[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 344 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 344

To amend the Federal Reserve Act to remove the power of Federal reserve 
  banks to buy and sell municipal securities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 19, 2011

Mr. Neugebauer introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Reserve Act to remove the power of Federal reserve 
  banks to buy and sell municipal securities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fiscal Responsibility Effective 
Enforcement Act of 2011'' or the ``FREE Act of 2011''.

SEC. 2. REMOVAL OF POWER TO BUY AND SELL MUNICIPAL SECURITIES.

    (a) In General.--Section 14(b)(1) of the Federal Reserve Act is 
amended by striking ``and bills, notes, revenue bonds, and warrants 
with a maturity from date of purchase of not exceeding six months, 
issued in anticipation of the collection of taxes or in anticipation of 
the receipt of assured revenues by any State, county, district, 
political subdivision, or municipality in the continental United 
States, including irrigation, drainage and reclamation districts,''.
    (b) Transition Rule.--Notwithstanding the amendment made by 
subsection (a), a Federal reserve bank shall have the power to sell any 
bills, notes, revenue bonds, or warrants described in the language 
struck by such amendment, if such bills, notes, revenue bonds, or 
warrants are held by the Federal reserve bank on the date of the 
enactment of this Act.
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