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H. R. 5985: To Establish the Office of the Special Inspector General for State Spending and Waste, and for Other Purposes (117th Congress)

Summary

H.R. 5985, the SIGSSAW Act, was introduced in the House of Representatives on November 16, 2021 by Ms. Malliotakis and Mr. Donalds and referred to the Committee on Oversight and Reform. It would establish the Office of the Special Inspector General for State Spending and Waste, with a head appointed by the President. The bill states that the office is to supervise audits and investigations relating to programs and operations funded with amounts appropriated or otherwise made available for use by States, and to prevent and detect waste, fraud, and abuse. It also includes reporting and transparency provisions.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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Cite this document

“H. R. 5985: To Establish the Office of the Special Inspector General for State Spending and Waste, and for Other Purposes (117th Congress).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr5985ih-bills-117hr5985ih/, SHA-256 6394137324125520ba92de3514b056107c07740b2f80fbb3fa7ff6c929454364.

Full text

                                                                                                                                                                          I




                                                                       117TH CONGRESS
                                                                          1ST SESSION
                                                                                                            H. R. 5985
                                                                          To establish the Office of the Special Inspector General for State Spending
                                                                                              and Waste, and for other purposes.




                                                                                     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              Be it enacted by the Senate and House of Representa-
                                                                         2 tives of the United States of America in Congress assembled,
                                                                         3     SECTION 1. SHORT TITLE.

                                                                         4              This Act may be cited as the ‘‘SIGSSAW Act’’.
                                                                         5     SEC. 2. SPECIAL INSPECTOR GENERAL FOR STATE SPEND-

                                                                         6                             ING AND WASTE.

                                                                         7              (a) PURPOSES.—The purposes of this section are as
                                                                         8 follows:




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                                                                         9                       (1) To provide for the independent and objec-
                                                                       10               tive conduct and supervision of audits and investiga-



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                                                                         1              tions relating to the programs and operations funded
                                                                         2              with amounts appropriated or otherwise made avail-
                                                                         3              able for use by States.
                                                                         4                       (2) To provide for the independent and objec-
                                                                         5              tive leadership and coordination of, and rec-
                                                                         6              ommendations on, policies designed to—
                                                                         7                                 (A) promote economy efficiency, and effec-
                                                                         8                       tiveness in the administration of the programs
                                                                         9                       and operations described in paragraph (1); and
                                                                       10                                  (B) prevent and detect waste, fraud, and
                                                                       11                        abuse in such programs and operations.
                                                                       12               (b) OFFICE               OF       INSPECTOR GENERAL.—There is
                                                                       13 hereby established the Office of the Special Inspector Gen-
                                                                       14 eral for State Spending and Waste to carry out the pur-
                                                                       15 poses of subsection (a).
                                                                       16               (c) APPOINTMENT OF INSPECTOR GENERAL; RE-
                                                                       17      MOVAL.—

                                                                       18                        (1) APPOINTMENT.—The head of the Office is
                                                                       19               the Special Inspector General for State Spending
                                                                       20               and Waste, who shall be appointed by the President.
                                                                       21                        (2) QUALIFICATIONS.—The appointment of the
                                                                       22               Inspector General shall be made solely on the basis
                                                                       23               of integrity and demonstrated ability in accounting,
                                                                       24               auditing, financial analysis, law, management anal-



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                                                                       25               ysis, public administration, or investigations.


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                                                                         1                       (3) DEADLINE FOR APPOINTMENT.—The ap-
                                                                         2              pointment of an individual as Inspector General
                                                                         3              shall be made not later than 30 days after the date
                                                                         4              of the enactment of this Act.
                                                                         5                       (4) COMPENSATION.—The annual rate of basic
                                                                         6              pay of the Inspector General shall be the annual rate
                                                                         7              of basic pay provided for positions at level IV of the
                                                                         8              Executive Schedule under section 5315 of title 5,
                                                                         9              United States Code.
                                                                       10                        (5) PROHIBITION ON POLITICAL ACTIVITIES.—
                                                                       11               For purposes of section 7324 of title 5, United
                                                                       12               States Code, the Inspector General shall not be con-
                                                                       13               sidered an employee who determines policies to be
                                                                       14               pursued by the United States in the nationwide ad-
                                                                       15               ministration of Federal law.
                                                                       16                        (6) REMOVAL.—The Inspector General shall be
                                                                       17               removable from office in accordance with the provi-
                                                                       18               sions of section 3(b) of the Inspector General Act of
                                                                       19               1978 (5 U.S.C. App.).
                                                                       20               (d) SUPERVISION.—
                                                                       21                        (1) IN GENERAL.—Except as provided in para-
                                                                       22               graph (2), the Inspector General shall report directly
                                                                       23               to, and be under the general supervision of the Sec-
                                                                       24               retary of Housing and Urban Development.



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                                                                         1                       (2) INDEPENDENCE TO CONDUCT INVESTIGA-
                                                                         2              TIONS AND AUDITS.—No officer of the Department

                                                                         3              of Housing and Urban Development shall prevent or
                                                                         4              prohibit the Inspector General from initiating, car-
                                                                         5              rying out, or completing any audit or investigation
                                                                         6              related to amounts appropriated or otherwise made
                                                                         7              available for use by States with or from issuing any
                                                                         8              subpoena during the course of any such audit or in-
                                                                         9              vestigation.
                                                                       10               (e) DUTIES.—
                                                                       11                        (1) OVERSIGHT OF SPENDING BY STATES.—It
                                                                       12               shall be the duty of the Inspector General to con-
                                                                       13               duct, supervise, and coordinate audits and investiga-
                                                                       14               tions of the treatment, handling, and expenditure of
                                                                       15               amounts appropriated or otherwise made available
                                                                       16               for use by States (and of the programs, operations,
                                                                       17               and contracts carried out using such funds) includ-
                                                                       18               ing—
                                                                       19                                  (A) audits and investigations with respect
                                                                       20                        to—
                                                                       21                                         (i) the oversight and accounting of the
                                                                       22                                  obligation and expenditure of such funds;
                                                                       23                                         (ii) the monitoring and review of—
                                                                       24                                                  (I) activities funded by such



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                                                                       25                                         funds;


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                                                                         1                                                 (II) contracts funded by such
                                                                         2                                        funds; and
                                                                         3                                                 (III) the transfer of such funds
                                                                         4                                        from States to other entities, includ-
                                                                         5                                        ing businesses and nongovernmental
                                                                         6                                        entities;
                                                                         7                                        (iii) the maintenance of records by
                                                                         8                                 States on the use of such funds to facili-
                                                                         9                                 tate future audits and investigations;
                                                                       10                                         (iv) overpayments, such as duplicate
                                                                       11                                  payments or duplicate billing; and
                                                                       12                                         (v) any potential unethical or illegal
                                                                       13                                  actions of Federal employees or employees
                                                                       14                                  of States, contractors, or nongovernmental
                                                                       15                                  entities related to the treatment, handling,
                                                                       16                                  obligation, or expenditure of such funds;
                                                                       17                                  and
                                                                       18                                  (B) the referral of findings of such audits
                                                                       19                        and investigations (as necessary) to the Depart-
                                                                       20                        ment of Justice to ensure further investigations,
                                                                       21                        prosecutions, recovery of funds, or other rem-
                                                                       22                        edies.
                                                                       23                        (2) OTHER DUTIES RELATED TO OVERSIGHT.—
                                                                       24               The Inspector General shall establish, maintain, and



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                                                                       25               oversee such systems, procedures, and controls as


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                                                                         1              the Inspector General considers appropriate to dis-
                                                                         2              charge the duties specified under paragraph (1).
                                                                         3                       (3) DUTIES AND RESPONSIBILITIES UNDER IN-
                                                                         4              SPECTOR GENERAL ACT OF 1978.—In addition to the

                                                                         5              duties specified in paragraphs (1) and (2), the In-
                                                                         6              spector General shall also have the duties and re-
                                                                         7              sponsibilities of Inspectors General under the In-
                                                                         8              spector General Act of 1978 (5 U.S.C. App.).
                                                                         9                       (4) AUDIT STANDARDS.—The Inspector General
                                                                       10               shall carry out the duties specified in paragraph (1)
                                                                       11               in accordance with section 4(b)(1) of the Inspector
                                                                       12               General Act of 1978.
                                                                       13               (f) POWERS AND AUTHORITIES.—In carrying out the
                                                                       14 duties specified in subsection (e), the Inspector General
                                                                       15 shall have the authorities provided in section 6 of the In-
                                                                       16 spector General Act of 1978, including the authorities
                                                                       17 under section 6(e).
                                                                       18               (g) PERSONNEL, FACILITIES,                                     AND         OTHER RE-
                                                                       19      SOURCES.—

                                                                       20                        (1) PERSONNEL.—The Inspector General may
                                                                       21               select, appoint, and employ such officers and em-
                                                                       22               ployees as may be necessary for carrying out the du-
                                                                       23               ties of the Inspector General, subject to the provi-
                                                                       24               sions of title 5, United States Code, governing ap-



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                                                                       25               pointments in the competitive service, and the provi-


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                                                                         1              sions of chapter 51 and subchapter III of chapter 53
                                                                         2              of such title, relating to classification and General
                                                                         3              Schedule pay rates.
                                                                         4                       (2) EMPLOYMENT OF EXPERTS AND CONSULT-
                                                                         5              ANTS.—The Inspector General may obtain services

                                                                         6              as authorized by section 3109 of title 5, United
                                                                         7              States Code, at daily rates not to exceed the equiva-
                                                                         8              lent rate prescribed for grade GS–15 of the General
                                                                         9              Schedule by section 5332 of such title.
                                                                       10                        (3) CONTRACTING AUTHORITY.—To the extent
                                                                       11               and in such amounts as may be provided in advance
                                                                       12               by appropriations Acts, the Inspector General may
                                                                       13               enter into contracts and other arrangements for au-
                                                                       14               dits, studies, analyses, and other services with public
                                                                       15               agencies and with private persons, and make such
                                                                       16               payments as may be necessary to carry out the du-
                                                                       17               ties of the Inspector General.
                                                                       18                        (4) RESOURCES.—The Secretary of Housing
                                                                       19               and Urban Development, as appropriate, shall pro-
                                                                       20               vide the Inspector General with appropriate and ade-
                                                                       21               quate office space at appropriate locations of the De-
                                                                       22               partment of Housing and Urban Development, to-
                                                                       23               gether with such equipment, office supplies, and
                                                                       24               communications facilities and services as may be



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                                                                       25               necessary for the operation of such offices, and shall


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                                                                         1              provide necessary maintenance services for such of-
                                                                         2              fices and the equipment and facilities located there-
                                                                         3              in.
                                                                         4                       (5) ASSISTANCE FROM FEDERAL AGENCIES.—
                                                                         5                                 (A) IN GENERAL.—Upon request of the In-
                                                                         6                       spector General for information or assistance
                                                                         7                       from any department, agency, or other entity of
                                                                         8                       a State or the Federal Government, the head of
                                                                         9                       such entity shall, insofar as is practicable and
                                                                       10                        not in contravention of any existing law, furnish
                                                                       11                        such information or assistance to the Inspector
                                                                       12                        General, or a designee of the Inspector General.
                                                                       13                                  (B) REPORTING                      OF       REFUSED            ASSIST-

                                                                       14                        ANCE.—Whenever information or assistance re-

                                                                       15                        quested by the Inspector General is, in the
                                                                       16                        judgment of the Inspector General, unreason-
                                                                       17                        ably refused or not provided, the Inspector Gen-
                                                                       18                        eral shall report the circumstances to the De-
                                                                       19                        partment of Justice, as appropriate, and to the
                                                                       20                        appropriate congressional committees without
                                                                       21                        delay.
                                                                       22               (h) REPORTS.—
                                                                       23                        (1) QUARTERLY REPORTS.—Not later than 30
                                                                       24               days after the end of each fiscal-year quarter, the



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                                                                       25               Inspector General shall submit to the appropriate


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                                                                         1              congressional committees a report summarizing, for
                                                                         2              the period of that quarter and, to the extent pos-
                                                                         3              sible, the period from the end of such quarter to the
                                                                         4              time of the submission of the report, the activities
                                                                         5              during such period of the Inspector General and the
                                                                         6              activities under programs and operations funded
                                                                         7              with amounts appropriated or otherwise made avail-
                                                                         8              able for use by States. Each report shall include, for
                                                                         9              the period covered by such report, a detailed state-
                                                                       10               ment of all obligations, expenditures, and revenues
                                                                       11               associated with such funds, including the following:
                                                                       12                                  (A) Obligations and expenditures of such
                                                                       13                        funds.
                                                                       14                                  (B) Detailed operating expenses of States
                                                                       15                        that are related to the use of such funds.
                                                                       16                                  (C) In the case of any contract, grant,
                                                                       17                        agreement, or other funding mechanism de-
                                                                       18                        scribed in paragraph (2)—
                                                                       19                                         (i) the amount of the contract, grant,
                                                                       20                                  agreement, or other funding mechanism;
                                                                       21                                         (ii) a brief discussion of the scope of
                                                                       22                                  the contract, grant, agreement, or other
                                                                       23                                  funding mechanism;
                                                                       24                                         (iii) a discussion of how the State in-



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                                                                       25                                  volved in the contract, grant, agreement,


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                                                                         1                                 or other funding mechanism identified, and
                                                                         2                                 solicited offers or applications from, poten-
                                                                         3                                 tial individuals or entities to perform the
                                                                         4                                 contract or activities under the grant,
                                                                         5                                 agreement, or other funding mechanism;
                                                                         6                                        (iv) a list of the potential individuals
                                                                         7                                 or entities that were issued solicitations for
                                                                         8                                 the offers or applications; and
                                                                         9                                        (v) the justification and approval doc-
                                                                       10                                  uments on which was based any determina-
                                                                       11                                  tion to use procedures other than proce-
                                                                       12                                  dures that provide for full and open com-
                                                                       13                                  petition with respect to the contract, grant,
                                                                       14                                  agreement, or other funding mechanism.
                                                                       15                        (2) COVERED                      CONTRACTS,             GRANTS,           AGREE-

                                                                       16               MENTS, AND FUNDING MECHANISMS.—A                                                  contract,
                                                                       17               grant, agreement, or other funding mechanism de-
                                                                       18               scribed in this paragraph is any major contract,
                                                                       19               grant, agreement, or other funding mechanism with
                                                                       20               any public or private entity that—
                                                                       21                                  (A) is entered into by a State—
                                                                       22                                         (i) to build or rebuild physical infra-
                                                                       23                                  structure of such State; or
                                                                       24                                         (ii) to provide products or services to



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                                                                       25                                  the people of such State; and


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                                                                         1                                 (B) involves the use of amounts appro-
                                                                         2                       priated or otherwise made available for use by
                                                                         3                       such State.
                                                                         4                       (3)       PUBLIC             AVAILABILITY.—The                           Inspector
                                                                         5              General shall publish on a publicly available website
                                                                         6              each report required under this subsection.
                                                                         7                       (4) FORM.—Each report required under this
                                                                         8              subsection shall be submitted in unclassified form,
                                                                         9              but may include a classified annex if the Inspector
                                                                       10               General considers it necessary.
                                                                       11                        (5) RULE OF CONSTRUCTION.—Nothing in this
                                                                       12               subsection shall be construed to authorize the public
                                                                       13               disclosure of information that is—
                                                                       14                                  (A) specifically prohibited from disclosure
                                                                       15                        by any other provision of law;
                                                                       16                                  (B) specifically required by Executive order
                                                                       17                        to be protected from disclosure in the interest
                                                                       18                        of national defense or national security or in
                                                                       19                        the conduct of foreign affairs; or
                                                                       20                                  (C) a part of an ongoing criminal inves-
                                                                       21                        tigation.
                                                                       22               (i) REPORT COORDINATION.—
                                                                       23                        (1) SUBMISSION TO SECRETARY OF HOUSING
                                                                       24               AND URBAN DEVELOPMENT.—The Inspector General




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                                                                       25               shall also submit each report required under sub-


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                                                                         1              section (h) to the Secretary of Housing and Urban
                                                                         2              Development.
                                                                         3                       (2) SUBMISSION TO CONGRESS.—
                                                                         4                                 (A) IN GENERAL.—Not later than 30 days
                                                                         5                       after receipt of a report under paragraph (1),
                                                                         6                       the Secretary of Housing and Urban Develop-
                                                                         7                       ment may submit to the appropriate congres-
                                                                         8                       sional committees any comments on the matters
                                                                         9                       covered by the report the Secretary of Housing
                                                                       10                        and Urban Development deems appropriate.
                                                                       11                                  (B) CLASSIFIED ANNEX.—Any comments
                                                                       12                        on the matters covered by the report shall be
                                                                       13                        submitted in unclassified form, but may include
                                                                       14                        a classified annex if the Secretary of Housing
                                                                       15                        and Urban Development, as the case may be,
                                                                       16                        considers it necessary.
                                                                       17               (j) TRANSPARENCY.—
                                                                       18                        (1) REPORT.—Not later than 60 days after
                                                                       19               submission to the appropriate congressional commit-
                                                                       20               tees of a report under subsection (i), the Secretary
                                                                       21               of Housing and Urban Development shall make cop-
                                                                       22               ies of the report available to the public upon request,
                                                                       23               and at a reasonable cost.
                                                                       24                        (2) COMMENTS ON MATTERS COVERED BY RE-



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                                                                       25               PORT.—Not later than 180 days after submission to



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                                                                         1              the appropriate congressional committees under sub-
                                                                         2              section (i)(2) of comments on a report under sub-
                                                                         3              section (h), the Secretary of Housing and Urban De-
                                                                         4              velopment shall make copies of the comments avail-
                                                                         5              able to the public upon request, and at a reasonable
                                                                         6              cost.
                                                                         7              (k) AUTHORIZATION OF APPROPRIATIONS.—There is
                                                                         8 authorized to be appropriated $20,000,000 for fiscal year
                                                                         9 2022 to carry out this section.
                                                                       10               (l) TERMINATION.—The Office of the Special Inspec-
                                                                       11 tor General shall terminate on the date 5 years after the
                                                                       12 enactment of this Act.
                                                                       13               (m) DEFINITIONS.—In this section:
                                                                       14                        (1) AMOUNTS APPROPRIATED OR OTHERWISE
                                                                       15               MADE AVAILABLE FOR USE BY STATES.—The term

                                                                       16               ‘‘amounts appropriated or otherwise made available
                                                                       17               for use by States’’ means amounts appropriated or
                                                                       18               otherwise made available for any fiscal year by an
                                                                       19               entity of the Federal Government for use by a State,
                                                                       20               including amounts appropriated or otherwise made
                                                                       21               available for use by a State under the following:
                                                                       22                                  (A) The Coronavirus State and Local Fis-
                                                                       23                        cal Recovery Fund.
                                                                       24                                  (B) The Emergency Rental Assistance



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                                                                       25                        Program.


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                                                                         1                                 (C) The Coronavirus Relief Fund.
                                                                         2                       (2) APPROPRIATE                        CONGRESSIONAL                     COMMIT-

                                                                         3              TEES.—The                term ‘‘appropriate congressional com-
                                                                         4              mittees’’ means—
                                                                         5                                 (A) the Committees on Appropriations and
                                                                         6                       Commerce, Science, and Transportation of the
                                                                         7                       Senate;
                                                                         8                                 (B) the Committees on Appropriations and
                                                                         9                       Transportation and Infrastructure of the House
                                                                       10                        of Representatives; and
                                                                       11                                  (C) the Committees of Congress with juris-
                                                                       12                        diction over the Department of Housing and
                                                                       13                        Urban Development.
                                                                       14                        (3) INSPECTOR GENERAL.—The term ‘‘Inspec-
                                                                       15               tor General’’ means the Special Inspector General
                                                                       16               for State Spending and Waste.
                                                                       17                        (4) OFFICE.—The term ‘‘Office’’ means the Of-
                                                                       18               fice of the Special Inspector General for State
                                                                       19               Spending and Waste.
                                                                       20                        (5) STATE.—The term ‘‘State’’ means the 50
                                                                       21               States of the United States of America and the Dis-
                                                                       22               trict of Columbia.
                                                                                                                                  Æ




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