Source: https://www.klgates.com/covid-19-congressional-investigations-and-pandemic-relief-oversight-mechanisms-04-21-2020
Timestamp: 2020-08-08 15:58:02
Document Index: 643071498

Matched Legal Cases: ['§ 4020', '§ 4003', '§ 4020', '§ 4020', '§ 4018', '§4018', '§ 4018', '§ 4018', '§ 15010', '§ 15010', '§ 15010', '§ 15010']

COVID-19: Congressional Investigations and Pandemic Relief Oversight Mechanisms | HUB | K&L Gates
By: Barry M. Hartman, Andrew M. Wright, David C. Rybicki
While these mechanisms will each have power to act independently, they must also be considered together. There will likely be dynamic interplay between law enforcement, inspector general accountability, and congressional oversight. Investigations commenced by one investigative body may generate additional investigations, information sharing, and criminal referrals to the Department of Justice (DOJ) and U.S. Attorney Offices throughout the country.1
Section 4020 of the CARES Act establishes a five-member bipartisan Congressional Oversight Commission (“Commission”) in the mold of the 9/11 Commission or the Congressional Oversight Panel that oversaw the TARP funds.2 The Act charges with Commission with “oversight of the implementation” of Subtitle IV of the Act by the Department of the Treasury and the Federal Reserve, “including efforts to provide economic stability” related to COVID-19.3 Subtitle IV includes a $500-billion loan and investment program, along with some provisions related to airline-related relief, as well as financial institution, housing, and consumer credit protections.4 Oversight will be robust given the Commission’s charge to report back to Congress no later than 30 days after the Department of the Treasury and Federal Reserve first exercise their lending authority under the Act and then issue reports every 30 days thereafter.5
The Commission has a five-year charter and an unspecified budget to be funded by the reimbursements from the Federal Reserve.6
Section 4018 of the Act establishes a presidentially appointed, Senate-confirmed special inspector general for pandemic recovery (“Special Inspector General”) within the Treasury Department.7 The Special Inspector General has a mandate to “conduct, supervise, and coordinate audits and investigations of the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under any program established by the Secretary under this Act, and the management by the Secretary of any program established under this Act.”8 That will largely focus on the $500 billion loan and investment program established under Section 4003 of the Act but will also extend to other Treasury programs. Like the Congressional Oversight Commission the Act creates, the Special Inspector General has regular reporting obligations pertaining to “all loans, loan guarantees, other transactions, obligations, and revenues” associated with the new relief programs.9
Instead of subpoena power, Congress established a congressional notice provision in Subsection (c)(4)(B) that requires the Special Inspector General to notify “appropriate committees of Congress without delay” if information is “unreasonably” withheld.10 President Trump issued a signing statement signaling that the administration does not deem itself bound by the notice provision.
The Act authorizes the Special Inspector General to operate for a five-year term and grants the position a $25-million budget.11
Section 15010 of the Act establishes the Pandemic Response Accountability Committee (IG Accountability Committee or Committee) with a five-year mandate to conduct and “support” oversight of the federal COVID-19 response and funding, including by coordinating oversight efforts by existing inspectors general.12 Some in Congress will undoubtedly interpret “support” of oversight as an obligation for the Committee to share information and otherwise coordinate with congressional investigations.
The Act locates the IG Accountability Committee within the existing Council of Inspectors General on Integrity and Efficiency (CIGIE). Pursuant to the Act, CIGIE’s chair, DOJ Inspector General Michael Horowitz, appointed Glenn Fine, acting inspector general of the Department of Defense, as chair of the IG Accountability Committee from a list of existing inspectors general. On April 6, President Trump removed Fine and appointed Environmental Protection Agency Inspector General Sean O’Donnell. The remainder of the IG Accountability Committee are the existing permanent or acting inspectors general of the Department of Health and Human Services, Department of Energy, Department of Homeland Security, Department of Justice, Department of Labor, Department of Treasury, Treasury Inspector General for Tax Administration, and Small Business Administration and any other inspectors general Horowitz selects. In addition, Horowitz may also select the IG Accountability Committee’s executive director and deputy executive director. The IG Accountability Committee has subpoena authority to obtain testimony from nonfederal persons and may hold hearings.13 The Act requires the Committee to operate a public website with extensive information.14 It has an unspecified budget, with such appropriated sums “as may be necessary to carry out the duties and functions of the Committee.”15
1 There are historical antecedents for this circumstance. For example, over 200 defendants were investigated, and over 113 convicted of fraud in connection with TARP.
2 TARP’s Congressional Oversight Panel was likewise a five-member independent entity within the legislative branch that was appointed by congressional leadership. Between December 2008 and March 2011 the Panel issued 30 reports and held 26 hearings related to TARP oversight. It is reasonable to expect a similarly intense level of activity by the CARES Act Commission.
3 CARES Act § 4020(b)(1)(A).
4 CARES Act § 4003.
5 CARES Act § 4020(b)(2)(A).
6 CARES Act § 4020(f)–(g).
7 President Trump nominated Senior Associate White House Counsel Brian Miller to be Special Inspector General on April 3, 2020.
8 CARES Act § 4018(c)(1).
9 CARES Act §4018(f)(1)(B).
10 § 4018(c)(4)(B).
11 CARES Act § 4018(g), (h).
12 CARES Act § 15010(b).
13 CARES Act § 15010(e)(3)(A).
14 CARES Act § 15010(g).
15 CARES Act § 15010(j).
Find more items tagged as: Investigations, Enforcement, and White Collar, Public Policy and Law, Responding to COVID-19, U.S. Congressional Investigations