111th CONGRESS 1st Session S. 386 IN THE SENATE OF THE UNITED STATES 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.
<enum>I</enum><header>Fraud Enforcement and Recovery Act of 2009</header> <section commented="no" display-inline="no-display-inline" id="id2e85f1c7-c9b3-4389-a5d9-2e1bd24ed853" section-type="section-one"><enum>1.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Fraud Enforcement and Recovery Act of 2009</short-title></quote> or <quote><short-title>FERA</short-title></quote>.</text> </section><section commented="no" display-inline="no-display-inline" id="id688d152d-a4dc-4afc-a6ea-bfe61758abd0" section-type="subsequent-section"><enum>2.</enum><header display-inline="yes-display-inline">Amendments to improve mortgage, securities, and financial fraud recovery and enforcement</header> <subsection commented="no" display-inline="no-display-inline" id="id8b886039-3e84-405c-b8e2-da69b8ebcce7"><enum>(a)</enum><header display-inline="yes-display-inline">Definition of financial institution amended To include mortgage lending business</header><text display-inline="yes-display-inline">Section 20 of title 18, United States Code, is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="idf77e3406-b10d-4c69-b686-ca5a77b85f86"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (8), by striking <quote>or</quote> after the semicolon;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd92eb85c-73a2-48d3-9bcd-cb0ca52e4de6"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (9), by striking the period and inserting <quote>; or</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id28417114-1a9e-4527-a3e2-0ceb2550ff8d"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id974206fe-3fbe-4435-b9f0-03812b02c773" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="idfc9b74c4-6dc2-43b6-9e6a-ac0d35675c75"><enum>(10)</enum><text display-inline="yes-display-inline">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).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id372716e1-f065-4e43-976f-05c64e362648"><enum>(b)</enum><header display-inline="yes-display-inline">Mortgage lending business defined</header> <paragraph commented="no" display-inline="no-display-inline" id="id23d9afcb-2251-4a6f-b532-d392137115d8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 1 of title 18, United States Code, is amended by inserting after section 26 the following:</text> <quoted-block display-inline="no-display-inline" id="idb77aa08f-202e-489f-96ee-c5b2367cd6d8" style="USC"> <section commented="no" display-inline="no-display-inline" id="id0992887b-4748-44f9-92c4-91e2f723b69f" section-type="subsequent-section"><enum>27.</enum><header display-inline="yes-display-inline">Mortgage lending business defined</header><text display-inline="no-display-inline">In this title, the term <term>mortgage lending business</term> 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.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf907d6fd-3dcb-4252-96bf-248bb01059de"><enum>(2)</enum><header display-inline="yes-display-inline">Chapter analysis</header><text display-inline="yes-display-inline">The chapter analysis for chapter 1 of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id46b9252b-c628-442c-836a-cd689eca6f62" style="USC"> <toc> <toc-entry bold="off" level="section">27. Mortgage lending business defined.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id91fd8fa0-11c3-4869-9577-c359ba5fc33b"><enum>(c)</enum><header display-inline="yes-display-inline">False statements in mortgage applications amended To include false statements by mortgage brokers and agents of mortgage lending businesses</header><text display-inline="yes-display-inline">Section 1014 of title 18, United States Code, is amended by—</text> <paragraph commented="no" display-inline="no-display-inline" id="id36297e21-09d6-4ca5-afed-c7375d3b2613"><enum>(1)</enum><text display-inline="yes-display-inline">striking <quote>or</quote> after <quote>the International Banking Act of 1978),</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idffca368e-890a-4b87-b31e-e9dcc5420a92"><enum>(2)</enum><text display-inline="yes-display-inline">inserting after <quote>section 25(a) of the Federal Reserve Act</quote> the following: <quote>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)</quote>.</text> </paragraph></subsection><subsection id="idf1204b73-94cd-4abc-9f65-55767d9fd364"><enum>(d)</enum><header>Major fraud against the government amended To include economic relief and troubled asset relief program funds</header><text>Section 1031(a) of title 18, United States Code, is amended by—</text> <paragraph id="id13c6a4e0-98e9-4246-aa4f-47d180d41000"><enum>(1)</enum><text>inserting after <quote>or promises, in</quote> the following: <quote>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</quote>;</text> </paragraph><paragraph id="id8d4b65c5-14c3-4da2-9325-ad99c3a3ad94"><enum>(2)</enum><text>striking <quote>the contract, subcontract</quote> and inserting <quote>such grant, contract, subcontract, subsidy, loan, guarantee, insurance or other form of Federal assistance,</quote>; and</text> </paragraph><paragraph id="ID9134e029a7494ef58623c737f71cb1ab"><enum>(3)</enum><text>striking <quote>for such property or services</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idf5b01272-f49c-4d96-b59f-5bbbcde6051b"><enum>(e)</enum><header display-inline="yes-display-inline">Securities fraud amended To include fraud involving options and futures in commodities</header> <paragraph commented="no" display-inline="no-display-inline" id="id79b7f0c7-4a46-436a-a1bd-aa9027aee8aa"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1348 of title 18, United States Code, is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id8ef9e360-3248-40a2-8a3b-e1a1882b4f58"><enum>(A)</enum><text display-inline="yes-display-inline">in the caption, by inserting <quote><header-in-text level="section" style="USC">and commodities</header-in-text></quote> after <quote><header-in-text level="section" style="USC">Securities</header-in-text></quote>;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5ee2b795-0731-419b-b091-45b0ed01e70a"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>any commodity for future delivery, or any option on a commodity for future delivery, or</quote> after <quote>any person in connection with</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc857aef9-56a6-4006-9026-7642418d8300"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>any commodity for future delivery, or any option on a commodity for future delivery, or</quote> after <quote>in connection with the purchase or sale of</quote>.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4b9be2ae-9277-4980-ad50-11ef989c1c54"><enum>(2)</enum><header display-inline="yes-display-inline">Chapter analysis</header><text display-inline="yes-display-inline">The item for section 1348 in the chapter analysis for chapter 63 of title 18, United States Code, is amended by inserting <quote>and commodities</quote> after <quote>Securities</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ide2c25250-fcc5-4d2b-86d2-b0174b12fc82"><enum>(f)</enum><header display-inline="yes-display-inline">Money laundering amended To define proceeds of specified unlawful activity</header> <paragraph commented="no" display-inline="no-display-inline" id="idABCF0B568B674C7C9CFA78214BB75487"><enum>(1)</enum><header display-inline="yes-display-inline">Money laundering</header><text display-inline="yes-display-inline">Section 1956(c) of title 18, United States Code, is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id35f2a4e1-19e3-4aa7-ae33-da9d770d408a"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (8), by striking the period and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6d710b2e-522f-47d1-8755-9375a4fd8e5f"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6c4243ec-3427-429a-9d06-5fe53cfca456" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="id9526e486-c26f-4029-8f8e-77c17b826d90"><enum>(9)</enum><text display-inline="yes-display-inline">the term <term>proceeds</term> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id51990F6755124BB1AC68023ADD2DA648"><enum>(2)</enum><header display-inline="yes-display-inline">Monetary transactions</header><text display-inline="yes-display-inline">Section 1957(f) of title 18, United States Code, is amended by striking paragraph (3) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE3E2AC9420024E1E95DEED2DD7D8E7B1" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="id1BF3EC011FC247829B659768C78407A0"><enum>(3)</enum><text display-inline="yes-display-inline">the terms <term>specified unlawful activity</term> and <term>proceeds</term> shall have the meaning given those terms in section 1956 of this title.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id83dd220f-ff5c-4ee6-b2f4-0fb0a6c0ccf8"><enum>(g)</enum><header display-inline="yes-display-inline">Making the international money laundering statute apply to tax evasion</header><text display-inline="yes-display-inline">Section 1956(a)(2)(A) of title 18, United States Code, is amended by—</text> <paragraph commented="no" display-inline="no-display-inline" id="idd87c8d1b-be45-46fd-9e18-a01622eef93f"><enum>(1)</enum><text display-inline="yes-display-inline">inserting <quote>(i)</quote> before <quote>with the intent to promote</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0d6890d4-2aed-4467-a136-bb4c72ec20c9"><enum>(2)</enum><text display-inline="yes-display-inline">adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id34ac2ad3-ae65-4ca6-a874-b22ff5acc3b4" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="id5c5837e7-7659-4dd6-a267-840883116f4e"><enum>(ii)</enum><text display-inline="yes-display-inline">with the intent to engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; or</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id48ddb836-ea99-49d4-ae4c-77827107c27f" section-type="subsequent-section"><enum>3.</enum><header display-inline="yes-display-inline">Additional funding for investigators and prosecutors for mortgage fraud, securities fraud, and other cases involving Federal economic assistance</header> <subsection commented="no" display-inline="no-display-inline" id="ide5d61320-21df-4ad2-80f6-287c8f3779c6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header> <paragraph commented="no" display-inline="no-display-inline" id="idc26605b9-6341-4321-842b-d05636fb0d50"><enum>(1)</enum><header display-inline="yes-display-inline">Authorization</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idcb701fce-05eb-4756-b1dd-cfb64637c3db"><enum>(2)</enum><header display-inline="yes-display-inline">Allocations</header><text display-inline="yes-display-inline">With respect to fiscal years 2010 and 2011, the amount authorized to be appropriated under paragraph (1) shall be allocated as follows:</text> <subparagraph commented="no" display-inline="no-display-inline" id="id351ce791-cc02-4119-ab9f-af3946bd30b5"><enum>(A)</enum><text display-inline="yes-display-inline">Federal Bureau of Investigation: $75,000,000 for fiscal year 2010 and $65,000,000 for fiscal year 2011.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id93cdaa4a-9902-4764-bbf5-aedffa2152aa"><enum>(B)</enum><text display-inline="yes-display-inline">The offices of the United States Attorneys: $50,000,000.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="iddcc64afc-0b2d-4011-be8e-657dc844ac56"><enum>(C)</enum><text display-inline="yes-display-inline">The criminal division of the Department of Justice: $20,000,000.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8ef2d315-92fe-4c41-97f4-0d01e31f9e1a"><enum>(D)</enum><text display-inline="yes-display-inline">The civil division of the Department of Justice: $15,000,000.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4cc8a63b-92d3-4439-9c5e-bae6c44581b7"><enum>(E)</enum><text display-inline="yes-display-inline">The tax division of the Department of Justice: $5,000,000.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2a9ef11e-73b6-4ce3-bdc4-e0194e51bb28"><enum>(b)</enum><header display-inline="yes-display-inline">Additional appropriations for the Postal Inspection Service</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id973ea141-b5d3-4e6c-a90d-b45eb2bfb419"><enum>(c)</enum><header display-inline="yes-display-inline">Additional appropriations for the inspector general for the Department of Housing and Urban Development</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id4D9156555DBE4FF7A8CC8CE9446403E8"><enum>(d)</enum><header display-inline="yes-display-inline">Additional appropriations for the United States Secret Service</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6eca8c5a-4ff0-4008-8207-410631f1ab25"><enum>(e)</enum><header display-inline="yes-display-inline">Use of funds</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id72f2c311-053f-40b3-9f06-898d17ba81f6"><enum>(f)</enum><header display-inline="yes-display-inline">Report to Congress</header><text display-inline="yes-display-inline">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—</text> <paragraph commented="no" display-inline="no-display-inline" id="id3ab12b88-20a1-4b24-af48-39ae33d80a76"><enum>(1)</enum><text display-inline="yes-display-inline">the amounts expended under subsections (a), (b), (c), and (d) and a certification of compliance with the requirements listed in subsection (e); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id264ea0fd-588a-4989-b00b-4130e84a23cd"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="idCF14ADD7B2084246B886760A283DABEB"><enum>(g)</enum><header>Additional appropriations for the Securities and Exchange Commission</header> <paragraph id="id0660F357AE6B44368BE5B008D7CC3574"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="id6B33D368E9614B27BDA04606084AD34D"><enum>(2)</enum><header>Inspector General</header><text>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.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id36026cfd-f88f-4cf1-b023-7db4799ae19b" section-type="subsequent-section"><enum>4.</enum><header display-inline="yes-display-inline">Clarifications to the False Claims Act to reflect the original intent of the law</header> <subsection commented="no" display-inline="no-display-inline" id="iddb6cfb62-582d-4823-8465-240010513e56"><enum>(a)</enum><header display-inline="yes-display-inline">Clarification of the False Claims Act</header><text display-inline="yes-display-inline">Section 3729 of title 31, United States Code, is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id182a7f64-5c2f-4384-a6e9-cbd98cd81eaa"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (a) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idbef02aff-9c2f-4735-8acd-0bcdcbbea8ce" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id8d784723-ade4-4913-9053-66a3d2866ecd"><enum>(a)</enum><header display-inline="yes-display-inline">Liability for certain acts</header> <paragraph commented="no" display-inline="no-display-inline" id="id9f903a7f-4f97-498e-a028-517b80b9cad3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to paragraph (2), any person who—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idb172ffaa-a690-478a-9f77-f4e58986688d"><enum>(A)</enum><text display-inline="yes-display-inline">knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id812cffdc-865e-4e13-bcab-690f3be4c492"><enum>(B)</enum><text display-inline="yes-display-inline">knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4b4a2d80-caba-4abd-8a95-0d739a53d93d"><enum>(C)</enum><text display-inline="yes-display-inline">conspires to commit a violation of subparagraph (A), (B), (D), (E), (F), or (G);</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id609c711f-d59a-48a4-9068-00ab29e2b306"><enum>(D)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4864f8cd-f27a-42ee-aa51-df9c265298ff"><enum>(E)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id823cf115-623c-4d41-a0d0-1bbf5212d37c"><enum>(F)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd6a71a7d-6104-4b14-b064-03aab649fbae"><enum>(G)</enum><text display-inline="yes-display-inline">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,</text> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id21b35a45-5518-488b-a65a-4003ab1aebd4"><enum>(2)</enum><header display-inline="yes-display-inline">Reduced damages</header><text display-inline="yes-display-inline">If the court finds that—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idc7a4055c-f7e4-43ea-a7c3-77b0bbdb243d"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41a0f250-9ab8-479e-8edc-7348a863467c"><enum>(B)</enum><text display-inline="yes-display-inline">such person fully cooperated with any Government investigation of such violation; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide52a1347-5b76-4d54-bf99-c14c0f4de7f1"><enum>(C)</enum><text display-inline="yes-display-inline">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,</text> </subparagraph><continuation-text commented="no" continuation-text-level="paragraph">the court may assess not less than 2 times the amount of damages which the Government sustains because of the act of that person.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id55c8d5ce-dfc6-4e7b-9a75-45929334094f"><enum>(3)</enum><header display-inline="yes-display-inline">Costs of civil actions</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3aba68c4-0a8c-442a-94fe-0d864c5e91f0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsections (b) and (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id2a5f783d-b64b-4aa6-9e23-0c43125ccf10" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id6437fdcd-5fc0-4d76-91d4-38d32eb78a58"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="id67a3bb71-72d6-4bd4-8622-d6e9e313f613"><enum>(1)</enum><text display-inline="yes-display-inline">the terms <term>knowing</term> and <term>knowingly</term>—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idE5A06FAA1DA044E894A80E6960EF1452"><enum>(A)</enum><text display-inline="yes-display-inline">mean that a person, with respect to information—</text> <clause commented="no" display-inline="no-display-inline" id="id12b38531-6e50-4e56-b415-537755609319"><enum>(i)</enum><text display-inline="yes-display-inline">has actual knowledge of the information;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id92445333-e37d-4a80-ab3e-40b2ded06e93"><enum>(ii)</enum><text display-inline="yes-display-inline">acts in deliberate ignorance of the truth or falsity of the information; or</text> </clause><clause commented="no" display-inline="no-display-inline" id="idadac01ac-67b3-4929-b134-125840298ea0"><enum>(iii)</enum><text display-inline="yes-display-inline">acts in reckless disregard of the truth or falsity of the information; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFD3311BAA1DE4CE590029B3EF14759AB"><enum>(B)</enum><text display-inline="yes-display-inline">require no proof of specific intent to defraud;</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd1ceee2d-bdd3-4100-8c31-f9c34ccd94bc"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>claim</term>—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id78739fd7-5e22-4afb-8f67-72dca0e8b4e2"><enum>(A)</enum><text display-inline="yes-display-inline">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—</text> <clause commented="no" display-inline="no-display-inline" id="idffbf54c4-d468-4a3e-84f4-1392965484fd"><enum>(i)</enum><text display-inline="yes-display-inline">is presented to an officer, employee, or agent of the United States; or</text> </clause><clause commented="no" display-inline="no-display-inline" id="id9f9df3c5-a069-4437-9ac3-81c1eb9afd31"><enum>(ii)</enum><text display-inline="yes-display-inline">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—</text> <subclause commented="no" display-inline="no-display-inline" id="id50d0f1b7-018f-4dd7-9fd6-8d1bb36e3272"><enum>(I)</enum><text display-inline="yes-display-inline">provides or has provided any portion of the money or property requested or demanded; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idc1dc1363-152d-4e4f-a7db-411c62552aaa"><enum>(II)</enum><text display-inline="yes-display-inline">will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded; and</text> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id20ab5d20-d496-4040-afe1-f73ffad6ea50"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph></paragraph><paragraph id="IDdb8f6442605c4fc68ceaefe02e473889"><enum>(3)</enum><text>the term <quote>obligation</quote> 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</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCFB21FC711004C13847DE6259428C46C"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>material</term> means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property.</text> </paragraph></subsection><after-quoted-block>; </after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0d473afc-e074-4d39-a00e-ed9f8d95373a"><enum>(3)</enum><text display-inline="yes-display-inline">by redesignating subsections (d) and (e) as subsections (c) and (d), respectively; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6334bcf5-72d0-4912-95f5-0e3ef4706bf6"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (c), as redesignated, by striking <quote>subparagraphs (A) through (C) of subsection (a)</quote> and inserting <quote>subsection (a)(2)</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7518327155064043ADC5E6677E82AE75"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date and application</header><text display-inline="yes-display-inline">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.</text> </subsection></section><section id="idA4BFB86372234841A54C154C35CCE249"><enum>5.</enum><header>Financial Markets Commission</header> <subsection id="ID147DAEAEDAD8404B86D087B1AA188CCC"><enum>(a)</enum><header>Establishment of Commission</header><text display-inline="yes-display-inline">There is established in the legislative branch the Financial Markets Commission (in this section referred to as the <quote>Commission</quote>) to examine all causes, domestic and global, of the current financial and economic crisis in the United States.</text> </subsection><subsection id="ID573F65237B8A47E8B4C627F31EFAB2D8"><enum>(b)</enum><header>Composition of the Commission</header> <paragraph id="IDF28C80FD7A6841D8AC0061295714A0AD"><enum>(1)</enum><header>Members</header><text>The Commission shall be composed of 10 members, of whom—</text> <subparagraph id="id40B7A53751A840BC8C362591591258B0"><enum>(A)</enum><text>2 members shall be appointed by the majority leader of the Senate;</text> </subparagraph><subparagraph id="ID9CB6977888304F6D971EAB7DF739B812"><enum>(B)</enum><text>2 members shall be appointed by the Speaker of the House of Representatives;</text> </subparagraph><subparagraph id="ID3BB30EAA90B144998EEC8C47B3EB1BBE"><enum>(C)</enum><text>1 member shall be appointed by the minority leader of the Senate;</text> </subparagraph><subparagraph id="ID1A4687F92E174AA5008CF2CDE6BA352E"><enum>(D)</enum><text>1 member shall be appointed by the minority leader of the House of Representatives;</text> </subparagraph><subparagraph id="idF104F79F12A94444928158395905FE82"><enum>(E)</enum><text>1 member shall be appointed by the Chairman of the Committee on Banking, Housing, and Urban Affairs of the Senate;</text> </subparagraph><subparagraph id="id63260BD44D1D44BAB91CCF18650D520A"><enum>(F)</enum><text>1 member shall be appointed by the ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate;</text> </subparagraph><subparagraph id="id2E286D29570E481AB81E3DBBAD317642"><enum>(G)</enum><text>1 member shall be appointed by the chairman of the Committee on Financial Services of the House of Representatives; and</text> </subparagraph><subparagraph id="id8A7C73ADBFE44F8E81B7DAC2F8F8A1EC"><enum>(H)</enum><text>1 member shall be appointed by the ranking member of the Committee on Financial Services of the House of Representatives.</text> </subparagraph></paragraph><paragraph commented="no" id="ID5F85AC3B87904FB4A27412E4847D688E"><enum>(2)</enum><header>Qualifications; limitation</header> <subparagraph commented="no" id="idC6C4026C43CB4E94A131F56942448FB4"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" id="idD82C3611433741FBA3324B5F1B10753F"><enum>(B)</enum><header>Limitation</header><text>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.</text> </subparagraph></paragraph><paragraph commented="no" id="ID40B71D1A1AAF4B7E89CE02CAF4F11C21"><enum>(3)</enum><header>Chairperson; Vice Chairperson</header> <subparagraph commented="no" id="IDEEB4648624AA42B1B8C7E5528864F511"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" id="ID353337699FB641C98B9EF82B97A544F3"><enum>(B)</enum><header>Political party affiliation</header><text>The Chairperson and Vice Chairperson of the Commission may not be from the same political party.</text> </subparagraph></paragraph><paragraph commented="no" id="ID7188B2C6C4504DF1BDD775B891F3A29B"><enum>(4)</enum><header>Initial meeting</header><text>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.</text> </paragraph><paragraph commented="no" id="ID61F8B208C1A44F43BB0111EEAA5B86D9"><enum>(5)</enum><header>Quorum; vacancies</header><text>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.</text> </paragraph></subsection><subsection id="ID52A4A8BF54374ED2B08B964F26399CCD"><enum>(c)</enum><header>Functions of the Commission</header><text display-inline="yes-display-inline">The functions of the Commission are—</text> <paragraph id="IDbf43d53fd88c44ad9bdde2a46bc8eb1b"><enum>(1)</enum><text>to examine the causes of the current financial and economic crisis in the United States, including the role, if any, of—</text> <subparagraph id="IDa2bf151aef99480487d1b0f640c90a59"><enum>(A)</enum><text>fraud and abuse in the financial sector;</text> </subparagraph><subparagraph id="id4B4285B159314D7C8755D2ADA1254178"><enum>(B)</enum><text>Federal and State financial regulators, including the extent to which they enforced, or failed to enforce statutory, regulatory, or supervisory requirements;</text> </subparagraph><subparagraph id="IDe31bc1556fb4412594d7b3f91f290084"><enum>(C)</enum><text>the global imbalance of savings, international capital flows, and fiscal imbalances of various governments;</text> </subparagraph><subparagraph id="IDd64fc9f3c6e24f1caaa6af1424bc7f03"><enum>(D)</enum><text>monetary policy and the availability and terms of credit;</text> </subparagraph><subparagraph id="IDc8752c0d7c6841baab1c70a476e65a9d"><enum>(E)</enum><text>accounting practices, including, mark-to-market and fair value rules, and treatment of off-balance sheet vehicles;</text> </subparagraph><subparagraph id="IDb1a53098c0c44439b8e980ae89af475a"><enum>(F)</enum><text>tax treatment of financial products and investments;</text> </subparagraph><subparagraph id="ID33fea1dca371445895c10a5fa07cf4ba"><enum>(G)</enum><text>capital requirements and regulations on leverage and liquidity, including the capital structures of regulated and non-regulated financial entities;</text> </subparagraph><subparagraph id="ID661590a5f5e04b82a43f439385fed530"><enum>(H)</enum><text>credit rating agencies;</text> </subparagraph><subparagraph id="IDc15b50dc804c434fb6902ea7d1110f0c"><enum>(I)</enum><text>lending practices and securitization, including the originate-to-distribute model for extending credit and transferring risk;</text> </subparagraph><subparagraph id="ID1c9a65b52b0a45cb88169a160bcafab8"><enum>(J)</enum><text>affiliations between insured depository institutions and securities, insurance, and other types of nonbanking companies;</text> </subparagraph><subparagraph id="IDc669236f0f6f403887aa25171dc8c88f"><enum>(K)</enum><text>market participant expectations that certain institutions were <quote>too-big-to-fail</quote>;</text> </subparagraph><subparagraph id="ID088e8933bc4f4ed5a232435cf9b84cc1"><enum>(L)</enum><text>corporate governance, including the impact of company conversions from partnerships to corporations;</text> </subparagraph><subparagraph id="ID0ddb665eda114b0282af20e61a5cf557"><enum>(M)</enum><text>compensation structures;</text> </subparagraph><subparagraph id="ID68682ef2753a46eebb964695aa49fcd6"><enum>(N)</enum><text>changes in compensation for employees of financial companies, as compared to compensation for others with similar skill sets in the labor market;</text> </subparagraph><subparagraph id="IDca93424741ab49e4a8a9b221382b4d20"><enum>(O)</enum><text>Federal housing policy;</text> </subparagraph><subparagraph id="IDfdd77eaa00e24933852c25878c11d4b0"><enum>(P)</enum><text>derivatives and unregulated financial products and practices;</text> </subparagraph><subparagraph id="IDb7b7c608ee6c48d2a71fe6e7a5de347d"><enum>(Q)</enum><text>short-selling;</text> </subparagraph><subparagraph id="ID81acdefceec145198192999ff4320778"><enum>(R)</enum><text>financial institution reliance on numerical models, including risk models and credit ratings;</text> </subparagraph><subparagraph id="IDa1e28ab381c94f008a8baa5d3f3bceed"><enum>(S)</enum><text>the legal and regulatory structure governing financial institutions;</text> </subparagraph><subparagraph id="ID7a53a3e0f7ac4fe7aca24a6958d27b74"><enum>(T)</enum><text>the legal and regulatory structure governing investor protection;</text> </subparagraph><subparagraph id="IDc7f934b4396c41f6868127f8d2c07267"><enum>(U)</enum><text>financial institutions and government-sponsored enterprises;</text> </subparagraph><subparagraph id="ID3c28d5c232b5449796dc06832879d8f6"><enum>(V)</enum><text>the reliance on credit ratings by Federal financial regulators, and the use of credit ratings in financial regulation; and</text> </subparagraph><subparagraph id="ID1e0cba358a94432a822b5ab486823228"><enum>(W)</enum><text>the quality of due diligence undertaken by financial institutions;</text> </subparagraph></paragraph><paragraph id="ID6c1bd4e6ae394e44a799d6185ba3ffc4"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="id5194C9388F184130AC94A9AFE044D377"><enum>(3)</enum><text>to submit a report under subsection (g);</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0671395A4CB8485F8C3F9ED8B1FE596E"><enum>(4)</enum><text>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</text> </paragraph><paragraph id="IDd268865e0fd44506b7b6aa7487677ecf"><enum>(5)</enum><text>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.</text> </paragraph></subsection><subsection id="ID313FA0D120834791A43F182EC8805CCA"><enum>(d)</enum><header>Powers of the Commission</header> <paragraph id="ID34A6635B5A7F44D9996EEA201B1283B4"><enum>(1)</enum><header>Hearings and evidence</header><text>The Commission may, for purposes of carrying out this section—</text> <subparagraph id="ID6799544332674B0089A5CC8E55B7CBC5"><enum>(A)</enum><text>hold hearings, sit and act at times and places, take testimony, receive evidence, and administer oaths; and</text> </subparagraph><subparagraph id="ID3D0EE617AEEA4E2DA4A97759B15E7513"><enum>(B)</enum><text>require, by subpoena or otherwise, the attendance and testimony of witnesses and the production of books, records, correspondence, memoranda, papers, and documents.</text> </subparagraph></paragraph><paragraph id="ID124905A23C05490B91615BB9CE32FA63"><enum>(2)</enum><header>Subpoenas</header> <subparagraph id="IDB3F6C18C05E4429C9B713D7232F8842E"><enum>(A)</enum><header>Service</header><text>Subpoenas issued under paragraph (1)(B) may be served by any person designated by the Commission.</text> </subparagraph><subparagraph id="IDA18EDDD0CF944081A28E4EFA1FBB1BC8"><enum>(B)</enum><header>Enforcement</header> <clause id="IDC715CE1FA49544299E101315FC658735"><enum>(i)</enum><header>In general</header><text>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.</text> </clause><clause id="IDAF1F6C1E982643A9A5E2E735B531AC3B"><enum>(ii)</enum><header>Additional enforcement</header><text>Sections 102 through 104 of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/2/192">2 U.S.C. 192</external-xref> 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.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="ID957A93FCEEE74D33B3A825A6C7A2C310"><enum>(3)</enum><header>Contracting</header><text>The Commission may enter into contracts to enable the Commission to discharge its duties under this section.</text> </paragraph><paragraph commented="no" id="IDF8384C1D0D5247CAB4D8734138C979FF"><enum>(4)</enum><header>Information from Federal agencies and other entities</header> <subparagraph commented="no" id="idB5D33FAD2E75433D81208B40996CE023"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph commented="no" id="id7185A385AAD847718D8420D671BFA896"><enum>(B)</enum><header>Other entities</header><text>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.</text> </subparagraph></paragraph><paragraph commented="no" id="idB35A34ABCBFA42869EEA026B1464AD3C"><enum>(5)</enum><header>Funding</header><text>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).</text> </paragraph><paragraph commented="no" id="ID34D63D5B00DD49EF8800F096C49562BC"><enum>(6)</enum><header>Donations of goods and services</header><text>The Commission may accept, use, and dispose of gifts or donations of services or property.</text> </paragraph><paragraph commented="no" id="ID2DA2C88797964A86889D38FAB3071F2F"><enum>(7)</enum><header>Postal services</header><text>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.</text> </paragraph><paragraph commented="no" id="ID1948F770635E472CA03D786F390560E0"><enum>(8)</enum><header>Powers of subcommittees, members, and agents</header><text>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.</text> </paragraph></subsection><subsection id="ID25A58B47CD424840A62D7DDA8D14BA77"><enum>(e)</enum><header>Staff of the Commission</header> <paragraph id="IDE368BF68DEED4111B82E68144157E6F4"><enum>(1)</enum><header>Director</header><text>The Commission shall have a Director who shall be appointed by the Chairperson and the Vice Chairperson, acting jointly.</text> </paragraph><paragraph id="id7F5634BE3CBF488FB568B1CEF4EFCA45"><enum>(2)</enum><header>Staff</header><text>The Chairperson and the Vice Chairperson may jointly appoint additional personnel, as may be necessary, to enable the Commission to carry out its functions.</text> </paragraph><paragraph id="ID9219AC8FCF69446A972EA8CA26D4489D"><enum>(3)</enum><header>Applicability of certain civil service laws</header><text>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.</text> </paragraph><paragraph id="IDA10B48B67D25461A8E007D06F1EDEA82"><enum>(4)</enum><header>Detailees</header><text>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.</text> </paragraph><paragraph id="IDC7E2961968C24068A64F8C8D825F553E"><enum>(5)</enum><header>Consultant services</header><text>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.</text> </paragraph></subsection><subsection id="ID73641FE300364B77A9D4476FBEA7CF38"><enum>(f)</enum><header>Compensation and travel expenses</header> <paragraph id="IDE353024E3C5148C8BFD936E7FA34E631"><enum>(1)</enum><header>Compensation</header><text>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.</text> </paragraph><paragraph id="ID68AF40747F8342D780FCDBE0962EC848"><enum>(2)</enum><header>Travel expenses</header><text>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.</text> </paragraph></subsection><subsection id="IDB351466EA55144F7A5962ED2032331A2"><enum>(g)</enum><header>Report of the Commission; appearance before and consultations with Congress</header> <paragraph id="ID1505DD77B06F42C0A2188C3DAB79D0AF"><enum>(1)</enum><header>Report</header><text>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.</text> </paragraph><paragraph id="idAB52A964AF854721BCD55D035BBC43D2"><enum>(2)</enum><header>Institution-specific reports authorized</header><text>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).</text> </paragraph><paragraph id="id45BF7A969EB14D33BF891FEE99F8F14C"><enum>(3)</enum><header>Appearance before Congress</header><text>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.</text> </paragraph><paragraph id="ID9fc61d060dc74ece87fd655018cbcf34"><enum>(4)</enum><header>Consultations with Congress</header><text>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.</text> </paragraph></subsection><subsection id="IDA25A3E3945BF4B7AB2CFE8B1B5177161"><enum>(h)</enum><header>Termination of Commission</header> <paragraph id="ID83017B3BFFEC4994970469358B13B3C7"><enum>(1)</enum><header>In general</header><text>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).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9581E3ECB2D545558D1D439CAE1C00E1"><enum>(2)</enum><header>Administrative activities before termination</header><text>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).</text> </paragraph></subsection></section><enum>II</enum><header>Select Committee on Investigation of the Economic Crisis</header> <section id="idF613212FEBFA401C95B71C36596B75FD"><enum>201.</enum><header>Findings</header><text display-inline="no-display-inline">The Senate finds the following:</text> <paragraph id="id80DA42B2FE7042438E11B1E6D24BF123"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="idF3FB0908C4D342E89A9618EC759C9FD9"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="id334BF8FE43B0447A89B3848F32874179"><enum>(3)</enum><text>The economic crisis reaches into, and has impacted, almost every aspect of the United States economy and significant parts of the international economy.</text> </paragraph><paragraph id="id4361655029CA4808A9D6C10E46393C1C"><enum>(4)</enum><text>Any thorough and complete study and investigation of this complex and far-reaching economic crisis will require sustained and singular focus for many months.</text> </paragraph><paragraph id="idDC032D3258A54768851D100EEA05C962"><enum>(5)</enum><text>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.</text> </paragraph><paragraph id="id11AA376D8B2540B08F3F5E537A82F1BF"><enum>(6)</enum><text>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.</text> </paragraph><paragraph id="id708451EF22624E488DFCA9B8C0873727"><enum>(7)</enum><text>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.</text> </paragraph><paragraph id="id19073428848C4BC0B4B66DAD1640E8E6"><enum>(8)</enum><text>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.</text> </paragraph></section><section id="id1B007BB2278544F49442C568A173540F" section-type="subsequent-section"><enum>202.</enum><header>Select Committee on Investigation of the Economic Crisis</header><text display-inline="no-display-inline">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 <quote>Select Committee</quote>).</text> </section><section id="ID864c3e6ede564c288ab194ab2e94c787"><enum>203.</enum><header>Purpose and duties</header> <subsection id="ID4a161fb66ac94805a7d86794482b7aa9"><enum>(a)</enum><header>Purpose</header><text>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.</text> </subsection><subsection id="ID2ba62a0ba46744e4bacf0cdc2c0ac760"><enum>(b)</enum><header>Duties</header><text>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:</text> <paragraph id="idF52D81BD91C241598EC082407C3E5D85"><enum>(1)</enum><text>The causes of the current economic crisis.</text> </paragraph><paragraph id="IDb6bde2385be241ed8be822cbdee7a730"><enum>(2)</enum><text>Lessons learned from the current economic crisis.</text> </paragraph><paragraph id="IDb27adf94abb24d6cb0e28354e06fba40"><enum>(3)</enum><text>Actions to prevent a recurrence of an economic crisis such as the current economic crisis.</text> </paragraph></subsection></section><section id="IDEB1D2514B03D40F8AFC9C30C4CBE1B61"><enum>204.</enum><header>Composition of Select Committee</header> <subsection id="ID9A44C3B95933422B9A4F20EDD1C95EBE"><enum>(a)</enum><header>Membership</header> <paragraph id="IDE8DB200A7B904966A8B3769CB103877D"><enum>(1)</enum><header>In general</header><text>The Select Committee shall consist of 7 members of the Senate of whom—</text> <subparagraph id="IDC30DB2B2F15F4B259E1D3DB3B7AD7B97"><enum>(A)</enum><text>4 members shall be appointed by the majority leader of the Senate; and</text> </subparagraph><subparagraph id="IDC808451483F04BA3ABF6CFD0DFB79FF1"><enum>(B)</enum><text>3 members shall be appointed by the minority leader of the Senate.</text> </subparagraph></paragraph><paragraph id="ID24ABDDF91E244455AA880129B17CBAC7"><enum>(2)</enum><header>Date</header><text>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.</text> </paragraph></subsection><subsection id="IDB6AB8089D3804267BA9AEDDF4FA50F45"><enum>(b)</enum><header>Vacancies</header><text>Any vacancy in the Select Committee shall not affect its powers, but shall be filled in the same manner as the original appointment.</text> </subsection><subsection id="ID694F00DC766547B0B32665A96E4E9BA2"><enum>(c)</enum><header>Service</header><text>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.</text> </subsection><subsection id="IDA8E829CE6F4A4BA58A277CB41032BEDC"><enum>(d)</enum><header>Chair and Vice Chair</header><text>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.</text> </subsection><subsection id="IDEE0018CA11F34E6DB3E1DF456FEE0E85"><enum>(e)</enum><header>Quorum</header> <paragraph id="ID4B611867721E4C779DEBCE7AF52D29D9"><enum>(1)</enum><header>Reports and recommendations</header><text>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.</text> </paragraph><paragraph id="ID9D6E798C763A44A8B671EA99FC9E1491"><enum>(2)</enum><header>Testimony</header><text>One member of the Select Committee shall constitute a quorum for the purpose of taking testimony.</text> </paragraph><paragraph id="IDA4BFC7DB15F741BBBAEFA660CF45E968"><enum>(3)</enum><header>Other business</header><text>A majority of the members of the Select Committee, or <fraction>1/3</fraction> 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.</text> </paragraph></subsection></section><section id="ID8192E925DCF64E789FED25265BA86CCC"><enum>205.</enum><header>Rules and procedures</header> <subsection id="ID8209E50093C64724A3DD945B73068E83"><enum>(a)</enum><header>Governance Under Standing Rules of Senate</header><text>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.</text> </subsection><subsection id="ID92132E2D4A5441E6A1C4833D1AAE4C37"><enum>(b)</enum><header>Additional Rules and Procedures</header><text>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—</text> <paragraph id="ID490B09D34E3A41BD8BB4AC8B7C00EDE3"><enum>(1)</enum><text>shall not be inconsistent with this title or the Standing Rules of the Senate; and</text> </paragraph><paragraph id="ID96E9D8E636184BFA9F63C3A5CF78DF2F"><enum>(2)</enum><text>shall become effective upon publication in the Congressional Record.</text> </paragraph></subsection></section><section id="ID1FDFEB1F73734D5DA0C268BBE5F121CF"><enum>206.</enum><header>Authority of Select Committee</header> <subsection id="ID35FD7B4F592B4A1B91AB349E795BEAC9"><enum>(a)</enum><header>In General</header><text>The Select Committee may exercise all of the powers and responsibilities of a committee under rule XXVI of the Standing Rules of the Senate.</text> </subsection><subsection id="ID4234557571BD4B958006B538D648A3CA"><enum>(b)</enum><header>Powers</header><text>The Select Committee or, at its direction, any subcommittee or member of the Select Committee, may, for the purpose of carrying out this title—</text> <paragraph id="id4C246D2E8EB0483AAF6A6F8B148D0ADE"><enum>(1)</enum><text>hold hearings;</text> </paragraph><paragraph id="id4D9B243C922C4F3AA6F5B722CF526649"><enum>(2)</enum><text>administer oaths;</text> </paragraph><paragraph id="idBA18729435DC4F768534922DC4439794"><enum>(3)</enum><text>sit and act at any time or place during the sessions, recess, and adjournment periods of the Senate;</text> </paragraph><paragraph id="id4A4AE4BA537D4735AF6B9F232656685F"><enum>(4)</enum><text>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;</text> </paragraph><paragraph id="idEBEA0E612C9D4979AFAAAAC41577D6A8"><enum>(5)</enum><text>take testimony, orally, by sworn statement, by sworn written interrogatory, or by deposition, and authorize staff members to do the same; and</text> </paragraph><paragraph id="idFD311342478C41249F4BD6368795A375"><enum>(6)</enum><text>issue letters rogatory and requests, through appropriate channels, for any other means of international assistance.</text> </paragraph></subsection><subsection id="ID0527571E63CD4972B42A096A57721C13"><enum>(c)</enum><header>Authorization, issuance, and enforcement of subpoenas</header> <paragraph id="ID8934D0F0CFB24BF79F6FC1ADDB6BC73F"><enum>(1)</enum><header>Authorization and issuance</header><text>Subpoenas authorized and issued under this section—</text> <subparagraph id="idDFD300DA40F948A7B1FAB7224EF6FA2D"><enum>(A)</enum><text>may be done only with the joint concurrence of the Chair and the Vice Chair of the Select Committee;</text> </subparagraph><subparagraph id="id06A0DE6977AD455792BC993D18BB8C6B"><enum>(B)</enum><text>shall bear the signature of the Chair or the designee of the Chair; and</text> </subparagraph><subparagraph id="idDA6B6CF39B784DD1887B8765DDECA77E"><enum>(C)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="ID533D923B6BC94DB5A743E2A5C2D8DA36"><enum>(2)</enum><header>Enforcement</header><text>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—</text> <subparagraph id="idDF4C971A1EBE410BA2111CC83175D447"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="id4144A8C7B8D54888B1B01742AE0DF335"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="id805B5FCB172D45B595A0A8229C5013A1"><enum>(C)</enum><text>the failure or refusal of any person to comply with any subpoena or order issued under the authority of subsection (b).</text> </subparagraph></paragraph></subsection><subsection id="idA2ADA79A468C44A6AF079406463F0EFB"><enum>(d)</enum><header>Avoidance of duplication</header> <paragraph id="idED38FD50DE9F47958DBFA1F9C51A4A9D"><enum>(1)</enum><header>In general</header><text>To expedite the study and investigation, avoid duplication, and promote efficiency under this title, the Select Committee shall seek to—</text> <subparagraph id="id22191F967D474240B6244A013A5BD110"><enum>(A)</enum><text>confer with other investigations into the matters set forth in section 203(a); and</text> </subparagraph><subparagraph id="id4F03887C39FB4D8A8947D9989BA89F7E"><enum>(B)</enum><text>access all information and materials acquired or developed in such other investigations.</text> </subparagraph></paragraph><paragraph id="id9717AFF962384AED82A0827C8D2E8F9E"><enum>(2)</enum><header>Access to information and materials</header><text>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).</text> </paragraph></subsection></section><section id="IDC58523A1E4AD4861BA80F767827B09C2"><enum>207.</enum><header>Reports</header> <subsection id="IDF7363D12FBFA457A9F7EFAB76CF488AA"><enum>(a)</enum><header>Initial Report</header><text>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.</text> </subsection><subsection id="IDF15D14BE006E414F8ECA8ABBEA8151A4"><enum>(b)</enum><header>Updated Report</header><text>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).</text> </subsection><subsection id="idE10273B72DA0496EAC6099DA0C26206A"><enum>(c)</enum><header>Final report</header><text>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.</text> </subsection><subsection id="ID58ED395F1EC74AE9B36793E41CACE86E"><enum>(d)</enum><header>Additional Reports</header><text>The Select Committee may submit any additional report or reports that the Select Committee considers appropriate.</text> </subsection><subsection id="ID8961A882FA80436F940D1DD539A644F4"><enum>(e)</enum><header>Findings and Recommendations</header><text>The reports under this section shall include findings and recommendations of the Select Committee regarding the matters considered under section 203.</text> </subsection><subsection id="ID6D688EB1474E4015BC1D18F6A4BA6841"><enum>(f)</enum><header>Disposition of Reports</header><text>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.</text> </subsection></section><section id="ID4BECA5E4F6DA44F69FDADB1D7DF31294"><enum>208.</enum><header>Administrative provisions</header> <subsection id="IDF62ED0A6698D411F9685C60FE0E0A8AD"><enum>(a)</enum><header>Staff</header> <paragraph id="ID8E26513E16694AAABD3E4108E0B0E717"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="IDFA62DE7ED9644305913051893D0CD9FB"><enum>(2)</enum><header>Appointment of staff</header><text>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.</text> </paragraph></subsection><subsection id="ID7D9F9E5FA8C545B28370438547E8FAB7"><enum>(b)</enum><header>Compensation</header><text>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.</text> </subsection><subsection id="ID683F30D17FE840D88FE2B91CB638974F"><enum>(c)</enum><header>Reimbursement of Expenses</header><text>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.</text> </subsection><subsection id="id6076C689F9EF4076A2C3F33226B246AB"><enum>(d)</enum><header>Services of Senate staff</header><text>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.</text> </subsection><subsection id="id185BBD0A23E846C69C7932FF3E4712A4"><enum>(e)</enum><header>Detail of employees</header><text>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.</text> </subsection><subsection id="id7A3235557DCA45FA99AAF9BB35404A32"><enum>(f)</enum><header>Temporary and intermittent services</header><text>The Select Committee may procure the temporary or intermittent services of individual consultants, or organizations thereof.</text> </subsection><subsection id="ID5174EDEE420A47848D42011F71AB4535"><enum>(g)</enum><header>Payment of Expenses</header><text>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.</text> </subsection><subsection id="IDeb76f227425c4461b4178fdee3ea60aa"><enum>(h)</enum><header>Conflicts of interest</header><text>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.</text> </subsection></section><section id="id54F7CFAB648D4C20A74DDDF9452925C6"><enum>209.</enum><header>Effective date; termination</header> <subsection id="id26EB427EBDA24E629E3402F2E6004A83"><enum>(a)</enum><header>Effective date</header><text>This title shall take effect on the date of enactment of this title.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id3628A6B802264CF892ADC92B35D8FA33"><enum>(b)</enum><header>Termination</header><text display-inline="yes-display-inline">The Select Committee shall terminate three months after the submittal of the report required by section 207(c).</text> </subsection></section> Passed the Senate April 28, 2009. Secretary