[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4586 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4586

 To amend the CARES Act to require the uniform treatment of nationally 
  recognized statistical rating organizations under certain programs 
   carried out in response to the COVID-19 emergency, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 16, 2020

Mr. Scott of South Carolina (for himself and Ms. Sinema) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the CARES Act to require the uniform treatment of nationally 
  recognized statistical rating organizations under certain programs 
   carried out in response to the COVID-19 emergency, 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 ``Access to Emergency Credit 
Facilities Act of 2020''.

SEC. 2. UNIFORM TREATMENT OF NRSROS.

    (a) In General.--Section 4003 of the CARES Act (15 U.S.C. 9042) is 
amended by adding at the end the following:
    ``(i) Uniform Treatment of NRSROS.--
            ``(1) Definition.--In this subsection, the term `nationally 
        recognized statistical rating organization' has the meaning 
        given the term in section 3(a) of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78c(a)).
            ``(2) Treatment.--Subject to paragraph (3), if, in carrying 
        out this section or any other program making use of a facility 
        established under section 13(3) of the Federal Reserve Act (12 
        U.S.C. 343(3)) in response to COVID-19, the Secretary or the 
        Board of Governors of the Federal Reserve System establishes a 
        requirement for an entity, security, or other instrument to 
        carry a minimum credit rating, the Secretary or the Board of 
        Governors--
                    ``(A) may not require that the credit rating with 
                respect to that entity, security, or other instrument 
                be issued by any specific--
                            ``(i) nationally recognized statistical 
                        rating organization; or
                            ``(ii) category or class of nationally 
                        recognized statistical rating organizations; 
                        and
                    ``(B) shall accept a credit rating that is issued, 
                before or during the operation of a program authorized 
                under this section or section 13(3) of the Federal 
                Reserve Act (12 U.S.C. 343(3)) in response to COVID-19, 
                by any nationally recognized statistical rating 
                organization that the Securities and Exchange 
                Commission has approved to issue a rating for that 
                entity, security, or other instrument.
            ``(3) Exclusion.--
                    ``(A) In general.--The Secretary or the Board of 
                Governors may exclude a nationally recognized 
                statistical rating organization from the application of 
                paragraph (2) if, in consultation with the Securities 
                and Exchange Commission, the Secretary or Board of 
                Governors, as applicable, determines that--
                            ``(i) the nationally recognized statistical 
                        rating organization is unable to provide 
                        reliable and accurate ratings with respect to a 
                        particular asset class; and
                            ``(ii) the exclusion is in the public 
                        interest.
                    ``(B) Report.--If the Secretary or the Board of 
                Governors excludes a nationally recognized statistical 
                rating organization from the application of paragraph 
                (2) under subparagraph (A) of this paragraph, the 
                Secretary or Board of Governors, as applicable, shall, 
                as soon as practicable after that exclusion, disclose 
                to the public the reasoning for that exclusion.
            ``(4) Effective date.--The amendments made by this 
        subsection shall take effect as if enacted on March 15, 
        2020.''.
    (b) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall carry out a study regarding--
                    (A) the quality of credit ratings issued by 
                nationally recognized statistical ratings 
                organizations, as that term is defined in section 3(a) 
                of the Securities Exchange Act of 1934 (15 U.S.C. 
                78c(a)), including during the 2008 economic crisis;
                    (B) the effect of competition on the quality of 
                credit ratings and on the ability of small- and mid-
                size companies and financial institutions to access the 
                capital markets; and
                    (C) the implementation of the amendment made by 
                subsection (a).
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress a report containing all 
        findings and determinations made in carrying out the study 
        required under paragraph (1).
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