S 1242 ISCommentsClose CommentsPermalink

To prohibit the Federal Government from holding ownership interests, and for other purposes.CommentsClose CommentsPermalink

June 11, 2009CommentsClose CommentsPermalink

Mr. THUNE (for himself, Mr. COBURN, Mr. INHOFE, Mr. VITTER, Mr. JOHANNS, Mr. CORNYN, Mr. KYL, Mr. MCCONNELL, Mr. BARRASSO, and Mr. ENSIGN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

To prohibit the Federal Government from holding ownership interests, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Government Ownership Exit Plan Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. DEFINITION.

In this Act--CommentsClose CommentsPermalink





(1) the term ‘ownership interest’ means an interest in a troubled asset described in section 3(9)(B) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202(a)(1)), as in effect on the day before the date of enactment of this Act, that was purchased by the Secretary under section 101(a)(1) of such Act (12 U.S.C. 5211(a)(1)); andCommentsClose CommentsPermalink





(2) the term ‘Secretary’ means the Secretary of the Treasury.CommentsClose CommentsPermalink

SEC. 3. RE-PRIVATIZATION OF PRIVATE ENTITIES.

(a) Prohibition on Federal Government Holding Ownership Interests-CommentsClose CommentsPermalink





(1) IN GENERAL- Beginning on the date of enactment of this Act, the Federal Government may not acquire, directly or indirectly, any ownership interest.CommentsClose CommentsPermalink





(2) DIVESTITURE- Except as provided in subsection (b), the Secretary shall divest the Federal Government of any ownership interest not later than July 1, 2010.CommentsClose CommentsPermalink





(b) Limited Authority-CommentsClose CommentsPermalink





(1) IN GENERAL- Beginning on July 1, 2010, the Secretary may hold an ownership interest with respect to a particular entity for a period of not more than 6 months if, not later than July 1, 2010, the Secretary submits a report to Congress with respect to that entity stating that--CommentsClose CommentsPermalink





(A) compliance with subsection (a)(2) with respect to such entity would have a significant adverse impact on the taxpayers of the United States; andCommentsClose CommentsPermalink





(B) there is a reasonable expectation that a waiver of subsection (a)(2) would allow the Secretary to recover the cost to the Federal Government of acquiring such ownership interest.CommentsClose CommentsPermalink





(2) SINGLE RENEWAL- The Secretary may renew an extension under paragraph (1) for a single period of not more than 6 months, if the Secretary submits to Congress a report stating that the conditions described in subparagraphs (A) and (B) of paragraph (1) still exist with respect to the subject ownership interest.CommentsClose CommentsPermalink





(c) Conforming Amendment- Section 3(9) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202(9)) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (A), by striking ‘; and’ at the end and inserting a period;CommentsClose CommentsPermalink





(2) by striking ‘means--’ and all that follows through ‘residential’ in subparagraph (A) and inserting ‘means residential’; andCommentsClose CommentsPermalink





(3) by striking subparagraph (B).CommentsClose CommentsPermalink





(d) Deposit of Funds-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 115(a)(3) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended by striking ‘outstanding at any one time’.CommentsClose CommentsPermalink





(2) DEPOSIT OF FUNDS INTO TREASURY-CommentsClose CommentsPermalink





(A) IN GENERAL- On and after the date of enactment of this Act, all repayments of obligations arising under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), and all proceeds from the sale of assets acquired by the Federal Government under that Act, shall be paid into the general fund of the Treasury for reduction of the public debt, in accordance with section 106(d) of that Act (12 U.S.C. 5216(d)), as amended by this subsection.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENT- Section 106(d) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216(d)) is amended by inserting ‘, and repayments of obligations arising under this Act,’ after ‘section 113’.CommentsClose CommentsPermalink





(e) Influence of Management Decisions- Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding at the end the following:CommentsClose CommentsPermalink

‘SEC. 137. INFLUENCE OF MANAGEMENT DECISIONS.

‘(a) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) the term ‘covered person’ means any person who is an officer or employee (including a special Government employee (as defined in section 202(a) of title 18, United States Code)) of the executive branch of the United States (including any independent agency of the United States); andCommentsClose CommentsPermalink





‘(2) the term ‘significant management decision’ includes the appointment of senior executives or board members, business strategies relating to production and manufacturing, plant closings, the relocation of the headquarters of an entity, the modification of labor contracts, and other financial decisions.CommentsClose CommentsPermalink





‘(b) Influence Prohibited-CommentsClose CommentsPermalink





‘(1) IN GENERAL- It shall be unlawful for any covered person to knowingly make, with the intent to influence, a communication regarding a significant management decision of a recipient of assistance under this title to any officer or employee of the recipient.CommentsClose CommentsPermalink





‘(2) CRIMINAL PENALTY- Any covered person who violates paragraph (1) shall be fined under title 18, United States Code, imprisoned for not more than 1 year, or both.CommentsClose CommentsPermalink





‘(c) Civil Actions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Attorney General of the United States may bring a civil action in an appropriate United States district court against any covered person to enforce subsection (b).CommentsClose CommentsPermalink





‘(2) CIVIL PENALTY- Any covered person who, upon proof by a preponderance of the evidence, violates subsection (b) shall be subject to a civil penalty of not more than $50,000 for each violation. The imposition of a civil penalty under this paragraph shall not preclude any other criminal or civil statutory, common law, or administrative remedy, which is available by law to the United States or any other person.CommentsClose CommentsPermalink





‘(3) ORDERS- If the Attorney General of the United States has reason to believe that a covered person is engaging in conduct that violates subsection (b), the Attorney General may petition an appropriate United States district court for an order prohibiting the covered person from engaging in the conduct. The court may issue an order prohibiting the covered person from engaging in the conduct if the court finds that the conduct constitutes a violation of subsection (b). The filing of a petition under this paragraph shall not preclude any other remedy which is available by law to the United States or any other person.’.CommentsClose CommentsPermalink





(f) Federal Deposit Insurance Corporation- Nothing in this Act may be construed to impede the ability of the Federal Deposit Insurance Corporation to maintain the stability of the banking system.CommentsClose CommentsPermalink

SEC. 4. OVERSIGHT BY FINANCIAL STABILITY OVERSIGHT BOARD.

Section 104(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5214(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in paragraph (3), by striking the semicolon at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(4) reviewing the implementation of section 3 of the Government Ownership Exit Plan Act of 2009.’.CommentsClose CommentsPermalink

SEC. 5. REPORTS REQUIRED.

(a) Report on Federal Government Ownership-CommentsClose CommentsPermalink





(1) REPORTS REQUIRED- The Secretary shall make (and shall publicly disclose) periodic reports detailing any ownership interest held by the Federal Government, including any loan or loan guarantee made by the Board of Governors of the Federal Reserve System.CommentsClose CommentsPermalink





(2) TIMING OF REPORTS- The Secretary shall submit the reports under paragraph (1)--CommentsClose CommentsPermalink





(A) not later than October 1, 2009; andCommentsClose CommentsPermalink





(B) each quarter of the fiscal year thereafter.CommentsClose CommentsPermalink





(b) Reports on Winding Down or Divestment-CommentsClose CommentsPermalink





(1) REPORTS REQUIRED- The Secretary shall submit to Congress periodic reports on the plans of the Secretary for compliance with this Act, including any plans to wind down or divest an ownership interest.CommentsClose CommentsPermalink





(2) TIMING OF REPORTS- The Secretary shall submit the reports under paragraph (1)--CommentsClose CommentsPermalink





(A) not later than April 1, 2010; andCommentsClose CommentsPermalink





(B) each month thereafter until all ownership interests are divested under section 3(a)(2).CommentsClose CommentsPermalink

SEC. 6. PLAN FOR GOVERNMENT SPONSORED ENTERPRISES.

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to Congress a report describing a plan of the Secretary--CommentsClose CommentsPermalink





(1) to end the conservatorship by the Federal Government of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; andCommentsClose CommentsPermalink





(2) to eliminate any form of direct ownership by the Federal Government of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.CommentsClose CommentsPermalink