[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3698 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3698

To prohibit any recipient of emergency Federal economic assistance from 
using such funds for lobbying expenditures or political contributions, 
to improve transparency, enhance accountability, encourage responsible 
             corporate governance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 19, 2008

  Mrs. Feinstein (for herself and Ms. Snowe) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To prohibit any recipient of emergency Federal economic assistance from 
using such funds for lobbying expenditures or political contributions, 
to improve transparency, enhance accountability, encourage responsible 
             corporate governance, 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 ``Accountability for Economic Rescue 
Assistance Act of 2008''.

SEC. 2. PROHIBITION ON USE OF CERTAIN FEDERAL FUNDS FOR LOBBYING AND 
              POLITICAL CONTRIBUTIONS.

    (a) Definitions.--In this Act:
            (1) Emergency economic assistance.--The term ``emergency 
        economic assistance'' means any funds made available to any 
        recipient under title I of the Emergency Economic Stabilization 
        Act of 2008 (Public Law 110-343) or section 13 of the Federal 
        Reserve Act.
            (2) Lobbying expenditures.--The term ``lobbying 
        expenditures'' has the meaning given under section 4911(c)(1) 
        of the Internal Revenue Code of 1986.
            (3) Political contributions.--The term ``political 
        contributions'' means any contribution on behalf of a political 
        candidate or to a separate segregated fund described in section 
        316(b)(2)(C) of the Federal Election Campaign Act of 1971 (2 
        U.S.C. 441b(b)(2)(C)).
    (b) Prohibition on the Use of Emergency Economic Assistance.--Any 
recipient of emergency economic assistance and any subsidiary thereof 
may not use such funds for lobbying expenditures or political 
contributions.

SEC. 3. GUIDELINES FOR THE USE OF FUNDS.

    (a) Guidelines.--Not later than 30 days after the date of enactment 
of this Act, the Secretary of the Treasury, in consultation with the 
Comptroller General and the Financial Stability Oversight Board, shall 
develop and publish corporate governance principles and ethical 
guidelines for recipients of emergency economic assistance including 
restrictions governing--
            (1) the hosting, sponsorship, or payments for conferences 
        and events;
            (2) the use of corporate aircraft, travel accommodations, 
        and travel expenditures;
            (3) expenses relating to office or facility renovations or 
        relocations; and
            (4) expenses relating to entertainment, holiday parties, 
        employee recognition events, or similar ancillary corporate 
        expenses.
    (b) Internal Reporting and Oversight.--The Secretary of the 
Treasury shall publish suggested mechanisms for addressing non-
compliance with the guidelines developed pursuant to subsection (a) 
through enhanced internal reporting and oversight requirements.

SEC. 4. REPORTING AND CERTIFICATION.

    (a) Report.--Each recipient of emergency economic assistance shall 
file with the Secretary of the Treasury on a quarterly basis--
            (1) a detailed accounting of how emergency economic 
        assistance is being used, including an explanation of how such 
        funds have been allocated to stabilize financial markets and 
        increase the availability of credit to consumers and 
        businesses; and
            (2) a certification that--
                    (A) no emergency economic assistance is being used 
                for lobbying expenditures of political contributions in 
                violation of section 2(b); and
                    (B) no emergency economic assistance is being used 
                in violation of the guidelines issued by the Secretary 
                of Treasury under section 3(a).
    (b) Public Availability.--Any report or certification filed under 
this section shall be made publically available by Secretary of the 
Treasury on-line, and at no cost.

SEC. 5. PENALTIES.

    (a) Use of Funds.--Any person that violates section 2(b) shall be 
subject to a civil fine of at least $100,000 per violation.
    (b) Future Funding.--Any person that fails to comply with section 
2(b) or the guidelines implemented under section 3 shall not be 
eligible to receive any future emergency economic assistance unless the 
Secretary of the Treasury, in consultation with the Financial Stability 
Oversight Board, determines that reasonable steps have been taken to 
bring actions into compliance with and to prevent future violations of 
this Act.
    (c) False Report.--Any person that fails to file a report or 
certification required under section 4 shall be subject to a civil fine 
of at least $100,000.

SEC. 6. EFFECTIVE DATE AND APPLICATION.

    This Act shall take effect on the date of enactment of this Act and 
apply to any emergency economic assistance received before, on, or 
after that date.
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