Sec. 3. Ethics and conflicts of interest
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The purpose of this section is to set forth standards to address and prevent conflicts of interest or abuses of authority that may arise in connection with the administration and execution of the authorities under a Coronavirus pandemic-related program, project, or activity, including under the CARES Act. The Director shall issue regulations necessary to address and prevent conflicts of interest or abuses of authority that may arise in connection with the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity, including— conflicts arising in the selection or hiring of covered contractors or advisors, including contractors, banks, and other private sector entities involved in the administration of programs or services authorized under paragraph
(36)of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) or under section 4003 of the CARES Act; the management, administration, or distribution of funds, grants, loans, loan guarantees, or other investments under a Coronavirus pandemic-related program, project, or activity; post-employment restrictions on Federal officers and employees; any exercise of authority by Federal officers and employees that adversely affects the rights of any person, or that results in personal gain or advantage to the officer or employee; and any other potential conflict of interest or abuse of authority, as the Director determines necessary or appropriate in the public interest. As soon as practicable after the date of enactment of this Act, but in any event not later than 60 days after such date of enactment, the Director shall issue the ethics and conflicts of interest regulations. To the extent compliance with the requirements under subchapter II of chapter 5 of title 5, United States Code, would prevent the Director from complying with the timeframe specified under paragraph
(1)for issuance of the ethics and conflicts of interest regulations, such subchapter shall not apply to the issuance of the ethics and conflicts of interest regulations. The ethics and conflicts of interest regulations shall address actual and potential conflicts of interest, or circumstances that give rise to the appearance of a conflict of interest to a reasonable person, including— any actual or potential personal conflict of interest, including any personal, business, or financial interest of any individual involved in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity or such an interest of a spouse, child, parent, sibling, son-in-law, or daughter-in-law of such an individual; and any actual or potential conflict of interest of a covered contractor, including any political activity that creates the appearance of a conflict of interest to a reasonable person, or any situation in which a covered contractor has an interest or relationship that could cause a reasonable person with knowledge of the relevant facts to question the objectivity, impartiality, or judgment of the covered contractor to perform under a covered contract or to represent the Federal Government. The ethics and conflicts of interest regulations shall require— a covered contractor to maintain a compliance program reasonably designed to detect and prevent violations of Federal law, including Federal securities laws, and conflicts of interest; and that such a compliance program— include plans to mitigate any conflict of interest, including any personal conflict of interest of any individual performing duties under a covered contract; allow for the Director or the designated agency ethics official for the applicable Federal agency to disapprove any plan described in clause
(i)that is insufficient; be posted by the covered contractor on the public website of the covered contractor; and be provided to the Director or to the designated agency ethics official for the applicable Federal agency. The ethics and conflicts of interest regulations shall require a covered contractor to provide to the Director or the designated agency ethics official for the applicable Federal agency, upon request or through a process specified in the ethics and conflicts of interest regulations, sufficient information to evaluate any conflict of interest, which may include— the relationship of the covered contractor to any other involved contractors or advisors; information concerning all other business or financial interests of the covered contractor, the proposed subcontractors of the covered contractor, or entities related to the covered contractor (including any parent company or subsidiary of a covered contractor, any entity holding more than a 5 percent equity interest in the covered contractor, and any entity in which the covered contractor holds more than a 5 percent equity interest); a description of all of the conflicts of interest and potential conflicts of interest of the covered contractor; a detailed written plan to mitigate all of the conflicts of interest and potential conflicts of interest of the covered contractor, along with supporting documents; and any other information or documentation about the covered contractor, the proposed subcontractors of the covered contractor, or entities related to the covered contractor that the Director or the designated agency ethics official for the applicable Federal agency may request. On and after the effective date of the ethics and conflicts of interest regulations, the Federal Government may not enter into (or renew) a covered contract, unless the covered contract includes enforceable terms and conditions to enforce the ethics and conflicts of interest regulations. With respect to a covered contract entered into before the effective date of the ethics and conflicts of interest regulations, the head of the Federal agency that entered into the covered contract and the contracting officers of the Federal agency shall make efforts, to the maximum extent practicable and as part of the first amendment or modification to the contract after such effective date, to update the covered contract to include and enforce the ethics and conflicts of interest regulations. The ethics and conflicts of interest regulations— shall require a covered contractor to submit, under penalty of perjury, to the Director or the designated agency ethics official for the applicable Federal agency a written certification— certifying that no conflicts of interest exists (and that individuals performing services under the covered contract have no personal conflicts of interest); or explaining in detail— the extent to which the covered contractor can certify and describe the actions the covered contractor has taken and plans to take to mitigate any conflict of interest; and the timeframe for implementation for the actions described in subclause (I); and may specify the frequency with which a covered contractor shall submit a written certification described in subparagraph (A). The ethics and conflicts of interest regulations shall require covered contractors to— retain the information needed to comply with this section, including the written certifications required by this section, for a specified period of time; and make such information available to the Director or the designated agency ethics official for the applicable Federal agency upon request. The ethics and conflicts of interest regulations may restrict certain market activities by a covered contractor that are likely to cause impermissible conflicts of interest. Nothing in this section shall be construed to modify the application of chapter 21 of title 41, United States Code, to covered contracts or to covered contractors. The ethics and conflicts of interest regulations shall ensure that any individual (including any officer or employee of the executive branch of the Federal Government) who participates personally and substantially in the administration or execution of any Coronavirus pandemic-related program, project, or activity, through, for example, decision, approval, disapproval, recommendation, or the rendering of advice, has no personal or financial conflict of interest (including a situation that would cause a reasonable person with knowledge of the relevant facts to question the objectivity, impartiality, or judgment of the individual in such performance, or the ability of the individual to represent the interests of the Federal Government), unless mitigation measures have addressed the conflict to the satisfaction of the Director or the designated agency ethics official for the applicable Federal agency, or the conflict is waived in accordance with waiver rules. The ethics and conflicts of interest regulations may require certain officers or employees of the Federal Government to submit, in writing, information about their personal, business, and financial relationships, and such relationships of their spouses and dependent children, that would cause a reasonable person with knowledge of the relevant facts to question the objectivity, impartiality, or judgment of the officer or employee or the ability of the officer or employee to represent the interests of the Federal Government. To the extent practicable, the ethics and conflicts of interest regulations should ensure that the submission of information under subparagraph
(A)does duplicate the financial disclosures required under the Ethics in Government Act of 1978 (5 U.S.C. App.). The ethics and conflicts of interest regulations shall provide for appropriate and reasonable public disclosure of any information submitted under subparagraph (A). The ethics and conflicts of interest regulations shall specify circumstances in which an officer or employee of the Federal Government with an actual or potential personal conflict of interest is disqualified from performing work as part of the administration or execution of any Coronavirus pandemic-related program, project, or activity unless mitigation measures have addressed the conflict to the satisfaction of the Director or the designated agency ethics official for the applicable Federal agency. The ethics and conflicts of interest regulations may establish a process by which individuals may seek a waiver of disqualification from the Director or the designated agency ethics official for the applicable Federal agency if it is clear from the totality of the circumstances that a waiver is in the interest of the Federal Government. The ethics and conflicts of interest regulations shall restrict officers and employees of the Federal Government and covered contractors involved in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity and covered contractors from accepting or soliciting favors, gifts, or other items of significant monetary value from any individual or entity seeking official action from the Federal Government in connection with the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity. Nothing in this subsection shall be construed to modify the application of subpart B of part 2635 of title 5, Code of Federal Regulations (relating to gifts from outside sources). The ethics and conflicts of interest regulations shall restrict the improper use of property of the United States for the benefit of any individual or entity other than the United States in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity. Nothing in this subsection shall be construed to modify the application of section 2635.703 of title 5, Code of Federal Regulations (relating to use of nonpublic information). The ethics and conflicts of interest regulations shall restrict officers and employees of the Federal Government involved in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity and covered contractors from making any unauthorized promise or commitment on behalf of the United States in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity. Nothing in this subsection shall be construed to modify the application of section 1341 of title 31, United States Code (relating to limitations on expending and obligating amounts). The ethics and conflicts of interest regulations— shall establish post-employment restrictions (in addition to the restrictions in effect under section 207 of title 18, United States Code) applicable to officers and employees of the Federal Government involved in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity necessary to ensure ethical administration of the Coronavirus pandemic-related program, project, or activity, which shall, at a minimum, prohibit such an officer or employee of an executive agency from engaging in lobbying activities with respect to the executive agency during the 5-year period beginning on the date of separation from service with the executive agency; and may include restrictions on officers and employees of the Federal Government involved in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity seeking, negotiating, discussing, or accepting employment or compensation from any private sector entity with respect to which the officer or employee personally or substantially participated in (through decision, approval, disapproval, recommendation) the provision of funds, grants, loans, loan guarantees, or other investments under the Coronavirus pandemic-related program, project, or activity. The ethics and conflicts of interest regulations shall prohibit, during the course of any process for selecting a covered contractor (including any process using non-competitive procedures), an entity participating in the process or a representative of the entity from— directly or indirectly making any offer or promise of future employment or business opportunity to, or engaging directly or indirectly in any discussion of future employment or business opportunity with, any officer or employee of the Federal Government with personal or direct responsibility for that procurement; offering, giving, or promising to offer or give, directly or indirectly, any money, gratuity, or other thing of value to any officer or employee of the Federal Government, except as otherwise permitted by law; or soliciting or obtaining from any officer or employee of the Federal Government, directly or indirectly, any information that is not public and was prepared for use by the United States for the purpose of evaluating an offer, quotation, or response to enter into an arrangement with the United States. Nothing in this section shall be construed to modify that any individual who acts for or on behalf of the United States in the administration and execution of the authorities under a Coronavirus pandemic-related program, project, or activity— shall comply with sections 201 and 208 of title 18, United States Code; and may be subject to criminal penalties for violating such sections. Nothing in this section shall be construed to modify the application of section 1001 of title 18, United States Code (relating to the making of any false or fraudulent statement to a Federal officer), to any information or certification submitted to the United States by an individual or entity under the ethics and conflicts of interest regulations. If the Director or a designated agency ethics official receives information indicating that any individual or entity has violated any provision of title 18, United States Code, or another provision of criminal law (including any provision involving fraud, conflict of interest, bribery, or gratuity violations under title 18, United States Code) or violated sections 3729 through 3733 of title 31, United States Code (commonly known as the “False Claims Act”), in the administration or execution of the authorities under a Coronavirus pandemic-related program, project, or activity, the Director or designated agency ethics official shall refer the alleged violation to the Attorney General and report the alleged violation to the Special Inspector General for Pandemic Relief, the Congressional Oversight Commission, and the Pandemic Response Accountability Committee. The ethics and conflicts of interest regulations shall provide that— if an officer or employee of the Federal Government violates a requirement under the ethics and conflicts of interest regulations, the Director may take necessary and appropriate action authorized under section 402 of the Ethics in Government Act of 1978 (5 U.S.C. App.); and if a covered contractor violates a requirement under the ethics and conflicts of interest regulations, the Director may impose or pursue sanctions, which may include— termination of the covered contract; debarment of the covered contractor for Federal Government contracting or otherwise disqualifying the covered contractor from receiving Federal contracts; requiring the covered contractor to remove 1 or more employees of the covered contractor from the performance of the covered contract; requiring the covered contractor to terminate a subcontract; suspension of payments under the covered contract until the covered contractor has taken appropriate remedial action; loss of award fee, consistent with the award fee plan, for the performance period during which the Director determines the covered contractor violated the requirement; declining to exercise available options under the covered contract; or the imposition or recommendation of any other remedy available under the terms of the covered contract or another provision of law. The ethics and conflicts of interest regulations shall require the Director and a designated agency ethics official to report any violation of a requirement under the ethics and conflicts of interest regulations and any action taken by the Director relating to the violation to the Special Inspector General for Pandemic Recovery, the Congressional Oversight Commission, and the Pandemic Response Accountability Committee. The ethics and conflicts of interest regulations may establish a process under which a requirement under the ethics and conflicts of interest regulations may be waived if it is clear from the totality of the circumstances that a waiver is in the interest of the Federal Government. There is appropriated to the Director for the fiscal year ending September 30, 2020, out of any money in the Treasury not otherwise appropriated, $25,000,000 to carry out this section, to remain available until expended.
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Sec. 3
Ethics and conflicts of interest
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