[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 386 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
May 6, 2009.
Resolved, That the bill from the Senate (S. 386) entitled ``An Act
to improve enforcement of mortgage fraud, securities fraud, financial
institution fraud, and other frauds related to federal assistance and
relief programs, for the recovery of funds lost to these frauds, and
for other purposes'', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fraud Enforcement and Recovery Act
of 2009'' or ``FERA''.
SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, COMMODITIES, AND
FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.
(a) Definition of Financial Institution Amended To Include Mortgage
Lending Business.--Section 20 of title 18, United States Code, is
amended--
(1) in paragraph (8), by striking ``or'' after the
semicolon;
(2) in paragraph (9), by striking the period and inserting
``; or''; and
(3) by inserting at the end the following:
``(10) a mortgage lending business (as defined in section
27 of this title) or any person or entity that makes in whole
or in part a federally related mortgage loan as defined in
section 3 of the Real Estate Settlement Procedures Act of
1974.''.
(b) Mortgage Lending Business Defined.--
(1) In general.--Chapter 1 of title 18, United States Code,
is amended by inserting after section 26 the following:
``Sec. 27. Mortgage lending business defined
``In this title, the term `mortgage lending business' means an
organization which finances or refinances any debt secured by an
interest in real estate, including private mortgage companies and any
subsidiaries of such organizations, and whose activities affect
interstate or foreign commerce.''.
(2) Chapter analysis.--The chapter analysis for chapter 1
of title 18, United States Code, is amended by adding at the
end the following:
``27. Mortgage lending business defined.''.
(c) False Statements in Mortgage Applications Amended To Include
False Statements by Mortgage Brokers and Agents of Mortgage Lending
Businesses.--Section 1014 of title 18, United States Code, is amended
by--
(1) striking ``or'' after ``the International Banking Act
of 1978),''; and
(2) inserting after ``section 25(a) of the Federal Reserve
Act'' the following: ``, or a mortgage lending business, or any
person or entity that makes in whole or in part a federally
related mortgage loan as defined in section 3 of the Real
Estate Settlement Procedures Act of 1974''.
(d) Major Fraud Against the Government Amended To Include Economic
Relief and Troubled Asset Relief Program Funds.--Section 1031(a) of
title 18, United States Code, is amended by--
(1) inserting after ``or promises, in'' the following:
``any grant, contract, subcontract, subsidy, loan, guarantee,
insurance, or other form of Federal assistance, including
through the Troubled Asset Relief Program, an economic
stimulus, recovery or rescue plan provided by the Government,
or the Government's purchase of any troubled asset as defined
in the Emergency Economic Stabilization Act of 2008, or in'';
(2) striking ``the contract, subcontract'' and inserting
``such grant, contract, subcontract, subsidy, loan, guarantee,
insurance, or other form of Federal assistance''; and
(3) striking ``for such property or services''.
(e) Securities Fraud Amended To Include Fraud Involving Options and
Futures in Commodities.--
(1) In general.--Section 1348 of title 18, United States
Code, is amended--
(A) in the caption, by inserting ``and
commodities'' after ``Securities'';
(B) in paragraph (1), by inserting ``any commodity
for future delivery, or any option on a commodity for
future delivery, or'' after ``any person in connection
with''; and
(C) in paragraph (2), by inserting ``any commodity
for future delivery, or any option on a commodity for
future delivery, or'' after ``in connection with the
purchase or sale of''.
(2) Chapter analysis.--The item for section 1348 in the
chapter analysis for chapter 63 of title 18, United States
Code, is amended by inserting ``and commodities'' after
``Securities''.
(f) Money Laundering Amended To Define Proceeds of Specified
Unlawful Activity.--
(1) Money laundering.--Section 1956(c) of title 18, United
States Code, is amended--
(A) in paragraph (8), by striking the period and
inserting ``; and''; and
(B) by inserting at the end the following:
``(9) the term `proceeds' means any property derived from
or obtained or retained, directly or indirectly, through some
form of unlawful activity, including the gross receipts of such
activity.''.
(2) Monetary transactions.--Section 1957(f) of title 18,
United States Code, is amended by striking paragraph (3) and
inserting the following:
``(3) the terms `specified unlawful activity' and
`proceeds' shall have the meaning given those terms in section
1956 of this title.''.
(g) Sense of the Congress and Report Concerning Required Approval
for Merger Cases.--
(1) Sense of congress.--It is the sense of the Congress
that no prosecution of an offense under section 1956 or 1957 of
title 18, United States Code, should be undertaken in
combination with the prosecution of any other offense, without
prior approval of the Attorney General, the Deputy Attorney
General, the Assistant Attorney General in charge of the
Criminal Division, a Deputy Assistant Attorney General in the
Criminal Division, or the relevant United States Attorney, if
the conduct to be charged as ``specified unlawful activity'' in
connection with the offense under section 1956 or 1957 is so
closely connected with the conduct to be charged as the other
offense that there is no clear delineation between the two
offenses.
(2) Report.--One year after the date of the enactment of
this Act, and at the end of each of the four succeeding one-
year periods, the Attorney General shall report to the House
and Senate Committees on the Judiciary on efforts undertaken by
the Department of Justice to ensure that the review and
approval described in paragraph (1) takes place in all
appropriate cases. The report shall include the following:
(A) The number of prosecutions described in
paragraph (1) that were undertaken during the previous
one-year period after prior approval by an official
described in paragraph (1), classified by type of
offense and by the approving official.
(B) The number of prosecutions described in
paragraph (1) that were undertaken during the previous
one-year period without such prior approval, classified
by type of offense, and the reasons why such prior
approval was not obtained.
(C) The number of times during the previous year in
which an approval described in paragraph (1) was
denied.
SEC. 3. AUTHORIZATION OF ADDITIONAL FUNDING TO COMBAT MORTGAGE FRAUD,
SECURITIES AND COMMODITIES FRAUD, AND OTHER FRAUDS
INVOLVING FEDERAL ECONOMIC ASSISTANCE.
(a) Authorization of Additional Appropriations for the Department
of Justice.--
(1) In general.--There is authorized to be appropriated to
the Attorney General, $165,000,000 for each of the fiscal years
2010 and 2011, for the purposes of investigations and
prosecutions and civil and administrative proceedings involving
Federal assistance programs and financial institutions,
including financial institutions to which this Act and
amendments made by this Act apply.
(2) Allocations.--With respect to fiscal years 2010 and
2011, the amounts authorized to be appropriated under paragraph
(1) shall be allocated as follows:
(A) Federal Bureau of Investigation: $75,000,000
for fiscal year 2010 and $65,000,000 for fiscal year
2011, an appropriate percentage of which amounts shall
be used to investigate mortgage fraud.
(B) The offices of the United States Attorneys:
$50,000,000 for each fiscal year.
(C) The criminal division of the Department of
Justice: $20,000,000 for each fiscal year.
(D) The civil division of the Department of
Justice: $15,000,000 for each fiscal year.
(E) The tax division of the Department of Justice:
$5,000,000 for each fiscal year.
(b) Authorization of Additional Appropriations for the Postal
Inspection Service.--There is authorized to be appropriated to the
Postal Inspection Service of the United States Postal Service,
$30,000,000 for each of the fiscal years 2010 and 2011 for
investigations involving Federal assistance programs and financial
institutions, including financial institutions to which this Act and
amendments made by this Act apply.
(c) Authorization of Additional Appropriations for the Inspector
General for the Department of Housing and Urban Development.--There is
authorized to be appropriated to the Inspector General of the
Department of Housing and Urban Development, $30,000,000 for each of
the fiscal years 2010 and 2011 for investigations involving Federal
assistance programs and financial institutions, including financial
institutions to which this Act and amendments made by this Act apply.
(d) Authorization of Additional Appropriations for the United
States Secret Service.--There is authorized to be appropriated to the
United States Secret Service of the Department of Homeland Security,
$20,000,000 for each of the fiscal years 2010 and 2011 for
investigations involving Federal assistance programs and financial
institutions, including financial institutions to which this Act and
amendments made by this Act apply.
(e) Authorization of Additional Appropriations for the Securities
and Exchange Commission.--
(1) In general.--There is authorized to be appropriated to
the Securities and Exchange Commission, $20,000,000 for each of
the fiscal years 2010 and 2011 for investigations and
enforcement proceedings involving financial institutions,
including financial institutions to which this Act and
amendments made by this Act apply.
(2) Inspector general.--There is authorized to be
appropriated to the Securities and Exchange Commission,
$1,000,000 for each of the fiscal years 2010 and 2011 for the
salaries and expenses of the Office of the Inspector General of
the Securities and Exchange Commission.
(f) Use of Funds.--
(1) In general.--The funds appropriated pursuant to
authorization under this section shall be limited to covering
the costs of each listed agency or department for investigating
possible criminal, civil, or administrative violations and for
criminal, civil, or administrative proceedings involving
financial crimes and crimes against Federal assistance
programs, including mortgage fraud, securities and commodities
fraud, financial institution fraud, and other frauds related to
Federal assistance and relief programs.
(2) Funds for training and research.--Funds authorized to
be appropriated under this section may be used and expended for
programs for improving the detection, investigation, and
prosecution of economic crime including financial fraud and
mortgage fraud. Funds allocated under this section may be
allocated to programs which assist State and local criminal
justice agencies to develop, establish, and maintain
intelligence-focused policing strategies and related
information sharing; provide training and investigative support
services to State and local criminal justice agencies to
provide such agencies with skills and resources needed to
investigate and prosecute such criminal activities and related
criminal activities; provide research support, establish
partnerships, and provide other resources to aid State and
local criminal justice agencies to prevent, investigate, and
prosecute such criminal activities and related problems;
provide information and research to the general public to
facilitate the prevention of such criminal activities; and any
other programs specified by the Attorney General as furthering
the purposes of this Act.
(g) Additional Nature of Authorizations; Availability.--The amounts
authorized under this section are in addition to amounts otherwise
authorized in other Acts and shall remain available until expended.
(h) Report to Congress.--Following the final expenditure of all
funds appropriated pursuant to authorization under this section, the
Attorney General, in consultation with the United States Postal
Inspection Service, the Inspector General for the Department of Housing
and Urban Development, the Secretary of Homeland Security, and the
Commissioner of the Securities and Exchange Commission, shall submit a
report to Congress identifying--
(1) the amounts expended under each of subsections (a),
(b), (c), (d), and (e) and a certification of compliance with
the requirements listed in subsection (f); and
(2) the amounts recovered as a result of criminal or civil
restitution, fines, penalties, and other monetary recoveries
resulting from criminal, civil, or administrative proceedings
and settlements undertaken with funds authorized by this Act.
SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE ORIGINAL
INTENT OF THE LAW.
(a) Clarification of the False Claims Act.--Section 3729 of title
31, United States Code, is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Liability for Certain Acts.--
``(1) In general.--Subject to paragraph (2), any person
who--
``(A) knowingly presents, or causes to be
presented, a false or fraudulent claim for payment or
approval;
``(B) knowingly makes, uses, or causes to be made
or used, a false record or statement material to a
false or fraudulent claim;
``(C) conspires to commit a violation of
subparagraph (A), (B), (D), (E), (F), or (G);
``(D) has possession, custody, or control of
property or money used, or to be used, by the
Government and knowingly delivers, or causes to be
delivered, less than all of that money or property;
``(E) is authorized to make or deliver a document
certifying receipt of property used, or to be used, by
the Government and, intending to defraud the
Government, makes or delivers the receipt without
completely knowing that the information on the receipt
is true;
``(F) knowingly buys, or receives as a pledge of an
obligation or debt, public property from an officer or
employee of the Government, or a member of the Armed
Forces, who lawfully may not sell or pledge property;
or
``(G) knowingly makes, uses, or causes to be made
or used, a false record or statement material to an
obligation to pay or transmit money or property to the
Government, or knowingly conceals or knowingly and
improperly avoids or decreases an obligation to pay or
transmit money or property to the Government,
is liable to the United States Government for a civil penalty
of not less than $5,000 and not more than $10,000, as adjusted
by the Federal Civil Penalties Inflation Adjustment Act of 1990
(28 U.S.C. 2461 note; Public Law 104-410), plus 3 times the
amount of damages which the Government sustains because of the
act of that person.
``(2) Reduced damages.--If the court finds that--
``(A) the person committing the violation of this
subsection furnished officials of the United States
responsible for investigating false claims violations
with all information known to such person about the
violation within 30 days after the date on which the
defendant first obtained the information;
``(B) such person fully cooperated with any
Government investigation of such violation; and
``(C) at the time such person furnished the United
States with the information about the violation, no
criminal prosecution, civil action, or administrative
action had commenced under this title with respect to
such violation, and the person did not have actual
knowledge of the existence of an investigation into
such violation,
the court may assess not less than 2 times the amount of
damages which the Government sustains because of the act of
that person.
``(3) Costs of civil actions.--A person violating this
subsection shall also be liable to the United States Government
for the costs of a civil action brought to recover any such
penalty or damages.'';
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Definitions.--For purposes of this section--
``(1) the terms `knowing' and `knowingly'--
``(A) mean that a person, with respect to
information--
``(i) has actual knowledge of the
information;
``(ii) acts in deliberate ignorance of the
truth or falsity of the information; or
``(iii) acts in reckless disregard of the
truth or falsity of the information; and
``(B) require no proof of specific intent to
defraud;
``(2) the term `claim'--
``(A) means any request or demand, whether under a
contract or otherwise, for money or property and
whether or not the United States has title to the money
or property, that--
``(i) is presented to an officer, employee,
or agent of the United States; or
``(ii) is made to a contractor, grantee, or
other recipient, if the money or property is to
be spent or used on the Government's behalf or
to advance a Government program or interest,
and if the United States Government--
``(I) provides or has provided any
portion of the money or property
requested or demanded; or
``(II) will reimburse such
contractor, grantee, or other recipient
for any portion of the money or
property which is requested or
demanded; and
``(B) does not include requests or demands for
money or property that the Government has paid to an
individual as compensation for Federal employment or as
an income subsidy with no restrictions on that
individual's use of the money or property;
``(3) the term `obligation' means an established duty,
whether or not fixed, arising from an express or implied
contractual, grantor-grantee, or licensor-licensee
relationship, from a fee-based or similar relationship, from
statute or regulation, or from the retention of any
overpayment; and
``(4) the term `material' means having a natural tendency
to influence, or be capable of influencing, the payment or
receipt of money or property.'';
(3) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively; and
(4) in subsection (c), as redesignated, by striking
``subparagraphs (A) through (C) of subsection (a)'' and
inserting ``subsection (a)(2)''.
(b) Intervention by the Government.--Section 3731(b) of title 31,
United States Code, is amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting the new subsection (c):
``(c) If the Government elects to intervene and proceed with an
action brought under 3730(b), the Government may file its own complaint
or amend the complaint of a person who has brought an action under
section 3730(b) to clarify or add detail to the claims in which the
Government is intervening and to add any additional claims with respect
to which the Government contends it is entitled to relief. For statute
of limitations purposes, any such Government pleading shall relate back
to the filing date of the complaint of the person who originally
brought the action, to the extent that the claim of the Government
arises out of the conduct, transactions, or occurrences set forth, or
attempted to be set forth, in the prior complaint of that person.''.
(c) Civil Investigative Demands.--Section 3733 of title 31, United
States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A)--
(I) by inserting ``, or a designee
(for purposes of this section),'' after
``Whenever the Attorney General''; and
(II) by striking ``the Attorney
General may, before commencing a civil
proceeding under section 3730 or other
false claims law,'' and inserting ``the
Attorney General, or a designee, may,
before commencing a civil proceeding
under section 3730(a) or other false
claims law, or making an election under
section 3730(b),''; and
(ii) in the matter following subparagraph
(D)--
(I) by striking ``may not
delegate'' and inserting ``may
delegate''; and
(II) by adding at the end the
following: ``Any information obtained
by the Attorney General or a designee
of the Attorney General under this
section may be shared with any qui tam
relator if the Attorney General or
designee determine it is necessary as
part of any false claims act
investigation.''; and
(B) in paragraph (2)(G), by striking the second
sentence;
(2) in subsection (i)(2)--
(A) in subparagraph (B), by striking ``, who is
authorized for such use under regulations which the
Attorney General shall issue''; and
(B) in subparagraph (C), by striking ``Disclosure
of information to any such other agency shall be
allowed only upon application, made by the Attorney
General to a United States district court, showing
substantial need for the use of the information by such
agency in furtherance of its statutory
responsibilities.''; and
(3) in subsection (l)--
(A) in paragraph (6), by striking ``and'' after the
semicolon;
(B) in paragraph (7), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(8) the term `official use' means any use that is
consistent with the law, and the regulations and policies of
the Department of Justice, including use in connection with
internal Department of Justice memoranda and reports;
communications between the Department of Justice and a Federal,
State, or local government agency, or a contractor of a
Federal, State, or local government agency, undertaken in
furtherance of a Department of Justice investigation or
prosecution of a case; interviews of any qui tam relator or
other witness; oral examinations; depositions; preparation for
and response to civil discovery requests; introduction into the
record of a case or proceeding; applications, motions,
memoranda and briefs submitted to a court or other tribunal;
and communications with Government investigators, auditors,
consultants and experts, the counsel of other parties,
arbitrators and mediators, concerning an investigation, case or
proceeding.''.
(d) Relief From Retaliatory Actions.--Section 3730(h) of title 31,
United States Code, is amended to read as follows:
``(h) Relief From Retaliatory Actions.--
``(1) In general.--Any employee, contractor, or agent shall
be entitled to all relief necessary to make that employee,
contractor, or agent whole, if that employee, contractor, or
agent is discharged, demoted, suspended, threatened, harassed,
or in any other manner discriminated against in the terms and
conditions of employment because of lawful acts done by the
employee, contractor, or agent on behalf of the employee,
contractor, or agent or associated others in furtherance of
other efforts to stop 1 or more violations of this subchapter.
``(2) Relief.--Relief under paragraph (1) shall include
reinstatement with the same seniority status that employee,
contractor, or agent would have had but for the discrimination,
2 times the amount of back pay, interest on the back pay, and
compensation for any special damages sustained as a result of
the discrimination, including litigation costs and reasonable
attorneys' fees. An action under this subsection may be brought
in the appropriate district court of the United States for the
relief provided in this subsection.''.
(e) False Claims Jurisdiction.--Section 3732 of title 31, United
States Code, is amended by adding at the end the following new
subsection:
``(c) Service on State or Local Authorities.--With respect to any
State or local government that is named as a co-plaintiff with the
United States in an action brought under subsection (b), a seal on the
action ordered by the court under section 3730(b) shall not preclude
the Government or the person bringing the action from serving the
complaint, any other pleadings, or the written disclosure of
substantially all material evidence and information possessed by the
person bringing the action on the law enforcement authorities that are
authorized under the law of that State or local government to
investigate and prosecute such actions on behalf of such governments,
except that such seal applies to the law enforcement authorities so
served to the same extent as the seal applies to other parties in the
action.''.
(f) Effective Date and Application.--The amendments made by this
section shall take effect on the date of enactment of this Act and
shall apply to conduct on or after the date of enactment, except that--
(1) subparagraph (B) of section 3729(a)(1) of title 31,
United States Code, as added by subsection (a)(1), shall take
effect as if enacted on June 7, 2008, and apply to all claims
under the False Claims Act (31 U.S.C. 3729 et seq.) that are
pending on or after that date; and
(2) section 3731(b) of title 31, as amended by subsection
(b); section 3733, of title 31, as amended by subsection (c);
and section 3732 of title 31, as amended by subsection (e);
shall apply to cases pending on the date of enactment.
SEC. 5. FINANCIAL CRISIS INQUIRY COMMISSION.
(a) Establishment of Commission.--There is established in the
legislative branch the Financial Crisis Inquiry Commission (in this
section referred to as the ``Commission'') to examine the causes,
domestic and global, of the current financial and economic crisis in
the United States.
(b) Composition of the Commission.--
(1) Members.--The Commission shall be composed of 10
members, of whom--
(A) 3 members shall be appointed by the majority
leader of the Senate, in consultation with relevant
Committees;
(B) 3 members shall be appointed by the Speaker of
the House of Representatives, in consultation with
relevant Committees;
(C) 2 members shall be appointed by the minority
leader of the Senate, in consultation with relevant
Committees; and
(D) 2 members shall be appointed by the minority
leader of the House of Representatives, in consultation
with relevant Committees.
(2) Qualifications; limitation.--
(A) In general.--It is the sense of the Congress
that individuals appointed to the Commission should be
prominent United States citizens with national
recognition and significant depth of experience in such
fields as banking, regulation of markets, taxation,
finance, economics, consumer protection, and housing.
(B) Limitation.--No person who is a member of
Congress or an officer or employee of the Federal
Government or any State or local government may serve
as a member of the Commission.
(3) Chairperson; vice chairperson.--
(A) In general.--Subject to the requirements of
subparagraph (B), the Chairperson of the Commission
shall be selected jointly by the Majority Leader of the
Senate and the Speaker of the House of Representatives,
and the Vice Chairperson shall be selected jointly by
the Minority Leader of the Senate and the Minority
Leader of the House of Representatives.
(B) Political party affiliation.--The Chairperson
and Vice Chairperson of the Commission may not be from
the same political party.
(4) Meetings, quorum; vacancies.--
(A) Meetings.--
(i) Initial meeting.--The initial meeting
of the Commission shall be as soon as possible
after a quorum of members have been appointed.
(ii) Subsequent meetings.--After the
initial meeting of the Commission, the
Commission shall meet upon the call of the
Chairperson or a majority of its members.
(B) Quorum.--6 members of the Commission shall
constitute a quorum.
(C) Vacancies.--Any vacancy on the Commission
shall--
(i) not affect the powers of the
Commission; and
(ii) be filled in the same manner in which
the original appointment was made.
(c) Functions of the Commission.--The functions of the Commission
are--
(1) to examine the causes of the current financial and
economic crisis in the United States, specifically the role
of--
(A) fraud and abuse in the financial sector,
including fraud and abuse towards consumers in the
mortgage sector;
(B) Federal and State financial regulators,
including the extent to which they enforced, or failed
to enforce statutory, regulatory, or supervisory
requirements;
(C) the global imbalance of savings, international
capital flows, and fiscal imbalances of various
governments;
(D) monetary policy and the availability and terms
of credit;
(E) accounting practices, including, mark-to-market
and fair value rules, and treatment of off-balance
sheet vehicles;
(F) tax treatment of financial products and
investments;
(G) capital requirements and regulations on
leverage and liquidity, including the capital
structures of regulated and non-regulated financial
entities;
(H) credit rating agencies in the financial system,
including, reliance on credit ratings by financial
institutions and Federal financial regulators, the use
of credit ratings in financial regulation, and the use
of credit ratings in the securitization markets;
(I) lending practices and securitization, including
the originate-to-distribute model for extending credit
and transferring risk;
(J) affiliations between insured depository
institutions and securities, insurance, and other types
of nonbanking companies;
(K) the concept that certain institutions are
``too-big-to-fail'' and its impact on market
expectations;
(L) corporate governance, including the impact of
company conversions from partnerships to corporations;
(M) compensation structures;
(N) changes in compensation for employees of
financial companies, as compared to compensation for
others with similar skill sets in the labor market;
(O) the legal and regulatory structure of the
United States housing market;
(P) derivatives and unregulated financial products
and practices, including credit default swaps;
(Q) short-selling;
(R) financial institution reliance on numerical
models, including risk models and credit ratings;
(S) the legal and regulatory structure governing
financial institutions, including the extent to which
the structure creates the opportunity for financial
institutions to engage in regulatory arbitrage;
(T) the legal and regulatory structure governing
investor and mortrgagor protection;
(U) financial institutions and government-sponsored
enterprises; and
(V) the quality of due diligence undertaken by
financial institutions;
(2) to examine the causes of the collapse of each major
financial institution that failed (including institutions that
were acquired to prevent their failure) or was likely to have
failed if not for the receipt of exceptional Government
assistance from the Secretary of the Treasury during the period
beginning in August 2007 through April 2009;
(3) to submit a report under subsection (h);
(4) to refer to the Attorney General of the United States
and any appropriate State attorney general any person that the
Commission finds may have violated the laws of the United
States in relation to such crisis; and
(5) to build upon the work of other entities, and avoid
unnecessary duplication, by reviewing the record of the
Committee on Banking, Housing, and Urban Affairs of the Senate,
the Committee on Financial Services of the House of
Representatives, other congressional committees, the Government
Accountability Office, other legislative panels, and any other
department, agency, bureau, board, commission, office,
independent establishment, or instrumentality of the United
States (to the fullest extent permitted by law) with respect to
the current financial and economic crisis.
(d) Powers of the Commission.--
(1) Hearings and evidence.--The Commission may, for
purposes of carrying out this section--
(A) hold hearings, sit and act at times and places,
take testimony, receive evidence, and administer oaths;
and
(B) require, by subpoena or otherwise, the
attendance and testimony of witnesses and the
production of books, records, correspondence,
memoranda, papers, and documents.
(2) Subpoenas.--
(A) Service.--Subpoenas issued under paragraph
(1)(B) may be served by any person designated by the
Commission.
(B) Enforcement.--
(i) In general.--In the case of contumacy
or failure to obey a subpoena issued under
paragraph (1)(B), the United States district
court for the judicial district in which the
subpoenaed person resides, is served, or may be
found, or where the subpoena is returnable, may
issue an order requiring such person to appear
at any designated place to testify or to
produce documentary or other evidence. Any
failure to obey the order of the court may be
punished by the court as a contempt of that
court.
(ii) Additional enforcement.--Sections 102
through 104 of the Revised Statutes of the
United States (2 U.S.C. 192 through 194) shall
apply in the case of any failure of any witness
to comply with any subpoena or to testify when
summoned under the authority of this section.
(iii) Issuance.--A subpoena may be issued
under this subsection only--
(I) by the agreement of the
Chairperson and the Vice Chairperson;
or
(II) by the affirmative vote of a
majority of the Commission, a majority
being present.
(3) Contracting.--The Commission may enter into contracts
to enable the Commission to discharge its duties under this
section.
(4) Information from federal agencies and other entities.--
(A) In general.--The Commission may secure directly
from any department, agency, bureau, board, commission,
office, independent establishment, or instrumentality
of the United States any information related to any
inquiry of the Commission conducted under this section,
including information of a confidential nature (which
the Commission shall maintain in a secure manner). Each
such department, agency, bureau, board, commission,
office, independent establishment, or instrumentality
shall furnish such information directly to the
Commission upon request.
(B) Other entities.--It is the sense of the
Congress that the Commission should seek testimony or
information from principals and other representatives
of government agencies and private entities that were
significant participants in the United States and
global financial and housing markets during the time
period examined by the Commission.
(5) Administrative support services.--Upon the request of
the Commission--
(A) the Administrator of General Services shall
provide to the Commission, on a reimbursable basis, the
administrative support services necessary for the
Commission to carry out its responsibilities under this
Act; and
(B) other Federal departments and agencies may
provide to the Commission any administrative support
services as may be determined by the head of such
department or agency to be advisable and authorized by
law.
(6) Donations of goods and services.--The Commission may
accept, use, and dispose of gifts or donations of services or
property.
(7) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as departments and agencies of the United States.
(8) Powers of subcommittees, members, and agents.--Any
subcommittee, member, or agent of the Commission may, if
authorized by the Commission, take any action which the
Commission is authorized to take by this section.
(e) Staff of the Commission.--
(1) Director.--The Commission shall have a Director who
shall be appointed by the Chairperson and the Vice Chairperson,
acting jointly.
(2) Staff.--The Chairperson and the Vice Chairperson may
jointly appoint additional personnel, as may be necessary, to
enable the Commission to carry out its functions.
(3) Applicability of certain civil service laws.--The
Director and staff of the Commission may be appointed without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, except that no
rate of pay fixed under this paragraph may exceed the
equivalent of that payable for a position at level V of the
Executive Schedule under section 5316 of title 5, United States
Code. Any individual appointed under paragraph (1) or (2) shall
be treated as an employee for purposes of chapters 63, 81, 83,
84, 85, 87, 89, 89A, 89B, and 90 of that title.
(4) Detailees.--Any Federal Government employee may be
detailed to the Commission without reimbursement from the
Commission, and such detailee shall retain the rights, status,
and privileges of his or her regular employment without
interruption.
(5) Consultant services.--The Commission is authorized to
procure the services of experts and consultants in accordance
with section 3109 of title 5, United States Code, but at rates
not to exceed the daily rate paid a person occupying a position
at level IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(f) Compensation and Travel Expenses.--
(1) Compensation.--Each member of the Commission may be
compensated at a rate not to exceed the daily equivalent of the
annual rate of basic pay in effect for a position at level IV
of the Executive Schedule under section 5315 of title 5, United
States Code, for each day during which that member is engaged
in the actual performance of the duties of the Commission.
(2) Travel expenses.--While away from their homes or
regular places of business in the performance of services for
the Commission, members of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, in
the same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703(b)
of title 5, United States Code.
(g) Nonapplicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Commission.
(h) Report of the Commission; Appearance Before and Consultations
With Congress.--
(1) Report.--On December 15, 2010, the Commission shall
submit to the President and to the Congress a report containing
the findings and conclusions of the Commission on the causes of
the current financial and economic crisis in the United States.
(2) Institution-specific reports authorized.--At the
discretion of the chairperson of the Commission, the report
under paragraph (1) may include reports or specific findings on
any financial institution examined by the Commission under
subsection (c)(2).
(3) Appearance before the congress.--The chairperson of the
Commission shall, not later than 120 days after the date of
submission of the final reports under paragraph (1), appear
before the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House
of Representatives regarding such reports and the findings of
the Commission.
(4) Consultations with the congress.--The Commission shall
consult with the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Financial Services of
the House of Representatives, and other relevant committees of
the Congress, for purposes of informing the Congress on the
work of the Commission.
(i) Termination of Commission.--
(1) In general.--The Commission, and all the authorities of
this section, shall terminate 60 days after the date on which
the final report is submitted under subsection (h).
(2) Administrative activities before termination.--The
Commission may use the 60-day period referred to in paragraph
(1) for the purpose of concluding the activities of the
Commission, including providing testimony to committees of the
Congress concerning reports of the Commission and disseminating
the final report submitted under subsection (h).
(j) Authorization of Appropriation.--There is authorized to be
appropriated to the Secretary of the Treasury such sums as are
necessary to cover the costs of the Commission.
Amend the title so as to read: ``An Act to improve
enforcement of mortgage fraud, securities and commodities
fraud, financial institution fraud, and other frauds related to
Federal assistance and relief programs, for the recovery of
funds lost to these frauds, and for other purposes.''.
Attest:
Clerk.
111th CONGRESS
1st Session
S. 386
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AMENDMENTS