COVID-19 Funding Accountability Act of 2020

II 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘COVID-19 Funding 4 Accountability Act of 2020’’. 5 SEC. 2. PURPOSE. 6 The purpose of this Act is to ensure that the Federal 7 authority and assistance that is extended to private enti- 8 ties in response to the outbreak of the Coronavirus Dis- 9 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3578 IS ease 2019 (referred to in this Act as ‘‘COVID-19’’) is used 1 in a manner that— 2 (1) promotes economic sustainability of severely 3 distressed sectors of the United States economy; 4 (2) promotes retention of jobs for working 5 Americans and maximizes overall returns to the tax- 6 payers of the United States; and 7 (3) provides public accountability for the exer- 8 cise of such Federal authority and assistance. 9 SEC. 3. DEFINITIONS. 10 In this Act: 11 (1) APPROPRIATE COMMITTEES OF CON- 12 GRESS.—The term ‘‘appropriate committees of Con- 13 gress’’ means— 14 (A) the Committee on Appropriations, the 15 Committee on the Budget, the Committee on 16 Commerce, Science, and Transportation, the 17 Committee on Finance, the Committee on 18 Banking, Housing, and Urban Affairs, and the 19 Committee on Small Business and Entrepre- 20 neurship of the Senate; and 21 (B) the Committee on Appropriations, the 22 Committee on the Budget, the Committee on 23 Energy and Commerce, the Committee on Fi- 24 VerDate Sep 11 2014 20:53 Apr 09, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3578 IS nancial Services, and the Committee on Ways 1 and Means of the House of Representatives. 2 (2) CONGRESSIONAL SUPPORT AGENCIES.—The 3 term ‘‘congressional support agencies’’ means— 4 (A) the Congressional Budget Office; and 5 (B) the Joint Committee on Taxation. 6 (3) COVID-19 RELIEF PROGRAM.—The term 7 ‘‘COVID-19 Relief Program’’ means initiatives es- 8 tablished or implemented by Federal officials in ac- 9 cordance with— 10 (A) the Coronavirus Preparedness and Re- 11 sponse Supplemental Appropriations Act (Pub- 12 lic Law 116–123); 13 (B) the Families First Coronavirus Re- 14 sponse Act (Public Law 116–127); 15 (C) the Coronavirus Aid, Relief, and Eco- 16 nomic Security Act (also known as the 17 ‘‘CARES Act’’), H.R. 748 (116th Congress); 18 and 19 (D) any successor legislation to the same 20 general intent and effect as the legislation de- 21 scribed in subparagraphs (A), (B), and (C). 22 (4) EXCHANGE STABILIZATION FUND.—The 23 term ‘‘Exchange Stabilization Fund’’ means the as- 24 sistance program for distressed sectors of the United 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3578 IS States economy that is established by the CARES 1 Act, H.R. 748 (116th Congress) (or any successor 2 program established by Federal law). 3 SEC. 4. COVID-19 RELIEF OVERSIGHT BOARD. 4 (a) ESTABLISHMENT.—There is established a 5 COVID-19 Relief Oversight Board, which shall be respon- 6 sible for— 7 (1) reviewing the exercise of authority under 8 the COVID-19 Relief Program that relates to poli- 9 cies implemented to— 10 (A) increase loan forgiveness, loan eligi- 11 bility, and loan deferment of eligible small busi- 12 nesses under section 7(a) of the Small Business 13 Act (15 U.S.C. 636(a)); 14 (B) extend grants or other forms of finan- 15 cial assistance to business concerns in response 16 to the outbreak of COVID-19; 17 (C) make resources available, through the 18 Medicare and Medicaid programs, to hospitals 19 and long-term care facilities for the elderly in 20 response to the COVID-19 outbreak; and 21 (D) extend emergency relief to distressed 22 sectors of the United States economy through 23 the Exchange Stabilization Fund of the Depart- 24 ment of the Treasury; 25 VerDate Sep 11 2014 23:02 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3578 IS (2) reviewing the effect of such policies and ini- 1 tiatives in mitigating supply chain disruptions, pre- 2 venting disruptions in the distribution and sales of 3 products and services, and ensuring the sustain- 4 ability of distressed sectors of the United States 5 economy due to the COVID-19 outbreak; 6 (3) making recommendations, as appropriate, to 7 the Administrator of the Small Business Administra- 8 tion, the Secretary of the Treasury, the Secretary of 9 Commerce, the Secretary of Health and Human 10 Services, and the Secretary of Transportation re- 11 garding use of such statutory authority; and 12 (4) reporting any suspected fraud, misrepresen- 13 tation, or malfeasance to the Special Inspector Gen- 14 eral for the COVID-19 Relief Program or the Attor- 15 ney General of the United States, consistent with 16 section 535(b) of title 28, United States Code. 17 (b) MEMBERSHIP.—The COVID-19 Relief Oversight 18 Board established under subsection (a) shall be comprised 19 of— 20 (1) the Administrator of the Small Business 21 Administration; 22 (2) the Secretary of the Treasury; 23 (3) the Secretary of Transportation; 24 (4) the Secretary of Commerce; 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3578 IS (5) the Secretary of Health and Human Serv- 1 ices; and 2 (6) the Administrator of the Federal Emer- 3 gency Management Administration. 4 (c) CHAIRPERSON.—The chairperson of the COVID- 5 19 Relief Oversight Board shall be elected by the members 6 of the Board from among the members other than the Ad- 7 ministrator of the Small Business Administration and the 8 Secretary of the Treasury. 9 (d) MEETINGS.—The COVID-19 Relief Oversight 10 Board shall meet 2 weeks after the Exchange Stabilization 11 Fund of the Department of the Treasury initiates any 12 loan, loan guarantee, or other investment for air carriers 13 and businesses, as authorized under the CARES Act, H.R. 14 748 (116th Congress) (or any successor program estab- 15 lished under Federal law) and monthly thereafter. 16 (e) ADDITIONAL AUTHORITIES.—In addition to the 17 responsibilities described in subsection (a), the COVID-19 18 Relief Oversight Board shall have the authority to ensure 19 that the policies implemented through the Exchange Sta- 20 bilization Fund are— 21 (1) in accordance with the purposes of this Act, 22 including preservation of jobs of workers in severely 23 distressed sectors of the economy; 24 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3578 IS (2) in the economic interests of the United 1 States; and 2 (3) consistent with protecting taxpayers’ inter- 3 ests. 4 (f) CREDIT REVIEW COMMITTEE.—The COVID-19 5 Relief Oversight Board may appoint a credit review com- 6 mittee for the purpose of evaluating the exercise of the 7 authority provided under the COVID-19 Relief Program, 8 as the COVID-19 Relief Oversight Board determines ap- 9 propriate. 10 (g) REPORTS.—The COVID-19 Relief Oversight 11 Board shall report to the appropriate committees of Con- 12 gress and the Congressional Oversight Panel established 13 under this Act, not less frequently than quarterly, on the 14 matters described in subsection (a)(1). 15 (h) TERMINATION.—The COVID-19 Relief Oversight 16 Board, and its authority under this section, shall termi- 17 nate on the expiration of the 15-day period beginning upon 18 the later of— 19 (1) the date on which the national emergency 20 declared by the President under the National Emer- 21 gencies Act (50 U.S.C. 1601 et seq.) with respect to 22 the COVID-19 expires; or 23 (2) the date on which the Exchange Stabiliza- 24 tion Fund of the Department of the Treasury ceases 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 3578 IS the direct lending, loan guarantee, and investment 1 activities for carriers and businesses designated to 2 receive such assistance under the CARES Act, H.R. 3 748 (116th Congress) (or any successor program es- 4 tablished under Federal law). 5 SEC. 5. CONFLICTS OF INTEREST. 6 (a) STANDARDS REQUIRED.—The Director of the Of- 7 fice of Management and Budget shall issue regulations or 8 guidelines necessary to address and manage or to prohibit 9 conflicts of interest that may arise in connection with the 10 administration and execution of the authorities provided 11 under the COVID-19 Relief Program. 12 (b) TIMING.—Regulations or guidelines required by 13 this section shall be issued as soon as practicable after 14 the date of enactment of this Act. 15 SEC. 6. EXECUTIVE COMPENSATION AND CORPORATE GOV- 16 ERNANCE. 17 (a) APPLICABILITY.—Any private entity that receives 18 loans, loan guarantees, grants, or other assistance through 19 the Exchange Stabilization Fund of the Department of the 20 Treasury shall be subject to the executive compensation 21 requirements of subsection (b) and the provisions under 22 the Internal Revenue Code of 1986, as applicable. 23 (b) CRITERIA.—The standards required under this 24 subsection shall include— 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 3578 IS (1) limits on compensation that exclude incen- 1 tives for senior executive officers of a private entity 2 to take unnecessary and excessive risks that threat- 3 en the value of such entity during the period in 4 which the entity receives financial assistance in re- 5 sponse to the COVID-19 outbreak; and 6 (2) a prohibition on the entity making any 7 bonus, incentive compensation or golden parachute 8 payment to a senior executive officer during the pe- 9 riod in which such private entity receives Federal as- 10 sistance through the Exchange Stabilization Fund. 11 (c) DEFINITION.—For purposes of this section, the 12 term ‘‘senior executive officer’’ means an individual who 13 is one of the top 5 highly paid executives of a public or 14 private corporation or limited liability company. 15 (d) SUNSET.—This section shall apply only to ar- 16 rangements entered into during the period in which the 17 entity received a Federal loan, loan guarantee, or other 18 investment or assistance in response to the COVID-19 19 outbreak. 20 SEC. 7. OVERSIGHT AND AUDITS. 21 (a) COMPTROLLER GENERAL OVERSIGHT.— 22 (1) SCOPE OF OVERSIGHT.—In furtherance of 23 the purpose of this Act, the Comptroller General of 24 the United States shall commence ongoing oversight 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 3578 IS of the activities and performance of the COVID-19 1 Relief Program and any agents of the executive 2 branch invoking Federal authority or rendering as- 3 sistance to private entities in response to the 4 COVID-19 outbreak. 5 (2) CONDUCT AND ADMINISTRATION OF OVER- 6 SIGHT.— 7 (A) GAO ACCESS TO RECORDS.—To the 8 extent otherwise consistent with law, the Comp- 9 troller General shall have access, upon request, 10 to any information, data, schedules, books, ac- 11 counts, financial records, reports, files, elec- 12 tronic communications, or other papers, things, 13 or property belonging to or in use by Federal 14 entities that exercise authority or render assist- 15 ance to private entities through the COVID-19 16 Relief Program. The Comptroller General may 17 make and retain copies of such books, accounts, 18 and other records as the Comptroller General 19 deems appropriate. 20 (B) REIMBURSEMENT OF COSTS.—The 21 Treasury shall reimburse the Government Ac- 22 countability Office for the full cost of any such 23 oversight activities as billed therefor by the 24 Comptroller General of the United States. Such 25 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 3578 IS reimbursements shall be credited to the appro- 1 priation account ‘‘Salaries and Expenses, Gov- 2 ernment Accountability Office’’ current when 3 the payment is received and remain available 4 until expended. 5 (3) REPORTING.—The Comptroller General— 6 (A) shall submit reports of findings under 7 this section, regularly and not less frequently 8 than once every 60 days, to the appropriate 9 committees of Congress, and the Special Inspec- 10 tor General for the COVID-19 Relief Program 11 established under section 8; and 12 (B) may submit special reports under this 13 subsection as warranted by the findings of its 14 oversight activities. 15 (b) COMPTROLLER GENERAL AUDITS.— 16 (1) AUTHORITY.—The Comptroller General 17 may audit the programs, activities, receipts, expendi- 18 tures, and financial transactions of Federal entities 19 involved in extending authority or assistance to pri- 20 vate entities in response to the COVID-19 outbreak. 21 (2) CORRECTIVE RESPONSES TO AUDIT PROB- 22 LEMS.—Agencies or departments subject to audits 23 under this subsection shall— 24 VerDate Sep 11 2014 00:49 Apr 07, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3578.IS S3578 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 3578 IS (A) take action to address deficiencies 1 identified by the Comptroller General, as appro- 2 priate; or 3 (B) certify to appropriate committees of 4 Congress that no action is necessary or appro- 5 priate. 6 (c) SHARING OF INFORMATION.—Any report or audit 7 required under this section shall also be submitted to the 8 Congressional Oversight Panel established under section 9 9. 10 (d) TERMINATION.—Any oversight, reporting, or 11 audit requirement under this section shall terminate 180 12 days after the termination date described in section 4(h). 13 SEC. 8. SPECIAL INSPECTOR GENERAL FOR COVID-19 RE- 14 LIEF PROGRAM. 15 (a) OFFICE OF INSPECTOR GENERAL.—There is 16 hereby established the Office of t [Text truncated for display. Full text available on Congress.gov.]