[Congressional Record Volume 158, Number 16 (Wednesday, February 1, 2012)]
[Senate]
[Pages S266-S276]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1496. Mr. CORKER submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. AMENDMENTS TO THE FEDERAL RESERVE ACT.

       (a) Maintenance of Long Run Growth; Price Stability and Low 
     Inflation.--Section 2A of the Federal Reserve Act (12 U.S.C. 
     225a) is amended--
       (1) by striking ``maximum employment, stable prices,'' and 
     inserting ``long-term price stability, a low rate of 
     inflation,''; and
       (2) by at the end the following: ``The Board shall 
     establish an explicit numerical definition of the term `long-
     term price stability' and shall maintain monetary policy that 
     effectively promotes such long-term price stability.''.
       (b) Rule of Construction.--The amendments made by 
     subsection (a) shall not be construed as a limitation on the 
     authority or responsibility of the Board of Governors of the 
     Federal Reserve System--
       (1) to provide liquidity to markets in the event of a 
     disruption that threatens the smooth functioning and 
     stability of the financial sector; or
       (2) to serve as a lender of last resort under the Federal 
     Reserve Act when the Board determines such action is 
     necessary.
       (c) Congressional Oversight.--The Board of Governors of the 
     Federal Reserve System shall, concurrent with each semiannual 
     hearing to Congress, submit a written report to the Congress 
     containing--
       (1) numerical measures to help Congress assess the extent 
     to which the Board and the Federal Open Market Committee are 
     achieving and maintaining a legitimate definition of the term 
     long-term price stability, as such term is defined or 
     modified pursuant to the second sentence of section 2A of the 
     Federal Reserve Act (as added by this section);
       (2) a description of the intermediate variables used by the 
     Board to gauge the prospects for achieving the objective of 
     long-term price stability; and
       (3) the definition, or any modifications thereto, of the 
     term long-term price stability, as such term is defined or 
     modified pursuant to the second sentence of section 2A of the 
     Federal Reserve Act (as added by this section).
                                 ______
                                 
  SA 1497. Mr. CORKER submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

TITLE II--RESIDENTIAL MORTGAGE MARKET PRIVATIZATION AND STANDARDIZATION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Residential Mortgage 
     Market Privatization and Standardization Act of 2012''.

     SEC. 202. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Covered mortgage loan.--
       (A) In general.--The term ``covered mortgage loan'' means 
     any residential mortgage loan, including any single-family 
     and multifamily loan, that is originated, serviced, or 
     subserviced, in whole or in part, owned directly or 
     indirectly, including through any interest in a security that 
     is backed in whole or in part by a mortgage loan, or 
     securitized or resecuritized, by an entity or affiliate or 
     subsidiary thereof that is regulated by any of the agencies 
     listed in subparagraph (B).
       (B) Agencies.--The agencies listed in this subparagraph 
     are--
       (i) the Board of Governors of the Federal Reserve System;
       (ii) the Department of Agriculture;
       (iii) the Department of Housing and Urban Development;
       (iv) the Federal Deposit Insurance Corporation;
       (v) the Federal Housing Finance Agency;
       (vi) the Farm Credit Administration;
       (vii) the Federal Trade Commission;
       (viii) the Office of the Comptroller of the Currency;
       (ix) the National Credit Union Administration; and
       (x) the Securities and Exchange Commission.
       (2) Enterprises.--The term ``enterprises'' means, 
     individually and collectively, the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation.
       (3) FHFA; director.--The terms ``FHFA'' and ``Director'' 
     mean the Federal Housing Finance Agency and the Director 
     thereof, respectively.
       (4) Mortgage data.--
       (A) In general.--The Director shall define mortgage data, 
     by regulation, consistent with this paragraph.
       (B) Single-family loans.--For single-family covered 
     mortgage loans, the term ``mortgage data'' means, as of the 
     date of origination--
       (i) the loan origination date and the loan maturity date;

[[Page S267]]

       (ii) whether the loan is a purchase loan or a refinance, 
     and for refinance loans--

       (I) the date on which the refinanced loan was originated;
       (II) the identity of the lender on the refinanced loan; and
       (III) the unpaid principal balance of the refinanced loan 
     that was repaid by the new loan;

       (iii) the value of the collateral property on which the 
     lender relied, and how the lender determined the value;
       (iv) the credit score or scores that the lender used or on 
     which it relied, and the entity that supplied each;
       (v) debt-to-income ratios, including--

       (I) the ratio of the total debt of the borrower and 
     coborrowers, expressed as a monthly payment amount, to the 
     total current and expected future income of the borrower and 
     any coborrowers on which the lender relied, expressed as a 
     monthly income amount; and
       (II) the ratio of the first scheduled payment on the loan, 
     expressed as a monthly payment amount, to the total current 
     and expected future income of the borrower and any 
     coborrowers on which the lender relied, expressed as a 
     monthly income amount;

       (vi) the total value of borrower assets, but not including 
     the value of the collateral and not including income, on 
     which the lender relied;
       (vii) the principal amount of the loan;
       (viii) the interest rate on the loan;
       (ix) if the interest rate may adjust under the loan terms, 
     the terms and limits of any permissible adjustment, including 
     the index and margin, if applicable, when the rate may 
     adjust, and any caps or floors on any such adjustment;
       (x) if the principal may increase under the loan terms at 
     origination, the terms and limits of any permissible 
     increase, including when the increase or increases may occur, 
     how the amount and timing of any increase is determined, and 
     any caps on any such increases;
       (xi) if the payment amount may adjust, independently of a 
     rate adjustment or of an increase in the principal amount, 
     the terms and limits of any permissible adjustment, including 
     when the adjustment may occur, how the amount and timing of 
     any adjustment is determined, and any caps or floors on any 
     such adjustments;
       (xii) whether, under the loan terms, the borrower may be 
     required to pay any prepayment penalty, and if so, the 
     potential amount and timing of any such penalty;
       (xiii) any permissible grace periods and late fees under 
     the loan terms, including fee amounts permitted on the loan;
       (xiv) whether the borrower or any coborrower has stated an 
     intent to reside in the property as a principal residence;
       (xv) whether the loan is assumable under the loan terms at 
     origination and if so, the conditions on which any assumption 
     may be denied;
       (xvi) whether the originating lender was or is aware of any 
     subordinate or senior lien on the property at the time at 
     which the loan was originated, and if so, the identity of all 
     lenders or other lienholders of such other loans, the 
     relative lien position of each, and the date of origination 
     of each lien if it secures a mortgage loan;
       (xvii) the type of mortgage insurance relating to the loan, 
     including who pays it, and the amount and scheduled payment 
     dates of any premiums;
       (xviii) whether flood insurance is required in connection 
     with the loan, and if so, the amount and timing of premiums;
       (xix) whether the loan has an escrow account and if so, the 
     amount of the initial deposit into the escrow account and the 
     amount of the monthly payments scheduled to be deposited into 
     the escrow account;
       (xx) the amount of points, fees, and settlement charges 
     paid to originate the loan, including the amount of any 
     compensation paid to a mortgage broker, and who paid it;
       (xxi) whether the borrower or borrowers have any payment 
     assistance at origination, such as government or private 
     subsidies or buydowns, and if so, the amounts, terms, and 
     timing of such assistance; and
       (xxii) the address of the real property securing the 
     mortgage loan.
       (C) Multifamily loans.--For multifamily covered mortgage 
     loans, the term ``mortgage data'' means, as of the date of 
     origination--
       (i) the number of dwelling units in each property securing 
     each loan;
       (ii) the rent on each dwelling unit, or, if more than 1 has 
     the same rent, the number of units at each rent level;
       (iii) the occupancy status of each dwelling unit;
       (iv) whether the rent is subsidized by any government 
     agency and, if so, in what amounts, under what terms and 
     conditions, and for what period of time;
       (v) whether the rent on the units is current, and if not, 
     how many days or months the rent for each unit is delinquent; 
     and
       (vi) all of the information described in subparagraph (B), 
     except as modified by the Director, by regulation, consistent 
     with this title.
       (D) After origination.--For both single-family and 
     multifamily covered mortgage loans, beginning the day after 
     the date of origination of the loan, and reported not less 
     frequently than monthly thereafter until the loan ceases to 
     exist, the term ``mortgage data'' includes--
       (i) the amount and date of payments received each month, 
     including--

       (I) whether each payment is received by the due date or 
     within a grace period, and if a payment is received after the 
     scheduled due date, how many days past due;
       (II) the amount of any payment deposited into an escrow 
     account;
       (III) amounts paid for other loan charges, with an 
     identification of the amount and type of such other charge; 
     and
       (IV) the amount of any prepayments;

       (ii) for loans on which any payment or partial payment is 
     overdue, the number of days since the loan was current;
       (iii) whether property taxes, hazard insurance premiums, 
     and any flood insurance premiums required in connection with 
     the loan are paid by the borrower or borrowers as required, 
     and if any such item is not paid as required--

       (I) the number of days since the payment was required, and 
     the amount of the missed payment;
       (II) whether the servicer or other party on behalf of the 
     servicer paid property taxes on the property, and in what 
     amount; and
       (III) whether the servicer or other party on behalf of the 
     servicer force-placed hazard or flood insurance, and if so, 
     the amount of the premium and the identity of the insurer;

       (iv) the amount of any interest paid to the borrower on any 
     escrow;
       (v) the type and date of any actions taken by or on behalf 
     of the servicer due to default, including nonpayment default, 
     and the amount charged to the borrower or borrowers as a 
     result of the action or actions; and
       (vi) if the servicer is aware of any damage to the property 
     securing the loan, the type and extent of the damage and of 
     any repairs, the amount of insurance proceeds paid, the 
     amount of such proceeds disbursed or paid to the borrower, 
     and the amount held by the servicer, and the date and results 
     of any inspection done by or on behalf of the servicer.
       (E) Adjustments consistent with the purposes of this 
     title.--The Director may adjust the items that are included 
     in or excluded from the definition of mortgage data 
     consistent with this title, as appropriate to protect the 
     privacy of individual consumers.
       (F) Privacy.--The regulations required by subparagraph (A) 
     may require rounding off of the debt to income ratios 
     required to be included as mortgage data to protect the 
     privacy of the borrower, taking into consideration the 
     information that is already available on the Internet or in 
     other ways.

     SEC. 203. GSE WINDDOWN.

       (a) Fannie Mae.--Section 304 of the National Housing Act 
     (12 U.S.C. 1719) is amended by adding at the end the 
     following:
       ``(h) Winddown of Enterprises.--
       ``(1) Annual guarantee reductions.--Not later than 180 days 
     after the date of enactment of the Mortgage Market 
     Privatization and Standardization Act of 2011, and annually 
     thereafter, the Director shall begin reducing the percentage 
     of the value of a trust certificate or other security that 
     may be guaranteed by the corporation by not less than 10 
     percent per year.
       ``(2) Structure.--The percentage of the bond guaranteed by 
     the corporation can be structured on either a pro-rata or 
     senior-subordinated basis, as determined by the Director. The 
     Director shall pursue a strategy that allows for market 
     signals to assist Congress and the Director to monitor and 
     assess the price that private market participants are 
     assigning to mortgage credit risk.
       ``(3) Mortgage-backed securities.--The existing portfolio 
     of mortgage-backed securities of the corporation shall be 
     reduced by not less than 20 percent per year.''.
       (b) Freddie Mac.--Section 305 of the Federal Home Loan 
     Mortgage Corporation Act (12 U.S.C. 1454) is amended by 
     adding at the end the following:
       ``(d) Winddown of Enterprises.--
       ``(1) Annual guarantee reductions.--Not later than 180 days 
     after the date of enactment of the Mortgage Market 
     Privatization and Standardization Act of 2011, and annually 
     thereafter, the Director shall begin reducing the percentage 
     of the value of a trust certificate or other security that 
     may be guaranteed by the corporation by not less than 10 
     percent per year.
       ``(2) Structure.--The percentage of the bond guaranteed by 
     the corporation can be structured on either a pro-rata or 
     senior-subordinated basis, as determined by the Director. The 
     Director shall pursue a strategy that allows for market 
     signals to assist Congress and the Director to monitor and 
     assess the price that private market participants are 
     assigning to mortgage credit risk.
       ``(3) Mortgage-backed securities.--The existing portfolio 
     of mortgage-backed securities of the corporation shall be 
     reduced by not less than 20 percent per year.''.

     SEC. 204. RESIDENTIAL MORTGAGE MARKET TRANSPARENCY.

       (a) In General.--Mortgage data relating to all covered 
     mortgage loans shall be put into the public domain in 
     accordance with this section.
       (b) Agency Action.--Each agency named in section 202(1)(B) 
     shall, not later than 1 year after the date of enactment of 
     this Act, require, by regulation, that all entities regulated 
     by such agency shall put mortgage data relating to covered 
     mortgage loans into the public domain, in accordance with 
     this title and the regulations issued under this title. Such 
     regulations shall require that the data be reasonably 
     accurate and complete.
       (c) Manner and Form of Data.--Not later than 1 year after 
     the date of enactment of this Act, the Director shall, by 
     regulation--
       (1) establish the manner and form by which all mortgage 
     data required to be put into the

[[Page S268]]

     public domain by this section shall be put into the public 
     domain; and
       (2) require that such mortgage data be made available in a 
     uniform manner, in a form designed for uniformity of data 
     definitions and forms, ease and speed of access, ease and 
     speed of downloading, and ease and speed of use.
       (d) Update.--All entities required to put mortgage data 
     into the public domain under this title shall continuously 
     update the mortgage data, not less frequently than monthly, 
     as long as the entities exist, whether in conservatorship, 
     receivership, or otherwise. All updates shall be reasonably 
     accurate and complete.
       (e) Responsibility of Regulated Entities.--The mortgage 
     data required to be put into the public domain in accordance 
     with this title shall include all mortgage data related to 
     all covered mortgage loans, to the extent practicable.
       (f) Duplication of Effort.--If 2 or more entities are 
     required by this title to report the same mortgage data 
     relating to the same mortgage loan, they may, by agreement, 
     determine that only 1 of such entities will report the data. 
     If 1 of such entities reports the required mortgage data, it 
     shall not be a violation of this section for the other 
     entities not to report the data.
       (g) Date of Access to Data.--The Director shall establish, 
     and cause to be published in the Federal Register, the 
     initial date on which--
       (1) the public shall begin to have access to any data put 
     into the public domain in accordance with this title; and
       (2) all mortgage data is required to be put into the public 
     domain, in accordance with this title.
       (h) Costs to FHFA.--The FHFA shall pay the cost of 
     establishing the database of mortgage data that is put into 
     the public domain under this section, and of providing public 
     access to that database. If the FHFA ever ceases to exist 
     without being replaced, and unless otherwise provided by Act 
     of Congress, the cost of maintaining the database shall be 
     borne by the remaining agencies named in section 202(1)(B), 
     by agreement.

     SEC. 205. ENCOURAGING A MARKET FOR HIGH QUALITY RESIDENTIAL 
                   MORTGAGE FUTURES.

       (a) In General.--Subpart A of part 2 of subtitle A of the 
     Federal Housing Enterprises Financial Safety and Soundness 
     Act of 1992 (12 U.S.C. 4541 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 1327. ENCOURAGING A MARKET FOR HIGH QUALITY 
                   RESIDENTIAL MORTGAGE FUTURES.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Deliverable residential mortgage.--
       ``(A) In general.--The terms `deliverable residential 
     mortgage' and `DRM' have the meaning given those terms by 
     rule of the Director, in consultation with participants in 
     the TBA market, taking into consideration underwriting and 
     product features that historical loan performance data 
     indicate result in a lower risk of default, such as--
       ``(i) documentation and verification of the financial 
     resources relied upon to qualify the mortgagor;
       ``(ii) standards with respect to--

       ``(I) the residual income of the mortgagor after all 
     monthly obligations;
       ``(II) the ratio of the housing payments of the mortgagor 
     to the monthly income of the mortgagor; and
       ``(III) the ratio of total monthly installment payments of 
     the mortgagor to the income of the mortgagor;

       ``(iii) mitigating the potential for payment shock on 
     adjustable rate mortgages through product features and 
     underwriting standards;
       ``(iv) mortgage guarantee insurance or other types of 
     insurance or credit enhancement obtained at the time of 
     origination, to the extent such insurance or credit 
     enhancement reduces the risk of default; and
       ``(v) prohibiting or restricting the use of balloon 
     payments, negative amortization, prepayment penalties, 
     interest-only payments, and other features that have been 
     demonstrated to exhibit a higher risk of borrower default.
       ``(B) Limitation on definition.--The Director, in defining 
     the term `deliverable residential mortgage', as required by 
     subparagraph (B), shall define that term to be no broader 
     than the definition of the term `qualified mortgage', as 
     provided under section 129C(c)(2) of the Truth in Lending Act 
     and regulations adopted thereunder.
       ``(2) Participant in the tba market.--The term `participant 
     in the TBA market' means a private investor in or dealer of 
     mortgage-backed securities, particularly mortgage-backed 
     securities issued by the enterprises, that routinely enters 
     into forward contracts for the sale of mortgage-backed 
     securities that do not specify the particular mortgage-backed 
     securities that will be delivered to the buyer.
       ``(3) Program.--The term `program' means the program 
     established under subsection (b).
       ``(4) DRM futures market.--The term `DRM futures market' 
     means a market for forward contracts for the sale of 
     mortgage-backed securities collateralized exclusively by 
     deliverable residential mortgages.
       ``(5) TBA market.--The term `TBA market' means the market 
     for forward contracts for the sale of mortgage-backed 
     securities that do not specify the particular mortgage-backed 
     securities that will be delivered to the buyer.
       ``(b) Program Established.--The Director, in consultation 
     with participants in the TBA market, shall establish a 
     program to encourage the development of a DRM futures market 
     that--
       ``(1) compliments the TBA market;
       ``(2) creates incentives for trading by participants in the 
     TBA market; and
       ``(3) has the potential to replace the TBA market.
       ``(c) Technology and Infrastructure.--The Director shall 
     consult with participants in the TBA market to develop the 
     technology and infrastructure necessary to carry out the 
     program established under this section.
       ``(d) Annual Report.--The Director shall submit to Congress 
     an annual report on the program established under this 
     section.''.
       (b) Securities Laws Exemptions.--
       (1) Securities act of 1933.--Section 3(a) of the Securities 
     Act of 1933 (15 U.S.C. 77c(a)) is amended by adding at the 
     end the following:
       ``(14) Any mortgage-backed security collateralized 
     exclusively by deliverable residential mortgages, as such 
     term is defined under section 1327 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992.''.
       (2) Securities exchange act of 1934.--Section 3(a)(12)(A) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 
     78c(a)(12)(A)) is amended--
       (A) by redesignating clauses (vi) and (vii) as clauses 
     (vii) and (viii), respectively; and
       (B) by inserting after clause (v) the following:
       ``(vi) any mortgage-backed security collateralized 
     exclusively by deliverable residential mortgages, as such 
     term is defined under section 1327 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992;''.

     SEC. 206. MONETIZATION OF BUSINESS VALUE.

       Pursuant to the authority of the Director as conservator of 
     the enterprises under section 1367 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992 (12 
     U.S.C. 4617), the Director shall--
       (1) identify any property of the enterprises that would be 
     of value to nongovernmental entities, including--
       (A) historical databases containing information on 
     prepayment, delinquency, and default rates;
       (B) proprietary home price indices;
       (C) technology used in the securitization of mortgages; and
       (D) patents relating to the securitization of mortgages, 
     automated underwriting systems, and other processes; and
       (2) sell any property identified under paragraph (1) to 
     nongovernmental entities.

     SEC. 207. UNIFORM UNDERWRITING STANDARDS.

       (a) Standards Established.--Notwithstanding any other 
     provision of this title or any other provision of Federal, 
     State, or local law, the Federal banking agencies (as that 
     term is defined in section 3 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813)), in consultation with the FHFA and the 
     Secretary of Housing and Urban Development, shall jointly 
     establish specific minimum standards for mortgage 
     underwriting, including--
       (1) a requirement that the mortgagee verify and document 
     the income and assets relied upon to qualify the mortgagor on 
     the residential mortgage, including the previous employment 
     and credit history of the mortgagor; and
       (2) a down payment requirement that--
       (A) is equal to not less than 5 percent of the purchase 
     price of the property securing the residential mortgage;
       (B) in the case of a first lien residential mortgage loan 
     with an initial loan to value ratio that is more than 80 
     percent and not more than 95 percent, includes a requirement 
     for credit enhancements, as defined by the Federal banking 
     agencies, until the loan to value ratio of the residential 
     mortgage loan amortizes to a value that is less than 80 
     percent of the purchase price;
       (C) uses a method for determining the ability of the 
     mortgagor to repay the residential mortgage that is based on 
     factors including--
       (i) all terms of the residential mortgage, including 
     principal payments that fully amortize the balance of the 
     residential mortgage over the term of the residential 
     mortgage; and
       (ii) the debt to income ratio of the mortgagor; and
       (D) any other specific standards that the Federal banking 
     agencies jointly determine are appropriate to ensure prudent 
     underwriting of residential mortgages.
       (b) Updates to Standards.--The Federal banking agencies, in 
     consultation with the FHFA and the Secretary of Housing and 
     Urban Development--
       (1) shall review the standards established under this 
     section not less frequently than every 5 years; and
       (2) based on the review under paragraph (1), may revise the 
     standards established under this section, as the Federal 
     banking agencies, in consultation with the FHFA and the 
     Secretary of Housing and Urban Development, determine to be 
     necessary.
       (c) Compliance.--It shall be a violation of Federal law--
       (1) for any mortgage loan originator to fail to comply with 
     the minimum standards for mortgage underwriting established 
     under subsection (a) in originating a residential mortgage 
     loan;

[[Page S269]]

       (2) for any company to maintain an extension of credit on a 
     revolving basis to any person to fund a residential mortgage 
     loan, unless the company reasonably determines that the 
     residential mortgage loan funded by such credit was subject 
     to underwriting standards no less stringent than the minimum 
     standards for mortgage underwriting established under 
     subsection (a); or
       (3) for any company to purchase, fund by assignment, or 
     guarantee a residential mortgage loan, unless the company 
     reasonably determines that the residential mortgage loan was 
     subject to underwriting standards no less stringent than the 
     minimum standards for mortgage underwriting established under 
     subsection (a).
       (d) Implementation.--
       (1) Regulations required.--The Federal banking agencies, in 
     consultation with the FHFA, shall issue regulations to 
     implement subsections (a) and (c), which shall take effect 
     not later than 270 days after the date of enactment of this 
     Act.
       (2) Report required.--If the Federal banking agencies have 
     not issued final regulations under subsections (a) and (c) 
     before the date that is 270 days after the date of enactment 
     of this Act, the Federal banking agencies shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (A) explains why final regulations have not been issued 
     under subsections (a) and (c); and
       (B) provides a timeline for the issuance of final 
     regulations under subsections (a) and (c).
       (e) Enforcement.--Compliance with the rules issued under 
     this section shall be enforced by--
       (1) the primary financial regulatory agency as that term is 
     defined under section 2 of the Dodd-Frank Wall Street Reform 
     and Consumer Protection Act (12 U.S.C. 5301) of an entity, 
     with respect to an entity subject to the jurisdiction of a 
     primary financial regulatory agency, in accordance with the 
     statutes governing the jurisdiction of the primary financial 
     regulatory agency over the entity, and as if the action of 
     the primary financial regulatory agency were taken under such 
     statutes; and
       (2) the Bureau of Consumer Financial Protection, with 
     respect to a company that is not subject to the jurisdiction 
     of a primary financial regulatory agency.
       (f) Exemptions for Certain Nonprofit Mortgage Loan 
     Originators.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Federal banking agencies, in 
     consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury, may jointly 
     issue rules to exempt from the requirements under subsection 
     (a)(2), mortgage loan originators that are exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986.
       (2) Determining factors.--The Federal banking agencies 
     shall ensure that--
       (A) the lending activities of a mortgage loan originator 
     that receives an exemption under this subsection do not 
     threaten the safety and soundness of the banking system of 
     the United States; and
       (B) a mortgage loan originator that receives an exemption 
     under this subsection--
       (i) is not compensated based on the number or value of 
     residential mortgage loan applications accepted, offered, or 
     negotiated by the mortgage loan originator;
       (ii) does not offer residential mortgage loans that have an 
     interest rate greater than zero percent;
       (iii) does not gain a monetary profit from any residential 
     mortgage product or service provided;
       (iv) has the primary purpose of serving low income housing 
     needs;
       (v) has not been specifically prohibited, by statute, from 
     receiving Federal funding; and
       (vi) meets any other requirements that the Federal banking 
     agencies jointly determine are appropriate for ensuring that 
     a mortgage loan originator that receives an exemption under 
     this subsection does not threaten the safety and soundness of 
     the banking system of the United States.
       (3) Reports required.--Before the issuance of final rules 
     under subsection (a), and annually thereafter, the Federal 
     banking agencies shall jointly submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives a report that--
       (A) identifies the mortgage loan originators that receive 
     an exemption under this subsection; and
       (B) for each mortgage loan originator identified under 
     subparagraph (A), explains the rationale for providing an 
     exemption.
       (4) Updates to exemptions.--The Federal banking agencies, 
     in consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury--
       (A) shall review the exemptions established under this 
     subsection, not less frequently than every 2 years; and
       (B) based on the review under subparagraph (A), may revise 
     the standards established under this subsection, as the 
     Federal banking agencies, in consultation with the Secretary 
     of Housing and Urban Development and the Secretary of the 
     Treasury, determine to be necessary.
       (g) Rules of Construction.--Nothing in this section may be 
     construed to permit--
       (1) the enterprises to make or guarantee a residential 
     mortgage loan that does not meet the minimum underwriting 
     standards established under this section; or
       (2) the Federal banking agencies to issue an exemption 
     under subsection (f) that is not on a case-by-case basis.
       (h) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Company.--The term ``company''--
       (A) has the same meaning as in section 2(b) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(b)); and
       (B) includes a sole proprietorship.
       (2) Mortgage loan originator.--The term ``mortgage loan 
     originator'' means any company that takes residential 
     mortgage loan applications and offers or negotiates terms of 
     residential mortgage loans.
       (3) Residential mortgage loan.--The term ``residential 
     mortgage loan''--
       (A) means any extension of credit primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent security interest in a dwelling 
     or residential real estate upon which is constructed or 
     intended to be constructed a dwelling; and
       (B) does not include a mortgage loan for which mortgage 
     insurance is provided by the Department of Veterans Affairs 
     or the Rural Housing Administration.
       (4) Extension of credit; dwelling.--The terms ``extension 
     of credit'' and ``dwelling'' have the same meanings as in 
     section 103 of the Truth in Lending Act (15 U.S.C. 1602).
       (i) Repeal of Credit Risk Retention and QRM Rules.--Section 
     15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o-11) 
     is repealed, and any rule or regulation promulgated under 
     that section shall have no force or effect, effective on the 
     date of enactment of this Act.

     SEC. 208. RESIDENTIAL MORTGAGE SERVICING STANDARDS.

       (a) Uniform PSA.--
       (1) Development.--
       (A) In general.--The Director, in consultation with the 
     Secretary of the Treasury and the Board of Governors of the 
     Federal Reserve System, shall, not later than 1 year after 
     the date of enactment of this Act, develop a uniform pooling 
     and servicing agreement (in this section referred to as a 
     ``uniform PSA''). The Director shall work with industry 
     groups, including servicers, originators, and mortgage 
     investors to develop the uniform PSA.
       (B) Criteria.--The uniform PSA shall--
       (i) address all issues relating to the pool trustee, and 
     shall be based on pooling and servicing agreements in use by 
     the enterprises on the date of enactment of this Act; and
       (ii) create uniform loss mitigation standards, including 
     standards for a single point of contact for troubled 
     borrowers, an industry wide net-present-value model for 
     determining when to conduct a loan modification rather than 
     foreclosure, and national standards for the foreclosure 
     process.
       (2) Effect of uniform psa.--Beginning 1 year after the date 
     of enactment of this Act, all mortgage backed securities 
     issued by national or State chartered banks in the United 
     States will be affected in accordance with the uniform PSA.
       (b) MERS 2.--The Director shall establish, by rule, a 
     Mortgage Electronic Registration System (in this section 
     referred to as ``MERS2'') based on the Mortgage Electronic 
     Registration System in use on the date of enactment of this 
     Act. MERS2 shall incorporate a single national database for 
     all mortgage title transfers, to be maintained and operated 
     by FHFA. The rules of the Director shall ensure that property 
     title is transferred in accordance with all applicable 
     provisions of law. All mortgage transfers shall take place 
     according to national standards and shall be recorded in the 
     MERS2 system.
       (c) Uniform Regulatory Practices.--The Comptroller of the 
     Currency, Chairperson of the Federal Deposit Insurance 
     Corporation, Director, Chairman of the Board of Governors of 
     the Federal Reserve System, and Director of the Bureau of 
     Consumer Financial Protection shall, jointly, under the 
     direction of the Director, develop uniform regulatory 
     practices for the mortgage market.

     SEC. 209. PROHIBITION ON NEW BUSINESS.

       The enterprises are prohibited from initiating or engage in 
     new lines of business on and after the date of enactment of 
     this Act.

     SEC. 210. REPEAL OF CHARTER ACTS.

       Effective on the date on which the enterprises have no 
     outstanding obligations pursuant to the winddown required by 
     section 304(h) of the National Housing Act (as added by this 
     title) and in section 305(d) of the Federal Home Loan 
     Mortgage Corporation Act (as added by this title), 
     respectively--
       (1) the Federal National Mortgage Association Charter Act 
     (12 U.S.C. 1716 et seq.) is repealed, and the charter of the 
     Federal National Mortgage Association is rescinded; and
       (2) the Federal Home Loan Mortgage Corporation Act (12 
     U.S.C. 1451 et seq.) is repealed, and the charter of the 
     Federal Home Loan Mortgage Corporation is rescinded.
                                 ______
                                 
  SA 1498. Mr. BLUMENTHAL (for himself and Mr. Kirk) submitted an 
amendment intended to be proposed to amendment SA 1470 proposed by Mr. 
Reid (for himself, Mr. Brown of Massachusetts, Mr. Lieberman, Ms. 
Collins, Mrs. Gillibrand, Mr. Levin, and Mr.

[[Page S270]]

Franken) to the bill S. 2038, to prohibit Members of Congress and 
employees of Congress from using nonpublic information derived from 
their official positions for personal benefit, and for other purposes; 
as follows:

       At the appropriate place, insert the following:

     SEC. __. APPLICATION TO OTHER ELECTED OFFICIALS AND CRIMINAL 
                   OFFENSES.

       (a) Application to Other Elected Officials.--
       (1) Civil service retirement system.--Section 8332(o)(2)(A) 
     of title 5, United States Code, is amended--
       (A) in clause (i), by inserting ``, the President, the Vice 
     President, or an elected official of a State or local 
     government'' after ``Member''; and
       (B) in clause (ii), by inserting ``, the President, the 
     Vice President, or an elected official of a State or local 
     government'' after ``Member''.
       (2) Federal employees retirement system.--Section 
     8411(l)(2) of title 5, United States Code, is amended--
       (A) in subparagraph (A), by inserting ``, the President, 
     the Vice President, or an elected official of a State or 
     local government'' after ``Member''; and
       (B) in subparagraph (B), by inserting ``, the President, 
     the Vice President, or an elected official of a State or 
     local government'' after ``Member''.
       (b) Criminal Offenses.--Section 8332(o)(2) of title 5, 
     United States Code, is amended--
       (1) in subparagraph (A), by striking clause (iii) and 
     inserting the following:
       ``(iii) The offense--

       ``(I) is committed after the date of enactment of this 
     subsection and--

       ``(aa) is described under subparagraph (B)(i), (iv), (xvi), 
     (xix), (xxiii), (xxiv), or (xxvi); or
       ``(bb) is described under subparagraph (B)(xxix), (xxx), or 
     (xxxi), but only with respect to an offense described under 
     subparagraph (B)(i), (iv), (xvi), (xix), (xxiii), (xxiv), or 
     (xxvi); or

       ``(II) is committed after the date of enactment of the 
     STOCK Act and--

       ``(aa) is described under subparagraph (B)(ii), (iii), (v), 
     (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), 
     (xv), (xvii), (xviii), (xx), (xxi), (xxii), (xxv), (xxvii), 
     or (xxviii); or
       ``(bb) is described under subparagraph (B)(xxix), (xxx), or 
     (xxxi), but only with respect to an offense described under 
     subparagraph (B)(ii), (iii), (v), (vi), (vii), (viii), (ix), 
     (x), (xi), (xii), (xiii), (xiv), (xv), (xvii), (xviii), (xx), 
     (xxi), (xxii), (xxv), (xxvii), or (xxviii).''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) An offense described in this subparagraph is only the 
     following, and only to the extent that the offense is a 
     felony:
       ``(i) An offense under section 201 of title 18 (relating to 
     bribery of public officials and witnesses).
       ``(ii) An offense under section 203 of title 18 (relating 
     to compensation to Member of Congress, officers, and others 
     in matters affecting the Government).
       ``(iii) An offense under section 204 of title 18 (relating 
     to practice in the United States Court of Federal Claims or 
     the Unites States Court of Appeals for the Federal Circuit by 
     Member of Congress).
       ``(iv) An offense under section 219 of title 18 (relating 
     to officers and employees acting as agents of foreign 
     principals).
       ``(v) An offense under section 286 of title 18 (relating to 
     conspiracy to defraud the Government with respect to claims).
       ``(vi) An offense under section 287 of title 18 (relating 
     to false, fictitious or fraudulent claims).
       ``(vii) An offense under section 597 of title 18 (relating 
     to expenditures to influence voting).
       ``(viii) An offense under section 599 of title 18 (relating 
     to promise of appointment by candidate).
       ``(ix) An offense under section 602 of title 18 (relating 
     to solicitation of political contributions).
       ``(x) An offense under section 606 of title 18 (relating to 
     intimidation to secure political contributions).
       ``(xi) An offense under section 607 of title 18 (relating 
     to place of solicitation).
       ``(xii) An offense under section 641 of title 18 (relating 
     to public money, property or records).
       ``(xiii) An offense under section 666 of title 18 (relating 
     to theft or bribery concerning programs receiving Federal 
     funds).
       ``(xiv) An offense under section 1001 of title 18 (relating 
     to statements or entries generally).
       ``(xv) An offense under section 1341 of title 18 (relating 
     to frauds and swindles, including as part of a scheme to 
     deprive citizens of honest services thereby).
       ``(xvi) An offense under section 1343 of title 18 (relating 
     to fraud by wire, radio, or television, including as part of 
     a scheme to deprive citizens of honest services thereby).
       ``(xvii) An offense under section 1503 of title 18 
     (relating to influencing or injuring officer or juror).
       ``(xviii) An offense under section 1505 of title 18 
     (relating to obstruction of proceedings before departments, 
     agencies, and committees).
       ``(xix) An offense under section 1512 of title 18 (relating 
     to tampering with a witness, victim, or an informant).
       ``(xx) An offense under section 1951 of title 18 (relating 
     to interference with commerce by threats of violence).
       ``(xxi) An offense under section 1952 of title 18 (relating 
     to interstate and foreign travel or transportation in aid of 
     racketeering enterprises).
       ``(xxii) An offense under section 1956 of title 18 
     (relating to laundering of monetary instruments).
       ``(xxiii) An offense under section 1957 of title 18 
     (relating to engaging in monetary transactions in property 
     derived from specified unlawful activity).
       ``(xxiv) An offense under chapter 96 of title 18 (relating 
     to racketeer influenced and corrupt organizations).
       ``(xxv) An offense under section 7201 of the Internal 
     Revenue Code of 1986 (relating to attempt to evade or defeat 
     tax).
       ``(xxvi) An offense under section 104(a) of the Foreign 
     Corrupt Practices Act of 1977 (relating to prohibited foreign 
     trade practices by domestic concerns).
       ``(xxvii) An offense under section 10(b) of the Securities 
     Exchange Act of 1934 (relating to fraud, manipulation, or 
     insider trading of securities).
       ``(xxviii) An offense under section 4c(a) of the Commodity 
     Exchange Act (7 U.S.C. 6c(a)) (relating to fraud, 
     manipulation, or insider trading of commodities).
       ``(xxix) An offense under section 371 of title 18 (relating 
     to conspiracy to commit offense or to defraud United States), 
     to the extent of any conspiracy to commit an act which 
     constitutes--

       ``(I) an offense under clause (i), (ii), (iii), (iv), (v), 
     (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), 
     (xv), (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxii), 
     (xxiii), (xxiv), (xxv), (xxvi), (xxvii), or (xxviii); or
       ``(II) an offense under section 207 of title 18 (relating 
     to restrictions on former officers, employees, and elected 
     officials of the executive and legislative branches).

       ``(xxx) Perjury committed under section 1621 of title 18 in 
     falsely denying the commission of an act which constitutes--

       ``(I) an offense under clause (i), (ii), (iii), (iv), (v), 
     (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), 
     (xv), (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxii), 
     (xxiii), (xxiv), (xxv), (xxvi), (xxvii), or (xxviii); or
       ``(II) an offense under clause (xxix), to the extent 
     provided in such clause.

       ``(xxxi) Subornation of perjury committed under section 
     1622 of title 18 in connection with the false denial or false 
     testimony of another individual as specified in clause 
     (xxx).''.
                                 ______
                                 
  SA 1499. Mr. CORKER submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. AMENDMENT TO THE BANK HOLDING COMPANY ACT OF 1956.

       (a) In General.--Section 13(d)(1) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1851(d)(1)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) through (J) as 
     subparagraphs (A) through (I), respectively.
       (b) Technical and Conforming Amendments.--Section 13 of the 
     Bank Holding Company Act of 1956 (12 U.S.C. 1851) is 
     amended--
       (1) in subsection (c)(4), by striking ``subsection 
     (d)(1)(G)'' and inserting ``subsection (d)(1)(F)''; and
       (2) in subsection (f)--
       (A) by striking ``paragraph (d)(1)(G)'' each place that 
     term appears and inserting ``subsection (d)(1)(F)''; and
       (B) in paragraph (3)(A)--
       (i) in clause (i), by striking ``subsection (d)(1)(G)'' and 
     inserting ``subsection (d)(1)(F)''; and
       (ii) in clause (ii), by striking ``subsection 
     (d)(1)(G)(v)'' and inserting ``subsection (d)(1)(F)(v)''.
                                 ______
                                 
  SA 1500. Mr. INHOFE (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed to amendment SA 1470 proposed by Mr. 
Reid (for himself, Mr. Brown of Massachusetts, Mr. Lieberman, Ms. 
Collins, Mrs. Gillibrand, Mr. Levin, and Mr. Franken) to the bill S. 
2038, to prohibit Members of Congress and employees of Congress from 
using nonpublic information derived from their official positions for 
personal benefit, and for other purposes; as follows:

       At the end of the amendment, insert the following:

     SEC. __. PROHIBITION ON UNAUTHORIZED EARMARKS.

       (a) In General.--It shall not be in order to consider a 
     bill, joint resolution, conference report, or amendment that 
     provides an earmark.
       (b) Supermajority.--
       (1) Waiver.--The provisions of subsection (a) may be waived 
     or suspended in the Senate only by the affirmative vote of 
     three-fourths of the Members, duly chosen and sworn.
       (2) Appeal.--Appeals in the Senate from the decisions of 
     the Chair relating to any

[[Page S271]]

     provision of this section shall be limited to 1 hour, to be 
     equally divided between, and controlled by, the appellant and 
     the manager of the measure. An affirmative vote of three-
     fourths of the Members of the Senate, duly chosen and sworn, 
     shall be required to sustain an appeal of the ruling of the 
     Chair on a point of order raised under this section.
       (c) Earmark Defined.--In this resolution, the term 
     ``earmark'' means a provision or report language included 
     primarily at the request of a Senator or Member of the House 
     of Representatives providing or recommending a specific 
     amount of discretionary budget authority, credit authority, 
     or other spending authority for a contract, loan, loan 
     guarantee, grant, loan authority, or other expenditure with 
     or to an entity, or targeted to a specific State, locality, 
     or congressional district unless the provision or language--
       (1) is specifically authorized by an appropriate 
     congressional authorizing committee of jurisdiction;
       (2) meets funding eligibility criteria established by an 
     appropriate congressional authorizing committee of 
     jurisdiction by statute; or
       (3) is awarded through a statutory or administrative 
     formula-driven or competitive award process.
                                 ______
                                 
  SA 1501. Mr. McCAIN (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed to amendment SA 1472 proposed by Mr. 
Toomey (for himself, Mrs. McCaskill, Mr. DeMint, Mr. Udall of Colorado, 
Mr. Rubio, Ms. Ayotte, Mr. Portman, Mr. Thune, and Mr. Johanns) to the 
amendment SA 1470 proposed by Mr. Reid (for himself, Mr. Brown of 
Massachusetts, Mr. Lieberman, Ms. Collins, Mrs. Gillibrand, Mr. Levin, 
and Mr. Franken) to the bill S. 2038, to prohibit Members of Congress 
and employees of Congress from using nonpublic information derived from 
their official positions for personal benefit, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 4, line 23, strike ``two-thirds'' and insert ``a 
     majority''.
                                 ______
                                 
  SA 1502. Mr. BENNET (for himself and Mr. Tester) submitted an 
amendment intended to be proposed by him to the bill S. 2038, to 
prohibit Members of Congress and employees of Congress from using 
nonpublic information derived from their official positions for 
personal benefit, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of the bill, insert the following:

             TITLE __--CLOSE THE REVOLVING DOOR ACT OF 2012

     SEC. 1. SHORT TITLE.

       This title may be cited as the ``Close the Revolving Door 
     Act of 2012''.

     SEC. 2. LIFETIME BAN ON MEMBERS OF CONGRESS FROM LOBBYING.

       (a) In General.--Section 207(e)(1) of title 18, United 
     States Code, is amended to read as follows:
       ``(1) Members of congress.--Any person who is a Senator, a 
     Member of the House of Representatives or an elected officer 
     of the Senate or the House of Representatives and who after 
     that person leaves office, knowingly makes, with the intent 
     to influence, any communication to or appearance before any 
     Member, officer, or employee of either House of Congress or 
     any employee of any other legislative office of the Congress, 
     on behalf of any other person (except the United States) in 
     connection with any matter on which such former Senator, 
     Member, or elected official seeks action by a Member, 
     officer, or employee of either House of Congress, in his or 
     her official capacity, shall be punished as provided in 
     section 216 of this title.''.
       (b) Conforming Amendment.--Section 207(e)(2) of title 18, 
     United States Code, is amended--
       (1) in the caption, by striking ``Officers and staff'' and 
     inserting ``Staff''; and
       (2) by striking ``an elected officer of the Senate, or''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to Members of Congress serving in Congress on or 
     after the date of enactment of this Act.

     SEC. 3. CONGRESSIONAL STAFF.

       (a) In General.--section 207(e) of title 18, United States 
     Code, is amended--
       (1) in paragraph (2), by inserting at the end the 
     following: ``A person described in this paragraph shall be 
     prohibited for 6 years from making any such contact or 
     appearance before the personal office or member of Congress 
     that had employed the person.'';
       (2) in paragraph (3), by inserting at the end the 
     following: ``A person described in this paragraph shall be 
     prohibited for 6 years from making any such contact or 
     appearance before the personal office or member of Congress 
     that had employed the person.'';
       (3) by striking paragraph (4) and inserting the following:
       ``(4) Any person who is an employee of a committee of the 
     House of Representatives or the Senate, or an employee of a 
     joint committee of the Congress whose pay is disbursed by the 
     Clerk of the House of Representatives or the Senate, to whom 
     paragraph (7)(A) applies and who, within 1 year after the 
     termination of that person's employment on such committee or 
     joint committee (as the case may be), knowingly makes, with 
     the intent to influence, any communication to or appearance 
     before any person who is a Member or an employee of that 
     committee or joint committee (as the case may be) or who was 
     a Member of the committee or joint committee (as the case may 
     be) in the year immediately prior to the termination of such 
     person's employment by the committee or joint committee (as 
     the case may be), on behalf of any other person (except the 
     United States) in connection with any matter on which such 
     former employee seeks action by a Member, officer, or 
     employee of either House of Congress, in his or her official 
     capacity, shall be punished as provided in section 216 of 
     this title. A person described in this paragraph shall be 
     prohibited for 6 years from making any such contact or 
     appearance before the majority or minority staff of that 
     committee, the chairman or ranking member of the committee 
     during that person's employment, or any personal office or 
     Member of Congress that had been a member of that committee 
     during the person's employment with the committee.''; and
       (4) in paragraph (6)(A), by striking ``1 year'' and 
     inserting ``6 years''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to individuals employed by Congress on or after 
     the date of enactment of this Act.

     SEC. 4. IMPROVED REPORTING OF LOBBYISTS ACTIVITIES.

       Section 6 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 
     1605) is amended by inserting at the end the following:
       ``(c) Joint Web Site.--The Secretary of the Senate and the 
     Clerk of the House of Representatives shall maintain a joint 
     lobbyist disclosure Internet database for information 
     required to be publicly disclosed under this Act which shall 
     be an easily searchable Web site called lobbyists.gov with a 
     stated goal of simplicity of usage.''.

     SEC. 5. LOBBYIST REVOLVING DOOR TO CONGRESS.

       (a) In General.--Any person who is a registered lobbyist or 
     an agent of a foreign principal may not within 6 years after 
     that person leaves such position be hired by a Member or 
     committee of either House of Congress with whom the 
     registered lobbyist or an agent of a foreign principal has 
     had substantial lobbying contact.
       (b) Waiver.--This section may be waived in the Senate or 
     the House of Representatives by the Committee on Ethics or 
     the Committee on Standards of Official Conduct based on a 
     compelling national need.
       (c) Substantial Lobbying Contact.--For purposes of this 
     section, in determining whether a registered lobbyist or 
     agent of a foreign principal has had substantial lobbying 
     contact within the applicable period of time, the Member or 
     committee of either House of Congress shall take into 
     consideration whether the individual's lobbying contacts have 
     pertained to pending legislative business, or related to 
     solicitation of Federal funding, particularly if such 
     contacts included the coordination of meetings with the 
     Member or staff, involved presentations to staff, or 
     participation in fundraising exceeding the mere giving of a 
     personal contribution. Simple social contacts with the Member 
     or committee of either House of Congress and staff, shall not 
     by themselves constitute substantial lobbying contacts.

     SEC. 6. PAYMENT FOR CHARTER FLIGHTS BY CAMPAIGN FUNDS AND 
                   DISCLOSURE OF CERTAIN AIR TRAVEL WITH A 
                   LOBBYIST BY A SENATOR.

       (a) Clarification of Rules on Use of Campaign Funds for 
     Flights on Commercial Aircraft.--
       (1) In general.--Paragraph (1) of section 313(c) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 439a(c)) is 
     amended--
       (A) by striking ``a candidate for election for Federal 
     office (other than a candidate who is subject to paragraph 
     (2)), or any authorized committee of such a candidate, may 
     not make any expenditure for a flight on an aircraft'' in the 
     matter preceding subparagraph (A) and inserting ``in the case 
     of a candidate for election to Federal office (other than a 
     candidate who is subject to paragraph (2)), no political 
     committee may make any expenditure for travel by such a 
     candidate, or for travel on behalf of such a candidate, by 
     means of a flight on an aircraft (regardless of whether such 
     travel is in connection with an election for Federal 
     office)'', and
       (B) by striking ``candidate, the authorized committee, or 
     other'' in subparagraph (B).
       (2) Effective date.--The amendment made by this subsection 
     shall apply to flights taken on or after the date of the 
     enactment of this Act.
       (b) Disclosure.--Paragraph 2(e)(1) of rule XXXV of the 
     Standing Rules of the Senate is amended--
       (1) in subclause (C), by striking ``and'' after the 
     semicolon;
       (2) by inserting after subclause (D) the following:
       ``(E) the source will submit a list of the names of any 
     registered lobbyist or an agent of a foreign principal on the 
     trip not later than 30 days after the trip; and''.

     SEC. 7. BAN ON LOBBYISTS MAKING CASH CAMPAIGN CONTRIBUTIONS.

       Section 321 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 441g) is amended by--
       (1) by striking ``No person'' and inserting the following:

[[Page S272]]

       ``(a) In General.--Except as provided in subsection (b), no 
     person''; and
       (2) inserting at the end the following:
       ``(b) Lobbyist.--
       ``(1) Total ban.--If the person described in subsection (a) 
     is a lobbyist, the amount referred to in subsection (a) shall 
     be zero.
       ``(2) Lobbyist.--In this subsection, the term `lobbyist' 
     shall have the same meaning given such term in section 3(10) 
     of the Lobbying Disclosure Act of 1995.''.

     SEC. 8. REPORTING BY SUBSTANTIAL LOBBYING ENTITIES.

       The Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.) 
     is amended by inserting after section 6 the following:

     ``SEC. 6A. REPORTING BY SUBSTANTIAL LOBBYING ENTITIES.

       ``(a) In General.--A substantial lobbying entity shall file 
     on an annual basis with the Clerk of the House of 
     Representatives and the Secretary of the United States Senate 
     a list of any employee, individual under contract, or 
     individual who provides paid consulting services who is--
       ``(1) a former United States Senator or a former Member of 
     the United States House of Representatives; or
       ``(2) a former congressional staff person who--
       ``(A) made at least $100,000 in any 1 year as a 
     congressional staff person;
       ``(B) worked for a total of 4 years or more as a 
     congressional staff person; or
       ``(C) had a job title at any time while employed as a 
     congressional staff person that contained any of the 
     following terms: `Chief of Staff', `Legislative Director', 
     `Staff Director', `Counsel', `Professional Staff Member', 
     `Communications Director', or `Press Secretary'.
       ``(b) Contents of Filing.--The filing required by this 
     section shall contain a brief job description of each such 
     employee, individual under contract, or individual who 
     provides paid consulting services, and an explanation of 
     their work experience under subsection (a) that requires this 
     filing.
       ``(c) Improved Reporting of Substantial Lobbying 
     Entities.--The Joint Web site being maintained by the 
     Secretary of the Senate and the Clerk of the House of 
     Representatives, known as lobbyists.gov, shall include an 
     easily searchable database entitled `Substantial Lobbying 
     Entities' that includes qualifying employees, individuals 
     under contract, or individuals who provide paid consulting 
     services, under subsection (a).
       ``(d) Law Enforcement Oversight.--The Clerk of the House of 
     Representatives and the Secretary of the Senate may provide a 
     copy of the filings of substantial lobbying entities to the 
     District of Columbia United States Attorney, to allow the 
     District of Columbia United States Attorney to determine 
     whether any such entities are underreporting the Federal 
     lobbying activities of its employees, individuals under 
     contract, or individuals who provide paid consulting 
     services.
       ``(e) Substantial Lobbying Entity.--In this section, the 
     term `substantial lobbying entity' means an incorporated 
     entity that employs more than 3 federally registered 
     lobbyists during a filing period.''.

     SEC. 9. ENHANCED PENALTIES.

       Section 7(a) of the Lobbying Disclosure Act of 1995 (2 
     U.S.C. 1606(a)) is amended by striking ``$200,000'' and 
     inserting ``$500,000''.
                                 ______
                                 
  SA 1503. Mr. TESTER (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed to amendment SA 1470 proposed by Mr. 
Reid (for himself, Mr. Brown of Massachusetts, Mr. Lieberman, Ms. 
Collins, Mrs. Gillibrand, Mr. Levin, and Mr. Franken) to the bill S. 
2038, to prohibit Members of Congress and employees of Congress from 
using nonpublic information derived from their official positions for 
personal benefit, and for other purposes; as follows:

       At the end, add the following:

     SEC. __. FILING BY SENATE CANDIDATES WITH COMMISSION.

       Section 302(g) of the Federal Election Campaign Act of 1971 
     (2 U.S.C. 432(g)) is amended to read as follows:
       ``(g) Filing With the Commission.--All designations, 
     statements, and reports required to be filed under this Act 
     shall be filed with the Commission.''.
                                 ______
                                 
  SA 1504. Mr. COONS submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES 
                   IN CERTAIN JUDICIAL DISTRICTS.

       (a) Temporary Office of Bankruptcy Judges Authorized by 
     Public Law 109-8.--
       (1) Extensions.--The temporary office of bankruptcy judges 
     authorized for the following districts by section 1223(b) of 
     Public Law 109-8 (28 U.S.C. 152 note) are extended until the 
     applicable vacancy specified in paragraph (2) in the office 
     of a bankruptcy judge for the respective district occurs:
       (A) The central district of California.
       (B) The eastern district of California.
       (C) The district of Delaware.
       (D) The southern district of Florida.
       (E) The southern district of Georgia.
       (F) The district of Maryland.
       (G) The eastern district of Michigan.
       (H) The district of New Jersey.
       (I) The northern district of New York.
       (J) The southern district of New York.
       (K) The eastern district of North Carolina.
       (L) The eastern district of Pennsylvania.
       (M) The middle district of Pennsylvania.
       (N) The district of Puerto Rico.
       (O) The district of South Carolina.
       (P) The western district of Tennessee.
       (Q) The eastern district of Virginia.
       (R) The district of Nevada.
       (2) Vacancies.--
       (A) Single vacancies.--Except as provided in subparagraphs 
     (B), (C), (D), and (E), the 1st vacancy in the office of a 
     bankruptcy judge for each district specified in paragraph 
     (1)--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (B) Central district of california.--The 1st, 2d, and 3d 
     vacancies in the office of bankruptcy judge for the central 
     district of California--
       (i) occurring 5 years or more after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (C) District of delaware.--The 1st, 2d, 3d, and 4th 
     vacancies in the office of a bankruptcy judge for the 
     district of Delaware--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (D) Southern district of florida.--The 1st and 2d vacancies 
     in the office of a bankruptcy judge for the southern district 
     of Florida--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (E) District of maryland.--The 1st, 2d, and 3d vacancies in 
     the office of a bankruptcy judge for the district of 
     Maryland--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (3) Applicability of other provisions.--Except as provided 
     in paragraphs (1) and (2), all other provisions of section 
     1223(b) of Public Law 109-8 (28 U.S.C. 152 note) remain 
     applicable to the temporary office of bankruptcy judges 
     referred to in paragraph (1).
       (b) Temporary Office of Bankruptcy Judges Extended by 
     Public Law 109-8.--
       (1) Extensions.--The temporary office of bankruptcy judges 
     authorized by section 3 of the Bankruptcy Judgeship Act of 
     1992 (28 U.S.C. 152 note) and extended by section 1223(c) of 
     Public Law 109-8 (28 U.S.C. 152 note) for the district of 
     Delaware, the district of Puerto Rico, and the eastern 
     district of Tennessee are extended until the applicable 
     vacancy specified in paragraph (2) in the office of a 
     bankruptcy judge for the respective district occurs.
       (2) Vacancies.--
       (A) District of delaware.--The 5th vacancy in the office of 
     a bankruptcy judge for the district of Delaware--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (B) District of puerto rico.--The 2d vacancy in the office 
     of a bankruptcy judge for the district of Puerto Rico--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (C) Eastern district of tennessee.--The 1st vacancy in the 
     office of a bankruptcy judge for the eastern district of 
     Tennessee--
       (i) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (3) Applicability of other provisions.--Except as provided 
     in paragraphs (1) and (2), all other provisions of section 3 
     of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) 
     and section 1223(c) of Public Law 109-8 (28 U.S.C. 152 note) 
     remain applicable to the temporary office of bankruptcy 
     judges referred to in paragraph (1).
       (c) Temporary Office of the Bankruptcy Judge Authorized by 
     Public Law 102-361 for the Middle District of North 
     Carolina.--
       (1) Extension.--The temporary office of the bankruptcy 
     judge authorized by section 3 of the Bankruptcy Judgeship Act 
     of 1992 (28 U.S.C. 152 note) for the middle district of North 
     Carolina is extended until the vacancy specified in paragraph 
     (2) occurs.

[[Page S273]]

       (2) Vacancy.--The 1st vacancy in the office of a bankruptcy 
     judge for the middle district of North Carolina--
       (A) occurring more than 5 years after the date of the 
     enactment of this Act, and
       (B) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,

     shall not be filled.
       (3) Applicability of other provisions.--Except as provided 
     in paragraphs (1) and (2), all other provisions of section 3 
     of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) 
     remain applicable to the temporary office of the bankruptcy 
     judge referred to in paragraph (1).
       (d) Temporary Judgeship Paygo Offset.--
       (1) Bankruptcy filing fees.--Section 1930(a)(3) of title 
     28, United States Code, is amended by striking $1,000 and 
     inserting $1,042.
       (2) Expenditure limitation.--Incremental amounts collected 
     by reason of the enactment of subsection (a) shall be 
     deposited in a special fund in the United States Treasury, to 
     be established after the date of enactment of this Act. Such 
     amounts shall be available for the purposes specified in 
     section 1931(a) of title 28, United States Code, but only to 
     the extent specifically appropriated by an Act of Congress 
     enacted after the date of enactment of this Act.
       (3) Effective date.--This subsection shall take effect 180 
     days after the date of enactment of this Act.
                                 ______
                                 
  SA 1505. Mr. PORTMAN submitted an amendment intended to be proposed 
by him to the bill S. 2038, to prohibit Members of Congress and 
employees of Congress from using nonpublic information derived from 
their official positions for personal benefit, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 8, lines 23 and 24, strike ``executive branch and 
     legislative branch officials'' and insert ``an executive 
     branch employee, a Member of Congress, or an employee of 
     Congress''.
                                 ______
                                 
  SA 1506. Mrs. HUTCHISON submitted an amendment intended to be 
proposed by her to the bill S. 2038, to prohibit Members of Congress 
and employees of Congress from using nonpublic information derived from 
their official positions for personal benefit, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SHAREHOLDER REGISTRATION THRESHOLD.

       (a) Amendments to Section 12 of the Securities Exchange Act 
     of 1934.--Section 12(g) of the Securities Exchange Act of 
     1934 (15 U.S.C. 781(g)) is amended--
       (1) in paragraph (1)--
       (A) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) in the case of an issuer that is a bank, as such term 
     is defined in section 3(a)(6) of this title, or a bank 
     holding company, as such term is defined in section (2) of 
     the Bank Holding Company Act of 1956 (12 U.S.C. 1841), 2000 
     persons or more; and
       ``(B) in the case of an issuer that is not a bank or bank 
     holding company, 500 persons or more,''; and
       (B) by striking ``commerce shall'' and inserting ``commerce 
     shall, not later than 120 days after the last day of its 
     first fiscal year ended after the effective date of this 
     subsection, on which the issuer has total assets exceeding 
     $10,000,000 and a class of equity security (other than an 
     exempted security) held of record by''; and
       (2) in paragraph (4), by striking ``three hundred'' and 
     inserting ``300 persons, or, in the case of a bank, as such 
     term is defined in section 3(a)(6), or a bank holding 
     company, as such term is defined in section (2) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841), 1200''.
       (b) Amendments to Section 15 of the Securities Exchange Act 
     of 1934.--Section 15(d) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o(d)) is amended, in the third sentence, by 
     striking ``three hundred'' and inserting ``300 persons, or, 
     in the case of bank, as such term is defined in section 
     3(a)(6), or a bank holding company, as such term is defined 
     in section (2) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841), 1200''.
       (c) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall issue final 
     regulations to implement this section and the amendments made 
     by this section.
                                 ______
                                 
  SA 1507. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 11. ACCESS TO INTERCEPTED WIRE, ORAL, OR ELECTRONIC 
                   COMMUNICATIONS RELATING TO SECURITIES FRAUD.

       (a) Authorization for Interception of Wire, Oral, or 
     Electronic Communications Relating to Securities Fraud.--
     Section 2516(1) of title 18, United States Code, is amended--
       (1) in paragraph (r), by striking ``or'' at the end;
       (2) by redesignating paragraph (s) as paragraph (t); and
       (3) by inserting after paragraph (r) the following:
       ``(s) any violation of section 1348 of this title (relating 
     to securities fraud); or''.
       (b) Authorization for Disclosure and Use of Intercepted 
     Wire, Oral, or Electronic Communications Relating to 
     Securities Fraud.--Section 2517 of title 18, United States 
     Code, is amended--
       (1) in subsection (1), by inserting ``, or to an officer of 
     the Securities and Exchange Commission,'' after ``to another 
     investigative or law enforcement officer''; and
       (2) in subsection (2), by inserting ``, or officer of the 
     Securities and Exchange Commission,'' after ``investigative 
     or law enforcement officer''.

     SEC. 12. INSIDER TRADING STATUTE OF LIMITATIONS.

       Section 21A(d)(5) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78u-1(d)(5)) is amended to read as follows:
       ``(5) Statute of limitations.--No action may be brought 
     under this section after the later of--
       ``(A) 5 years after the date of the subject purchase or 
     sale; or
       ``(B) 2 years after the date on which the Commission 
     discovers the violative conduct.''.

     SEC. 13. INSIDER TRADING PENALTIES.

       (a) Insider Trading Penalties Under Section 21A(a)(1) of 
     the Securities Exchange Act of 1934.--Section 21A(a)(1) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) 
     is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) adding at the end the following:
       ``(C) may, in any action instituted pursuant to section 8A 
     of the Securities Act of 1933, or section 21C of this title, 
     impose a civil penalty to be paid by the person who committed 
     such violation, or who, subject to subsection (b)(1) of this 
     section, directly or indirectly controlled the person who 
     committed such violation.''.
       (b) Insider Trading Penalties Where No Profits Gained or 
     Losses Avoided.--
       (1) Securities exchange act of 1934.--The Securities 
     Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
       (A) in section 21(d)(3)(A) (15 U.S.C. 78u(d)(3)(A)), by 
     inserting ``that resulted in profits gained or losses 
     avoided'' after ``penalty pursuant to section 21A''; and
       (B) in section 21B(a)(2)(A) (15 U.S.C. 78u-2(a)(2)(A)), by 
     inserting ``, other than by committing a violation subject to 
     a penalty pursuant to section 21A that resulted in profits 
     gained or losses avoided'' after ``rule or regulation issued 
     under this title''.
       (2) Securities act of 1933.--The Securities Act of 1933 (15 
     U.S.C. 77a et seq.) is amended--
       (A) in section 8A(g)(1)(A)(i) (15 U.S.C. 77h-
     1(g)(1)(A)(i)), by inserting ``, other than by committing a 
     violation subject to a penalty pursuant to section 21A of the 
     Securities Exchange Act of 1934 that resulted in profits 
     gained or losses avoided'' after ``rule or regulation issued 
     under this title''; and
       (B) in section 20(d)(1) of the (15 U.S.C. 77t(d)(1)), by 
     inserting ``that resulted in profits gained or losses 
     avoided'' after ``penalty pursuant to section 21A of the 
     Securities Exchange Act of 1934''.

     SEC. 14. EX PARTE FREEZE AUTHORITY FOR OFFSHORE INSIDER 
                   TRADING PROFITS.

       Section 21C(c)(3) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78u-3(c)(3)) is amended--
       (1) in subparagraph (A), by striking ``(A) In general'' and 
     inserting ``(A) Temporary freeze of extraordinary payments by 
     an issuer'';
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following:
       ``(B) Temporary freeze in insider trading investigations.--
       ``(i) Issuance of temporary order.--If the Commission finds 
     that there is reason to believe that a violation described in 
     section 21A has occurred, and that the person engaging in the 
     purchase or sale constituting the potential violation is 
     located outside of the United States, the Commission may 
     impose a temporary order requiring any registered broker or 
     dealer to freeze the brokerage accounts of such person at 
     such broker or dealer for a period not to exceed 30 days 
     after the date of entry of the order.
       ``(ii) Standard.--A temporary order may be entered under 
     clause (i) without notice, unless the Commission determines 
     that notice and hearing prior to entry of the order would be 
     in the public interest.
       ``(iii) Effective period.--A temporary order issued under 
     clause (i) shall--

       ``(I) become effective immediately;
       ``(II) be served upon each registered broker or dealer 
     maintaining accounts subject to the order; and
       ``(III) unless set aside, limited, or suspended by the 
     Commission or by a court of competent jurisdiction, remain 
     effective and enforceable for the period specified in the 
     order, but for not longer than 30 days after the date of 
     entry of the order.

       ``(iv) Violation of temporary order.--A violation of a 
     temporary order issued under

[[Page S274]]

     clause (i) shall be deemed a violation of this title.''.
                                 ______
                                 
  SA 1508. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 9. UPDATED CIVIL MONEY PENALTIES FOR SECURITIES LAW 
                   VIOLATIONS.

       (a) Securities Act of 1933.--
       (1) Money penalties in administrative actions.--Section 
     8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-
     1(g)(2)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$7,500'' and inserting ``$10,000''; and
       (ii) by striking ``$75,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$75,000'' and inserting ``$100,000''; and
       (ii) by striking ``$375,000'' and inserting ``$500,000''; 
     and
       (C) by amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the act or omission, if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in--

       ``(aa) substantial losses or created a significant risk of 
     substantial losses to other persons; or
       ``(bb) substantial pecuniary gain to the person who 
     committed the act or omission.''.
       (2) Money penalties in civil actions.--Section 20(d)(2) of 
     the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the violation''.
       (b) Securities Exchange Act of 1934.--
       (1) Money penalties in civil actions.--Section 21(d)(3)(B) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(d)(3)(B)) is amended--
       (A) in clause (i)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in clause (ii)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) in clause (iii), by striking ``greater of (I) $100,000 
     for a natural person or $500,000 for any other person, or 
     (II) the gross amount of pecuniary gain to such defendant as 
     a result of the violation'' and inserting the following: 
     ``greater of--

       ``(I) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(II) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(III) the amount of losses incurred by victims as a 
     result of the violation''.

       (2) Money penalties in administrative actions.--Section 
     21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
     2(b)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in paragraph (2)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) by amending paragraph (3) to read as follows:
       ``(3) Third tier.--Notwithstanding paragraphs (1) and (2), 
     the amount of penalty for each such act or omission shall not 
     exceed the greater of--
       ``(A) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(B) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(C) the amount of losses incurred by victims as a result 
     of the act or omission, if--
       ``(i) the act or omission described in subsection (a) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(ii) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.''.
       (c) Investment Company Act of 1940.--
       (1) Money penalties in administrative actions.--Section 
     9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
     9(d)(2)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) by amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the act or omission, if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.''.

       (2) Money penalties in civil actions.--Section 42(e)(2) of 
     the Investment Company Act of 1940 (15 U.S.C. 80a-41(e)(2)) 
     is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the violation''.
       (d) Investment Advisers Act of 1940.--
       (1) Money penalties in administrative actions.--Section 
     203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-3(i)(2)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and
       (C) by amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the act or omission, if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.''.

       (2) Money penalties in civil actions.--Section 209(e)(2) of 
     the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)(2)) 
     is amended--
       (A) in subparagraph (A)--
       (i) by striking ``$5,000'' and inserting ``$10,000''; and
       (ii) by striking ``$50,000'' and inserting ``$100,000'';
       (B) in subparagraph (B)--
       (i) by striking ``$50,000'' and inserting ``$100,000''; and
       (ii) by striking ``$250,000'' and inserting ``$500,000''; 
     and

[[Page S275]]

       (C) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``greater of--
       ``(i) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(ii) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the violation''.

     SEC. 10. PENALTIES FOR RECIDIVISTS.

       (a) Securities Act of 1933.--
       (1) Cease-and-desist proceedings.--Section 8A(g)(2) of the 
     Securities Act of 1933 (15 U.S.C. 77h-1(g)(2)) is amended by 
     adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''.
       (2) Injunctions and prosecution of offenses.--Section 
     20(d)(2) of the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) 
     is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (b) Securities Exchange Act of 1934.--
       (1) Civil actions.--Section 21(d)(3)(B) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended by 
     adding at the end the following:
       ``(iv) Fourth tier.--Notwithstanding clauses (i), (ii), and 
     (iii), the maximum amount of penalty for each such violation 
     shall be 3 times the otherwise applicable amount in such 
     clauses if, within the 5-year period preceding such 
     violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (2) Administrative proceedings.--Section 21B(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78u-2(b)) is 
     amended by adding at the end the following:
       ``(4) Fourth tier.--Notwithstanding paragraphs (1), (2), 
     and (3), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such paragraphs if, within the 5-year period preceding such 
     act or omission, the person who committed the act or omission 
     was criminally convicted for securities fraud or became 
     subject to a judgment or order imposing monetary, equitable, 
     or administrative relief in any Commission action alleging 
     fraud by that person.''.
       (c) Investment Company Act of 1940.--
       (1) Ineligibility of certain underwriters and affiliates.--
     Section 9(d)(2) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-9(d)(2)) is amended by adding at the end the 
     following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''.
       (2) Enforcement.--Section 42(e)(2) of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-41(e)(2)) is amended by 
     adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (d) Investment Advisers Act of 1940.--The Investment 
     Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) is amended--
       (1) in section 203(i)(2) (15 U.S.C. 80b-3(i)(2)), by adding 
     at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''; and
       (2) in section 209(e)(2) (15 U.S.C. 80b-9(e)(2)) by adding 
     at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.

     SEC. 11. VIOLATIONS OF INJUNCTIONS AND BARS.

       (a) Securities Act of 1933.--Section 20(d) of the 
     Securities Act of 1933 (15 U.S.C. 77t(d)) is amended--
       (1) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (2) by amending paragraph (4) to read as follows:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 8A.''.
       (b) Securities Exchange Act of 1934.--Section 21(d)(3) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)) is 
     amended--
       (1) in subparagraph (A), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (2) by amending subparagraph (D) to read as follows:
       ``(D) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(i) In general.--Each separate violation of an injunction 
     or order described in clause (ii) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(ii) Injunctions and orders.--Clause (i) shall apply with 
     respect to an action to enforce--

       ``(I) a Federal court injunction obtained pursuant to this 
     title;
       ``(II) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(III) a cease-and-desist order entered by the Commission 
     pursuant to section 21C.''.

       (c) Investment Company Act of 1940.--Section 42(e) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-41(e)) is 
     amended--
       (1) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (2) by amending paragraph (4) to read as follows:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 9(f).''.
       (d) Investment Advisers Act of 1940.--Section 209(e) of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)) is 
     amended--
       (1) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (2) by amending paragraph (4) to read as follows:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to

[[Page S276]]

     comply with the injunction or order shall be deemed a 
     separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 203(k).''.
                                 ______
                                 
  SA 1509. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __ . BILL MAY NOT TAKE EFFECT BEFORE A BUDGET RESOLUTION 
                   IS IN EFFECT.

       Notwithstanding any other provision of this Act, this Act 
     shall not take effect before the date a concurrent resolution 
     on the budget has been agreed to and is in effect for the 
     fiscal year during which this Act was enacted.
                                 ______
                                 
  SA 1510. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 2038, to prohibit Members of Congress and employees 
of Congress from using nonpublic information derived from their 
official positions for personal benefit, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:

     SEC. __. TRANSACTION REPORTING REQUIREMENTS.

       The transaction reporting requirements established by 
     section 101(j) of the Ethics in Government Act of 1978, as 
     added by section 6 of this Act, shall not be construed to 
     apply to a widely held investment fund (whether such fund is 
     a mutual fund, regulated investment company, pension or 
     deferred compensation plan, or other investment fund), if--
       (1)(A) the fund is publicly traded; or
       (B) the assets of the fund are widely diversified; and
       (2) the reporting individual neither exercises control over 
     nor has the ability to exercise control over the financial 
     interests held by the fund.

                          ____________________