109TH CONGRESS

2D SESSION S. 2590

AN ACT

To require full disclosure of all entities and organizations

receiving Federal funds.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Federal Funding Ac5 countability and Transparency Act of 2006’’.
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1 SEC. 2. FULL DISCLOSURE OF ENTITIES RECEIVING FED2 ERAL FUNDING.

3 (a) DEFINITIONS.—In this section:

4 (1) ENTITY.—The term ‘‘entity’’—

5 (A) includes, whether for profit or

6 nonprofit—

7 (i) a corporation;

8 (ii) an association;

9 (iii) a partnership;

10 (iv) a limited liability company;

11 (v) a limited liability partnership;

12 (vi) a sole proprietorship;

13 (vii) any other legal business entity;

14 (viii) any other grantee or contractor

15 that is not excluded by subparagraph (B)

16 or (C); and

17 (ix) any State or locality;

18 (B) on and after January 1, 2009, in19 cludes any subcontractor or subgrantee; and

20 (C) does not include—

21 (i) an individual recipient of Federal

22 assistance; or

23 (ii) a Federal employee.

24 (2) FEDERAL AWARD.—The term ‘‘Federal

25 award’’—
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1 (A) means Federal financial assistance and

2 expenditures that include grants, contracts,

3 subgrants, subcontracts, loans, awards, coopera4 tive agreements, purchase orders, task orders,

5 delivery orders, and other forms of financial as6 sistance;

7 (B) does not include individual trans8 actions below $25,000; and

9 (C) before October 1, 2008, does not in10 clude credit card transactions.

11 (3) SEARCHABLE WEBSITE.—The term

12 ‘‘searchable website’’ means a website that allows

13 the public to—

14 (A) search Federal funding by any element

15 required by subsection (b)(1);

16 (B) ascertain through a single search the

17 total amount of Federal funding awarded to an

18 entity, by fiscal year; and

19 (C) download data included in subpara20 graph (A) included in the outcome from

21 searches.

22 (b) IN GENERAL.—

23 (1) WEBSITE.—Not later than January 1,

24 2008, the Office of Management and Budget shall,

25 in accordance with this section and section 204 of
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1 the E-Government Act of 2002 (Public Law 107–

2 347; 44 U.S.C. 3501 note), ensure the existence and

3 operation of a single searchable website, accessible

4 by the public at no cost to access, that includes for

5 each Federal award—

6 (A) the name of the entity receiving the

7 award;

8 (B) the amount of the award;

9 (C) information on the award including

10 transaction type, funding agency, the North

11 American Industry Classification System code

12 or Catalog of Federal Domestic Assistance

13 number (where applicable), program source,

14 and an award title descriptive of the purpose of

15 each funding action;

16 (D) the location of the entity receiving the

17 award and the primary location of performance

18 under the award, including the city, State, con19 gressional district, and country;

20 (E) a unique identifier of the entity receiv21 ing the award and of the parent entity of the

22 recipient, should the entity be owned by another

23 entity; and

24 (F) any other relevant information speci25 fied by the Office of Management and Budget.
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1 (2) SCOPE OF DATA.—The website shall include

2 data for fiscal year 2007, and each fiscal year there3 after.

4 (3) DESIGNATION OF AGENCIES.—The Director

5 of the Office of Management and Budget is author6 ized to designate one or more Federal agencies to

7 participate in the development, establishment, oper8 ation, and support of the single website. In the ini9 tial designation, or in subsequent instructions and

10 guidance, the Director may specify the scope of the

11 responsibilities of each such agency.

12 (4) AGENCY RESPONSIBILITIES.—Federal agen13 cies shall comply with the instructions and guidance

14 issued by the Director of the Office of Management

15 and Budget under paragraph (3), and shall provide

16 appropriate assistance to the Director upon request,

17 so as to assist the Director in ensuring the existence

18 and operation of the single website.

19 (c) WEBSITE.—The website established under this

20 section—

21 (1) may use as the source of its data the Fed22 eral Procurement Data System, Federal Assistance

23 Award Data System, and Grants.gov, if all of these

24 data sources are searchable through the website and

25 can be accessed in a single search;
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1 (2) shall not be considered in compliance if it

2 hyperlinks to the Federal Procurement Data System

3 website, Federal Assistance Award Data System

4 website, Grants.gov website, or other existing

5 websites, so that the information elements required

6 in subsection (b)(1) cannot be searched electronically

7 by field in a single search;

8 (3) shall provide an opportunity for the public

9 to provide input about the utility of the site and rec10 ommendations for improvements; and

11 (4) shall be updated not later than 30 days

12 after the award of any Federal award requiring a

13 posting.

14 (d) SUBAWARD DATA.—

15 (1) PILOT PROGRAM.—

16 (A) IN GENERAL.—Not later than July 1,

17 2007, the Director of the Office of Management

18 and Budget shall commence a pilot program

19 to—

20 (i) test the collection and accession of

21 data about subgrants and subcontracts;

22 and

23 (ii) determine how to implement a

24 subaward reporting program across the

25 Federal Government, including—
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1 (I) a reporting system under

2 which the entity issuing a subgrant or

3 subcontract is responsible for fulfilling

4 the subaward reporting requirement;

5 and

6 (II) a mechanism for collecting

7 and incorporating agency and public

8 feedback on the design and utility of

9 the website.

10 (B) TERMINATION.—The pilot program

11 under subparagraph (A) shall terminate not

12 later than January 1, 2009.

13 (2) REPORTING OF SUBAWARDS.—

14 (A) IN GENERAL.—Based on the pilot pro15 gram conducted under paragraph (1), and, ex16 cept as provided in subparagraph (B), not later

17 than January 1, 2009, the Director of the Of18 fice of Management and Budget—

19 (i) shall ensure that data regarding

20 subawards are disclosed in the same man21 ner as data regarding other Federal

22 awards, as required by this Act; and

23 (ii) shall ensure that the method for

24 collecting and distributing data about sub25 awards under clause (i)—
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1 (I) minimizes burdens imposed

2 on Federal award recipients and

3 subaward recipients;

4 (II) allows Federal award recipi5 ents and subaward recipients to allo6 cate reasonable costs for the collection

7 and reporting of subaward data as in8 direct costs; and

9 (III) establishes cost-effective re10 quirements for collecting subaward

11 data under block grants, formula

12 grants, and other types of assistance

13 to State and local governments.

14 (B) EXTENSION OF DEADLINE.—For

15 subaward recipients that receive Federal funds

16 through State, local, or tribal governments, the

17 Director of the Office of Management and

18 Budget may extend the deadline for ensuring

19 that data regarding such subawards are dis20 closed in the same manner as data regarding

21 other Federal awards for a period not to exceed

22 18 months, if the Director determines that com23 pliance would impose an undue burden on the

24 subaward recipient.
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1 (e) EXCEPTION.—Any entity that demonstrates to

2 the Director of the Office of Management and Budget that

3 the gross income, from all sources, for such entity did not

4 exceed $300,000 in the previous tax year of such entity

5 shall be exempt from the requirement to report subawards

6 under subsection (d), until the Director determines that

7 the imposition of such reporting requirements will not

8 cause an undue burden on such entities.

9 (f) CONSTRUCTION.—Nothing in this Act shall pro10 hibit the Office of Management and Budget from includ11 ing through the website established under this section ac12 cess to data that is publicly available in any other Federal

13 database.

14 (g) REPORT.—

15 (1) IN GENERAL.—The Director of the Office of

16 Management and Budget shall submit to the Com17 mittee on Homeland Security and Governmental Af18 fairs of the Senate and the Committee on Govern19 ment Reform of the House of Representatives an an20 nual report regarding the implementation of the

21 website established under this section.

22 (2) CONTENTS.—Each report submitted under

23 paragraph (1) shall include—

24 (A) data regarding the usage and public

25 feedback on the utility of the site (including
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1 recommendations for improving data quality

2 and collection);

3 (B) an assessment of the reporting burden

4 placed on Federal award and subaward recipi5 ents; and

6 (C) an explanation of any extension of the

7 subaward reporting deadline under subsection

8 (d)(2)(B), if applicable.

9 (3) PUBLICATION.—The Director of the Office

10 of Management and Budget shall make each report

11 submitted under paragraph (1) publicly available on

12 the website established under this section.

13 SEC. 3. CLASSIFIED INFORMATION.

14 Nothing in this Act shall require the disclosure of

15 classified information.

Passed the Senate September 7 (legislative day, September 6), 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 2590

AN ACT

To require full disclosure of all entities and

organizations receiving Federal funds.