[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.