United States:
COVID-19: Weekly Oversight And Enforcement Report—Week Of May 6, 2021
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A. Congress |
- The Congressional Oversight Commission released its
12th report on April 30. The report focuses on a
$700 million loan to trucking company Yellow Corporation (formerly
known as YRC Worldwide) under the CARES Act loan program "for
businesses critical to maintaining national security."
According to the report, the Commission had "concerns
regarding the Treasury's process for certifying Yellow as
'critical to maintaining national security' and questioned
whether Yellow's precarious financial position at the time of
the loan exposed taxpayers to a significant risk of loss."
After conducting an in-depth review, which is summarized in the
report, "the Commission continues to believe that Treasury and
DOD made missteps in deeming Yellow as critical to national
security and executing the loan."
- On April 28, Representatives Robert C. Scott (D-VA), Joe
Courtney (D-CT), and Alma Adams (DNC) introduced the Protecting America's
Workers Act. The bill would "strengthen and modernize"
OSHA by: increasing penalties for OSHA violations, expanding OSHA
coverage to more workers, requiring employers to take timely action
to correct workplace hazards, enhancing whistleblower protections,
and expanding illness and injury record-keeping requirements for
employers. In introducing the bill, the members said "new
challenges and crises like the COVID-19 pandemic have permanently
changed the workplace, making an update all the more
necessary."
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B. Executive Agencies |
- A Massachusetts man was criminally charged on Tuesday for filing a fraudulent PPP
loan application on behalf of his restaurant, Rasta Pasta Pizzeria.
The application allegedly contained false employee and payroll
information, as well as a falsified official tax form. After
receiving a loan of over $660,000, the man sold the restaurant and
used the funds to purchase an alpaca farm in Vermont, two vehicles,
and weekly airtime for a cryptocurrency-themed radio show.
- OSHA has demonstrated a new focus on the restaurant
industry by including both full-service and limited-service
restaurants on OSHA's target list of COVID-related inspections.
This means OSHA can show up unannounced and declare it will be
conducting a COVID-19 inspection of a restaurant if that
establishment is on the target list generated by the agency.
- On April 29, UPS urged a California federal judge to toss a
former employee's proposed class action accusing it of
systematically endangering workers' health and safety by
leaving them vulnerable to exposure to COVID-19, arguing that the
ex-employee's claims belong before Cal/OSHA, not a judge. But
Judge Alsup expressed concern that referring the case to Cal/OSHA
might mean that the employee wouldn't be able to recover
damages for the emotional distress she allegedly suffered as a
result of UPS's purportedly lax safety protections.
"You're saying, 'Go see OSHA,' but OSHA's not
in a position to give money out," Judge Alsup said.
- On May 4, Oregon OSHA issued an updated COVID-19 worker protection
standard, replacing a temporary measure the state adopted six
months ago.
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C. State Attorneys General |
- Louisiana AG Jeff Landry, Mississippi AG Lynn Fitch, and Texas
AG Ken Paxton sued the Treasury Department, alleging that
the American Rescue Plan violates the Constitution's Spending
Clause and Tenth Amendment by prohibiting states from using federal
pandemic recovery funds to cut taxes. In addition to a finding that
this requirement is unconstitutional, the states seek an injunction
preventing the Treasury Secretary from exercising her power under
the Act to recoup any federal funds that a state uses to directly
or indirectly offset revenue loss from a tax reduction.
- Massachusetts AG Maura Healey sent a letter to major pharmacy chains and other
retailers regarding their data collection and use practices related
to consumers who sign up to receive COVID-19 vaccines they
administer. The letter asks the companies for information about a
variety of issues, including whether consumers are required to
create accounts in order to schedule a vaccine appointment and
whether consumers can opt out of data collection.
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D. Special Inspector General for
Pandemic Recovery (SIGPR) |
- On April 29, the Department of Justice's Office of Legal
Counsel released a legal opinion stripping SIGPR of its PPP
oversight authority.
- On April 30, SIGPR released its quarterly report, responding to the prior
day's legal opinion. The report notes that, a year after the
creation of the position, "SIGPR's jurisdiction has come
to be viewed narrowly, not expansively, and [Brian Miller's]
only conclusion is that 'things are not working well.' One
of SIGPR's core values is fidelity to law, and SIGPR will
faithfully execute its mission as it is now defined by OLC. The
result, however, is reduced oversight over the Payroll Support
Program and the Coronavirus Relief Fund, which continue in expanded
form under new legislation." Miller calls on Congress to
decide whether to intervene to provide SIGPR more robust oversight
power. Despite these turf battles, the report cites "35 new
investigative leads for referral to law enforcement partners
relating to suspected fraud under various CARES Act
programs."
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E. Pandemic Recovery Accountability
Committee (PRAC) |
- On April 29, PRAC released its second Semiannual Report to Congress, covering
the period between October 1, 2020, and March 31, 2021. The report
recaps PRAC's goals, accomplishments, ongoing projects, and
insights from reports. PRAC's highlights during that period
include publishing reports on gaps in pandemic spending and top
pandemic challenges for federal agencies, and a testing report for
six federal health care programs.
- In response to the OLC opinion stripping SIGPR of its PPP
oversight authority (see SIGPR update), PRAC Chair Michael Horowitz
on May 1 issued a statement stating that the OLC opinion does
not affect or limit the Treasury OIG's continuing oversight of
Treasury programs or affect or limit PRAC's authority to
conduct oversight of pandemic-related spending. Horowitz's
statement also noted that member IGs of the committee have
published almost 200 oversight reports on the pandemic, and their
investigations have led to criminal charges being filed in over 300
pandemicrelated cases with over 84 convictions.
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