[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1242 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1242

 To prohibit the Federal Government from holding ownership interests, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2009

    Mr. Thune (for himself, Mr. Coburn, Mr. Inhofe, Mr. Vitter, Mr. 
  Johanns, Mr. Cornyn, Mr. Kyl, Mr. McConnell, Mr. Barrasso, and Mr. 
    Ensign) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To prohibit the Federal Government from holding ownership interests, 
                        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 ``Government Ownership Exit Plan Act 
of 2009''.

SEC. 2. DEFINITION.

    In this Act--
            (1) the term ``ownership interest'' means an interest in a 
        troubled asset described in section 3(9)(B) of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5202(a)(1)), as 
        in effect on the day before the date of enactment of this Act, 
        that was purchased by the Secretary under section 101(a)(1) of 
        such Act (12 U.S.C. 5211(a)(1)); and
            (2) the term ``Secretary'' means the Secretary of the 
        Treasury.

SEC. 3. RE-PRIVATIZATION OF PRIVATE ENTITIES.

    (a) Prohibition on Federal Government Holding Ownership 
Interests.--
            (1) In general.--Beginning on the date of enactment of this 
        Act, the Federal Government may not acquire, directly or 
        indirectly, any ownership interest.
            (2) Divestiture.--Except as provided in subsection (b), the 
        Secretary shall divest the Federal Government of any ownership 
        interest not later than July 1, 2010.
    (b) Limited Authority.--
            (1) In general.--Beginning on July 1, 2010, the Secretary 
        may hold an ownership interest with respect to a particular 
        entity for a period of not more than 6 months if, not later 
        than July 1, 2010, the Secretary submits a report to Congress 
        with respect to that entity stating that--
                    (A) compliance with subsection (a)(2) with respect 
                to such entity would have a significant adverse impact 
                on the taxpayers of the United States; and
                    (B) there is a reasonable expectation that a waiver 
                of subsection (a)(2) would allow the Secretary to 
                recover the cost to the Federal Government of acquiring 
                such ownership interest.
            (2) Single renewal.--The Secretary may renew an extension 
        under paragraph (1) for a single period of not more than 6 
        months, if the Secretary submits to Congress a report stating 
        that the conditions described in subparagraphs (A) and (B) of 
        paragraph (1) still exist with respect to the subject ownership 
        interest.
    (c) Conforming Amendment.--Section 3(9) of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5202(9)) is amended--
            (1) in subparagraph (A), by striking ``; and'' at the end 
        and inserting a period;
            (2) by striking ``means--'' and all that follows through 
        ``residential'' in subparagraph (A) and inserting ``means 
        residential''; and
            (3) by striking subparagraph (B).
    (d) Deposit of Funds.--
            (1) In general.--Section 115(a)(3) of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)) is 
        amended by striking ``outstanding at any one time''.
            (2) Deposit of funds into treasury.--
                    (A) In general.--On and after the date of enactment 
                of this Act, all repayments of obligations arising 
                under the Emergency Economic Stabilization Act of 2008 
                (12 U.S.C. 5201 et seq.), and all proceeds from the 
                sale of assets acquired by the Federal Government under 
                that Act, shall be paid into the general fund of the 
                Treasury for reduction of the public debt, in 
                accordance with section 106(d) of that Act (12 U.S.C. 
                5216(d)), as amended by this subsection.
                    (B) Conforming amendment.--Section 106(d) of the 
                Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
                5216(d)) is amended by inserting ``, and repayments of 
                obligations arising under this Act,'' after ``section 
                113''.
    (e) Influence of Management Decisions.--Title I of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended 
by adding at the end the following:

``SEC. 137. INFLUENCE OF MANAGEMENT DECISIONS.

    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `covered person' means any person who is an 
        officer or employee (including a special Government employee 
        (as defined in section 202(a) of title 18, United States Code)) 
        of the executive branch of the United States (including any 
        independent agency of the United States); and
            ``(2) the term `significant management decision' includes 
        the appointment of senior executives or board members, business 
        strategies relating to production and manufacturing, plant 
        closings, the relocation of the headquarters of an entity, the 
        modification of labor contracts, and other financial decisions.
    ``(b) Influence Prohibited.--
            ``(1) In general.--It shall be unlawful for any covered 
        person to knowingly make, with the intent to influence, a 
        communication regarding a significant management decision of a 
        recipient of assistance under this title to any officer or 
        employee of the recipient.
            ``(2) Criminal penalty.--Any covered person who violates 
        paragraph (1) shall be fined under title 18, United States 
        Code, imprisoned for not more than 1 year, or both.
    ``(c) Civil Actions.--
            ``(1) In general.--The Attorney General of the United 
        States may bring a civil action in an appropriate United States 
        district court against any covered person to enforce subsection 
        (b).
            ``(2) Civil penalty.--Any covered person who, upon proof by 
        a preponderance of the evidence, violates subsection (b) shall 
        be subject to a civil penalty of not more than $50,000 for each 
        violation. The imposition of a civil penalty under this 
        paragraph shall not preclude any other criminal or civil 
        statutory, common law, or administrative remedy, which is 
        available by law to the United States or any other person.
            ``(3) Orders.--If the Attorney General of the United States 
        has reason to believe that a covered person is engaging in 
        conduct that violates subsection (b), the Attorney General may 
        petition an appropriate United States district court for an 
        order prohibiting the covered person from engaging in the 
        conduct. The court may issue an order prohibiting the covered 
        person from engaging in the conduct if the court finds that the 
        conduct constitutes a violation of subsection (b). The filing 
        of a petition under this paragraph shall not preclude any other 
        remedy which is available by law to the United States or any 
        other person.''.
    (f) Federal Deposit Insurance Corporation.--Nothing in this Act may 
be construed to impede the ability of the Federal Deposit Insurance 
Corporation to maintain the stability of the banking system.

SEC. 4. OVERSIGHT BY FINANCIAL STABILITY OVERSIGHT BOARD.

    Section 104(a) of the Emergency Economic Stabilization Act of 2008 
(12 U.S.C. 5214(a)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the semicolon at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) reviewing the implementation of section 3 of the 
        Government Ownership Exit Plan Act of 2009.''.

SEC. 5. REPORTS REQUIRED.

    (a) Report on Federal Government Ownership.--
            (1) Reports required.--The Secretary shall make (and shall 
        publicly disclose) periodic reports detailing any ownership 
        interest held by the Federal Government, including any loan or 
        loan guarantee made by the Board of Governors of the Federal 
        Reserve System.
            (2) Timing of reports.--The Secretary shall submit the 
        reports under paragraph (1)--
                    (A) not later than October 1, 2009; and
                    (B) each quarter of the fiscal year thereafter.
    (b) Reports on Winding Down or Divestment.--
            (1) Reports required.--The Secretary shall submit to 
        Congress periodic reports on the plans of the Secretary for 
        compliance with this Act, including any plans to wind down or 
        divest an ownership interest.
            (2) Timing of reports.--The Secretary shall submit the 
        reports under paragraph (1)--
                    (A) not later than April 1, 2010; and
                    (B) each month thereafter until all ownership 
                interests are divested under section 3(a)(2).

SEC. 6. PLAN FOR GOVERNMENT SPONSORED ENTERPRISES.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall submit to Congress a report describing a plan of the 
Secretary--
            (1) to end the conservatorship by the Federal Government of 
        the Federal National Mortgage Association and the Federal Home 
        Loan Mortgage Corporation; and
            (2) to eliminate any form of direct ownership by the 
        Federal Government of the Federal National Mortgage Association 
        and the Federal Home Loan Mortgage Corporation.
                                 <all>