HEN16745 S.L.C. 114TH CONGRESS 2D SESSION S. ll To improve transparency regarding the activities of the American Red Cross. IN THE SENATE OF THE UNITED STATES Mr. GRASSLEY llllllllll introduced the following bill; which was read twice and referred to the Committee on llllllllll A BILL To improve transparency regarding the activities of the American Red Cross. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 4 SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘American Red Cross 5 Transparency Act of 2016’’. 6 7 8 SEC. 2. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT. Section 300111 of title 36, United States Code, is 9 amended to read as follows: HEN16745 S.L.C. 2 1 ‘‘§ 300111. Authority of the Comptroller General of 2 3 the United States ‘‘(a) AUDIT AUTHORITY.—The Comptroller General 4 of the United States is authorized to review— 5 6 ‘‘(1) the internal governance of the corporation; and 7 ‘‘(2) any program or activity connected to na- 8 tional preparedness, including any program or activ- 9 ity carried out by the corporation in connection with 10 events for which the Federal Government provides 11 leadership or support under the national prepared- 12 ness system established under section 644 of the De- 13 partment of Homeland Security Appropriations Act, 14 2007 (6 U.S.C. 744), or any successor system. 15 ‘‘(b) ACCESS AUTHORITY.— 16 ‘‘(1) IN GENERAL.—For purposes of carrying 17 out this section, the Comptroller General of the 18 United States shall have access to and the right to 19 examine and copy all records and other recorded in- 20 formation, electronic or otherwise, within the posses- 21 sion or control of the corporation that the Comp- 22 troller General determines relevant to a review au- 23 thorized under subsection (a), including such records 24 and other recorded information relating to the finan- 25 cial transactions and internal governance of the cor- 26 poration. HEN16745 S.L.C. 3 1 ‘‘(2) INDIVIDUALS.—The Comptroller General 2 shall be provided access to, and be permitted to 3 interview, any member of the board of governors, 4 employee, volunteer, or agent of the corporation 5 whom the Comptroller General believes to have 6 knowledge relevant to a review authorized under 7 subsection (a). 8 ‘‘(c) ENFORCEMENT.— 9 10 ‘‘(1) SUBPOENA ‘‘(A) IN AUTHORITY.— GENERAL.—If the corporation 11 does not make available a record, other re- 12 corded information, or a member of the board 13 of governors, employee, volunteer, or agent of 14 the corporation upon a request under sub- 15 section (b), the Comptroller General of the 16 United States may issue a subpoena for the 17 record or other recorded information or to ob- 18 tain the testimony of the member of the board 19 of governors, employee, volunteer, or agent. 20 21 ‘‘(B) ISSUANCE.—A subpoena issued under this paragraph— 22 ‘‘(i) shall identify the record, other re- 23 corded information, or member of the 24 board of governors, employee, volunteer, or 25 agent of the corporation sought; and HEN16745 S.L.C. 4 1 ‘‘(ii) may be issued by the Comptroller 2 General. 3 ‘‘(C) SERVICE.—The Comptroller General 4 shall have an individual serve a subpoena issued 5 under this paragraph by delivering a copy to 6 the chief executive officer of the corporation or 7 by mailing a copy of the subpoena by certified 8 or registered mail, return receipt requested, to 9 the principal place of business of the corpora- 10 tion. Proof of service is shown by a verified re- 11 turn by the individual serving the subpoena 12 that states how the subpoena was served or by 13 the return receipt signed by the person served. 14 ‘‘(2) ACTION.—If the corporation does not com- 15 ply with a subpoena issued under paragraph (1), the 16 Comptroller General of the United States, acting 17 through an attorney the Comptroller General des- 18 ignates in writing, may bring a civil action in the 19 United States District Court for the District of Co- 20 lumbia to require the corporation to produce the 21 record, other recorded information, or member of the 22 board of governors, employee, volunteer, or agent 23 that is the subject of the subpoena. The court shall 24 have jurisdiction of such action and may punish a HEN16745 S.L.C. 5 1 failure to obey an order of the court under this sub- 2 section as a contempt of court.’’. 3 SEC. 3. INVESTIGATIONS, COMPLIANCE, AND ETHICS UNIT. 4 (a) IN GENERAL.—Chapter 3001 of title 36, United 5 States Code, is amended— 6 7 (1) by redesignating section 300113 as section 300114; and 8 9 (2) by inserting after section 300112 the following: 10 ‘‘§ 300113. Reporting and other authorities of the Of11 fice of Investigations, Compliance, and 12 Ethics 13 ‘‘(a) IN GENERAL.—There shall be in the corporation 14 an Office of Investigations, Compliance, and Ethics, 15 which— 16 ‘‘(1) shall be a subcommittee of the Audit and 17 Risk Management Committee of the corporation; 18 and 19 ‘‘(2) shall report directly to the board of gov- 20 ernors and the Audit and Risk Management Com- 21 mittee. 22 ‘‘(b) MEMBERSHIP.—An individual who is not a 23 member of the board of governors of the corporation may 24 be a member of the Office of Investigations, Compliance, 25 and Ethics. HEN16745 S.L.C. 6 1 ‘‘(c) EMPLOYEES.—The Audit and Risk Management 2 Committee of the corporation shall determine, in consulta3 tion with the Chief Executive Officer and the President 4 of the corporation, the number of employees that shall be 5 employed by the Office of Investigations, Compliance, and 6 Ethics. 7 ‘‘(d) EFFECT OF TERMINATION OF AUDIT AND RISK 8 MANAGEMENT COMMITTEE.—If the Audit and Risk Man9 agement Committee of the corporation ceases to exist— 10 ‘‘(1) the Office of Investigations, Compliance, 11 and Ethics shall become a standing committee of the 12 board of governors; and 13 ‘‘(2) the board of governors, in consultation 14 with the Chief Executive Officer and President of 15 the corporation, shall determine the number of em- 16 ployees to be employed by the Office of Investiga- 17 tions, Compliance, and Ethics. 18 ‘‘(e) INVESTIGATIONS.— 19 ‘‘(1) IN GENERAL.—The Office of Investiga- 20 tions, Compliance, and Ethics shall conduct formal 21 investigations relating to fraud, waste, abuse, cor- 22 poration policy violations, illegal or unethical con- 23 duct, or other wrongdoing relating to the corpora- 24 tion. HEN16745 S.L.C. 7 1 2 ‘‘(2) ACCESS.—During the course of an investigation under paragraph (1), the Office shall— 3 ‘‘(A) have access to and the right to inter- 4 view any employee, volunteer, or agent of the 5 corporation; and 6 ‘‘(B) have access to records and be per- 7 mitted to copy all records and other recorded 8 information, electronic or otherwise, within the 9 possession or control of the corporation, includ- 10 ing such records and other recorded informa- 11 tion relating to the financial transactions and 12 internal governance of the corporation, that the 13 Office of Investigations, Compliance, and Ethics 14 determines relevant to the investigation. 15 16 17 ‘‘(f) REPORTING.— ‘‘(1) DEFINITION.—In this subsection, the term ‘appropriate congressional committees’ means— 18 ‘‘(A) the Committee on Finance, the Com- 19 mittee on Foreign Relations, the Committee on 20 Health, Education, Labor, and Pensions, the 21 Committee on Homeland Security and Govern- 22 mental Affairs, and the Committee on the Judi- 23 ciary of the Senate; and 24 ‘‘(B) the Committee on Energy and Com- 25 merce, the Committee on Foreign Affairs, the HEN16745 S.L.C. 8 1 Committee on Homeland Security, the Com- 2 mittee on the Judiciary, and the Committee on 3 Ways and Means of the House of Representa- 4 tives. 5 ‘‘(2) REPORTS.—The Office of Investigations, 6 Compliance, and Ethics shall annually submit to the 7 appropriate Congressional committees, the board of 8 governors, the Audit and Risk Management Com- 9 mittee, the Chief Executive Officer of the corpora- 10 tion, the President, the Comptroller General, and to 11 any Member of Congress (upon request)— 12 ‘‘(A) a report— 13 ‘‘(i) discussing any trends and sys- 14 temic matters that the Office of Investiga- 15 tions, Compliance, and Ethics has identi- 16 fied confronting the corporation; and 17 ‘‘(ii) providing the number of pending 18 investigations by the Office of Investiga- 19 tions, Compliance, and Ethics and the gen- 20 eral substance of the investigations. 21 ‘‘(B) the final report regarding each inves- 22 tigation completed by the Office of Investiga- 23 tions, Compliance, and Ethics during the year 24 covered by the report under subparagraph 25 (A).’’. HEN16745 S.L.C. 9 1 (b) TECHNICAL AND CONFORMING AMENDMENT.— 2 The table of sections for chapter 3001 of title 36, United 3 States Code, is amended by striking the item relating to 4 section 300113 and inserting the following: ‘‘300113. Reporting and other authorities of the Office of Investigations, Compliance, and Ethics. ‘‘300114. Reservation of right to amend or repeal.’’.