[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 386 Engrossed in Senate (ES)]
111th CONGRESS
1st Session
S. 386
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--FRAUD ENFORCEMENT AND RECOVERY ACT OF 2009
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, 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 12
U.S.C. 2602(1).''.
(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 whose
activities affect interstate or foreign commerce, or any person
or entity that makes in whole or in part a federally related
mortgage loan as defined in 12 U.S.C. 2602(1)''.
(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 Assets 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) 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) 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) Making the International Money Laundering Statute Apply to Tax
Evasion.--Section 1956(a)(2)(A) of title 18, United States Code, is
amended by--
(1) inserting ``(i)'' before ``with the intent to
promote''; and
(2) adding at the end the following:
``(ii) with the intent to engage in conduct
constituting a violation of section 7201 or
7206 of the Internal Revenue Code of 1986;
or''.
SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECUTORS FOR
MORTGAGE FRAUD, SECURITIES FRAUD, AND OTHER CASES
INVOLVING FEDERAL ECONOMIC ASSISTANCE.
(a) In General.--
(1) Authorization.--There is authorized to be appropriated
to the Attorney General, to remain available until expended,
$165,000,000 for each of the fiscal years 2010 and 2011, for
the purposes of investigations, prosecutions, and civil
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 amount 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.
(B) The offices of the United States Attorneys:
$50,000,000.
(C) The criminal division of the Department of
Justice: $20,000,000.
(D) The civil division of the Department of
Justice: $15,000,000.
(E) The tax division of the Department of Justice:
$5,000,000.
(b) 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) 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) 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) Use of Funds.--The funds authorized to be appropriated under
subsections (a), (b), (c), and (d) shall be limited to cover the costs
of each listed agency or department for investigating possible
criminal, civil, or administrative violations and for prosecuting
criminal, civil, or administrative proceedings involving financial
crimes and crimes against Federal assistance programs, including
mortgage fraud, securities fraud, financial institution fraud, and
other frauds related to Federal assistance and relief programs.
(f) Report to Congress.--Following the final expenditure of all
funds appropriated under this section that were authorized by
subsections (a), (b), (c), and (d) the Attorney General, in
consultation with the United States Postal Inspection Service, the
Inspector General for the Department of Housing and Urban Development,
and the Secretary of Homeland Security, shall submit a joint report to
Congress identifying--
(1) the amounts expended under subsections (a), (b), (c),
and (d) and a certification of compliance with the requirements
listed in subsection (e); 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.
(g) 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.
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) 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
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.
SEC. 5. FINANCIAL MARKETS COMMISSION.
(a) Establishment of Commission.--There is established in the
legislative branch the Financial Markets Commission (in this section
referred to as the ``Commission'') to examine all 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) 2 members shall be appointed by the majority
leader of the Senate;
(B) 2 members shall be appointed by the Speaker of
the House of Representatives;
(C) 1 member shall be appointed by the minority
leader of the Senate;
(D) 1 member shall be appointed by the minority
leader of the House of Representatives;
(E) 1 member shall be appointed by the Chairman of
the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(F) 1 member shall be appointed by the ranking
member of the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(G) 1 member shall be appointed by the chairman of
the Committee on Financial Services of the House of
Representatives; and
(H) 1 member shall be appointed by the ranking
member of the Committee on Financial Services of the
House of Representatives.
(2) Qualifications; limitation.--
(A) In general.--Individuals appointed to the
Commission shall be United States citizens having
significant experience in such fields as banking,
regulation of markets, taxation, finance, economics 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) Initial meeting.--If, 45 days after the date of
enactment of this Act, 4 or more members of the Commission have
been appointed, those members who have been appointed may meet
and, if necessary, select a temporary Chairperson and Vice
Chairperson, who may begin the operations of the Commission,
including the hiring of staff.
(5) Quorum; vacancies.--After the initial meeting of the
Commission, the Commission shall meet upon the call of the
Chairperson or a majority of its members. Six members of the
Commission shall constitute a quorum. Any vacancy on the
Commission shall not affect its powers, but shall 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, including the role, if
any, of--
(A) fraud and abuse in the financial 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;
(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) market participant expectations that certain
institutions were ``too-big-to-fail'';
(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) Federal housing policy;
(P) derivatives and unregulated financial products
and practices;
(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;
(T) the legal and regulatory structure governing
investor protection;
(U) financial institutions and government-sponsored
enterprises;
(V) the reliance on credit ratings by Federal
financial regulators, and the use of credit ratings in
financial regulation; and
(W) 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 Department of the Treasury during the
period beginning in August 2007 through April 2009;
(3) to submit a report under subsection (g);
(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 review and build upon 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, and other legislative panels 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.
(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, 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, 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) Funding.--The Secretary of the Treasury shall provide,
out of money previously appropriated, $5,000,000 to the
Commission to carry out this section, to remain available until
expended or until termination of the Commission under
subsection (h).
(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) 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 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 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 congress.--The Commission shall
consult with the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives, and may consult with other
Committees of Congress, for purposes of informing Congress on
the work of the Commission.
(h) 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 (g).
(2) Administrative activities before termination.--The
Commission may use the 60-day period referred to in paragraph
(1) for the purpose of concluding its activities, including
providing testimony to committees of Congress concerning its
reports and disseminating the final report submitted under
subsection (g).
TITLE II--SELECT COMMITTEE ON INVESTIGATION OF THE ECONOMIC CRISIS
SEC. 201. FINDINGS.
The Senate finds the following:
(1) The United States is currently facing an unprecedented
economic crisis, with massive losses of jobs in the United
States and an alarming contraction of economic activity in the
United States.
(2) The United States Government has pledged, committed, or
loaned more than $9,000,000,000,000 as of February 2009 in an
attempt to mitigate and resolve the economic crisis and
trillions of dollars more may well be necessary before the
crisis is over.
(3) The economic crisis reaches into, and has impacted,
almost every aspect of the United States economy and
significant parts of the international economy.
(4) Any thorough and complete study and investigation of
this complex and far-reaching economic crisis will require
sustained and singular focus for many months.
(5) A study and investigation of this size and scope
implicates the jurisdiction of several Standing Committees of
the Senate and, if it is to be done correctly and timely, will
require a degree of undivided attention and resources beyond
the capacity of the Standing Committees of the Senate, which
are already over-burdened.
(6) Adding such a significant study and investigation to
the duties of the existing Standing Committees of the Senate
would make it difficult for such committees to get their
regular required work accomplished, particularly when so much
attention and so many resources are appropriately devoted to
responding to the ongoing economic crisis.
(7) Dozens of important investigations have been conducted
with the creation of a select committee of the Senate for a
specific purpose and a set time.
(8) The American public has a right to get straight answers
on how this economic crisis developed and what steps should be
taken to make sure that nothing like it happens again.
SEC. 202. SELECT COMMITTEE ON INVESTIGATION OF THE ECONOMIC CRISIS.
There is established a select committee of the Senate to be known
as the Select Committee on Investigation of the Economic Crisis
(hereafter in this title referred to as the ``Select Committee'').
SEC. 203. PURPOSE AND DUTIES.
(a) Purpose.--The purpose of the Select Committee is to study and
investigate the facts and circumstances giving rise to the current
economic crisis facing the United States and to recommend actions to be
taken to prevent a future recurrence of such a crisis.
(b) Duties.--The Select Committee is authorized and directed to do
everything necessary or appropriate to conduct the study and
investigation specified in subsection (a). Without restricting in any
way the authority conferred on the Select Committee by the preceding
sentence, the Senate further expressly authorizes and directs the
Select Committee to examine the facts and circumstances giving rise to
the current economic crisis facing the United States, and report on
such examination, regarding the following:
(1) The causes of the current economic crisis.
(2) Lessons learned from the current economic crisis.
(3) Actions to prevent a recurrence of an economic crisis
such as the current economic crisis.
SEC. 204. COMPOSITION OF SELECT COMMITTEE.
(a) Membership.--
(1) In general.--The Select Committee shall consist of 7
members of the Senate of whom--
(A) 4 members shall be appointed by the majority
leader of the Senate; and
(B) 3 members shall be appointed by the minority
leader of the Senate.
(2) Date.--The appointments of the members of the Select
Committee shall be made not later than 30 days after the date
of enactment of this title.
(b) Vacancies.--Any vacancy in the Select Committee shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(c) Service.--Service of a Senator as a member, Chair, or Vice
Chair of the Select Committee shall not be taken into account for the
purposes of paragraph (4) of rule XXV of the Standing Rules of the
Senate.
(d) Chair and Vice Chair.--The Chair of the Select Committee shall
be designated by the majority leader of the Senate, and the Vice Chair
of the Select Committee shall be designated by the minority leader of
the Senate.
(e) Quorum.--
(1) Reports and recommendations.--A majority of the members
of the Select Committee shall constitute a quorum for the
purpose of reporting a matter or recommendation to the Senate.
(2) Testimony.--One member of the Select Committee shall
constitute a quorum for the purpose of taking testimony.
(3) Other business.--A majority of the members of the
Select Committee, or \1/3\ of the members of the Select
Committee if at least one member of the minority party is
present, shall constitute a quorum for the purpose of
conducting any other business of the Select Committee.
SEC. 205. RULES AND PROCEDURES.
(a) Governance Under Standing Rules of Senate.--Except as otherwise
specifically provided in this title, the investigation, study, and
hearings conducted by the Select Committee shall be governed by the
Standing Rules of the Senate.
(b) Additional Rules and Procedures.--In addition to the provisions
of section 208(h), the Select Committee may adopt additional rules or
procedures if the Chair and the Vice Chair of the Select Committee
agree, or if the Select Committee by majority vote so decides, that
such additional rules or procedures are necessary or advisable to
enable the Select Committee to conduct the investigation, study, and
hearings authorized by this title. Any such additional rules and
procedures--
(1) shall not be inconsistent with this title or the
Standing Rules of the Senate; and
(2) shall become effective upon publication in the
Congressional Record.
SEC. 206. AUTHORITY OF SELECT COMMITTEE.
(a) In General.--The Select Committee may exercise all of the
powers and responsibilities of a committee under rule XXVI of the
Standing Rules of the Senate.
(b) Powers.--The Select Committee or, at its direction, any
subcommittee or member of the Select Committee, may, for the purpose of
carrying out this title--
(1) hold hearings;
(2) administer oaths;
(3) sit and act at any time or place during the sessions,
recess, and adjournment periods of the Senate;
(4) authorize and require, by issuance of subpoena or
otherwise, the attendance and testimony of witnesses and the
preservation and production of books, records, correspondence,
memoranda, papers, documents, tapes, and any other materials in
whatever form the Select Committee considers advisable;
(5) take testimony, orally, by sworn statement, by sworn
written interrogatory, or by deposition, and authorize staff
members to do the same; and
(6) issue letters rogatory and requests, through
appropriate channels, for any other means of international
assistance.
(c) Authorization, Issuance, and Enforcement of Subpoenas.--
(1) Authorization and issuance.--Subpoenas authorized and
issued under this section--
(A) may be done only with the joint concurrence of
the Chair and the Vice Chair of the Select Committee;
(B) shall bear the signature of the Chair or the
designee of the Chair; and
(C) shall be served by any person or class of
persons designated by the Chair for that purpose
anywhere within or without the borders of the United
States to the full extent provided by law.
(2) Enforcement.--The Select Committee may make to the
Senate by report or resolution any recommendation, including a
recommendation for criminal or civil enforcement, that the
Select Committee considers appropriate with respect to--
(A) the failure or refusal of any person to appear
at a hearing or deposition or to produce or preserve
documents or materials described in subsection (b)(4)
in obedience to a subpoena or order of the Select
Committee;
(B) the failure or refusal of any person to answer
questions truthfully and completely during the person's
appearance as a witness at a hearing or deposition of
the Select Committee; or
(C) the failure or refusal of any person to comply
with any subpoena or order issued under the authority
of subsection (b).
(d) Avoidance of Duplication.--
(1) In general.--To expedite the study and investigation,
avoid duplication, and promote efficiency under this title, the
Select Committee shall seek to--
(A) confer with other investigations into the
matters set forth in section 203(a); and
(B) access all information and materials acquired
or developed in such other investigations.
(2) Access to information and materials.--The Select
Committee shall have, to the fullest extent permitted by law,
access to any such information or materials obtained by any
other governmental department, agency, or body investigating
the matters set forth in section 203(a).
SEC. 207. REPORTS.
(a) Initial Report.--The Select Committee shall submit to the
Senate a report on the study and investigation conducted pursuant to
section 203 not later than one year after the appointment of all of the
members of the Select Committee.
(b) Updated Report.--The Select Committee shall submit an updated
report on such investigation not later than 180 days after the
submittal of the report under subsection (a).
(c) Final Report.--The Select Committee shall submit a final report
on such investigation not later than two years after the appointment of
all of the members of the Select Committee.
(d) Additional Reports.--The Select Committee may submit any
additional report or reports that the Select Committee considers
appropriate.
(e) Findings and Recommendations.--The reports under this section
shall include findings and recommendations of the Select Committee
regarding the matters considered under section 203.
(f) Disposition of Reports.--All reports made by the Select
Committee shall be submitted to the Secretary of the Senate. All
reports made by the Select Committee shall be referred to the committee
or committees that have jurisdiction over the subject matter of the
report.
SEC. 208. ADMINISTRATIVE PROVISIONS.
(a) Staff.--
(1) In general.--The Select Committee may employ in
accordance with paragraph (2) a staff composed of such
clerical, investigatory, legal, technical, and other personnel
as the Select Committee, or the Chair and the Vice Chair of the
Select Committee considers necessary or appropriate.
(2) Appointment of staff.--The staff of the Select
Committee shall consist of such personnel as the Chair and the
Vice Chair shall jointly appoint. Such staff may be removed
jointly by the Chair and the Vice Chair, and shall work under
the joint general supervision and direction of the Chair and
the Vice Chair.
(b) Compensation.--The Chair and the Vice Chair of the Select
Committee shall jointly fix the compensation of all personnel of the
staff of the Select Committee.
(c) Reimbursement of Expenses.--The Select Committee may reimburse
the members of its staff for travel, subsistence, and other necessary
expenses incurred by such staff members in the performance of their
functions for the Select Committee.
(d) Services of Senate Staff.--The Select Committee may use, with
the prior consent of the chair of any other committee of the Senate or
the chair of any subcommittee of any committee of the Senate, the
facilities of any other committee of the Senate, or the services of any
members of the staff of such committee or subcommittee, whenever the
Select Committee or the Chair of the Select Committee considers that
such action is necessary or appropriate to enable the Select Committee
to carry out its responsibilities, duties, or functions under this
title.
(e) Detail of Employees.--The Select Committee may use on a
reimbursable basis, with the prior consent of the head of the
department or agency of Government concerned and the approval of the
Committee on Rules and Administration of the Senate, the services of
personnel of such department or agency.
(f) Temporary and Intermittent Services.--The Select Committee may
procure the temporary or intermittent services of individual
consultants, or organizations thereof.
(g) Payment of Expenses.--There shall be paid out of the applicable
accounts of the Senate such sums as may be necessary for the expenses
of the Select Committee. Such payments shall be made on vouchers signed
by the Chair of the Select Committee and approved in the manner
directed by the Committee on Rules and Administration of the Senate.
Amounts made available under this subsection shall be expended in
accordance with regulations prescribed by the Committee on Rules and
Administration of the Senate.
(h) Conflicts of Interest.--The Select Committee shall issue rules
to prohibit or minimize any conflicts of interest involving its
members, staff, detailed personnel, consultants, and any others
providing assistance to the Select Committee. Such rules shall not be
inconsistent with the Code of Official Conduct of the Senate or
applicable Federal law.
SEC. 209. EFFECTIVE DATE; TERMINATION.
(a) Effective Date.--This title shall take effect on the date of
enactment of this title.
(b) Termination.--The Select Committee shall terminate three months
after the submittal of the report required by section 207(c).
Passed the Senate April 28, 2009.
Attest:
Secretary.
111th CONGRESS
1st Session
S. 386
_______________________________________________________________________
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.