[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5048 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5048

     To prohibit corporations from making loans to their officers, 
                 directors, and principal shareholders.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2002

 Mr. George Miller of California (for himself, Mr. Shows, Mr. Andrews, 
    Mr. Doggett, Ms. Lee, Mrs. Mink of Hawaii, Mrs. Napolitano, Ms. 
   Woolsey, Mr. Conyers, Mr. Tierney, Mr. Delahunt, Mr. Capuano, Mr. 
Meehan, Ms. Waters, Mr. Taylor of Mississippi, Mr. Kleczka, Mr. Stark, 
Ms. Schakowsky, Ms. Jackson-Lee of Texas, Ms. DeLauro, Ms. Sanchez, Mr. 
 Nadler, Ms. Solis, Mr. Abercrombie, and Ms. Slaughter) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
     To prohibit corporations from making loans to their officers, 
                 directors, and principal shareholders.

    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 may be cited as the ``Corporate Executive Responsibility 
Act of 2002''.

SEC. 2. GOVERNANCE PRACTICES TO PROHIBIT INSIDER LOANS.

    (a) Rulemaking Required.--
            (1) Prohibited loans.--Every national securities exchange 
        and national securities association shall adopt rules, 
        effective no later than 6 months after the date of enactment of 
        this Act, to require that the qualitative listing standards 
        concerning corporate governance of the exchange or association 
        prohibit loans or other extensions of credit that in the 
        aggregate exceed $50,000 to any corporate insider.
            (2) Definition of corporate insider.--For purposes of 
        paragraph (1), the term ``corporate insider'' with respect to 
        any issuer means any person who is a beneficial owner, officer, 
        or director who is required to file a statement under section 
        16 of the Securities Exchange Act of 1934 (15 U.S.C. 78p) with 
        respect to ownership of the equity securities of such issuer.
            (3) Other definitions.--For purposes of paragraph (1), the 
        terms ``national securities exchange'' and ``national 
        securities association'' have the same meanings provided in 
        section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c).
    (b) Procedure.--The rules required by subsection (a) of this 
section shall be adopted by any national securities exchange or 
national securities association pursuant to section 19(b) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78s(b)). If the rules 
required by this section have not been adopted by any national 
securities exchange and national securities association and made 
effective by 9 months after the date of enactment of this Act, the 
Securities and Exchange Commission shall initiate proceedings to add 
the rules required by this section to the rules of such national 
securities exchange and national securities association.
    (c) No Adverse Inference.--Nothing in this section shall be 
construed to alter, impair, limit, or abrogate the Securities and 
Exchange Commission's power under section 19(c) of the Securities 
Exchange Act of 1934 to abrogate, add to, and delete from the rules of 
a self-regulatory organization (other than a registered clearing 
agency) as the Securities and Exchange Commission deems necessary or 
appropriate.
                                 <all>