SEC. 2. FULL DISCLOSURE OF ENTITIES
RECEIVING FEDERAL FUNDING.
(a) Definitions- In this section:
(1) ENTITY- The term `entity'--
(A) includes, whether for profit or
nonprofit--
(i) a corporation;
(ii) an association;
(iii) a partnership;
(iv) a limited liability company;
(v) a limited liability
partnership;
(vi) a sole proprietorship;
(vii) any other legal business
entity;
(viii) any other grantee or
contractor that is not excluded by subparagraph (B) or
(C); and
(ix) any State or locality;
(B) on and after January 1, 2009,
includes any subcontractor or subgrantee; and
(C) does not include--
(i) an individual recipient of
Federal assistance; or
(ii) a Federal employee.
(2) FEDERAL AWARD- The term `Federal
award'--
(A) means Federal financial
assistance and expenditures that--
(i) include grants, subgrants,
loans, awards, cooperative agreements, and other forms of
financial assistance;
(ii) include contracts,
subcontracts, purchase orders, task orders, and delivery
orders;
(B) does not include individual
transactions below $25,000; and
(C) before October 1, 2008, does not
include credit card transactions.
(3) SEARCHABLE WEBSITE- The term
`searchable website' means a website that allows the public
to--
(A) search and aggregate Federal
funding by any element required by subsection (b)(1);
(B) ascertain through a single
search the total amount of Federal funding awarded to an
entity by a Federal award described in paragraph (2)(A)(i),
by fiscal year;
(C) ascertain through a single
search the total amount of Federal funding awarded to an
entity by a Federal award described in paragraph (2)(A)(ii),
by fiscal year; and
(D) download data included in
subparagraph (A) included in the outcome from searches.
(b) In General-
(1) WEBSITE- Not later than January 1,
2008, the Office of Management and Budget shall, in accordance
with this section, section 204 of the E-Government Act of 2002
(Public Law 107-347; 44 U.S.C. 3501 note), and the Office of
Federal Procurement Policy Act (41 U.S.C. 403 et seq.), ensure
the existence and operation of a single searchable website,
accessible by the public at no cost to access, that includes
for each Federal award--
(A) the name of the entity receiving
the award;
(B) the amount of the award;
(C) information on the award
including transaction type, funding agency, the North
American Industry Classification System code or Catalog of
Federal Domestic Assistance number (where applicable),
program source, and an award title descriptive of the
purpose of each funding action;
(D) the location of the entity
receiving the award and the primary location of performance
under the award, including the city, State, congressional
district, and country;
(E) a unique identifier of the
entity receiving the award and of the parent entity of the
recipient, should the entity be owned by another entity;
and
`(F) the names
and total compensation of the five most highly compensated
officers of the entity if--
`(i) the entity in the preceding fiscal year received--
`(I) 80
percent or more of its annual gross revenues in Federal
awards; and
`(II)
$25,000,000 or more in annual gross revenues from Federal
awards; and
`(ii) the
public does not have access to information about the
compensation of the senior executives of the entity through
periodic reports filed under section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d))
or section 6104 of the Internal Revenue Code of 1986.'.
(G) any other relevant information
specified by the Office of Management and Budget.
(2) SCOPE OF DATA- The website shall
include data for fiscal year 2007, and each fiscal year
thereafter.
(3) DESIGNATION OF AGENCIES- The
Director of the Office of Management and Budget is authorized
to designate one or more Federal agencies to participate in
the development, establishment, operation, and support of the
single website. In the initial designation, or in subsequent
instructions and guidance, the Director may specify the scope
of the responsibilities of each such agency.
(4) AGENCY RESPONSIBILITIES- Federal
agencies shall comply with the instructions and guidance
issued by the Director of the Office of Management and Budget
under paragraph (3), and shall provide appropriate assistance
to the Director upon request, so as to assist the Director in
ensuring the existence and operation of the single website.
(c) Website- The website established
under this section--
(1) may use as the source of its data
the Federal Procurement Data System, Federal Assistance Award
Data System, and Grants.gov, if all of these data sources are
searchable through the website and can be accessed in a search
on the website required by this Act, provided that the user
may--
(A) specify such search shall be
confined to Federal contracts and subcontracts;
(B) specify such search shall be
confined to include grants, subgrants, loans, awards,
cooperative agreements, and other forms of financial
assistance;
(2) shall not be considered in
compliance if it hyperlinks to the Federal Procurement Data
System website, Federal Assistance Award Data System website,
Grants.gov website, or other existing websites, so that the
information elements required by subsection (b)(1) cannot be
searched electronically by field in a single search;
(3) shall provide an opportunity for
the public to provide input about the utility of the site and
recommendations for improvements;
(4) shall be updated not later than 30
days after the award of any Federal award requiring a posting;
and
(5) shall provide for separate
searches for Federal awards described in subsection (a) to
distinguish between the Federal awards described in subsection
(a)(2)(A)(i) and those described in subsection (a)(2)(A)(ii).
(d) Subaward Data-
(1) PILOT PROGRAM-
(A) IN GENERAL- Not later than July
1, 2007, the Director of the Office of Management and Budget
shall commence a pilot program to--
(i) test the collection and
accession of data about subgrants and subcontracts; and
(ii) determine how to implement a
subaward reporting program across the Federal Government,
including--
(I) a reporting system under which
the entity issuing a subgrant or subcontract is
responsible for fulfilling the subaward reporting
requirement; and
(II) a mechanism for collecting
and incorporating agency and public feedback on the design
and utility of the website.
(B) TERMINATION- The pilot program
under subparagraph (A) shall terminate not later than
January 1, 2009.
(2) REPORTING OF SUBAWARDS-
(A) IN GENERAL- Based on the pilot
program conducted under paragraph (1), and, except as
provided in subparagraph (B), not later than January 1,
2009, the Director of the Office of Management and Budget--
(i) shall ensure that data
regarding subawards are disclosed in the same manner as
data regarding other Federal awards, as required by this
Act; and
(ii) shall ensure that the method
for collecting and distributing data about subawards under
clause (i)--
(I) minimizes burdens imposed on
Federal award recipients and subaward recipients;
(II) allows Federal award
recipients and subaward recipients to allocate reasonable
costs for the collection and reporting of subaward data as
indirect costs; and
(III) establishes cost-effective
requirements for collecting subaward data under block
grants, formula grants, and other types of assistance to
State and local governments.
(B) EXTENSION OF DEADLINE- For
subaward recipients that receive Federal funds through
State, local, or tribal governments, the Director of the
Office of Management and Budget may extend the deadline for
ensuring that data regarding such subawards are disclosed in
the same manner as data regarding other Federal awards for a
period not to exceed 18 months, if the Director determines
that compliance would impose an undue burden on the subaward
recipient.
(e) Exception- Any entity that
demonstrates to the Director of the Office of Management and
Budget that the gross income, from all sources, for such entity
did not exceed $300,000 in the previous tax year of such entity
shall be exempt from the requirement to report subawards under
subsection (d), until the Director determines that the
imposition of such reporting requirements will not cause an
undue burden on such entities.
(f) Construction- Nothing in this Act
shall prohibit the Office of Management and Budget from
including through the website established under this section
access to data that is publicly available in any other Federal
database.
(g) Report-
(1) IN GENERAL- The Director of the
Office of Management and Budget shall submit to the Committee
on Homeland Security and Governmental Affairs of the Senate
and the Committee on Government Reform of the House of
Representatives an annual report regarding the implementation
of the website established under this section.
(2) CONTENTS- Each report submitted
under paragraph (1) shall include--
(A) data regarding the usage and
public feedback on the utility of the site (including
recommendations for improving data quality and collection);
(B) an assessment of the reporting
burden placed on Federal award and subaward recipients; and
(C) an explanation of any extension
of the subaward reporting deadline under subsection
(d)(2)(B), if applicable.
(3) PUBLICATION- The Director of the
Office of Management and Budget shall make each report
submitted under paragraph (1) publicly available on the
website established under this section.
Amended by P. L.
110-252,
Government
Funding Transparency Act of 2008,
'Section 6202 (a) above in red and 6202 (b) Regulations
Required- The Director of the Office of Management and Budget
shall promulgate regulations to implement the amendment made
by this chapter. Such regulations shall include a definition
of `total compensation' that is consistent with regulations of
the Securities and Exchange Commission at section 402 of part
229 of title 17 of the Code of Federal Regulations (or any
subsequent regulation).
|
Section 2. Full disclosure of entities
receiving Federal funding
Subsection (a) defines key terms used throughout the bill:
entity, Federal award, and searchable Web site.
`Entity' is defined as any of the following type of for-profit
or non-profit organizations: corporation, association,
partnership, limited liability company (LLC), limited liability
partnership (LLP), sole proprietorship, other legal business
entities and States or localities. The bill does not require the
Web site to provide information about Federal funding received
by individuals, such as a Social Security check or the salary of
a Federal employee. The definition was drafted broadly with the
intention of ensuring that information on financial transactions
with all types of entities is included on the Web site. In
addition, nothing in this bill prevents the Office of Management
and Budget from making available on the Web site additional
publicly-available Federal funding information.
The definition of `Entity' exempts subcontractors and
subgrantees until January 1, 2009. In place of a requirement to
provide subaward information concurrently with other required
information, this bill establishes a pilot program for
collecting and reporting subaward information, as detailed in
subsection (d). The exception for subaward recipient information
is made to address the concern that collecting subaward
information will be more difficult than collecting information
on prime funding recipients, and more time is needed to identify
best practices for collection and reporting of subaward
information. The presence of the delayed timetable in the bill
is not intended to indicate that this information is less
important than information on prime awards, but it does
recognize that additional time might be needed to develop a
system that balances access to information with the burden of
reporting subaward data.
`Federal award' is defined as any expenditure of Federal funds
through: grants, subgrants, contracts, subcontracts, loans,
awards, cooperative agreements, purchase orders, task orders,
delivery orders, or other forms of financial assistance. The
definition does not include individual transactions below
$25,000 and, before October 1, 2008, does not include credit
card transactions. The definition of this term is intentionally
broad so as to capture as much Federal funding as possible. The
inclusion of various types of financial arrangements is not in
any way intended to limit the types of transactions that should
be recorded on the Web site. The purpose of this legislation is
to provide the public with a broad and highly detailed view of
Federal funding, and the definition of what constitutes a
Federal award is to be interpreted equally broadly.
`Searchable Web site' means a Web site that allows the public to
search by any of the elements listed and explained in subsection
(b)(1). This definition is intended to guarantee that the Web
site is not only available to the general public, but that it is
also easily usable. The bill is intended to ensure that the Web
site can be searched using similar techniques as those used on
popular search engine Web sites. The language of this bill does
not preclude the inclusion of an advanced search capability on
the Web site.
Subsection (b) provides general provisions regarding the Web
site and the data to be submitted to the Web site.
Paragraph (1) requires the Office of Management and Budget (OMB)
to ensure that the Web site is operational and available to the
general public no later than January 1, 2008. This provision
does not preclude OMB from making the Web site available prior
to January 2008. It also requires that the Web site comply with
Section 204 of the E-Government Act of 2002, which states that
the Director of OMB `shall work with the Administrator of the
General Services Administration and other agencies to maintain
and promote an integrated Internet-based system of providing the
public with access to Government information and services.'
This paragraph also requires that there be no cost to the public
to access the Web site.
Finally, this paragraph requires that the Web site include
certain data regarding each `Federal award' including: (1) the
name of the entity receiving the award; (2) the dollar amount of
the award; (3) information on the award including--transaction
type, funding agency (as well as the program within the agency),
the North American Industry Classification System code (used to
identify market sector) or Catalog of Federal Domestic
Assistance number, and purpose of the funding; (4) location of
the entity receiving the award as well as the primary location
of performance under the award, including city, State,
congressional district, and country; (5) a unique identifier of
the entity receiving the award and of the parent entity of the
recipient, when applicable; and (6) other information that OMB
deems relevant.
Paragraph (2) specifies that the Web site shall include data for
fiscal year 2007 and each fiscal year thereafter.
Paragraphs (3) and (4) authorize OMB to delegate the work of
developing and maintaining the Web site to one or more Federal
agencies.
Subsection (c) of the bill addresses several provisions related
to the operation of the Web site.
Paragraph (1) specifies that OMB may use existing Federal
databases, such as the Federal Procurement Data System, Federal
Assistance Award Data System, and Grants.gov, as sources of data
for the searchable Web site. Paragraph (2), however, specifies
that the Web site will not be in compliance with the
requirements of the bill if it simply hyperlinks to other
Federal databases. The objective in establishing the Web site is
to prevent the need for citizens to search multiple sites and
learn the operations of multiple databases to know where their
tax dollars are being spent. Citizens should be able to access
information on all Federal awards through a single Web site,
regardless of how many separate systems feed into it.
Paragraph (3) requires that the Web site provide an opportunity
for public feedback on the utility of the site and
recommendations for improvements. This should provide an
opportunity for feedback from entities receiving Federal funds
and thus required to provide information, as well as anyone from
the general public who uses the Web site for private research.
Opportunities to provide feedback should be continuous, and
improvements to the Web site should be on-going.
Paragraph (4) requires that all funding information required in
the bill be posted to the Web site no later than thirty (30)
days after the transaction has occurred. This means thirty
calendar days and not thirty business days.
The Committee believes that the Web site should be easy for the
public to locate and access, either through its own domain name
or through prominence on a central Federal Web site, such as
Firstgov.gov.
Subsection (d) requires the Director of OMB to establish a pilot
program to address the issue of collecting subaward data. The
Committee expects the Director of the Office of Management and
Budget to incorporate the lessons learned and public feedback
from the pilot program as it implements the subaward reporting
requirements of this bill.
The Director is required to establish the pilot program no later
than July 1, 2007, to determine the most efficient and least
burdensome means of collecting subaward data. The pilot project
will last for two years, after which all subaward data will
begin to be collected and integrated into the Web site. The
Director of OMB may extend the subaward reporting requirement
for subawardees that receive funding through State, local, and
tribal governments for up to 18 months, to prevent imposing an
undue burden on subaward recipients.
Subsection (e) allows that any entity with a gross income of
less than $300,000 in the previous tax year will be exempt from
the subaward reporting requirements until the Director of OMB
determines that the reporting requirements do not cause an undue
burden on these entities.
Subsection (f) specifies that nothing in the Act shall prohibit
OMB from including on the Web site information that is publicly
available from any other Federal database.
Subsection (g) requires the Director of OMB to report to
appropriate congressional committees regarding usage and public
feedback on the Web site, the reporting burden placed on prime
and subaward recipients, and the Director's use of the extension
allowed in subsection (d). |
