[Congressional Record (Bound Edition), Volume 155 (2009), Part 8]
[Senate]
[Pages 10827-10834]
[From the U.S. Government Publishing Office, www.gpo.gov]




               FRAUD ENFORCEMENT AND RECOVERY ACT OF 2009

  The PRESIDING OFFICER. The Senate will resume consideration of S. 
386, which the clerk will report by title.
  The bill clerk read as follows:

       A bill (S. 386) to improve enforcement of mortgage fraud, 
     securities fraud, financial institution fraud, and other 
     frauds related to federal assistance and relief programs, for 
     the recovery of funds lost to these frauds, and for other 
     purposes.

  Mr. DURBIN. Mr. President, we have on the Senate floor a piece of 
legislation that has broad bipartisan support and that addresses an 
urgent national need.
  Our country has seen a wave of white-collar fraud that has undermined 
the financial and housing markets and shaken our entire economy.
  In recent years, there simply haven't been enough cops on the beat in 
the mortgage and financial markets. After 9/11, the Department of 
Justice, the FBI, and other agencies shifted their attention away from 
financial fraud investigations to focus on other important concerns. At 
the same time, we saw financial deregulation, the boom in subprime and 
exotic mortgages, and the evolution of mortgage-backed securitized 
instruments. These developments created a wealth of opportunities for 
fraudsters to rip off hard-working Americans.
  We know now that there is a wave of fraud sweeping the country. The 
Treasury Department is receiving 5,000 mortgage fraud allegations per 
month. The FBI now has more than 530 open corporate fraud 
investigations, and FBI officials report that their fraud caseload is 
growing exponentially. And Americans have been stunned by recent 
revelations of massive Ponzi schemes and the manipulation of financial 
markets. It is simply unacceptable for this Congress to stand idly by 
and watch these fraudsters rip off the American people. We need to act. 
And we have a bill on the floor of the Senate right now that would take 
strong and effective steps to catch the perpetrators of these frauds 
and protect the taxpayers.
  The Fraud Enforcement and Recovery Act, sponsored by the chairman of 
the Judiciary Committee, Senator Leahy, and the ranking member of the 
Finance Committee, Senator Grassley, is carefully crafted and widely 
supported on both sides of the aisle.
  The bill makes important improvements to the criminal fraud statutes. 
These provisions will strengthen prosecutors' ability to combat fraud 
in the mortgage and financial markets. The bill also puts more cops on 
the beat in the financial markets. It authorizes the hiring of hundreds 
of FBI and SEC investigators to focus on mortgage and financial fraud. 
It provides $100 million for new white-collar prosecutors in U.S. 
attorney offices, and it bolsters the resources of the Criminal, Civil 
and

[[Page 10828]]

Tax Divisions of the Department of Justice.
  These investments in enforcement are likely to pay off in more ways 
than just catching criminals. They will lead to increased restitution 
payments, criminal and civil fines, and monetary recoveries for victims 
and taxpayers. The Justice Department estimates that for every dollar 
spent to prosecute fraud at the Criminal Division, more than $20 is 
ordered in restitution and fines for victims and the government. So 
this bill will pay for itself and then some.
  The legislation also includes a key provision from a bill that 
Senator Grassley and I introduced earlier this year to update the 
Federal False Claims Act. The False Claims Act is known as Lincoln's 
Law. It was signed by President Lincoln in 1863, and since then it has 
enabled the Federal Government and whistleblowers to work together to 
prevent waste, fraud, and abuse of Government funds. The False Claims 
Act has been a powerful antifraud tool. Since 1986, the Federal 
Government and whistleblowers have recovered over $22 billion in monies 
that were fraudulently taken from Government programs. The bill before 
us corrects several court decisions that have misinterpreted the False 
Claims Act and limited its scope. This legislation will help keep 
Lincoln's Law strong for the 21st century.
  I am proud to cosponsor the antifraud legislation we are considering. 
It is going to pass this body by a wide margin, and it is going to help 
the American people. But it has been held up by a small number of 
Senators from across the aisle. These Senators have delayed a vote on 
final passage of this bill, because they want to offer amendments that 
have nothing to do with the bill. Why are these Senators standing in 
the way of legislation that will fight fraud in our markets and curb 
waste in Government programs? I can't understand it, and I don't think 
the American people can understand it.
  These Senators should be cosponsoring this legislation, not blocking 
it. Are these Senators aware of the mortgage rescue scams that are 
catching more and more Americans every day? Do they know that con 
artists are out there right now promising that they can help families 
who are facing foreclosure save their homes--all for a supposedly small 
upfront fee? Desperate homeowners are tricked into paying these con 
artists, who then skip town and leave the family worse off than before. 
Are these Senators aware of the financial scams being perpetrated on 
senior citizens and military families? What about the investors who 
have lost their life savings to Ponzi schemes and market manipulators? 
Shouldn't we put more cops on the beat to catch these crooks? Shouldn't 
we bolster our enforcement agencies so they can prosecute these cases 
and get restitution for the victims? I think we should.
  The Fraud Enforcement and Recovery Act takes important steps to help 
law enforcement agencies investigate and prosecute the financial fraud 
that has surged in recent years. It will also deter those who might 
commit fraud in the future. This measure will help restore confidence 
in our economy and restore millions of dollars in ill-gotten gains to 
victims and taxpayers.
  I hope we can vote quickly on final passage of this bill. America 
needs it, and we need to pass it.
  Mr. LEAHY. Mr. President, today we finally come to a vote on final 
passage of the bipartisan Fraud Enforcement and Recovery Act of 2009, 
S. 386. It has taken longer to arrive at this point than it should 
have, and we have had to consider too many extraneous issues that would 
have been better suited for another debate. We nonetheless stand ready 
to make real progress. This bill is a step toward holding accountable 
those who have caused so much damage to our economy. It should help 
protect our economic recovery efforts from the scourge of fraud.
  Our bill will strengthen the Federal Government's capacity to 
investigate and prosecute the kinds of financial frauds that have so 
severely undermined our economy and hurt so many hard-working people in 
this country. These frauds have robbed people of their savings, their 
retirement accounts, their college funds for their children, their 
equity, and costs too many their homes. These are serious matters that 
should not be delayed. The bill will help provide the resources and 
legal tools needed to police and deter fraud and to protect taxpayer-
funded economic recovery efforts now being implemented.
  I end as I began by commending Senator Grassley, our lead cosponsor, 
for his leadership in helping to write this legislation and to manage 
it on the floor. He has once again proven his dedication to protecting 
taxpayer funds by deterring, investigating, and prosecuting fraud.
  I thank our many cosponsors for their steadfast support for this 
effort. Senators Kaufman and Klobuchar have worked particularly hard to 
ensure that this important fraud enforcement bill becomes law, and I 
thank them for their efforts. Senator Kaufman has spoken and written 
about the need for fraud enforcement all year. Senator Klobuchar, a 
former prosecutor as I am, understands how important it is to have 
sufficient resources on the ground committed to deterring and 
discovering these devastating crimes. We have been joined by a growing 
bipartisan group of cosponsors that now stands at 27.
  And I thank the majority leader and our underappreciated cloakroom 
and floor staff for all that they have done to bring us to this moment. 
The majority leader had to file for cloture to even proceed to this 
bipartisan fraud enforcement bill last week, and then had to file a 
second cloture petition late Thursday night when Republicans would not 
agree to a finite list of amendments to be considered in order to 
complete action on the bill. A matter like this should not require one 
cloture vote, let alone two. A matter like that that is designed to 
help law enforcement and protect the savings of Americans should be 
acted upon by the Senate without partisanship, delay, and obstruction.
  Mortgage fraud has reached near epidemic levels in this country. 
Reports of mortgage fraud are up 682 percent over the past 5 years and 
more than 2800 percent in the past decade. And massive, new corporate 
frauds, like the $65 billion dollar Ponzi scheme perpetrated by Bernard 
Madoff, are being uncovered as the economy has turned worse, exposing 
many investors to massive losses. We can now finally take action to 
better protect the victims of these frauds. These victims include 
homeowners who have been fleeced by unscrupulous mortgage brokers who 
promise to help them, only to leave them unable to keep their homes and 
in even further debt than before. They include retirees who have lost 
their life savings in stock scams and Ponzi schemes, which have come to 
light as the markets have fallen and corporations have collapsed. They 
also include American taxpayers who have invested billions of dollars 
to restore our economy and who expect us to protect that investment and 
make sure those funds are not exploited by fraud.
  Federal law enforcement needs this legislation now to combat fraud 
effectively. In the last 3 years, the number of criminal mortgage fraud 
investigations opened by the Federal Bureau of Investigation, FBI, has 
more than doubled, and the FBI anticipates that number may double yet 
again. Despite this increase, the FBI currently has fewer than 250 
special agents nationwide assigned to financial fraud cases, which is 
only a quarter of the number the Bureau had more than a decade ago at 
the time of the savings and loan crisis. At the current levels, the FBI 
cannot even begin to investigate the more than 5000 mortgage fraud 
allegations referred by the Treasury Department each month.
  In the late 1980s and early 1990s, Congress responded to the collapse 
of the federally insured savings and loan industry by passing 
legislation similar to the bill we consider today, to hire prosecutors 
and agents. While the current financial crisis dwarfs in scale to the 
savings and loan collapse, we are poised to once again take decisive 
action.

[[Page 10829]]

  At its core, the Fraud Enforcement and Recovery Act authorizes the 
resources necessary for the Justice Department, the FBI, and other 
investigative agencies to respond to this crisis. In total, the bill 
authorizes $245 million a year over the next 2 years to hire more than 
300 Federal agents, more than 200 prosecutors, and another 200 forensic 
analysts and support staff to rebuild our Nation's white collar fraud 
enforcement efforts. While the number of fraud cases is now 
skyrocketing, we need to remember that resources were shifted away from 
fraud investigations after 9/11. Today, the ranks of fraud 
investigators and prosecutors are drastically understocked, and 
thousands of fraud allegations are going unexamined each month. We need 
to restore our capacity to fight fraud in these hard economic times, 
and this bill will do that.
  Fraud enforcement is an excellent investment for the American 
taxpayer. According to recent data provided by the Justice Department, 
the Government recovers more than $20 dollars for every dollar spent on 
criminal fraud litigation. Strengthening criminal and civil fraud 
enforcement is a sound investment, and this legislation will not only 
pay for itself but will bring in money for the Federal Government.
  In addition, the Fraud Enforcement and Recovery Act makes a number of 
straightforward, important improvements to fraud and money laundering 
statutes to strengthen prosecutors' ability to combat this growing wave 
of fraud. It also strengthens one of the most potent civil tools we 
have for rooting out fraud in Government--the False Claims Act. The 
Federal Government has recovered more than $22 billion using the False 
Claims Act since it was modernized through the work of Senator Grassley 
in 1986, but this bill will make the statute still more effective.
  The Fraud Enforcement and Recovery Act has broad bipartisan support, 
as well as the strong backing of the Justice Department and the Obama 
administration. As explained in the Statement of Administration Policy: 
``The Administration strongly supports enactment of S. 386. Its 
provisions would provide Federal investigators and prosecutors with 
significant new criminal and civil tools and resources that would 
assist in holding accountable those who have committed financial 
fraud.''
  Strengthening fraud enforcement is a key priority for President 
Obama. During the campaign, President Obama promised to ``crack down on 
mortgage fraud professionals found guilty of fraud by increasing 
enforcement and creating new criminal penalties.'' And the President 
made good on this promise in his budget to Congress by calling for 
additional FBI agents ``to investigate mortgage fraud and white collar 
crime,'' as well as hiring more Federal prosecutors and civil attorneys 
``to protect investors, the market, and the Federal Government's 
investment of resources in the financial crisis, and the American 
public.'' The initial Senate-passed recovery package included 
additional money for the FBI for this purpose, but it was cut during 
the negotiations that led to its passage. This bill, the bipartisan 
Fraud Enforcement and Recovery Act, is our chance to authorize the 
necessary additional resources to detect, fight, and deter fraud that 
robs the American people and American taxpayers of their funds.
  This is and has been bipartisan legislation. Our cosponsors come from 
across the political spectrum--Democrats, Republicans, and an 
Independent. What we share is a commitment to fight fraud and the 
horrible costs it is imposing on hard-working Americans. I believe that 
our efforts are supported by most Americans. No one should want to see 
taxpayer money intended to fund economic recovery efforts diverted by 
fraud. No one should want to see those who engaged in mortgage fraud 
escape accountability. We need to pass this bill and give law 
enforcement the resources and tools they desperately need.
  During these first months of the year, the Judiciary Committee has 
concentrated on what we can do legislatively to assist in the economic 
recovery. Already we have considered and reported this fraud 
enforcement bill, the patent reform bill, and worked to ensure that law 
enforcement assistance was included in the economic recovery 
legislation.
  The recovery efforts are generating signs of economic progress. That 
is good. That is necessary. But that is not enough. We need to make 
sure that we are spending our public resources wisely and that they are 
not being dissipated by fraud. We need to ensure that those responsible 
for the downturn through fraudulent acts in financial markets and the 
housing market are held to account. That is why we need to enact the 
Fraud Enforcement and Recovery Act.
  Two decades ago we responded during the savings and loan crisis by 
hiring more agents, analysts, and prosecutors and allocating the 
resources needed to catch those who took advantage to profit through 
fraud. We need to do so again.
  The bill has also received the support of the Fraternal Order of 
Police, the Federal Law Enforcement Officers Association, the National 
Association of Assistant United States Attorneys, the Association of 
Certified Tax Examiners, and Taxpayers Against Fraud. It was strongly 
endorsed by an editorial in The New York Times on April 18, 2009.
  I thank Senators for joining with us to take decisive action to 
protect American families and our economy from fraud by passing this 
commonsense bill now.
  Mr. LEVIN. Mr. President, I am a cosponsor of the Fraud Enforcement 
and Recovery Act of 2009, and today I vote for its enactment into law. 
In these difficult economic times, this bill is needed to strengthen 
the Federal Government's ability to combat mortgage, securities, and 
other types of financial fraud.
  This act would put more fraud investigators, regulators, and 
prosecutors on the beat. It would authorize increased funding to the 
Department of Justice, the Federal Bureau of Investigation, the 
Securities and Exchange Commission, the U.S. Postal Service, the HUD 
inspector general, and the Secret Service. It would also ensure that 
the public will be able to see the results of these investments by 
requiring the agencies to submit a joint report to Congress on amounts 
spent on fraud investigations, as well as amounts recovered.
  This act would also make clear that Federal mortgage fraud laws cover 
mortgage brokers and their agents--some of whom have wreaked a terrible 
toll in my State of Michigan and the country. Their misconduct has 
included misrepresenting mortgage terms to borrowers, convincing 
families to refinance their homes with mortgages that would leave them 
worse off financially, reaping hidden fees, and even obtaining 
fraudulent mortgages and stealing the funds. It is long past time to 
clarify and strengthen the laws that punish such wrongdoing.
  The act would strengthen taxpayer protections by ensuring that moneys 
expended through the Troubled Assets Relief Program, TARP, are 
protected by the Federal fraud statute. In addition, it would expand 
securities antifraud provisions to cover fraud involving options and 
futures contracts for commodities.
  The act would strengthen our antimoney laundering regime. The current 
money laundering statute outlaws financial transactions using the 
proceeds from certain listed unlawful activities. This act would add 
tax evasion to that list. The threat of criminal liability for money 
laundering is a powerful tool for prosecutors to use in their battles 
with those who dodge their tax obligations.
  Additionally, recent court decisions have misdefined the term 
``proceeds'' from the money laundering statute to mean only the net 
receipts from unlawful activities. By defining that term so narrowly, 
these court decisions have reduced the efficacy of the statute: 
preventing prosecutions for numerous crimes. This act will fix these 
decisions and explicitly define ``proceeds'' to include not only net 
but gross receipts from unlawful activities. This small

[[Page 10830]]

modification will restore the money laundering statute to its rightful 
place as a critical tool in the battles against fraud and illicit 
activity.
  These provisions are useful additions to Federal antimoney laundering 
statutes, but we should not stop here. We should also make sure that 
our antimoney laundering laws apply to all of the entities that may be 
involved in money laundering. I look forward to working with the Senate 
to update our antimoney laundering requirements, and continue the 
efforts to stop fraud, illicit activity, and tax evasion.
  This act will make an important contribution to ongoing efforts to 
root out fraud--against individuals and against our Government. It is 
an important part of the effort to help put our country back on solid 
economic footing, and I commend the bill sponsors for their work on 
this legislation.
  The PRESIDING OFFICER. The question is on the passage of S. 386, as 
amended.
  The yeas and nays were previously ordered.
  The clerk will call the roll.
  The bill clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Massachusetts (Mr. 
Kennedy) and the Senator from West Virginia (Mr. Rockefeller) are 
necessarily absent.
  I further announce that, if present and voting, the Senator from West 
Virginia (Mr. Rockefeller) would vote ``aye.''
  Mr. KYL. The following Senator is necessarily absent: the Senator 
from Alabama (Mr. Sessions).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 92, nays 4, as follows:

                      [Rollcall Vote No. 171 Leg.]

                                YEAS--92

     Akaka
     Alexander
     Barrasso
     Baucus
     Bayh
     Begich
     Bennet
     Bennett
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Bunning
     Burr
     Burris
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Cochran
     Collins
     Conrad
     Corker
     Cornyn
     Crapo
     Dodd
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Gillibrand
     Graham
     Grassley
     Gregg
     Hagan
     Harkin
     Hatch
     Hutchison
     Inouye
     Isakson
     Johanns
     Johnson
     Kaufman
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCain
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Sanders
     Schumer
     Shaheen
     Shelby
     Snowe
     Specter
     Stabenow
     Tester
     Thune
     Udall (CO)
     Udall (NM)
     Vitter
     Voinovich
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--4

     Coburn
     DeMint
     Inhofe
     Kyl

                             NOT VOTING--3

     Kennedy
     Rockefeller
     Sessions
  The bill (S. 386), as amended, was passed, as follows:

                                 S. 386

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

          TITLE I--FRAUD ENFORCEMENT AND RECOVERY ACT OF 2009

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fraud Enforcement and 
     Recovery Act of 2009'' or ``FERA''.

     SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, AND 
                   FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.

       (a) Definition of Financial Institution Amended To Include 
     Mortgage Lending Business.--Section 20 of title 18, United 
     States Code, is amended--
       (1) in paragraph (8), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     ``; or''; and
       (3) by inserting at the end the following:
       ``(10) a mortgage lending business (as defined in section 
     27 of this title) or any person or entity that makes in whole 
     or in part a federally related mortgage loan as defined in 12 
     U.S.C. 2602(1).''.
       (b) Mortgage Lending Business Defined.--
       (1) In general.--Chapter 1 of title 18, United States Code, 
     is amended by inserting after section 26 the following:

     ``Sec. 27. Mortgage lending business defined

       ``In this title, the term `mortgage lending business' means 
     an organization which finances or refinances any debt secured 
     by an interest in real estate, including private mortgage 
     companies and any subsidiaries of such organizations, and 
     whose activities affect interstate or foreign commerce.''.
       (2) Chapter analysis.--The chapter analysis for chapter 1 
     of title 18, United States Code, is amended by adding at the 
     end the following:

``27. Mortgage lending business defined.''.

       (c) False Statements in Mortgage Applications Amended To 
     Include False Statements by Mortgage Brokers and Agents of 
     Mortgage Lending Businesses.--Section 1014 of title 18, 
     United States Code, is amended by--
       (1) striking ``or'' after ``the International Banking Act 
     of 1978),''; and
       (2) inserting after ``section 25(a) of the Federal Reserve 
     Act'' the following: ``or a mortgage lending business whose 
     activities affect interstate or foreign commerce, or any 
     person or entity that makes in whole or in part a federally 
     related mortgage loan as defined in 12 U.S.C. 2602(1)''.
       (d) Major Fraud Against the Government Amended To Include 
     Economic Relief and Troubled Asset Relief Program Funds.--
     Section 1031(a) of title 18, United States Code, is amended 
     by--
       (1) inserting after ``or promises, in'' the following: 
     ``any grant, contract, subcontract, subsidy, loan, guarantee, 
     insurance or other form of Federal assistance, including 
     through the Troubled Assets Relief Program, an economic 
     stimulus, recovery or rescue plan provided by the Government, 
     or the Government's purchase of any troubled asset as defined 
     in the Emergency Economic Stabilization Act of 2008, or in'';
       (2) striking ``the contract, subcontract'' and inserting 
     ``such grant, contract, subcontract, subsidy, loan, 
     guarantee, insurance or other form of Federal assistance,''; 
     and
       (3) striking ``for such property or services''.
       (e) Securities Fraud Amended To Include Fraud Involving 
     Options and Futures in Commodities.--
       (1) In general.--Section 1348 of title 18, United States 
     Code, is amended--
       (A) in the caption, by inserting ``and commodities'' after 
     ``Securities'';
       (B) by inserting ``any commodity for future delivery, or 
     any option on a commodity for future delivery, or'' after 
     ``any person in connection with''; and
       (C) by inserting ``any commodity for future delivery, or 
     any option on a commodity for future delivery, or'' after 
     ``in connection with the purchase or sale of''.
       (2) Chapter analysis.--The item for section 1348 in the 
     chapter analysis for chapter 63 of title 18, United States 
     Code, is amended by inserting ``and commodities'' after 
     ``Securities''.
       (f) Money Laundering Amended To Define Proceeds of 
     Specified Unlawful Activity.--
       (1) Money laundering.--Section 1956(c) of title 18, United 
     States Code, is amended--
       (A) in paragraph (8), by striking the period and inserting 
     ``; and''; and
       (B) by inserting at the end the following:
       ``(9) the term `proceeds' means any property derived from 
     or obtained or retained, directly or indirectly, through some 
     form of unlawful activity, including the gross receipts of 
     such activity.''.
       (2) Monetary transactions.--Section 1957(f) of title 18, 
     United States Code, is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) the terms `specified unlawful activity' and 
     `proceeds' shall have the meaning given those terms in 
     section 1956 of this title.''.
       (g) Making the International Money Laundering Statute Apply 
     to Tax Evasion.--Section 1956(a)(2)(A) of title 18, United 
     States Code, is amended by--
       (1) inserting ``(i)'' before ``with the intent to 
     promote''; and
       (2) adding at the end the following:
       ``(ii) with the intent to engage in conduct constituting a 
     violation of section 7201 or 7206 of the Internal Revenue 
     Code of 1986; or''.

     SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECUTORS 
                   FOR MORTGAGE FRAUD, SECURITIES FRAUD, AND OTHER 
                   CASES INVOLVING FEDERAL ECONOMIC ASSISTANCE.

       (a) In General.--
       (1) Authorization.--There is authorized to be appropriated 
     to the Attorney General, to remain available until expended, 
     $165,000,000 for each of the fiscal years 2010 and 2011, for 
     the purposes of investigations, prosecutions, and civil 
     proceedings involving Federal assistance programs and 
     financial institutions, including financial institutions to 
     which this Act and amendments made by this Act apply.
       (2) Allocations.--With respect to fiscal years 2010 and 
     2011, the amount authorized to be appropriated under 
     paragraph (1) shall be allocated as follows:
       (A) Federal Bureau of Investigation: $75,000,000 for fiscal 
     year 2010 and $65,000,000 for fiscal year 2011.
       (B) The offices of the United States Attorneys: 
     $50,000,000.
       (C) The criminal division of the Department of Justice: 
     $20,000,000.

[[Page 10831]]

       (D) The civil division of the Department of Justice: 
     $15,000,000.
       (E) The tax division of the Department of Justice: 
     $5,000,000.
       (b) Additional Appropriations for the Postal Inspection 
     Service.--There is authorized to be appropriated to the 
     Postal Inspection Service of the United States Postal 
     Service, $30,000,000 for each of the fiscal years 2010 and 
     2011 for investigations involving Federal assistance programs 
     and financial institutions, including financial institutions 
     to which this Act and amendments made by this Act apply.
       (c) Additional Appropriations for the Inspector General for 
     the Department of Housing and Urban Development.--There is 
     authorized to be appropriated to the Inspector General of the 
     Department of Housing and Urban Development, $30,000,000 for 
     each of the fiscal years 2010 and 2011 for investigations 
     involving Federal assistance programs and financial 
     institutions, including financial institutions to which this 
     Act and amendments made by this Act apply.
       (d) Additional Appropriations for the United States Secret 
     Service.--There is authorized to be appropriated to the 
     United States Secret Service of the Department of Homeland 
     Security, $20,000,000 for each of the fiscal years 2010 and 
     2011 for investigations involving Federal assistance programs 
     and financial institutions, including financial institutions 
     to which this Act and amendments made by this Act apply.
       (e) Use of Funds.--The funds authorized to be appropriated 
     under subsections (a), (b), (c), and (d) shall be limited to 
     cover the costs of each listed agency or department for 
     investigating possible criminal, civil, or administrative 
     violations and for prosecuting criminal, civil, or 
     administrative proceedings involving financial crimes and 
     crimes against Federal assistance programs, including 
     mortgage fraud, securities fraud, financial institution 
     fraud, and other frauds related to Federal assistance and 
     relief programs.
       (f) Report to Congress.--Following the final expenditure of 
     all funds appropriated under this section that were 
     authorized by subsections (a), (b), (c), and (d) the Attorney 
     General, in consultation with the United States Postal 
     Inspection Service, the Inspector General for the Department 
     of Housing and Urban Development, and the Secretary of 
     Homeland Security, shall submit a joint report to Congress 
     identifying--
       (1) the amounts expended under subsections (a), (b), (c), 
     and (d) and a certification of compliance with the 
     requirements listed in subsection (e); and
       (2) the amounts recovered as a result of criminal or civil 
     restitution, fines, penalties, and other monetary recoveries 
     resulting from criminal, civil, or administrative proceedings 
     and settlements undertaken with funds authorized by this Act.
       (g) Additional Appropriations for the Securities and 
     Exchange Commission.--
       (1) In general.--There is authorized to be appropriated to 
     the Securities and Exchange Commission, $20,000,000 for each 
     of the fiscal years 2010 and 2011 for investigations and 
     enforcement proceedings involving financial institutions, 
     including financial institutions to which this Act and 
     amendments made by this Act apply.
       (2) Inspector general.--There is authorized to be 
     appropriated to the Securities and Exchange Commission, 
     $1,000,000 for each of the fiscal years 2010 and 2011 for the 
     salaries and expenses of the Office of the Inspector General 
     of the Securities and Exchange Commission.

     SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE 
                   ORIGINAL INTENT OF THE LAW.

       (a) Clarification of the False Claims Act.--Section 3729 of 
     title 31, United States Code, is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Liability for Certain Acts.--
       ``(1) In general.--Subject to paragraph (2), any person 
     who--
       ``(A) knowingly presents, or causes to be presented, a 
     false or fraudulent claim for payment or approval;
       ``(B) knowingly makes, uses, or causes to be made or used, 
     a false record or statement material to a false or fraudulent 
     claim;
       ``(C) conspires to commit a violation of subparagraph (A), 
     (B), (D), (E), (F), or (G);
       ``(D) has possession, custody, or control of property or 
     money used, or to be used, by the Government and knowingly 
     delivers, or causes to be delivered, less than all of that 
     money or property;
       ``(E) is authorized to make or deliver a document 
     certifying receipt of property used, or to be used, by the 
     Government and, intending to defraud the Government, makes or 
     delivers the receipt without completely knowing that the 
     information on the receipt is true;
       ``(F) knowingly buys, or receives as a pledge of an 
     obligation or debt, public property from an officer or 
     employee of the Government, or a member of the Armed Forces, 
     who lawfully may not sell or pledge property; or
       ``(G) knowingly makes, uses, or causes to be made or used, 
     a false record or statement material to an obligation to pay 
     or transmit money or property to the Government, or knowingly 
     conceals or knowingly and improperly avoids or decreases an 
     obligation to pay or transmit money or property to the 
     Government,

     is liable to the United States Government for a civil penalty 
     of not less than $5,000 and not more than $10,000, as 
     adjusted by the Federal Civil Penalties Inflation Adjustment 
     Act of 1990 (28 U.S.C. 2461 note; Public Law 104-410), plus 3 
     times the amount of damages which the Government sustains 
     because of the act of that person.
       ``(2) Reduced damages.--If the court finds that--
       ``(A) the person committing the violation of this 
     subsection furnished officials of the United States 
     responsible for investigating false claims violations with 
     all information known to such person about the violation 
     within 30 days after the date on which the defendant first 
     obtained the information;
       ``(B) such person fully cooperated with any Government 
     investigation of such violation; and
       ``(C) at the time such person furnished the United States 
     with the information about the violation, no criminal 
     prosecution, civil action, or administrative action had 
     commenced under this title with respect to such violation, 
     and the person did not have actual knowledge of the existence 
     of an investigation into such violation,

     the court may assess not less than 2 times the amount of 
     damages which the Government sustains because of the act of 
     that person.
       ``(3) Costs of civil actions.--A person violating this 
     subsection shall also be liable to the United States 
     Government for the costs of a civil action brought to recover 
     any such penalty or damages.'';
       (2) by striking subsections (b) and (c) and inserting the 
     following:
       ``(b) Definitions.--For purposes of this section--
       ``(1) the terms `knowing' and `knowingly'--
       ``(A) mean that a person, with respect to information--
       ``(i) has actual knowledge of the information;
       ``(ii) acts in deliberate ignorance of the truth or falsity 
     of the information; or
       ``(iii) acts in reckless disregard of the truth or falsity 
     of the information; and
       ``(B) require no proof of specific intent to defraud;
       ``(2) the term `claim'--
       ``(A) means any request or demand, whether under a contract 
     or otherwise, for money or property and whether or not the 
     United States has title to the money or property, that--
       ``(i) is presented to an officer, employee, or agent of the 
     United States; or
       ``(ii) is made to a contractor, grantee, or other 
     recipient, if the money or property is to be spent or used on 
     the Government's behalf or to advance a Government program or 
     interest, and if the United States Government--

       ``(I) provides or has provided any portion of the money or 
     property requested or demanded; or
       ``(II) will reimburse such contractor, grantee, or other 
     recipient for any portion of the money or property which is 
     requested or demanded; and

       ``(B) does not include requests or demands for money or 
     property that the Government has paid to an individual as 
     compensation for Federal employment or as an income subsidy 
     with no restrictions on that individual's use of the money or 
     property;
       ``(3) the term `obligation' means an established duty, 
     whether or not fixed, arising from an express or implied 
     contractual, grantor-grantee, or licensor-licensee 
     relationship, from a fee-based or similar relationship, from 
     statute or regulation, or from the retention of any 
     overpayment; and
       ``(4) the term `material' means having a natural tendency 
     to influence, or be capable of influencing, the payment or 
     receipt of money or property.'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively; and
       (4) in subsection (c), as redesignated, by striking 
     ``subparagraphs (A) through (C) of subsection (a)'' and 
     inserting ``subsection (a)(2)''.
       (b) Effective Date and Application.--The amendments made by 
     this section shall take effect on the date of enactment of 
     this Act and shall apply to conduct on or after the date of 
     enactment, except that subparagraph (B) of section 3729(a)(1) 
     of title 31, United States Code, as added by subsection 
     (a)(1), shall take effect as if enacted on June 7, 2008, and 
     apply to all claims under the False Claims Act (31 U.S.C. 
     3729 et seq.) that are pending on or after that date.

     SEC. 5. FINANCIAL MARKETS COMMISSION.

       (a) Establishment of Commission.--There is established in 
     the legislative branch the Financial Markets Commission (in 
     this section referred to as the ``Commission'') to examine 
     all causes, domestic and global, of the current financial and 
     economic crisis in the United States.
       (b) Composition of the Commission.--
       (1) Members.--The Commission shall be composed of 10 
     members, of whom--
       (A) 2 members shall be appointed by the majority leader of 
     the Senate;
       (B) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (C) 1 member shall be appointed by the minority leader of 
     the Senate;

[[Page 10832]]

       (D) 1 member shall be appointed by the minority leader of 
     the House of Representatives;
       (E) 1 member shall be appointed by the Chairman of the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (F) 1 member shall be appointed by the ranking member of 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (G) 1 member shall be appointed by the chairman of the 
     Committee on Financial Services of the House of 
     Representatives; and
       (H) 1 member shall be appointed by the ranking member of 
     the Committee on Financial Services of the House of 
     Representatives.
       (2) Qualifications; limitation.--
       (A) In general.--Individuals appointed to the Commission 
     shall be United States citizens having significant experience 
     in such fields as banking, regulation of markets, taxation, 
     finance, economics and housing.
       (B) Limitation.--No person who is a member of Congress or 
     an officer or employee of the Federal Government or any State 
     or local government may serve as a member of the Commission.
       (3) Chairperson; vice chairperson.--
       (A) In general.--Subject to the requirements of 
     subparagraph (B), the Chairperson of the Commission shall be 
     selected jointly by the Majority Leader of the Senate and the 
     Speaker of the House of Representatives, and the Vice 
     Chairperson shall be selected jointly by the Minority Leader 
     of the Senate and the Minority Leader of the House of 
     Representatives.
       (B) Political party affiliation.--The Chairperson and Vice 
     Chairperson of the Commission may not be from the same 
     political party.
       (4) Initial meeting.--If, 45 days after the date of 
     enactment of this Act, 4 or more members of the Commission 
     have been appointed, those members who have been appointed 
     may meet and, if necessary, select a temporary Chairperson 
     and Vice Chairperson, who may begin the operations of the 
     Commission, including the hiring of staff.
       (5) Quorum; vacancies.--After the initial meeting of the 
     Commission, the Commission shall meet upon the call of the 
     Chairperson or a majority of its members. Six members of the 
     Commission shall constitute a quorum. Any vacancy on the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner in which the original appointment was 
     made.
       (c) Functions of the Commission.--The functions of the 
     Commission are--
       (1) to examine the causes of the current financial and 
     economic crisis in the United States, including the role, if 
     any, of--
       (A) fraud and abuse in the financial sector;
       (B) Federal and State financial regulators, including the 
     extent to which they enforced, or failed to enforce 
     statutory, regulatory, or supervisory requirements;
       (C) the global imbalance of savings, international capital 
     flows, and fiscal imbalances of various governments;
       (D) monetary policy and the availability and terms of 
     credit;
       (E) accounting practices, including, mark-to-market and 
     fair value rules, and treatment of off-balance sheet 
     vehicles;
       (F) tax treatment of financial products and investments;
       (G) capital requirements and regulations on leverage and 
     liquidity, including the capital structures of regulated and 
     non-regulated financial entities;
       (H) credit rating agencies;
       (I) lending practices and securitization, including the 
     originate-to-distribute model for extending credit and 
     transferring risk;
       (J) affiliations between insured depository institutions 
     and securities, insurance, and other types of nonbanking 
     companies;
       (K) market participant expectations that certain 
     institutions were ``too-big-to-fail'';
       (L) corporate governance, including the impact of company 
     conversions from partnerships to corporations;
       (M) compensation structures;
       (N) changes in compensation for employees of financial 
     companies, as compared to compensation for others with 
     similar skill sets in the labor market;
       (O) Federal housing policy;
       (P) derivatives and unregulated financial products and 
     practices;
       (Q) short-selling;
       (R) financial institution reliance on numerical models, 
     including risk models and credit ratings;
       (S) the legal and regulatory structure governing financial 
     institutions;
       (T) the legal and regulatory structure governing investor 
     protection;
       (U) financial institutions and government-sponsored 
     enterprises;
       (V) the reliance on credit ratings by Federal financial 
     regulators, and the use of credit ratings in financial 
     regulation; and
       (W) the quality of due diligence undertaken by financial 
     institutions;
       (2) to examine the causes of the collapse of each major 
     financial institution that failed (including institutions 
     that were acquired to prevent their failure) or was likely to 
     have failed if not for the receipt of exceptional Government 
     assistance from the Department of the Treasury during the 
     period beginning in August 2007 through April 2009;
       (3) to submit a report under subsection (g);
       (4) to refer to the Attorney General of the United States 
     and any appropriate State attorney general any person that 
     the Commission finds may have violated the laws of the United 
     States in relation to such crisis; and
       (5) to review and build upon the record of the Committee on 
     Banking, Housing, and Urban Affairs of the Senate, the 
     Committee on Financial Services of the House of 
     Representatives, other Congressional committees, the 
     Government Accountability Office, and other legislative 
     panels with respect to the current financial and economic 
     crisis.
       (d) Powers of the Commission.--
       (1) Hearings and evidence.--The Commission may, for 
     purposes of carrying out this section--
       (A) hold hearings, sit and act at times and places, take 
     testimony, receive evidence, and administer oaths; and
       (B) require, by subpoena or otherwise, the attendance and 
     testimony of witnesses and the production of books, records, 
     correspondence, memoranda, papers, and documents.
       (2) Subpoenas.--
       (A) Service.--Subpoenas issued under paragraph (1)(B) may 
     be served by any person designated by the Commission.
       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under paragraph (1)(B), the United 
     States district court for the judicial district in which the 
     subpoenaed person resides, is served, or may be found, or 
     where the subpoena is returnable, may issue an order 
     requiring such person to appear at any designated place to 
     testify or to produce documentary or other evidence. Any 
     failure to obey the order of the court may be punished by the 
     court as a contempt of that court.
       (ii) Additional enforcement.--Sections 102 through 104 of 
     the Revised Statutes of the United States (2 U.S.C. 192 
     through 194) shall apply in the case of any failure of any 
     witness to comply with any subpoena or to testify when 
     summoned under the authority of this section.
       (3) Contracting.--The Commission may enter into contracts 
     to enable the Commission to discharge its duties under this 
     section.
       (4) Information from federal agencies and other entities.--
       (A) In general.--The Commission may secure directly from 
     any department, agency, or instrumentality of the United 
     States any information related to any inquiry of the 
     Commission conducted under this section, including 
     information of a confidential nature (which the Commission 
     shall maintain in a secure manner). Each such department, 
     agency, or instrumentality shall furnish such information 
     directly to the Commission upon request.
       (B) Other entities.--It is the sense of the Congress that 
     the Commission should seek testimony or information from 
     principals and other representatives of government agencies 
     and private entities that were significant participants in 
     the United States and global financial and housing markets 
     during the time period examined by the Commission.
       (5) Funding.--The Secretary of the Treasury shall provide, 
     out of money previously appropriated, $5,000,000 to the 
     Commission to carry out this section, to remain available 
     until expended or until termination of the Commission under 
     subsection (h).
       (6) Donations of goods and services.--The Commission may 
     accept, use, and dispose of gifts or donations of services or 
     property.
       (7) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.
       (8) Powers of subcommittees, members, and agents.--Any 
     subcommittee, member, or agent of the Commission may, if 
     authorized by the Commission, take any action which the 
     Commission is authorized to take by this section.
       (e) Staff of the Commission.--
       (1) Director.--The Commission shall have a Director who 
     shall be appointed by the Chairperson and the Vice 
     Chairperson, acting jointly.
       (2) Staff.--The Chairperson and the Vice Chairperson may 
     jointly appoint additional personnel, as may be necessary, to 
     enable the Commission to carry out its functions.
       (3) Applicability of certain civil service laws.--The 
     Director and staff of the Commission may be appointed without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates, except that no 
     rate of pay fixed under this paragraph may exceed the 
     equivalent of that payable for a position at level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code. Any individual appointed under paragraph (1) or 
     (2) shall be treated as an employee for purposes of chapters 
     63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that title.
       (4) Detailees.--Any Federal Government employee may be 
     detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the

[[Page 10833]]

     rights, status, and privileges of his or her regular 
     employment without interruption.
       (5) Consultant services.--The Commission is authorized to 
     procure the services of experts and consultants in accordance 
     with section 3109 of title 5, United States Code, but at 
     rates not to exceed the daily rate paid a person occupying a 
     position at level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.
       (f) Compensation and Travel Expenses.--
       (1) Compensation.--Each member of the Commission may be 
     compensated at a rate not to exceed the daily equivalent of 
     the annual rate of basic pay in effect for a position at 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day during which that 
     member is engaged in the actual performance of the duties of 
     the Commission.
       (2) Travel expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Commission, members of the Commission shall be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     in the same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 5703(b) 
     of title 5, United States Code.
       (g) Report of the Commission; Appearance Before and 
     Consultations With Congress.--
       (1) Report.--On December 15, 2010, the Commission shall 
     submit to the President and to Congress a report containing 
     the findings and conclusions of the Commission on the causes 
     of the current financial and economic crisis in the United 
     States.
       (2) Institution-specific reports authorized.--At the 
     discretion of the chairperson of the Commission, the report 
     under paragraph (1) may include reports or specific findings 
     on any financial institution examined by the Commission under 
     subsection (c)(2).
       (3) Appearance before congress.--The chairperson of the 
     Commission shall, not later than 120 days after the date of 
     submission of the final reports under paragraph (1), appear 
     before the Committee on Banking, Housing, and Urban Affairs 
     of the Senate and the Committee on Financial Services of the 
     House of Representatives regarding such reports and the 
     findings of the Commission.
       (4) Consultations with congress.--The Commission shall 
     consult with the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives, and may consult with other 
     Committees of Congress, for purposes of informing Congress on 
     the work of the Commission.
       (h) Termination of Commission.--
       (1) In general.--The Commission, and all the authorities of 
     this section, shall terminate 60 days after the date on which 
     the final report is submitted under subsection (g).
       (2) Administrative activities before termination.--The 
     Commission may use the 60-day period referred to in paragraph 
     (1) for the purpose of concluding its activities, including 
     providing testimony to committees of Congress concerning its 
     reports and disseminating the final report submitted under 
     subsection (g).

   TITLE II--SELECT COMMITTEE ON INVESTIGATION OF THE ECONOMIC CRISIS

     SEC. 201. FINDINGS.

       The Senate finds the following:
       (1) The United States is currently facing an unprecedented 
     economic crisis, with massive losses of jobs in the United 
     States and an alarming contraction of economic activity in 
     the United States.
       (2) The United States Government has pledged, committed, or 
     loaned more than $9,000,000,000,000 as of February 2009 in an 
     attempt to mitigate and resolve the economic crisis and 
     trillions of dollars more may well be necessary before the 
     crisis is over.
       (3) The economic crisis reaches into, and has impacted, 
     almost every aspect of the United States economy and 
     significant parts of the international economy.
       (4) Any thorough and complete study and investigation of 
     this complex and far-reaching economic crisis will require 
     sustained and singular focus for many months.
       (5) A study and investigation of this size and scope 
     implicates the jurisdiction of several Standing Committees of 
     the Senate and, if it is to be done correctly and timely, 
     will require a degree of undivided attention and resources 
     beyond the capacity of the Standing Committees of the Senate, 
     which are already over-burdened.
       (6) Adding such a significant study and investigation to 
     the duties of the existing Standing Committees of the Senate 
     would make it difficult for such committees to get their 
     regular required work accomplished, particularly when so much 
     attention and so many resources are appropriately devoted to 
     responding to the ongoing economic crisis.
       (7) Dozens of important investigations have been conducted 
     with the creation of a select committee of the Senate for a 
     specific purpose and a set time.
       (8) The American public has a right to get straight answers 
     on how this economic crisis developed and what steps should 
     be taken to make sure that nothing like it happens again.

     SEC. 202. SELECT COMMITTEE ON INVESTIGATION OF THE ECONOMIC 
                   CRISIS.

       There is established a select committee of the Senate to be 
     known as the Select Committee on Investigation of the 
     Economic Crisis (hereafter in this title referred to as the 
     ``Select Committee'').

     SEC. 203. PURPOSE AND DUTIES.

       (a) Purpose.--The purpose of the Select Committee is to 
     study and investigate the facts and circumstances giving rise 
     to the current economic crisis facing the United States and 
     to recommend actions to be taken to prevent a future 
     recurrence of such a crisis.
       (b) Duties.--The Select Committee is authorized and 
     directed to do everything necessary or appropriate to conduct 
     the study and investigation specified in subsection (a). 
     Without restricting in any way the authority conferred on the 
     Select Committee by the preceding sentence, the Senate 
     further expressly authorizes and directs the Select Committee 
     to examine the facts and circumstances giving rise to the 
     current economic crisis facing the United States, and report 
     on such examination, regarding the following:
       (1) The causes of the current economic crisis.
       (2) Lessons learned from the current economic crisis.
       (3) Actions to prevent a recurrence of an economic crisis 
     such as the current economic crisis.

     SEC. 204. COMPOSITION OF SELECT COMMITTEE.

       (a) Membership.--
       (1) In general.--The Select Committee shall consist of 7 
     members of the Senate of whom--
       (A) 4 members shall be appointed by the majority leader of 
     the Senate; and
       (B) 3 members shall be appointed by the minority leader of 
     the Senate.
       (2) Date.--The appointments of the members of the Select 
     Committee shall be made not later than 30 days after the date 
     of enactment of this title.
       (b) Vacancies.--Any vacancy in the Select Committee shall 
     not affect its powers, but shall be filled in the same manner 
     as the original appointment.
       (c) Service.--Service of a Senator as a member, Chair, or 
     Vice Chair of the Select Committee shall not be taken into 
     account for the purposes of paragraph (4) of rule XXV of the 
     Standing Rules of the Senate.
       (d) Chair and Vice Chair.--The Chair of the Select 
     Committee shall be designated by the majority leader of the 
     Senate, and the Vice Chair of the Select Committee shall be 
     designated by the minority leader of the Senate.
       (e) Quorum.--
       (1) Reports and recommendations.--A majority of the members 
     of the Select Committee shall constitute a quorum for the 
     purpose of reporting a matter or recommendation to the 
     Senate.
       (2) Testimony.--One member of the Select Committee shall 
     constitute a quorum for the purpose of taking testimony.
       (3) Other business.--A majority of the members of the 
     Select Committee, or \1/3\ of the members of the Select 
     Committee if at least one member of the minority party is 
     present, shall constitute a quorum for the purpose of 
     conducting any other business of the Select Committee.

     SEC. 205. RULES AND PROCEDURES.

       (a) Governance Under Standing Rules of Senate.--Except as 
     otherwise specifically provided in this title, the 
     investigation, study, and hearings conducted by the Select 
     Committee shall be governed by the Standing Rules of the 
     Senate.
       (b) Additional Rules and Procedures.--In addition to the 
     provisions of section 208(h), the Select Committee may adopt 
     additional rules or procedures if the Chair and the Vice 
     Chair of the Select Committee agree, or if the Select 
     Committee by majority vote so decides, that such additional 
     rules or procedures are necessary or advisable to enable the 
     Select Committee to conduct the investigation, study, and 
     hearings authorized by this title. Any such additional rules 
     and procedures--
       (1) shall not be inconsistent with this title or the 
     Standing Rules of the Senate; and
       (2) shall become effective upon publication in the 
     Congressional Record.

     SEC. 206. AUTHORITY OF SELECT COMMITTEE.

       (a) In General.--The Select Committee may exercise all of 
     the powers and responsibilities of a committee under rule 
     XXVI of the Standing Rules of the Senate.
       (b) Powers.--The Select Committee or, at its direction, any 
     subcommittee or member of the Select Committee, may, for the 
     purpose of carrying out this title--
       (1) hold hearings;
       (2) administer oaths;
       (3) sit and act at any time or place during the sessions, 
     recess, and adjournment periods of the Senate;
       (4) authorize and require, by issuance of subpoena or 
     otherwise, the attendance and testimony of witnesses and the 
     preservation and production of books, records, 
     correspondence, memoranda, papers, documents, tapes, and any 
     other materials in whatever form the Select Committee 
     considers advisable;
       (5) take testimony, orally, by sworn statement, by sworn 
     written interrogatory, or by deposition, and authorize staff 
     members to do the same; and
       (6) issue letters rogatory and requests, through 
     appropriate channels, for any other means of international 
     assistance.

[[Page 10834]]

       (c) Authorization, Issuance, and Enforcement of 
     Subpoenas.--
       (1) Authorization and issuance.--Subpoenas authorized and 
     issued under this section--
       (A) may be done only with the joint concurrence of the 
     Chair and the Vice Chair of the Select Committee;
       (B) shall bear the signature of the Chair or the designee 
     of the Chair; and
       (C) shall be served by any person or class of persons 
     designated by the Chair for that purpose anywhere within or 
     without the borders of the United States to the full extent 
     provided by law.
       (2) Enforcement.--The Select Committee may make to the 
     Senate by report or resolution any recommendation, including 
     a recommendation for criminal or civil enforcement, that the 
     Select Committee considers appropriate with respect to--
       (A) the failure or refusal of any person to appear at a 
     hearing or deposition or to produce or preserve documents or 
     materials described in subsection (b)(4) in obedience to a 
     subpoena or order of the Select Committee;
       (B) the failure or refusal of any person to answer 
     questions truthfully and completely during the person's 
     appearance as a witness at a hearing or deposition of the 
     Select Committee; or
       (C) the failure or refusal of any person to comply with any 
     subpoena or order issued under the authority of subsection 
     (b).
       (d) Avoidance of Duplication.--
       (1) In general.--To expedite the study and investigation, 
     avoid duplication, and promote efficiency under this title, 
     the Select Committee shall seek to--
       (A) confer with other investigations into the matters set 
     forth in section 203(a); and
       (B) access all information and materials acquired or 
     developed in such other investigations.
       (2) Access to information and materials.--The Select 
     Committee shall have, to the fullest extent permitted by law, 
     access to any such information or materials obtained by any 
     other governmental department, agency, or body investigating 
     the matters set forth in section 203(a).

     SEC. 207. REPORTS.

       (a) Initial Report.--The Select Committee shall submit to 
     the Senate a report on the study and investigation conducted 
     pursuant to section 203 not later than one year after the 
     appointment of all of the members of the Select Committee.
       (b) Updated Report.--The Select Committee shall submit an 
     updated report on such investigation not later than 180 days 
     after the submittal of the report under subsection (a).
       (c) Final Report.--The Select Committee shall submit a 
     final report on such investigation not later than two years 
     after the appointment of all of the members of the Select 
     Committee.
       (d) Additional Reports.--The Select Committee may submit 
     any additional report or reports that the Select Committee 
     considers appropriate.
       (e) Findings and Recommendations.--The reports under this 
     section shall include findings and recommendations of the 
     Select Committee regarding the matters considered under 
     section 203.
       (f) Disposition of Reports.--All reports made by the Select 
     Committee shall be submitted to the Secretary of the Senate. 
     All reports made by the Select Committee shall be referred to 
     the committee or committees that have jurisdiction over the 
     subject matter of the report.

     SEC. 208. ADMINISTRATIVE PROVISIONS.

       (a) Staff.--
       (1) In general.--The Select Committee may employ in 
     accordance with paragraph (2) a staff composed of such 
     clerical, investigatory, legal, technical, and other 
     personnel as the Select Committee, or the Chair and the Vice 
     Chair of the Select Committee considers necessary or 
     appropriate.
       (2) Appointment of staff.--The staff of the Select 
     Committee shall consist of such personnel as the Chair and 
     the Vice Chair shall jointly appoint. Such staff may be 
     removed jointly by the Chair and the Vice Chair, and shall 
     work under the joint general supervision and direction of the 
     Chair and the Vice Chair.
       (b) Compensation.--The Chair and the Vice Chair of the 
     Select Committee shall jointly fix the compensation of all 
     personnel of the staff of the Select Committee.
       (c) Reimbursement of Expenses.--The Select Committee may 
     reimburse the members of its staff for travel, subsistence, 
     and other necessary expenses incurred by such staff members 
     in the performance of their functions for the Select 
     Committee.
       (d) Services of Senate Staff.--The Select Committee may 
     use, with the prior consent of the chair of any other 
     committee of the Senate or the chair of any subcommittee of 
     any committee of the Senate, the facilities of any other 
     committee of the Senate, or the services of any members of 
     the staff of such committee or subcommittee, whenever the 
     Select Committee or the Chair of the Select Committee 
     considers that such action is necessary or appropriate to 
     enable the Select Committee to carry out its 
     responsibilities, duties, or functions under this title.
       (e) Detail of Employees.--The Select Committee may use on a 
     reimbursable basis, with the prior consent of the head of the 
     department or agency of Government concerned and the approval 
     of the Committee on Rules and Administration of the Senate, 
     the services of personnel of such department or agency.
       (f) Temporary and Intermittent Services.--The Select 
     Committee may procure the temporary or intermittent services 
     of individual consultants, or organizations thereof.
       (g) Payment of Expenses.--There shall be paid out of the 
     applicable accounts of the Senate such sums as may be 
     necessary for the expenses of the Select Committee. Such 
     payments shall be made on vouchers signed by the Chair of the 
     Select Committee and approved in the manner directed by the 
     Committee on Rules and Administration of the Senate. Amounts 
     made available under this subsection shall be expended in 
     accordance with regulations prescribed by the Committee on 
     Rules and Administration of the Senate.
       (h) Conflicts of Interest.--The Select Committee shall 
     issue rules to prohibit or minimize any conflicts of interest 
     involving its members, staff, detailed personnel, 
     consultants, and any others providing assistance to the 
     Select Committee. Such rules shall not be inconsistent with 
     the Code of Official Conduct of the Senate or applicable 
     Federal law.

     SEC. 209. EFFECTIVE DATE; TERMINATION.

       (a) Effective Date.--This title shall take effect on the 
     date of enactment of this title.
       (b) Termination.--The Select Committee shall terminate 
     three months after the submittal of the report required by 
     section 207(c).
  The PRESIDING OFFICER. The Senator from Illinois is recognized.
  Mr. BURRIS. I ask unanimous consent to speak as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BURRIS. I thank the Chair.

                          ____________________