[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2464 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2464

  To repeal the exemption from disclosure requirements for municipal 
  securities and to promote full and adequate disclosure of political 
 contributions related to the underwriting of municipal securities by 
                      banks and securities firms.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 1993

Mr. Leach (for himself and Mr. Gonzalez) introduced the following bill; 
which was referred jointly to the Committees on Energy and Commerce and 
                   Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To repeal the exemption from disclosure requirements for municipal 
  securities and to promote full and adequate disclosure of political 
 contributions related to the underwriting of municipal securities by 
                      banks and securities firms.

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

SECTION 1. SHORT TITLE.

    This Act shall be cited as the ``Municipal Securities Reform Act of 
1993''.

SEC 2. GENERAL DISCLOSURE REQUIREMENTS FOR MUNICIPAL SECURITIES.

    Subsection 15B(d) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o4(d)) is amended to read as follows:
    ``(d)(1) In General.--Notwithstanding any other provision of this 
Act and in addition to any other disclosure requirements, the 
Commission shall, by rule or regulation, require any person acting as 
underwriter, bond counsel, broker or dealer for a new issuance of 
municipal securities, or any affiliate of such person to file with the 
Commission, prior to the sale of such securities, a disclosure of 
political contributions as described in paragraph (2).
    ``(2) Disclosure of Political Contributions.--For the purposes of 
compliance with paragraph (1), the disclosure of political 
contributions by a person subject to such paragraph shall include the 
itemization of any political contributions, expenditures, payments or 
the provision of other items or services of value that, either directly 
or indirectly, are extended by such person, to or for the benefit of 
the issuer, any elected official of the issuer, any employee of the 
issuer, any affiliate of such persons, or the political party of any 
elected official of the issuer.
    ``(3) Exception.--This subsection shall not apply to any 
underwriter, broker or dealer of municipal securities subject to 
section 44 of the Federal Deposit Insurance Act.''.

SEC 3. DISCLOSURE OF POLITICAL CONTRIBUTIONS RELATED TO BANK MUNICIPAL 
              SECURITIES ACTIVITIES.

    (a) The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq. is 
amended by adding at the end the following new section:

``SEC 44. POLITICAL CONTRIBUTIONS RELATED TO MUNICIPAL SECURITIES 
              ACTIVITIES.

    ``(a)(1) In General.--Notwithstanding any other provision of law 
and in addition to any other disclosure requirements, the appropriate 
Federal banking agencies shall, by rule or regulation, require any 
insured depository institution or affiliate acting as underwriter, 
broker or dealer for a new issuance of municipal securities, or any 
affiliate of such person, to file with the appropriate Federal banking 
agency, prior to the sale of the securities, a disclosure of political 
contributions as described in paragraph (2).
    ``(2) Disclosure of Political Contributions.--For the purposes of 
compliance with paragraph (1), the disclosure of political 
contributions by a person subject to such paragraph shall include the 
itemization of any political contributions, expenditures, payments or 
the provision of other items or services of value that, either directly 
or indirectly, are extended by such persons, to or for the benefit of 
the issuer, any elected official of the issuer, any employee of the 
issuer, any affiliate of such persons, or the political party of any 
elected official of the issuer.
    ``(b) Regulations.--In carrying out their responsibilities under 
this section, the appropriate Federal banking agencies shall issue 
substantially similar regulations to regulations and rules issued by 
the Securities Exchange Commission, unless such agencies find that 
implementation of substantially similar regulations with respect to 
insured depository institutions are not necessary or appropriate in the 
public interest or for the protection of investors, and publish such 
findings, and the detailed reasons therefor, in the Federal 
Register.''.

SEC 5. EFFECTIVE DATE.

    The amendments made by this Act and any rules or regulations 
required thereunder, shall become effective not later than one hundred 
and eighty days after the date of enactment.

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