Stop the Outlay of Payments Act

I 117TH CONGRESS 1ST SESSION H. R. 4056 To require agencies to notify the Director of the Office of Management and Budget when the agency suspends or terminates a Federal award, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 22, 2021 Mrs. LESKO introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To require agencies to notify the Director of the Office of Management and Budget when the agency suspends or terminates a Federal award, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stop the Outlay of 4 Payments Act’’. 5 SEC. 2. FEDERAL GRANTS. 6 (a) DEFINITIONS.—In this section: 7 (1) AGENCY.—The term ‘‘agency’’ means— 8 VerDate Sep 11 2014 23:05 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4056.IH H4056 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 4056 IH (A) an Executive agency, as defined in sec- 1 tion 105 of title 5, United States Code; and 2 (B) an independent regulatory agency, as 3 defined in section 3502 of title 44, United 4 States Code. 5 (2) DIRECTOR.—The term ‘‘Director’’ means 6 the Director of the Office of Management and Budg- 7 et. 8 (3) FEDERAL AWARD.—The term ‘‘Federal 9 award’’ means a grant, subgrant, contract, sub- 10 contract, loan, award, or cooperative agreement 11 awarded by an agency. 12 (4) SUSPENDED ENTITY.—The term ‘‘sus- 13 pended entity’’ means a recipient of a Federal 14 award, any portion of which the head of an agency 15 suspends or terminates for a reason described in 16 subsection (b)(2). 17 (b) NOTIFICATION.— 18 (1) IN GENERAL.—Not later than 120 days 19 after the date on which an agency suspends or ter- 20 minates any portion of a Federal award to the re- 21 cipient of the Federal award for a reason described 22 in paragraph (2), the head of an agency shall notify 23 the Director of the suspension or termination. 24 VerDate Sep 11 2014 23:05 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4056.IH H4056 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 4056 IH (2) REASON FOR SUSPENSION OR TERMI- 1 NATION.—A reason for a suspension or termination 2 of a Federal award described in this paragraph is a 3 failure of the recipient of the Federal award to com- 4 ply with— 5 (A) the terms and conditions of the Fed- 6 eral award; 7 (B) a Federal law or regulation; or 8 (C) a request by the agency awarding the 9 Federal award for information or materials re- 10 lating to the Federal award. 11 (3) LIST OF SUSPENSIONS.—The Director shall 12 maintain an up-to-date list of suspended entities on 13 the website of the Office of Management and Budg- 14 et. 15 (c) EFFECT ON OTHER GRANTS.— 16 (1) IN GENERAL.—Subject to paragraph (2), 17 the head of an agency may not award a Federal 18 award or disburse funds under a Federal award to 19 a suspended entity until the date on which the sus- 20 pended entity remedies the reason for a suspension 21 or termination of a Federal award of the suspended 22 entity under subsection (b)(2). 23 VerDate Sep 11 2014 23:05 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4056.IH H4056 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 4056 IH (2) EXCEPTIONS.—The head of an agency may 1 award a Federal award and disburse funds under a 2 Federal award to a suspended entity if— 3 (A) the suspended entity has been classi- 4 fied as a suspended entity as a result of a cler- 5 ical error; or 6 (B) the suspended entity has an agreement 7 with the agency that suspends or terminates the 8 Federal award of the suspended entity to re- 9 solve the reason for the suspension or termi- 10 nation described in subsection (b)(2). 11 (3) COMPLIANCE.—For the purpose of com- 12 plying with paragraph (1), the head of an agency 13 shall reference the list of suspended entities main- 14 tained by the Director under subsection (b)(3). 15 Æ VerDate Sep 11 2014 23:05 Jul 09, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H4056.IH H4056 kjohnson on DSK79L0C42PROD with BILLS