HOTEL Act

To prohibit Federal agencies from using Government funds to pay for expenses at lodging establishments that are owned by or employ certain public officials or their relatives. 1. Short title This Act may be cited as the Heightened Oversight of Travel, Eating, and Lodging Act of 2019 HOTEL Act 2. Limitation on Government spending (a) Definitions In this section: (1) Agency The term agency (A) an Executive agency (as defined in section 105 of title 5, United States Code), a military department (as defined in section 102 of title 5, United States Code), or any other establishment in the executive branch (including the Executive Office of the President, the United States Postal Service, and the Postal Regulatory Commission); (B) an office, agency, or other establishment in the legislative branch; and (C) an office, agency, or other establishment in the judicial branch. (2) Beneficial owner (A) In general Except as provided in subparagraph (B), the term beneficial owner (i) exercises control over the establishment; or (ii) has a substantial interest in or receives substantial economic benefits from the assets of the establishment. (B) Exceptions The term beneficial owner (i) a person acting as a nominee, intermediary, custodian, or agent on behalf of another person; or (ii) a creditor of the establishment, unless the creditor also meets the requirements of subparagraph (A). (C) Anti-abuse rule The exceptions under subparagraph (B) shall not apply if used for the purpose of evading, circumventing, or abusing the requirements of this Act. (3) Control The term control (A) having the authority or ability to determine how the establishment is utilized; or (B) having decision-making power for the use of the establishment. (4) Covered establishment The term covered establishment (A) A covered individual is the highest-level owner, an immediate owner, or a beneficial owner of the establishment. (B) The establishment employs a covered individual described in subparagraph (A), (B), or (D) of paragraph (5). (5) Covered individual The term covered individual (A) the President; (B) the Vice President; (C) a relative of the President or Vice President; and (D) with respect to an agency that is an Executive department, the head of the Executive department. (6) Executive department The term Executive department (7) Federal employee The term Federal employee (A) means an individual employed in or under an agency, including— (i) an individual employed intermittently in the Government service as an expert or consultant and paid on a daily when-actually-employed basis; and (ii) an individual serving without pay or at $1 a year; and (B) includes— (i) the President; (ii) the Vice President; (iii) a Member of Congress; and (iv) any judge or justice who is entitled to hold office during good behavior. (8) Highest-level owner The term highest-level owner (A) An immediate owner of the establishment. (B) A person that owns or controls an immediate owner of the establishment. (9) Immediate owner The term immediate owner (10) Lodging establishment The term lodging establishment (11) Per diem allowance The term per diem allowance (12) Relative The term relative (13) Substantial economic benefits The term substantial economic benefits (14) Travel reimbursement The term travel reimbursement (b) Prohibition The Federal Government may not authorize, pay for, reimburse, contract for, or procure any good or service at or from a covered establishment, including by providing travel reimbursement or a per diem allowance for the cost of lodging or any other expense at a covered establishment. (c) Exceptions (1) In general Subsection (b) shall not apply to— (A) an expenditure by the United States Secret Service or any other agency for protective services relating to the protection of individuals; (B) an expenditure that, in the case of a lodging establishment located in the United States, the Secretary of Homeland Security, or, in the case of an establishment located outside of the United States, the Secretary of State, determines is necessary for purposes of providing— (i) humanitarian assistance; or (ii) disaster relief or other urgent life-saving measures; or (C) an expenditure by an agency at a covered establishment that is the only lodging establishment that would meet statutory or regulatory requirements for lodging or other expenses during official travel, if, with respect to an expenditure by— (i) an agency described in subsection (a)(1)(A), a written waiver is issued by the designated agency ethics official (as defined in section 109 (ii) an office, agency, or other establishment in the Senate, a written waiver is issued by an official designated by the Select Committee on Ethics of the Senate; (iii) an office, agency, or other establishment in the House of Representatives, a written waiver is issued by an official designated by the Committee on Ethics of the House of Representatives; (iv) an agency described in subsection (a)(1)(B) that is not in the Senate or the House of Representatives, a written waiver is issued by an official designated by the head of the agency; and (v) an agency described in subsection (a)(1)(C), a written waiver is issued by an official designated by the Judicial Conference of the United States. (2) Reporting requirement (A) Immediate report (i) In general Not later than 90 days after the date on which an agency makes an expenditure that would be prohibited under subsection (b) but for the exception under paragraph (1) of this subsection, the agency shall submit a report describing the expenditure to the appropriate agency or official, including a copy of each waiver issued under paragraph (1)(C), if any. (ii) Appropriate agency or official For purposes of clause (i), the term appropriate agency or official (I) an agency described in subsection (a)(1)(A), or an agency described in subsection (a)(1)(B) that is not in the Senate or the House of Representatives, means the Office of Government Ethics; (II) an office, agency, or other establishment in the Senate, means the Secretary of the Senate; (III) an office, agency, or other establishment in the House of Representatives, means the Clerk of the House of Representatives; and (IV) an agency described in subsection (a)(1)(C), means the Judicial Conference of the United States. (B) Annual report to Congress Not later than 60 days after the end of each fiscal year, an agency shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Reform of the House of Representatives a report that— (i) states whether the agency made an expenditure described in subparagraph (A)(i) during the fiscal year; and (ii) if the agency made an expenditure described in subparagraph (A)(i) during the fiscal year, describes each expenditure made, and each waiver issued, during the fiscal year. (d) Regulations and procedures (1) Executive branch The Director of the Office of Government Ethics shall issue any regulations or procedures necessary to carry out this section with respect to expenditures by an agency described in subsection (a)(1)(A). (2) Legislative branch (A) Senate The Select Committee on Ethics of the Senate shall issue any regulations or procedures necessary to carry out this section with respect to expenditures by an office, agency, or other establishment in the Senate. (B) House of Representatives The Committee on Ethics of the House of Representatives shall issue any regulations or procedures necessary to carry out this section with respect to expenditures by an office, agency, or other establishment in the House of Representatives. (C) Other legislative branch agencies The head of each agency described in subsection (a)(1)(B) that is not in the Senate or the House of Representatives shall issue any regulations or procedures necessary to carry out this section with respect to expenditures by that agency. (3) Judicial branch The Judicial Conference of the United States (or such other agency as it may designate) shall issue any regulations or procedures necessary to carry out this section with respect to expenditures by an agency described in subsection (a)(1)(C). (4) Parallel regulations and procedures The regulations or procedures issued under paragraphs (2) and (3) shall be the same as substantive regulations or procedures issued by the Director of the Office of Government Ethics under paragraph (1) except to the extent that an agency issuing regulations or procedures under paragraph (2) or (3) may determine, for good cause shown and stated together with the regulations or procedures, that a modification of the regulations or procedures issued under paragraph (1) would be more effective for the implementation of this section with respect to the agency or agencies to which the regulations or procedures issued under paragraph (2) or (3) will apply.

Summary: Heightened Oversight of Travel, Eating, and Lodging Act of 2019 or the HOTEL Act This bill prohibits federal agencies from using U.S. government funds to pay for expenses at lodging establishments that are owned by or employ certain public officials or their relatives, including by providing travel reimbursement or a per diem allowance for the cost of lodging, with exceptions.