I 117th CONGRESS 1st Session H. R. 5985 IN THE HOUSE OF REPRESENTATIVES November 16, 2021 Ms. Malliotakis (for herself and Mr. Donalds ) introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To establish the Office of the Special Inspector General for State Spending and Waste, and for other purposes.

1. Short title This Act may be cited as the SIGSSAW Act . 2. Special Inspector General for State Spending and Waste (a) Purposes The purposes of this section are as follows: (1) To provide for the independent and objective conduct and supervision of audits and investigations relating to the programs and operations funded with amounts appropriated or otherwise made available for use by States. (2) To provide for the independent and objective leadership and coordination of, and recommendations on, policies designed to— (A) promote economy efficiency, and effectiveness in the administration of the programs and operations described in paragraph (1); and (B) prevent and detect waste, fraud, and abuse in such programs and operations. (b) Office of Inspector General There is hereby established the Office of the Special Inspector General for State Spending and Waste to carry out the purposes of subsection (a). (c) Appointment of inspector general; removal (1) Appointment The head of the Office is the Special Inspector General for State Spending and Waste, who shall be appointed by the President. (2) Qualifications The appointment of the Inspector General shall be made solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. (3) Deadline for appointment The appointment of an individual as Inspector General shall be made not later than 30 days after the date of the enactment of this Act. (4) Compensation The annual rate of basic pay of the Inspector General shall be the annual rate of basic pay provided for positions at level IV of the Executive Schedule under section 5315 of title 5, United States Code. (5) Prohibition on political activities For purposes of section 7324 of title 5, United States Code, the Inspector General shall not be considered an employee who determines policies to be pursued by the United States in the nationwide administration of Federal law. (6) Removal The 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.). (d) Supervision (1) In general Except as provided in paragraph (2), the Inspector General shall report directly to, and be under the general supervision of the Secretary of Housing and Urban Development. (2) Independence to conduct investigations and audits No officer of the Department of Housing and Urban Development shall prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation related to amounts appropriated or otherwise made available for use by States with or from issuing any subpoena during the course of any such audit or investigation. (e) Duties (1) Oversight of spending by States It shall be the duty of the Inspector General to conduct, supervise, and coordinate audits and investigations of the treatment, handling, and expenditure of amounts appropriated or otherwise made available for use by States (and of the programs, operations, and contracts carried out using such funds) including— (A) audits and investigations with respect to— (i) the oversight and accounting of the obligation and expenditure of such funds; (ii) the monitoring and review of— (I) activities funded by such funds; (II) contracts funded by such funds; and (III) the transfer of such funds from States to other entities, including businesses and nongovernmental entities; (iii) the maintenance of records by States on the use of such funds to facilitate future audits and investigations; (iv) overpayments, such as duplicate payments or duplicate billing; and (v) any potential unethical or illegal actions of Federal employees or employees of States, contractors, or nongovernmental entities related to the treatment, handling, obligation , or expenditure of such funds; and (B) the referral of findings of such audits and investigations (as necessary) to the Department of Justice to ensure further investigations, prosecutions, recovery of funds, or other remedies. (2) Other duties related to oversight The Inspector General shall establish, maintain, and oversee such systems, procedures, and controls as the Inspector General considers appropriate to discharge the duties specified under paragraph (1). (3) Duties and responsibilities under Inspector General Act of 1978 In addition to the duties specified in paragraphs (1) and (2), the Inspector General shall also have the duties and responsibilities of Inspectors General under the Inspector General Act of 1978 (5 U.S.C. App.). (4) Audit standards The Inspector General shall carry out the duties specified in paragraph (1) in accordance with section 4(b)(1) of the Inspector General Act of 1978. (f) Powers and authorities In carrying out the duties specified in subsection (e), the Inspector General shall have the authorities provided in section 6 of the Inspector General Act of 1978, including the authorities under section 6(e). (g) Personnel, facilities, and other resources (1) Personnel The Inspector General may select, appoint, and employ such officers and employees as may be necessary for carrying out the duties of the Inspector General, subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification and General Schedule pay rates. (2) Employment of experts and consultants The Inspector General may obtain services as authorized by section 3109 of title 5, United States Code, at daily rates not to exceed the equivalent rate prescribed for grade GS–15 of the General Schedule by section 5332 of such title. (3) Contracting authority To the extent and in such amounts as may be provided in advance by appropriations Acts, the 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) Resources The Secretary of Housing and Urban Development, as appropriate, shall provide the Inspector General with appropriate and adequate office space at appropriate locations of the Department of Housing and Urban Development, together with such equipment, office supplies, and communications facilities and services as may be necessary for the operation of such offices, and shall provide necessary maintenance services for such offices and the equipment and facilities located therein. (5) Assistance from Federal agencies (A) In general Upon request of the Inspector General for information or assistance from any department, agency, or other entity of a State or the Federal Government, the head of such entity shall, insofar as is practicable and not in contravention of any existing law, furnish such information or assistance to the Inspector General, or a designee of the Inspector General. (B) Reporting of refused assistance Whenever information or assistance requested by the Inspector General is, in the judgment of the Inspector General, unreasonably refused or not provided, the Inspector General shall report the circumstances to the Department of Justice, as appropriate, and to the appropriate congressional committees without delay. (h) Reports (1) Quarterly reports Not later than 30 days after the end of each fiscal-year quarter, the Inspector General shall submit to the appropriate congressional committees a report summarizing, for the period of that quarter and, to the extent possible, the period from the end of such quarter to the time of the submission of the report, the activities during such period of the Inspector General and the activities under programs and operations funded with amounts appropriated or otherwise made available for use by States. Each report shall include, for the period covered by such report, a detailed statement of all obligations, expenditures, and revenues associated with such funds, including the following: (A) Obligations and expenditures of such funds. (B) Detailed operating expenses of States that are related to the use of such funds. (C) In the case of any contract, grant, agreement, or other funding mechanism described in paragraph (2)— (i) the amount of the contract, grant, agreement, or other funding mechanism; (ii) a brief discussion of the scope of the contract, grant, agreement, or other funding mechanism; (iii) a discussion of how the State involved in the contract, grant, agreement, or other funding mechanism identified, and solicited offers or applications from, potential individuals or entities to perform the contract or activities under the grant, agreement, or other funding mechanism; (iv) a list of the potential individuals or entities that were issued solicitations for the offers or applications; and (v) the justification and approval documents on which was based any determination to use procedures other than procedures that provide for full and open competition with respect to the contract, grant, agreement, or other funding mechanism. (2) Covered contracts, grants, agreements, and funding mechanisms A contract, grant, agreement, or other funding mechanism described in this paragraph is any major contract, grant, agreement, or other funding mechanism with any public or private entity that— (A) is entered into by a State— (i) to build or rebuild physical infrastructure of such State; or (ii) to provide products or services to the people of such State; and (B) involves the use of amounts appropriated or otherwise made available for use by such State. (3) Public availability The Inspector General shall publish on a publicly available website each report required under this subsection. (4) Form Each report required under this subsection shall be submitted in unclassified form, but may include a classified annex if the Inspector General considers it necessary. (5) Rule of construction Nothing in this subsection shall be construed to authorize the public disclosure of information that is— (A) specifically prohibited from disclosure by any other provision of law; (B) specifically required by Executive order to be protected from disclosure in the interest of national defense or national security or in the conduct of foreign affairs; or (C) a part of an ongoing criminal investigation. (i) Report coordination (1) Submission to secretary of housing and urban development The Inspector General shall also submit each report required under subsection (h) to the Secretary of Housing and Urban Development. (2) Submission to Congress (A) In general Not later than 30 days after receipt of a report under paragraph (1), the Secretary of Housing and Urban Development may submit to the appropriate congressional committees any comments on the matters covered by the report the Secretary of Housing and Urban Development deems appropriate. (B) Classified annex Any comments on the matters covered by the report shall be submitted in unclassified form, but may include a classified annex if the Secretary of Housing and Urban Development, as the case may be, considers it necessary. (j) Transparency (1) Report Not later than 60 days after submission to the appropriate congressional committees of a report under subsection (i), the Secretary of Housing and Urban Development shall make copies of the report available to the public upon request, and at a reasonable cost. (2) Comments on matters covered by report Not later than 180 days after submission to the appropriate congressional committees under subsection (i)(2) of comments on a report under subsection (h), the Secretary of Housing and Urban Development shall make copies of the comments available to the public upon request, and at a reasonable cost. (k) Authorization of appropriations There is authorized to be appropriated $20,000,000 for fiscal year 2022 to carry out this section. (l) Termination The Office of the Special Inspector General shall terminate on the date 5 years after the enactment of this Act. (m) Definitions In this section: (1) Amounts appropriated or otherwise made available for use by States The term amounts appropriated or otherwise made available for use by States means amounts appropriated or otherwise made available for any fiscal year by an entity of the Federal Government for use by a State, including amounts appropriated or otherwise made available for use by a State under the following: (A) The Coronavirus State and Local Fiscal Recovery Fund. (B) The Emergency Rental Assistance Program. (C) The Coronavirus Relief Fund. (2) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committees on Appropriations and Commerce, Science, and Transportation of the Senate; (B) the Committees on Appropriations and Transportation and Infrastructure of the House of Representatives; and (C) the Committees of Congress with jurisdiction over the Department of Housing and Urban Development. (3) Inspector General The term Inspector General means the Special Inspector General for State Spending and Waste. (4) Office The term Office means the Office of the Special Inspector General for State Spending and Waste. (5) State The term State means the 50 States of the United States of America and the District of Columbia.