[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2778 Introduced in House (IH)]

  1st Session
                                H. R. 2778

To abolish the Board of Governors of the Federal Reserve System and the 
Federal reserve banks, to repeal the Federal Reserve Act, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2003

   Mr. Paul introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To abolish the Board of Governors of the Federal Reserve System and the 
Federal reserve banks, to repeal the Federal Reserve Act, and for other 
                               purposes.

    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 ``Federal Reserve Board Abolition 
Act''.

SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.

    (a) In General.--Effective at the end of the 1-year period 
beginning on the date of the enactment of this Act, the Board of 
Governors of the Federal Reserve System and each Federal reserve bank 
are hereby abolished.
    (b) Repeal of Federal Reserve Act.--Effective at the end of the 1-
year period beginning on the date of the enactment of this Act, the 
Federal Reserve Act is hereby repealed.
    (c) Disposition of Affairs.--
            (1) Management during dissolution period.--During the 1-
        year period referred to in subsection (a), the Chairman of the 
        Board of Governors of the Federal Reserve System--
                    (A) shall, for the sole purpose of winding up the 
                affairs of the Board of Governors of the Federal 
                Reserve System and the Federal reserve banks--
                            (i) manage the employees of the Board and 
                        each such bank and provide for the payment of 
                        compensation and benefits of any such employee 
                        which accrue before the position of such 
                        employee is abolished; and
                            (ii) manage the assets and liabilities of 
                        the Board and each such bank until such assets 
                        and liabilities are liquidated or assumed by 
                        the Secretary of the Treasury in accordance 
                        with this subsection; and
                    (B) may take such other action as may be necessary, 
                subject to the approval of the Secretary of the 
                Treasury, to wind up the affairs of the Board and the 
                Federal reserve banks.
            (2) Liquidation of assets.--
                    (A) In general.--The Director of the Office of 
                Management and Budget shall liquidate all assets of the 
                Board and the Federal reserve banks in an orderly 
                manner so as to achieve as expeditious a liquidation as 
                may be practical while maximizing the return to the 
                Treasury.
                    (B) Transfer to treasury.--After satisfying all 
                claims against the Board and any Federal reserve bank 
                which are accepted by the Director of the Office of 
                Management and Budget and redeeming the stock of such 
                banks, the net proceeds of the liquidation under 
                subparagraph (A) shall be transferred to the Secretary 
                of the Treasury and deposited in the General Fund of 
                the Treasury.
            (3) Assumption of liabilities.--All outstanding liabilities 
        of the Board of Governors of the Federal Reserve System and the 
        Federal reserve banks at the time such entities are abolished, 
        including any liability for retirement and other benefits for 
        former officers and employees of the Board or any such bank in 
        accordance with employee retirement and benefit programs of the 
        Board and any such bank, shall become the liability of the 
        Secretary of the Treasury and shall be paid from amounts 
        deposited in the general fund pursuant to paragraph (2) which 
        are hereby appropriated for such purpose until all such 
        liabilities are satisfied.
    (d) Report.--At the end of the 18-month period beginning on the 
date of the enactment of this Act, the Secretary of the Treasury and 
the Director of the Office of Management and Budget shall submit a 
joint report to the Congress containing a detailed description of the 
actions taken to implement this Act and any actions or issues relating 
to such implementation that remain uncompleted or unresolved as of the 
date of the report.
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