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[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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