I 111th CONGRESS 1st Session H. R. 4170 IN THE HOUSE OF REPRESENTATIVES December 2, 2009 Mr. Hodes introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on the Budget and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Emergency Economic Stabilization Act of 2008 to strike the authority of the Secretary of the Treasury to extend the Troubled Asset Relief Program after 2009, and for other purposes.

1.

Short title

This Act may be cited as the Stop Any TARP Extension Act of 2009.

2.

Findings

The Congress finds as follows: (1)On October 7, 2008, Congress established the Troubled Assets Relief Program (TARP) as part of the Emergency Economic Stabilization Act (Public Law 110–343; 122 Stat. 3765) and allocated $700,000,000,000 for the purchase of toxic assets from banks with the goal of restoring liquidity to the financial sector and restarting the flow of credit in our markets. (2)The Secretary of the Treasury, without consultation with the Congress, changed the purpose of Troubled Assets Relief Program and began injecting capital into financial institutions through a program called the Capital Purchase Program (CPP) rather than purchasing toxic assets. (3)Lending by financial institutions was not noticeably increased with the implementation of the Capital Purchase Program and the expenditure of $250,000,000,000 of the funds under the Troubled Assets Relief Program, despite the goal of the program. (4)The recipients of amounts under the Capital Purchase Program are now faced with additional restrictions related to accepting those funds. (5)A number of community banks and large financial institutions have expressed their desire to return their Capital Purchase Program funds to the Secretary of the Treasury and the Secretary has begun the process of accepting receipt of such funds. (6)The Secretary of the Treasury should not unilaterally determine how these returned funds are spent in the future and the Congress should play a role in any determination of future spending of funds returned through the Troubled Assets Relief Program.

3.

Repeal of TARP extension authority

Section 120 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5230) is amended— (1)by striking (a) Termination.—; and (2)by striking subsection (b).

4.

Debt reduction

Subsection (d) of section 106 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216(d)) is amended to read as follows: (d)

Debt reduction

(1)

In general

The Secretary of the Treasury shall deposit in Public Debt Reduction Payment Account— (A)all remaining funds available under this title not later than 30 days after the date of enactment of this section; (B)any amounts received by the Secretary for repayment of financial assistance, for payment of any interest on the receipt of such financial assistance by an entity that has received financial assistance under this title or any program enacted by the Secretary under the authorities granted to the Secretary under this title, including the Capital Purchase Program; and (C)revenues of, and proceeds from the sale of troubled assets purchased under this title, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 113. (2)

Public Debt Reduction Payment Account

The term Public Debt Reduction Payment Account means the account established under section 3114 of title 31, United States Code. .

5.

Establishment of public debt reduction payment account

(a)

In general

Subchapter I of chapter 31 of title 31, United States Code, is amended by adding at the end the following new section:

3114.

Public Debt Reduction Payment Account

(a)

Account established

There is hereby established in the Treasury of the United States an account to be known as the Public Debt Reduction Payment Account (hereinafter in this section referred to as the Account). (b)

Use of account

The Secretary of the Treasury shall use amounts in the Account to pay at maturity, or to redeem or buy before maturity, any obligation of the Government held by the public and included in the public debt. Any obligation which is paid, redeemed, or bought with amounts from the account shall be canceled and retired and may not be reissued. Amounts deposited in the account are appropriated and may only be expended to carry out this section. (c)

Deposits

There shall be deposited in the Account any amounts which are received by the Secretary of the Treasury pursuant to section 137 of the Emergency Economic Stabilization Act of 2008. The funds deposited to this account shall remain available until expended. (d)

Implementation

The Secretary of the Treasury and the Director of the Office of Management and Budget shall each take such actions as may be necessary to promptly carry out this section in accordance with sound debt management policies. (e)

Coordination with debt management

Reducing the debt pursuant to this section shall not interfere with the debt management policies or goals of the Secretary of the Treasury.

. (b)

Clerical amendment

The table of contents for chapter 31 of title 31, United States Code, is amended by inserting after the item relating to section 3113 the following new item: 3114. Public Debt Reduction Payment Account. .

6.

Reduction of statutory limit on the public debt

Section 3101(b) of title 31, United States Code, is amended by inserting minus the aggregate amounts deposited into the Public Debt Reduction Payment Account pursuant to section 3114(c) before , outstanding at one time.

7.

Off-budget status of public debt reduction payment account

Notwithstanding any other provision of law, the receipts and disbursements of the Public Debt Reduction Payment Account established by section 3114 of title 31, United States Code, shall not be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of— (1)the budget of the United States Government as submitted by the President; (2)the congressional budget; or (3)the Balanced Budget and Emergency Deficit Control Act of 1985.

8.

Removing public debt reduction payment account from budget pronouncements

(a)

In general

Any official statement issued by the Office of Management and Budget, the Congressional Budget Office, or any other agency or instrumentality of the Federal Government of surplus or deficit totals of the budget of the United States Government as submitted by the President or of the surplus or deficit totals of the congressional budget, and any description of, or reference to, such totals in any official publication or material issued by either of such Offices or any other such agency or instrumentality, shall exclude the outlays and receipts of the Public Debt Reduction Payment Account established by section 3114 of title 31, United States Code. (b)

Separate Public Debt Reduction Payment Account budget documents

The excluded outlays and receipts of the Public Debt Reduction Payment Account established by section 3114 of title 31, United States Code, shall be submitted in separate budget documents.