110 HR 6987 IH: Taxpayer Bailout Protection Act of U.S. House of Representatives 2008-09-22 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 2d Session H. R. 6987 IN THE HOUSE OF REPRESENTATIVES September 22, 2008 Mr. Feeney (for himself, Mr. Roskam, and Mr. Garrett of New Jersey) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Sarbanes-Oxley Act of 2002 to require officers to repay bonus amounts received during a year in which their company is subject to a taxpayer bailout, as well as the two previous years.
1.
Short title
This Act may be cited as the Taxpayer Bailout Protection Act of 2008.
2.
Repayment of bonus in case of taxpayer bailout
(a)
In general
Section 304 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7243) is amended by adding at the end the following new subsection: (c)
Repayment of bonus in case of taxpayer bailout
(1)
In general
An officer of an issuer shall pay to the Department of the Treasury any amounts received by such officer during a year as a bonus or other incentive-based or equity-based compensation from the issuer during— (A)a year in which the issuer is subject to a taxpayer bailout; and (B)the two years prior to a year in which the issuer is subject to a taxpayer bailout. (2)
Taxpayer bailout defined
For purposes of this subsection, and with respect to an issuer, the term taxpayer bailout means— (A)the placement of the issuer under conservatorship, receivership, or other assumption of the management, governance, and control of the issuer by the Department of the Treasury or the Board of Governors of the Federal Reserve; or (B)an emergency loan of public funds made to the issuer by the Department of the Treasury or the Board of Governors of the Federal Reserve, if the Chairman of the Board of Governors of the Federal Reserve determines that such a loan is necessary to prevent the imminent failure of the issuer. . (b)
Effective date
The amendment made by this section shall take effect with respect to bonuses and other incentive-based or equity-based compensation received by an officer after the date of the enactment of this Act.