee, or other investment or assistance in response to the 
COVID-19 outbreak.

SEC. 7. OVERSIGHT AND AUDITS.

    (a) Comptroller General Oversight.--
            (1) Scope of oversight.--In furtherance of the purpose of 
        this Act, the Comptroller General of the United States shall 
        commence ongoing oversight of the activities and performance of 
        the COVID-19 Relief Program and any agents of the executive 
        branch invoking Federal authority or rendering assistance to 
        private entities in response to the COVID-19 outbreak.
            (2) Conduct and administration of oversight.--
                    (A) GAO access to records.--To the extent otherwise 
                consistent with law, the Comptroller General shall have 
                access, upon request, to any information, data, 
                schedules, books, accounts, financial records, reports, 
                files, electronic communications, or other papers, 
                things, or property belonging to or in use by Federal 
                entities that exercise authority or render assistance 
                to private entities through the COVID-19 Relief 
                Program. The Comptroller General may make and retain 
                copies of such books, accounts, and other records as 
                the Comptroller General deems appropriate.
                    (B) Reimbursement of costs.--The Treasury shall 
                reimburse the Government Accountability Office for the 
                full cost of any such oversight activities as billed 
                therefor by the Comptroller General of the United 
                States. Such reimbursements shall be credited to the 
                appropriation account ``Salaries and Expenses, 
                Government Accountability Office'' current when the 
                payment is received and remain available until 
                expended.
            (3) Reporting.--The Comptroller General--
                    (A) shall submit reports of findings under this 
                section, regularly and not less frequently than once 
                every 60 days, to the appropriate committees of 
                Congress, and the Special Inspector General for the 
                COVID-19 Relief Program established under section 8; 
                and
                    (B) may submit special reports under this 
                subsection as warranted by the findings of its 
                oversight activities.
    (b) Comptroller General Audits.--
            (1) Authority.--The Comptroller General may audit the 
        programs, activities, receipts, expenditures, and financial 
        transactions of Federal entities involved in extending 
        authority or assistance to private entities in response to the 
        COVID-19 outbreak.
            (2) Corrective responses to audit problems.--Agencies or 
        departments subject to audits under this subsection shall--
                    (A) take action to address deficiencies identified 
                by the Comptroller General, as appropriate; or
                    (B) certify to appropriate committees of Congress 
                that no action is necessary or appropriate.
    (c) Sharing of Information.--Any report or audit required under 
this section shall also be submitted to the Congressional Oversight 
Panel established under section 9.
    (d) Termination.--Any oversight, reporting, or audit requirement 
under this section shall terminate 180 days after the termination date 
described in section 4(h).

SEC. 8. SPECIAL INSPECTOR GENERAL FOR COVID-19 RELIEF PROGRAM.

    (a) Office of Inspector General.--There is hereby established the 
Office of the Special Inspector General for the COVID-19 Relief 
Program.
    (b) Appointment of Inspector General; Removal.--
            (1) In general.--The head of the Office of the Special 
        Inspector General for the COVID-19 Asset Relief Program is the 
        Special Inspector General for the COVID-19 Relief Program (in 
        this section referred to as the ``Special Inspector General''), 
        who shall be appointed by the President, by and with the advice 
        and consent of the Senate.
            (2) Requirement for appointment.--The appointment of the 
        Special Inspector General shall be made on the basis of 
        integrity and demonstrated ability in accounting, auditing, 
        financial analysis, law, management analysis, public 
        administration, or investigations.
            (3) Timing of nomination.--The nomination of an individual 
        as Special Inspector General under this section shall be made 
        as soon as practicable after the establishment of the Exchange 
        Stabilization Fund.
            (4) Removal.--The Special Inspector General shall be 
        removable from office in accordance with the provisions of 
        section 3(b) of the Inspector General Act of 1978 (5 U.S.C. 
        App.).
            (5) Political activities on duty.--For purposes of section 
        7324 of title 5, United States Code, the Special Inspector 
        General shall not be considered an employee who determines 
        policies to be pursued by the United States in the nationwide 
        administration of Federal law.
            (6) Compensation.--The annual rate of basic pay of the 
        Special Inspector General shall be the annual rate of basic pay 
        for an Inspector General under section 3(e) of the Inspector 
        General Act of 1978 (5 U.S.C. App.).
    (c) Duties.--
            (1) In general.--It shall be the duty of the Special 
        Inspector General to conduct, supervise, and coordinate audits 
        and investigations of Federal assistance and relief programs 
        established in response to the COVID-19 outbreak.
            (2) Oversight.--The Special Inspector General shall 
        establish, maintain, and oversee such systems, procedures, and 
        controls as the Special Inspector General considers appropriate 
        to discharge the duty under paragraph (1).
            (3) Additional duties.--In addition to the duties specified 
        in paragraphs (1) and (2), the Inspector General shall also 
        have the duties and responsibilities of inspectors general 
        under the Inspector General Act of 1978 (5 U.S.C. App.).
    (d) Powers and Authorities.--
            (1) In general.--In carrying out the duties described in 
        subsection (c), the Special Inspector General shall have the 
        authorities provided in section 6 of the Inspector General Act 
        of 1978.
            (2) Requirement.--The Special Inspector General shall carry 
        out the duties specified in subsection (c)(1) in accordance 
        with section 4(b)(1) of the Inspector General Act of 1978 (5 
        U.S.C. App.).
    (e) Personnel, Facilities, and Other Resources.--
            (1) Personnel.--The Special Inspector General may select, 
        appoint, and employ such officers and employees as may be 
        necessary for carrying out the duties of the Special Inspector 
        General, subject to the provisions of title 5, United States 
        Code, governing appointments in the competitive service, and 
        the provisions of chapter 51 and subchapter III of chapter 53 
        of such title 5, relating to classification and General 
        Schedule pay rates.
            (2) Experts and consultants.--The Special Inspector General 
        may obtain services as authorized by section 3109 of title 5, 
        United States Code, at daily rates not to exceed the equivalent 
        rate prescribed for grade GS-15 of the General Schedule by 
        section 5332 of such title 5.
            (3) Audits and analyses.--The Special Inspector General may 
        enter into contracts and other arrangements for audits, 
        studies, analyses, and other services with public agencies and 
        with private persons, and make such payments as may be 
        necessary to carry out the duties of the Inspector General.
            (4) Assistance from other departments.--
                    (A) In general.--Upon request of the Special 
                Inspector General for information or assistance from 
                any department, agency, or other entity of the Federal 
                Government, the head of such entity shall, insofar as 
                is practicable and not in contravention of any existing 
                law, furnish such information or assistance to the 
                Special Inspector General, or an authorized designee.
                    (B) Notification of congress.--Whenever information 
                or assistance requested by the Special Inspector 
                General is, in the judgment of the Special Inspector 
                General, unreasonably refused or not provided, the 
                Special Inspector General shall report the 
                circumstances to the appropriate committees of Congress 
                without delay.
    (f) Reports.--
            (1) In general.--Not later than 60 days after the 
        confirmation of the Special Inspector General, and every 
        calendar quarter thereafter, the Special Inspector General 
        shall submit to the appropriate committees of Congress a report 
        summarizing the activities of the Special Inspector General 
        during the 120-day period ending on the date of such report.
            (2) Contents.--Each report required under this subsection 
        shall include, for the period covered by such report, a 
        detailed statement of all purchases, obligations, expenditures, 
        and revenues associated with the Exchange Stabilization Fund 
        and any COVID-19 Relief Program involving the expenditure of 
        more than $5,000,000.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed to authorize the public disclosure of information 
        that is--
                    (A) specifically prohibited from disclosure by any 
                other provision of law;
                    (B) specifically required by Executive order to be 
                protected from disclosure in the interest of national 
                defense or national security or in the conduct of 
                foreign affairs; or
                    (C) a part of an ongoing criminal investigation.
            (4) Requirement.--Any reports required under this section 
        shall also be submitted to the Congressional Oversight Panel 
        established under section 9.
    (g) Funding.--Of the amounts made available to the Secretary of the 
Treasury in fiscal year 2021, $50,000,000 shall be available to the 
Special Inspector General to carry out this section and shall remain 
available until expended.
    (h) Termination.--Any oversight, reporting, or audit requirement 
under this section shall terminate on the date that is 1 year after the 
termination date described in section 4(h).

SEC. 9. CONGRESSIONAL OVERSIGHT PANEL.

    (a) Establishment.--There is hereby established the Congressional 
Oversight Panel (hereafter in this section referred to as the 
``Oversight Panel'') as an establishment in the legislative branch.
    (b) Duties.--The Oversight Panel shall review the current state of 
the financial markets and submit the following reports to Congress:
            (1) Regular reports.--
                    (A) In general.--Regular reports of the Oversight 
                Panel shall include the following:
                            (i) The use by Federal officials of 
                        authority to implement COVID-19 Relief Program.
                            (ii) The impact of the COVID-19 Relief 
                        Program on the financial markets, air carriers, 
                        and medical providers.
                            (iii) The extent to which the information 
                        made available on transactions under the 
                        Exchange Stabilization Fund has contributed to 
                        market transparency.
                            (iv) The effectiveness of the program from 
                        the standpoint of minimizing long-term costs to 
                        the taxpayers and maximizing the benefits for 
                        taxpayers.
                    (B) Timing.--The reports required under this 
                paragraph shall be submitted not later than 30 days 
                after the establishment of the Exchange Stabilization 
                Fund, and every 30 days thereafter.
            (2) Special report on regulatory reform.--The Oversight 
        Panel shall submit a special report on regulatory reform not 
        later than March 31, 2021, analyzing the current state of the 
        regulatory system and its effectiveness at overseeing the 
        recipients of COVID-19 Relief Program assistance and protecting 
        consumers, and providing recommendations for improvement, 
        including recommendations regarding whether any participants in 
        the financial markets that are currently outside the regulatory 
        system should become subject to the regulatory system, the 
        rationale underlying such recommendation, and whether there are 
        any gaps in existing consumer protections.
    (c) Membership.--
            (1) In general.--The Oversight Panel shall consist of 5 
        members, as follows:
                    (A) One member appointed by the Speaker of the 
                House of Representatives.
                    (B) One member appointed by the minority leader of 
                the House of Representatives.
                    (C) One member appointed by the majority leader of 
                the Senate.
                    (D) One member appointed by the minority leader of 
                the Senate.
                    (E) One member appointed by the Speaker of the 
                House of Representatives and the majority leader of the 
                Senate, after consultation with the minority leader of 
                the Senate and the minority leader of the House of 
                Representatives.
            (2) Pay.--Each member of the Oversight Panel shall each be 
        paid at a rate equal to the daily equivalent of the annual rate 
        of basic pay for level I of the Executive Schedule for each day 
        (including travel time) during which such member is engaged in 
        the actual performance of duties vested in the Commission.
            (3) Prohibition of compensation of federal employees.--
        Members of the Oversight Panel who are full-time officers or 
        employees of the United States or Members of Congress may not 
        receive additional pay, allowances, or benefits by reason of 
        their service on the Oversight Panel.
            (4) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter I of 
        chapter 57 of title 5, United States Code.
            (5) Quorum.--Four members of the Oversight Panel shall 
        constitute a quorum but a lesser number may hold hearings.
            (6) Vacancies.--A vacancy on the Oversight Panel shall be 
        filled in the manner in which the original appointment was 
        made.
            (7) Meetings.--The Oversight Panel shall meet at the call 
        of the Chairperson or a majority of its members.
    (d) Staff.--
            (1) In general.--The Oversight Panel may appoint and fix 
        the pay of any personnel as the Commission considers 
        appropriate.
            (2) Experts and consultants.--The Oversight Panel may 
        procure temporary and intermittent services under section 
        3109(b) of title 5, United States Code.
            (3) Staff of agencies.--Upon request of the Oversight 
        Panel, the head of any Federal department or agency may detail, 
        on a reimbursable basis, any of the personnel of that 
        department or agency to the Oversight Panel to assist it in 
        carrying out its duties under this Act.
    (e) Powers.--
            (1) Hearings and sessions.--The Oversight Panel may, for 
        the purpose of carrying out this section, hold hearings, sit 
        and act at times and places, take testimony, and receive 
        evidence as the Panel considers appropriate and may administer 
        oaths or affirmations to witnesses appearing before it.
            (2) Powers of members and agents.--Any member or agent of 
        the Oversight Panel may, if authorized by the Oversight Panel, 
        take any action which the Oversight Panel is authorized to take 
        by this section.
            (3) Obtaining official data.--The Oversight Panel may 
        secure directly from any department or agency of the United 
        States information necessary to enable it to carry out this 
        section. Upon request of the Chairperson of the Oversight 
        Panel, the head of that department or agency shall furnish that 
        information to the Oversight Panel.
            (4) Reports.--The Oversight Panel shall receive and 
        consider all reports required to be submitted to the Oversight 
        Panel under this Act.
    (f) Termination.--The Oversight Panel shall terminate on the date 
that is 180 days after the termination date described in section 4(h).
    (g) Funding for Expenses.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Oversight Panel such sums as may be 
        necessary for any fiscal year, half of which shall be derived 
        from the applicable account of the House of Representatives, 
        and half of which shall be derived from the contingent fund of 
        the Senate.
            (2) Reimbursement of amounts.--An amount equal to the 
        expenses of the Oversight Panel shall be promptly transferred 
        by the Secretary of the Treasury, from time to time upon the 
        presentment of a statement of such expenses by the Chairperson 
        of the Oversight Panel, from funds made available to the 
        Secretary of the Treasury under this Act to the applicable fund 
        of the House of Representatives and the contingent fund of the 
        Senate, as appropriate, as reimbursement for amounts expended 
        from such account and fund under paragraph (1).

SEC. 10. COOPERATION WITH THE DEPARTMENT OF JUSTICE AND THE FBI.

    Any Federal financial regulatory agency shall cooperate with the 
Department of Justice and the Federal Bureau of Investigation and other 
law enforcement agencies investigating fraud, misrepresentation, and 
malfeasance with respect to development, advertising, and sale of 
financial or other investment products.

SEC. 11. INFORMATION FOR CONGRESSIONAL SUPPORT AGENCIES.

    Upon request, and to the extent otherwise consistent with law, all 
information used by the Federal officials in connection with activities 
authorized under this Act (including the records to which the 
Comptroller General is entitled under this Act) shall be made available 
to congressional support agencies (in accordance with their obligations 
to support the Congress as set out in their authorizing statutes) for 
the purposes of assisting the committees of Congress with conducting 
oversight, monitoring, and analysis of the activities authorized under 
the COVID-19 Relief Program.
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