[Congressional Record (Bound Edition), Volume 156 (2010), Part 6]
[Senate]
[Pages 8206-8246]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4006. Mr. PRYOR (for himself, Mr. Roberts, and Mr. Brownback) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 19, strike line 16 and all that follows through 
     page 21, line 23 and insert the following:
       (4) Nonbank financial company definitions.--
       (A) Foreign nonbank financial company.--The term ```foreign 
     nonbank financial company''' means a company (other than a 
     company that is, or is treated in the United States as, a 
     bank holding company or a subsidiary thereof) that is--
       (i) incorporated or organized in a country other than the 
     United States; and
       (ii) predominantly engaged (as defined in section 4(n) of 
     the Bank Holding Company Act of 1956) in, including through a 
     branch in the United States, activities in the United States 
     that are financial in nature (as defined in section 4(k) of 
     the Bank Holding Company Act of 1956).
       (B) U.S. nonbank financial company.--The term ```U.S. 
     nonbank financial company''' means a company (other than a 
     bank holding company or a subsidiary thereof, or a Farm 
     Credit System institution chartered and subject to the 
     provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et. 
     seq.)) that is--
       (i) incorporated or organized under the laws of the United 
     States or any State; and
       (ii) predominantly engaged (as defined in section 4(n) of 
     the Bank Holding Company Act of 1956) in activities in the 
     United States that are financial in nature (as defined in 
     section 4(k) of the Bank Holding Company Act of 1956).
       (C) Nonbank financial company.--The term ``nonbank 
     financial company'' means a U.S. nonbank financial company 
     and a foreign nonbank financial company.
       (D) Nonbank financial company supervised by the board of 
     governors.--The term ``nonbank financial company supervised 
     by the Board of Governors'' means a nonbank financial company 
     that the Council has determined under section 113 shall be 
     supervised by the Board of Governors.
       (5) Office of financial research.--The term ``Office of 
     Financial Research'' means the office established under 
     section 152.
       (6) Significant institutions.--The terms ``significant 
     nonbank financial company'' and ``significant bank holding 
     company'' have the meanings given those terms by rule of the 
     Board of Governors.
       (b) Foreign Nonbank Financial Companies.--
                                 ______
                                 
  SA 4007. Mr. CASEY submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1522, between lines 6 and 7, insert the following:

                    Subtitle I--Appraisal Activities

     SEC. 1111. PROPERTY APPRAISAL REQUIREMENTS.

       (a) In General.--Chapter 2 of the Truth in Lending Act (15 
     U.S.C. 1631 et seq.) is amended by inserting after 129B (as 
     added by this Act) the following new section:

     ``SEC. 129C. PROPERTY APPRAISAL REQUIREMENTS.

       ``(a) In General.--A creditor may not extend credit in the 
     form of a subprime mortgage to any consumer without first 
     obtaining a written appraisal of the property to be mortgaged 
     prepared in accordance with the requirements of this section.
       ``(b) Appraisal Requirements.--
       ``(1) Physical property visit.--An appraisal of property to 
     be secured by a subprime mortgage does not meet the 
     requirement of this section unless it is performed by a 
     qualified appraiser who conducts a physical property visit of 
     the interior of the mortgaged property.
       ``(2) Second appraisal under certain circumstances.--
       ``(A) In general.--If the purpose of a subprime mortgage is 
     to finance the purchase or acquisition of the mortgaged 
     property from a person within 180 days of the purchase or 
     acquisition of such property by that person at a price that 
     was lower than the current sale price of the property, the 
     creditor shall obtain a second appraisal from a different 
     qualified appraiser. The second appraisal shall include an 
     analysis of the difference in sale prices, changes in market 
     conditions, and any improvements made to the property between 
     the date of the previous sale and the current sale.
       ``(B) No cost to applicant.--The cost of any second 
     appraisal required under subparagraph (A) may not be charged 
     to the applicant.
       ``(3) Qualified appraiser defined.--For purposes of this 
     section, the term `qualified appraiser' means a person who--
       ``(A) is, at a minimum, certified or licensed by the State 
     in which the property to be appraised is located; and
       ``(B) performs each appraisal in conformity with the 
     Uniform Standards of Professional Appraisal Practice and 
     title XI of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989, and the regulations prescribed under 
     such title, as in effect on the date of the appraisal.
       ``(c) Free Copy of Appraisal.--A creditor shall provide 1 
     copy of each appraisal conducted in accordance with this 
     section in connection with a subprime mortgage to the 
     applicant without charge, and at least 3 days prior to the 
     transaction closing date.
       ``(d) Consumer Notification.--At the time of the initial 
     mortgage application, the applicant shall be provided with a 
     statement by the creditor that any appraisal prepared for the 
     mortgage is for the sole use of the creditor, and that the 
     applicant may choose to have a separate appraisal conducted 
     at their own expense.
       ``(e) Violations.--In addition to any other liability to 
     any person under this title, a creditor found to have 
     willfully failed to obtain an appraisal as required in this 
     section shall be liable to the applicant or borrower for the 
     sum of $2,000.
       ``(f) Subprime Mortgage Defined.--For purposes of this 
     section, the term `subprime mortgage' means a residential 
     mortgage loan, other than a reverse mortgage loan insured by 
     the Federal Housing Administration, secured by a principal 
     dwelling with an annual percentage rate that exceeds the 
     average prime offer rate for a comparable transaction, as of 
     the date the interest rate is set--
       ``(1) by 1.5 or more percentage points, in the case of a 
     first lien residential mortgage loan having an original 
     principal obligation amount that does not exceed the amount 
     of the maximum limitation on the original principal 
     obligation of mortgage in effect for a residence of the 
     applicable size, as of the date of such interest rate set, 
     pursuant to the sixth sentence of section 305(a)(2) the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2));
       ``(2) by 2.5 or more percentage points, in the case of a 
     first lien residential mortgage loan having an original 
     principal obligation amount that exceeds the amount of the 
     maximum limitation on the original principal obligation of 
     mortgage in effect for a residence of the applicable size, as 
     of the date of such interest rate set, pursuant to the sixth 
     sentence of section 305(a)(2) the Federal Home Loan Mortgage 
     Corporation Act (12 U.S.C. 1454(a)(2)); and
       ``(3) by 3.5 or more percentage points for a subordinate 
     lien residential mortgage loan.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     2 of the Truth in Lending Act is amended by inserting after 
     the item relating to section 129B the following new item:

``129C. Property appraisal requirements.''.

     SEC. 1112. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING 
                   TO CERTAIN CONSUMER CREDIT TRANSACTIONS.

       (a) In General.--Chapter 2 of the Truth in Lending Act (15 
     U.S.C. 1631 et seq.) is amended by inserting after section 
     129C (as added by section 1111(a)) the following new section:

     ``SEC. 129D. UNFAIR AND DECEPTIVE PRACTICES AND ACTS RELATING 
                   TO CERTAIN CONSUMER CREDIT TRANSACTIONS.

       ``(a) In General.--It shall be unlawful, in extending 
     credit or in providing any services for a consumer credit 
     transaction secured by the principal dwelling of the 
     consumer, to engage in any unfair or deceptive act or 
     practice as described in or pursuant to regulations 
     prescribed under this section.
       ``(b) Appraisal Independence.--For purposes of subsection 
     (a), unfair and deceptive practices shall include--
       ``(1) any appraisal of a property offered as security for 
     repayment of the consumer credit transaction that is 
     conducted in connection with such transaction in which a 
     person with an interest in the underlying transaction 
     compensates, coerces, extorts, colludes, instructs, induces, 
     bribes, or intimidates a person conducting or involved in

[[Page 8207]]

     an appraisal, or attempts, to compensate, coerce, extort, 
     collude, instruct, induce, bribe, or intimidate such a 
     person, for the purpose of causing the appraised value 
     assigned, under the appraisal, to the property to be based on 
     any factor other than the independent judgment of the 
     appraiser;
       ``(2) mischaracterizing, or suborning any 
     mischaracterization of, the appraised value of the property 
     securing the extension of the credit;
       ``(3) seeking to influence an appraiser or otherwise to 
     encourage a targeted value in order to facilitate the making 
     or pricing of the transaction; and
       ``(4) withholding or threatening to withhold timely payment 
     for an appraisal report or for appraisal services rendered.
       ``(c) Exceptions.--The requirements of subsection (b) shall 
     not be construed as prohibiting a mortgage lender, mortgage 
     broker, mortgage banker, real estate broker, appraisal 
     management company, employee of an appraisal management 
     company, consumer, or any other person with an interest in a 
     real estate transaction from asking an appraiser to provide 1 
     or more of the following services:
       ``(1) Consider additional, appropriate property 
     information, including the consideration of additional 
     comparable properties to make or support an appraisal.
       ``(2) Provide further detail, substantiation, or 
     explanation for the appraiser's value conclusion.
       ``(3) Correct errors in the appraisal report.
       ``(d) Prohibitions on Conflicts of Interest.--No certified 
     or licensed appraiser conducting, and no appraisal management 
     company procuring or facilitating, an appraisal in connection 
     with a consumer credit transaction secured by the principal 
     dwelling of a consumer may have a direct or indirect 
     interest, financial or otherwise, in the property or 
     transaction involving the appraisal.
       ``(e) Mandatory Reporting.--Any mortgage lender, mortgage 
     broker, mortgage banker, real estate broker, appraisal 
     management company, employee of an appraisal management 
     company, or any other person involved in a real estate 
     transaction involving an appraisal in connection with a 
     consumer credit transaction secured by the principal dwelling 
     of a consumer who has a reasonable basis to believe an 
     appraiser is failing to comply with the Uniform Standards of 
     Professional Appraisal Practice, is violating applicable 
     laws, or is otherwise engaging in unethical or unprofessional 
     conduct, shall refer the matter to the applicable State 
     appraiser certifying and licensing agency.
       ``(f) No Extension of Credit.--In connection with a 
     consumer credit transaction secured by a consumer's principal 
     dwelling, a creditor who knows, at or before loan 
     consummation, of a violation of the appraisal independence 
     standards established in subsections (b) or (d) shall not 
     extend credit based on such appraisal unless the creditor 
     documents that the creditor has acted with reasonable 
     diligence to determine that the appraisal does not materially 
     misstate or misrepresent the value of such dwelling.
       ``(g) Rulemaking Proceedings.--The Board, the Comptroller 
     of the Currency, the Director of the Office of Thrift 
     Supervision, the Federal Deposit Insurance Corporation, the 
     National Credit Union Administration Board, and the Federal 
     Trade Commission--
       ``(1) shall, for purposes of this section, jointly 
     prescribe regulations no later than 180 days after the date 
     of the enactment of this section, and where such regulations 
     have an effective date of no later than 1 year after the date 
     of the enactment of this section, defining with specificity 
     acts or practices which are unfair or deceptive in the 
     provision of mortgage lending services for a consumer credit 
     transaction secured by the principal dwelling of the consumer 
     or mortgage brokerage services for such a transaction and 
     defining any terms in this section or such regulations; and
       ``(2) may jointly issue interpretive guidelines and general 
     statements of policy with respect to unfair or deceptive acts 
     or practices in the provision of mortgage lending services 
     for a consumer credit transaction secured by the principal 
     dwelling of the consumer and mortgage brokerage services for 
     such a transaction, within the meaning of subsections (a), 
     (b), (c), (d), (e), and (f).
       ``(h) Penalties.--
       ``(1) First violation.--In addition to the enforcement 
     provisions referred to in section 130, each person who 
     violates this section shall forfeit and pay a civil penalty 
     of not more than $10,000 for each day any such violation 
     continues.
       ``(2) Subsequent violations.--In the case of any person on 
     whom a civil penalty has been imposed under paragraph (1), 
     paragraph (1) shall be applied by substituting `$20,000' for 
     `$10,000' with respect to all subsequent violations.
       ``(3) Assessment.--The agency referred to in subsection (a) 
     or (c) of section 108 with respect to any person described in 
     paragraph (1) shall assess any penalty under this subsection 
     to which such person is subject.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     2 of the Truth in Lending Act is amended by inserting after 
     the item relating to section 129C the following new item:

``129D. Unfair and deceptive practices and acts relating to certain 
              consumer credit transactions.''.

     SEC. 1113. AMENDMENTS RELATING TO APPRAISAL SUBCOMMITTEE OF 
                   FIEC, APPRAISER INDEPENDENCE MONITORING, 
                   APPROVED APPRAISER EDUCATION, APPRAISAL 
                   MANAGEMENT COMPANIES, APPRAISER COMPLAINT 
                   HOTLINE, AUTOMATED VALUATION MODELS, AND BROKER 
                   PRICE OPINIONS.

       (a) Consumer Protection Mission.--
       (1) Purposes.--Section 1101 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     3331) is amended by inserting ``and to provide the Appraisal 
     Subcommittee with a consumer protection mandate'' before the 
     period at the end.
       (2) Functions of appraisal subcommittee.--Section 1103(a) 
     of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 3332(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (3); and
       (B) by amending paragraph (4) to read as follows:
       ``(4) monitor the efforts of, and requirements established 
     by, States and the Federal financial institutions regulatory 
     agencies to protect consumers from improper appraisal 
     practices and the predations of unlicensed appraisers in 
     consumer credit transactions that are secured by a consumer's 
     principal dwelling; and''.
       (3) Threshold levels.--Section 1112(b) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3341(b)) is amended by inserting before the period 
     the following: ``, and that such threshold level provides 
     reasonable protection for consumers who purchase 1-4 unit 
     single-family residences. In determining whether a threshold 
     level provides reasonable protection for consumers, each 
     Federal financial institutions regulatory agency shall 
     consult with consumer groups and convene a public hearing''.
       (b) Annual Report of Appraisal Subcommittee.--Section 
     1103(a) of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 3332(a)) is amended at the 
     end by inserting the following new paragraph:
       ``(5) transmit an annual report to the Congress not later 
     than January 31 of each year that describes the manner in 
     which each function assigned to the Appraisal Subcommittee 
     has been carried out during the preceding year. The report 
     shall also detail the activities of the Appraisal 
     Subcommittee, including the results of all audits of State 
     appraiser regulatory agencies, and provide an accounting of 
     disapproved actions and warnings taken in the previous year, 
     including a description of the conditions causing the 
     disapproval and actions taken to achieve compliance.''.
       (c) Open Meetings.--Section 1104(b) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3333(b)) is amended by inserting ``in public 
     session after notice in the Federal Register'' after ``shall 
     meet''.
       (d) Regulations.--Section 1106 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3335) is amended--
       (1) by inserting ``prescribe regulations after notice and 
     opportunity for comment,'' after ``hold hearings''; and
       (2) at the end by inserting ``Any regulations prescribed by 
     the Appraisal Subcommittee shall (unless otherwise provided 
     in this title) be limited to the following functions: 
     temporary practice, national registry, information sharing, 
     and enforcement. For purposes of prescribing regulations, the 
     Appraisal Subcommittee shall establish an advisory committee 
     of industry participants, including appraisers, lenders, 
     consumer advocates, and government agencies, and hold 
     meetings as necessary to support the development of 
     regulations.''.
       (e) Appraisals and Appraisal Reviews.--Section 1113 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 3342) is amended--
       (1) by striking ``In determining'' and inserting ``(a) In 
     General.--In determining'';
       (2) in subsection (a) (as designated by paragraph (1)), by 
     inserting before the period the following: ``, where a 
     complex 1-to-4 unit single family residential appraisal means 
     an appraisal for which the property to be appraised, the form 
     of ownership, the property characteristics, or the market 
     conditions are atypical''; and
       (3) by adding at the end the following new subsection:
       ``(b) Appraisals and Appraisal Reviews.--All appraisals 
     performed at a property within a State shall be prepared by 
     appraisers licensed or certified in the State where the 
     property is located. All appraisal reviews, including 
     appraisal reviews by a lender, appraisal management company, 
     or other third party organization, shall be performed by an 
     appraiser who is duly licensed or certified by a State 
     appraisal board.''.
       (f) Appraisal Management Services.--
       (1) Supervision of third party providers of appraisal 
     management services.--Section 1103(a) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989

[[Page 8208]]

     (12 U.S.C. 3332(a)) (as previously amended by this section) 
     is further amended--
       (A) by amending paragraph (1) to read as follows:
       ``(1) monitor the requirements established by States--
       ``(A) for the certification and licensing of individuals 
     who are qualified to perform appraisals in connection with 
     federally related transactions, including a code of 
     professional responsibility; and
       ``(B) for the registration and supervision of the 
     operations and activities of an appraisal management 
     company;''; and
       (B) by adding at the end the following new paragraph:
       ``(7) maintain a national registry of appraisal management 
     companies that either are registered with and subject to 
     supervision of a State appraiser certifying and licensing 
     agency or are operating subsidiaries of a Federally regulated 
     financial institution.''.
       (2) Appraisal management company minimum qualifications.--
     Title XI of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended 
     by adding at the end the following new section (and amending 
     the table of contents accordingly):

     ``SEC. 1124. APPRAISAL MANAGEMENT COMPANY MINIMUM 
                   QUALIFICATIONS.

       ``(a) In General.--The Appraiser Qualifications Board of 
     the Appraisal Foundation shall establish minimum 
     qualifications to be applied by a State in the registration 
     of appraisal management companies. Such qualifications shall 
     include a requirement that such companies--
       ``(1) register with and be subject to supervision by a 
     State appraiser certifying and licensing agency in each State 
     in which such company operates;
       ``(2) verify that only licensed or certified appraisers are 
     used for federally related transactions;
       ``(3) require that appraisals coordinated by an appraisal 
     management company comply with the Uniform Standards of 
     Professional Appraisal Practice; and
       ``(4) require that appraisals are conducted independently 
     and free from inappropriate influence and coercion pursuant 
     to the appraisal independence standards established under 
     section 129C of the Truth in Lending Act.
       ``(b) Exception for Federally Regulated Financial 
     Institutions.--The requirements of subsection (a) shall not 
     apply to an appraisal management company that is a subsidiary 
     owned and controlled by a financial institution and regulated 
     by a federal financial institution regulatory agency. In such 
     case, the appropriate federal financial institutions 
     regulatory agency shall, at a minimum, develop regulations 
     affecting the operations of the appraisal management company 
     to--
       ``(1) verify that only licensed or certified appraisers are 
     used for federally related transactions;
       ``(2) require that appraisals coordinated by an institution 
     or subsidiary providing appraisal management services comply 
     with the Uniform Standards of Professional Appraisal 
     Practice; and
       ``(3) require that appraisals are conducted independently 
     and free from inappropriate influence and coercion pursuant 
     to the appraisal independence standards established under 
     section 129C of the Truth in Lending Act.
       ``(c) Registration Limitations.--An appraisal management 
     company shall not be registered by a State if such company, 
     in whole or in part, directly or indirectly, is owned by any 
     person who has had an appraiser license or certificate 
     refused, denied, cancelled, surrendered in lieu of 
     revocation, or revoked in any State. Additionally, each 
     person that owns more than 10 percent of an appraisal 
     management company shall be of good moral character, as 
     determined by the State appraiser certifying and licensing 
     agency, and shall submit to a background investigation 
     carried out by the State appraiser certifying and licensing 
     agency.
       ``(d) Regulations.--The Appraisal Subcommittee shall 
     promulgate regulations to implement the minimum 
     qualifications developed by the Appraiser Qualifications 
     Board under this section, as such qualifications relate to 
     the State appraiser certifying and licensing agencies. The 
     Appraisal Subcommittee shall also promulgate regulations for 
     the reporting of the activities of appraisal management 
     companies in determining the payment of the annual registry 
     fee.
       ``(e) Effective Date.--
       ``(1) In general.--No appraisal management company may 
     perform services related to a federally related transaction 
     in a State after the date that is 36 months after the date of 
     the enactment of this section unless such company is 
     registered with such State or subject to oversight by a 
     federal financial institutions regulatory agency.
       ``(2) Extension of effective date.--Subject to the approval 
     of the Council, the Appraisal Subcommittee may extend by an 
     additional 12 months the requirements for the registration 
     and supervision of appraisal management companies if it makes 
     a written finding that a State has made substantial progress 
     in establishing a State appraisal management company 
     registration and supervision system that appears to conform 
     with the provisions of this title.''.
       (3) State appraiser certifying and licensing agency 
     authority.--Section 1117 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     3346) is amended by adding at the end the following: ``The 
     duties of such agency may additionally include the 
     registration and supervision of appraisal management 
     companies.''.
       (4) Appraisal management company definition.--Section 1121 
     of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 3350) is amended by adding 
     at the end the following:
       ``(11) Appraisal management company.--The term `appraisal 
     management company' means, in connection with valuing 
     properties collateralizing mortgage loans or mortgages 
     incorporated into a securitization, any external third party 
     authorized either by a creditor of a consumer credit 
     transaction secured by a consumer's principal dwelling or by 
     an underwriter of or other principal in the secondary 
     mortgage markets, that oversees a network or panel of more 
     than 15 certified or licensed appraisers in a State or 25 or 
     more nationally within a given year--
       ``(A) to recruit, select, and retain appraisers;
       ``(B) to contract with licensed and certified appraisers to 
     perform appraisal assignments;
       ``(C) to manage the process of having an appraisal 
     performed, including providing administrative duties such as 
     receiving appraisal orders and appraisal reports, submitting 
     completed appraisal reports to creditors and underwriters, 
     collecting fees from creditors and underwriters for services 
     provided, and reimbursing appraisers for services performed; 
     or
       ``(D) to review and verify the work of appraisers.''.
       (g) State Agency Reporting Requirement.--Section 1109(a) of 
     the Financial Institutions Reform, Recovery, and Enforcement 
     Act of 1989 (12 U.S.C. 3338(a)) is amended--
       (1) by striking ``and'' after the semicolon in paragraph 
     (1);
       (2) by redesignating paragraph (2) as paragraph (4); and
       (3) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) transmit reports on sanctions, disciplinary actions, 
     license and certification revocations, and license and 
     certification suspensions on a timely basis to the national 
     registry of the Appraisal Subcommittee;
       ``(3) transmit reports on a timely basis of supervisory 
     activities involving appraisal management companies or other 
     third-party providers of appraisals and appraisal management 
     services, including investigations initiated and disciplinary 
     actions taken; and''.
       (h) Registry Fees Modified.--
       (1) In general.--Section 1109(a) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3338(a)) is amended--
       (A) by amending paragraph (4) (as modified by section 
     9503(g)) to read as follows:
       ``(4) collect--
       ``(A) from such individuals who perform or seek to perform 
     appraisals in federally related transactions, an annual 
     registry fee of not more than $40, such fees to be 
     transmitted by the State agencies to the Council on an annual 
     basis; and
       ``(B) from an appraisal management company that either has 
     registered with a State appraiser certifying and licensing 
     agency in accordance with this title or operates as a 
     subsidiary of a federally regulated financial institution, an 
     annual registry fee of--
       ``(i) in the case of such a company that has been in 
     existence for more than a year, $25 multiplied by the number 
     of appraisers working for or contracting with such company in 
     such State during the previous year, but where such $25 
     amount may be adjusted, up to a maximum of $50, at the 
     discretion of the Appraisal Subcommittee, if necessary to 
     carry out the Subcommittee's functions under this title; and
       ``(ii) in the case of such a company that has not been in 
     existence for more than a year, $25 multiplied by an 
     appropriate number to be determined by the Appraisal 
     Subcommittee, and where such number will be used for 
     determining the fee of all such companies that were not in 
     existence for more than a year, but where such $25 amount may 
     be adjusted, up to a maximum of $50, at the discretion of the 
     Appraisal Subcommittee, if necessary to carry out the 
     Subcommittee's functions under this title.''; and
       (B) by amending the matter following paragraph (4), as 
     redesignated, to read as follows:

     ``Subject to the approval of the Council, the Appraisal 
     Subcommittee may adjust the dollar amount of registry fees 
     under paragraph (4)(A), up to a maximum of $80 per annum, as 
     necessary to carry out its functions under this title. The 
     Appraisal Subcommittee shall consider at least once every 5 
     years whether to adjust the dollar amount of the registry 
     fees to account for inflation. In implementing any change in 
     registry fees, the Appraisal Subcommittee shall provide 
     flexibility to the States for multi-year certifications and 
     licenses already in place, as well as a transition period to 
     implement the changes in registry fees. In establishing the

[[Page 8209]]

     amount of the annual registry fee for an appraisal management 
     company, the Appraisal Subcommittee shall have the discretion 
     to impose a minimum annual registry fee for an appraisal 
     management company to protect against the under reporting of 
     the number of appraisers working for or contracted by the 
     appraisal management company.''.
       (2) Incremental revenues.--Incremental revenues collected 
     pursuant to the increases required by this subsection shall 
     be placed in a separate account at the United States 
     Treasury, entitled the ``Appraisal Subcommittee Account''.
       (i) Grants and Reports.--Section 1109(b) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3348(b)) is amended--
       (1) by striking ``and'' after the semicolon in paragraph 
     (3);
       (2) by striking the period at the end of paragraph (4) and 
     inserting a semicolon;
       (3) by adding at the end the following new paragraphs:
       ``(5) to make grants to State appraiser certifying and 
     licensing agencies to support the efforts of such agencies to 
     comply with this title, including--
       ``(A) the complaint process, complaint investigations, and 
     appraiser enforcement activities of such agencies; and
       ``(B) the submission of data on State licensed and 
     certified appraisers and appraisal management companies to 
     the National appraisal registry, including information 
     affirming that the appraiser or appraisal management company 
     meets the required qualification criteria and formal and 
     informal disciplinary actions; and
       ``(6) to report to all State appraiser certifying and 
     licensing agencies when a license or certification is 
     surrendered, revoked, or suspended.''.

     Obligations authorized under this subsection may not exceed 
     75 percent of the fiscal year total of incremental increase 
     in fees collected and deposited in the ``Appraisal 
     Subcommittee Account'' pursuant to subsection (h).
       (j) Criteria.--Section 1116 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     3345) is amended--
       (1) in subsection (c), by inserting ``whose criteria for 
     the licensing of a real estate appraiser currently meet or 
     exceed the minimum criteria issued by the Appraisal 
     Qualifications Board of The Appraisal Foundation for the 
     licensing of real estate appraisers'' before the period at 
     the end; and
       (2) by striking subsection (e) and inserting the following 
     new subsection:
       ``(e) Minimum Qualification Requirements.--Any requirements 
     established for individuals in the position of `Trainee 
     Appraiser' and `Supervisory Appraiser' shall meet or exceed 
     the minimum qualification requirements of the Appraiser 
     Qualifications Board of The Appraisal Foundation. The 
     Appraisal Subcommittee shall have the authority to enforce 
     these requirements.''.
       (k) Monitoring of State Appraiser Certifying and Licensing 
     Agencies.--Section 1118 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3347) is 
     amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) In General.--The Appraisal Subcommittee shall monitor 
     each State appraiser certifying and licensing agency for the 
     purposes of determining whether such agency--
       ``(1) has policies, practices, funding, staffing, and 
     procedures that are consistent with this title;
       ``(2) processes complaints and completes investigations in 
     a reasonable time period;
       ``(3) appropriately disciplines sanctioned appraisers and 
     appraisal management companies;
       ``(4) maintains an effective regulatory program; and
       ``(5) reports complaints and disciplinary actions on a 
     timely basis to the national registries on appraisers and 
     appraisal management companies maintained by the Appraisal 
     Subcommittee.

     The Appraisal Subcommittee shall have the authority to remove 
     a State licensed or certified appraiser or a registered 
     appraisal management company from a national registry on an 
     interim basis pending State agency action on licensing, 
     certification, registration, and disciplinary proceedings. 
     The Appraisal Subcommittee and all agencies, 
     instrumentalities, and Federally recognized entities under 
     this title shall not recognize appraiser certifications and 
     licenses from States whose appraisal policies, practices, 
     funding, staffing, or procedures are found to be inconsistent 
     with this title. The Appraisal Subcommittee shall have the 
     authority to impose sanctions, as described in this section, 
     against a State agency that fails to have an effective 
     appraiser regulatory program. In determining whether such a 
     program is effective, the Appraisal Subcommittee shall 
     include an analyses of the licensing and certification of 
     appraisers, the registration of appraisal management 
     companies, the issuance of temporary licenses and 
     certifications for appraisers, the receiving and tracking of 
     submitted complaints against appraisers and appraisal 
     management companies, the investigation of complaints, and 
     enforcement actions against appraisers and appraisal 
     management companies. The Appraisal Subcommittee shall have 
     the authority to impose interim actions and suspensions 
     against a State agency as an alternative to, or in advance 
     of, the derecognition of a State agency.''.
       (2) in subsection (b)(2), by inserting after ``authority'' 
     the following: ``or sufficient funding''.
       (l) Reciprocity.--Subsection (b) of section 1122 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 3351(b)) is amended to read as follows:
       ``(b) Reciprocity.--A State appraiser certifying or 
     licensing agency shall issue a reciprocal certification or 
     license for an individual from another State when--
       ``(1) the appraiser licensing and certification program of 
     such other State is in compliance with the provisions of this 
     title; and
       ``(2) the appraiser holds a valid certification from a 
     State whose requirements for certification or licensing meet 
     or exceed the licensure standards established by the State 
     where an individual seeks appraisal licensure.''.
       (m) Consideration of Professional Appraisal Designations.--
     Section 1122(d) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351(d)) is 
     amended by striking ``shall not exclude'' and all that 
     follows through the end of the subsection and inserting the 
     following: ``may include education achieved, experience, 
     sample appraisals, and references from prior clients. 
     Membership in a nationally recognized professional appraisal 
     organization may be a criteria considered, though lack of 
     membership therein shall not be the sole bar against 
     consideration for an assignment under these criteria.''.
       (n) Appraiser Independence.--Section 1122 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3351) is amended by adding at the end the 
     following new subsection:
       ``(g) Appraiser Independence Monitoring.--The Appraisal 
     Subcommittee shall monitor each State appraiser certifying 
     and licensing agency for the purpose of determining whether 
     such agency's policies, practices, and procedures are 
     consistent with the purposes of maintaining appraiser 
     independence and whether such State has adopted and maintains 
     effective laws, regulations, and policies aimed at 
     maintaining appraiser independence.''.
       (o) Appraiser Education.--Section 1122 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3351) is amended by inserting after subsection (g) 
     (as added by subsection (l) of this section) the following 
     new subsection:
       ``(h) Approved Education.--The Appraisal Subcommittee shall 
     encourage the States to accept courses approved by the 
     Appraiser Qualification Board's Course Approval Program.''.
       (p) Appraisal Complaint Hotline.--Section 1122 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 3351), as amended by this section, is 
     further amended by adding at the end the following new 
     subsection:
       ``(i) Appraisal Complaint National Hotline.--If, 1 year 
     after the date of the enactment of this subsection, the 
     Appraisal Subcommittee determines that no national hotline 
     exists to receive complaints of non-compliance with appraisal 
     independence standards and Uniform Standards of Professional 
     Appraisal Practice, including complaints from appraisers, 
     individuals, or other entities concerning the improper 
     influencing or attempted improper influencing of appraisers 
     or the appraisal process, the Appraisal Subcommittee shall 
     establish and operate such a national hotline, which shall 
     include a toll-free telephone number and an email address. If 
     the Appraisal Subcommittee operates such a national hotline, 
     the Appraisal Subcommittee shall refer complaints for further 
     action to appropriate governmental bodies, including a State 
     appraiser certifying and licensing agency, a financial 
     institution regulator, or other appropriate legal 
     authorities. For complaints referred to State appraiser 
     certifying and licensing agencies or to Federal regulators, 
     the Appraisal Subcommittee shall have the authority to follow 
     up such complaint referrals in order to determine the status 
     of the resolution of the complaint.''.
       (q) Automated Valuation Models.--Title XI of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3331 et seq.), as amended by this section, is 
     further amended by adding at the end the following new 
     section (and amending the table of contents accordingly):

     ``SEC. 1125. AUTOMATED VALUATION MODELS USED TO VALUE CERTAIN 
                   MORTGAGES.

       ``(a) In General.--Automated valuation models shall adhere 
     to quality control standards designed to--
       ``(1) ensure a high level of confidence in the estimates 
     produced by automated valuation models;
       ``(2) protect against the manipulation of data;
       ``(3) seek to avoid conflicts of interest; and
       ``(4) require random sample testing and reviews, where such 
     testing and reviews are performed by an appraiser who is 
     licensed or certified in the State where the testing and 
     reviews take place.

[[Page 8210]]

       ``(b) Adoption of Regulations.--The Appraisal Subcommittee 
     and its member agencies, in consultation with the Appraisal 
     Standards Board of the Appraisal Foundation and other 
     interested parties, shall promulgate regulations to implement 
     the quality control standards required under this section.
       ``(c) Enforcement.--Compliance with regulations issued 
     under this subsection shall be enforced by--
       ``(1) with respect to a financial institution, or 
     subsidiary owned and controlled by a financial institution 
     and regulated by a Federal financial institution regulatory 
     agency, the Federal financial institution regulatory agency 
     that acts as the primary Federal supervisor of such financial 
     institution or subsidiary; and
       ``(2) with respect to other persons, the Appraisal 
     Subcommittee.
       ``(d) Automated Valuation Model Defined.--For purposes of 
     this section, the term `automated valuation model' means any 
     computerized model used by mortgage originators and secondary 
     market issuers to determine the collateral worth of a 
     mortgage secured by a consumer's principal dwelling.''.
       (r) Broker Price Opinions.--Title XI of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 3331 et seq.), as amended by this section, is 
     further amended by adding at the end the following new 
     section (and amending the table of contents accordingly):

     ``SEC. 1126. BROKER PRICE OPINIONS.

       ``(a) General Prohibition.--In conjunction with the 
     purchase of a consumer's principal dwelling, broker price 
     opinions may not be used as the primary basis to determine 
     the value of a piece of property for the purpose of a loan 
     origination of a residential mortgage loan secured by such 
     piece of property.
       ``(b) Broker Price Opinion Defined.--For purposes of this 
     section, the term `broker price opinion' means an estimate 
     prepared by a real estate broker, agent, or sales person that 
     details the probable selling price of a particular piece of 
     real estate property and provides a varying level of detail 
     about the property's condition, market, and neighborhood, and 
     information on comparable sales, but does not include an 
     automated valuation model, as defined in section 1125(c).''.
       (s) Amendments to Appraisal Subcommittee.--Section 1011 of 
     the Federal Financial Institutions Examination Council Act of 
     1978 (12 U.S.C. 3310) is amended--
       (1) in the first sentence, by adding before the period the 
     following: ``and the Federal Housing Finance Agency''; and
       (2) by inserting at the end the following: ``At all times 
     at least one member of the Appraisal Subcommittee shall have 
     demonstrated knowledge and competence through licensure, 
     certification, or professional designation within the 
     appraisal profession.''.
       (t) Technical Corrections.--
       (1) Section 1119(a)(2) of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     3348(a)(2)) is amended by striking ``council,'' and inserting 
     ``Council,''.
       (2) Section 1121(6) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(6)) is 
     amended by striking ``Corporations,'' and inserting 
     ``Corporation,''.
       (3) Section 1121(8) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(8)) is 
     amended by striking ``council'' and inserting ``Council''.
       (4) Section 1122 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is 
     amended--
       (A) in subsection (a)(1) by moving the left margin of 
     subparagraphs (A), (B), and (C) 2 ems to the right; and
       (B) in subsection (c)--
       (i) by striking ``Federal Financial Institutions 
     Examination Council'' and inserting ``Financial Institutions 
     Examination Council''; and
       (ii) by striking ``the council's functions'' and inserting 
     ``the Council's functions''.

     SEC. 1114. STUDY REQUIRED ON IMPROVEMENTS IN APPRAISAL 
                   PROCESS AND COMPLIANCE PROGRAMS.

       (a) Study.--The Comptroller General shall conduct a 
     comprehensive study on possible improvements in the appraisal 
     process generally, and specifically on the consistency in and 
     the effectiveness of, and possible improvements in, State 
     compliance efforts and programs in accordance with title XI 
     of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989. In addition, this study shall 
     examine the existing exemptions to the use of certified 
     appraisers issued by Federal financial institutions 
     regulatory agencies. The study shall also review the 
     threshold level established by Federal regulators for 
     compliance under title XI and whether there is a need to 
     revise them to reflect the addition of consumer protection to 
     the purposes and functions of the Appraisal Subcommittee. The 
     study shall additionally examine the quality of different 
     types of mortgage collateral valuations produced by broker 
     price opinions, automated valuation models, licensed 
     appraisals, and certified appraisals, among others, and the 
     quality of appraisals provided through different distribution 
     channels, including appraisal management companies, 
     independent appraisal operations within a mortgage 
     originator, and fee-for-service appraisals. The study shall 
     also include an analysis and statistical breakdown of 
     enforcement actions taken during the last 10 years against 
     different types of appraisers, including certified, licensed, 
     supervisory, and trainee appraisers. Furthermore, the study 
     shall examine the benefits and costs, as well as the 
     advantages and disadvantages, of establishing a national 
     repository to collect data related to real estate property 
     collateral valuations performed in the United States.
       (b) Report.--Before the end of the 18-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General shall submit a report on the study under 
     subsection (a) to the Committee on Financial Services of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate, together with such 
     recommendations for administrative or legislative action, at 
     the Federal or State level, as the Comptroller General may 
     determine to be appropriate.
       (c) Additional Study Required.--The Comptroller General 
     shall conduct an additional study to determine the effects 
     that the changes to the seller-guide appraisal requirements 
     of Fannie Mae and Freddie Mac contained in the Home Valuation 
     Code of Conduct have on small business, like mortgage brokers 
     and independent appraisers, and consumers, including the 
     effect on the--
       (1) quality and costs of appraisals;
       (2) length of time for obtaining appraisals;
       (3) impact on consumer protection, especially regarding 
     maintaining appraisal independence, abating appraisal 
     inflation, and mitigating acts of appraisal fraud;
       (4) structure of the appraisal industry, especially 
     regarding appraisal management companies, fee-for-service 
     appraisers, and the regulation of appraisal management 
     companies by the states; and
       (5) impact on mortgage brokers and other small business 
     professionals in the financial services industry.
       (d) Additional Report.--Before the end of the 6-month 
     period beginning on the date of the enactment of this Act, 
     the Comptroller General shall submit an additional report to 
     the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate containing the findings and 
     conclusions of the Comptroller General with respect to the 
     study conducted pursuant to subsection (c). Such additional 
     report shall take into consideration the Small Business 
     Administration's views on how small businesses are affected 
     by the Home Valuation Code of Conduct.

     SEC. 1115. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

       Subsection (e) of section 701 of the Equal Credit 
     Opportunity Act (15 U.S.C. 1691) is amended to read as 
     follows:
       ``(e) Copies Furnished to Applicants.--
       ``(1) In general.--Each creditor shall furnish to an 
     applicant a copy of any and all written appraisals and 
     valuations developed in connection with the applicant's 
     application for a loan that is secured or would have been 
     secured by a first lien on a dwelling promptly upon 
     completion, but in no case later than 3 days prior to the 
     closing of the loan, whether the creditor grants or denies 
     the applicant's request for credit or the application is 
     incomplete or withdrawn.
       ``(2) Waiver.--The applicant may waive the 3 day 
     requirement provided for in paragraph (1), except where 
     otherwise required in law.
       ``(3) Reimbursement.--The applicant may be required to pay 
     a reasonable fee to reimburse the creditor for the cost of 
     the appraisal, except where otherwise required in law.
       ``(4) Free copy.--Notwithstanding paragraph (3), the 
     creditor shall provide a copy of each written appraisal or 
     valuation at no additional cost to the applicant.
       ``(5) Notification to applicants.--At the time of 
     application, the creditor shall notify an applicant in 
     writing of the right to receive a copy of each written 
     appraisal and valuation under this subsection.
       ``(6) Regulations.--The Board shall prescribe regulations 
     to implement this subsection within 1 year of the date of the 
     enactment of this subsection.
       ``(7) Valuation defined.--For purposes of this subsection, 
     the term `valuation' shall include any estimate of the value 
     of a dwelling developed in connection with a creditor's 
     decision to provide credit, including those values developed 
     pursuant to a policy of a government sponsored enterprise or 
     by an automated valuation model, a broker price opinion, or 
     other methodology or mechanism.''.

     SEC. 1116. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 
                   AMENDMENT RELATING TO CERTAIN APPRAISAL FEES.

       Section 4 of the Real Estate Settlement Procedures Act of 
     1974 is amended by adding at the end the following new 
     subsection:
       ``(c) The standard form described in subsection (a) shall 
     include, in the case of an appraisal coordinated by an 
     appraisal management company (as such term is defined in 
     section 1121(11) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(11))), 
     a clear disclosure of--
       ``(1) the fee paid directly to the appraiser by such 
     company; and
       ``(2) the administration fee charged by such company.''.

[[Page 8211]]



     SEC. 1117. APPRAISAL INDEPENDENCE REQUIREMENTS.

       (a) Promulgation of New Requirements.--The Director shall 
     lead a Negotiated Rulemaking Committee under the Federal 
     Advisory Committee Act, the Negotiated Rulemaking Act, and 
     section 1022(b) of this title to promulgate appraisal 
     independence requirements for residential loan purposes, and 
     such Committee shall promulgate such requirements not later 
     than the end of the 60-day period beginning on the date of 
     the enactment of this title.
       (b) Certain Regulation Requirements.--Regulations 
     promulgated by the Negotiated Rulemaking Committee under this 
     section--
       (1) shall not prohibit lenders, the Federal National 
     Mortgage Association, or the Federal Home Loan Mortgage 
     Corporation from accepting any appraisal report completed by 
     an appraiser selected, retained, or compensated in any manner 
     by a mortgage loan originator--
       (A) licensed or registered in accordance with the SAFE 
     Mortgage Licensing Act of 2008; and
       (B) subject to Federal or State laws that make it unlawful 
     for a mortgage loan originator to make any payment, threat, 
     or promise, directly or indirectly, to any appraiser of a 
     property, for the purposes of influencing the independent 
     judgment of the appraiser with respect to the value of the 
     property, except that nothing in this section shall prohibit 
     a person with an interest in a real estate transaction from 
     asking an appraiser to--
       (i) consider additional, appropriate property information;
       (ii) provide further detail, substantiation, or explanation 
     for the appraiser's value conclusion; or
       (iii) correct errors in the appraisal report; and
       (2) shall include a requirement that lenders and their 
     agents compensate appraisers at a rate that is customary and 
     reasonable for appraisal services performed in the market 
     area of the property being appraised.
       (c) Sunset.--Effective on the date the appraisal 
     independence requirements are promulgated pursuant to 
     subsection (a), the Home Valuation Code of Conduct announced 
     by the Federal Housing Finance Agency on December 23, 2008, 
     shall have no force or effect.
                                 ______
                                 
  SA 4008. Mr. DORGAN (for himself, Mr. Levin, Ms. Cantwell, Mr. 
Feingold, Mr. Sanders, and Mr. Kaufman) submitted an amendment intended 
to be proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd 
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 584, line 7, after the first period insert the 
     following:
       ``(k) Clearing of Credit Default Swaps.--
       ``(1) Submission.--It shall be unlawful for any party to 
     enter into a credit default swap unless that person shall 
     submit such credit default swap for clearing to a derivatives 
     clearing organization that is registered under this Act or a 
     derivatives clearing organization that is exempt from 
     registration under section 5b(i) of this Act.
       ``(2) Prohibition.--Notwithstanding any other provisions in 
     this section or of this Act, if no derivatives clearing 
     organization will accept a credit default swap for clearing, 
     it shall be unlawful for any party to enter into the credit 
     default swap.
       ``(3) Limitation on short positions.--
       ``(A) In general.--It shall be unlawful for a protection 
     buyer to enter into a credit default swap which establishes a 
     short position in a reference entity's credit instrument 
     unless the protection buyer can demonstrate to the 
     Commission, in such manner and in such form as may be 
     prescribed by the Commission, that the protection buyer--
       ``(i) is undertaking such action to establish a legitimate 
     short position in credit default swaps; or
       ``(ii) is regulated by the Commission as a swap dealer in 
     credit default swaps, and is acting as a market-maker or is 
     otherwise engaged in a financial transaction on behalf of a 
     customer.
       ``(B) Legitimate short position in credit default swaps.--A 
     protection buyer's short position in credit default swaps 
     shall be considered a legitimate short position in credit 
     default swaps if--
       ``(i) the value of the protection buyer's holdings in valid 
     credit instruments is equal to or greater than the absolute 
     notional value of the protection buyer's credit default 
     swaps; and
       ``(ii) the reference entity or entities for the protection 
     buyer's credit default swaps in clause (i), whether in a 
     single-name, or a narrow-based index or a broad-based index 
     credit default swap transaction, must be the same as the 
     borrower or issuer, or borrowers or issuers, of the valid 
     credit instrument or valid credit instruments the protection 
     buyer owns.
       ``(C) Determination of the commission.--
       ``(i) In general.--The Commission and the Securities and 
     Exchange Commission, shall jointly establish and adopt rules, 
     regulations, or orders, in accordance with the public 
     interest, defining the term `valid credit instrument'.
       ``(ii) Considerations and requirements.--In defining the 
     term `valid credit instrument', the Commission and the 
     Securities and Exchange Commission shall consider which 
     group, category, type, or class of credit instruments can be 
     effectively hedged using credit default swaps.
       ``(iii) Rule of construction.--For purposes of this 
     paragraph, any instrument with an equity risk exposure or 
     equity-like features shall not be considered by the 
     Commission to be a valid credit instrument.
       ``(D) Reporting.--Each protection buyer shall report all of 
     its legitimate short positions in credit default swaps, as 
     well as any other credit default swap positions and the valid 
     credit instruments that it owns to the Commission, in such 
     manner, in such frequency, and in such form as may be 
     prescribed by the Commission.
       ``(E) Holding of short positions in credit default swaps by 
     swap dealers.--Any swap dealer in credit default swaps 
     seeking to establish, possess, or otherwise obtain a short 
     position as the protection buyer of any credit default swap 
     for more than 60 consecutive calendar days or for more than 
     two-thirds of the days in any calendar quarter, shall 
     demonstrate to the Commission, in such manner and in such 
     form as may be prescribed by the Commission, that--
       ``(i) the value of the swap dealer's holdings in valid 
     credit instruments is equal to or greater than the absolute 
     notional value of the swap dealer's position in credit 
     default swaps; and
       ``(ii) the reference entity or entities for the swap 
     dealer's credit default swaps in clause (i), whether in a 
     single-name, or a narrow-based index or a broad-based index 
     credit default swap transaction, must be the same as the 
     borrower or issuer, or borrowers or issuers, of the valid 
     credit instrument or valid credit instruments the swap dealer 
     owns.
       ``(F) Prohibition on evasions and structuring of 
     transactions.--No person, including any protection buyer, 
     protection seller, or counterparty, may take any action in 
     connection with a credit default swap to structure such swap 
     for the purpose and with the intent of evading the provisions 
     of this subsection.
       ``(G) Authority of the commission.--The Commission, in 
     consultation with the Securities and Exchange Commission, 
     may, in the public interest, for the protection of investors, 
     for the protection of market participants, and the 
     maintenance of fair and orderly markets, prohibit any other 
     action, practice, or conduct in connection with or related to 
     the direct or indirect purchase or sale of credit default 
     swaps.
       ``(4) Definitions.--
       ``(A) In general.--In this subsection, the following 
     definitions shall apply:
       ``(i) Credit default swap.--The term `credit default 
     swap'--

       ``(I) means a swap or security-based swap whose payout is 
     determined by the occurrence of a credit event with respect 
     to a single referenced credit instrument or reference entity 
     or multiple referenced credit instruments or reference 
     entities; and
       ``(II) is not a debt security registered with the 
     Securities and Exchange Commission and issued by a 
     corporation, State, municipality, or sovereign entity.

       ``(ii) Credit event.--The term `credit event' includes a 
     default, restructuring, insolvency, bankruptcy, credit 
     downgrade, and a violation of a debt covenant.
       ``(iii) Protection buyer.--The term `protection buyer' 
     means a person that enters into a credit default swap to 
     obtain a payoff from a third party (commonly referred to as 
     the `protection seller') upon the occurrence of one or more 
     credit events.
       ``(iv) Reference entity.--The term `reference entity' means 
     any borrower, such as a corporation, State, municipality, 
     sovereign entity, or special purpose entity, which has issued 
     a public debt obligation or obtained a loan that is 
     referenced by a credit default swap.
       ``(B) Further definition of terms.--The Commission and the 
     Securities and Exchange Commission, shall jointly establish 
     and adopt rules, regulations, or orders, in accordance with 
     the public interest, further defining the terms `credit 
     default swap', `credit event', `protection buyer', and 
     `reference entity'.
       On page 808, line 8, after the first period, insert the 
     following:

     ``SEC. 3C-1. CLEARING OF CREDIT DEFAULT SWAPS.

       ``(a) Submission.--It shall be unlawful for any party to 
     enter into a credit default swap unless that person shall 
     submit such credit default swap for clearing to a clearing 
     agency that is registered under section 17A of this Act.
       ``(b) Prohibition.--Notwithstanding any other provisions in 
     this section or of this

[[Page 8212]]

     Act, if no clearing agency will accept a credit default swap 
     for clearing, it shall be unlawful for any party to enter 
     into the credit default swap.
       ``(c) Limitation on Short Positions.--
       ``(1) In general.--It shall be unlawful for a protection 
     buyer to enter into a credit default swap which establishes a 
     short position in a reference entity's credit unless the 
     protection buyer can demonstrate to the Commission, in such 
     manner and in such form as may be prescribed by the 
     Commission, that the protection buyer--
       ``(A) is undertaking such action to establish a legitimate 
     short position in credit default swaps; or
       ``(B) is regulated by the Commission as a security-based 
     swap dealer in credit default swaps, and is acting as a 
     market-maker or otherwise for the purpose of serving clients.
       ``(2) Legitimate short position in credit default swaps.--A 
     protection buyer's short position in credit default swaps 
     shall be considered a legitimate short position in credit 
     default swaps if --
       ``(A) the value of the protection buyer's holdings in valid 
     credit instruments is equal to or greater than the absolute 
     notional value of the protection buyer's credit default 
     swaps; and
       ``(B) the reference entity or entities for the protection 
     buyer's credit default swaps in subparagraph (A), whether in 
     a single-name, or a narrow-based index or a broad-based index 
     credit default swap transaction, must be the same as the 
     borrower or issuer, or borrowers or issuers, of the valid 
     credit instrument or valid credit instruments the protection 
     buyer owns.
       ``(3) Determination of the commission.--
       ``(A) In general.--The Commission and the Commodity Futures 
     Trading Commission, shall jointly establish and adopt rules, 
     regulations, or orders, in accordance with the public 
     interest, defining the term `valid credit instrument'.
       ``(B) Considerations and requirements.--In defining the 
     term `valid credit instrument', the Commission and the 
     Commodity Futures Trading Commission shall consider which 
     group, category, type, or class of credit instruments can be 
     effectively hedged using credit default swaps.
       ``(C) Rule of construction.--For purposes of this 
     subsection, any instrument with an equity risk exposure or 
     equity-like features shall not be considered by the 
     Commission to be a valid credit instrument.
       ``(4) Reporting.--Each protection buyer shall report all of 
     its legitimate short positions in credit default swaps, as 
     well as any other credit default swap positions and the valid 
     credit instruments that it owns to the Commission, in such 
     manner, in such frequency, and in such form as may be 
     prescribed by the Commission.
       ``(5) Holdings of short positions in credit default swaps 
     by security-based swap dealers.--Any security-based swap 
     dealer in credit default swaps seeking to establish, possess, 
     or otherwise obtain a short position as the protection buyer 
     of any credit default swap for more than 60 consecutive 
     calendar days or for more than two-thirds of the days in any 
     calendar quarter, shall demonstrate to the Commission, in 
     such manner and in such form as may be prescribed by the 
     Commission, that--
       ``(A) the value of the security-based swap dealer's long 
     holdings in valid credit instruments is equal to or greater 
     than the absolute notional value of the security-based swap 
     dealer's position in credit default swaps; and
       ``(B) the reference entity or entities for the security-
     based swap dealer's credit default swaps in subparagraph (A), 
     whether in a single-name, or a narrow-based index or a broad-
     based index credit default swap transaction, must be the same 
     as the borrower or issuer, or borrowers or issuers, of the 
     valid credit instrument or valid credit instruments the 
     security-based swaps dealer owns.
       ``(6) Prohibition on evasions and structuring of 
     transactions.--No person, including any protection buyer, 
     protection seller, or counterparty, may take any action in 
     connection with a credit default swap to structure such swap 
     for the purpose and with the intent of evading the provisions 
     of this section.
       ``(7) Authority of the commission.--The Commission, in 
     consultation with the Commodity Futures Trading Commission, 
     may, in the public interest, for the protection of investors, 
     for the protection of market participants, and the 
     maintenance of fair and orderly markets, prohibit any other 
     action, practice, or conduct in connection with or related to 
     the direct or indirect purchase or sale of credit default 
     swaps.
       ``(d) Definitions.--
       ``(1) In general.--In this section, the following 
     definitions shall apply:
       ``(A) Credit default swap.--The term `credit default 
     swap'--
       ``(i) means a swap or security-based swap whose payout is 
     determined by the occurrence of a credit event with respect 
     to a single referenced credit instrument or reference entity 
     or multiple referenced credit instruments or reference 
     entities; and
       ``(ii) is not a debt security registered with the 
     Commission and issued by a corporation, State, municipality, 
     or sovereign entity.
       ``(B) Credit event.--The term `credit event' includes a 
     default, restructuring, insolvency, bankruptcy, credit 
     downgrade, and a violation of a debt covenant.
       ``(C) Protection buyer.--The term `protection buyer' means 
     a person that enters into a credit default swap to obtain a 
     payoff from a third party (commonly referred to as the 
     `protection seller') upon the occurrence of one or more 
     credit events.
       ``(D) Reference entity.--The term `reference entity' means 
     any borrower, such as a corporation, State, municipality, 
     sovereign entity, or special purpose entity, which has issued 
     a public debt obligation or obtained a loan that is 
     referenced by a credit default swap.
       ``(2) Further definition of terms.--The Commission and the 
     Commodity Futures Trading Commission, shall jointly establish 
     and adopt rules, regulations, or orders, in accordance with 
     the public interest, further defining the terms `credit 
     default swap', `credit event', `protection buyer', and 
     `reference entity'.
       On page 1056, line 17, strike the second period and insert 
     the following: ``.

     SEC. 946. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       The Securities Act of 1933 (15 U.S.C. 77a et seq.) is 
     amended by inserting after section 5 the following:

     ``SEC. 5A. RESTRICTION ON SYNTHETIC ASSET-BACKED SECURITIES.

       ``(a) Definition.--For purposes of this section, the term 
     `synthetic asset-backed security' means an asset-backed 
     security, as defined in section 3(a)(77) of the Securities 
     Exchange Act of 1934, with respect to which, by design, the 
     self-liquidating financial assets referenced in the synthetic 
     securitization do not provide any direct payment or cash flow 
     to the holders of the security.
       ``(b) Restriction.--
       ``(1) In general.--No issuer, underwriter, placement agent, 
     sponsor, or initial purchaser may offer, sell, or transfer a 
     synthetic asset-backed security that has no purpose apart 
     from speculation on a possible future gain or loss associated 
     with the value or condition of the referenced assets. The 
     Commission may determine, by rule or otherwise, whether a 
     security is included within the description set forth in the 
     preceding sentence. Any such determination by the Commission, 
     other than by rule, is not subject to judicial review.
       ``(2) Rulemaking.--Not later than 270 days after the date 
     of enactment of this section, the Commission shall issue 
     rules carry out this section and to prevent evasions 
     thereof.''.
                                 ______
                                 
  SA 4009. Ms. COLLINS submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 893, after line 25, insert the following:

     SEC. 774. STANDARDS OF CONDUCT FOR BROKERS, DEALERS, AND 
                   INVESTMENT ADVISERS.

       (a) Amendment to Securities Exchange Act of 1934.--Section 
     15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is 
     amended by adding at the end the following:
       ``(k) Standards of Conduct.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title or the Investment Advisers Act of 1940, the 
     Commission shall issue rules to provide, in substance, that 
     the standards of conduct for all brokers, dealers, and 
     investment advisers, in providing investment advice about 
     securities to retail customers, shall be to act in the 
     interest of the customer, without regard to the financial or 
     other interest of the broker, dealer, or investment adviser 
     providing the advice.
       ``(2) Exclusion for limited range of products offered.--
     Paragraph (1) shall not apply with respect to any limited 
     representative-investment company and variable contracts 
     products, or for any other broker or dealer, as defined by 
     the Commission, who sells only proprietary or other limited 
     range of products.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Retail customer defined.--The term `retail customer' 
     means a natural person, or the legal representative of such 
     natural person, who--
       ``(i) receives personalized investment advice about 
     securities from a broker or dealer; and
       ``(ii) uses such advice primarily for personal, family, or 
     household purposes.
       ``(B) Limited representative-investment company and 
     variable contracts products.--The term `limited 
     representative-investment company and variable contracts 
     product' shall have the meaning given such

[[Page 8213]]

     term by rule of the Commission, and includes any person that 
     is licensed by a registered security association pursuant to 
     section 15A--
       ``(i) the activities of which in the investment banking and 
     securities business are limited to the solicitation, 
     purchase, and sale of--

       ``(I) redeemable securities of companies registered 
     pursuant to the Investment Company Act of 1940;
       ``(II) securities of closed-end companies registered 
     pursuant to the Investment Company Act of 1940, during the 
     period of original distribution only; and
       ``(III) variable contracts and insurance premium funding 
     programs and other contracts issued by an insurance company, 
     other than any contract that is an exempt security pursuant 
     to section 3(a)(8) of the Securities Act of 1933; and

       ``(ii) does not function as a representative in any 
     financial instrument that is not described in clause (i).
       ``(l) Other Matters.--
       ``(1) In general.--The Commission shall--
       ``(A) facilitate the provision of clear, appropriate 
     disclosures to customers regarding the terms of their 
     relationships with, material conflicts of interest of, and 
     direct and indirect compensation to, brokers, dealers, and 
     investment advisers; and
       ``(B) examine and, where appropriate, promulgate rules 
     regulating sales practices, conflicts of interest, and 
     compensation schemes for financial intermediaries (including 
     brokers, dealers, and investment advisers) that the 
     Commission deems contrary to the public interest and the 
     interests of investors.
       ``(2) Rule of construction.--The receipt of compensation 
     based on commission or other standard compensation for the 
     sale of securities shall not, in and of itself, be considered 
     a violation of the standard, under paragraph (1)(A), when 
     applied to a broker or dealer. Nothing in this section shall 
     require a broker or dealer or registered representative to 
     have a continuing duty of care or loyalty to the customer 
     after providing personalized investment advice about 
     securities.
       ``(m) Harmonization of Enforcement and Remedy 
     Regulations.--The Commission shall issue regulations to 
     ensure, to the extent practicable, that the enforcement 
     options and remedies available for violations of the standard 
     of conduct applicable to a broker or dealer providing 
     investment advice to a customer are commensurate with those 
     enforcement options and remedies available for violations of 
     the standard of conduct applicable to investment advisers 
     under the Investment Advisers Act of 1940.''.
       (b) Amendment to Investment Advisers Act of 1940.--Section 
     211 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-11) 
     is amended by adding at the end the following:
       ``(f) Standards of Conduct.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title or the Securities Exchange Act of 1934, the 
     Commission shall promulgate rules to provide that the 
     standards of conduct for all brokers, dealers, and investment 
     advisers, in providing investment advice to retail customers, 
     shall be to act in the best interest of the customer, without 
     regard to the financial or other interest of the broker, 
     dealer, or investment adviser providing the advice.
       ``(2) Retail customer defined.--For purposes of this 
     subsection, the term `retail customer' means a natural 
     person, or the legal representative of such natural person, 
     who--
       ``(A) receives personalized investment advice about 
     securities from a broker or dealer; and
       ``(B) uses such advice primarily for personal, family, or 
     household purposes.
       ``(g) Other Matters.--
       ``(1) In general.--The Commission shall--
       ``(A) facilitate the provision of clear, appropriate 
     disclosures to customers regarding the terms of their 
     relationships with, material conflicts of interest of, and 
     direct and indirect compensation to, brokers, dealers, and 
     investment advisers; and
       ``(B) examine and, where appropriate, promulgate rules 
     regulating sales practices, conflicts of interest, and 
     compensation schemes for financial intermediaries (including 
     brokers, dealers, and investment advisers) that the 
     Commission deems contrary to the public interest and the 
     interests of investors.''.
                                 ______
                                 
  SA 4010. Mr. SHELBY submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1223, strike line 9 and all that follows through 
     page 1225, line 3 and insert the following:
       (a) Annual Assessments.--
       (1) In general.--The Bureau shall establish, by rule, a 
     system of assessments to fund the operations of the Bureau. 
     Such rules shall apply only to those covered persons having 
     total consolidated assets of more than $50,000,000,000, and 
     shall require annual assessments from each such covered 
     person.
       (2) Funding cap.--Notwithstanding paragraph (1), and in 
     accordance with this paragraph, the amount that shall be 
     collected by the Bureau through assessments in each fiscal 
     year shall not exceed a fixed percentage of the total 
     operating expenses of the Federal Reserve System, as reported 
     in the Annual Report, 2006, of the Board of Governors, equal 
     to--
       (A) 10 percent of such expenses in fiscal year 2011;
       (B) 11 percent of such expenses in fiscal year 2012; and
       (C) 12 percent of such expenses in fiscal year 2013, and in 
     each fiscal year thereafter.
       (3) Transition period.--Beginning on the date of enactment 
     of this Act and until the designated transfer date, the Board 
     of Governors shall transfer to the Bureau the amount 
     estimated by the Secretary needed to carry out the 
     authorities granted to the Bureau under Federal consumer 
     financial law, from the date of enactment of this Act until 
     the designated transfer date, which amount may not exceed 8 
     percent of the total operating expenses of the Federal 
     Reserve System, as reported in the Annual Report, 2006, of 
     the Board of Governors.
                                 ______
                                 
  SA 4011. Mr. BURRIS submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 104, line 24, insert before the period the 
     following: ``, and shall require such companies to update 
     their resolution plans required under subsection (d)(1), as 
     the Board of Governors determines appropriate, based on the 
     results of the analyses''.
                                 ______
                                 
  SA 4012. Mrs. SHAHEEN (for herself, Mr. Brown of Massachusetts, Mr. 
Kerry, Mr. Gregg, and Mr. Nelson of Nebraska) submitted an amendment 
intended to be proposed to amendment SA 3739 proposed by Mr. Reid (for 
Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail,'' to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 295, between lines 19 and 20, insert the following:
       (t) Treatment of Certain Nonbank Financial Companies Not 
     Subject to Orderly Liquidation.--
       (1) In general.--Subsections (n) and (o) shall not apply to 
     any nonbank financial company that is subject to liquidation 
     or rehabilitation under State law, unless such company--
       (A) is determined to be a nonbank financial company 
     supervised by the Board of Governors pursuant to section 113; 
     or
       (B) is determined by the Corporation to have benefitted 
     financially from the orderly liquidation of a covered 
     financial company and the use of the Fund under this title by 
     receiving payments or credit pursuant to subsection (b)(4), 
     (d)(4), or (h)(5)(E).
       (2) Exclusion of assets.--Any assets of a nonbank financial 
     company described in paragraph (1) shall be excluded for 
     purposes of calculating a financial company's total 
     consolidated assets under subsection (o).
                                 ______
                                 
  SA 4013. Mrs. McCASKILL submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail,'' 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1455, line 25, strike the period at the end and 
     insert the following: ``.

[[Page 8214]]



     SEC. 1077. TREATMENT OF REVERSE MORTGAGES.

       (a) In General.--The Director shall examine the practices 
     of covered persons in connection with any reverse mortgage 
     transaction (as defined in section 103(bb) of the Truth in 
     Lending Act (15 U.S.C. 1602)) and shall prescribe regulations 
     identifying any acts or practices as unlawful, unfair, 
     deceptive, or abusive in connection with a reverse mortgage 
     transaction or the offering of a reverse mortgage.
       (b) Regulations.--In prescribing regulations under 
     subsection (a), the Director shall ensure that such 
     regulations shall--
       (1) include requirements for--
       (A) the purpose of preventing unlawful, unfair, deceptive 
     or abusive acts and practices in connection with a reverse 
     mortgage transaction; and
       (B) the purpose of providing timely, appropriate, and 
     effective disclosures to consumers in connection with a 
     reverse mortgage transaction that incorporate the 
     requirements of section 138 of the Truth in Lending Act (15 
     U.S.C. 1648), and otherwise are consistent with requirements 
     prescribed by the Director in connection with other consumer 
     mortgage products or services under this title;
       (2) with respect to the requirements under paragraph (1), 
     be consistent with requirements prescribed by the Director in 
     connection with other consumer mortgage products or services 
     under this title; and
       (3) provide for an integrated disclosure standard and model 
     disclosures for reverse mortgage transactions, that combines 
     the relevant disclosures required under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2601 et seq.), with the 
     disclosures required to be provided to consumers for home 
     equity conversion mortgages under section 255 of the National 
     Housing Act (12 U.S.C. 12 U.S.C. 1715z-20).
       (c) Consultation.--In connection with the issuance of any 
     regulations under this section, the Director shall consult 
     with the Federal banking agencies, State bank supervisors, 
     the Federal Trade Commission, and the Department of Housing 
     and Urban Development, as appropriate, to ensure that any 
     proposed regulation--
       (1) imposes substantially similar requirements on all 
     covered persons; and
       (2) is consistent with prudential, consumer protection, 
     civil rights, market or systemic objectives administered by 
     such agencies or supervisors.
       (d) Deadline for Rulemaking.--The Director shall commence 
     the rulemaking required under subsection (a) not later than 
     12 months after the date of enactment of this Act.
                                 ______
                                 
  SA 4014. Mrs. McCASKILL (for herself and Mr. Kohl) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1455, line 25, strike the period at the end and 
     insert the following: ``.

     SEC. 1077. TREATMENT OF REVERSE MORTGAGES.

       (a) In General.--The Director shall examine the practices 
     of covered persons in connection with any reverse mortgage 
     transaction (as defined in section 103(bb) of the Truth in 
     Lending Act (15 U.S.C. 1602)) and shall prescribe regulations 
     identifying any acts or practices as unlawful, unfair, 
     deceptive, or abusive in connection with a reverse mortgage 
     transaction or the recommendation or offering of a reverse 
     mortgage.
       (b) Regulations.--In prescribing regulations under 
     subsection (a), the Director shall ensure that such 
     regulations shall--
       (1) include requirements for the purpose of--
       (A) preventing unlawful, unfair, deceptive or abusive acts 
     and practices in connection with a reverse mortgage 
     transaction (including the solicitation or recommendation of 
     a reverse mortgage transaction);
       (B) providing timely, appropriate, and effective 
     disclosures to consumers in connection with a reverse 
     mortgage transaction that incorporate the requirements of 
     section 138 of the Truth in Lending Act (15 U.S.C. 1648), and 
     otherwise are consistent with requirements prescribed by the 
     Director in connection with other consumer mortgage products 
     or services under this title;
       (C) making a determination of the suitability of a reverse 
     mortgage for a consumer--
       (i) creating a presumption of unsuitability, if--

       (I) the mortgagor plans to use the funds obtained from the 
     reverse mortgage to purchase an annuity or make an 
     investment;
       (II) the mortgagor is married and the spouse of the 
     mortgagor is not a party to the mortgage; or
       (III) a person is removed from the title to the dwelling in 
     the process of obtaining the reverse mortgage; and

       (ii) taking into consideration--

       (I) whether the mortgagor intends to reside in the property 
     on a long-term basis;
       (II) if the mortgagor is married or has a dependent, the 
     potential impact of a reverse mortgage on the future economic 
     security of the spouse or dependent of the mortgagor and all 
     tenants of the home;
       (III) whether a reverse mortgage will affect the 
     eligibility of the mortgagor to receive Government benefits;
       (IV) whether the mortgagor intends to pass the residence to 
     an heir and the ability of such heir to repay the reverse 
     mortgage loan;
       (V) whether a resident of the home who is not the mortgagor 
     could be displaced at the maturity of the reverse mortgage 
     against the wishes of the mortgagor, and, if any such 
     resident is disabled, the consequences of the displacement 
     for such resident; and
       (VI) any other circumstances, as the Director may require;

       (2) with respect to the requirements under paragraph (1), 
     be consistent with requirements prescribed by the Director in 
     connection with other consumer mortgage products or services 
     under this title;
       (3) provide for an integrated disclosure standard and model 
     disclosures for reverse mortgage transactions, that combines 
     the relevant disclosures required under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2601 et seq.), with the 
     disclosures required to be provided to consumers for home 
     equity conversion mortgages under section 255 of the National 
     Housing Act (12 U.S.C. 1715z-20);
       (4) prohibit any person from advertising a reverse mortgage 
     in a manner that--
       (A) is false or misleading;
       (B) fails to present equally the risks and benefits of 
     reverse mortgages; or
       (C) fails to reveal--
       (i) negative facts that are material to a representation 
     made in such advertisement;
       (ii) facts relating to the responsibilities of the 
     mortgagor for property taxes, insurance, maintenance, or 
     repairs and the consequences of failing to meet such 
     responsibilities, including default and foreclosure;
       (iii) the consequences of obtaining a reverse mortgage; or
       (iv) any forms of default that might lead to foreclosure;
       (5) prohibit a person from requiring or recommending that a 
     mortgagor purchase insurance (except for title, flood, and 
     other peril insurance, as determined by the Director), an 
     annuity, or other similar product in connection with a 
     reverse mortgage;
       (6) require that each reverse mortgage provide that 
     prepayment, in whole or in part, may be made without penalty 
     at any time during the period of the mortgage;
       (7) require that any mortgagor under a reverse mortgage 
     receive adequate counseling, including--
       (A) in the case of a reverse mortgage in which a person was 
     removed from the title to the dwelling, information about--
       (i) the consequences of being removed from such title; and
       (ii) the consequences upon the death of the mortgagor or a 
     divorce settlement;
       (B) general information about the potential consequences of 
     borrowing more funds than are necessary to meet the immediate 
     personal financial goals of the mortgagor;
       (C) the responsibilities of the mortgagor relating to 
     property taxes, insurance, maintenance, and repairs and the 
     consequences of failing to meet such responsibilities, 
     including default and foreclosure;
       (D) an explanation of the actions that would constitute a 
     default under the terms of the reverse mortgage and how a 
     default might lead to foreclosure;
       (E) an explanation of the circumstances, if any, under 
     which the mortgagor, an heir of the mortgagor, or the estate 
     of the mortgagor, would be liable for any amount by which the 
     amount of the indebtedness of the mortgagor under the reverse 
     mortgage exceeds the appraised value of the dwelling securing 
     the mortgage upon termination of the mortgage;
       (F) an explanation of the circumstances, if any, under 
     which the spouse, heir, or estate of the mortgagor would be 
     prevented from purchasing the dwelling securing the mortgage 
     upon termination of the mortgage; and
       (G) any other information that the Director may require; 
     and
       (8) require that any person that provides counseling to a 
     mortgagor under a reverse mortgage report to the Bureau any 
     suspected mortgage-related fraud against a mortgagor.
       (c) Consultation.--In connection with the issuance of any 
     regulations under this section, the Director shall consult 
     with the Federal banking agencies, State bank supervisors, 
     the Federal Trade Commission, and the Department of Housing 
     and Urban Development, as appropriate, to ensure that any 
     proposed regulation--
       (1) imposes substantially similar requirements on all 
     covered persons; and
       (2) is consistent with prudential, consumer protection, 
     civil rights, market, or systemic objectives administered by 
     such agencies or supervisors.

[[Page 8215]]

       (d) Deadline for Rulemaking.--The Director shall commence 
     the rulemaking required under subsection (a) not later than 
     12 months after the date of enactment of this Act.
                                 ______
                                 
  SA 4015. Mr. VITTER submitted an amendment intended to be proposed by 
Mr. Leahy (for himself, Mr. Durbin, Mr. Rockefeller, Mr. Schumer, Mrs. 
Feinstein, Mr. Specter, Mr. Whitehouse, Ms. Cantwell, Mr. Kaufman, Mrs. 
Gillibrand, Mr. Wyden, Mr. Brown of Ohio, Mr. Lieberman, Mr. Burris, 
Mrs. McCaskill, Mr. Franken, Mr. Bennet, Mr. Feingold, Mr. Lautenberg, 
Mr. Webb, Mrs. Boxer, and Ms. Landrieu) to the amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the amendment, insert the following:

     SEC. ___. SUSPENSION OF THE HEALTH CARE ACT.

       If at the beginning of any fiscal year OMB determines that 
     the deficit targets set forth in the CBO budget report of 
     March 20, 2010 will not be met, the provisions of Public Law 
     111-148 shall be suspended for that year.
                                 ______
                                 
  SA 4016. Mr. UDALL of Colorado (for himself, Mr. Lugar, Mr. 
Lautenberg, Mr. Bond, Mr. Begich, Mr. Schumer, and Mr. Levin) submitted 
an amendment intended to be proposed to amendment SA 3739 proposed by 
Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 
3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail,'' to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1455, after line 25, insert the following:

     SEC. 1077. USE OF CONSUMER REPORTS.

       Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
     1681m) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by inserting after paragraph (1) the following:
       ``(2) provide to the consumer written or electronic 
     disclosure--
       ``(A) of a numerical credit score as defined in section 
     609(f)(2)(A) used by such person in taking any adverse action 
     based in whole or in part on any information in a consumer 
     report; and
       ``(B) of the information set forth in subparagraphs (B) 
     through (E) of section 609(f)(1);''; and
       (C) in paragraph (4) (as so redesignated), by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''; and
       (2) in subsection (h)(5)--
       (A) in subparagraph (C), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (D), by striking the period and 
     inserting ``; and''; and
       (C) by inserting at the end the following:
       ``(E) include a statement informing the consumer of--
       ``(i) a numerical credit score as defined in section 
     609(f)(2)(A), used by such person in connection with the 
     credit decision described in paragraph (1) based in whole or 
     in part on any information in a consumer report; and
       ``(ii) the information set forth in subparagraphs (B) 
     through (E) of section 609(f)(1).''.
                                 ______
                                 
  SA 4017. Mr. ENZI (for himself and Ms. Murkowski) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail,'' to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1257, after line 25, insert the following:
       (g) William D. Ford Federal Direct Loan Program.--
       (1) In general.--Notwithstanding any other provision of 
     this title, this section shall apply to any Federal 
     contractor, agent, or employee involved in originating, 
     servicing, debt collection, refinancing, or other consumer 
     related activity relating to a loan under the William D. Ford 
     Federal Direct Loan Program under part D of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1087a et seq.).
       (2) Definitions.--For purposes of carrying out this title--
       (A) the term ``covered person'' includes any person acting 
     as a contractor, agent, or employee of the Federal Government 
     in providing a loan under the William D. Ford Federal Direct 
     Loan Program;
       (B) the term ``enumerated consumer laws'' includes any 
     provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
     et seq.) relating to such program; and
       (C) the term ``financial product or service'' includes a 
     loan under such program.
                                 ______
                                 
  SA 4018. Mr. ENZI submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1290, line 4, strike ``respectively.'' insert the 
     following: ``respectively.
       (s) Consumer Privacy.--Notwithstanding any other provision 
     of this Act, any provision of the enumerated consumer laws, 
     or any other provision of Federal law, the Bureau may not 
     investigate an individual transaction to which a consumer is 
     a party without the written permission of the consumer.
                                 ______
                                 
  SA 4019. Mr. DODD (for Mr. Wyden (for himself, Mr. Grassley, Mr. 
Inhofe, Mr. Bennet, Mr. Udall of Colorado, Mr. Brown of Ohio, Mr. 
Merkley, and Ms. Collins)) proposed an amendment to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the amendment, insert the following:

     SEC. __. ELIMINATING SECRET SENATE HOLDS.

       (a) In General.--
       (1) Covered request.--This standing order shall apply to a 
     notice of intent to object to the following covered requests:
       (A) A unanimous consent request to proceed to a bill, 
     resolution, joint resolution, concurrent resolution, 
     conference report, or amendment between the Houses.
       (B) A unanimous consent request to pass a bill or joint 
     resolution or adopt a resolution, concurrent resolution, 
     conference report, or the disposition of an amendment between 
     the Houses.
       (C) A unanimous consent request for disposition of a 
     nomination.
       (2) Recognition of notice of intent.--The majority and 
     minority leaders of the Senate or their designees shall 
     recognize a notice of intent to object to a covered request 
     of a Senator who is a member of their caucus if the Senator--
       (A) submits the notice of intent to object in writing to 
     the appropriate leader and grants in the notice of intent to 
     object permission for the leader or designee to object in the 
     Senator's name; and
       (B) not later than 2 session days after submitting the 
     notice of intent to object to the appropriate leader, submits 
     a copy of the notice of intent to object to the Congressional 
     Record and to the Legislative Clerk for inclusion in the 
     applicable calendar section described in subsection (b).
       (3) Form of notice.--To be recognized by the appropriate 
     leader a Senator shall submit the following notice of intent 
     to object:
       ``I, Senator _______, intend to object to ________, dated 
     _______. I will submit a copy of this notice to the 
     Legislative Clerk and the Congressional Record within 2 
     session days and I give my permission to the objecting 
     Senator to object in my name.'' The first blank shall be 
     filled with the name of the Senator, the second blank shall 
     be filled with the name of the covered request, the name of 
     the measure or matter and, if applicable, the calendar 
     number, and the third blank shall be filled with the date 
     that the notice of intent to object is submitted.
       (b) Calendar.--Upon receiving the submission under 
     subsection (a)(2)(B), the Legislative Clerk shall add the 
     information from

[[Page 8216]]

     the notice of intent to object to the applicable Calendar 
     section entitled ``Notices of Intent to Object to 
     Proceeding'' created by Public Law 110-81. Each section shall 
     include the name of each Senator filing a notice under 
     subsection (a)(2)(B), the measure or matter covered by the 
     calendar to which the notice of intent to object relates, and 
     the date the notice of intent to object was filed.
       (c) Removal.--A Senator may have a notice of intent to 
     object relating to that Senator removed from a calendar to 
     which it was added under subsection (b) by submitting for 
     inclusion in the Congressional Record the following notice:
       ``I, Senator _____, do not object to _______, dated 
     _____.'' The first blank shall be filled with the name of the 
     Senator, the second blank shall be filled with the name of 
     the covered request, the name of the measure or matter and, 
     if applicable, the calendar number, and the third blank shall 
     be filled with the date of the submission to the 
     Congressional Record under this subsection.
       (d) Objecting on Behalf of a Member.--If a Senator who has 
     notified his or her leader of an intent to object to a 
     covered request fails to submit a notice of intent to object 
     under subsection (a)(2)(B) within 2 session days following an 
     objection to a covered request by the leader or his or her 
     designee on that Senator's behalf, the Legislative Clerk 
     shall list the Senator who made the objection to the covered 
     request in the applicable ``Notice of Intent to Object to 
     Proceeding'' calendar section.
                                 ______
                                 
  SA 4020. Mr. CRAPO (for himself, Mr. Gregg, Mr. Shelby, Mr. McCain, 
Mr. Vitter, Mrs. Hutchison, and Mr. Corker) submitted an amendment 
intended to be proposed by him to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail,'' 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

                 TITLE XIII--FANNIE MAE AND FREDDIE MAC

                      Subtitle A--Ending Bailouts

     SEC. 1311. SHORT TITLE.

       This subtitle may be cited as the ``Ending Bailouts of 
     Fannie Mae and Freddie Mac Act''.

     SEC. 1312. REESTABLISHING THE MAXIMUM AGGREGATE AMOUNT 
                   PERMITTED TO BE PROVIDED BY THE TAXPAYERS TO 
                   FANNIE MAE AND FREDDIE MAC.

       Section 1367(b)(2) of the Federal Housing Enterprises 
     Financial Safety and Soundness Act of 1992 (12 U.S.C. 
     4617(b)(2)) is amended by adding at the end the following new 
     subparagraph:
       ``(L) Reestablishment of taxpayer funding caps.--The 
     Agency, as conservator, shall prevent a regulated entity from 
     requesting or receiving any funds from the United States 
     Department of the Treasury, as part of the Amended and 
     Restated Senior Preferred Stock Purchase Agreement, dated as 
     of September 26, 2008, amended May 6, 2009, and further 
     amended December 24, 2009, between the United State 
     Department of the Treasury and the Federal Home Loan Mortgage 
     Corporation, or the Federal National Mortgage Association, 
     that exceeds a maximum aggregate amount of 
     $200,000,000,000.''.

     SEC. 1313. REESTABLISHING SCHEDULED REDUCTION OF MORTGAGE 
                   ASSETS OWNED BY FANNIE MAE AND FREDDIE MAC.

       Section 1367(b)(2) of the Federal Housing Enterprises 
     Financial Safety and Soundness Act of 1992 (12 U.S.C. 
     4617(b)(2)) is amended by adding at the end the following new 
     subparagraph:
       ``(M) Reduction of owned mortgage assets.--
       ``(i) In general.--The Agency, as conservator, shall ensure 
     that a regulated entity does not own, as of any applicable 
     date, mortgage assets in excess of 90.0 percent of the 
     aggregate amount of mortgage assets that the regulated entity 
     owned on December 31 of each of the previous year, provided, 
     that in no event shall the regulated entity be required under 
     this subparagraph to own less than $250,000,000,000 in 
     mortgage assets.
       ``(ii) Definition of mortgage assets.--For purposes of this 
     subparagraph, the term `mortgage assets' means with respect 
     to a regulated entity, assets of such entity consisting of 
     mortgages, mortgage loans, mortgage-related securities, 
     participation certificates, mortgage-backed commercial paper, 
     obligations of real estate mortgage investment conduits and 
     similar assets, in each case to the extent such assets would 
     appear on the balance sheet of such entity in accordance with 
     generally accepted accounting principles.''.

     SEC. 1314. ENSURING CONGRESSIONAL REVIEW FOR AGREEMENTS 
                   INCREASING TAXPAYER RISK.

       Section 1367(b)(2) of the Federal Housing Enterprises 
     Financial Safety and Soundness Act of 1992 (12 U.S.C. 
     4617(b)(2)), as amended by sections 1203 and 1204, is further 
     amended by adding at the end the following new subparagraph:
       ``(N) Agreements.--
       ``(i) In general.--The Agency, as conservator or receiver, 
     may enter into agreements that are consistent with its 
     appointment as conservator or receiver with the regulated 
     entity and that expire prior to, or upon, the regulated 
     entity's emergence from conservatorship or receivership 
     provided--

       ``(I) the agreement does not expose the United States 
     taxpayers to additional risk; and
       ``(II) the agreement was approved by Congress pursuant to 
     clause (ii).

       ``(ii) Procedure for congressional approval.--

       ``(I) In general.--Notwithstanding clause (i), the Agency 
     may enter into, on an interim basis, an agreement, even if 
     the agreement exposes the taxpayer to additional risk, 
     including if such agreement exceeds the limitations 
     established under subparagraphs (L) and (M), if such an 
     agreement--

       ``(aa) is deemed necessary by the Agency, based upon the 
     Agency's duties as conservator or receiver; and
       ``(bb) is approved by Congress through adoption of a 
     concurrent resolution of approval, not more than 120 days 
     after the later of--
       ``(AA) the signing of the agreement; or
       ``(BB) the date of enactment of the Ending Bailouts of 
     Fannie Mae and Freddie Mac Act.

       ``(II) Required submissions for congressional review.--
     During the 120-day period described under subclause (I), the 
     Director shall submit to Congress--

       ``(aa) the text of the agreement;
       ``(bb) a certification and justification of how the 
     agreement is consistent with the Agency's duties as 
     conservator or receiver;
       ``(cc) budgetary projections demonstrating the cost to the 
     taxpayer in a 1, 5, and 10-year window;
       ``(dd) independent risk analysis from the Government 
     Accountability Office of the agreement, considering the risk 
     to the short and long-term viability of the regulated entity 
     and the United States taxpayer;
       ``(ee) a time table for the expiration of the agreement;
       ``(ff) a list and description of assets included within 
     each enterprises portfolio, including gross size of each 
     enterprises portfolio and a detailed explanation of the 
     components;
       ``(gg) the prices that each enterprise is paying on 
     delinquent mortgages, and what mechanism is being applied to 
     protect the United States taxpayer;
       ``(hh) a list and description of risk management practices 
     by each enterprise to protect United States taxpayer dollars, 
     and the differences between each enterprises practices in 
     such regard, including whether there are any investigations 
     into the accounting practices of either enterprise;
       ``(ii) a list and description of any interaction between 
     the Department of the Treasury and the mortgage portfolio of 
     any other Government entity and its effect on each 
     enterprise;
       ``(jj) an updated disclosure of any taxpayer funds provided 
     for and at risk to each enterprise from the Department of the 
     Treasury; and
       ``(kk) an updated disclosure of the debt activity by each 
     enterprise and the sensitivity to any interest rate changes.
       ``(iii) Testimony required if funding limitation 
     exceeded.--The Director shall report to and testify before 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives if either the Federal Home Loan Mortgage 
     Corporation or the Federal National Mortgage Association 
     requests amounts from the Director in excess of the 
     limitation established under subparagraphs (L) and (M).''.

     SEC. 1315. CONGRESSIONAL TESTIMONY.

       The Director of the Federal Housing Finance Agency and the 
     Secretary shall report to and testify before the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives each time that $10,000,000,000 of funds are 
     expended pursuant to the Amended and Restated Senior 
     Preferred Stock Purchase Agreements, dated September 26, 
     2008, as amended May 6, 2009. The testimony required under 
     this section shall include the reasons why such additional 
     expenditure of taxpayer funds is necessary.

     SEC. 1316. INTERNET POSTING BY THE SECRETARY.

       The Secretary shall post, on the front page of the website 
     of the Department of the Treasury--
       (1) the aggregate portfolio holdings of each enterprise; 
     and
       (2) a weekly summary of taxpayer funds provided for and at 
     risk to each enterprise, based on any interest rate changes.

      Subtitle B--Fannie Mae and Freddie Mac in the Federal Budget

     SEC. 1321. ON-BUDGET STATUS OF FANNIE MAE AND FREDDIE MAC.

       (a) In General.--Notwithstanding any other provision of 
     law, the receipts and disbursements, including the 
     administrative expenses, of the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation 
     shall be counted as new

[[Page 8217]]

     budget authority, outlays, receipts, or deficit or surplus 
     for purposes of--
       (1) the Budget of the United States Government as submitted 
     by the President;
       (2) the congressional budget;
       (3) the Statutory Pay-As-You-Go Act of 2010; and
       (4) the Balanced Budget and Emergency Deficit Control Act 
     of 1985 (or any successor statute).
       (b) Expiration.--The budgetary treatment of the Federal 
     National Mortgage Association or Federal Home Loan Mortgage 
     Corporation or any functional replacements under subsection 
     (a) shall continue with respect to such entities until such 
     entities are no longer under Federal conservatorship or 
     receivership as authorized by the Housing and Economic 
     Recovery Act of 2008 (Public Law 110-289) or any successor 
     statute.

     SEC. 1322. BUDGETARY TREATMENT OF FANNIE MAE AND FREDDIE MAC.

       All costs to the Government of the activities of or under 
     the Federal National Mortgage Association, Federal Home Loan 
     Mortgage Corporation and any functional replacements or any 
     modification of such entities shall be determined on a fair 
     value basis.

     SEC. 1323. FANNIE MAE AND FREDDIE MAC DEBT SUBJECT TO PUBLIC 
                   DEBT LIMIT.

       (a) In General.--For purposes of section 3101(b) of chapter 
     31 of title 31, United States Code, the face amount of 
     obligations issued by the Federal National Mortgage 
     Association and by the Federal Home Loan Mortgage Corporation 
     or any functional replacements and outstanding shall be 
     treated as issued by the United States Government under that 
     section.
       (b) Temporary Increase in the Public Debt Limit.--The limit 
     on the obligation in section 3101(b) of title 31, United 
     States Code, shall be increased by the face amount of 
     obligations issued by the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation 
     and outstanding on April 15, 2010.
       (c) Expiration.--
       (1) Obligations.--The obligations of Federal National 
     Mortgage Association or Federal Home Loan Mortgage 
     Corporation or any functional replacements shall continue to 
     be treated as issued by the United States Government with 
     respect to such entities until such entities no longer have 
     in place an agreement with the Secretary of the Treasury for 
     the purchase of obligations and securities authorized by the 
     Housing and Economic Recovery Act of 2008 (Public Law 110-
     289) or any successor statute.
       (2) Debt limit.--Any temporary increase in the public debt 
     limit authorized in subsection (b) with respect to the 
     obligations of Federal National Mortgage Association or 
     Federal Home Loan Mortgage Corporation shall be reversed with 
     respect to such entities when Federal National Mortgage 
     Association or Federal Home Loan Mortgage Corporation or any 
     functional replacements no longer have in place an agreement 
     with the Secretary of the Treasury for the purchase of 
     obligations and securities authorized by the Housing and 
     Economic Recovery Act of 2008 (Public Law 110-289) or any 
     successor statute.

     SEC. 1324. DEFINITIONS.

       In this subtitle, the following definitions shall apply:
       (1) Fair value.--The term ``fair value'' shall have the 
     same meaning as the definition of fair value outlined in 
     Financial Accounting Standards No. 157, or any successor 
     thereto, issued by the Financial Accounting Standards Board.
       (2) Functional replacements.--The term ``functional 
     replacements'' means any organization, agreement, or other 
     arrangement that would perform the public functions of 
     Federal National Mortgage Association or Federal Home Loan 
     Mortgage Corporation.
       (3) Modification.--
       (A) In general.--The term ``modification'' means any 
     government action that alters the estimated fair value of the 
     activities of the Federal National Mortgage Association or 
     Federal Home Loan Mortgage Corporation or any functional 
     replacements.
       (B) Cost.--The cost of a modification is the difference 
     between the current estimate of the fair value of the 
     activities of the Federal National Mortgage Association or 
     Federal Home Loan Mortgage Corporation or any functional 
     replacements and the estimate of the fair value of such 
     activities as modified.
                                 ______
                                 
  SA 4021. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 623, line 14, insert ``, including price and 
     volume,'' after ``transaction''.
       On page 623, line 16, insert ``, consistent with joint 
     rules adopted by the Commission'' after ``executed''.
       On page 623, line 18, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 623, line 21, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 623, line 23, strike ``is'' and insert ``and the 
     Securities and Exchange Commission are''.
       On page 623, line 24, strike ``provide by rule'' and insert 
     ``engage in joint rulemaking to jointly adopt rules 
     providing''.
       On page 624, line 1, insert ``, volume,'' after 
     ``transaction''.
       On page 624, line 8, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 623, line 15, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 623, line 23, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 624, line 23, strike ``make available to the 
     public'' and insert ``require real time public reporting for 
     such transactions''.
       On page 625, line 1, strike ``, aggregate data on such swap 
     trading volumes and positions''.
       On page 625, strike lines 3 through 7.
       On page 625, line 9, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 625, line 14, strike ``rule'' and insert ``rules''.
       On page 625, line 16, strike ``(i) and (ii)'' and insert 
     ``(i) through (iii)''.
       On page 625, line 17, strike ``rule'' and insert ``rules''.
       On page 625, line 18, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 625, line 20, strike ``identify the participants'' 
     and insert ``disclose the identity of any market participant 
     or proprietary information about the swap transactions, 
     positions, or trading strategies of any market participant''.
       On page 625, line 22, strike ``large notional''.
       On page 625, line 23, strike the ``(block trade)'' and 
     insert ``block trade''.
       On page 626, line 2, strike ``large notional''.
       On page 626, line 3, strike the ``(block trades)'' and 
     insert ``block trades''.
       On page 626, lines 5 through 6, strike ``whether the public 
     disclosure will materially reduce market liquidity'' and 
     insert ``the effect public disclosure will have on measures 
     of market quality, including market liquidity and transaction 
     costs''.
       On page 626, line 13, insert ``and the Securities and 
     Exchange Commission'' after ``Commission''.
       On page 626, after line 13 insert the following:
       ``(G) Financial stability oversight council.--In the event 
     that the Commission and the Securities and Exchange 
     Commission fail to jointly prescribe rules pursuant to 
     subparagraph (C) in a timely manner, at the request of either 
     the Commission or the Securities and Exchange Commission, the 
     Financial Stability Oversight Council shall resolve the 
     dispute--
       ``(i) within a reasonable time after receiving the request;
       ``(ii) after consideration of relevant information provided 
     by the Commission and the Securities and Exchange Commission; 
     and
       ``(iii) by agreeing with the Commission or the Securities 
     and Exchange Commission regarding the entirety of the matter 
     or by determining a compromise position.''.
       On page 800, line 15, insert ``, including price and 
     volume,'' after ``transaction''.
       On page 800, line 18, insert ``, consistent with joint 
     rules adopted by the Commission'' after ``executed''.
       On page 800, line 20, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 800, line 23, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 801, line 1, insert ``and required to engage in 
     joint rulemaking to jointly adopt rules providing'' after 
     ``Commission''.
       On page 801, line 2, strike ``to provide by rule''.
       On page 801, line 3, insert ``, volume,'' after 
     ``transaction''.
       On page 801, line 10, insert `` pursuant to (a)(10)'' after 
     ``requirements)''.
       On page 801, line 10, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 801, line 17, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 801, line 24, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 800, line 25, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 801, line 25, strike ``make available to the 
     public'' and insert ``require real time public reporting for 
     such transactions''.
       On page 802, line 3, strike ``, aggregate data on such swap 
     trading volumes and positions''.
       On page 802, strike lines 6 through 11.
       On page 802, line 13, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.

[[Page 8218]]

       On page 802, line 19, strike ``rule'' and insert ``rules''.
       On page 802, line 21, strike ``(i) and (ii)'' and insert 
     ``(i) through (iii)''.
       On page 802, line 22, strike ``rule'' and insert ``rules''.
       On page 802, line 23, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 802, line 25, strike ``identify the participants'' 
     and insert ``disclose the identity of any market participant 
     or proprietary information about the security-based swap 
     transactions, positions, or trading strategies of any market 
     participant''.
       On page 803, line 2, strike ``large notional''.
       On page 803, lines 3 and 4, strike the ``(block trade)'' 
     and insert ``block trade''.
       On page 803, line 7, strike ``large notional''.
       On page 803, line 8 strike the ``(block trades)'' and 
     insert ``block trades''.
       On page 803, lines 10 through 12, strike ``whether the 
     public disclosure will materially reduce market liquidity'' 
     and insert ``the effect public disclosure will have on 
     measures of market quality, including market liquidity and 
     transaction costs''.
       On page 803, line 19, insert ``and the Commodity Futures 
     Trading Commission'' after ``Commission''.
       On page 803, between lines 19 and 20, insert the following:
       ``(G) Financial stability oversight council.--In the event 
     that the Commission and the Commodity Futures Trading 
     Commission fail to jointly prescribe rules pursuant to 
     subparagraph (C) in a timely manner, at the request of either 
     the Commission or the Commodity Futures Trading Commission, 
     the Financial Stability Oversight Council shall resolve the 
     dispute--
       ``(i) within a reasonable time after receiving the request;
       ``(ii) after consideration of relevant information provided 
     by the Commission and the Commodity Futures Trading 
     Commission; and
       ``(iii) by agreeing with the Commission or the Commodity 
     Futures Trading Commission regarding the entirety of the 
     matter or by determining a compromise position.''.
                                 ______
                                 
  SA 4022. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 558, strike line 8 and all that follows through 
     page 559, line 14, and insert the following:
       (d) Exemptions.--Section 4(c) of the Commodity Exchange Act 
     (7 U.S.C. 6(c)) is amended by adding at the end the 
     following:
       ``(6) The Commission, by rule, regulation, or order may 
     conditionally or unconditionally exempt any person, swap, or 
     transaction, or any class or classes of persons, swaps, or 
     transactions, from any provision of this Act that was added 
     by an amendment in the Wall Street Transparency and 
     Accountability Act of 2010, to the extent that such exemption 
     is necessary or appropriate in the public interest, and is 
     not inconsistent with the purposes of such Act.''.

       On page 892, strike line 23 and all that follows through 
     page 893, line 2, and insert the following:
       ``(c) Derivatives.--The Commission, by rule, regulation, or 
     order may conditionally or unconditionally exempt any person, 
     security-based swap, or transaction, or any class or classes 
     of persons, security-based swaps, or transactions, from any 
     provision of this Act that was added by an amendment in the 
     Wall Street Transparency and Accountability Act of 2010, to 
     the extent that such exemption is necessary or appropriate in 
     the public interest, and is not inconsistent with the 
     purposes of such Act.''.
                                 ______
                                 
  SA 4023. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 541, strike lines 13 through 24, and insert the 
     following:
       ``(D) Risk based capital.--In setting risk-based capital 
     requirements for a person that is designated as a major swap 
     participant for a single type or single class or category of 
     swaps or activities, the prudential regulator and the 
     Commission shall take into account--
       ``(i) the risks associated with other types of swaps or 
     classes of swaps or categories of swaps engaged in by virtue 
     of the status of the person as a major swap participant;
       ``(ii) the liquidity of each swap, including whether such 
     instrument is traded on a liquid market;
       ``(iii) whether the swap is used to offset or hedge another 
     instrument or asset owned by such major swap participant; and
       ``(iv) whether the swap is cleared, in addition to any 
     other factor the prudential regulator and the Commission deem 
     material.''.
       On page 556, strike lines 11 through 21, and insert the 
     following:
       ``(C) Risk based capital.--In setting risk-based capital 
     requirements for a person that is designated as a swap dealer 
     for a single type or single class or category of swaps or 
     activities, the prudential regulator and the Commission shall 
     take into account--
       ``(i) the risks associated with other types of swaps or 
     classes of swaps or categories of swaps engaged in by virtue 
     of the status of the person as a swap dealer;
       ``(ii) the liquidity of each swap, including whether such 
     instrument is traded on a liquid market;
       ``(iii) whether the swap is used to offset or hedge another 
     instrument or asset owned by such swap dealer; and
       ``(iv) whether the swap is cleared, in addition to any 
     other factor the prudential regulator and the Commission deem 
     material.''.
       On page 646, strike line 6, and insert the following:
       ``(e) Risk-Based Capital and Margin Requirements.--
       ``(1) In general.--Each registered swap dealer and major 
     swap participant shall meet at all times such risk-based 
     capital and margin requirements as the appropriate Federal 
     banking agencies, the Commission, or the Securities and 
     Exchange Commission, as applicable, shall prescribe, by rule 
     or regulation, as necessary or appropriate in the public 
     interest or for the protection of investors and consistent 
     with the purposes of this title.
       ``(2) Capital and margin considerations.--In determining 
     capital and margin requirements in this subsection, the 
     appropriate Federal banking agencies, the Commission, and the 
     Securities and Exchange Commission, respectively, shall set 
     risk-based capital and margin requirements that such 
     authorities deem appropriate and necessary for the risk 
     associated with the swaps activities of each registered swap 
     dealer and major swap participant. In setting such risk-based 
     capital and margin requirements pursuant to the authorities 
     established in paragraphs (3) through (10), the appropriate 
     Federal banking agencies, the Commission, and the Securities 
     and Exchange Commission each shall consider, among other 
     factors--
       ``(A) the liquidity of each swap, including whether such 
     instrument is traded on a liquid market;
       ``(B) whether the swap is used to offset or hedge another 
     instrument or asset owned by such registered swap dealers and 
     major swap participants; and
       ``(C) whether the swap is cleared.''.
       On page 646, line 7, strike ``(1) In general.--'' and 
     insert ``(3) Depository and nondepository institutions.--''.
       On page 646, line 18, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 647, line 7, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 647, line 9, strike ``(2)'' and insert ``(4)''.
       On page 648, line 5, strike ``(3)'' and insert ``(5)''.
       On page 648, line 9, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 649, line 6, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 649, line 12, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 650, line 21, strike ``(4)'' and insert ``(6)''.
       On page 651, line 4, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 651, line 13, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 651, line 22, strike ``(4)(A)'' and insert 
     ``(6)(A)''.
       On page 651, line 23, strike ``(5)'' and insert ``(7)''.
       On page 652, line 11, strike ``(6)'' and insert ``(8)''.
       On page 653, line 5, strike ``(7)'' and insert ``(9)''.
       On page 653, line 7, strike ``(4)(A)(i)'' and insert 
     ``(6)(A)(i)''.
       On page 653, line 8, strike ``(4)(A)(ii)'' and insert 
     ``(6)(A)(ii)''.
       On page 653, line 9, strike ``(4)(B)(i)'' and insert 
     ``(6)(B)(i)''.
       On page 653, line 10, strike ``(4)(B)(ii)'' and insert 
     ``(6)(B)(ii)''.
       On page 653, line 15, strike ``(8)'' and insert ``(9)''.
       On page 653, line 16, strike ``(4)'' and insert ``(6)''.
       On page 852, strike line 19, and insert the following:
       ``(e) Risk-Based Capital and Margin Requirements.--
       ``(1) In general.--Each registered security-based swap 
     dealer and major security-based swap participant shall meet 
     at all times such

[[Page 8219]]

     risk-based capital and margin requirements as the appropriate 
     Federal banking agencies, the Commission, or the Securities 
     and Exchange Commission, as applicable, shall prescribe, by 
     rule or regulation, as necessary or appropriate in the public 
     interest or for the protection of investors and consistent 
     with the purposes of this title.
       ``(2) Capital and margin considerations.--In determining 
     capital and margin requirements in this subsection, the 
     appropriate Federal banking agencies, the Commission, and the 
     Securities and Exchange Commission, respectively, shall set 
     risk-based capital and margin requirements that such 
     authorities deem appropriate and necessary for the risk 
     associated with the security-based swaps activities of each 
     registered security-based swap dealer and major security-
     based swap participant. In setting such risk-based capital 
     and margin requirements pursuant to the authorities 
     established in paragraphs (3) through (10), the appropriate 
     Federal banking agencies, the Commission, and the Securities 
     and Exchange Commission each shall consider, among other 
     factors--
       ``(A) the liquidity of each security-based swap, including 
     whether such instrument is traded on a liquid market;
       ``(B) whether the security-based swap is used to offset or 
     hedge another instrument or asset owned by such registered 
     security-based swap dealers and major security-based swap 
     participants; and
       ``(C) whether the security-based swap is cleared.''.
       On page 852, line 20, strike ``(1) In general.--'' and 
     insert ``(3) Depository and nondepository institutions.--''.
       On page 853, line 8, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 853, line 22, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 854, line 1, strike ``(2)'' and insert ``(4)''.
       On page 854, line 25, strike ``(3)'' and insert ``(5)''.
       On page 855, line 5, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 855, line 25, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 856, line 7, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 857, line 13, strike ``(4)'' and insert ``(6)''.
       On page 857, line 22, strike ``(2)(A)'' and insert 
     ``(4)(A)''.
       On page 858, line 6, strike ``(2)(B)'' and insert 
     ``(4)(B)''.
       On page 858, line 13, strike ``(4)(A)'' and insert 
     ``(6)(A)''.
       On page 858, line 14, strike ``(5)'' and insert ``(7)''.
       On page 859, line 3, strike ``(6)'' and insert ``(8)''.
       On page 859, line 22, strike ``(7)'' and insert ``(9)''.
       On page 859, line 24, strike ``(4)(A)'' and insert 
     ``(6)(A)''.
       On page 860, line 1, strike ``(4)(B)'' and insert 
     ``(6)(B)''.
       On page 860, line 6, strike ``(8)'' and insert ``(10)''.
       On page 860, line 7, strike ``(4) and (5)'' and insert 
     ``(6) and (7)''.
                                 ______
                                 
  SA 4024. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 577, line 24, after ``paragraph (9)'', insert ``, 
     or to any swap transaction that is a large notional swap 
     transaction (block trade) for the particular market or 
     contract''.
       On page 793, line 23, strike ``or''.
       On page 794, line 3, strike the period and insert ``; or''.
       On page 794, between lines 3 and 4, insert the following:
       ``(iii) , or to any security-based swap transaction that is 
     a large notional security-based swap transaction (block 
     trade) for the particular market or contract.''.
                                 ______
                                 
  SA 4025. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 567, line 24, after ``shall'' insert ``, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code,''.
       On page 568, line 6, after ``5b(c)(2)'' insert ``, taking 
     into account the factors described in clauses (I) through 
     (vii) of subparagraph (4)(A)''.
       On page 571, between lines 21 and 22, insert the following:
       ``(vi) The effect on the mitigation of systemic risk, 
     taking into account the size of the market for the group, 
     category, type, or class of swaps, the resources of 
     derivatives clearing organizations available to clear the 
     group, category, type, or class of swaps, and the existence 
     of reasonable legal certainty in the event of the insolvency 
     of any such derivatives clearing organization or 1 or more of 
     its clearing members with regard to the treatment of customer 
     and swap counterparty positions, funds, and property.''.
       On page 571, line 22, strike ``(vi)'' and insert ``(vii)''.
       On page 572, line 1, after ``may'' insert ``, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code,''.
       On page 572, line 6, strike ``(vi)'' and insert ``(vii)''.
       On page 577, line 8, after ``(1)'' insert ``and designated 
     by the Commission pursuant to subparagraph (C)''.
       On page 577, line 10, after ``on'' insert ``, through or 
     subject to the rules of''.
       On page 577, line 13, after ``on'' insert ``, through or 
     subject to the rules of''.
       On page 577, after line 24, insert the following:
       ``(C) Commission designations.--The Commission may, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code, separately designate a 
     particular swap or class of swaps that is subject to the 
     clearing requirement of paragraph (1) as subject to the 
     execution requirement of subparagraph (A) if the Commission 
     determines that effective pre-trade price transparency does 
     not already exist in the market, and taking into account the 
     potential impact of such requirement on price discovery, 
     competition, market liquidity, and costs of execution.''.
       On page 783, line 22, after ``shall'' insert ``, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code,''.
       On page 784, line 3, after ``17A'' insert ``, taking into 
     account the factors described in clauses (i) through (vii) of 
     subparagraph (4)(A)''.
       On page 788, before line 1, insert the following:
       ``(vi) The effect on the mitigation of systemic risk, 
     taking into account the size of the market for the group, 
     category, type, or class of security-based swaps, the 
     resources of clearing agencies available to clear the group, 
     category, type, or class of security-based swaps, and the 
     existence of reasonable legal certainty in the event of the 
     insolvency of any such clearing agency or 1 or more of its 
     clearing members with regard to the treatment of customer and 
     security-based swap counterparty positions, funds, and 
     property.''.
       On page 788, line 1, strike ``(vi)'' and insert ``(vii)''.
       On page 788, line 5, after ``may'' insert ``, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code,''.
       On page 788, line 10, strike ``(vi)'' and insert ``(vii)''.
       On page 793, line 8, after ``(1)'' insert ``and designated 
     by the Commission pursuant to subparagraph (C)''.
       On page 793, line 10, after ``on'' insert ``, through or 
     subject to the rules of''.
       On page 793, line 13, after ``on'' insert ``, through or 
     subject to the rules of''.
       On page 794, between lines 3 and 4, insert the following:
       ``(C) Commission designations.--The Commission may, by rule 
     pursuant to the notice and comment provisions of section 553 
     of title 5, United States Code, separately designate a 
     particular security-based swap or class of security-based 
     swaps that is subject to the clearing requirement of 
     paragraph (1) as subject to the execution requirement of 
     subparagraph (A) if the Commission determines that effective 
     pre-trade price transparency does not already exist in the 
     market, and taking into account the potential impact of such 
     requirement on price discovery, competition, market 
     liquidity, and costs of execution.''.
                                 ______
                                 
  SA 4026. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:


[[Page 8220]]

       On page 1309, lines 23 and 24, strike ``in State court 
     having jurisdiction over the defendant'' and insert ``in a 
     State court in that State''.
                                 ______
                                 
  SA 4027. Mrs. McCASKILL submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1552, line 12, strike ``Selection of the 
     president'' and insert ``Class b directors''.
       On page 1552, beginning on line 16, strike ``the 
     President'' and all that follows through ``years'' on line 19 
     and insert the following: ``the Class B directors of the 
     Federal Reserve Bank of New York shall be designated by the 
     Board of Governors''.
       On page 1552, line 21, insert ``of new york'' after 
     ``bank''.
       On page 1553, line 1, strike ``supervised by the Board'' 
     and insert ``subject to enhanced supervision and prudential 
     standards under section 115''.
       On page 1553, beginning on line 2, strike ``a Federal 
     reserve bank, and no past or'' and insert ``the Federal 
     Reserve Bank of New York, and no''.
       On page 1553, line 6, strike ``a Federal reserve bank'' and 
     insert ``the Federal Reserve Bank of New York''.
                                 ______
                                 
  SA 4028. Mrs. McCASKILL submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1552, strike line 8 and all that follows through 
     page 1553, line 6.
                                 ______
                                 
  SA 4029. Mr. CRAPO submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail,'' to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1565, after line 23, insert the following:

  TITLE XIII--FINANCIAL MARKETS OVERSIGHT CONSOLIDATION AND INVESTOR 
                         PROTECTION ACT OF 2010

     SEC. 1301. SHORT TITLE.

       This title may be cited as the ``Financial Markets 
     Oversight Consolidation and Investor Protection Act of 
     2010''.

     SEC. 1302. PURPOSES.

       The purposes of this title are--
       (1) to establish a single Federal regulatory body with 
     jurisdiction over securities and derivatives, including 
     options, futures, swaps, and related markets and instruments 
     and including over-the-counter derivatives;
       (2) to consolidate and revise the authority for setting 
     margin requirements;
       (3) to coordinate the regulation of all financial markets;
       (4) to strengthen investor protections in United States 
     financial markets; and
       (5) to ensure the competitiveness of United States markets.

     SEC. 1303. DEFINITIONS.

       As used in this title--
       (1) the term ``Chairman'' means the Chairman of the 
     Financial Markets Commission designated under section 1312;
       (2) the term ``Commission'' means the Financial Markets 
     Commission established by section 1311 of this title;
       (3) the term ``function'' includes any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (4) the term ``transfer date'' means the date designated 
     under section 1361.

     SEC. 1304. EFFECT ON CONGRESSIONAL JURISDICTION.

       It is the sense of Congress that this title should not be 
     construed to affect the jurisdiction of any committee or 
     subcommittee of the Congress with respect to any function 
     transferred to the Commission by this title.

                Subtitle A--Establishment of Commission

     SEC. 1311. ESTABLISHMENT.

       There is established in the executive branch an independent 
     agency to be known as the ``Financial Markets Commission''.

     SEC. 1312. MEMBERS: APPOINTMENT; TERMS.

       (a) Composition of Commission.--
       (1) Number of commissioners.--The Commission shall be 
     composed of 5 commissioners appointed by the President, by 
     and with the advice and consent of the Senate.
       (2) Chairman.--One of the commissioners shall be designated 
     by the President as the Chairman of the Commission, who shall 
     be the chief executive of the Commission.
       (3) Qualifications.--Each commissioner shall be selected 
     solely on the basis of integrity and demonstrated knowledge 
     of the operations of the markets that are subject to the 
     jurisdiction of the Commission.
       (4) Political affiliation.--Not more than 3 of the 
     commissioners shall be members of the same political party.
       (b) Terms.--
       (1) In general.--Except as provided in this subsection, 
     each commissioner shall be appointed for a term of 5 years.
       (2) Succession.--A commissioner may continue to serve after 
     the expiration of such term until a successor is appointed 
     and has qualified, but may not continue to so serve beyond 
     the expiration of the next session of Congress beginning 
     after the expiration of such term.
       (3) First commissioners.--The terms of office of the 
     commissioners first taking office after the enactment of this 
     title shall expire, as designated by the President at the 
     time of their appointment--
       (A) 1 at the end of 1 year;
       (B) 1 at the end of 2 years;
       (C) 1 at the end of 3 years;
       (D) 1 at the end of 4 years; and
       (E) 1 at the end of 5 years.
       (4) Vacancy.--
       (A) In general.--A commissioner appointed to fill a vacancy 
     occurring prior to the expiration of the term for which the 
     predecessor was appointed shall be appointed for the 
     remainder of such term; and
       (B) Effect of vacancy.--A vacancy in the Commission shall 
     not impair the right of the remaining commissioners to 
     exercise all the powers of the Commission.
       (c) Conflicts of Interest.--
       (1) In general.--No commissioner shall engage in any other 
     business, vocation, or employment than that of serving as 
     commissioner, nor shall any commissioner participate, 
     directly or indirectly, in any market operations or 
     transactions of a character subject to regulation by the 
     Commission pursuant to this title.
       (2) Reimbursement for travel.--
       (A) In general.--Notwithstanding any other provision of 
     law, in accordance with regulations which the Commission 
     shall prescribe to prevent conflicts of interest, the 
     Commission may accept payment and reimbursement, in cash or 
     in kind, from non-Federal agencies, organizations, and 
     individuals for travel, subsistence, and other necessary 
     expenses incurred by Commission members and employees in 
     attending meetings and conferences concerning the functions 
     or activities of the Commission.
       (B) Payments and reimbursements credited.--Any payment or 
     reimbursement accepted shall be credited to the appropriated 
     funds of the Commission.
       (C) Limitation on amount.--The amount of travel, 
     subsistence, and other necessary expenses for members and 
     employees paid or reimbursed under this subsection may exceed 
     per diem amounts established in official travel regulations, 
     but the Commission may include in its regulations under this 
     subsection a limitation on such amounts.
       (d) Fees.--Notwithstanding any other provision of law, 
     whenever any fee is required to be paid to the Commission 
     pursuant to any provision of the securities laws or any other 
     law, the Commission may provide, by rule--
       (1) that the fee shall be paid in a manner other than in 
     cash; and
       (2) the time period within which the fee shall be 
     determined and paid relative to the filing of any statement 
     or document with the Commission.
       (e) Reimbursement of Expenses for Assisting Foreign 
     Securities Authorities.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Commission may accept payment and reimbursement, in 
     cash or in kind, from a foreign securities authority, or made 
     on behalf of such authority--
       (A) for necessary expenses incurred by the Commission, its 
     members, and employees in carrying out any investigation 
     under section 21(a)(2) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78u(a)(2)); or
       (B) in providing any other assistance to a foreign 
     securities authority.
       (2) Treatment of funds.--Any payment or reimbursement 
     accepted shall be considered a reimbursement to the 
     appropriated funds of the Commission.

     SEC. 1313. ORGANIZATION OF COMMISSION.

       (a) Division of Retail Investor Protection and Retail 
     Financial Services.--
       (1) In general.--There shall be within the Commission a 
     Division of Retail Investor Protection and Retail Financial 
     Services.

[[Page 8221]]

       (2) Head of division.--The head of the Division of Retail 
     Investor Protection and Retail Financial Services shall be 
     appointed by the Chairman.
       (3) Subdivisions.--There shall be within the Division of 
     Retail Investor Protection and Retail Financial Services--
       (A) a subdivision with responsibility for functions 
     relating to investor outreach and education; and
       (B) a subdivision with responsibility for functions 
     relating to inspections and examinations.
       (b) Division of Trading.--
       (1) In general.--There shall be within the Commission a 
     Division of Trading.
       (2) Head of division.--The head of the Division of Trading 
     shall be appointed by the Chairman.
       (3) Subdivisions.--There shall be within the Division of 
     Trading--
       (A) a subdivision with responsibility for functions 
     relating to markets in physical commodities; and
       (B) a subdivision with responsibility for functions 
     relating to inspections and examinations.
       (c) Division of Corporate Disclosure.--
       (1) In general.--There shall be within the Commission a 
     Division of Corporate Disclosure.
       (2) Head of division.--The head of the Division of 
     Corporate Disclosure shall be appointed by the Chairman.
       (3) Subdivision.--There shall be within the Division of 
     Corporate Disclosure a subdivision with responsibility for 
     functions relating to accounting and auditing matters.
       (d) Division of Economic Analysis.--
       (1) Purposes.--The purpose of this subsection is to enhance 
     the ability of the Commission to use professional and 
     objective economic analysis to inform the design and 
     implementation of rulemaking and other actions of the 
     Commission.
       (2) Division established.--There shall be within the 
     Commission a Division of Economic Analysis.
       (3) Subdivisions.--There shall be within the Division of 
     Economic Analysis--
       (A) a subdivision with responsibility for functions 
     relating to risk analysis and financial innovation; and
       (B) a subdivision with responsibility for functions 
     relating to international technical assistance.
       (4) Chief economist.--
       (A) Appointment.--The Division shall be headed by a Chief 
     Economist, appointed by the Chairman of the Commission, 
     subject to approval of a vote of at least a majority of the 
     members of the Commission then in office, such majority to 
     include at least 1 member of the Commission who is not a 
     member of the same political party as the Chairman, if any 
     such member is then in office.
       (B) Criteria.--The Chief Economist--
       (i) shall be an experienced economist of distinction, with 
     a doctorate in economics or the equivalent in education and 
     experience;
       (ii) shall report to and be under the general supervision 
     of the Chairman; and
       (iii) shall not report to, or be subject to supervision by, 
     any other officer or employee of the Commission.
       (C) Removal.--The Chairman of the Commission may remove the 
     Chief Economist from office. The Chairman shall communicate 
     in writing to both Houses of Congress the reasons for any 
     such removal, not later than 30 days before the effective 
     date of such removal.
       (5) Reports.--
       (A) In general.--Except as provided in subparagraph (D), 
     whenever using its authority under any provision of law, the 
     Commission publishes a release giving notice of a proposed 
     rulemaking or other proposed action by the Commission, and 
     affords interested persons an opportunity to comment on such 
     proposed rulemaking or other action or publishes a release 
     adopting a final rule or otherwise taking action after such 
     publication and opportunity to comment, such release shall 
     include as a part thereof a report by the Division.
       (B) Content.--Each report required by subparagraph (A)--
       (i) shall set forth in reasonable detail an economic 
     analysis of the consequences of the Commission action that is 
     the subject of the report, in light of the statutory 
     responsibilities of the Commission and the stated purposes of 
     the Commission for the action, including when the 
     responsibilities of the Commission so require, the effects of 
     the action on efficiency, competition, and capital formation;
       (ii) shall refer to any peer-reviewed or other relevant 
     literature, including any study undertaken by the staff of 
     the Commission, that provides support for the analysis 
     contained in the report (except that the Division is not 
     required to undertake original research in the preparation 
     thereof);
       (iii) shall describe the extent to which the conclusions of 
     the report remain subject to uncertainty; and
       (iv) with respect to a report delivered in connection with 
     a proposed rulemaking or other proposed action, may request 
     information or comment from the public.
       (C) Form and oversight.--Each report required by 
     subparagraph (A)--
       (i) shall be prepared under the direction of, and expressly 
     approved by and published over the name of, the Chief 
     Economist;
       (ii) shall not be subject to approval by the Chairman of 
     the Commission or the Commission;
       (iii) shall be in final form, dated not later than 1 week 
     prior to the vote of the Commission (or the circulation of a 
     seriatim or other means of Commission action) to which the 
     report relates, to ensure adequate opportunity for the 
     Commission to consider its contents prior to such action;
       (iv) shall include a statement confirming that the Chairman 
     of the Commission informed the Division, not later than 60 
     days prior to the date of the report, of all material aspects 
     of the proposed action covered by the report, in sufficient 
     detail for the purposes of the report or, if a lesser time 
     was afforded, that such lesser time was reasonably sufficient 
     for the preparation of the report; and
       (v) shall include a statement confirming that the Division 
     was afforded reasonably sufficient resources for the 
     preparation of the report, or describing any lack thereof.
       (D) Exception.--
       (i) In general.--Notwithstanding subparagraph (A), no 
     report shall be required under this paragraph--

       (I) if the subject Commission action does not propose or 
     adopt a major rule for purposes of the Small Business 
     Regulatory Enforcement Fairness Act of 1996, unless at least 
     2 members of the Commission (or 1 member, if 5 members of the 
     Commission are not then in office) request a report; or
       (II) at the time of issuance of an interim final rulemaking 
     or other emergency action by the Commission, provided that a 
     report regarding such rulemaking or action is published not 
     later than 60 days thereafter.

       (ii) Procedure.--The Commission may adopt rules of 
     procedure governing the time and manner by which requests 
     described in clause (i)(I) shall be made by members of the 
     Commission.
       (e) Division of Enforcement.--
       (1) In general.--There shall be within the Commission a 
     Division of Enforcement.
       (2) Head of division.--The head of the Division of 
     Enforcement shall be appointed by the Chairman.
       (3) Subdivision.--There shall be within the Division of 
     Enforcement a subdivision with responsibility for functions 
     relating to international enforcement assistance.

     SEC. 1314. OFFICE OF THE CHAIRMAN.

       (a) Office Established.--There shall be in the Commission 
     an Office of the Chairman, which shall manage the resources 
     and operations of the Commission.
       (b) Office of the Executive Director.--
       (1) In general.--There shall be within the Office of the 
     Chairman an Office of the Executive Director.
       (2) Executive director and duties of the executive 
     director.--The head of the Office of the Executive Director 
     shall be the Executive Director, who shall oversee the 
     compliance of the Commission with Federal law, including 
     requirements imposed by the Director of Office of Management 
     and Budget, the Government Accountability Office, and the 
     Office of Personnel Management.
       (c) Office of the Secretary.--
       (1) In general.--There shall be within the Office of the 
     Chairman an Office of the Secretary.
       (2) Secretary and duties of the secretary.--The head of the 
     Office of the Secretary shall be the Secretary, who shall--
       (A) be appointed by the Chairman; and
       (B) oversee the procedural administration of meetings, 
     rulemaking, practice, and procedure of the Commission.
       (d) Office of External Affairs.--
       (1) In general.--There shall be within the Office of the 
     Chairman an Office of External Affairs.
       (2) Director of external affairs.--The head of the Office 
     of External Affairs shall be the Director of External 
     Affairs, who shall--
       (A) be appointed by the Chairman;
       (B) serve as the formal liaison of the Commission with the 
     Congress, the executive branch, State and local governments, 
     and foreign governments and regulators; and
       (C) coordinate the international regulatory policy 
     initiatives of the Commission with the Secretary of the 
     Treasury.

     SEC. 1315. GENERAL COUNSEL.

       (a) Office Established.--There shall be in the Commission 
     an Office of General Counsel.
       (b) General Counsel.--
       (1) In general.--The head of the Office of the General 
     Counsel shall be the General Counsel, who shall be appointed 
     by the Chairman.
       (2) Duties of the general counsel.--The General Counsel 
     shall--
       (A) report directly to the Commission;
       (B) serve as the legal advisor of the Commission;
       (C) represent the Commission in all disciplinary 
     proceedings pending before the Commission;
       (D) represent the Commission in courts of law whenever 
     appropriate;
       (E) assist the Department of Justice in litigation 
     concerning the Commission; and
       (F) perform such other legal duties and functions as the 
     Commission may direct.
       (3) Additional counsel.--The Commission shall appoint such 
     other attorneys as the

[[Page 8222]]

     Commission determines are necessary to assist the General 
     Counsel in carrying out the duties under this section.

     SEC. 1316. OMBUDSMAN.

       (a) Office Established.--There shall be in the Commission 
     the Office of the Ombudsman.
       (b) Ombudsman.--The head of the Office of the Ombudsman 
     shall be the Ombudsman, who shall--
       (1) be appointed by the Chairman;
       (2) assist registrants, those seeking to be registered, and 
     regulated entities in resolving problems with the Commission;
       (3) identify areas in which registrants, those seeking to 
     be registered, and regulated entities have problems in 
     dealings with the Commission;
       (4) to the extent possible, propose changes in the 
     administrative practices of the Commission to mitigate 
     problems identified under paragraph (3); and
       (5) identify potential legislative changes that may be 
     appropriate to mitigate problems identified under paragraph 
     (3).

     SEC. 1317. INSPECTOR GENERAL.

       Section 8G of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is amended by inserting ``the Financial Markets 
     Commission,'' after ``the Federal Trade Commission,''.

                   Subtitle B--Transfers of Functions

     SEC. 1321. TRANSFER OF FUNCTIONS.

       (a) Commodity Futures Trading Commission.--All functions of 
     the Commodity Futures Trading Commission and of any officer 
     or component of the Commodity Futures Trading Commission are 
     transferred to the Commission.
       (b) Securities and Exchange Commission.--All functions of 
     the Securities and Exchange Commission and of any officer or 
     component of the Securities and Exchange Commission are 
     transferred to the Commission.

     SEC. 1322. ABOLISHMENT.

       (a) Commodity Futures Trading Commission Abolished.--
     Effective on [the transfer date], the Commodity Futures 
     Trading Commission is abolished.
       (b) Securities and Exchange Commission Abolished.--
     Effective on [the transfer date], the Securities and Exchange 
     Commission.

     SEC. 1323. JURISDICTION OF MARGIN AUTHORITY.

       (a) Margin Authority With Respect to Securities.--There are 
     transferred to the Commission the functions of the Board of 
     Governors of the Federal Reserve System under section 7 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78g).
       (b) Conforming Amendments.--
       (1) Definitions.--Section 3(a)(15) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)(15)) is amended by 
     striking ``Securities and Exchange Commission established by 
     section 4 of this title'' and inserting ``Financial Markets 
     Commission''.
       (2) Margin requirements.--Section 7 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78g) is amended--
       (A) in subsection (a), by striking ``the Board of Governors 
     of the Federal Reserve System shall, prior to the effective 
     date of this section and from time to time thereafter,'' and 
     inserting ``the Commission shall'';
       (B) in subsection (b)--
       (i) by striking ``the Board of Governors of the Federal 
     Reserve System'' and inserting ``the Commission''; and
       (ii) in subsection (b), by striking ``(1) prescribe'' and 
     all that follows through ``and (2)'';
       (C) in subsection (c)--
       (i) in paragraph (1)(A), by striking ``the Board of 
     Governors of the Federal Reserve System (hereafter in this 
     section referred to as the `Board')'' and inserting ``the 
     Commission'';
       (ii) in paragraph (2)--

       (I) by striking subparagraph (A) and inserting the 
     following:

       ``(A) Compliance with margin rules.--It shall be unlawful 
     for any broker, dealer, or member of a national securities 
     exchange to, directly or indirectly, extend or maintain 
     credit to or for, or collect margin from any customer on, any 
     security futures product unless such activities comply with 
     the regulations which the Commission shall prescribe pursuant 
     to subparagraph (B).''; and

       (II) in subparagraph (B)--

       (aa) by striking ``The Board'' and all that follows through 
     ``jointly deem appropriate'' and inserting ``The Commission 
     shall prescribe such regulations to establish margin 
     requirements, including the establishment of levels of margin 
     (initial and maintenance) for security futures products under 
     such terms, and at such levels, as the Commission deems 
     appropriate'';
       (bb) by striking clause (ii); and
       (cc) by redesignating clauses (iii) and (iv) as clauses 
     (ii) and (iii), respectively; and
       (iii) by striking ``the Board'' each place that term 
     appears and inserting ``the Commission'';
       (D) in subsection (d)--
       (i) in paragraph (3), in the paragraph header, by striking 
     ``Board'' and inserting ``Commission''; and
       (ii) by striking ``the Board'' each place that term appears 
     and inserting ``the Commission'';
       (E) in subsection (e), by striking ``on or before July 1, 
     1937'' and all that follows through ``Federal Reserve Board'' 
     and inserting ``on or before October 1, 2011, except to the 
     extent that the Commission'';
       (F) in subsection (f)(3), by striking ``Board of Governors 
     of the Federal Reserve System'' and inserting ``Commission''; 
     and
       (G) in subsection (g), by striking ``Board of Governors of 
     the Federal Reserve System'' each place that term appears and 
     inserting ``Commission''.
       (c) Margin Authority With Respect to Futures.--The 
     Commission may, as necessary to ensure the financial 
     integrity of the contract markets--
       (1) by order, direct a contract market to adjust the level 
     of margin required on any contract; or
       (2) by regulation, prescribe limits on the level of margin 
     that a contract market may require on any class or category 
     of contract.
       (d) Margin Authority With Respect to Swaps.--The Commission 
     may prescribe limits on the level of margin on non-cleared 
     swaps--
       (1) in accordance with section 15F(e) of the Securities 
     Exchange Act of 1934, as added by the Wall Street 
     Transparency and Accountability Act of 2010, for security-
     based swaps; and
       (2) in accordance with section 4s(e) of the Commodity 
     Exchange Act, as amended in the Wall Street Transparency and 
     Accountability Act of 2010, for commodity-based swaps.

                 Subtitle C--Administrative Provisions

                      PART I--PERSONNEL PROVISIONS

     SEC. 1331. OFFICERS AND EMPLOYEES.

       (a) Appointment and Compensation.--The Commission may 
     appoint and fix the compensation of such officers and 
     employees, including attorneys, as may be necessary to carry 
     out the functions of the Commission, in accordance with title 
     5, United States Code.
       (b) Limited-term Appointees.--Notwithstanding any other 
     provision of law, the Director of the Office of Personnel 
     Management shall establish positions within the Senior 
     Executive Service for 10 limited-term appointees. The 
     Commission shall appoint individuals to such positions as 
     provided by section 3394 of title 5, United States Code. Such 
     positions shall expire upon the later of 3 years after the 
     transfer date or 3 years after the initial appointment to 
     each position. Positions in effect under this subsection 
     shall be taken into account in applying the limitations on 
     positions prescribed under section 3134(e) and section 5108 
     of title 5, United States Code.

     SEC. 1332. EXPERTS AND CONSULTANTS.

       The Commission may obtain the services of experts and 
     consultants in accordance with the provisions of section 3109 
     of title 5, United States Code, and may compensate such 
     experts and consultants at rates not to exceed the daily rate 
     prescribed for SK-18 of the Special Rate Schedule under 
     section 5332 of such title.

               PART II--GENERAL ADMINISTRATIVE PROVISIONS

     SEC. 1333. GENERAL AUTHORITY.

       In carrying out any function transferred by this title, the 
     Commission, or any officer or employee of the Commission, may 
     exercise any authority available by law (including 
     appropriation Acts) with respect to such function to the 
     official or agency from which such function is transferred, 
     and the actions of the Commission in exercising such 
     authority shall have the same force and effect as when 
     exercised by such official or agency.

     SEC. 1334. DELEGATION.

       (a) In General.--Except as otherwise provided in this 
     title, the Commission may delegate any function to such 
     officers and employees of the Commission as the Commission 
     may designate, and may authorize such successive 
     redelegations of such functions within the Commission as may 
     be necessary or appropriate.
       (b) Automatic Sunset of Delegations.--Each delegation of 
     function shall automatically expire 3 years after the 
     effective date of the delegation, unless renewed by the 
     Commission.
       (c) Existing Delegations.--Each delegation of function in 
     effect on the date of enactment of this Act shall 
     automatically expire 3 years after the date of enactment of 
     this Act, unless renewed by the Commission.
       (d) Commission Responsibility for Administration of 
     Delegated Functions.--No delegation of functions by the 
     Commission under this section or under any other provision of 
     this title shall relieve the Commission of responsibility for 
     the administration of such functions.

     SEC. 1335. RULES.

       (a) In General.--The Commission may prescribe such rules, 
     regulations, and orders as the Commission determines 
     necessary or appropriate to administer and manage the 
     functions of the Commission.
       (b) Comprehensive Review of Major Rules.--The Commission 
     shall conduct a comprehensive review of each major rule (as 
     that term is defined in section 804(2) of title 5, United 
     States Code) issued by the Commission not later than 5 years 
     after the effective date of the major rule, and every 5 years 
     thereafter. The comprehensive review shall include a public 
     comment period.
       (c) Status Review of Minor Rules.--The Commission shall 
     conduct a status review

[[Page 8223]]

     for each rule of the Commission that is not a major rule (as 
     that term is defined in section 804(2) of title 5, United 
     States Code) not later than 5 years after the effective date 
     of the rule, and every 5 years thereafter, to determine 
     whether such rule should be designated as a major rule.
       (d) Report on Existing Rules.--Not later than 1 year after 
     the date of enactment of this Act, the Commission shall 
     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 containing a 
     schedule for the review in accordance with this section of 
     rules in effect on the date of enactment of this Act.

     SEC. 1336. CONTRACTS.

       (a) In General.--Subject to the provisions of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.), the Commission may--
       (1) make, enter into, and perform such contracts, grants, 
     leases, cooperative agreements, or other similar transactions 
     with Federal or other public agencies (including State and 
     local governments) and private organizations and persons; and
       (2) make such payments, by advance or reimbursement, as the 
     Commission may determine necessary or appropriate to carry 
     out functions of the Commission.
       (b) Appropriations Required.--Notwithstanding any other 
     provision of this title, no authority to enter into contracts 
     or to make payments under this title shall be effective 
     except to such extent or in such amounts as are provided in 
     advance under appropriation Acts.

     SEC. 1337. REGIONAL AND FIELD OFFICES.

       The Commission may establish, alter, discontinue, or 
     maintain such regional or other field offices of the 
     Commission as the Commission determines necessary or 
     appropriate to perform functions of the Commission.

     SEC. 1338. USE OF FACILITIES.

       (a) Use by Commission.--The Commission may, with or without 
     reimbursement and with the consent of the entity concerned, 
     use the research, equipment, services, or facilities of any 
     agency or instrumentality of the United States, of any State 
     or political subdivision thereof, or of any foreign 
     government, in carrying out any function of the Commission.
       (b) Use by Others.--
       (1) In general.--Except as provided in paragraph (4), the 
     Commission may permit public and private agencies, 
     corporations, associations, organizations, or individuals to 
     use any real property, or any facilities, structures, or 
     other improvements thereon, under the custody and control of 
     the Commission for the purposes of the Commission.
       (2) Terms and rates.--The Commission shall permit the use 
     of such property, facilities, structures, or improvements 
     under this subsection under such terms and rates and for such 
     period as may be in the public interest, except that the 
     periods of such uses may not exceed 5 years.
       (3) Reconditioning and maintenance.--The Commission may 
     require permittees under this section to recondition and 
     maintain, at their own expense, the real property, 
     facilities, structures, and improvements used by such 
     permittees under this subsection to a standard satisfactory 
     to the Commission.
       (4) Exception.--This subsection shall not apply to excess 
     property, as that term is defined in section 102 of title 40, 
     United States Code.
       (c) Proceeds From Reimbursements.--Proceeds from 
     reimbursements under this section may be credited to the 
     appropriation of funds that bear or will bear all or part of 
     the cost of such equipment or facilities provided or to 
     refund excess sums when necessary.
       (d) Title to Property.--Any interest in real property 
     acquired pursuant to this title shall be acquired in the name 
     of the United States Government.

     SEC. 1339. FUNDS TRANSFER.

       The Commission may, when authorized in an appropriation Act 
     in any fiscal year, transfer funds from 1 appropriation to 
     another within the Commission, except that no appropriation 
     for any fiscal year shall be either increased or decreased 
     pursuant to this section by more than 5 percent and no such 
     transfer shall result in increasing any such appropriation 
     above the amount authorized to be appropriated therefor.

     SEC. 1340. SEAL OF COMMISSION.

       The Commission shall cause a seal of office to be made for 
     the Commission of such design as the Commission shall 
     approve. Judicial notice shall be taken of such seal.

     SEC. 1341. ANNUAL REPORT.

       (a) Report Required.--The Commission shall, as soon as 
     practicable after the close of each fiscal year, make a 
     single, comprehensive report to the President for 
     transmission to the Congress on the activities of the 
     Commission during such fiscal year.
       (b) Contents.--Each report under subsection (a) shall 
     include--
       (1) a statement of goals, priorities, and plans of the 
     Commission;
       (2) an assessment of the progress made by the Commission 
     toward--
       (A) the attainment of the goals, priorities, and plans of 
     the Commission; and
       (B) the more effective and efficient management of the 
     Commission and the coordination of its functions;
       (3) recommendations, if any, for proposed legislation for 
     the achievement of the goals, priorities, and plans of the 
     Commission; and
       (4) an estimate of--
       (A) the number of the non-Federal personnel employed 
     pursuant to contracts entered into by the Commission under 
     section 1336 or under any other authority (including any 
     subcontract thereunder);
       (B) the number of such contracts and subcontracts pursuant 
     to which non-Federal personnel are employed; and
       (C) the total cost of such contracts and subcontracts.

      Subtitle D--Transitional, Savings, and Conforming Provisions

     SEC. 1351. TRANSFER OF EMPLOYEES.

       (a) In General.--
       (1) Transfer of employees.--All employees of the Securities 
     and Exchange Commission and the Commodity Futures Trading 
     Commission shall be transferred to the Commission.
       (2) Appointment authority for excepted service 
     transferred.--
       (A) In general.--Except as provided in subparagraph (B), 
     any appointment authority of the Securities and Exchange 
     Commission and the Commodity Futures Trading Commission under 
     Federal law that relates to the functions transferred under 
     section 1321, including the regulations of the Office of 
     Personnel Management, for filling the positions of employees 
     in the excepted service shall be transferred to the Chairman.
       (B) Declining transfers allowed.--The Chairman may decline 
     to accept a transfer of authority under subparagraph (A) (and 
     the employees appointed under that authority) to the extent 
     that such authority relates to positions excepted from the 
     competitive service because of their confidential, policy-
     making, policy-determining, or policy-advocating character.
       (b) Timing of Transfers and Position Assignments.--Each 
     employee to be transferred under this section shall--
       (1) be transferred not later than 90 days after the 
     transfer date; and
       (2) receive notice of the position assignment of the 
     employee not later than 120 days after the effective date of 
     the transfer.
       (c) Transfer of Functions.--
       (1) In general.--Notwithstanding any other provision of 
     law, the transfer of employees under this title shall be 
     deemed a transfer of functions for the purpose of section 
     3503 of title 5, United States Code.
       (2) Priority of this act.--If any provision of this title 
     conflicts with any protection provided to a transferred 
     employee under section 3503 of title 5, United States Code, 
     the provisions of this title shall control.
       (d) Status and Eligibility of Employees.--The transfer of 
     functions and employees under this title, and the abolishment 
     of the Securities and Exchange Commission and the Commodity 
     Futures Trading Commission under section 1322, shall not 
     affect the status of the transferred employees as employees 
     of an agency of the United States under any provision of law.
       (e) Equal Status and Tenure Positions.--
       (1) Status and tenure.--Each transferred employee shall be 
     placed in a position at the Commission with the same status 
     and tenure as the transferred employee held on the day before 
     the date on which the employee was transferred.
       (2) Functions.--To the extent practicable, each transferred 
     employee shall be placed in a position at the Commission 
     responsible for the same functions and duties as the 
     transferred employee had on the day before the date on which 
     the employee was transferred, in accordance with the 
     expertise and preferences of the transferred employee.
       (f) No Additional Certification Requirements.--An examiner 
     who is a transferred employee shall not be subject to any 
     additional certification requirements before being placed in 
     a comparable position in the Commission, if the examiner 
     carries out examinations of the same type of institutions as 
     an employee of the Commission as the examiner carried out 
     before the date on which the employee was transferred.
       (g) Personnel Actions Limited.--
       (1) 2-year protection.--Except as provided in paragraph 
     (2), during the 2-year period beginning on the transfer date, 
     an employee holding a permanent position on the day before 
     the date on which the employee was transferred shall not be 
     involuntarily separated or involuntarily reassigned outside 
     the locality pay area (as defined by the Office of Personnel 
     Management) of the employee.
       (2) Exceptions.--The Chairman may--
       (A) separate a transferred employee for cause, including 
     for unacceptable performance; or
       (B) terminate an appointment to a position excepted from 
     the competitive service because of its confidential policy-
     making, policy-determining, or policy-advocating character.
       (h) Pay.--
       (1) 2-year protection.--Except as provided in paragraph 
     (2), during the 2-year period beginning on the date on which 
     the employee was transferred under this title, a transferred 
     employee shall be paid at a rate that is not less than the 
     basic rate of pay, including any geographic differential, 
     that the

[[Page 8224]]

     transferred employee received during the 2-year period 
     immediately preceding the date on which the employee was 
     transferred.
       (2) Exceptions.--The Chairman may reduce the rate of basic 
     pay of a transferred employee--
       (A) for cause, including for unacceptable performance; or
       (B) with the consent of the transferred employee.
       (3) Protection only while employed.--This subsection shall 
     apply to a transferred employee only during the period that 
     the transferred employee remains employed by the Commission.
       (4) Pay increases permitted.--Nothing in this subsection 
     shall limit the authority of the Chairman to increase the pay 
     of a transferred employee.
       (i) Benefits.--
       (1) Retirement benefits for transferred employees.--
       (A) In general.--
       (i) Continuation of existing retirement plan.--Each 
     transferred employee shall remain enrolled in the retirement 
     plan of the transferred employee, for as long as the 
     transferred employee is employed by the Commission.
       (ii) Employer's contribution.--The Chairman shall pay any 
     employer contributions to the existing retirement plan of 
     each transferred employee, as required under each such 
     existing retirement plan.
       (B) Definition.--In this paragraph, the term ``existing 
     retirement plan'' means, with respect to a transferred 
     employee, the retirement plan (including the Financial 
     Institutions Retirement Fund), and any associated thrift 
     savings plan, of the agency from which the employee was 
     transferred in which the employee was enrolled on the day 
     before the date on which the employee was transferred.
       (2) Benefits other than retirement benefits.--
       (A) During first year.--
       (i) Existing plans continue.--During the 1-year period 
     following the transfer date, each transferred employee may 
     retain membership in any employee benefit program (other than 
     a retirement benefit program) of the agency from which the 
     employee transferred, including any dental, vision, long term 
     care, or life insurance program to which the employee 
     belonged on the day before the transfer date.
       (ii) Employer's contribution.--The Chairman shall pay any 
     employer cost required to extend coverage in the benefit 
     program to the transferred employee as required under that 
     program or negotiated agreements.
       (B) Dental, vision, or life insurance after first year.--
     If, after the 1-year period beginning on the transfer date, 
     the Chairman determines that the Commission will not continue 
     to participate in any dental, vision, or life insurance 
     program of an agency from which an employee transferred, a 
     transferred employee who is a member of the program may, 
     before the decision of the Chairman takes effect and without 
     regard to any regularly scheduled open season, elect to 
     enroll in--
       (i) the enhanced dental benefits program established under 
     chapter 89A of title 5, United States Code;
       (ii) the enhanced vision benefits established under chapter 
     89B of title 5, United States Code; and
       (iii) the Federal Employees' Group Life Insurance Program 
     established under chapter 87 of title 5, United States Code, 
     without regard to any requirement of insurability.
       (C) Long term care insurance after 1st year.--If, after the 
     1-year period beginning on the transfer date, the Chairman 
     determines that the Commission will not continue to 
     participate in any long term care insurance program of an 
     agency from which an employee transferred, a transferred 
     employee who is a member of such a program may, before the 
     decision of the Chairman takes effect, elect to apply for 
     coverage under the Federal Long Term Care Insurance Program 
     established under chapter 90 of title 5, United States Code, 
     under the underwriting requirements applicable to a new 
     active workforce member, as described in part 875 of title 5, 
     Code of Federal Regulations (or any successor thereto).
       (D) Contribution of transferred employee.--
       (i) In general.--Subject to clause (ii), a transferred 
     employee who is enrolled in a plan under the Federal 
     Employees Health Benefits Program shall pay any employee 
     contribution required under the plan.
       (ii) Cost differential.--The Chairman shall pay any 
     difference in cost between the employee contribution required 
     under the plan provided to transferred employees by the 
     agency from which the employee transferred on the date of 
     enactment of this Act and the plan provided by the Chairman 
     under this section.
       (iii) Funds transfer.--The Chairman shall transfer to the 
     Employees Health Benefits Fund established under section 8909 
     of title 5, United States Code, an amount determined by the 
     Director of the Office of Personnel Management, after 
     consultation with the Chairman and the Office of Management 
     and Budget, to be necessary to reimburse the Fund for the 
     cost to the Fund of providing any benefits under this 
     subparagraph that are not otherwise paid for by a transferred 
     employee under clause (i).
       (E) Special provisions to ensure continuation of life 
     insurance benefits.--
       (i) In general.--An annuitant, as defined in section 8901 
     of title 5, United States Code, who is enrolled in a life 
     insurance plan administered by an agency from which employees 
     are transferred under this Act on the day before the transfer 
     date shall be eligible for coverage by a life insurance plan 
     under section 8706(b), 8714a, 8714b, or 8714c of title 5, 
     United States Code, or by a life insurance plan established 
     by the Chairman, without regard to any regularly scheduled 
     open season or any requirement of insurability.
       (ii) Contribution of transferred employee.--

       (I) In general.--Subject to subclause (II), a transferred 
     employee enrolled in a life insurance plan under this clause 
     shall pay any employee contribution required by the plan.
       (II) Cost differential.--The Chairman shall pay any 
     difference in cost between the benefits provided by the 
     agency from which the employee transferred on the date of 
     enactment of this Act and the benefits provided under this 
     section.
       (III) Funds transfer.--The Chairman shall transfer to the 
     Employees' Life Insurance Fund established under section 8714 
     of title 5, United States Code, an amount determined by the 
     Director of the Office of Personnel Management, after 
     consultation with the Chairman and the Office of Management 
     and Budget, to be necessary to reimburse the Fund for the 
     cost to the Fund of providing benefits under this 
     subparagraph not otherwise paid for by a transferred employee 
     under subclause (I).
       (IV) Credit for time enrolled in other plans.--For any 
     transferred employee, enrollment in a life insurance plan 
     administered by the agency from which the employee 
     transferred, the Chairman immediately before enrollment in a 
     life insurance plan under chapter 87 of title 5, United 
     States Code, shall be considered as enrollment in a life 
     insurance plan under that chapter for purposes of section 
     8706(b)(1)(A) of title 5, United States Code.

       (j) Implementation of Uniform Pay and Classification 
     System.--Not later than 2 years after the transfer date, the 
     Chairman shall implement a uniform pay and classification 
     system for all transferred employees.
       (k) Equitable Treatment.--In administering the provisions 
     of this section, the Chairman--
       (1) may not take any action that would unfairly 
     disadvantage a transferred employee relative to any other 
     transferred employee on the basis of prior employment by the 
     Securities and Exchange Commission or the Commodity Futures 
     Trading Commission; and
       (2) may take such action as is appropriate in an individual 
     case to ensure that a transferred employee receives equitable 
     treatment, with respect to the status, tenure, pay, benefits 
     (other than benefits under programs administered by the 
     Office of Personnel Management), and accrued leave or 
     vacation time for prior periods of service with any Federal 
     agency of the transferred employee.

     SEC. 1352. PROPERTY TRANSFERRED.

       (a) Property Defined.--For purposes of this section, the 
     term ``property'' includes all real property (including 
     leaseholds) and all personal property (including computers, 
     furniture, fixtures, equipment, books, accounts, records, 
     reports, files, memoranda, paper, reports of examination, 
     work papers and correspondence related to such reports, and 
     any other information or materials).
       (b) In General.--Not later than 90 days after the transfer 
     date, all property of the Securities and Exchange Commission 
     and the Commodity Futures Trading Commission shall be 
     transferred to the Commission.
       (c) Contracts Related to Property Transferred.--Each 
     contract, agreement, lease, license, permit, and similar 
     arrangement relating to property transferred to the 
     Commission by this section shall be transferred to the 
     Commission together with the property.
       (d) Preservation of Property.--Property identified for 
     transfer under this section shall not be altered, destroyed, 
     or deleted before transfer under this section.

     SEC. 1353. SAVINGS PROVISIONS.

       (a) Securities and Exchange Commission.--
       (1) Existing rights, duties, and obligations not 
     affected.--Sections 1321(a) and 1322 shall not affect the 
     validity of any right, duty, or obligation of the United 
     States, the Commissioners of the Securities and Exchange 
     Commission, the Securities and Exchange Commission, or any 
     other person, that existed on the day before the transfer 
     date.
       (2) Continuation of suits.--This title shall not abate any 
     action or proceeding commenced by or against the 
     Commissioners of the Securities and Exchange Commission or 
     the Securities and Exchange Commission before the transfer 
     date, except that the Chairman or the Commission shall be 
     substituted for the Commissioners or the Securities and 
     Exchange Commission, as the case may be, as a party to any 
     such action or proceeding as of the transfer date.
       (b) Commodity Futures Trading Commission.--

[[Page 8225]]

       (1) Existing rights, duties, and obligations not 
     affected.--Sections 1321(b) and 1322 shall not affect the 
     validity of any right, duty, or obligation of the United 
     States, the Commissioners of the Commodity Futures Trading 
     Commission, the Commodity Futures Trading Commission, or any 
     other person, that existed on the day before the transfer 
     date.
       (2) Continuation of suits.--This Act shall not abate any 
     action or proceeding commenced by or against the 
     Commissioners of the Commodity Futures Trading Commission or 
     the Commodity Futures Trading Commission before the transfer 
     date, except that the Chairman or the Commission shall be 
     substituted for the Commissioners of the Commodity Futures 
     Trading Commission or the Commodity Futures Trading 
     Commission, as the case may be, as a party to the action or 
     proceeding as of the transfer date.
       (c) Continuation of Existing Orders, Resolutions, 
     Determinations, Agreements, Regulations, etc.--
       (1) Securities and exchange commission.--All orders, 
     resolutions, determinations, agreements, and regulations, 
     interpretative rules, other interpretations, guidelines, 
     procedures, and other advisory materials that have been 
     issued, made, prescribed, or allowed to become effective by 
     the Securities and Exchange Commission, or by a court of 
     competent jurisdiction, that are in effect on the day before 
     the transfer date, shall continue in effect according to the 
     terms of those orders, resolutions, determinations, 
     agreements, and regulations, interpretative rules, other 
     interpretations, guidelines, procedures, and other advisory 
     materials, and shall be enforceable by or against the 
     Commission until modified, terminated, set aside, or 
     superseded in accordance with applicable law by the 
     Commission, by any court of competent jurisdiction, or by 
     operation of law.
       (2) Commodity futures trading commission.--All orders, 
     resolutions, determinations, agreements, and regulations, 
     interpretative rules, other interpretations, guidelines, 
     procedures, and other advisory materials, that have been 
     issued, made, prescribed, or allowed to become effective by 
     the Commodity Futures Trading Commission, or by a court of 
     competent jurisdiction, that are in effect on the day before 
     the transfer date, shall continue in effect according to the 
     terms of those orders, resolutions, determinations, 
     agreements, and regulations, interpretative rules, other 
     interpretations, guidelines, procedures, and other advisory 
     materials, and shall be enforceable by or against the 
     Commission until modified, terminated, set aside, or 
     superseded in accordance with applicable law by the 
     Commission, by any court of competent jurisdiction, or by 
     operation of law.
       (d) Identification of Regulations Continued.--Not later 
     than the transfer date, the Chairman shall--
       (1) in consultation with the Chairman of the Securities and 
     Exchange Commission and the Chairman of the Commodity Futures 
     Trading Commission, identify the regulations continued under 
     subsection (c) that will be enforced by the Commission; and
       (2) publish a list of such regulations in the Federal 
     Register.
       (e) Status of Regulations Proposed or Not Yet Effective.--
       (1) Proposed regulations.--Any proposed regulation of the 
     Securities and Exchange Commission or the Commodity Futures 
     Trading Commission which that agency, in performing functions 
     transferred by this title, has proposed before the transfer 
     date but has not published as a final regulation before that 
     date, shall be deemed to be a proposed regulation of the 
     Commission.
       (2) Regulations not yet effective.--Any interim or final 
     regulation of the Securities and Exchange Commission or the 
     Commodity Futures Trading Commission which that agency, in 
     performing functions transferred by this title, has published 
     before the transfer date but which has not become effective 
     before that date, shall become effective as a regulation of 
     the Commission according to the terms of the regulation.

     SEC. 1354. SEVERABILITY.

       If any provision of this title or the application thereof 
     to any person or circumstance is held invalid, neither the 
     remainder of this title nor the application of such provision 
     to other persons or circumstances shall be affected thereby.

     SEC. 1355. REFERENCES IN FEDERAL LAW.

       On and after the transfer date of this title, any reference 
     in any other Federal law to any function of any department, 
     commission, or agency, or any officer or office that is 
     transferred under this title shall be deemed to be a 
     reference to the Commission, or the official or component of 
     the Commission to which this title transfers such functions.

     SEC. 1356. AMENDMENTS.

       (a) Executive Schedule Salaries.--
       (1) Chairman.--Section 5314 of title 5, United States Code, 
     is amended--
       (A) by striking the item relating to ``Chairman, Securities 
     and Exchange Commission.'' and inserting the following:
       ``Chairman, Financial Markets Commission.''; and
       (B) by striking the item relating to ``Chairman, Commodity 
     Futures Trading Commission.''.
       (2) Members.--Section 5315 of title 5, United States Code, 
     is amended--
       (A) by striking the item relating to ``Members, Securities 
     and Exchange Commission'' and inserting the following:
       ``Members, Financial Markets Commission''; and
       (B) by striking the item relating to ``Members, Commodity 
     Futures Trading Commission.''.
       (b) Conforming Amendments.--
       (1) Securities exchange act.--Sections 4 and 35 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78d and 78kk) are 
     repealed.
       (2) Commodity exchange act.--Section 2(a) of the Commodity 
     Exchange Act (7 U.S.C. 2) is amended by striking paragraphs 
     (2), (3), and (4).

     SEC. 1357. INTERIM USE OF FUNDS, PERSONNEL, AND PROPERTY.

       (a) Interim Authority of Chairman.--During the period 
     beginning on the date on which the first Chairman is 
     appointed under section 1312 and ending on the transfer date, 
     the Chairman shall--
       (1) consult and cooperate with the Chairman of the 
     Securities and Exchange Commission and the Chairman of the 
     Commodity Futures Trading Commission to facilitate the 
     orderly transfer of functions to the Commission;
       (2) determine, from time to time--
       (A) the amount of funds necessary to pay the expenses of 
     the Commission (including expenses for personnel, property, 
     and administrative services);
       (B) which personnel are appropriate to facilitate the 
     orderly transfer of functions under this title; and
       (C) what property and administrative services are necessary 
     to support the Commission; and
       (3) take such actions as may be necessary to provide for 
     the orderly implementation of this title.
       (b) Interim Responsibilities.--Before the transfer date, 
     upon the request of the Chairman, the Chairman of the 
     Securities and Exchange Commission and the Chairman of the 
     Commodity Futures Trading Commission shall each--
       (1) pay to the Chairman, from funds appropriated to such 
     agencies, such funds as the Chairman determines to be 
     necessary under subsection (a)(2)(A);
       (2) detail to the Commission such personnel as the Chairman 
     determines to be appropriate under subsection (a)(2)(B); and
       (3) make available to the Commission such property and 
     provide to the Commission such administrative services as the 
     Chairman determines to be necessary under subsection 
     (a)(2)(C).
       (c) Notice Required.--The Chairman shall give to the 
     Chairman of the Securities and Exchange Commission and the 
     Chairman of the Commodity Futures Trading Commission 
     reasonable notice of any request that the Chairman intends to 
     make under subsection (b).

                       Subtitle E--Transfer Date

     SEC. 1361. TRANSFER DATE.

       (a) Transfer Date.--Except as provided in subsection (b), 
     the term ``transfer date'' means the date that is 1 year 
     after the date of enactment of this title.
       (b) Extension Permitted.--
       (1) Notice required.--The President may designate a 
     transfer date that is not later than 18 months after the date 
     of enactment of this Act, if the President transmits to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives--
       (A) a written determination that orderly implementation of 
     this title is not feasible before the date that is 1 year 
     after the date of enactment of this Act;
       (B) an explanation of why an extension is necessary for the 
     orderly implementation of this title; and
       (C) a description of the steps that will be taken to effect 
     an orderly and timely implementation of this title within the 
     extended time period.
       (2) Publication of notice.--Not later than 180 days after 
     the date of enactment of this Act, the President shall 
     publish in the Federal Register notice of any date designated 
     under paragraph (1).
                                 ______
                                 
  SA 4030. Mr. CRAPO submitted an amendment intended to be proposed by 
him to the bill S. 3217, to promote the financial stability of the 
United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       Strike section 965 and insert the following:

     SEC. 965. ORGANIZATION OF COMMISSION.

       The Securities Exchange Act of 1934 (15 U.S.C. 78 et seq.) 
     is amended by inserting after section 4D, as added by section 
     996 of this Act, the following:

     ``SEC. 4E. ORGANIZATION OF THE COMMISSION.

       ``(a) Division of Retail Investor Protection and Retail 
     Financial Services.--

[[Page 8226]]

       ``(1) In general.--There shall be within the Commission a 
     Division of Retail Investor Protection and Retail Financial 
     Services.
       ``(2) Head of division.--The head of the Division of Retail 
     Investor Protection and Retail Financial Services shall be 
     appointed by the Chairman.
       ``(3) Subdivisions.--There shall be within the Division of 
     Retail Investor Protection and Retail Financial Services--
       ``(A) a subdivision with responsibility for functions 
     relating to investor outreach and education; and
       ``(B) a subdivision with responsibility for functions 
     relating to inspections and examinations.
       ``(b) Division of Trading.--
       ``(1) In general.--There shall be within the Commission a 
     Division of Trading.
       ``(2) Head of division.--The head of the Division of 
     Trading shall be appointed by the Chairman.
       ``(3) Subdivision.--There shall be within the Division of 
     Trading a subdivision with responsibility for functions 
     relating to inspections and examinations.
       ``(c) Division of Corporate Disclosure.--
       ``(1) In general.--There shall be within the Commission a 
     Division of Corporate Disclosure.
       ``(2) Head of division.--The head of the Division of 
     Corporate Disclosure shall be appointed by the Chairman.
       ``(3) Subdivision.--There shall be within the Division of 
     Corporate Disclosure a subdivision with responsibility for 
     functions relating to accounting and auditing matters.
       ``(d) Division of Economic Analysis.--
       ``(1) Purposes.--The purpose of this subsection is to 
     enhance the ability of the Commission to use professional and 
     objective economic analysis to inform the design and 
     implementation of rulemaking and other actions of the 
     Commission.
       ``(2) Division established.--There shall be within the 
     Commission a Division of Economic Analysis.
       ``(3) Subdivisions.--There shall be within the Division of 
     Economic Analysis--
       ``(A) a subdivision with responsibility for functions 
     relating to risk analysis and financial innovation; and
       ``(B) a subdivision with responsibility for functions 
     relating to international technical assistance.
       ``(4) Chief economist.--
       ``(A) Appointment.--The Division shall be headed by a Chief 
     Economist, appointed by the Chairman of the Commission, 
     subject to approval of a vote of at least a majority of the 
     members of the Commission then in office, such majority to 
     include at least 1 member of the Commission who is not a 
     member of the same political party as the Chairman, if any 
     such member is then in office.
       ``(B) Criteria.--The Chief Economist--
       ``(i) shall be an experienced economist of distinction, 
     with a doctorate in economics or the equivalent in education 
     and experience;
       ``(ii) shall report to and be under the general supervision 
     of the Chairman; and
       ``(iii) shall not report to, or be subject to supervision 
     by, any other officer or employee of the Commission.
       ``(C) Removal.--The Chairman of the Commission may remove 
     the Chief Economist from office. The Chairman shall 
     communicate in writing to both Houses of Congress the reasons 
     for any such removal, not later than 30 days before the 
     effective date of such removal.
       ``(5) Reports.--
       ``(A) In general.--Except as provided in subparagraph (D), 
     whenever using its authority under any provision of law, the 
     Commission publishes a release giving notice of a proposed 
     rulemaking or other proposed action by the Commission, and 
     affords interested persons an opportunity to comment on such 
     proposed rulemaking or other action or publishes a release 
     adopting a final rule or otherwise taking action after such 
     publication and opportunity to comment, such release shall 
     include as a part thereof a report by the Division.
       ``(B) Content.--Each report required by subparagraph (A)--
       ``(i) shall set forth in reasonable detail an economic 
     analysis of the consequences of the Commission action that is 
     the subject of the report, in light of the statutory 
     responsibilities of the Commission and the stated purposes of 
     the Commission for the action, including when the 
     responsibilities of the Commission so require, the effects of 
     the action on efficiency, competition, and capital formation;
       ``(ii) shall refer to any peer-reviewed or other relevant 
     literature, including any study undertaken by the staff of 
     the Commission, that provides support for the analysis 
     contained in the report (except that the Division is not 
     required to undertake original research in the preparation 
     thereof);
       ``(iii) shall describe the extent to which the conclusions 
     of the report remain subject to uncertainty; and
       ``(iv) with respect to a report delivered in connection 
     with a proposed rulemaking or other proposed action, may 
     request information or comment from the public.
       ``(C) Form and oversight.--Each report required by 
     subparagraph (A)--
       ``(i) shall be prepared under the direction of, and 
     expressly approved by and published over the name of, the 
     Chief Economist;
       ``(ii) shall not be subject to approval by the Chairman of 
     the Commission or the Commission;
       ``(iii) shall be in final form, dated not later than 1 week 
     prior to the vote of the Commission (or the circulation of a 
     seriatim or other means of Commission action) to which the 
     report relates, to ensure adequate opportunity for the 
     Commission to consider its contents prior to such action;
       ``(iv) shall include a statement confirming that the 
     Chairman of the Commission informed the Division, not later 
     than 60 days prior to the date of the report, of all material 
     aspects of the proposed action covered by the report, in 
     sufficient detail for the purposes of the report or, if a 
     lesser time was afforded, that such lesser time was 
     reasonably sufficient for the preparation of the report; and
       ``(v) shall include a statement confirming that the 
     Division was afforded reasonably sufficient resources for the 
     preparation of the report, or describing any lack thereof.
       ``(D) Exception.--
       ``(i) In general.--Notwithstanding subparagraph (A), no 
     report shall be required under this paragraph--

       ``(I) if the subject Commission action does not propose or 
     adopt a major rule for purposes of the Small Business 
     Regulatory Enforcement Fairness Act of 1996, unless at least 
     2 members of the Commission (or 1 member, if 5 members of the 
     Commission are not then in office) request a report; or
       ``(II) at the time of issuance of an interim final 
     rulemaking or other emergency action by the Commission, 
     provided that a report regarding such rulemaking or action is 
     published not later than 60 days thereafter.

       ``(ii) Procedure.--The Commission may adopt rules of 
     procedure governing the time and manner by which requests 
     described in clause (i)(I) shall be made by members of the 
     Commission.
       ``(e) Division of Enforcement.--
       ``(1) In general.--There shall be within the Commission a 
     Division of Enforcement.
       ``(2) Head of division.--The head of the Division of 
     Enforcement shall be appointed by the Chairman.
       ``(3) Subdivision.--There shall be within the Division of 
     Enforcement a subdivision with responsibility for functions 
     relating to international enforcement assistance.''.
                                 ______
                                 
  SA 4031. Mr. CRAPO submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1258, strike line 24 and all that follows through 
     page 1267, line 12 and insert the following:
       (B) obtaining information about the activities subject to 
     such law and the associated compliance systems or procedures 
     of such persons; and
       (C) detecting and assessing risks to consumers and to 
     markets for consumer financial products and services.
       (2) Coordination.--To minimize regulatory burden, the 
     Bureau and the prudential regulators shall coordinate their 
     supervisory activities for persons described in subsection 
     (a), in a manner that--
       (A) avoids duplication;
       (B) shares information relevant to the supervision of the 
     depository institution or affiliate by each agency; and
       (C) ensures that the depository institution or affiliate is 
     not subject to conflicting supervisory demands by the 
     agencies.
       (3) Coordination with state bank supervisors.--The Bureau 
     shall pursue arrangements and agreements with State bank 
     supervisors to coordinate supervisory activities in a manner 
     consistent with paragraph (2).
       (4) Use of existing reports.--The Bureau shall, to the 
     fullest extent possible, use--
       (A) reports pertaining to a person described in subsection 
     (a) that have been provided or required to have been provided 
     to a Federal or State agency; and
       (B) information that has been reported publicly.
       (5) Preservation of authority.--Nothing in this title may 
     be construed as limiting the authority of the Director to 
     require reports from a person described in subsection (a), as 
     permitted under paragraph (1), regarding information owned or 
     under the control of such person, regardless of whether such 
     information is maintained, stored, or processed by another 
     person.
       (6) Reports of tax law noncompliance.--The Bureau shall 
     provide the Commissioner of Internal Revenue with any report 
     of examination or related information identifying possible 
     tax law noncompliance.
       (c) Primary Enforcement Authority.--

[[Page 8227]]

       (1) The bureau to have primary enforcement authority.--To 
     the extent that the Bureau and another Federal agency are 
     authorized to enforce a Federal consumer financial law, the 
     Bureau shall have primary authority to enforce that Federal 
     consumer financial law with respect to any person described 
     in subsection (a).
       (2) Referral.--Any Federal agency, other than the Federal 
     Trade Commission, that is authorized to enforce a Federal 
     consumer financial law may recommend, in writing, to the 
     Bureau that the Bureau initiate an enforcement proceeding 
     with respect to a person described in subsection (a), as the 
     Bureau is authorized to do by that Federal consumer financial 
     law.
       (3) Backup enforcement authority of other federal agency.--
     If the Bureau does not, before the end of the 120-day period 
     beginning on the date on which the Bureau receives a 
     recommendation under paragraph (2), initiate an enforcement 
     proceeding, the other agency referred to in paragraph (2) may 
     initiate an enforcement proceeding, as permitted by the 
     subject provision of Federal law.
       (d) Service Providers.--A service provider to a person 
     described in subsection (a) shall be subject to the authority 
     of the Bureau under this section, to the same extent as if 
     the Bureau were an appropriate Federal banking agency under 
     section 7(c) of the Bank Service Company Act 12 U.S.C. 
     1867(c). In conducting any examination or requiring any 
     report from a service provider subject to this subsection, 
     the Bureau shall coordinate with the appropriate prudential 
     regulator.
                                 ______
                                 
  SA 4032. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 3823 proposed by Mr. Leahy (for himself, Mr. Durbin, Mr. 
Rockefeller, Mr. Schumer, Mrs. Feinstein, Mr. Specter, Mr. Whitehouse, 
Ms. Cantwell, Mr. Kaufman, Mrs. Gillibrand, Mr. Wyden, Mr. Brown of 
Ohio, Mr. Lieberman, Mr. Burris, Mrs. McCaskill, Mr. Franken, Mr. 
Bennet, Mr. Feingold, Mr. Lautenberg, Mr. Webb, Mrs. Boxer, and Ms. 
Landrieu) to the amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd 
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 2 of the amendment, strike line 21 and insert the 
     following:

     Act.

             TITLE XIII--IMPORTATION OF PRESCRIPTION DRUGS

     SEC. 1301. SHORT TITLE.

       This title may be cited as the ``Pharmaceutical Market 
     Access and Drug Safety Act of 2010''.

     SEC. 1302. FINDINGS.

       Congress finds that--
       (1) Americans unjustly pay up to 5 times more to fill their 
     prescriptions than consumers in other countries;
       (2) the United States is the largest market for 
     pharmaceuticals in the world, yet American consumers pay the 
     highest prices for brand pharmaceuticals in the world;
       (3) a prescription drug is neither safe nor effective to an 
     individual who cannot afford it;
       (4) allowing and structuring the importation of 
     prescription drugs to ensure access to safe and affordable 
     drugs approved by the Food and Drug Administration will 
     provide a level of safety to American consumers that they do 
     not currently enjoy;
       (5) American spend more than $200,000,000,000 on 
     prescription drugs every year;
       (6) the Congressional Budget Office has found that the cost 
     of prescription drugs are between 35 to 55 percent less in 
     other highly-developed countries than in the United States; 
     and
       (7) promoting competitive market pricing would both 
     contribute to health care savings and allow greater access to 
     therapy, improving health and saving lives.

     SEC. 1303. REPEAL OF CERTAIN SECTION REGARDING IMPORTATION OF 
                   PRESCRIPTION DRUGS.

       Chapter VIII of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 381 et seq.) is amended by striking section 804.

     SEC. 1304. IMPORTATION OF PRESCRIPTION DRUGS; WAIVER OF 
                   CERTAIN IMPORT RESTRICTIONS.

       (a) In General.--Chapter VIII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by 
     section 1303, is further amended by inserting after section 
     803 the following:

     ``SEC. 804. COMMERCIAL AND PERSONAL IMPORTATION OF 
                   PRESCRIPTION DRUGS.

       ``(a) Importation of Prescription Drugs.--
       ``(1) In general.--In the case of qualifying drugs imported 
     or offered for import into the United States from registered 
     exporters or by registered importers--
       ``(A) the limitation on importation that is established in 
     section 801(d)(1) is waived; and
       ``(B) the standards referred to in section 801(a) regarding 
     admission of the drugs are subject to subsection (g) of this 
     section (including with respect to qualifying drugs to which 
     section 801(d)(1) does not apply).
       ``(2) Importers.--A qualifying drug may not be imported 
     under paragraph (1) unless--
       ``(A) the drug is imported by a pharmacy, group of 
     pharmacies, or a wholesaler that is a registered importer; or
       ``(B) the drug is imported by an individual for personal 
     use or for the use of a family member of the individual (not 
     for resale) from a registered exporter.
       ``(3) Rule of construction.--This section shall apply only 
     with respect to a drug that is imported or offered for import 
     into the United States--
       ``(A) by a registered importer; or
       ``(B) from a registered exporter to an individual.
       ``(4) Definitions.--
       ``(A) Registered exporter; registered importer.--For 
     purposes of this section:
       ``(i) The term `registered exporter' means an exporter for 
     which a registration under subsection (b) has been approved 
     and is in effect.
       ``(ii) The term `registered importer' means a pharmacy, 
     group of pharmacies, or a wholesaler for which a registration 
     under subsection (b) has been approved and is in effect.
       ``(iii) The term `registration condition' means a condition 
     that must exist for a registration under subsection (b) to be 
     approved.
       ``(B) Qualifying drug.--For purposes of this section, the 
     term `qualifying drug' means a drug for which there is a 
     corresponding U.S. label drug.
       ``(C) U.S. label drug.--For purposes of this section, the 
     term `U.S. label drug' means a prescription drug that--
       ``(i) with respect to a qualifying drug, has the same 
     active ingredient or ingredients, route of administration, 
     dosage form, and strength as the qualifying drug;
       ``(ii) with respect to the qualifying drug, is manufactured 
     by or for the person that manufactures the qualifying drug;
       ``(iii) is approved under section 505(c); and
       ``(iv) is not--

       ``(I) a controlled substance, as defined in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802);
       ``(II) a biological product, as defined in section 351 of 
     the Public Health Service Act (42 U.S.C. 262), including--

       ``(aa) a therapeutic DNA plasmid product;
       ``(bb) a therapeutic synthetic peptide product;
       ``(cc) a monoclonal antibody product for in vivo use; and
       ``(dd) a therapeutic recombinant DNA-derived product;

       ``(III) an infused drug, including a peritoneal dialysis 
     solution;
       ``(IV) an injected drug;
       ``(V) a drug that is inhaled during surgery;
       ``(VI) a drug that is the listed drug referred to in 2 or 
     more abbreviated new drug applications under which the drug 
     is commercially marketed; or
       ``(VII) a sterile opthlamic drug intended for topical use 
     on or in the eye.

       ``(D) Other definitions.--For purposes of this section:
       ``(i)(I) The term `exporter' means a person that is in the 
     business of exporting a drug to individuals in the United 
     States from Canada or from a permitted country designated by 
     the Secretary under subclause (II), or that, pursuant to 
     submitting a registration under subsection (b), seeks to be 
     in such business.
       ``(II) The Secretary shall designate a permitted country 
     under subparagraph (E) (other than Canada) as a country from 
     which an exporter may export a drug to individuals in the 
     United States if the Secretary determines that--

       ``(aa) the country has statutory or regulatory standards 
     that are equivalent to the standards in the United States and 
     Canada with respect to--

       ``(AA) the training of pharmacists;
       ``(BB) the practice of pharmacy; and
       ``(CC) the protection of the privacy of personal medical 
     information; and

       ``(bb) the importation of drugs to individuals in the 
     United States from the country will not adversely affect 
     public health.

       ``(ii) The term `importer' means a pharmacy, a group of 
     pharmacies, or a wholesaler that is in the business of 
     importing a drug into the United States or that, pursuant to 
     submitting a registration under subsection (b), seeks to be 
     in such business.
       ``(iii) The term `pharmacist' means a person licensed by a 
     State to practice pharmacy, including the dispensing and 
     selling of prescription drugs.
       ``(iv) The term `pharmacy' means a person that--

       ``(I) is licensed by a State to engage in the business of 
     selling prescription drugs at retail; and
       ``(II) employs 1 or more pharmacists.

       ``(v) The term `prescription drug' means a drug that is 
     described in section 503(b)(1).
       ``(vi) The term `wholesaler'--

[[Page 8228]]

       ``(I) means a person licensed as a wholesaler or 
     distributor of prescription drugs in the United States under 
     section 503(e)(2)(A); and
       ``(II) does not include a person authorized to import drugs 
     under section 801(d)(1).

       ``(E) Permitted country.--The term `permitted country' 
     means--
       ``(i) Australia;
       ``(ii) Canada;
       ``(iii) a member country of the European Union, but does 
     not include a member country with respect to which--

       ``(I) the country's Annex to the Treaty of Accession to the 
     European Union 2003 includes a transitional measure for the 
     regulation of human pharmaceutical products that has not 
     expired; or
       ``(II) the Secretary determines that the requirements 
     described in subclauses (I) and (II) of clause (vii) will not 
     be met by the date on which such transitional measure for the 
     regulation of human pharmaceutical products expires;

       ``(iv) Japan;
       ``(v) New Zealand;
       ``(vi) Switzerland; and
       ``(vii) a country in which the Secretary determines the 
     following requirements are met:

       ``(I) The country has statutory or regulatory 
     requirements--

       ``(aa) that require the review of drugs for safety and 
     effectiveness by an entity of the government of the country;
       ``(bb) that authorize the approval of only those drugs that 
     have been determined to be safe and effective by experts 
     employed by or acting on behalf of such entity and qualified 
     by scientific training and experience to evaluate the safety 
     and effectiveness of drugs on the basis of adequate and well-
     controlled investigations, including clinical investigations, 
     conducted by experts qualified by scientific training and 
     experience to evaluate the safety and effectiveness of drugs;
       ``(cc) that require the methods used in, and the facilities 
     and controls used for the manufacture, processing, and 
     packing of drugs in the country to be adequate to preserve 
     their identity, quality, purity, and strength;
       ``(dd) for the reporting of adverse reactions to drugs and 
     procedures to withdraw approval and remove drugs found not to 
     be safe or effective; and
       ``(ee) that require the labeling and promotion of drugs to 
     be in accordance with the approval of the drug.

       ``(II) The valid marketing authorization system in the 
     country is equivalent to the systems in the countries 
     described in clauses (i) through (vi).
       ``(III) The importation of drugs to the United States from 
     the country will not adversely affect public health.

       ``(b) Registration of Importers and Exporters.--
       ``(1) Registration of importers and exporters.--A 
     registration condition is that the importer or exporter 
     involved (referred to in this subsection as a `registrant') 
     submits to the Secretary a registration containing the 
     following:
       ``(A)(i) In the case of an exporter, the name of the 
     exporter and an identification of all places of business of 
     the exporter that relate to qualifying drugs, including each 
     warehouse or other facility owned or controlled by, or 
     operated for, the exporter.
       ``(ii) In the case of an importer, the name of the importer 
     and an identification of the places of business of the 
     importer at which the importer initially receives a 
     qualifying drug after importation (which shall not exceed 3 
     places of business except by permission of the Secretary).
       ``(B) Such information as the Secretary determines to be 
     necessary to demonstrate that the registrant is in compliance 
     with registration conditions under--
       ``(i) in the case of an importer, subsections (c), (d), 
     (e), (g), and (j) (relating to the sources of imported 
     qualifying drugs; the inspection of facilities of the 
     importer; the payment of fees; compliance with the standards 
     referred to in section 801(a); and maintenance of records and 
     samples); or
       ``(ii) in the case of an exporter, subsections (c), (d), 
     (f), (g), (h), (i), and (j) (relating to the sources of 
     exported qualifying drugs; the inspection of facilities of 
     the exporter and the marking of compliant shipments; the 
     payment of fees; and compliance with the standards referred 
     to in section 801(a); being licensed as a pharmacist; 
     conditions for individual importation; and maintenance of 
     records and samples).
       ``(C) An agreement by the registrant that the registrant 
     will not under subsection (a) import or export any drug that 
     is not a qualifying drug.
       ``(D) An agreement by the registrant to--
       ``(i) notify the Secretary of a recall or withdrawal of a 
     qualifying drug distributed in a permitted country that the 
     registrant has exported or imported, or intends to export or 
     import, to the United States under subsection (a);
       ``(ii) provide for the return to the registrant of such 
     drug; and
       ``(iii) cease, or not begin, the exportation or importation 
     of such drug unless the Secretary has notified the registrant 
     that exportation or importation of such drug may proceed.
       ``(E) An agreement by the registrant to ensure and monitor 
     compliance with each registration condition, to promptly 
     correct any noncompliance with such a condition, and to 
     promptly report to the Secretary any such noncompliance.
       ``(F) A plan describing the manner in which the registrant 
     will comply with the agreement under subparagraph (E).
       ``(G) An agreement by the registrant to enforce a contract 
     under subsection (c)(3)(B) against a party in the chain of 
     custody of a qualifying drug with respect to the authority of 
     the Secretary under clauses (ii) and (iii) of that 
     subsection.
       ``(H) An agreement by the registrant to notify the 
     Secretary not more than 30 days before the registrant intends 
     to make the change, of--
       ``(i) any change that the registrant intends to make 
     regarding information provided under subparagraph (A) or (B); 
     and
       ``(ii) any change that the registrant intends to make in 
     the compliance plan under subparagraph (F).
       ``(I) In the case of an exporter:
       ``(i) An agreement by the exporter that a qualifying drug 
     will not under subsection (a) be exported to any individual 
     not authorized pursuant to subsection (a)(2)(B) to be an 
     importer of such drug.
       ``(ii) An agreement to post a bond, payable to the Treasury 
     of the United States that is equal in value to the lesser 
     of--

       ``(I) the value of drugs exported by the exporter to the 
     United States in a typical 4-week period over the course of a 
     year under this section; or
       ``(II) $1,000,000.

       ``(iii) An agreement by the exporter to comply with 
     applicable provisions of Canadian law, or the law of the 
     permitted country designated under subsection 
     (a)(4)(D)(i)(II) in which the exporter is located, that 
     protect the privacy of personal information with respect to 
     each individual importing a prescription drug from the 
     exporter under subsection (a)(2)(B).
       ``(iv) An agreement by the exporter to report to the 
     Secretary--

       ``(I) not later than August 1 of each fiscal year, the 
     total price and the total volume of drugs exported to the 
     United States by the exporter during the 6-month period from 
     January 1 through June 30 of that year; and
       ``(II) not later than January 1 of each fiscal year, the 
     total price and the total volume of drugs exported to the 
     United States by the exporter during the previous fiscal 
     year.

       ``(J) In the case of an importer, an agreement by the 
     importer to report to the Secretary--
       ``(i) not later than August 1 of each fiscal year, the 
     total price and the total volume of drugs imported to the 
     United States by the importer during the 6-month period from 
     January 1 through June 30 of that fiscal year; and
       ``(ii) not later than January 1 of each fiscal year, the 
     total price and the total volume of drugs imported to the 
     United States by the importer during the previous fiscal 
     year.
       ``(K) Such other provisions as the Secretary may require by 
     regulation to protect the public health while permitting--
       ``(i) the importation by pharmacies, groups of pharmacies, 
     and wholesalers as registered importers of qualifying drugs 
     under subsection (a); and
       ``(ii) importation by individuals of qualifying drugs under 
     subsection (a).
       ``(2) Approval or disapproval of registration.--
       ``(A) In general.--Not later than 90 days after the date on 
     which a registrant submits to the Secretary a registration 
     under paragraph (1), the Secretary shall notify the 
     registrant whether the registration is approved or is 
     disapproved. The Secretary shall disapprove a registration if 
     there is reason to believe that the registrant is not in 
     compliance with one or more registration conditions, and 
     shall notify the registrant of such reason. In the case of a 
     disapproved registration, the Secretary shall subsequently 
     notify the registrant that the registration is approved if 
     the Secretary determines that the registrant is in compliance 
     with such conditions.
       ``(B) Changes in registration information.--Not later than 
     30 days after receiving a notice under paragraph (1)(H) from 
     a registrant, the Secretary shall determine whether the 
     change involved affects the approval of the registration of 
     the registrant under paragraph (1), and shall inform the 
     registrant of the determination.
       ``(3) Publication of contact information for registered 
     exporters.--Through the Internet website of the Food and Drug 
     Administration and a toll-free telephone number, the 
     Secretary shall make readily available to the public a list 
     of registered exporters, including contact information for 
     the exporters. Promptly after the approval of a registration 
     submitted under paragraph (1), the Secretary shall update the 
     Internet website and the information provided through the 
     toll-free telephone number accordingly.
       ``(4) Suspension and termination.--
       ``(A) Suspension.--With respect to the effectiveness of a 
     registration submitted under paragraph (1):

[[Page 8229]]

       ``(i) Subject to clause (ii), the Secretary may suspend the 
     registration if the Secretary determines, after notice and 
     opportunity for a hearing, that the registrant has failed to 
     maintain substantial compliance with a registration 
     condition.
       ``(ii) If the Secretary determines that, under color of the 
     registration, the exporter has exported a drug or the 
     importer has imported a drug that is not a qualifying drug, 
     or a drug that does not comply with subsection (g)(2)(A) or 
     (g)(4), or has exported a qualifying drug to an individual in 
     violation of subsection (i), the Secretary shall immediately 
     suspend the registration. A suspension under the preceding 
     sentence is not subject to the provision by the Secretary of 
     prior notice, and the Secretary shall provide to the 
     registrant an opportunity for a hearing not later than 10 
     days after the date on which the registration is suspended.
       ``(iii) The Secretary may reinstate the registration, 
     whether suspended under clause (i) or (ii), if the Secretary 
     determines that the registrant has demonstrated that further 
     violations of registration conditions will not occur.
       ``(B) Termination.--The Secretary, after notice and 
     opportunity for a hearing, may terminate the registration 
     under paragraph (1) of a registrant if the Secretary 
     determines that the registrant has engaged in a pattern or 
     practice of violating 1 or more registration conditions, or 
     if on 1 or more occasions the Secretary has under 
     subparagraph (A)(ii) suspended the registration of the 
     registrant. The Secretary may make the termination permanent, 
     or for a fixed period of not less than 1 year. During the 
     period in which the registration is terminated, any 
     registration submitted under paragraph (1) by the registrant, 
     or a person that is a partner in the export or import 
     enterprise, or a principal officer in such enterprise, and 
     any registration prepared with the assistance of the 
     registrant or such a person, has no legal effect under this 
     section.
       ``(5) Default of bond.--A bond required to be posted by an 
     exporter under paragraph (1)(I)(ii) shall be defaulted and 
     paid to the Treasury of the United States if, after 
     opportunity for an informal hearing, the Secretary determines 
     that the exporter has--
       ``(A) exported a drug to the United States that is not a 
     qualifying drug or that is not in compliance with subsection 
     (g)(2)(A), (g)(4), or (i); or
       ``(B) failed to permit the Secretary to conduct an 
     inspection described under subsection (d).
       ``(c) Sources of Qualifying Drugs.--A registration 
     condition is that the exporter or importer involved agrees 
     that a qualifying drug will under subsection (a) be exported 
     or imported into the United States only if there is 
     compliance with the following:
       ``(1) The drug was manufactured in an establishment--
       ``(A) required to register under subsection (h) or (i) of 
     section 510; and
       ``(B)(i) inspected by the Secretary; or
       ``(ii) for which the Secretary has elected to rely on a 
     satisfactory report of a good manufacturing practice 
     inspection of the establishment from a permitted country 
     whose regulatory system the Secretary recognizes as 
     equivalent under a mutual recognition agreement, as provided 
     for under section 510(i)(3), section 803, or part 26 of title 
     21, Code of Federal Regulations (or any corresponding 
     successor rule or regulation).
       ``(2) The establishment is located in any country, and the 
     establishment manufactured the drug for distribution in the 
     United States or for distribution in 1 or more of the 
     permitted countries (without regard to whether in addition 
     the drug is manufactured for distribution in a foreign 
     country that is not a permitted country).
       ``(3) The exporter or importer obtained the drug--
       ``(A) directly from the establishment; or
       ``(B) directly from an entity that, by contract with the 
     exporter or importer--
       ``(i) provides to the exporter or importer a statement (in 
     such form and containing such information as the Secretary 
     may require) that, for the chain of custody from the 
     establishment, identifies each prior sale, purchase, or trade 
     of the drug (including the date of the transaction and the 
     names and addresses of all parties to the transaction);
       ``(ii) agrees to permit the Secretary to inspect such 
     statements and related records to determine their accuracy;
       ``(iii) agrees, with respect to the qualifying drugs 
     involved, to permit the Secretary to inspect warehouses and 
     other facilities, including records, of the entity for 
     purposes of determining whether the facilities are in 
     compliance with any standards under this Act that are 
     applicable to facilities of that type in the United States; 
     and
       ``(iv) has ensured, through such contractual relationships 
     as may be necessary, that the Secretary has the same 
     authority regarding other parties in the chain of custody 
     from the establishment that the Secretary has under clauses 
     (ii) and (iii) regarding such entity.
       ``(4)(A) The foreign country from which the importer will 
     import the drug is a permitted country; or
       ``(B) The foreign country from which the exporter will 
     export the drug is the permitted country in which the 
     exporter is located.
       ``(5) During any period in which the drug was not in the 
     control of the manufacturer of the drug, the drug did not 
     enter any country that is not a permitted country.
       ``(6) The exporter or importer retains a sample of each lot 
     of the drug for testing by the Secretary.
       ``(d) Inspection of Facilities; Marking of Shipments.--
       ``(1) Inspection of facilities.--A registration condition 
     is that, for the purpose of assisting the Secretary in 
     determining whether the exporter involved is in compliance 
     with all other registration conditions--
       ``(A) the exporter agrees to permit the Secretary--
       ``(i) to conduct onsite inspections, including monitoring 
     on a day-to-day basis, of places of business of the exporter 
     that relate to qualifying drugs, including each warehouse or 
     other facility owned or controlled by, or operated for, the 
     exporter;
       ``(ii) to have access, including on a day-to-day basis, 
     to--

       ``(I) records of the exporter that relate to the export of 
     such drugs, including financial records; and
       ``(II) samples of such drugs;

       ``(iii) to carry out the duties described in paragraph (3); 
     and
       ``(iv) to carry out any other functions determined by the 
     Secretary to be necessary regarding the compliance of the 
     exporter; and
       ``(B) the Secretary has assigned 1 or more employees of the 
     Secretary to carry out the functions described in this 
     subsection for the Secretary randomly, but not less than 12 
     times annually, on the premises of places of businesses 
     referred to in subparagraph (A)(i), and such an assignment 
     remains in effect on a continuous basis.
       ``(2) Marking of compliant shipments.--A registration 
     condition is that the exporter involved agrees to affix to 
     each shipping container of qualifying drugs exported under 
     subsection (a) such markings as the Secretary determines to 
     be necessary to identify the shipment as being in compliance 
     with all registration conditions. Markings under the 
     preceding sentence shall--
       ``(A) be designed to prevent affixation of the markings to 
     any shipping container that is not authorized to bear the 
     markings; and
       ``(B) include anticounterfeiting or track-and-trace 
     technologies, taking into account the economic and technical 
     feasibility of those technologies.
       ``(3) Certain duties relating to exporters.--Duties of the 
     Secretary with respect to an exporter include the following:
       ``(A) Inspecting, randomly, but not less than 12 times 
     annually, the places of business of the exporter at which 
     qualifying drugs are stored and from which qualifying drugs 
     are shipped.
       ``(B) During the inspections under subparagraph (A), 
     verifying the chain of custody of a statistically significant 
     sample of qualifying drugs from the establishment in which 
     the drug was manufactured to the exporter, which shall be 
     accomplished or supplemented by the use of anticounterfeiting 
     or track-and-trace technologies, taking into account the 
     economic and technical feasibility of those technologies, 
     except that a drug that lacks such technologies from the 
     point of manufacture shall not for that reason be excluded 
     from importation by an exporter.
       ``(C) Randomly reviewing records of exports to individuals 
     for the purpose of determining whether the drugs are being 
     imported by the individuals in accordance with the conditions 
     under subsection (i). Such reviews shall be conducted in a 
     manner that will result in a statistically significant 
     determination of compliance with all such conditions.
       ``(D) Monitoring the affixing of markings under paragraph 
     (2).
       ``(E) Inspecting as the Secretary determines is necessary 
     the warehouses and other facilities, including records, of 
     other parties in the chain of custody of qualifying drugs.
       ``(F) Determining whether the exporter is in compliance 
     with all other registration conditions.
       ``(4) Prior notice of shipments.--A registration condition 
     is that, not less than 8 hours and not more than 5 days in 
     advance of the time of the importation of a shipment of 
     qualifying drugs, the importer involved agrees to submit to 
     the Secretary a notice with respect to the shipment of drugs 
     to be imported or offered for import into the United States 
     under subsection (a). A notice under the preceding sentence 
     shall include--
       ``(A) the name and complete contact information of the 
     person submitting the notice;
       ``(B) the name and complete contact information of the 
     importer involved;
       ``(C) the identity of the drug, including the established 
     name of the drug, the quantity of the drug, and the lot 
     number assigned by the manufacturer;
       ``(D) the identity of the manufacturer of the drug, 
     including the identity of the establishment at which the drug 
     was manufactured;
       ``(E) the country from which the drug is shipped;
       ``(F) the name and complete contact information for the 
     shipper of the drug;
       ``(G) anticipated arrival information, including the port 
     of arrival and crossing location within that port, and the 
     date and time;

[[Page 8230]]

       ``(H) a summary of the chain of custody of the drug from 
     the establishment in which the drug was manufactured to the 
     importer;
       ``(I) a declaration as to whether the Secretary has ordered 
     that importation of the drug from the permitted country cease 
     under subsection (g)(2)(C) or (D); and
       ``(J) such other information as the Secretary may require 
     by regulation.
       ``(5) Marking of compliant shipments.--A registration 
     condition is that the importer involved agrees, before 
     wholesale distribution (as defined in section 503(e)) of a 
     qualifying drug that has been imported under subsection (a), 
     to affix to each container of such drug such markings or 
     other technology as the Secretary determines necessary to 
     identify the shipment as being in compliance with all 
     registration conditions, except that the markings or other 
     technology shall not be required on a drug that bears 
     comparable, compatible markings or technology from the 
     manufacturer of the drug. Markings or other technology under 
     the preceding sentence shall--
       ``(A) be designed to prevent affixation of the markings or 
     other technology to any container that is not authorized to 
     bear the markings; and
       ``(B) shall include anticounterfeiting or track-and-trace 
     technologies, taking into account the economic and technical 
     feasibility of such technologies.
       ``(6) Certain duties relating to importers.--Duties of the 
     Secretary with respect to an importer include the following:
       ``(A) Inspecting, randomly, but not less than 12 times 
     annually, the places of business of the importer at which a 
     qualifying drug is initially received after importation.
       ``(B) During the inspections under subparagraph (A), 
     verifying the chain of custody of a statistically significant 
     sample of qualifying drugs from the establishment in which 
     the drug was manufactured to the importer, which shall be 
     accomplished or supplemented by the use of anticounterfeiting 
     or track-and-trace technologies, taking into account the 
     economic and technical feasibility of those technologies, 
     except that a drug that lacks such technologies from the 
     point of manufacture shall not for that reason be excluded 
     from importation by an importer.
       ``(C) Reviewing notices under paragraph (4).
       ``(D) Inspecting as the Secretary determines is necessary 
     the warehouses and other facilities, including records of 
     other parties in the chain of custody of qualifying drugs.
       ``(E) Determining whether the importer is in compliance 
     with all other registration conditions.
       ``(e) Importer Fees.--
       ``(1) Registration fee.--A registration condition is that 
     the importer involved pays to the Secretary a fee of $10,000 
     due on the date on which the importer first submits the 
     registration to the Secretary under subsection (b).
       ``(2) Inspection fee.--A registration condition is that the 
     importer involved pays a fee to the Secretary in accordance 
     with this subsection. Such fee shall be paid not later than 
     October 1 and April 1 of each fiscal year in the amount 
     provided for under paragraph (3).
       ``(3) Amount of inspection fee.--
       ``(A) Aggregate total of fees.--Not later than 30 days 
     before the start of each fiscal year, the Secretary, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of the Treasury, shall establish an aggregate total 
     of fees to be collected under paragraph (2) for importers for 
     that fiscal year that is sufficient, and not more than 
     necessary, to pay the costs for that fiscal year of 
     administering this section with respect to registered 
     importers, including the costs associated with--
       ``(i) inspecting the facilities of registered importers, 
     and of other entities in the chain of custody of a qualifying 
     drug as necessary, under subsection (d)(6);
       ``(ii) developing, implementing, and operating under such 
     subsection an electronic system for submission and review of 
     the notices required under subsection (d)(4) with respect to 
     shipments of qualifying drugs under subsection (a) to assess 
     compliance with all registration conditions when such 
     shipments are offered for import into the United States; and
       ``(iii) inspecting such shipments as necessary, when 
     offered for import into the United States to determine if 
     such a shipment should be refused admission under subsection 
     (g)(5).
       ``(B) Limitation.--Subject to subparagraph (C), the 
     aggregate total of fees collected under paragraph (2) for a 
     fiscal year shall not exceed 2.5 percent of the total price 
     of qualifying drugs imported during that fiscal year into the 
     United States by registered importers under subsection (a).
       ``(C) Total price of drugs.--
       ``(i) Estimate.--For the purposes of complying with the 
     limitation described in subparagraph (B) when establishing 
     under subparagraph (A) the aggregate total of fees to be 
     collected under paragraph (2) for a fiscal year, the 
     Secretary shall estimate the total price of qualifying drugs 
     imported into the United States by registered importers 
     during that fiscal year by adding the total price of 
     qualifying drugs imported by each registered importer during 
     the 6-month period from January 1 through June 30 of the 
     previous fiscal year, as reported to the Secretary by each 
     registered importer under subsection (b)(1)(J).
       ``(ii) Calculation.--Not later than March 1 of the fiscal 
     year that follows the fiscal year for which the estimate 
     under clause (i) is made, the Secretary shall calculate the 
     total price of qualifying drugs imported into the United 
     States by registered importers during that fiscal year by 
     adding the total price of qualifying drugs imported by each 
     registered importer during that fiscal year, as reported to 
     the Secretary by each registered importer under subsection 
     (b)(1)(J).
       ``(iii) Adjustment.--If the total price of qualifying drugs 
     imported into the United States by registered importers 
     during a fiscal year as calculated under clause (ii) is less 
     than the aggregate total of fees collected under paragraph 
     (2) for that fiscal year, the Secretary shall provide for a 
     pro-rata reduction in the fee due from each registered 
     importer on April 1 of the subsequent fiscal year so that the 
     limitation described in subparagraph (B) is observed.
       ``(D) Individual importer fee.--Subject to the limitation 
     described in subparagraph (B), the fee under paragraph (2) to 
     be paid on October 1 and April 1 by an importer shall be an 
     amount that is proportional to a reasonable estimate by the 
     Secretary of the semiannual share of the importer of the 
     volume of qualifying drugs imported by importers under 
     subsection (a).
       ``(4) Use of fees.--
       ``(A) In general.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be credited to the appropriation 
     account for salaries and expenses of the Food and Drug 
     Administration until expended (without fiscal year 
     limitation), and the Secretary may, in consultation with the 
     Secretary of Homeland Security and the Secretary of the 
     Treasury, transfer some proportion of such fees to the 
     appropriation account for salaries and expenses of the Bureau 
     of Customs and Border Protection until expended (without 
     fiscal year limitation).
       ``(B) Availability.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be made available to the Food 
     and Drug Administration.
       ``(C) Sole purpose.--Fees collected by the Secretary under 
     paragraphs (1) and (2) are only available to the Secretary 
     and, if transferred, to the Secretary of Homeland Security, 
     and are for the sole purpose of paying the costs referred to 
     in paragraph (3)(A).
       ``(5) Collection of fees.--In any case where the Secretary 
     does not receive payment of a fee assessed under paragraph 
     (1) or (2) within 30 days after it is due, such fee shall be 
     treated as a claim of the United States Government subject to 
     subchapter II of chapter 37 of title 31, United States Code.
       ``(f) Exporter Fees.--
       ``(1) Registration fee.--A registration condition is that 
     the exporter involved pays to the Secretary a fee of $10,000 
     due on the date on which the exporter first submits that 
     registration to the Secretary under subsection (b).
       ``(2) Inspection fee.--A registration condition is that the 
     exporter involved pays a fee to the Secretary in accordance 
     with this subsection. Such fee shall be paid not later than 
     October 1 and April 1 of each fiscal year in the amount 
     provided for under paragraph (3).
       ``(3) Amount of inspection fee.--
       ``(A) Aggregate total of fees.--Not later than 30 days 
     before the start of each fiscal year, the Secretary, in 
     consultation with the Secretary of Homeland Security and the 
     Secretary of the Treasury, shall establish an aggregate total 
     of fees to be collected under paragraph (2) for exporters for 
     that fiscal year that is sufficient, and not more than 
     necessary, to pay the costs for that fiscal year of 
     administering this section with respect to registered 
     exporters, including the costs associated with--
       ``(i) inspecting the facilities of registered exporters, 
     and of other entities in the chain of custody of a qualifying 
     drug as necessary, under subsection (d)(3);
       ``(ii) developing, implementing, and operating under such 
     subsection a system to screen marks on shipments of 
     qualifying drugs under subsection (a) that indicate 
     compliance with all registration conditions, when such 
     shipments are offered for import into the United States; and
       ``(iii) screening such markings, and inspecting such 
     shipments as necessary, when offered for import into the 
     United States to determine if such a shipment should be 
     refused admission under subsection (g)(5).
       ``(B) Limitation.--Subject to subparagraph (C), the 
     aggregate total of fees collected under paragraph (2) for a 
     fiscal year shall not exceed 2.5 percent of the total price 
     of qualifying drugs imported during that fiscal year into the 
     United States by registered exporters under subsection (a).
       ``(C) Total price of drugs.--
       ``(i) Estimate.--For the purposes of complying with the 
     limitation described in subparagraph (B) when establishing 
     under subparagraph (A) the aggregate total of fees to be 
     collected under paragraph (2) for a fiscal year, the 
     Secretary shall estimate the total price of qualifying drugs 
     imported into the United States by registered exporters 
     during that fiscal year by adding the total price of 
     qualifying drugs exported by each registered exporter during 
     the 6-month period from

[[Page 8231]]

     January 1 through June 30 of the previous fiscal year, as 
     reported to the Secretary by each registered exporter under 
     subsection (b)(1)(I)(iv).
       ``(ii) Calculation.--Not later than March 1 of the fiscal 
     year that follows the fiscal year for which the estimate 
     under clause (i) is made, the Secretary shall calculate the 
     total price of qualifying drugs imported into the United 
     States by registered exporters during that fiscal year by 
     adding the total price of qualifying drugs exported by each 
     registered exporter during that fiscal year, as reported to 
     the Secretary by each registered exporter under subsection 
     (b)(1)(I)(iv).
       ``(iii) Adjustment.--If the total price of qualifying drugs 
     imported into the United States by registered exporters 
     during a fiscal year as calculated under clause (ii) is less 
     than the aggregate total of fees collected under paragraph 
     (2) for that fiscal year, the Secretary shall provide for a 
     pro-rata reduction in the fee due from each registered 
     exporter on April 1 of the subsequent fiscal year so that the 
     limitation described in subparagraph (B) is observed.
       ``(D) Individual exporter fee.--Subject to the limitation 
     described in subparagraph (B), the fee under paragraph (2) to 
     be paid on October 1 and April 1 by an exporter shall be an 
     amount that is proportional to a reasonable estimate by the 
     Secretary of the semiannual share of the exporter of the 
     volume of qualifying drugs exported by exporters under 
     subsection (a).
       ``(4) Use of fees.--
       ``(A) In general.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be credited to the appropriation 
     account for salaries and expenses of the Food and Drug 
     Administration until expended (without fiscal year 
     limitation), and the Secretary may, in consultation with the 
     Secretary of Homeland Security and the Secretary of the 
     Treasury, transfer some proportion of such fees to the 
     appropriation account for salaries and expenses of the Bureau 
     of Customs and Border Protection until expended (without 
     fiscal year limitation).
       ``(B) Availability.--Fees collected by the Secretary under 
     paragraphs (1) and (2) shall be made available to the Food 
     and Drug Administration.
       ``(C) Sole purpose.--Fees collected by the Secretary under 
     paragraphs (1) and (2) are only available to the Secretary 
     and, if transferred, to the Secretary of Homeland Security, 
     and are for the sole purpose of paying the costs referred to 
     in paragraph (3)(A).
       ``(5) Collection of fees.--In any case where the Secretary 
     does not receive payment of a fee assessed under paragraph 
     (1) or (2) within 30 days after it is due, such fee shall be 
     treated as a claim of the United States Government subject to 
     subchapter II of chapter 37 of title 31, United States Code.
       ``(g) Compliance With Section 801(a).--
       ``(1) In general.--A registration condition is that each 
     qualifying drug exported under subsection (a) by the 
     registered exporter involved or imported under subsection (a) 
     by the registered importer involved is in compliance with the 
     standards referred to in section 801(a) regarding admission 
     of the drug into the United States, subject to paragraphs 
     (2), (3), and (4).
       ``(2) Section 505; approval status.--
       ``(A) In general.--A qualifying drug that is imported or 
     offered for import under subsection (a) shall comply with the 
     conditions established in the approved application under 
     section 505(b) for the U.S. label drug as described under 
     this subsection.
       ``(B) Notice by manufacturer; general provisions.--
       ``(i) In general.--The person that manufactures a 
     qualifying drug that is, or will be, introduced for 
     commercial distribution in a permitted country shall in 
     accordance with this paragraph submit to the Secretary a 
     notice that--

       ``(I) includes each difference in the qualifying drug from 
     a condition established in the approved application for the 
     U.S. label drug beyond--

       ``(aa) the variations provided for in the application; and
       ``(bb) any difference in labeling (except ingredient 
     labeling); or

       ``(II) states that there is no difference in the qualifying 
     drug from a condition established in the approved application 
     for the U.S. label drug beyond--

       ``(aa) the variations provided for in the application; and
       ``(bb) any difference in labeling (except ingredient 
     labeling).
       ``(ii) Information in notice.--A notice under clause (i)(I) 
     shall include the information that the Secretary may require 
     under section 506A, any additional information the Secretary 
     may require (which may include data on bioequivalence if such 
     data are not required under section 506A), and, with respect 
     to the permitted country that approved the qualifying drug 
     for commercial distribution, or with respect to which such 
     approval is sought, include the following:

       ``(I) The date on which the qualifying drug with such 
     difference was, or will be, introduced for commercial 
     distribution in the permitted country.
       ``(II) Information demonstrating that the person submitting 
     the notice has also notified the government of the permitted 
     country in writing that the person is submitting to the 
     Secretary a notice under clause (i)(I), which notice 
     describes the difference in the qualifying drug from a 
     condition established in the approved application for the 
     U.S. label drug.
       ``(III) The information that the person submitted or will 
     submit to the government of the permitted country for 
     purposes of obtaining approval for commercial distribution of 
     the drug in the country which, if in a language other than 
     English, shall be accompanied by an English translation 
     verified to be complete and accurate, with the name, address, 
     and a brief statement of the qualifications of the person 
     that made the translation.

       ``(iii) Certifications.--The chief executive officer and 
     the chief medical officer of the manufacturer involved shall 
     each certify in the notice under clause (i) that--

       ``(I) the information provided in the notice is complete 
     and true; and
       ``(II) a copy of the notice has been provided to the 
     Federal Trade Commission and to the State attorneys general.

       ``(iv) Fee.--

       ``(I) In general.--If a notice submitted under clause (i) 
     includes a difference that would, under section 506A, require 
     the submission of a supplemental application if made as a 
     change to the U.S. label drug, the person that submits the 
     notice shall pay to the Secretary a fee in the same amount as 
     would apply if the person were paying a fee pursuant to 
     section 736(a)(1)(A)(ii). Fees collected by the Secretary 
     under the preceding sentence are available only to the 
     Secretary and are for the sole purpose of paying the costs of 
     reviewing notices submitted under clause (i).
       ``(II) Fee amount for certain years.--If no fee amount is 
     in effect under section 736(a)(1)(A)(ii) for a fiscal year, 
     then the amount paid by a person under subclause (I) shall--

       ``(aa) for the first fiscal year in which no fee amount 
     under such section in effect, be equal to the fee amount 
     under section 736(a)(1)(A)(ii) for the most recent fiscal 
     year for which such section was in effect, adjusted in 
     accordance with section 736(c); and
       ``(bb) for each subsequent fiscal year in which no fee 
     amount under such section is effect, be equal to the 
     applicable fee amount for the previous fiscal year, adjusted 
     in accordance with section 736(c).
       ``(v) Timing of submission of notices.--

       ``(I) Prior approval notices.--A notice under clause (i) to 
     which subparagraph (C) applies shall be submitted to the 
     Secretary not later than 120 days before the qualifying drug 
     with the difference is introduced for commercial distribution 
     in a permitted country, unless the country requires that 
     distribution of the qualifying drug with the difference begin 
     less than 120 days after the country requires the difference.
       ``(II) Other approval notices.--A notice under clause (i) 
     to which subparagraph (D) applies shall be submitted to the 
     Secretary not later than the day on which the qualifying drug 
     with the difference is introduced for commercial distribution 
     in a permitted country.
       ``(III) Other notices.--A notice under clause (i) to which 
     subparagraph (E) applies shall be submitted to the Secretary 
     on the date that the qualifying drug is first introduced for 
     commercial distribution in a permitted country and annually 
     thereafter.

       ``(vi) Review by secretary.--

       ``(I) In general.--In this paragraph, the difference in a 
     qualifying drug that is submitted in a notice under clause 
     (i) from the U.S. label drug shall be treated by the 
     Secretary as if it were a manufacturing change to the U.S. 
     label drug under section 506A.
       ``(II) Standard of review.--Except as provided in subclause 
     (III), the Secretary shall review and approve or disapprove 
     the difference in a notice submitted under clause (i), if 
     required under section 506A, using the safe and effective 
     standard for approving or disapproving a manufacturing change 
     under section 506A.
       ``(III) Bioequivalence.--If the Secretary would approve the 
     difference in a notice submitted under clause (i) using the 
     safe and effective standard under section 506A and if the 
     Secretary determines that the qualifying drug is not 
     bioequivalent to the U.S. label drug, the Secretary shall--

       ``(aa) include in the labeling provided under paragraph (3) 
     a prominent advisory that the qualifying drug is safe and 
     effective but is not bioequivalent to the U.S. label drug if 
     the Secretary determines that such an advisory is necessary 
     for health care practitioners and patients to use the 
     qualifying drug safely and effectively; or
       ``(bb) decline to approve the difference if the Secretary 
     determines that the availability of both the qualifying drug 
     and the U.S. label drug would pose a threat to the public 
     health.

       ``(IV) Review by the secretary.--The Secretary shall review 
     and approve or disapprove the difference in a notice 
     submitted under clause (i), if required under section 506A, 
     not later than 120 days after the date on which the notice is 
     submitted.
       ``(V) Establishment inspection.--If review of such 
     difference would require an inspection of the establishment 
     in which the qualifying drug is manufactured--

       ``(aa) such inspection by the Secretary shall be 
     authorized; and

[[Page 8232]]

       ``(bb) the Secretary may rely on a satisfactory report of a 
     good manufacturing practice inspection of the establishment 
     from a permitted country whose regulatory system the 
     Secretary recognizes as equivalent under a mutual recognition 
     agreement, as provided under section 510(i)(3), section 803, 
     or part 26 of title 21, Code of Federal Regulations (or any 
     corresponding successor rule or regulation).
       ``(vii) Publication of information on notices.--

       ``(I) In general.--Through the Internet website of the Food 
     and Drug Administration and a toll-free telephone number, the 
     Secretary shall readily make available to the public a list 
     of notices submitted under clause (i).
       ``(II) Contents.--The list under subclause (I) shall 
     include the date on which a notice is submitted and whether--

       ``(aa) a notice is under review;
       ``(bb) the Secretary has ordered that importation of the 
     qualifying drug from a permitted country cease; or
       ``(cc) the importation of the drug is permitted under 
     subsection (a).

       ``(III) Update.--The Secretary shall promptly update the 
     Internet website with any changes to the list.

       ``(C) Notice; drug difference requiring prior approval.--In 
     the case of a notice under subparagraph (B)(i) that includes 
     a difference that would, under subsection (c) or (d)(3)(B)(i) 
     of section 506A, require the approval of a supplemental 
     application before the difference could be made to the U.S. 
     label drug the following shall occur:
       ``(i) Promptly after the notice is submitted, the Secretary 
     shall notify registered exporters, registered importers, the 
     Federal Trade Commission, and the State attorneys general 
     that the notice has been submitted with respect to the 
     qualifying drug involved.
       ``(ii) If the Secretary has not made a determination 
     whether such a supplemental application regarding the U.S. 
     label drug would be approved or disapproved by the date on 
     which the qualifying drug involved is to be introduced for 
     commercial distribution in a permitted country, the Secretary 
     shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country not begin until the 
     Secretary completes review of the notice; and
       ``(II) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the order.

       ``(iii) If the Secretary determines that such a 
     supplemental application regarding the U.S. label drug would 
     not be approved, the Secretary shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country cease, or provide that an 
     order under clause (ii), if any, remains in effect;
       ``(II) notify the permitted country that approved the 
     qualifying drug for commercial distribution of the 
     determination; and
       ``(III) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(iv) If the Secretary determines that such a supplemental 
     application regarding the U.S. label drug would be approved, 
     the Secretary shall--

       ``(I) vacate the order under clause (ii), if any;
       ``(II) consider the difference to be a variation provided 
     for in the approved application for the U.S. label drug;
       ``(III) permit importation of the qualifying drug under 
     subsection (a); and
       ``(IV) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(D) Notice; drug difference not requiring prior 
     approval.--In the case of a notice under subparagraph (B)(i) 
     that includes a difference that would, under section 
     506A(d)(3)(B)(ii), not require the approval of a supplemental 
     application before the difference could be made to the U.S. 
     label drug the following shall occur:
       ``(i) During the period in which the notice is being 
     reviewed by the Secretary, the authority under this 
     subsection to import the qualifying drug involved continues 
     in effect.
       ``(ii) If the Secretary determines that such a supplemental 
     application regarding the U.S. label drug would not be 
     approved, the Secretary shall--

       ``(I) order that the importation of the qualifying drug 
     involved from the permitted country cease;
       ``(II) notify the permitted country that approved the 
     qualifying drug for commercial distribution of the 
     determination; and
       ``(III) promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of the determination.

       ``(iii) If the Secretary determines that such a 
     supplemental application regarding the U.S. label drug would 
     be approved, the difference shall be considered to be a 
     variation provided for in the approved application for the 
     U.S. label drug.
       ``(E) Notice; drug difference not requiring approval; no 
     difference.--In the case of a notice under subparagraph 
     (B)(i) that includes a difference for which, under section 
     506A(d)(1)(A), a supplemental application would not be 
     required for the difference to be made to the U.S. label 
     drug, or that states that there is no difference, the 
     Secretary--
       ``(i) shall consider such difference to be a variation 
     provided for in the approved application for the U.S. label 
     drug;
       ``(ii) may not order that the importation of the qualifying 
     drug involved cease; and
       ``(iii) shall promptly notify registered exporters and 
     registered importers.
       ``(F) Differences in active ingredient, route of 
     administration, dosage form, or strength.--
       ``(i) In general.--A person who manufactures a drug 
     approved under section 505(b) shall submit an application 
     under section 505(b) for approval of another drug that is 
     manufactured for distribution in a permitted country by or 
     for the person that manufactures the drug approved under 
     section 505(b) if--

       ``(I) there is no qualifying drug in commercial 
     distribution in permitted countries whose combined population 
     represents at least 50 percent of the total population of all 
     permitted countries with the same active ingredient or 
     ingredients, route of administration, dosage form, and 
     strength as the drug approved under section 505(b); and
       ``(II) each active ingredient of the other drug is related 
     to an active ingredient of the drug approved under section 
     505(b), as defined in clause (v).

       ``(ii) Application under section 505(b).--The application 
     under section 505(b) required under clause (i) shall--

       ``(I) request approval of the other drug for the indication 
     or indications for which the drug approved under section 
     505(b) is labeled;
       ``(II) include the information that the person submitted to 
     the government of the permitted country for purposes of 
     obtaining approval for commercial distribution of the other 
     drug in that country, which if in a language other than 
     English, shall be accompanied by an English translation 
     verified to be complete and accurate, with the name, address, 
     and a brief statement of the qualifications of the person 
     that made the translation;
       ``(III) include a right of reference to the application for 
     the drug approved under section 505(b); and
       ``(IV) include such additional information as the Secretary 
     may require.

       ``(iii) Timing of submission of application.--An 
     application under section 505(b) required under clause (i) 
     shall be submitted to the Secretary not later than the day on 
     which the information referred to in clause (ii)(II) is 
     submitted to the government of the permitted country.
       ``(iv) Notice of decision on application.--The Secretary 
     shall promptly notify registered exporters, registered 
     importers, the Federal Trade Commission, and the State 
     attorneys general of a determination to approve or to 
     disapprove an application under section 505(b) required under 
     clause (i).
       ``(v) Related active ingredients.--For purposes of clause 
     (i)(II), 2 active ingredients are related if they are--

       ``(I) the same; or
       ``(II) different salts, esters, or complexes of the same 
     moiety.

       ``(3) Section 502; labeling.--
       ``(A) Importation by registered importer.--
       ``(i) In general.--In the case of a qualifying drug that is 
     imported or offered for import by a registered importer, such 
     drug shall be considered to be in compliance with section 502 
     and the labeling requirements under the approved application 
     for the U.S. label drug if the qualifying drug bears--

       ``(I) a copy of the labeling approved for the U.S. label 
     drug under section 505, without regard to whether the copy 
     bears any trademark involved;
       ``(II) the name of the manufacturer and location of the 
     manufacturer;
       ``(III) the lot number assigned by the manufacturer;
       ``(IV) the name, location, and registration number of the 
     importer; and
       ``(V) the National Drug Code number assigned to the 
     qualifying drug by the Secretary.

       ``(ii) Request for copy of the labeling.--The Secretary 
     shall provide such copy to the registered importer involved, 
     upon request of the importer.
       ``(iii) Requested labeling.--The labeling provided by the 
     Secretary under clause (ii) shall--

       ``(I) include the established name, as defined in section 
     502(e)(3), for each active ingredient in the qualifying drug;
       ``(II) not include the proprietary name of the U.S. label 
     drug or any active ingredient thereof;
       ``(III) if required under paragraph (2)(B)(vi)(III), a 
     prominent advisory that the qualifying drug is safe and 
     effective but not bioequivalent to the U.S. label drug; and
       ``(IV) if the inactive ingredients of the qualifying drug 
     are different from the inactive ingredients for the U.S. 
     label drug, include--

       ``(aa) a prominent notice that the ingredients of the 
     qualifying drug differ from the ingredients of the U.S. label 
     drug and that the qualifying drug must be dispensed with an 
     advisory to people with allergies about this difference and a 
     list of ingredients; and
       ``(bb) a list of the ingredients of the qualifying drug as 
     would be required under section 502(e).

[[Page 8233]]

       ``(B) Importation by individual.--
       ``(i) In general.--In the case of a qualifying drug that is 
     imported or offered for import by a registered exporter to an 
     individual, such drug shall be considered to be in compliance 
     with section 502 and the labeling requirements under the 
     approved application for the U.S. label drug if the packaging 
     and labeling of the qualifying drug complies with all 
     applicable regulations promulgated under sections 3 and 4 of 
     the Poison Prevention Packaging Act of 1970 (15 U.S.C. 1471 
     et seq.) and the labeling of the qualifying drug includes--

       ``(I) directions for use by the consumer;
       ``(II) the lot number assigned by the manufacturer;
       ``(III) the name and registration number of the exporter;
       ``(IV) if required under paragraph (2)(B)(vi)(III), a 
     prominent advisory that the drug is safe and effective but 
     not bioequivalent to the U.S. label drug;
       ``(V) if the inactive ingredients of the drug are different 
     from the inactive ingredients for the U.S. label drug--

       ``(aa) a prominent advisory that persons with an allergy 
     should check the ingredient list of the drug because the 
     ingredients of the drug differ from the ingredients of the 
     U.S. label drug; and
       ``(bb) a list of the ingredients of the drug as would be 
     required under section 502(e); and

       ``(VI) a copy of any special labeling that would be 
     required by the Secretary had the U.S. label drug been 
     dispensed by a pharmacist in the United States, without 
     regard to whether the special labeling bears any trademark 
     involved.

       ``(ii) Packaging.--A qualifying drug offered for import to 
     an individual by an exporter under this section that is 
     packaged in a unit-of-use container (as those items are 
     defined in the United States Pharmacopeia and National 
     Formulary) shall not be repackaged, provided that--

       ``(I) the packaging complies with all applicable 
     regulations under sections 3 and 4 of the Poison Prevention 
     Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or
       ``(II) the consumer consents to waive the requirements of 
     such Act, after being informed that the packaging does not 
     comply with such Act and that the exporter will provide the 
     drug in packaging that is compliant at no additional cost.

       ``(iii) Request for copy of special labeling and ingredient 
     list.--The Secretary shall provide to the registered exporter 
     involved a copy of the special labeling, the advisory, and 
     the ingredient list described under clause (i), upon request 
     of the exporter.
       ``(iv) Requested labeling and ingredient list.--The 
     labeling and ingredient list provided by the Secretary under 
     clause (iii) shall--

       ``(I) include the established name, as defined in section 
     502(e)(3), for each active ingredient in the drug; and
       ``(II) not include the proprietary name of the U.S. label 
     drug or any active ingredient thereof.

       ``(4) Section 501; adulteration.--A qualifying drug that is 
     imported or offered for import under subsection (a) shall be 
     considered to be in compliance with section 501 if the drug 
     is in compliance with subsection (c).
       ``(5) Standards for refusing admission.--A drug exported 
     under subsection (a) from a registered exporter or imported 
     by a registered importer may be refused admission into the 
     United States if 1 or more of the following applies:
       ``(A) The drug is not a qualifying drug.
       ``(B) A notice for the drug required under paragraph (2)(B) 
     has not been submitted to the Secretary.
       ``(C) The Secretary has ordered that importation of the 
     drug from the permitted country cease under subparagraph (C) 
     or (D) of paragraph (2).
       ``(D) The drug does not comply with paragraph (3) or (4).
       ``(E) The shipping container appears damaged in a way that 
     may affect the strength, quality, or purity of the drug.
       ``(F) The Secretary becomes aware that--
       ``(i) the drug may be counterfeit;
       ``(ii) the drug may have been prepared, packed, or held 
     under insanitary conditions; or
       ``(iii) the methods used in, or the facilities or controls 
     used for, the manufacturing, processing, packing, or holding 
     of the drug do not conform to good manufacturing practice.
       ``(G) The Secretary has obtained an injunction under 
     section 302 that prohibits the distribution of the drug in 
     interstate commerce.
       ``(H) The Secretary has under section 505(e) withdrawn 
     approval of the drug.
       ``(I) The manufacturer of the drug has instituted a recall 
     of the drug.
       ``(J) If the drug is imported or offered for import by a 
     registered importer without submission of a notice in 
     accordance with subsection (d)(4).
       ``(K) If the drug is imported or offered for import from a 
     registered exporter to an individual and 1 or more of the 
     following applies:
       ``(i) The shipping container for such drug does not bear 
     the markings required under subsection (d)(2).
       ``(ii) The markings on the shipping container appear to be 
     counterfeit.
       ``(iii) The shipping container or markings appear to have 
     been tampered with.
       ``(h) Exporter Licensure in Permitted Country.--A 
     registration condition is that the exporter involved agrees 
     that a qualifying drug will be exported to an individual only 
     if the Secretary has verified that--
       ``(1) the exporter is authorized under the law of the 
     permitted country in which the exporter is located to 
     dispense prescription drugs; and
       ``(2) the exporter employs persons that are licensed under 
     the law of the permitted country in which the exporter is 
     located to dispense prescription drugs in sufficient number 
     to dispense safely the drugs exported by the exporter to 
     individuals, and the exporter assigns to those persons 
     responsibility for dispensing such drugs to individuals.
       ``(i) Individuals; Conditions for Importation.--
       ``(1) In general.--For purposes of subsection (a)(2)(B), 
     the importation of a qualifying drug by an individual is in 
     accordance with this subsection if the following conditions 
     are met:
       ``(A) The drug is accompanied by a copy of a prescription 
     for the drug, which prescription--
       ``(i) is valid under applicable Federal and State laws; and
       ``(ii) was issued by a practitioner who, under the law of a 
     State of which the individual is a resident, or in which the 
     individual receives care from the practitioner who issues the 
     prescription, is authorized to administer prescription drugs.
       ``(B) The drug is accompanied by a copy of the 
     documentation that was required under the law or regulations 
     of the permitted country in which the exporter is located, as 
     a condition of dispensing the drug to the individual.
       ``(C) The copies referred to in subparagraphs (A)(i) and 
     (B) are marked in a manner sufficient--
       ``(i) to indicate that the prescription, and the equivalent 
     document in the permitted country in which the exporter is 
     located, have been filled; and
       ``(ii) to prevent a duplicative filling by another 
     pharmacist.
       ``(D) The individual has provided to the registered 
     exporter a complete list of all drugs used by the individual 
     for review by the individuals who dispense the drug.
       ``(E) The quantity of the drug does not exceed a 90-day 
     supply.
       ``(F) The drug is not an ineligible subpart H drug. For 
     purposes of this section, a prescription drug is an 
     `ineligible subpart H drug' if the drug was approved by the 
     Secretary under subpart H of part 314 of title 21, Code of 
     Federal Regulations (relating to accelerated approval), with 
     restrictions under section 520 of such part to assure safe 
     use, and the Secretary has published in the Federal Register 
     a notice that the Secretary has determined that good cause 
     exists to prohibit the drug from being imported pursuant to 
     this subsection.
       ``(2) Notice regarding drug refused admission.--If a 
     registered exporter ships a drug to an individual pursuant to 
     subsection (a)(2)(B) and the drug is refused admission to the 
     United States, a written notice shall be sent to the 
     individual and to the exporter that informs the individual 
     and the exporter of such refusal and the reason for the 
     refusal.
       ``(j) Maintenance of Records and Samples.--
       ``(1) In general.--A registration condition is that the 
     importer or exporter involved shall--
       ``(A) maintain records required under this section for not 
     less than 2 years; and
       ``(B) maintain samples of each lot of a qualifying drug 
     required under this section for not more than 2 years.
       ``(2) Place of record maintenance.--The records described 
     under paragraph (1) shall be maintained--
       ``(A) in the case of an importer, at the place of business 
     of the importer at which the importer initially receives the 
     qualifying drug after importation; or
       ``(B) in the case of an exporter, at the facility from 
     which the exporter ships the qualifying drug to the United 
     States.
       ``(k) Drug Recalls.--
       ``(1) Manufacturers.--A person that manufactures a 
     qualifying drug imported from a permitted country under this 
     section shall promptly inform the Secretary--
       ``(A) if the drug is recalled or withdrawn from the market 
     in a permitted country;
       ``(B) how the drug may be identified, including lot number; 
     and
       ``(C) the reason for the recall or withdrawal.
       ``(2) Secretary.--With respect to each permitted country, 
     the Secretary shall--
       ``(A) enter into an agreement with the government of the 
     country to receive information about recalls and withdrawals 
     of qualifying drugs in the country; or
       ``(B) monitor recalls and withdrawals of qualifying drugs 
     in the country using any information that is available to the 
     public in any media.
       ``(3) Notice.--The Secretary may notify, as appropriate, 
     registered exporters, registered importers, wholesalers, 
     pharmacies, or the public of a recall or withdrawal of a 
     qualifying drug in a permitted country.

[[Page 8234]]

       ``(l) Drug Labeling and Packaging.--
       ``(1) In general.--When a qualifying drug that is imported 
     into the United States by an importer under subsection (a) is 
     dispensed by a pharmacist to an individual, the pharmacist 
     shall provide that the packaging and labeling of the drug 
     complies with all applicable regulations promulgated under 
     sections 3 and 4 of the Poison Prevention Packaging Act of 
     1970 (15 U.S.C. 1471 et seq.) and shall include with any 
     other labeling provided to the individual the following:
       ``(A) The lot number assigned by the manufacturer.
       ``(B) The name and registration number of the importer.
       ``(C) If required under paragraph (2)(B)(vi)(III) of 
     subsection (g), a prominent advisory that the drug is safe 
     and effective but not bioequivalent to the U.S. label drug.
       ``(D) If the inactive ingredients of the drug are different 
     from the inactive ingredients for the U.S. label drug--
       ``(i) a prominent advisory that persons with allergies 
     should check the ingredient list of the drug because the 
     ingredients of the drug differ from the ingredients of the 
     U.S. label drug; and
       ``(ii) a list of the ingredients of the drug as would be 
     required under section 502(e).
       ``(2) Packaging.--A qualifying drug that is packaged in a 
     unit-of-use container (as those terms are defined in the 
     United States Pharmacopeia and National Formulary) shall not 
     be repackaged, provided that--
       ``(A) the packaging complies with all applicable 
     regulations under sections 3 and 4 of the Poison Prevention 
     Packaging Act of 1970 (15 U.S.C. 1471 et seq.); or
       ``(B) the consumer consents to waive the requirements of 
     such Act, after being informed that the packaging does not 
     comply with such Act and that the pharmacist will provide the 
     drug in packaging that is compliant at no additional cost.
       ``(m) Charitable Contributions.--Notwithstanding any other 
     provision of this section, this section does not authorize 
     the importation into the United States of a qualifying drug 
     donated or otherwise supplied for free or at nominal cost by 
     the manufacturer of the drug to a charitable or humanitarian 
     organization, including the United Nations and affiliates, or 
     to a government of a foreign country.
       ``(n) Unfair and Discriminatory Acts and Practices.--
       ``(1) In general.--It is unlawful for a manufacturer, 
     directly or indirectly (including by being a party to a 
     licensing agreement or other agreement), to--
       ``(A) discriminate by charging a higher price for a 
     prescription drug sold to a registered exporter or other 
     person in a permitted country that exports a qualifying drug 
     to the United States under this section than the price that 
     is charged, inclusive of rebates or other incentives to the 
     permitted country or other person, to another person that is 
     in the same country and that does not export a qualifying 
     drug into the United States under this section;
       ``(B) discriminate by charging a higher price for a 
     prescription drug sold to a registered importer or other 
     person that distributes, sells, or uses a qualifying drug 
     imported into the United States under this section than the 
     price that is charged to another person in the United States 
     that does not import a qualifying drug under this section, or 
     that does not distribute, sell, or use such a drug;
       ``(C) discriminate by denying, restricting, or delaying 
     supplies of a prescription drug to a registered exporter or 
     other person in a permitted country that exports a qualifying 
     drug to the United States under this section or to a 
     registered importer or other person that distributes, sells, 
     or uses a qualifying drug imported into the United States 
     under this section;
       ``(D) discriminate by publicly, privately, or otherwise 
     refusing to do business with a registered exporter or other 
     person in a permitted country that exports a qualifying drug 
     to the United States under this section or with a registered 
     importer or other person that distributes, sells, or uses a 
     qualifying drug imported into the United States under this 
     section;
       ``(E) knowingly fail to submit a notice under subsection 
     (g)(2)(B)(i), knowingly fail to submit such a notice on or 
     before the date specified in subsection (g)(2)(B)(v) or as 
     otherwise required under paragraphs (3), (4), and (5) of 
     section 1304(e) of the Pharmaceutical Market Access and Drug 
     Safety Act of 2010, knowingly submit such a notice that makes 
     a materially false, fictitious, or fraudulent statement, or 
     knowingly fail to provide promptly any information requested 
     by the Secretary to review such a notice;
       ``(F) knowingly fail to submit an application required 
     under subsection (g)(2)(F), knowingly fail to submit such an 
     application on or before the date specified in subsection 
     (g)(2)(F)(iii), knowingly submit such an application that 
     makes a materially false, fictitious, or fraudulent 
     statement, or knowingly fail to provide promptly any 
     information requested by the Secretary to review such an 
     application;
       ``(G) cause there to be a difference (including a 
     difference in active ingredient, route of administration, 
     dosage form, strength, formulation, manufacturing 
     establishment, manufacturing process, or person that 
     manufactures the drug) between a prescription drug for 
     distribution in the United States and the drug for 
     distribution in a permitted country;
       ``(H) refuse to allow an inspection authorized under this 
     section of an establishment that manufactures a qualifying 
     drug that is, or will be, introduced for commercial 
     distribution in a permitted country;
       ``(I) fail to conform to the methods used in, or the 
     facilities used for, the manufacturing, processing, packing, 
     or holding of a qualifying drug that is, or will be, 
     introduced for commercial distribution in a permitted country 
     to good manufacturing practice under this Act;
       ``(J) become a party to a licensing agreement or other 
     agreement related to a qualifying drug that fails to provide 
     for compliance with all requirements of this section with 
     respect to such drug;
       ``(K) enter into a contract that restricts, prohibits, or 
     delays the importation of a qualifying drug under this 
     section;
       ``(L) engage in any other action to restrict, prohibit, or 
     delay the importation of a qualifying drug under this 
     section; or
       ``(M) engage in any other action that the Federal Trade 
     Commission determines to discriminate against a person that 
     engages or attempts to engage in the importation of a 
     qualifying drug under this section.
       ``(2) Referral of potential violations.--The Secretary 
     shall promptly refer to the Federal Trade Commission each 
     potential violation of subparagraph (E), (F), (G), (H), or 
     (I) of paragraph (1) that becomes known to the Secretary.
       ``(3) Affirmative defense.--
       ``(A) Discrimination.--It shall be an affirmative defense 
     to a charge that a manufacturer has discriminated under 
     subparagraph (A), (B), (C), (D), or (M) of paragraph (1) that 
     the higher price charged for a prescription drug sold to a 
     person, the denial, restriction, or delay of supplies of a 
     prescription drug to a person, the refusal to do business 
     with a person, or other discriminatory activity against a 
     person, is not based, in whole or in part, on--
       ``(i) the person exporting or importing a qualifying drug 
     into the United States under this section; or
       ``(ii) the person distributing, selling, or using a 
     qualifying drug imported into the United States under this 
     section.
       ``(B) Drug differences.--It shall be an affirmative defense 
     to a charge that a manufacturer has caused there to be a 
     difference described in subparagraph (G) of paragraph (1) 
     that--
       ``(i) the difference was required by the country in which 
     the drug is distributed;
       ``(ii) the Secretary has determined that the difference was 
     necessary to improve the safety or effectiveness of the drug;
       ``(iii) the person manufacturing the drug for distribution 
     in the United States has given notice to the Secretary under 
     subsection (g)(2)(B)(i) that the drug for distribution in the 
     United States is not different from a drug for distribution 
     in permitted countries whose combined population represents 
     at least 50 percent of the total population of all permitted 
     countries; or
       ``(iv) the difference was not caused, in whole or in part, 
     for the purpose of restricting importation of the drug into 
     the United States under this section.
       ``(4) Effect of subsection.--
       ``(A) Sales in other countries.--This subsection applies 
     only to the sale or distribution of a prescription drug in a 
     country if the manufacturer of the drug chooses to sell or 
     distribute the drug in the country. Nothing in this 
     subsection shall be construed to compel the manufacturer of a 
     drug to distribute or sell the drug in a country.
       ``(B) Discounts to insurers, health plans, pharmacy benefit 
     managers, and covered entities.--Nothing in this subsection 
     shall be construed to--
       ``(i) prevent or restrict a manufacturer of a prescription 
     drug from providing discounts to an insurer, health plan, 
     pharmacy benefit manager in the United States, or covered 
     entity in the drug discount program under section 340B of the 
     Public Health Service Act (42 U.S.C. 256b) in return for 
     inclusion of the drug on a formulary;
       ``(ii) require that such discounts be made available to 
     other purchasers of the prescription drug; or
       ``(iii) prevent or restrict any other measures taken by an 
     insurer, health plan, or pharmacy benefit manager to 
     encourage consumption of such prescription drug.
       ``(C) Charitable contributions.--Nothing in this subsection 
     shall be construed to--
       ``(i) prevent a manufacturer from donating a prescription 
     drug, or supplying a prescription drug at nominal cost, to a 
     charitable or humanitarian organization, including the United 
     Nations and affiliates, or to a government of a foreign 
     country; or
       ``(ii) apply to such donations or supplying of a 
     prescription drug.
       ``(5) Enforcement.--
       ``(A) Unfair or deceptive act or practice.--A violation of 
     this subsection shall be treated as a violation of a rule 
     defining an unfair or deceptive act or practice prescribed 
     under section 18(a)(1)(B) of the Federal Trade Commission Act 
     (15 U.S.C. 57a(a)(1)(B)).
       ``(B) Actions by the commission.--The Federal Trade 
     Commission--

[[Page 8235]]

       ``(i) shall enforce this subsection in the same manner, by 
     the same means, and with the same jurisdiction, powers, and 
     duties as though all applicable terms and provisions of the 
     Federal Trade Commission Act (15 U.S.C. 41 et seq.) were 
     incorporated into and made a part of this section; and
       ``(ii) may seek monetary relief threefold the damages 
     sustained, in addition to any other remedy available to the 
     Federal Trade Commission under the Federal Trade Commission 
     Act (15 U.S.C. 41 et seq.).
       ``(6) Actions by states.--
       ``(A) In general.--
       ``(i) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State have been adversely affected by 
     any manufacturer that violates paragraph (1), the attorney 
     general of a State may bring a civil action on behalf of the 
     residents of the State, and persons doing business in the 
     State, in a district court of the United States of 
     appropriate jurisdiction to--

       ``(I) enjoin that practice;
       ``(II) enforce compliance with this subsection;
       ``(III) obtain damages, restitution, or other compensation 
     on behalf of residents of the State and persons doing 
     business in the State, including threefold the damages; or
       ``(IV) obtain such other relief as the court may consider 
     to be appropriate.

       ``(ii) Notice.--

       ``(I) In general.--Before filing an action under clause 
     (i), the attorney general of the State involved shall provide 
     to the Federal Trade Commission--

       ``(aa) written notice of that action; and
       ``(bb) a copy of the complaint for that action.

       ``(II) Exemption.--Subclause (I) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this paragraph, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subclause before filing of the action. In 
     such case, the attorney general of a State shall provide 
     notice and a copy of the complaint to the Federal Trade 
     Commission at the same time as the attorney general files the 
     action.

       ``(B) Intervention.--
       ``(i) In general.--On receiving notice under subparagraph 
     (A)(ii), the Federal Trade Commission shall have the right to 
     intervene in the action that is the subject of the notice.
       ``(ii) Effect of intervention.--If the Federal Trade 
     Commission intervenes in an action under subparagraph (A), it 
     shall have the right--

       ``(I) to be heard with respect to any matter that arises in 
     that action; and
       ``(II) to file a petition for appeal.

       ``(C) Construction.--For purposes of bringing any civil 
     action under subparagraph (A), nothing in this subsection 
     shall be construed to prevent an attorney general of a State 
     from exercising the powers conferred on the attorney general 
     by the laws of that State to--
       ``(i) conduct investigations;
       ``(ii) administer oaths or affirmations; or
       ``(iii) compel the attendance of witnesses or the 
     production of documentary and other evidence.
       ``(D) Actions by the commission.--In any case in which an 
     action is instituted by or on behalf of the Federal Trade 
     Commission for a violation of paragraph (1), a State may not, 
     during the pendency of that action, institute an action under 
     subparagraph (A) for the same violation against any defendant 
     named in the complaint in that action.
       ``(E) Venue.--Any action brought under subparagraph (A) may 
     be brought in the district court of the United States that 
     meets applicable requirements relating to venue under section 
     1391 of title 28, United States Code.
       ``(F) Service of process.--In an action brought under 
     subparagraph (A), process may be served in any district in 
     which the defendant--
       ``(i) is an inhabitant; or
       ``(ii) may be found.
       ``(G) Measurement of damages.--In any action under this 
     paragraph to enforce a cause of action under this subsection 
     in which there has been a determination that a defendant has 
     violated a provision of this subsection, damages may be 
     proved and assessed in the aggregate by statistical or 
     sampling methods, by the computation of illegal overcharges 
     or by such other reasonable system of estimating aggregate 
     damages as the court in its discretion may permit without the 
     necessity of separately proving the individual claim of, or 
     amount of damage to, persons on whose behalf the suit was 
     brought.
       ``(H) Exclusion on duplicative relief.--The district court 
     shall exclude from the amount of monetary relief awarded in 
     an action under this paragraph brought by the attorney 
     general of a State any amount of monetary relief which 
     duplicates amounts which have been awarded for the same 
     injury.
       ``(7) Effect on antitrust laws.--Nothing in this subsection 
     shall be construed to modify, impair, or supersede the 
     operation of the antitrust laws. For the purpose of this 
     subsection, the term `antitrust laws' has the meaning given 
     it in the first section of the Clayton Act, except that it 
     includes section 5 of the Federal Trade Commission Act to the 
     extent that such section 5 applies to unfair methods of 
     competition.
       ``(8) Manufacturer.--In this subsection, the term 
     `manufacturer' means any entity, including any affiliate or 
     licensee of that entity, that is engaged in--
       ``(A) the production, preparation, propagation, 
     compounding, conversion, or processing of a prescription 
     drug, either directly or indirectly by extraction from 
     substances of natural origin, or independently by means of 
     chemical synthesis, or by a combination of extraction and 
     chemical synthesis; or
       ``(B) the packaging, repackaging, labeling, relabeling, or 
     distribution of a prescription drug.''.
       (b) Prohibited Acts.--The Federal Food, Drug, and Cosmetic 
     Act is amended--
       (1) in section 301 (21 U.S.C. 331), by striking paragraph 
     (aa) and inserting the following:
       ``(aa)(1) The sale or trade by a pharmacist, or by a 
     business organization of which the pharmacist is a part, of a 
     qualifying drug that under section 804(a)(2)(A) was imported 
     by the pharmacist, other than--
       ``(A) a sale at retail made pursuant to dispensing the drug 
     to a customer of the pharmacist or organization; or
       ``(B) a sale or trade of the drug to a pharmacy or a 
     wholesaler registered to import drugs under section 804.
       ``(2) The sale or trade by an individual of a qualifying 
     drug that under section 804(a)(2)(B) was imported by the 
     individual.
       ``(3) The making of a materially false, fictitious, or 
     fraudulent statement or representation, or a material 
     omission, in a notice under clause (i) of section 
     804(g)(2)(B) or in an application required under section 
     804(g)(2)(F), or the failure to submit such a notice or 
     application.
       ``(4) The importation of a drug in violation of a 
     registration condition or other requirement under section 
     804, the falsification of any record required to be 
     maintained, or provided to the Secretary, under such section, 
     or the violation of any registration condition or other 
     requirement under such section.''; and
       (2) in section 303(a) (21 U.S.C. 333(a)), by striking 
     paragraph (6) and inserting the following:
       ``(6) Notwithstanding subsection (a), any person that 
     knowingly violates section 301(i) (2) or (3) or section 
     301(aa)(4) shall be imprisoned not more than 10 years, or 
     fined in accordance with title 18, United States Code, or 
     both.''.
       (c) Amendment of Certain Provisions.--
       (1) In general.--Section 801 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 381) is amended by striking 
     subsection (g) and inserting the following:
       ``(g) With respect to a prescription drug that is imported 
     or offered for import into the United States by an individual 
     who is not in the business of such importation, that is not 
     shipped by a registered exporter under section 804, and that 
     is refused admission under subsection (a), the Secretary 
     shall notify the individual that--
       ``(1) the drug has been refused admission because the drug 
     was not a lawful import under section 804;
       ``(2) the drug is not otherwise subject to a waiver of the 
     requirements of subsection (a);
       ``(3) the individual may under section 804 lawfully import 
     certain prescription drugs from exporters registered with the 
     Secretary under section 804; and
       ``(4) the individual can find information about such 
     importation, including a list of registered exporters, on the 
     Internet website of the Food and Drug Administration or 
     through a toll-free telephone number required under section 
     804.''.
       (2) Establishment registration.--Section 510(i) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360(i)) is 
     amended in paragraph (1) by inserting after ``import into the 
     United States'' the following: ``, including a drug that is, 
     or may be, imported or offered for import into the United 
     States under section 804,''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date that is 90 days after the date 
     of enactment of this Act.
       (d) Exhaustion.--
       (1) In general.--Section 271 of title 35, United States 
     Code, is amended--
       (A) by redesignating subsections (h) and (i) as (i) and 
     (j), respectively; and
       (B) by inserting after subsection (g) the following:
       ``(h) It shall not be an act of infringement to use, offer 
     to sell, or sell within the United States or to import into 
     the United States any patented invention under section 804 of 
     the Federal Food, Drug, and Cosmetic Act that was first sold 
     abroad by or under authority of the owner or licensee of such 
     patent.''.
       (2) Rule of construction.--Nothing in the amendment made by 
     paragraph (1) shall be construed to affect the ability of a 
     patent owner or licensee to enforce their patent, subject to 
     such amendment.
       (e) Effect of Section 804.--
       (1) In general.--Section 804 of the Federal Food, Drug, and 
     Cosmetic Act, as added by subsection (a), shall permit the 
     importation of qualifying drugs (as defined in such section 
     804) into the United States without regard to the status of 
     the issuance of implementing regulations--

[[Page 8236]]

       (A) from exporters registered under such section 804 on the 
     date that is 90 days after the date of enactment of this Act; 
     and
       (B) from permitted countries, as defined in such section 
     804, by importers registered under such section 804 on the 
     date that is 1 year after the date of enactment of this Act.
       (2) Review of registration by certain exporters.--
       (A) Review priority.--In the review of registrations 
     submitted under subsection (b) of such section 804, 
     registrations submitted by entities in Canada that are 
     significant exporters of prescription drugs to individuals in 
     the United States as of the date of enactment of this Act 
     will have priority during the 90 day period that begins on 
     such date of enactment.
       (B) Period for review.--During such 90-day period, the 
     reference in subsection (b)(2)(A) of such section 804 to 90 
     days (relating to approval or disapproval of registrations) 
     is, as applied to such entities, deemed to be 30 days.
       (C) Limitation.--That an exporter in Canada exports, or has 
     exported, prescription drugs to individuals in the United 
     States on or before the date that is 90 days after the date 
     of enactment of this Act shall not serve as a basis, in whole 
     or in part, for disapproving a registration under such 
     section 804 from the exporter.
       (D) First year limit on number of exporters.--During the 1-
     year period beginning on the date of enactment of this Act, 
     the Secretary of Health and Human Services (referred to in 
     this section as the ``Secretary'') may limit the number of 
     registered exporters under such section 804 to not less than 
     50, so long as the Secretary gives priority to those 
     exporters with demonstrated ability to process a high volume 
     of shipments of drugs to individuals in the United States.
       (E) Second year limit on number of exporters.--During the 
     1-year period beginning on the date that is 1 year after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered exporters under such section 804 to not 
     less than 100, so long as the Secretary gives priority to 
     those exporters with demonstrated ability to process a high 
     volume of shipments of drugs to individuals in the United 
     States.
       (F) Further limit on number of exporters.--During any 1-
     year period beginning on a date that is 2 or more years after 
     the date of enactment of this Act, the Secretary may limit 
     the number of registered exporters under such section 804 to 
     not less than 25 more than the number of such exporters 
     during the previous 1-year period, so long as the Secretary 
     gives priority to those exporters with demonstrated ability 
     to process a high volume of shipments of drugs to individuals 
     in the United States.
       (3) Limits on number of importers.--
       (A) First year limit on number of importers.--During the 1-
     year period beginning on the date that is 1 year after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered importers under such section 804 to not 
     less than 100 (of which at least a significant number shall 
     be groups of pharmacies, to the extent feasible given the 
     applications submitted by such groups), so long as the 
     Secretary gives priority to those importers with demonstrated 
     ability to process a high volume of shipments of drugs 
     imported into the United States.
       (B) Second year limit on number of importers.--During the 
     1-year period beginning on the date that is 2 years after the 
     date of enactment of this Act, the Secretary may limit the 
     number of registered importers under such section 804 to not 
     less than 200 (of which at least a significant number shall 
     be groups of pharmacies, to the extent feasible given the 
     applications submitted by such groups), so long as the 
     Secretary gives priority to those importers with demonstrated 
     ability to process a high volume of shipments of drugs into 
     the United States.
       (C) Further limit on number of importers.--During any 1-
     year period beginning on a date that is 3 or more years after 
     the date of enactment of this Act, the Secretary may limit 
     the number of registered importers under such section 804 to 
     not less than 50 more (of which at least a significant number 
     shall be groups of pharmacies, to the extent feasible given 
     the applications submitted by such groups) than the number of 
     such importers during the previous 1-year period, so long as 
     the Secretary gives priority to those importers with 
     demonstrated ability to process a high volume of shipments of 
     drugs to the United States.
       (4) Notices for drugs for import from canada.--The notice 
     with respect to a qualifying drug introduced for commercial 
     distribution in Canada as of the date of enactment of this 
     Act that is required under subsection (g)(2)(B)(i) of such 
     section 804 shall be submitted to the Secretary not later 
     than 30 days after the date of enactment of this Act if--
       (A) the U.S. label drug (as defined in such section 804) 
     for the qualifying drug is 1 of the 100 prescription drugs 
     with the highest dollar volume of sales in the United States 
     based on the 12 calendar month period most recently completed 
     before the date of enactment of this Act; or
       (B) the notice is a notice under subsection 
     (g)(2)(B)(i)(II) of such section 804.
       (5) Notice for drugs for import from other countries.--The 
     notice with respect to a qualifying drug introduced for 
     commercial distribution in a permitted country other than 
     Canada as of the date of enactment of this Act that is 
     required under subsection (g)(2)(B)(i) of such section 804 
     shall be submitted to the Secretary not later than 180 days 
     after the date of enactment of this Act if--
       (A) the U.S. label drug for the qualifying drug is 1 of the 
     100 prescription drugs with the highest dollar volume of 
     sales in the United States based on the 12 calendar month 
     period that is first completed on the date that is 120 days 
     after the date of enactment of this Act; or
       (B) the notice is a notice under subsection 
     (g)(2)(B)(i)(II) of such section 804.
       (6) Notice for other drugs for import.--
       (A) Guidance on submission dates.--The Secretary shall by 
     guidance establish a series of submission dates for the 
     notices under subsection (g)(2)(B)(i) of such section 804 
     with respect to qualifying drugs introduced for commercial 
     distribution as of the date of enactment of this Act and that 
     are not required to be submitted under paragraph (4) or (5).
       (B) Consistent and efficient use of resources.--The 
     Secretary shall establish the dates described under 
     subparagraph (A) so that such notices described under 
     subparagraph (A) are submitted and reviewed at a rate that 
     allows consistent and efficient use of the resources and 
     staff available to the Secretary for such reviews. The 
     Secretary may condition the requirement to submit such a 
     notice, and the review of such a notice, on the submission by 
     a registered exporter or a registered importer to the 
     Secretary of a notice that such exporter or importer intends 
     to import such qualifying drug to the United States under 
     such section 804.
       (C) Priority for drugs with higher sales.--The Secretary 
     shall establish the dates described under subparagraph (A) so 
     that the Secretary reviews the notices described under such 
     subparagraph with respect to qualifying drugs with higher 
     dollar volume of sales in the United States before the 
     notices with respect to drugs with lower sales in the United 
     States.
       (7) Notices for drugs approved after effective date.--The 
     notice required under subsection (g)(2)(B)(i) of such section 
     804 for a qualifying drug first introduced for commercial 
     distribution in a permitted country (as defined in such 
     section 804) after the date of enactment of this Act shall be 
     submitted to and reviewed by the Secretary as provided under 
     subsection (g)(2)(B) of such section 804, without regard to 
     paragraph (4), (5), or (6).
       (8) Report.--Beginning with the first full fiscal year 
     after the date of enactment of this Act, not later than 90 
     days after the end of each fiscal year during which the 
     Secretary reviews a notice referred to in paragraph (4), (5), 
     or (6), the Secretary shall submit a report to Congress 
     concerning the progress of the Food and Drug Administration 
     in reviewing the notices referred to in paragraphs (4), (5), 
     and (6).
       (9) User fees.--
       (A) Exporters.--When establishing an aggregate total of 
     fees to be collected from exporters under subsection (f)(2) 
     of such section 804, the Secretary shall, under subsection 
     (f)(3)(C)(i) of such section 804, estimate the total price of 
     drugs imported under subsection (a) of such section 804 into 
     the United States by registered exporters during the first 
     fiscal year in which this title takes effect to be an amount 
     equal to the amount which bears the same ratio to 
     $1,000,000,000 as the number of days in such fiscal year 
     during which this title is effective bears to 365.
       (B) Importers.--When establishing an aggregate total of 
     fees to be collected from importers under subsection (e)(2) 
     of such section 804, the Secretary shall, under subsection 
     (e)(3)(C)(i) of such section 804, estimate the total price of 
     drugs imported under subsection (a) of such section 804 into 
     the United States by registered importers during--
       (i) the first fiscal year in which this title takes effect 
     to be an amount equal to the amount which bears the same 
     ratio to $1,000,000,000 as the number of days in such fiscal 
     year during which this title is effective bears to 365; and
       (ii) the second fiscal year in which this title is in 
     effect to be $3,000,000,000.
       (C) Second year adjustment.--
       (i) Reports.--Not later than February 20 of the second 
     fiscal year in which this title is in effect, registered 
     importers shall report to the Secretary the total price and 
     the total volume of drugs imported to the United States by 
     the importer during the 4-month period from October 1 through 
     January 31 of such fiscal year.
       (ii) Reestimate.--Notwithstanding subsection (e)(3)(C)(ii) 
     of such section 804 or subparagraph (B), the Secretary shall 
     reestimate the total price of qualifying drugs imported under 
     subsection (a) of such section 804 into the United States by 
     registered importers during the second fiscal year in which 
     this title is in effect. Such reestimate shall be equal to--

       (I) the total price of qualifying drugs imported by each 
     importer as reported under clause (i); multiplied by

[[Page 8237]]

       (II) 3.

       (iii) Adjustment.--The Secretary shall adjust the fee due 
     on April 1 of the second fiscal year in which this title is 
     in effect, from each importer so that the aggregate total of 
     fees collected under subsection (e)(2) for such fiscal year 
     does not exceed the total price of qualifying drugs imported 
     under subsection (a) of such section 804 into the United 
     States by registered importers during such fiscal year as 
     reestimated under clause (ii).
       (D) Failure to pay fees.--Notwithstanding any other 
     provision of this section, the Secretary may prohibit a 
     registered importer or exporter that is required to pay user 
     fees under subsection (e) or (f) of such section 804 and that 
     fails to pay such fees within 30 days after the date on which 
     it is due, from importing or offering for importation a 
     qualifying drug under such section 804 until such fee is 
     paid.
       (E) Annual report.--
       (i) Food and drug administration.--Not later than 180 days 
     after the end of each fiscal year during which fees are 
     collected under subsection (e), (f), or (g)(2)(B)(iv) of such 
     section 804, the Secretary shall prepare and submit to the 
     House of Representatives and the Senate a report on the 
     implementation of the authority for such fees during such 
     fiscal year and the use, by the Food and Drug Administration, 
     of the fees collected for the fiscal year for which the 
     report is made and credited to the Food and Drug 
     Administration.
       (ii) Customs and border protection.--Not later than 180 
     days after the end of each fiscal year during which fees are 
     collected under subsection (e) or (f) of such section 804, 
     the Secretary of Homeland Security, in consultation with the 
     Secretary of the Treasury, shall prepare and submit to the 
     House of Representatives and the Senate a report on the use, 
     by the Bureau of Customs and Border Protection, of the fees, 
     if any, transferred by the Secretary to the Bureau of Customs 
     and Border Protection for the fiscal year for which the 
     report is made.
       (10) Special rule regarding importation by individuals.--
       (A) In general.--Notwithstanding any provision of this 
     title (or an amendment made by this title), the Secretary 
     shall expedite the designation of any additional permitted 
     countries from which an individual may import a qualifying 
     drug into the United States under such section 804 if any 
     action implemented by the Government of Canada has the effect 
     of limiting or prohibiting the importation of qualifying 
     drugs into the United States from Canada.
       (B) Timing and criteria.--The Secretary shall designate 
     such additional permitted countries under subparagraph (A)--
       (i) not later than 6 months after the date of the action by 
     the Government of Canada described under such subparagraph; 
     and
       (ii) using the criteria described under subsection 
     (a)(4)(D)(i)(II) of such section 804.
       (f) Implementation of Section 804.--
       (1) Interim rule.--The Secretary may promulgate an interim 
     rule for implementing section 804 of the Federal Food, Drug, 
     and Cosmetic Act, as added by subsection (a) of this section.
       (2) No notice of proposed rulemaking.--The interim rule 
     described under paragraph (1) may be developed and 
     promulgated by the Secretary without providing general notice 
     of proposed rulemaking.
       (3) Final rule.--Not later than 1 year after the date on 
     which the Secretary promulgates an interim rule under 
     paragraph (1), the Secretary shall, in accordance with 
     procedures under section 553 of title 5, United States Code, 
     promulgate a final rule for implementing such section 804, 
     which may incorporate by reference provisions of the interim 
     rule provided for under paragraph (1), to the extent that 
     such provisions are not modified.
       (g) Consumer Education.--The Secretary shall carry out 
     activities that educate consumers--
       (1) with regard to the availability of qualifying drugs for 
     import for personal use from an exporter registered with and 
     approved by the Food and Drug Administration under section 
     804 of the Federal Food, Drug, and Cosmetic Act, as added by 
     this section, including information on how to verify whether 
     an exporter is registered and approved by use of the Internet 
     website of the Food and Drug Administration and the toll-free 
     telephone number required by this title;
       (2) that drugs that consumers attempt to import from an 
     exporter that is not registered with and approved by the Food 
     and Drug Administration can be seized by the United States 
     Customs Service and destroyed, and that such drugs may be 
     counterfeit, unapproved, unsafe, or ineffective;
       (3) with regard to the suspension and termination of any 
     registration of a registered importer or exporter under such 
     section 804; and
       (4) with regard to the availability at domestic retail 
     pharmacies of qualifying drugs imported under such section 
     804 by domestic wholesalers and pharmacies registered with 
     and approved by the Food and Drug Administration.
       (h) Effect on Administration Practices.--Notwithstanding 
     any provision of this title (and the amendments made by this 
     title), the practices and policies of the Food and Drug 
     Administration and Bureau of Customs and Border Protection, 
     in effect on January 1, 2004, with respect to the importation 
     of prescription drugs into the United States by an 
     individual, on the person of such individual, for personal 
     use, shall remain in effect.
       (i) Report to Congress.--The Federal Trade Commission 
     shall, on an annual basis, submit to Congress a report that 
     describes any action taken during the period for which the 
     report is being prepared to enforce the provisions of section 
     804(n) of the Federal Food, Drug, and Cosmetic Act (as added 
     by this title), including any pending investigations or civil 
     actions under such section.

     SEC. 1305. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION INTO 
                   UNITED STATES.

       (a) In General.--Chapter VIII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by 
     section 1304, is further amended by adding at the end the 
     following section:

     ``SEC. 805. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION.

       ``(a) In General.--The Secretary of Homeland Security shall 
     deliver to the Secretary a shipment of drugs that is imported 
     or offered for import into the United States if--
       ``(1) the shipment has a declared value of less than 
     $10,000; and
       ``(2)(A) the shipping container for such drugs does not 
     bear the markings required under section 804(d)(2); or
       ``(B) the Secretary has requested delivery of such shipment 
     of drugs.
       ``(b) No Bond or Export.--Section 801(b) does not authorize 
     the delivery to the owner or consignee of drugs delivered to 
     the Secretary under subsection (a) pursuant to the execution 
     of a bond, and such drugs may not be exported.
       ``(c) Destruction of Violative Shipment.--The Secretary 
     shall destroy a shipment of drugs delivered by the Secretary 
     of Homeland Security to the Secretary under subsection (a) 
     if--
       ``(1) in the case of drugs that are imported or offered for 
     import from a registered exporter under section 804, the 
     drugs are in violation of any standard described in section 
     804(g)(5); or
       ``(2) in the case of drugs that are not imported or offered 
     for import from a registered exporter under section 804, the 
     drugs are in violation of a standard referred to in section 
     801(a) or 801(d)(1).
       ``(d) Certain Procedures.--
       ``(1) In general.--The delivery and destruction of drugs 
     under this section may be carried out without notice to the 
     importer, owner, or consignee of the drugs except as required 
     by section 801(g) or section 804(i)(2). The issuance of 
     receipts for the drugs, and recordkeeping activities 
     regarding the drugs, may be carried out on a summary basis.
       ``(2) Objective of procedures.--Procedures promulgated 
     under paragraph (1) shall be designed toward the objective of 
     ensuring that, with respect to efficiently utilizing Federal 
     resources available for carrying out this section, a 
     substantial majority of shipments of drugs subject to 
     described in subsection (c) are identified and destroyed.
       ``(e) Evidence Exception.--Drugs may not be destroyed under 
     subsection (c) to the extent that the Attorney General of the 
     United States determines that the drugs should be preserved 
     as evidence or potential evidence with respect to an offense 
     against the United States.
       ``(f) Rule of Construction.--This section may not be 
     construed as having any legal effect on applicable law with 
     respect to a shipment of drugs that is imported or offered 
     for import into the United States and has a declared value 
     equal to or greater than $10,000.''.
       (b) Procedures.--Procedures for carrying out section 805 of 
     the Federal Food, Drug, and Cosmetic Act, as added by 
     subsection (a), shall be established not later than 90 days 
     after the date of the enactment of this Act.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 90 days after the date 
     of enactment of this Act.

     SEC. 1306. WHOLESALE DISTRIBUTION OF DRUGS; STATEMENTS 
                   REGARDING PRIOR SALE, PURCHASE, OR TRADE.

       (a) Striking of Exemptions; Applicability to Registered 
     Exporters.--Section 503(e) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 353(e)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``and who is not the manufacturer or an 
     authorized distributor of record of such drug'';
       (B) by striking ``to an authorized distributor of record 
     or''; and
       (C) by striking subparagraph (B) and inserting the 
     following:
       ``(B) The fact that a drug subject to subsection (b) is 
     exported from the United States does not with respect to such 
     drug exempt any person that is engaged in the business of the 
     wholesale distribution of the drug from providing the 
     statement described in subparagraph (A) to the person that 
     receives the drug pursuant to the export of the drug.
       ``(C)(i) The Secretary shall by regulation establish 
     requirements that supersede subparagraph (A) (referred to in 
     this subparagraph as `alternative requirements') to identify 
     the chain of custody of a drug subject to

[[Page 8238]]

     subsection (b) from the manufacturer of the drug throughout 
     the wholesale distribution of the drug to a pharmacist who 
     intends to sell the drug at retail if the Secretary 
     determines that the alternative requirements, which may 
     include standardized anti-counterfeiting or track-and-trace 
     technologies, will identify such chain of custody or the 
     identity of the discrete package of the drug from which the 
     drug is dispensed with equal or greater certainty to the 
     requirements of subparagraph (A), and that the alternative 
     requirements are economically and technically feasible.
       ``(ii) When the Secretary promulgates a final rule to 
     establish such alternative requirements, the final rule in 
     addition shall, with respect to the registration condition 
     established in clause (i) of section 804(c)(3)(B), establish 
     a condition equivalent to the alternative requirements, and 
     such equivalent condition may be met in lieu of the 
     registration condition established in such clause (i).'';
       (2) in paragraph (2)(A), by adding at the end the 
     following: ``The preceding sentence may not be construed as 
     having any applicability with respect to a registered 
     exporter under section 804.''; and
       (3) in paragraph (3), by striking ``and subsection (d)--'' 
     in the matter preceding subparagraph (A) and all that follows 
     through ``the term `wholesale distribution' means'' in 
     subparagraph (B) and inserting the following: ``and 
     subsection (d), the term `wholesale distribution' means''.
       (b) Conforming Amendment.--Section 503(d) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 353(d)) is amended by 
     adding at the end the following:
       ``(4) Each manufacturer of a drug subject to subsection (b) 
     shall maintain at its corporate offices a current list of the 
     authorized distributors of record of such drug.
       ``(5) For purposes of this subsection, the term `authorized 
     distributors of record' means those distributors with whom a 
     manufacturer has established an ongoing relationship to 
     distribute such manufacturer's products.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by paragraphs (1) and 
     (3) of subsection (a) and by subsection (b) shall take effect 
     on January 1, 2012.
       (2) Drugs imported by registered importers under section 
     804.--Notwithstanding paragraph (1), the amendments made by 
     paragraphs (1) and (3) of subsection (a) and by subsection 
     (b) shall take effect on the date that is 90 days after the 
     date of enactment of this Act with respect to qualifying 
     drugs imported under section 804 of the Federal Food, Drug, 
     and Cosmetic Act, as added by section 1304.
       (3) Effect with respect to registered exporters.--The 
     amendment made by subsection (a)(2) shall take effect on the 
     date that is 90 days after the date of enactment of this Act.
       (4) Alternative requirements.--The Secretary shall issue 
     regulations to establish the alternative requirements, 
     referred to in the amendment made by subsection (a)(1), that 
     take effect not later than January 1, 2012.
       (5) Intermediate requirements.--The Secretary shall by 
     regulation require the use of standardized anti-
     counterfeiting or track-and-trace technologies on 
     prescription drugs at the case and pallet level effective not 
     later than 1 year after the date of enactment of this Act.
       (6) Additional requirements.--
       (A) In general.--Notwithstanding any other provision of 
     this section, the Secretary shall, not later than 18 months 
     after the date of enactment of this Act, require that the 
     packaging of any prescription drug incorporates--
       (i) a standardized numerical identifier unique to each 
     package of such drug, applied at the point of manufacturing 
     and repackaging (in which case the numerical identifier shall 
     be linked to the numerical identifier applied at the point of 
     manufacturing); and
       (ii)(I) overt optically variable counterfeit-resistant 
     technologies that--

       (aa) are visible to the naked eye, providing for visual 
     identification of product authenticity without the need for 
     readers, microscopes, lighting devices, or scanners;
       (bb) are similar to that used by the Bureau of Engraving 
     and Printing to secure United States currency;
       (cc) are manufactured and distributed in a highly secure, 
     tightly controlled environment; and
       (dd) incorporate additional layers of nonvisible convert 
     security features up to and including forensic capability, as 
     described in subparagraph (B); or

       (II) technologies that have a function of security 
     comparable to that described in subclause (I), as determined 
     by the Secretary.
       (B) Standards for packaging.--For the purpose of making it 
     more difficult to counterfeit the packaging of drugs subject 
     to this paragraph, the manufacturers of such drugs shall 
     incorporate the technologies described in subparagraph (A) 
     into at least 1 additional element of the physical packaging 
     of the drugs, including blister packs, shrink wrap, package 
     labels, package seals, bottles, and boxes.

     SEC. 1307. INTERNET SALES OF PRESCRIPTION DRUGS.

       (a) In General.--Chapter V of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 351 et seq.) is amended by inserting 
     after section 503B the following:

     ``SEC. 503C. INTERNET SALES OF PRESCRIPTION DRUGS.

       ``(a) Requirements Regarding Information on Internet 
     Site.--
       ``(1) In general.--A person may not dispense a prescription 
     drug pursuant to a sale of the drug by such person if--
       ``(A) the purchaser of the drug submitted the purchase 
     order for the drug, or conducted any other part of the sales 
     transaction for the drug, through an Internet site;
       ``(B) the person dispenses the drug to the purchaser by 
     mailing or shipping the drug to the purchaser; and
       ``(C) such site, or any other Internet site used by such 
     person for purposes of sales of a prescription drug, fails to 
     meet each of the requirements specified in paragraph (2), 
     other than a site or pages on a site that--
       ``(i) are not intended to be accessed by purchasers or 
     prospective purchasers; or
       ``(ii) provide an Internet information location tool within 
     the meaning of section 231(e)(5) of the Communications Act of 
     1934 (47 U.S.C. 231(e)(5)).
       ``(2) Requirements.--With respect to an Internet site, the 
     requirements referred to in subparagraph (C) of paragraph (1) 
     for a person to whom such paragraph applies are as follows:
       ``(A) Each page of the site shall include either the 
     following information or a link to a page that provides the 
     following information:
       ``(i) The name of such person.
       ``(ii) Each State in which the person is authorized by law 
     to dispense prescription drugs.
       ``(iii) The address and telephone number of each place of 
     business of the person with respect to sales of prescription 
     drugs through the Internet, other than a place of business 
     that does not mail or ship prescription drugs to purchasers.
       ``(iv) The name of each individual who serves as a 
     pharmacist for prescription drugs that are mailed or shipped 
     pursuant to the site, and each State in which the individual 
     is authorized by law to dispense prescription drugs.
       ``(v) If the person provides for medical consultations 
     through the site for purposes of providing prescriptions, the 
     name of each individual who provides such consultations; each 
     State in which the individual is licensed or otherwise 
     authorized by law to provide such consultations or practice 
     medicine; and the type or types of health professions for 
     which the individual holds such licenses or other 
     authorizations.
       ``(B) A link to which paragraph (1) applies shall be 
     displayed in a clear and prominent place and manner, and 
     shall include in the caption for the link the words 
     `licensing and contact information'.
       ``(b) Internet Sales Without Appropriate Medical 
     Relationships.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     person may not dispense a prescription drug, or sell such a 
     drug, if--
       ``(A) for purposes of such dispensing or sale, the 
     purchaser communicated with the person through the Internet;
       ``(B) the patient for whom the drug was dispensed or 
     purchased did not, when such communications began, have a 
     prescription for the drug that is valid in the United States;
       ``(C) pursuant to such communications, the person provided 
     for the involvement of a practitioner, or an individual 
     represented by the person as a practitioner, and the 
     practitioner or such individual issued a prescription for the 
     drug that was purchased;
       ``(D) the person knew, or had reason to know, that the 
     practitioner or the individual referred to in subparagraph 
     (C) did not, when issuing the prescription, have a qualifying 
     medical relationship with the patient; and
       ``(E) the person received payment for the dispensing or 
     sale of the drug.

     For purposes of subparagraph (E), payment is received if 
     money or other valuable consideration is received.
       ``(2) Exceptions.--Paragraph (1) does not apply to--
       ``(A) the dispensing or selling of a prescription drug 
     pursuant to telemedicine practices sponsored by--
       ``(i) a hospital that has in effect a provider agreement 
     under title XVIII of the Social Security Act (relating to the 
     Medicare program); or
       ``(ii) a group practice that has not fewer than 100 
     physicians who have in effect provider agreements under such 
     title; or
       ``(B) the dispensing or selling of a prescription drug 
     pursuant to practices that promote the public health, as 
     determined by the Secretary by regulation.
       ``(3) Qualifying medical relationship.--
       ``(A) In general.--With respect to issuing a prescription 
     for a drug for a patient, a practitioner has a qualifying 
     medical relationship with the patient for purposes of this 
     section if--
       ``(i) at least one in-person medical evaluation of the 
     patient has been conducted by the practitioner; or
       ``(ii) the practitioner conducts a medical evaluation of 
     the patient as a covering practitioner.

[[Page 8239]]

       ``(B) In-person medical evaluation.--A medical evaluation 
     by a practitioner is an in-person medical evaluation for 
     purposes of this section if the practitioner is in the 
     physical presence of the patient as part of conducting the 
     evaluation, without regard to whether portions of the 
     evaluation are conducted by other health professionals.
       ``(C) Covering practitioner.--With respect to a patient, a 
     practitioner is a covering practitioner for purposes of this 
     section if the practitioner conducts a medical evaluation of 
     the patient at the request of a practitioner who has 
     conducted at least one in-person medical evaluation of the 
     patient and is temporarily unavailable to conduct the 
     evaluation of the patient. A practitioner is a covering 
     practitioner without regard to whether the practitioner has 
     conducted any in-person medical evaluation of the patient 
     involved.
       ``(4) Rules of construction.--
       ``(A) Individuals represented as practitioners.--A person 
     who is not a practitioner (as defined in subsection (e)(1)) 
     lacks legal capacity under this section to have a qualifying 
     medical relationship with any patient.
       ``(B) Standard practice of pharmacy.--Paragraph (1) may not 
     be construed as prohibiting any conduct that is a standard 
     practice in the practice of pharmacy.
       ``(C) Applicability of requirements.--Paragraph (3) may not 
     be construed as having any applicability beyond this section, 
     and does not affect any State law, or interpretation of State 
     law, concerning the practice of medicine.
       ``(c) Actions by States.--
       ``(1) In general.--Whenever an attorney general of any 
     State has reason to believe that the interests of the 
     residents of that State have been or are being threatened or 
     adversely affected because any person has engaged or is 
     engaging in a pattern or practice that violates section 
     301(l), the State may bring a civil action on behalf of its 
     residents in an appropriate district court of the United 
     States to enjoin such practice, to enforce compliance with 
     such section (including a nationwide injunction), to obtain 
     damages, restitution, or other compensation on behalf of 
     residents of such State, to obtain reasonable attorneys fees 
     and costs if the State prevails in the civil action, or to 
     obtain such further and other relief as the court may deem 
     appropriate.
       ``(2) Notice.--The State shall serve prior written notice 
     of any civil action under paragraph (1) or (5)(B) upon the 
     Secretary and provide the Secretary with a copy of its 
     complaint, except that if it is not feasible for the State to 
     provide such prior notice, the State shall serve such notice 
     immediately upon instituting such action. Upon receiving a 
     notice respecting a civil action, the Secretary shall have 
     the right--
       ``(A) to intervene in such action;
       ``(B) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(C) to file petitions for appeal.
       ``(3) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this chapter shall 
     prevent an attorney general of a State from exercising the 
     powers conferred on the attorney general by the laws of such 
     State to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence.
       ``(4) Venue; service of process.--Any civil action brought 
     under paragraph (1) in a district court of the United States 
     may be brought in the district in which the defendant is 
     found, is an inhabitant, or transacts business or wherever 
     venue is proper under section 1391 of title 28, United States 
     Code. Process in such an action may be served in any district 
     in which the defendant is an inhabitant or in which the 
     defendant may be found.
       ``(5) Actions by other state officials.--
       ``(A) Nothing contained in this section shall prohibit an 
     authorized State official from proceeding in State court on 
     the basis of an alleged violation of any civil or criminal 
     statute of such State.
       ``(B) In addition to actions brought by an attorney general 
     of a State under paragraph (1), such an action may be brought 
     by officers of such State who are authorized by the State to 
     bring actions in such State on behalf of its residents.
       ``(d) Effect of Section.--This section shall not apply to a 
     person that is a registered exporter under section 804.
       ``(e) General Definitions.--For purposes of this section:
       ``(1) The term `practitioner' means a practitioner referred 
     to in section 503(b)(1) with respect to issuing a written or 
     oral prescription.
       ``(2) The term `prescription drug' means a drug that is 
     described in section 503(b)(1).
       ``(3) The term `qualifying medical relationship', with 
     respect to a practitioner and a patient, has the meaning 
     indicated for such term in subsection (b).
       ``(f) Internet-Related Definitions.--
       ``(1) In general.--For purposes of this section:
       ``(A) The term `Internet' means collectively the myriad of 
     computer and telecommunications facilities, including 
     equipment and operating software, which comprise the 
     interconnected world-wide network of networks that employ the 
     transmission control protocol/internet protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       ``(B) The term `link', with respect to the Internet, means 
     one or more letters, words, numbers, symbols, or graphic 
     items that appear on a page of an Internet site for the 
     purpose of serving, when activated, as a method for executing 
     an electronic command--
       ``(i) to move from viewing one portion of a page on such 
     site to another portion of the page;
       ``(ii) to move from viewing one page on such site to 
     another page on such site; or
       ``(iii) to move from viewing a page on one Internet site to 
     a page on another Internet site.
       ``(C) The term `page', with respect to the Internet, means 
     a document or other file accessed at an Internet site.
       ``(D)(i) The terms `site' and `address', with respect to 
     the Internet, mean a specific location on the Internet that 
     is determined by Internet Protocol numbers. Such term 
     includes the domain name, if any.
       ``(ii) The term `domain name' means a method of 
     representing an Internet address without direct reference to 
     the Internet Protocol numbers for the address, including 
     methods that use designations such as `.com', `.edu', `.gov', 
     `.net', or `.org'.
       ``(iii) The term `Internet Protocol numbers' includes any 
     successor protocol for determining a specific location on the 
     Internet.
       ``(2) Authority of secretary.--The Secretary may by 
     regulation modify any definition under paragraph (1) to take 
     into account changes in technology.
       ``(g) Interactive Computer Service; Advertising.--No 
     provider of an interactive computer service, as defined in 
     section 230(f)(2) of the Communications Act of 1934 (47 
     U.S.C. 230(f)(2)), or of advertising services shall be liable 
     under this section for dispensing or selling prescription 
     drugs in violation of this section on account of another 
     person's selling or dispensing such drugs, provided that the 
     provider of the interactive computer service or of 
     advertising services does not own or exercise corporate 
     control over such person.
       ``(h) No Effect on Other Requirements; Coordination.--The 
     requirements of this section are in addition to, and do not 
     supersede, any requirements under the Controlled Substances 
     Act or the Controlled Substances Import and Export Act (or 
     any regulation promulgated under either such Act) regarding 
     Internet pharmacies and controlled substances. In 
     promulgating regulations to carry out this section, the 
     Secretary shall coordinate with the Attorney General to 
     ensure that such regulations do not duplicate or conflict 
     with the requirements described in the previous sentence, and 
     that such regulations and requirements coordinate to the 
     extent practicable.''.
       (b) Inclusion as Prohibited Act.--Section 301 of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 331) is 
     amended by inserting after paragraph (k) the following:
       ``(l) The dispensing or selling of a prescription drug in 
     violation of section 503C.''.
       (c) Internet Sales of Prescription Drugs; Consideration by 
     Secretary of Practices and Procedures for Certification of 
     Legitimate Businesses.--In carrying out section 503C of the 
     Federal Food, Drug, and Cosmetic Act (as added by subsection 
     (a) of this section), the Secretary of Health and Human 
     Services shall take into consideration the practices and 
     procedures of public or private entities that certify that 
     businesses selling prescription drugs through Internet sites 
     are legitimate businesses, including practices and procedures 
     regarding disclosure formats and verification programs.
       (d) Reports Regarding Internet-Related Violations of 
     Federal and State Laws on Dispensing of Drugs.--
       (1) In general.--The Secretary of Health and Human Services 
     (referred to in this subsection as the ``Secretary'') shall, 
     pursuant to the submission of an application meeting the 
     criteria of the Secretary, make an award of a grant or 
     contract to the National Clearinghouse on Internet 
     Prescribing (operated by the Federation of State Medical 
     Boards) for the purpose of--
       (A) identifying Internet sites that appear to be in 
     violation of Federal or State laws concerning the dispensing 
     of drugs;
       (B) reporting such sites to State medical licensing boards 
     and State pharmacy licensing boards, and to the Attorney 
     General and the Secretary, for further investigation; and
       (C) submitting, for each fiscal year for which the award 
     under this subsection is made, a report to the Secretary 
     describing investigations undertaken with respect to 
     violations described in subparagraph (A).
       (2) Authorization of appropriations.--For the purpose of 
     carrying out paragraph (1), there is authorized to be 
     appropriated $100,000 for each of the first 3 fiscal years in 
     which this section is in effect.
       (e) Effective Date.--The amendments made by subsections (a) 
     and (b) take effect 90 days after the date of enactment of 
     this Act, without regard to whether a final rule to implement 
     such amendments has been promulgated by the Secretary of 
     Health and Human Services under section 701(a) of the Federal

[[Page 8240]]

     Food, Drug, and Cosmetic Act. The preceding sentence may not 
     be construed as affecting the authority of such Secretary to 
     promulgate such a final rule.

     SEC. 1308. PROHIBITING PAYMENTS TO UNREGISTERED FOREIGN 
                   PHARMACIES.

       (a) In General.--Section 303 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 333) is amended by adding at the end 
     the following:
       ``(h) Restricted Transactions.--
       ``(1) In general.--The introduction of restricted 
     transactions into a payment system or the completion of 
     restricted transactions using a payment system is prohibited.
       ``(2) Payment system.--
       ``(A) In general.--The term `payment system' means a system 
     used by a person described in subparagraph (B) to effect a 
     credit transaction, electronic fund transfer, or money 
     transmitting service that may be used in connection with, or 
     to facilitate, a restricted transaction, and includes--
       ``(i) a credit card system;
       ``(ii) an international, national, regional, or local 
     network used to effect a credit transaction, an electronic 
     fund transfer, or a money transmitting service; and
       ``(iii) any other system that is centrally managed and is 
     primarily engaged in the transmission and settlement of 
     credit transactions, electronic fund transfers, or money 
     transmitting services.
       ``(B) Persons described.--A person referred to in 
     subparagraph (A) is--
       ``(i) a creditor;
       ``(ii) a credit card issuer;
       ``(iii) a financial institution;
       ``(iv) an operator of a terminal at which an electronic 
     fund transfer may be initiated;
       ``(v) a money transmitting business; or
       ``(vi) a participant in an international, national, 
     regional, or local network used to effect a credit 
     transaction, electronic fund transfer, or money transmitting 
     service.
       ``(3) Restricted transaction.--The term `restricted 
     transaction' means a transaction or transmittal, on behalf of 
     an individual who places an unlawful drug importation request 
     to any person engaged in the operation of an unregistered 
     foreign pharmacy, of--
       ``(A) credit, or the proceeds of credit, extended to or on 
     behalf of the individual for the purpose of the unlawful drug 
     importation request (including credit extended through the 
     use of a credit card);
       ``(B) an electronic fund transfer or funds transmitted by 
     or through a money transmitting business, or the proceeds of 
     an electronic fund transfer or money transmitting service, 
     from or on behalf of the individual for the purpose of the 
     unlawful drug importation request;
       ``(C) a check, draft, or similar instrument which is drawn 
     by or on behalf of the individual for the purpose of the 
     unlawful drug importation request and is drawn on or payable 
     at or through any financial institution; or
       ``(D) the proceeds of any other form of financial 
     transaction (identified by the Board by regulation) that 
     involves a financial institution as a payor or financial 
     intermediary on behalf of or for the benefit of the 
     individual for the purpose of the unlawful drug importation 
     request.
       ``(4) Unlawful drug importation request.--The term 
     `unlawful drug importation request' means the request, or 
     transmittal of a request, made to an unregistered foreign 
     pharmacy for a prescription drug by mail (including a private 
     carrier), facsimile, phone, or electronic mail, or by a means 
     that involves the use, in whole or in part, of the Internet.
       ``(5) Unregistered foreign pharmacy.--The term 
     `unregistered foreign pharmacy' means a person in a country 
     other than the United States that is not a registered 
     exporter under section 804.
       ``(6) Other definitions.--
       ``(A) Credit; creditor; credit card.--The terms `credit', 
     `creditor', and `credit card' have the meanings given the 
     terms in section 103 of the Truth in Lending Act (15 U.S.C. 
     1602).
       ``(B) Access device; electronic fund transfer.--The terms 
     `access device' and `electronic fund transfer'--
       ``(i) have the meaning given the term in section 903 of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693a); and
       ``(ii) the term `electronic fund transfer' also includes 
     any fund transfer covered under Article 4A of the Uniform 
     Commercial Code, as in effect in any State.
       ``(C) Financial institution.--The term `financial 
     institution'--
       ``(i) has the meaning given the term in section 903 of the 
     Electronic Transfer Fund Act (15 U.S.C. 1693a); and
       ``(ii) includes a financial institution (as defined in 
     section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809)).
       ``(D) Money transmitting business; money transmitting 
     service.--The terms `money transmitting business' and `money 
     transmitting service' have the meaning given the terms in 
     section 5330(d) of title 31, United States Code.
       ``(E) Board.--The term `Board' means the Board of Governors 
     of the Federal Reserve System.
       ``(7) Policies and procedures required to prevent 
     restricted transactions.--
       ``(A) Regulations.--The Board shall promulgate regulations 
     requiring--
       ``(i) an operator of a credit card system;
       ``(ii) an operator of an international, national, regional, 
     or local network used to effect a credit transaction, an 
     electronic fund transfer, or a money transmitting service;
       ``(iii) an operator of any other payment system that is 
     centrally managed and is primarily engaged in the 
     transmission and settlement of credit transactions, 
     electronic transfers or money transmitting services where at 
     least one party to the transaction or transfer is an 
     individual; and
       ``(iv) any other person described in paragraph (2)(B) and 
     specified by the Board in such regulations,

     to establish policies and procedures that are reasonably 
     designed to prevent the introduction of a restricted 
     transaction into a payment system or the completion of a 
     restricted transaction using a payment system.
       ``(B) Requirements for policies and procedures.--In 
     promulgating regulations under subparagraph (A), the Board 
     shall--
       ``(i) identify types of policies and procedures, including 
     nonexclusive examples, that shall be considered to be 
     reasonably designed to prevent the introduction of restricted 
     transactions into a payment system or the completion of 
     restricted transactions using a payment system; and
       ``(ii) to the extent practicable, permit any payment 
     system, or person described in paragraph (2)(B), as 
     applicable, to choose among alternative means of preventing 
     the introduction or completion of restricted transactions.
       ``(C) No liability for blocking or refusing to honor 
     restricted transaction.--
       ``(i) In general.--A payment system, or a person described 
     in paragraph (2)(B) that is subject to a regulation issued 
     under this subsection, and any participant in such payment 
     system that prevents or otherwise refuses to honor 
     transactions in an effort to implement the policies and 
     procedures required under this subsection or to otherwise 
     comply with this subsection shall not be liable to any party 
     for such action.
       ``(ii) Compliance.--A person described in paragraph (2)(B) 
     meets the requirements of this subsection if the person 
     relies on and complies with the policies and procedures of a 
     payment system of which the person is a member or in which 
     the person is a participant, and such policies and procedures 
     of the payment system comply with the requirements of the 
     regulations promulgated under subparagraph (A).
       ``(D) Enforcement.--
       ``(i) In general.--This subsection, and the regulations 
     promulgated under this subsection, shall be enforced 
     exclusively by the Federal functional regulators and the 
     Federal Trade Commission under applicable law in the manner 
     provided in section 505(a) of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6805(a)).
       ``(ii) Factors to be considered.--In considering any 
     enforcement action under this subsection against a payment 
     system or person described in paragraph (2)(B), the Federal 
     functional regulators and the Federal Trade Commission shall 
     consider the following factors:

       ``(I) The extent to which the payment system or person 
     knowingly permits restricted transactions.
       ``(II) The history of the payment system or person in 
     connection with permitting restricted transactions.
       ``(III) The extent to which the payment system or person 
     has established and is maintaining policies and procedures in 
     compliance with regulations prescribed under this subsection.

       ``(8) Transactions permitted.--A payment system, or a 
     person described in paragraph (2)(B) that is subject to a 
     regulation issued under this subsection, is authorized to 
     engage in transactions with foreign pharmacies in connection 
     with investigating violations or potential violations of any 
     rule or requirement adopted by the payment system or person 
     in connection with complying with paragraph (7). A payment 
     system, or such a person, and its agents and employees shall 
     not be found to be in violation of, or liable under, any 
     Federal, State or other law by virtue of engaging in any such 
     transaction.
       ``(9) Relation to state laws.--No requirement, prohibition, 
     or liability may be imposed on a payment system, or a person 
     described in paragraph (2)(B) that is subject to a regulation 
     issued under this subsection, under the laws of any state 
     with respect to any payment transaction by an individual 
     because the payment transaction involves a payment to a 
     foreign pharmacy.
       ``(10) Timing of requirements.--A payment system, or a 
     person described in paragraph (2)(B) that is subject to a 
     regulation issued under this subsection, must adopt policies 
     and procedures reasonably designed to comply with any 
     regulations required under paragraph (7) within 60 days after 
     such regulations are issued in final form.
       ``(11) Compliance.--A payment system, and any person 
     described in paragraph (2)(B), shall not be deemed to be in 
     violation of paragraph (1)--
       ``(A)(i) if an alleged violation of paragraph (1) occurs 
     prior to the mandatory compliance date of the regulations 
     issued under paragraph (7); and
       ``(ii) such entity has adopted or relied on policies and 
     procedures that are reasonably

[[Page 8241]]

     designed to prevent the introduction of restricted 
     transactions into a payment system or the completion of 
     restricted transactions using a payment system; or
       ``(B)(i) if an alleged violation of paragraph (1) occurs 
     after the mandatory compliance date of such regulations; and
       ``(ii) such entity is in compliance with such 
     regulations.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the day that is 90 days after the date 
     of enactment of this Act.
       (c) Implementation.--The Board of Governors of the Federal 
     Reserve System shall promulgate regulations as required by 
     subsection (h)(7) of section 303 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 333), as added by subsection (a), 
     not later than 90 days after the date of enactment of this 
     Act.

     SEC. 1309. IMPORTATION EXEMPTION UNDER CONTROLLED SUBSTANCES 
                   IMPORT AND EXPORT ACT.

       Section 1006(a)(2) of the Controlled Substances Import and 
     Export Act (21 U.S.C. 956(a)(2)) is amended by striking ``not 
     import the controlled substance into the United States in an 
     amount that exceeds 50 dosage units of the controlled 
     substance.'' and inserting ``import into the United States 
     not more than 10 dosage units combined of all such controlled 
     substances.''.

     SEC. 1310. SEVERABILITY.

       If any provision of this title, an amendment by this title, 
     or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this title, the amendments made by this title, 
     and the application of the provisions of such to any person 
     or circumstance shall not be affected thereby.
                                 ______
                                 
  SA 4033. Mr. BROWN of Massachusetts submitted an amendment intended 
to be proposed by him to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail,'' to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. COMMISSION ON ECONOMIC SECURITY.

       (a) Findings.--Congress finds that--
       (1) the recent financial crisis could serve as a road map 
     for actors seeking to destabilize economic systems;
       (2) the economy's growing interconnectedness increases 
     vulnerabilities;
       (3) the ability of malevolent actors to rapidly network and 
     mask their activities undermines the fundamentals of the 
     financial markets and economy;
       (4) as it is reported that a recent war game of the 
     Department of Defense--
       (A) exposed the seriousness of threats to our economy;
       (B) was won by a group representing the Government of 
     China; and
       (C) indicated a significant lack of understanding of these 
     issues across the divides between the national security and 
     financial communities;
       (5) a leading financial executive recently noted that the 
     financial crisis, sparked by the September 15th, 2008, 
     collapse of Lehman Brothers, could serve as a road map for 
     actors seeking to destabilize economic systems;
       (6) prominent counterterrorism expert Professor Bruce 
     Hoffman of Georgetown University has stated that al Qaeda and 
     other terrorists groups were devoting new attention to 
     derailing our financial system in the wake of that crisis;
       (7) foreign governments have developed economic warfare 
     capabilities or organizations, such as an economic warfare 
     bureau in China; and
       (8) former Directors of National Intelligence and other top 
     experts have warned of cyber-security and other threats 
     capable of disrupting our financial institutions or critical 
     infrastructure, such as the national power grid.
       (b) Establishment.--There is established a commission to be 
     known as the ``Security Threats to Financial Markets and 
     Economic Recovery Commission'' (referred to in this section 
     as the ``Commission'').
       (c) Duties of Commission.--
       (1) Mandatory legislative recommendations.--The Commission 
     shall examine the threats and vulnerabilities to the United 
     States financial markets and to develop legislative 
     recommendations designed to address--
       (A) potential threats to financial markets and economies 
     from state actors and non-state actors;
       (B) vulnerabilities in financial markets with substantial 
     economic implications;
       (C) the divide between national security concerns and 
     economic concerns; and
       (D) national security vulnerabilities associated with 
     current Federal debt levels.
       (2) Policy solutions.--Legislative recommendations 
     developed to address the issues described in paragraph (1) 
     may include--
       (A) reforms necessary to address gaps in government and 
     private capabilities to combat threats to financial markets;
       (B) reforms that strengthen the security of financial 
     markets;
       (C) reforms that address financial systemic weakness; and
       (D) any other reforms designed to address the issues 
     described in paragraph (1).
       (d) Report.--
       (1) In general.--The Commission shall, not later than 
     September 5, 2010, submit an interim report to Congress and, 
     not later than 1 year after the date of the enactment of this 
     Act, shall submit a full report to Congress and the President 
     containing--
       (A) a detailed description of the activities of the 
     Commission;
       (B) a detailed statement of any findings of the Commission 
     as to public preferences regarding the issues, policies, and 
     tradeoffs presented in the town hall style public hearings;
       (C) a list of policy options for addressing those problems; 
     and
       (D) criteria for the legislative recommendations to be 
     developed by the Commission.
       (2) Form.--The reports submitted under paragraph (1) shall 
     be submitted in unclassified form, but may contain a 
     classified annex.
       (e) Legislative Recommendations.--
       (1) In general.--Not later than 60 days after the date on 
     which the full report is submitted under subsection (d)(1) 
     and by a vote of at least 10 of the members, the Commission 
     shall submit legislative recommendations to Congress and the 
     President designed to address the issues described in 
     subsection (c).
       (2) Proposal requirements.--The proposal under paragraph 
     (1) shall, to the extent feasible, be designed--
       (A) to achieve financial market and systemic security;
       (B) to address the comments and suggestions of the 
     consulted non-governmental experts and government officials; 
     and
       (C) to meet the criteria set forth in the Commission 
     report.
       (f) Membership and Meetings.--
       (1) Membership.--
       (A) In general.--The Commission shall be composed of 12 
     voting members appointed pursuant to subparagraph (B) and 3 
     nonvoting members described in subparagraph (C).
       (B) Voting members.--The Commission shall be composed of 12 
     voting members, of whom not fewer than 4 members should be 
     currently in the private sector, or have significant 
     experience in the private sector, of whom--
       (i) 3 shall be appointed by the Speaker of the House of 
     Representatives;
       (ii) 3 shall be appointed by the minority leader of the 
     House of Representatives;
       (iii) 3 shall be appointed by the majority leader of the 
     Senate; and
       (iv) 3 shall be appointed by the minority leader of the 
     Senate.
       (C) Executive branch consultation.--The Director of 
     National Intelligence, the Secretary, and the Chairman of the 
     Board of Governors shall advise and assist the Commission, at 
     the request of the Commission.
       (D) Chair and co-chair.--The Speaker of the House of 
     Representatives, the minority leader of the House of 
     Representatives, the majority leader of the Senate, and the 
     minority leader of the Senate shall designate 2 co-
     chairpersons of the Commission from the members appointed 
     under subparagraph (B), one of whom must be a Republican and 
     one of whom must be a Democrat.
       (2) Limitations as to members of congress.--
       (A) Members of congress on commission.--Each appointing 
     authority described in paragraph (1)(B) shall appoint not 
     more than 2 Members of Congress, nor fewer than 1 member of 
     Congress, to the Commission.
       (B) Continuation of voting membership.--In the case of an 
     individual appointed pursuant to paragraph (1)(A) who was 
     appointed as a Member of Congress under subparagraph (A), if 
     such individual ceases to be a Member of Congress, that 
     individual shall cease to be a member of the Commission.
       (3) Date for original appointment.--The appointing 
     authorities described in paragraph (1)(B) shall appoint the 
     initial members of the Commission not later than 30 days 
     after the date of enactment of this Act.
       (4) Terms.--
       (A) In general.--The term of each member is for the life of 
     the Commission.
       (B) Vacancies.--A vacancy in the Commission shall be filled 
     not later than 30 days after such vacancy occurs and in the 
     manner in which the original appointment was made.
       (5) Pay and reimbursement.--
       (A) No compensation for members of commission.--Except as 
     provided in subparagraph (B), a member of the Commission may 
     not receive pay, allowances, or benefits by reason of their 
     service on the Commission.
       (B) Travel expenses.--Each member shall receive travel 
     expenses, including per diem in lieu of subsistence under 
     subchapter I of chapter 57 of title 5, United States Code.
       (6) Meetings.--The Commission shall meet upon the call of 
     the chairperson or a majority of its voting members.

[[Page 8242]]

       (7) Quorum.--Six voting members of the Commission shall 
     constitute a quorum, but a lesser number may hold hearings.
       (g) Staff of Commission.--
       (1) Staff.--In accordance with rules agreed upon by the 
     Commission, subject to paragraph (2), and to the extent 
     provided in advance in appropriation Acts, the co-
     chairpersons of the Commission may appoint and fix the pay of 
     no more than 3 staff persons, subject to paragraph (3).
       (2) Applicability of certain civil service laws.--The staff 
     of the Commission may be appointed without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service.
       (3) Compensation.--A staff person of the Commission may not 
     be paid at a rate of pay that exceeds the maximum rate of pay 
     for a position at GS-14 of the General Schedule.
       (4) Detailees.--Any Federal Government employee may be 
     detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the rights, 
     status, and privileges of their regular employment without 
     interruption.
       (5) Experts and consultants.--In accordance with rules 
     agreed upon by the Commission and to the extent provided in 
     advance in appropriation Acts, the director may procure the 
     services of experts and consultants under section 3109(b) of 
     title 5, United States Code, but at rates not to exceed the 
     daily equivalent of the annual rate of basic pay for level V 
     of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (h) Powers of Commission.--
       (1) Hearings and evidence.--The Commission may, for the 
     purpose of carrying out this section, hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers 
     appropriate. The Commission may administer oaths or 
     affirmations to witnesses appearing before it.
       (2) Powers of members and agents.--Any member or agent of 
     the Commission may, if authorized by the Commission, take any 
     action which the Commission is authorized to take under this 
     subsection.
       (3) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (4) Administrative support services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, the 
     administrative support services necessary for the Commission 
     to carry out its responsibilities under this section.
       (5) Contract authority.--To the extent provided in advance 
     in appropriation Acts, the Commission may enter into 
     contracts to enable the Commission to discharge its duties 
     under this section.
       (i) Funding.--There are authorized to be appropriated to 
     the Commission, such sums as may be necessary to carry out 
     this section. Funding for the Commission shall be provided 
     through discretionary appropriations.
       (j) Termination.--The Commission shall terminate 60 days 
     after the date of submission of its legislative proposal to 
     Congress under this section.
                                 ______
                                 
  SA 4034. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail,'' to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1315, strike line 18, and all that follows through 
     page 1325, line 20 and insert the following:
       ``(B) the State consumer financial law is preempted in 
     accordance with the legal standards of the decision of the 
     Supreme Court in Barnett Bank v. Nelson (517 U.S. 25 (1996)), 
     and any preemption determination under this subparagraph may 
     be made by a court or by regulation or order of the 
     Comptroller of the Currency, on a case-by-case basis, in 
     accordance with applicable law; or
       ``(C) the State consumer financial law is preempted by a 
     provision of Federal law other than this title.
       ``(2) Savings clause.--This title does not preempt, annul, 
     or affect the applicability of any State law to any 
     subsidiary or affiliate of a national bank (other than a 
     subsidiary or affiliate that is chartered as a national 
     bank).
       ``(3) Case-by-case basis.--
       ``(A) Definition.--As used in this section the term `case-
     by-case basis' refers to a determination pursuant to this 
     section made by the Comptroller concerning the impact of a 
     particular State consumer financial law on any national bank 
     that is subject to that law, or the law of any other State 
     with substantively equivalent terms.
       ``(B) Consultation.--When making a determination on a case-
     by-case basis that a State consumer financial law of another 
     State has substantively equivalent terms as one that the 
     Comptroller is preempting, the Comptroller shall first 
     consult with the Bureau of Consumer Financial Protection and 
     shall take the views of the Bureau into account when making 
     the determination.
       ``(4) Rule of construction.--This title does not occupy the 
     field in any area of State law.
       ``(5) Standards of review.--
       ``(A) Preemption.--A court reviewing any determinations 
     made by the Comptroller regarding preemption of a State law 
     by this title shall assess the validity of such 
     determinations, depending upon the thoroughness evident in 
     the consideration of the agency, the validity of the 
     reasoning of the agency, the consistency with other valid 
     determinations made by the agency, and other factors which 
     the court finds persuasive and relevant to its decision.
       ``(B) Savings clause.--Except as provided in subparagraph 
     (A), nothing in this section shall affect the deference that 
     a court may afford to the Comptroller in making 
     determinations regarding the meaning or interpretation of 
     title LXII of the Revised Statutes of the United States or 
     other Federal laws.
       ``(6) Comptroller determination not delegable.--Any 
     regulation, order, or determination made by the Comptroller 
     of the Currency under paragraph (1)(B) shall be made by the 
     Comptroller, and shall not be delegable to another officer or 
     employee of the Comptroller of the Currency.
       ``(c) Substantial Evidence.--No regulation or order of the 
     Comptroller of the Currency prescribed under subsection 
     (b)(1)(B), shall be interpreted or applied so as to 
     invalidate, or otherwise declare inapplicable to a national 
     bank, the provision of the State consumer financial law, 
     unless substantial evidence, made on the record of the 
     proceeding, supports the specific finding regarding the 
     preemption of such provision in accordance with the legal 
     standard of the decision of the Supreme Court of the United 
     States in Barnett Bank of Marion County, N.A. v. Nelson, 
     Florida Insurance Commissioner, et al., 517 U.S. 25 (1996).
       ``(d) Periodic Review of Preemption Determinations.--
       ``(1) In general.--The Comptroller of the Currency shall 
     periodically conduct a review, through notice and public 
     comment, of each determination that a provision of Federal 
     law preempts a State consumer financial law. The agency shall 
     conduct such review within the 5-year period after 
     prescribing or otherwise issuing such determination, and at 
     least once during each 5-year period thereafter. After 
     conducting the review of, and inspecting the comments made 
     on, the determination, the agency shall publish a notice in 
     the Federal Register announcing the decision to continue or 
     rescind the determination or a proposal to amend the 
     determination. Any such notice of a proposal to amend a 
     determination and the subsequent resolution of such proposal 
     shall comply with the procedures set forth in subsections (a) 
     and (b) of section 5244 of the Revised Statutes of the United 
     States (12 U.S.C. 43 (a), (b)).
       ``(2) Reports to congress.--At the time of issuing a review 
     conducted under paragraph (1), the Comptroller of the 
     Currency shall submit a report regarding such review to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate. The report submitted to the 
     respective committees shall address whether the agency 
     intends to continue, rescind, or propose to amend any 
     determination that a provision of Federal law preempts a 
     State consumer financial law, and the reasons therefor.
       ``(e) Application of State Consumer Financial Law to 
     Subsidiaries and Affiliates.--Notwithstanding any provision 
     of this title, a State consumer financial law shall apply to 
     a subsidiary or affiliate of a national bank (other than a 
     subsidiary or affiliate that is chartered as a national bank) 
     to the same extent that the State consumer financial law 
     applies to any person, corporation, or other entity subject 
     to such State law.
       ``(f) Preservation of Powers Related to Charging 
     Interest.--No provision of this title shall be construed as 
     altering or otherwise affecting the authority conferred by 
     section 5197 of the Revised Statutes of the United States (12 
     U.S.C. 85) for the charging of interest by a national bank at 
     the rate allowed by the laws of the State, territory, or 
     district where the bank is located, including with respect to 
     the meaning of `interest' under such provision.
       ``(g) Transparency of OCC Preemption Determinations.--The 
     Comptroller of the Currency shall publish and update no less 
     frequently than quarterly, a list of preemption 
     determinations by the Comptroller of the Currency then in 
     effect that identifies the activities and practices covered 
     by each determination and the requirements and constraints 
     determined to be preempted.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     one of title LXII of the Revised Statutes of the United 
     States is amended by inserting after the item relating to 
     section 5136B the following new item:


[[Page 8243]]


``Sec. 5136C. State law preemption standards for national banks and 
              subsidiaries clarified.''.

     SEC. 1045. CLARIFICATION OF LAW APPLICABLE TO NONDEPOSITORY 
                   INSTITUTION SUBSIDIARIES.

       Section 5136C of the Revised Statutes of the United States 
     (as added by this subtitle) is amended by adding at the end 
     the following:
       ``(i) Clarification of Law Applicable to Nondepository 
     Institution Subsidiaries and Affiliates of National Banks.--
       ``(1) Definitions.--For purposes of this subsection, the 
     terms `depository institution', `subsidiary', and `affiliate' 
     have the same meanings as in section 3 of the Federal Deposit 
     Insurance Act.
       ``(2) Rule of construction.--No provision of this title 
     shall be construed as preempting, annulling, or affecting the 
     applicability of State law to any subsidiary, affiliate, or 
     agent of a national bank (other than a subsidiary, affiliate, 
     or agent that is chartered as a national bank).''.

     SEC. 1046. STATE LAW PREEMPTION STANDARDS FOR FEDERAL SAVINGS 
                   ASSOCIATIONS AND SUBSIDIARIES CLARIFIED.

       (a) In General.--The Home Owners' Loan Act (12 U.S.C. 1461 
     et seq.) is amended by inserting after section 5 the 
     following new section:

     ``SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FEDERAL SAVINGS 
                   ASSOCIATIONS CLARIFIED.

       ``(a) In General.--Any determination by a court or by the 
     Director or any successor officer or agency regarding the 
     relation of State law to a provision of this Act or any 
     regulation or order prescribed under this Act shall be made 
     in accordance with the laws and legal standards applicable to 
     national banks regarding the preemption of State law.
       ``(b) Principles of Conflict Preemption Applicable.--
     Notwithstanding the authorities granted under sections 4 and 
     5, this Act does not occupy the field in any area of State 
     law.''.
       (b) Clerical Amendment.--The table of sections for the Home 
     Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended by 
     striking the item relating to section 6 and inserting the 
     following new item:

``Sec. 6. State law preemption standards for Federal savings 
              associations and subsidiaries clarified.''.

     SEC. 1047. VISITORIAL STANDARDS FOR NATIONAL BANKS AND 
                   SAVINGS ASSOCIATIONS.

       (a) National Banks.--Section 5136C of the Revised Statutes 
     of the United States (as added by this subtitle) is amended 
     by adding at the end the following:
       ``(j) Visitorial Powers.--
       ``(1) In general.--In accordance with the decision of the 
     Supreme Court of the United States in Cuomo v. Clearing House 
     Assn., L. L. C., 5 (129 S. Ct. 2710 (2009)), no provision of 
     this title which relates to visitorial powers or otherwise 
     limits or restricts the visitorial authority to which any 
     national bank is subject shall be construed as limiting or 
     restricting the authority of any attorney general (or other 
     chief law enforcement officer) of any State to bring an 
     action in a court of appropriate jurisdiction to enforce an 
     applicable nonpreempted State law against a national bank, as 
     authorized by such law, and to seek relief as authorized by 
     such law.
       ``(2) Exclusion.--The powers granted to State attorneys 
     general and State regulators under section 1042 of the 
     Restoring American Financial Stability Act of 2010 shall not 
     apply to any national bank, or any subsidiary thereof, 
     regulated by the Office of the Comptroller of the Currency.
       ``(k) Enforcement Actions.--The ability of the Comptroller 
     of the Currency to bring an enforcement action under this 
     title or section 5 of the Federal Trade Commission Act does 
     not preclude any private party from enforcing rights granted 
     under Federal or State law in the courts.''.
       (b) Savings Associations.--Section 6 of the Home Owners' 
     Loan Act (as added by this title) is amended by adding at the 
     end the following:
       ``(c) Visitorial Powers.--The provisions of sections 
     5136C(j) of the Revised Statutes of the United States shall 
     apply to Federal savings associations, and any subsidiary 
     thereof, to the same extent and in the same manner as if such 
     savings associations, or subsidiaries thereof, were national 
     banks or subsidiaries of national banks, respectively.
                                 ______
                                 
  SA 4035. Mr. LEVIN (for himself and Mr. Kaufman) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail,'' to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 525, between lines 9 and 10, insert the following:

     SEC. 719. PROHIBITION ON REGISTRATION, DESIGNATION, OR 
                   APPROVAL.

       (a) Prohibition.--Neither the Commodity Futures Trading 
     Commission nor the Securities and Exchange Commission may 
     register, designate, approve, or otherwise permit an entity 
     to operate within the United States as one or more of the 
     following, if that entity has been, plans to be, or later is 
     established outside the United States, in whole or in part, 
     in a manner which permits that entity to avoid or assist 
     others to avoid the payment of United States taxes--
       (1) a derivatives clearing organization;
       (2) a swap execution facility;
       (3) a board of trade as a contract market under section 5 
     of the Commodity Exchange Act (7 U.S.C. 7);
       (4) a clearing agency;
       (5) a security-based swap execution facility; or
       (6) an exchange as a national securities exchange under 
     section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78f).
       (b) Definitions.--For purposes of this section, the terms 
     ``derivatives clearing organization,'' ``swap execution 
     facility'' and ``board of trade'' have the meanings given the 
     terms in Section1a of the Commodity Exchange Act (7 U.S.C. 
     1a), and the terms ``clearing agency'', ``security-based swap 
     execution facility'', and ``exchange'' have the meanings 
     given the terms in section 3(a) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78c(a)).
                                 ______
                                 
  SA 4036. Mr. BENNETT submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 431, line 22, strike ``3'' and insert ``2''.
                                 ______
                                 
  SA 4037. Mr. BOND (for himself, Mr. Warner, Mr. Brown of 
Massachusetts, and Ms. Cantwell) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 387, strike line 13 and all that follows through 
     page 388, line 3, and insert the following:

     SEC. 412. ADJUSTING THE ACCREDITED INVESTOR STANDARD.

       (a) In General.--The Commission shall adjust any net worth 
     standard for an accredited investor, as set forth in the 
     rules of the Commission under the Securities Act of 1933, so 
     that the individual net worth of any natural person, or joint 
     net worth with the spouse of that person, at the time of 
     purchase, is more than $1,000,000 (as such amount is adjusted 
     periodically by rule of the Commission), excluding the value 
     of the primary residence of such natural person, except that 
     during the 4-year period that begins on the date of enactment 
     of this Act, the net worth standard shall be $1,000,000, 
     excluding the value of the primary residence of such natural 
     person.
       (b) Review and Adjustment.--
       (1) Initial review and adjustment.--
       (A) Initial review.--The Commission may undertake a review 
     of the definition of the term ``accredited investor'', as 
     such term applies to natural persons, to determine whether 
     the requirements of the definition, excluding the requirement 
     relating to the net worth standard described in subsection 
     (a), should be adjusted or modified for the protection of 
     investors, in the public interest, and in light of the 
     economy.
       (B) Adjustment or modification.--Upon completion of a 
     review under subparagraph (A), the Commission may, by notice 
     and comment rulemaking, make such adjustments to the 
     definition of the term ``accredited investor'', excluding 
     adjusting or modifying the requirement relating to the net 
     worth standard described in subsection (a), as such term 
     applies to natural persons, as the Commission may deem 
     appropriate for the protection of investors, in the public 
     interest, and in light of the economy.
       (2) Subsequent reviews and adjustment.--
       (A) Subsequent reviews.--Not earlier than 4 years after the 
     date of enactment of this

[[Page 8244]]

     Act, and not less frequently than once every 4 years 
     thereafter, the Commission shall undertake a review of the 
     definition, in its entirety, of the term ``accredited 
     investor'', as such term applies to natural persons, to 
     determine whether the requirements of the definition should 
     be adjusted or modified for the protection of investors, in 
     the public interest, and in light of the economy.
       (B) Adjustment or modification.--Upon completion of a 
     review under subparagraph (A), the Commission may, by notice 
     and comment rulemaking, make such adjustments to the 
     definition of the term ``accredited investor'', as such term 
     applies to natural persons, as the Commission may deem 
     appropriate for the protection of investors, in the public 
     interest, and in light of the economy.
       On page 388, line 14, strike ``1 year'' and insert ``3 
     years''.
       On page 998, strike line 12 and all that follows through 
     page 1001, line 25, and insert the following:

     SEC. 926. DISQUALIFYING FELONS AND OTHER ``BAD ACTORS'' FROM 
                   REGULATION D OFFERINGS.

       Not later than 1 year after the date of enactment of this 
     Act, the Commission shall issue rules for the 
     disqualification of offerings and sales of securities made 
     under section 230.506 of title 17, Code of Federal 
     Regulations, that--
       (1) are substantially similar to the provisions of section 
     230.262 of title 17, Code of Federal Regulations, or any 
     successor thereto; and
       (2) disqualify any offering or sale of securities by a 
     person that--
       (A) is subject to a final order of a State securities 
     commission (or an agency or officer of a State performing 
     like functions), a State authority that supervises or 
     examines banks, savings associations, or credit unions, a 
     State insurance commission (or an agency or officer of a 
     State performing like functions), an appropriate Federal 
     banking agency, or the National Credit Union Administration, 
     that--
       (i) bars the person from--

       (I) association with an entity regulated by such 
     commission, authority, agency, or officer;
       (II) engaging in the business of securities, insurance, or 
     banking; or
       (III) engaging in savings association or credit union 
     activities; or

       (ii) constitutes a final order based on a violation of any 
     law or regulation that prohibits fraudulent, manipulative, or 
     deceptive conduct within the 10-year period ending on the 
     date of the filing of the offering statement; or
       (B) has been convicted of any felony or misdemeanor in 
     connection with the purchase or sale of any security or 
     involving the making of any false filing with the Commission.
                                 ______
                                 
  SA 4038. Mr. DORGAN (for Mr. Dodd (for himself and Mr. Rockefeller)) 
proposed an amendment to the bill S. 2768, to amend title 49, United 
States Code, to authorize appropriations for the National 
Transportation Safety Board for fiscal years 2011 and 2012, and for 
other purposes; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Transportation 
     Safety Board Reauthorization Act of 2010''.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 1118(a) of title 49, United States 
     Code, is amended to read as follows:
       ``(a) In General.--There are authorized to be appropriated 
     for the purposes of this chapter $98,050,000 for fiscal year 
     2011 and $98,050,000 for fiscal year 2012. Such sums shall 
     remain available until expended.''.
       (b) Fees, Refunds, Reimbursements, and Advances.--Section 
     1118(c) of such title is amended to read as follows:
       ``(c) Fees, Refunds, Reimbursements, and Advances.--
       ``(1) In general.--The Board may impose and collect such 
     fees, refunds, reimbursements, and advances as it determines 
     to be appropriate for activities, services, and facilities 
     provided by or through the Board.
       ``(2) Receipts credited as offsetting collections.--
     Notwithstanding section 3302 of title 31, any fee, refund, 
     reimbursement, or advance collected under this subsection--
       ``(A) shall be credited as offsetting collections to the 
     account that finances the activities, services, or facilities 
     for which the fee, refund, reimbursement, or advance is 
     associated;
       ``(B) shall be available for expenditure only to pay the 
     costs of activities, services, or facilities for which the 
     fee, refund, reimbursement, or advance is associated; and
       ``(C) shall remain available until expended.
       ``(3) Record.--The Board shall maintain an annual record of 
     collections received under paragraph (2).
       ``(4) Refunds.--The Board may refund any fee or advance 
     paid by mistake or any amount paid in excess of that 
     required.''.

     SEC. 3. TECHNICAL CORRECTIONS.

       (a) Definitions.--Section 1101 of title 49, United States 
     Code, is amended by striking ``otherwise.'' and inserting 
     ``otherwise, and may include incidents not involving 
     destruction or damage, but significantly affecting 
     transportation safety, as the Board may prescribe or Congress 
     may direct.''.
       (b) General Organization.--Section 1111(d) of title 49, 
     United States Code, is amended by striking ``absent'' and 
     inserting ``unavailable''.
       (c) Administrative.--Section 1113 of title 49, United 
     States Code, is amended--
       (1) by inserting ``or depositions'' in paragraph (a)(1) 
     after ``hearings''; and
       (2) by inserting ``In the interest of transportation 
     safety, the Board shall have the authority by subpoena to 
     summon witnesses and obtain any and all evidence relevant to 
     an accident investigation conducted under this chapter.'' 
     after ``(2)'' in subsection (a)(2).
       (d) Disclosure, Availability, and Use of Information.--
     Section 1114 of title 49, United States Code, is amended--
       (1) by striking the heading for subsection (b) and 
     inserting ``(b) Trade Secrets; Commercial or Financial 
     Information.--'';
       (2) by inserting ``submitted to the Board in the course of 
     a Board investigation or study and'' in subsection (b)(1) 
     after ``information'' the first place it appears;
       (3) by striking ``title 18'' in subsection (b)(1) and 
     inserting ``title 18, or commercial or financial 
     information,'';
       (4) by striking ``safety'' in subsection (b)(1)(D) the 
     first place it appears and inserting ``safety, including 
     through the issuance of reports of accident investigation or 
     safety studies and safety recommendations,'';
       (5) by inserting ``subparagraphs (A) through (C) of'' after 
     ``under'' in subsection (b)(2);
       (6) by adding at the end of subsection (b) the following:
       ``(4) Each person submitting to the Board trade secrets, 
     commercial or financial information, or information that 
     could be classified as controlled under the International 
     Traffic in Arms Regulations shall appropriately annotate the 
     information to indicate the restricted nature of the 
     information in order to facilitate proper handling of such 
     materials by the Board.'';
       (7) by striking ``shall'' in paragraph(1)(A) of subsection 
     (f) and inserting ``may'';
       (8) by striking ``information'' in paragraph (2) of 
     subsection (f) and inserting ``information, or other relevant 
     information authorized for disclosure under this chapter,''; 
     and
       (9) by adding at the end thereof the following:
       ``(g) Ongoing Board Investigations.--(1) Notwithstanding 
     any other provision of law, neither the Board, nor any agency 
     receiving information from the Board, may publicly disclose 
     records related to an ongoing Board investigation, and such 
     records shall be exempt from disclosure under section 
     552(b)(3) of title 5. Notwithstanding the preceding sentence, 
     the Board may make public specific records relevant to the 
     investigation, release of which in the Board's judgment is 
     necessary to promote transportation safety--
       ``(A) if the Board holds a public hearing on the accident 
     or incident, at the time of the hearing;
       ``(B) if the Board does not hold a public hearing, at the 
     time the Board determines that substantial portions of the 
     underlying factual reports on the accident or incident, and 
     supporting evidence, will be placed in the public docket; or
       ``(C) if the Board determines during an ongoing 
     investigation or study that circumstances warrant disclosure 
     of specific factual material and that such material need be 
     placed in the public docket to facilitate dialogue with other 
     agencies or instrumentalities, regulatory bodies, industry or 
     industry groups, or Congress.
       ``(2) This subsection does not prevent the Board from 
     referring at any time to evidence from an ongoing 
     investigation in making safety recommendations.
       ``(3) In this subsection, the term `ongoing investigation' 
     means that period beginning at the time the Board is notified 
     of an accident or incident and ending when the Board issues a 
     final report or brief, or determines to close an 
     investigation without issuing a report or brief.''.
       (e) Reports and Studies--Section 1116(b) of title 49, 
     United States Code, is amended--
       (1) by striking ``carry out'' in paragraph (1) and 
     inserting ``conduct''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) prescribe requirements for persons reporting 
     accidents and incidents that may be investigated by the Board 
     under this chapter;''.
       (f) Discovery and Use of Cockpit and Surface Vehicle 
     Recordings and Transcripts.--Section 1154(a)(1)(A) of title 
     49, United States Code, is amended by striking ``and'' and 
     inserting ``or''.

     SEC. 4. AUTHORITY OF THE BOARD.

       (a) Evaluation and Audit.--Section 1138(a) of title 49, 
     United States Code, is amended by striking ``conducted at 
     least annually, but may be''.
       (b) Training of Board Employees and Others.--Section 
     1115(d) of title 49, United States Code, is amended--
       (1) by striking ``investigation.'' and inserting 
     ``investigation, including investigation theory and 
     techniques and transportation

[[Page 8245]]

     safety, to advance Board safety recommendations.'';
       (2) by striking ``training.'' and inserting ``training or 
     who influence transportation safety through support or 
     adoption of Board safety recommendations.''; and
       (3) by striking ``collections.'' and inserting 
     ``collections under the provisions of section 1118 of this 
     chapter.''.
       (c) Accident Investigation Authority.--Section 1131 of 
     title 49, United States Code, is amended--
       (1) by striking subsection (a)(1)(C) and inserting the 
     following:
       ``(C) a freight or passenger railroad accident in which 
     there is a fatality (other than a fatality involving a 
     trespasser), substantial property damage, or significant 
     injury to the environment;'';
       (2) by striking ``and'' after the semicolon in subsection 
     (a)(1)(E);
       (3) by inserting ``or incident'' after ``accident'' each 
     place it appears in subsection (a)(1)(F);
       (4) by striking ``chapter.'' in subsection (a)(1)(F) and 
     inserting ``chapter;'';
       (5) by adding at the end of subsection (a)(1) the 
     following:
       ``(G) an accident or incident in response to an 
     international request and delegation under appropriate 
     international conventions, coordinated through the Department 
     of State and accepted by the Board; and
       ``(H) an incident or incidents significantly affecting 
     transportation safety, as defined by the Board, under rules 
     and in such detail as the Board may prescribe.'';
       (6) by inserting ``or incident'' after ``accident'' each 
     place it appears in subsection (a)(3);
       (7) by inserting ``or relevant to'' after ``developed 
     about'' in subsection (a)(3);
       (8) by inserting ``and Incident'' after ``Accident'' in the 
     heading for subsection (e); and
       (9) by inserting ``and incident'' in subsection (e) after 
     ``each accident''.
       (d) Civil Aircraft and Maritime Accident Investigations.--
       (1) In general.--Section 1132 of title 49, United States 
     Code, is amended--
       (A) by inserting ``or have investigated'' in subsection 
     (a)(1) after ``investigate'';
       (B) by striking ``aircraft;'' in subsection (a)(1)(A) and 
     inserting ``aircraft or a commercial space launch vehicle;''; 
     and
       (C) by adding at the end the following:
       ``(e) Authority of Board Representative.--The Board may, 
     with the consent of the Secretary, delegate to the Department 
     of Transportation full authority to obtain the facts of any 
     aviation accident or incident the Board shall investigate, 
     and the on-scene representative of the Secretary shall have 
     the full authority of the Board to, on display of appropriate 
     credentials and written notice of inspection authority, enter 
     property where an aviation accident has occurred or wreckage 
     from the accident is located and do anything necessary to 
     gather evidence in support of a Board investigation, in 
     accordance with such rules as the Board may prescribe.
       ``(f) Maritime Accident Investigations.--The Board may, 
     with the consent of the Secretary of the department in which 
     the Coast Guard is operating, delegate to the Coast Guard 
     full authority to obtain the facts of any maritime accident 
     or incident the Board shall investigate, and the on-scene 
     representative of the Commandant of the Coast Guard shall 
     have the full authority of the Board to, on display of 
     appropriate credentials and written notice of inspection 
     authority, enter property where a maritime accident has 
     occurred or wreckage from the accident is located and do 
     anything necessary to gather evidence in support of a Board 
     investigation, in accordance with such rules as the Board may 
     prescribe.''.
       (2) Conforming amendments.--
       (A) The heading for section 1132 of title 49, United States 
     Code, is amended to read as follows:

     ``1132. Civil aircraft and maritime accident 
       investigations''.

       (B) The table of contents for chapter 11 of title 49, 
     United States Code, is amended by striking the item relating 
     to section 1132 and inserting the following:

``1132. Civil aircraft and maritime accident investigations''.

       (e) Inspections and Autopsies.--Section 1134 of title 49, 
     United States Code, is amended--
       (1) by striking ``officer or employee of the National 
     Transportation Safety Board--'' in subsection (a) and 
     inserting ``officer, employee, or designee of the National 
     Transportation Safety Board in the conduct of any accident or 
     incident investigation or 
     study--'';
       (2) by adding at the end of subsection (b)(1) the 
     following: ``The Board may download or seize any recording 
     device and recordings and may require specific information 
     only available from the manufacturer to enable the Board to 
     read and interpret any flight parameter or navigation storage 
     device or media on board the accident aircraft. The 
     provisions of section 1114(b) of this chapter shall apply to 
     matters properly identified as trade secrets or commercial or 
     financial information.''; and
       (3) by inserting after ``component.'' in subsection (c) the 
     following: ``The officer or employee may download or seize 
     any recording device and recordings, and may require the 
     production of specific information only available from the 
     manufacturer to enable the Board to read and interpret any 
     operational parameter or navigation storage device or media 
     on board the accident vehicle, vessel, or rolling stock. The 
     provisions of section 1114(b) of this chapter shall apply to 
     matters properly identified as trade secrets or commercial or 
     financial information.''.

     SEC. 5. AVIATION PENALTIES AND FAMILY ASSISTANCE.

       (a) Family Assistance in Commercial Aviation Accidents.--
     Section 41113(b)(7) of title 49, United States Code, is 
     amended by striking ``months.'' and inserting ``months and 
     that, prior to destruction of unclaimed possessions, a 
     reasonable attempt will be made to notify the family of each 
     passenger within 60 days of any planned destruction date.''.
       (b) Family Assistance in Commercial Aviation Accidents 
     Involving Foreign Carriers.--Section 41313(c)(7) of title 49, 
     United States Code, is amended by striking ``accident.'' and 
     inserting ``accident and that, prior to destruction of 
     unclaimed possessions, a reasonable attempt will be made to 
     notify the family of each passenger within 60 days of any 
     planned destruction date.''.

     SEC. 6. ACCIDENT-RELATED INFORMATION RELEASE POLICY REPORT.

       Within 180 days after the date of enactment of this Act, 
     the National Transportation Safety Board shall submit to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure a report describing the policies, procedures, 
     and guidelines used by the Board in the expedited release of 
     factual accident-related information to victims and their 
     families, Federal, State, and local accident investigators 
     and agencies, private or third party investigation partners, 
     the public, and other stakeholders.
                                 ______
                                 
  SA 4039. Mr. DORGAN (for Mr. Dodd (for himself and Mr. Rockefeller)) 
proposed an amendment to the bill S. 2768, to amend title 49, United 
States Code, to authorize appropriations for the National 
Transportation Safety Board for fiscal years 2011 and 2012, and for 
other purposes; as follows:

       Amend the title so as to read ``A Bill To amend title 49, 
     United States Code, to authorize appropriations for the 
     National Transportation Safety Board for fiscal years 2011 
     and 2012, and for other purposes.''
                                 ______
                                 
  SA 4040. Mrs. McCASKILL (for herself and Mr. Grassley) submitted an 
amendment intended to be proposed by her to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title I, insert the following:

     SEC. 122. ADDITIONAL OVERSIGHT OF FINANCIAL REGULATORY 
                   SYSTEM.

       (a) Council of Inspectors General on Financial Oversight.--
       (1) Establishment and membership.--There is established a 
     Council of Inspectors General on Financial Oversight (in this 
     section referred to as the ``Council of Inspectors General'') 
     chaired by the Inspector General of the Department of the 
     Treasury and composed of the inspectors general of the 
     following:
       (A) The Board of Governors of the Federal Reserve System.
       (B) The Commodity Futures Trading Commission.
       (C) The Department of Housing and Urban Development.
       (D) The Department of the Treasury.
       (E) The Federal Deposit Insurance Corporation.
       (F) The Federal Housing Finance Agency.
       (G) The National Credit Union Administration.
       (H) The Securities and Exchange Commission.
       (I) The Troubled Asset Relief Program (until the 
     termination of the authority of the Special Inspector General 
     for such program under section 121(k) of the Emergency 
     Economic Stabilization Act of 2008 (12 U.S.C. 5231(k))).
       (2) Duties.--
       (A) Meetings.--The Council of Inspectors General shall meet 
     not less than once each quarter, or more frequently if the 
     chair considers it appropriate, to facilitate the sharing of 
     information among inspectors general and to discuss the 
     ongoing work of each inspector general who is a member of the 
     Council of Inspectors General, with a focus on concerns that 
     may apply to the broader financial sector and ways to improve 
     financial oversight.
       (B) Annual report.--Each year the Council of Inspectors 
     General shall submit to the Council and to Congress a report 
     including--

[[Page 8246]]

       (i) for each inspector general who is a member of the 
     Council of Inspectors General, a section within the exclusive 
     editorial control of such inspector general that highlights 
     the concerns and recommendations of such inspector general in 
     such inspector general's ongoing and completed work, with a 
     focus on issues that may apply to the broader financial 
     sector; and
       (ii) a summary of the general observations of the Council 
     of Inspectors General based on the views expressed by each 
     inspector general as required by clause (i), with a focus on 
     measures that should be taken to improve financial oversight.
       (3) Working groups to evaluate council.--
       (A) Convening a working group.--The Council of Inspectors 
     General may, by majority vote, convene a Council of 
     Inspectors General Working Group to evaluate the 
     effectiveness and internal operations of the Council.
       (B) Personnel and resources.--The inspectors general who 
     are members of the Council of Inspectors General may detail 
     staff and resources to a Council of Inspectors General 
     Working Group established under this paragraph to enable it 
     to carry out its duties.
       (C) Reports.--A Council of Inspectors General Working Group 
     established under this paragraph shall submit regular reports 
     to the Council and to Congress on its evaluations pursuant to 
     this paragraph.
       (b) Response to Report by Council.--The Council shall 
     respond to the concerns raised in the report of the Council 
     of Inspectors General under subsection (a)(2)(B) for such 
     year.
                                 ______
                                 
  SA 4041. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 392, between lines 22 and 23, insert the following:
       ``(G) to coordinate with other Federal agencies (including 
     the Federal Emergency Management Agency), States (including 
     State insurance regulators), and insurance companies efforts 
     to facilitate the timely processing of flood insurance claims 
     by insurance companies and agents (including through 
     recommending best practices such as telephone hotlines for 
     victims or deployment of personnel of the Office to flood 
     areas) in any area for which the President declares a major 
     disaster under section 401 of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5170) relating 
     to flooding; and

                          ____________________