[House Report 107-798]
[From the U.S. Government Publishing Office]
Union Calendar No. 499
107th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 107-798
======================================================================
REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE
107TH CONGRESS
_______
January 2, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Oxley, from the Committee on Financial Services, submitted the
following
R E P O R T
Clause 1(d) of rule XI of the Rules of the House of
Representatives requires each standing Committee, not later
than January 2 of each odd-numbered year, submit to the House a
report on the activities of that committee, including separate
sections summarizing the legislative and oversight activities
of that committee during that Congress.
CONTENTS
Page
Letter of Transmittal............................................ 2
Jurisdiction..................................................... 3
Rules of the Committee........................................... 7
Membership and Organization...................................... 19
Legislative and Oversight Activities............................. 27
Full Committee................................................. 29
Subcommittee on Capital Markets, Insurance, and Government
Sponsored Enterprises........................................ 41
Subcommittee on Domestic Monetary Policy, Technology, and
Economic Growth.............................................. 53
Subcommittee on Financial Institutions and Consumer Credit..... 59
Subcommittee on Housing and Community Opportunity.............. 69
Subcommittee on International Monetary Policy and Trade........ 83
Subcommittee on Oversight and Investigations................... 93
Oversight Plan for the 107th Congress............................ 103
Implementation of the Oversight Plan for the 107th Congress...... 119
Appendix I--Measures Reported and Public Laws.................... 131
Appendix II--Committee Publications.............................. 133
LETTER OF TRANSMITTAL
----------
House of Representatives,
Committee on Financial Services,
Washington, DC, January 2, 2003.
Hon. Jeff Trandahl
Clerk, United States House of Representatives, Washington, D.C.
Dear Mr. Trandahl: Pursuant to clause 1(d) of rule XI of
the Rules of the House of Representatives for the 107th
Congress, I present herewith a report on the activity of the
Committee on Financial Services for the 107th Congress,
including the Committee's review and study of legislation
within its jurisdiction, and the oversight activities
undertaken by the Committee.
Sincerely,
Michael G. Oxley,
Chairman.
JURISDICTION
Rules of the House
Clause 1(g) of rule X of the Rules of the House of
Representatives sets forth the jurisdiction of the Committee on
Financial Services as follows--
(1) Banks and banking, including deposit insurance
and Federal monetary policy.
(2) Economic stabilization, defense production,
renegotiation, and control of the price of commodities,
rents, and services.
(3) Financial aid to commerce and industry (other
than transportation).
(4) Insurance generally.
(5) International finance.
(6) International financial and monetary
organization.
(7) Money and credit, including currency and the
issuance of notes and redemption thereof; gold and
silver, including the coinage thereof; valuation and
revaluation of the dollar.
(8) Public and private housing.
(9) Securities and exchanges.
(10) Urban development.
Memorandum of Understanding
The Committee on Financial Services was established when
the House agreed to H. Res. 5, establishing the Rules of the
House of Representatives for the 107th Congress, on January 3,
2001. The jurisdiction of the Committee on Financial Services
consists of the jurisdiction granted the Committee on Banking
and Financial Services in the 106th Congress, along with
jurisdiction over insurance generally and securities and
exchanges, matters which had previously been within the
jurisdiction of the Committee on Commerce in the 106th and
previous congresses. On January 20, 2001,\1\ the Speaker
inserted the following memorandum of understanding between the
chairmen of the Committee on Financial Services and the
Committee on Energy and Commerce further clarifying these
jurisdictional changes--
---------------------------------------------------------------------------
\1\ The version of the memorandum printed in the January 20, 2001
Congressional Record contained a typographic error. A corrected version
of the memorandum, which appears below, was printed in the January 30,
2001 edition of the Congressional Record.
January 20, 2001
On January 3, 2001, the House agreed to H. Res. 5,
establishing the rules of the House for the 107th Congress.
Section 2(d) of H. Res. 5 contained a provision renaming the
Banking Committee as the Financial Services Committee and
transferring jurisdiction over securities and exchanges and
insurance from the Commerce Committee to the Financial Services
Committee. The Commerce Committee was also renamed the Energy
and Commerce Committee.
The Committee on Energy and Commerce and the Committee on
Financial Services jointly acknowledge as the authoritative
source of legislative history concerning section 2(d) of H.
Res. 5 the following statement of Rules Committee Chairman
David Dreier during floor consideration of the resolution:
``In what is obviously one of our most significant changes,
Mr. Speaker, section 2(d) of the resolution establishes a new
Committee on Financial Services, which will have jurisdiction
over the following matters:
``(1) banks and banking, including deposit insurance and
Federal monetary policy;
``(2) economic stabilization, defense production,
renegotiation, and control of the price of commodities, rents,
and services;
``(3) financial aid to commerce and industry (other than
transportation);
``(4) insurance generally;
``(5) international finance;
``(6) international financial and monetary organizations;
``(7) money and credit, including currency and the issuance
of notes and redemption thereof; gold and silver, including the
coinage thereof; valuation and revaluation of the dollar;
``(8) public and private housing;
``(9) securities and exchanges; and
``(10) urban development.
``Mr. Speaker, jurisdiction over matters relating to
securities and exchanges is transferred in its entirety from
the Committee on Commerce, which will be redesignated under
this rules change to the Committee on Energy and Commerce, and
it will now be transferred from the new Committee on Energy and
Commerce to this new Committee on Financial Services. This
transfer is not intended to convey to the Committee on
Financial Services jurisdiction currently in the Committee on
Agriculture regarding commodity exchanges.
``Furthermore, this change is not intended to convey to the
Committee on Financial Services jurisdiction over matters
relating to regulation and SEC oversight of multi-State public
utility holding companies and their subsidiaries, which remain
essentially matters of energy policy.
``Mr. Speaker, as a result of the transfer of jurisdiction
over matters relating to securities and exchanges, redundant
jurisdiction over matters relating to bank capital markets
activities generally and depository institutions securities
activities, which were formerly matters in the jurisdiction of
the Committee on Banking and Financial Services, have been
removed from clause 1 of rule X.
``Matters relating to insurance generally, formerly within
the jurisdiction of the redesignated Committee on Energy and
Commerce, are transferred to the jurisdiction of the Committee
on Financial Services.
``The transfer of any jurisdiction to the Committee on
Financial Services is not intended to limit the Committee on
Energy and Commerce's jurisdiction over consumer affairs and
consumer protection matters.
``Likewise, existing health insurance jurisdiction is not
transferred as a result of this change.
``Furthermore, the existing jurisdictions of other
committees with respect to matters relating to crop insurance,
Workers' Compensation, insurance anti-trust matters, disaster
insurance, veterans' life and health insurance, and national
social security policy are not affected by this change.
``Finally, Mr. Speaker, the changes and legislative history
involving the Committee on Financial Services and the Committee
on Energy and Commerce do not preclude future memorandum of
understanding between the chairmen of these respective
committees.''
By this memorandum the two committees undertake to record
their further mutual understandings in this matter, which will
supplement the statement quoted above.
It is agreed that the Committee on Energy and Commerce will
retain jurisdiction over bills dealing broadly with electronic
commerce, including electronic communications networks (ECNs).
However, a bill amending the securities laws to address the
specific type of electronic securities transaction currently
governed by a special SEC regulation as an Alternative Trading
System (ATS) would be referred to the Committee on Financial
Services.
While it is agreed that the jurisdiction of the Committee
on Financial Services over securities and exchanges includes
anti-fraud authorities under the securities laws, the Committee
on Energy and Commerce will retain jurisdiction only over the
issue of setting of accounting standards by the Financial
Accounting Standards Board.
W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
Michael G. Oxley,
Chairman, Committee on Financial Services.
RULES OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE HUNDRED
SEVENTH CONGRESS
rule 1
general provisions
(a) The rules of the House are the rules of the Committee
on Financial Services (hereinafter in these rules referred to
as the ``Committee'') and its subcommittees so far as
applicable, except that a motion to recess from day to day, and
a motion to dispense with the first reading (in full) of a bill
or resolution, if printed copies are available, are privileged
motions in the Committee and shall be considered without
debate. A proposed investigative or oversight report shall be
considered as read if it has been available to the members of
the Committee for at least 24 hours (excluding Saturdays,
Sundays, or legal holidays except when the House is in session
on such day).
(b) Each subcommittee is a part of the Committee, and is
subject to the authority and direction of the Committee and to
its rules so far as applicable.
(c) The provisions of clause 2 of rule XI of the Rules of
the House are incorporated by reference as the rules of the
Committee to the extent applicable.
rule 2
meetings
Calling of Meetings
(a)(1) The Committee shall regularly meet on the first
Tuesday of each month when the House is in session.
(2) A regular meeting of the Committee may be
dispensed with if, in the judgment of the Chairman of
the Committee (hereinafter in these rules referred to
as the ``Chair''), there is no need for the meeting.
(3) Additional regular meetings and hearings of the
Committee may be called by the Chair, in accordance
with clause 2(g)(3) of rule XI of the rules of the
House.
(4) Special meetings shall be called and convened by
the Chair as provided in clause 2(c)(2) of rule XI of
the Rules of the House.
Notice for Meetings.
(b)(1) The Chair shall notify each member of the Committee
of the agenda of each regular meeting of the Committee at least
two calendar days before the time of the meeting.
(2) The Chair shall provide to each member of the
Committee, at least two calendar days before the time
of each regular meeting for each measure or matter on
the agenda a copy of--
(A) the measure or materials relating to the
matter in question; and
(B) an explanation of the measure or matter
to be considered, which, in the case of an
explanation of a bill, resolution, or similar
measure, shall include a summary of the major
provisions of the legislation, an explanation
of the relationship of the measure to present
law, and a summary of the need for the
legislation.
(3) The agenda and materials required under this
subsection shall be provided to each member of the
Committee at least three calendar days before the time
of the meeting where the measure or matter to be
considered was not approved for full Committee
consideration by a subcommittee of jurisdiction.
(4) The provisions of this subsection may be waived
by a two-thirds vote of the Committee, or by the Chair
with the concurrence of the ranking minority member.
rule 3
meeting and hearing procedures
In General
(a)(1) Meetings and hearings of the Committee shall be
called to order and presided over by the Chair or, in the
Chair's absence, by the member designated by the Chair as the
Vice Chair of the Committee, or by the ranking majority member
of the Committee present as Acting Chair.
(2) Meetings and hearings of the Committee shall be
open to the public unless closed in accordance with
clause 2(g) of rule XI of the Rules of the House.
(3) Any meeting or hearing of the Committee that is
open to the public shall be open to coverage by
television broadcast, radio broadcast, and still
photography in accordance with the provisions of clause
4 of rule XI of the Rules of the House (which are
incorporated by reference as part of these rules).
Operation and use of any Committee operated broadcast
system shall be fair and nonpartisan and in accordance
with clause 4(b) of rule XI and all other applicable
rules of the Committee and the House.
(4) Opening statements by members at the beginning of
any hearing or meeting of the Committee shall be
limited to 5 minutes each for the Chair or ranking
minority member, or their respective designee, and 3
minutes each for all other members.
(5) No person, other than a Member of Congress,
Committee staff, or an employee of a Member when that
Member has an amendment under consideration, may stand
in or be seated at the rostrum area of the Committee
rooms unless the Chair determines otherwise.
Quorum
(b)(1) For the purpose of taking testimony and receiving
evidence, two members of the Committee shall constitute a
quorum.
(2) A majority of the members of the Committee shall
constitute a quorum for the purposes of reporting any
measure or matter, of authorizing a subpoena, of
closing a meeting or hearing pursuant to clause 2(g) of
rule XI of the rules of the House (except as provided
in clause 2(g)(2)(A) and (B)) or of releasing executive
session material pursuant to clause 2(k)(7) of rule XI
of the rules of the House.
(3) For the purpose of taking any action other than
those specified in paragraph (2) one-third of the
members of the Committee shall constitute a quorum.
Voting
(c)(1) No vote may be conducted on any measure or matter
pending before the Committee unless the requisite number of
members of the Committee is actually present for such purpose.
(2) A record vote of the Committee shall be provided
on any question before the Committee upon the request
of one-fifth of the members present.
(3) No vote by any member of the Committee on any
measure or matter may be cast by proxy.
(4) In accordance with clause 2(e)(1)(B) of rule XI,
a record of the vote of each member of the Committee on
each record vote on any measure or matter before the
Committee shall be available for public inspection at
the offices of the Committee, and, with respect to any
record vote on any motion to report or on any
amendment, shall be included in the report of the
Committee showing the total number of votes cast for
and against and the names of those members voting for
and against.
Hearing Procedures
(d)(1)(A) The Chair shall make public announcement of the
date, place, and subject matter of any committee hearing at
least one week before the commencement of the hearing, unless
the Chair, with the concurrence of the ranking minority member,
or the Committee by majority vote with a quorum present for the
transaction of business, determines there is good cause to
begin the hearing sooner, in which case the Chair shall make
the announcement at the earliest possible date.
(B) Not less than three days before the
commencement of a hearing announced under this
paragraph, the Chair shall provide to the
members of the Committee a concise summary of
the subject of the hearing, or, in the case of
a hearing on a measure or matter, a copy of the
measure or materials relating to the matter in
question and a concise explanation of the
measure or matter to be considered.
(2) To the greatest extent practicable--
(A) each witness who is to appear before the
Committee shall file with the Committee two
business days in advance of the appearance
sufficient copies (including a copy in
electronic form), as determined by the Chair,
of a written statement of proposed testimony
and shall limit the oral presentation to the
Committee to brief summary thereof; and
(B) each witness appearing in a non-
governmental capacity shall include with the
written statement of proposed testimony a
curriculum vitae and a disclosure of the amount
and source (by agency and program) of any
Federal grant (or subgrant thereof) or contract
(or subcontract thereof) received during the
current fiscal year or either of the two
preceding fiscal years.
(3) The requirements of paragraph (2)(A) may be
modified or waived by the Chair when the Chair
determines it to be in the best interest of the
Committee.
(4) The five-minute rule shall be observed in the
interrogation of witnesses before the Committee until
each member of the Committee has had an opportunity to
question the witnesses. No member shall be recognized
for a second period of 5 minutes to interrogate
witnesses until each member of the Committee present
has been recognized once for that purpose.
(5) Whenever any hearing is conducted by the
Committee on any measure or matter, the minority party
members of the Committee shall be entitled, upon the
request of a majority of them before the completion of
the hearing, to call witnesses with respect to that
measure or matter during at least one day of hearing
thereon.
Subpoenas and Oaths
(e)(1) Pursuant to clause 2(m) of rule XI of the Rules of
the House, a subpoena may be authorized and issued by the
Committee or a subcommittee in the conduct of any investigation
or series of investigations or activities, only when authorized
by a majority of the members voting, a majority being present,
or pursuant to paragraph (2).
(2) The Chair, with the concurrence of the ranking
minority member, may authorize and issue subpoenas
under such clause during any period for which the House
has adjourned for a period in excess of 3 days when, in
the opinion of the Chair, authorization and issuance of
the subpoena is necessary to obtain the material or
testimony set forth in the subpoena. The Chair shall
report to the members of the Committee on the
authorization and issuance of a subpoena during the
recess period as soon as practicable, but in no event
later than one week after service of such subpoena.
(3) Authorized subpoenas shall be signed by the Chair
or by any member designated by the Committee, and may
be served by any person designated by the Chair or such
member.
(4) The Chair, or any member of the Committee
designated by the Chair, may administer oaths to
witnesses before the Committee.
Special Procedures
(f)(1)(A) Commemorative medals and coins.--It shall not be
in order for the Subcommittee on Domestic Monetary Policy,
Technology, and Economic Growth to hold a hearing on any
commemorative medal or commemorative coin legislation unless
the legislation is cosponsored by at least two-thirds of the
members of the House and has been recommended by the U.S.
Mint's Citizens Commemorative Coin Advisory Committee in the
case of a commemorative coin.
(B) It shall not be in order for the
subcommittee to approve a bill or measure
authorizing commemorative coins for
consideration by the full Committee which does
not conform with the mintage restrictions
established by section 5112 of title 31, United
States Code.
(C) In considering legislation authorizing
Congressional gold medals, the subcommittee
shall apply the following standards--
(i) the recipient shall be a natural
person;
(ii) the recipient shall have
performed an achievement that has an
impact on American history and culture
that is likely to be recognized as a
major achievement in the recipient's
field long after the achievement;
(iii) the recipient shall not have
received a medal previously for the
same or substantially the same
achievement;
(iv) the recipient shall be living
or, if deceased, shall have been
deceased for not less than 5 years and
not more than 25 years;
(v) the achievements were performed
in the recipient's field of endeavor,
and represent either a lifetime of
continuous superior achievements or a
single achievement so significant that
the recipient is recognized and
acclaimed by others in the same field,
as evidenced by the recipient having
received the highest honors in the
field.
(2) Testimony of certain officials.--
(A) Notwithstanding subsection (a)(4), when
the Chair announces a hearing of the Committee
for the purpose of receiving--
(i) testimony from the Chairman of
the Federal Reserve Board pursuant to
section 2B of the Federal Reserve Act
(12 U.S.C. 221 et seq.), or
(ii) testimony from the Chairman of
the Federal Reserve Board or a member
of the President's cabinet at the
invitation of the Chair,the Chair may,
in consultation with the ranking
minority member, limit the number and
duration of opening statements to be
delivered at such hearing. The
limitation shall be included in the
announcement made pursuant to
subsection (d)(1)(A), and shall provide
that the opening statements of all
members of the Committee shall be made
a part of the hearing record.
rule 4
procedures for reporting measures or matters
(a) No measure or matter shall be reported from the
Committee unless a majority of the Committee is actually
present.
(b) The Chair of the Committee shall report or cause to be
reported promptly to the House any measure approved by the
Committee and take necessary steps to bring a matter to a vote.
(c) The report of the Committee on a measure which has been
approved by the Committee shall be filed within 7 calendar days
(exclusive of days on which the House is not in session) after
the day on which there has been filed with the clerk of the
Committee a written request, signed by a majority of the
members of the Committee, for the reporting of that measure
pursuant to the provisions of clause 2(b)(2) of rule XIII of
the Rules of the House.
(d) All reports printed by the Committee pursuant to a
legislative study or investigation and not approved by a
majority vote of the Committee shall contain the following
disclaimer on the cover of such report: ``This report has not
been officially adopted by the Committee on Financial Services
and may not necessarily reflect the views of its Members.''
rule 5
subcommittees
Establishment and Responsibilities of Subcommittees
(a)(1) There shall be 6 subcommittees of the Committee as
follows:
(A) Subcommittee on capital markets,
insurance, and government sponsored
enterprises.--The jurisdiction of the
Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises includes--
(i) securities, exchanges, and
finance;
(ii) capital markets activities;
(iii) activities involving futures,
forwards, options, and other types of
derivative instruments;
(iv) secondary market organizations
for home mortgages including the
Federal National Mortgage Association,
the Federal Home Loan Mortgage
Corporation, and the Federal
Agricultural Mortgage Corporation;
(v) the Office of Federal Housing
Enterprise Oversight;
(vi) the Federal Home Loan Banks; and
(vii) insurance generally.
(B) Subcommittee on domestic monetary policy,
technology, and economic growth.--The
jurisdiction of the Subcommittee on Domestic
Monetary Policy, Technology, and Economic
Growth includes--
(i) financial aid to all sectors and
elements within the economy;
(ii) economic growth and
stabilization;
(iii) defense production matters as
contained in the Defense Production Act
of 1950, as amended;
(iv) domestic monetary policy, and
agencies which directly or indirectly
affect domestic monetary policy,
including the effect of such policy and
other financial actions on interest
rates, the allocation of credit, and
the structure and functioning of
domestic financial institutions;
(v) coins, coinage, currency, and
medals, including commemorative coins
and medals, proof and mint sets and
other special coins, the Coinage Act of
1965, gold and silver, including the
coinage thereof (but not the par value
of gold), gold medals, counterfeiting,
currency denominations and design, the
distribution of coins, and the
operations of the Bureau of the Mint
and the Bureau of Engraving and
Printing; and
(vi) development of new or
alternative forms of currency.
(C) Subcommittee on financial institutions
and consumer credit.--The jurisdiction of the
Subcommittee on Financial Institutions and
Consumer Credit includes--
(i) all agencies, including the
Office of the Comptroller of the
Currency, the Federal Deposit Insurance
Corporation, the Board of Governors of
the Federal Reserve System and the
Federal Reserve System, the Office of
Thrift Supervision, and the National
Credit Union Administration, which
directly or indirectly exercise
supervisory or regulatory authority in
connection with, or provide deposit
insurance for, financial institutions,
and the establishment of interest rate
ceilings on deposits;
(ii) the chartering, branching,
merger, acquisition, consolidation, or
conversion of financial institutions;
(iii) consumer credit, including the
provision of consumer credit by
insurance companies, and further
including those matters in the Consumer
Credit Protection Act dealing with
truth in lending, extortionate credit
transactions, restrictions on
garnishments, fair credit reporting and
the use of credit information by credit
bureaus and credit providers, equal
credit opportunity, debt collection
practices, and electronic funds
transfers;
(iv) creditor remedies and debtor
defenses, Federal aspects of the
Uniform Consumer Credit Code, credit
and debit cards, and the preemption of
State usury laws;
(v) consumer access to financial
services, including the Home Mortgage
Disclosure Act and the Community
Reinvestment Act;
(vi) the terms and rules of
disclosure of financial services,
including the advertisement, promotion
and pricing of financial services, and
availability of government check
cashing services;
(vii) deposit insurance; and
(viii) consumer access to savings
accounts and checking accounts in
financial institutions, including
lifeline banking and other consumer
accounts.
(D) Subcommittee on housing and community
opportunity.--The jurisdiction of the
Subcommittee on Housing and Community
Opportunity includes--
(i) housing (except programs
administered by the Department of
Veterans Affairs), including mortgage
and loan insurance pursuant to the
National Housing Act; rural housing;
housing and homeless assistance
programs; all activities of the
Government National Mortgage
Association; private mortgage
insurance; housing construction and
design and safety standards; housing-
related energy conservation; housing
research and demonstration programs;
financial and technical assistance for
nonprofit housing sponsors; housing
counseling and technical assistance;
regulation of the housing industry
(including landlord/tenant relations);
and real estate lending including
regulation of settlement procedures;
(ii) community development and
community and neighborhood planning,
training and research; national urban
growth policies; urban/rural research
and technologies; and regulation of
interstate land sales;
(iii) government sponsored insurance
programs, including those offering
protection against crime, fire, flood
(and related land use controls),
earthquake and other natural hazards;
and
(iv) the qualifications for and
designation of Empowerment Zones and
Enterprise Communities (other than
matters relating to tax benefits).
(E) Subcommittee on international monetary
policy and trade.--The jurisdiction of the
Subcommittee on International Monetary Policy
and Trade includes--
(i) multilateral development lending
institutions, including activities of
the National Advisory Council on
International Monetary and Financial
Policies as related thereto, and
monetary and financial developments as
they relate to the activities and
objectives of such institutions;
(ii) international trade, including
but not limited to the activities of
the Export-Import Bank;
(iii) the International Monetary
Fund, its permanent and temporary
agencies, and all matters related
thereto; and
(iv) international investment
policies, both as they relate to United
States investments for trade purposes
by citizens of the United States and
investments made by all foreign
entities in the United States;
(F) Subcommittee on oversight and
investigations.--The jurisdiction of the
Subcommittee on Oversight and Investigations
includes--
(i) the oversight of all agencies,
departments, programs, and matters
within the jurisdiction of the
Committee, including the development of
recommendations with regard to the
necessity or desirability of enacting,
changing, or repealing any legislation
within the jurisdiction of the
Committee, and for conducting
investigations within such
jurisdiction; and
(ii) research and analysis regarding
matters within the jurisdiction of the
Committee, including the impact or
probable impact of tax policies
affecting matters within the
jurisdiction of the Committee.
(2) In addition, each such subcommittee shall
have specific responsibility for such other
measures or matters as the Chair refers to it.
(3) Each subcommittee of the Committee shall
review and study, on a continuing basis, the
application, administration, execution, and
effectiveness of those laws, or parts of laws,
the subject matter of which is within its
general responsibility.
Referral of Measures and Matters to Subcommittees
(b)(1)The Chair shall regularly refer to one or more
subcommittees such measures and matters as the Chair deems
appropriate given its jurisdiction and responsibilities. In
making such a referral, the Chair may designate a subcommittee
of primary jurisdiction and subcommittees of additional or
sequential jurisdiction.
(2) All other measures or matters shall be subject to
consideration by the full Committee.
(3) In referring any measure or matter to a
subcommittee, the Chair may specify a date by which the
subcommittee shall report thereon to the Committee.
(4) The Committee by motion may discharge a
subcommittee from consideration of any measure or
matter referred to a subcommittee of the Committee.
Composition of Subcommittees
(c)(1) Members shall be elected to each subcommittee and to
the positions of Chair and ranking minority member thereof, in
accordance with the rules of the respective party caucuses. The
Chair of the Committee shall designate a member of the majority
party on each subcommittee as its vice chair.
(2) The Chair and ranking minority member of the
Committee shall be ex officio members with voting
privileges of each subcommittee of which they are not
assigned as members and may be counted for purposes of
establishing a quorum in such subcommittees.
(3) The subcommittees shall be comprised as follows:
(A) The Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises
shall be comprised of 47 members, 25 elected by
the majority caucus and 22 elected by the
minority caucus.
(B) The Subcommittee on Domestic Monetary
Policy, Technology, and Economic Growth shall
be comprised of 26 members, 14 elected by the
majority caucus and 12 elected by the minority
caucus.
(C) The Subcommittee on Financial
Institutions and Commercial Credit shall be
comprised of 47 members, 25 elected by the
majority caucus and 22 elected by the minority
caucus.
(D) The Subcommittee on Housing and Community
Opportunity shall be comprised of 26 members,
14 elected by the majority caucus and 12
elected by the minority caucus.
(E) The Subcommittee on International
Monetary Policy and Trade shall be comprised of
26 members, 14 elected by the majority caucus
and 12 elected by the minority caucus.
(F) The Subcommittee on Oversight and
Investigations shall be comprised of 20
members, 11 elected by the majority caucus and
9 elected by the minority caucus.
Subcommittee Meetings and Hearings
(d)(1) Each subcommittee of the Committee is authorized to
meet, hold hearings, receive testimony, mark up legislation,
and report to the full Committee on any measure or matter
referred to it, consistent with subsection (a).
(2) No subcommittee of the Committee may meet or hold
a hearing at the same time as a meeting or hearing of
the Committee.
(3) The Chair of each subcommittee shall set hearing
and meeting dates only with the approval of the Chair
with a view toward assuring the availability of meeting
rooms and avoiding simultaneous scheduling of Committee
and subcommittee meetings or hearings.
Effect of a Vacancy
(e) Any vacancy in the membership of a subcommittee shall
not affect the power of the remaining members to execute the
functions of the subcommittee as long as the required quorum is
present.
Records
(f) Each subcommittee of the Committee shall provide the
full Committee with copies of such records of votes taken in
the subcommittee and such other records with respect to the
subcommittee as the Chair deems necessary for the Committee to
comply with all rules and regulations of the House.
rule 6
staff
In General
(a)(1) Except as provided in paragraph (2), the
professional and other staff of the Committee shall be
appointed, and may be removed by the Chair, and shall work
under the general supervision and direction of the Chair.
(2) All professional and other staff provided to the
minority party members of the Committee shall be
appointed, and may be removed, by the ranking minority
member of the Committee, and shall work under the
general supervision and direction of such member.
(3) It is intended that the skills and experience of
all members of the Committee staff be available to all
Members of the Committee.
Subcommittee Staff
(b) From funds made available for the appointment of staff,
the Chair of the Committee shall, pursuant to clause 6(d) of
rule X of the Rules of the House, ensure that sufficient staff
is made available so that each subcommittee can carry out its
responsibilities under the rules of the Committee and that the
minority party is treated fairly in the appointment of such
staff.
Compensation of Staff
(c)(1) Except as provided in paragraph (2), the Chair shall
fix the compensation of all professional and other staff of the
Committee.
(2) The ranking minority Member shall fix the
compensation of all professional and other staff
provided to the minority party members of the
Committee.
rule 7
budget and travel
Budget
(a)(1) The Chair, in consultation with other members of the
Committee, shall prepare for each Congress a budget providing
amounts for staff, necessary travel, investigation, and other
expenses of the Committee and its subcommittees.
(2) From the amount provided to the Committee in the
primary expense resolution adopted by the House of
Representatives, the Chair, after consultation with the
ranking minority Member, shall designate an amount to
be under the direction of the ranking minority Member
for the compensation of the minority staff, travel
expenses of minority members and staff, and minority
office expenses. All expenses of minority Members and
staff shall be paid for out of the amount so set aside.
Travel
(b)(1) The Chair may authorize travel for any member and
any staff member of the Committee in connection with activities
or subject matters under the general jurisdiction of the
Committee. Before such authorization is granted, there shall be
submitted to the Chair in writing the following:
(A) The purpose of the travel.
(B) The dates during which the travel is to
occur.
(C) The names of the States or countries to
be visited and the length of time to be spent
in each.
(D)The names of members and staff of the
Committee for whom the authorization is sought.
(2) Members and staff of the Committee shall make a
written report to the Chair on any travel they have
conducted under this subsection, including a
description of their itinerary, expenses, and
activities, and of pertinent information gained as a
result of such travel.
(3) Members and staff of the Committee performing
authorized travel on official business shall be
governed by applicable laws, resolutions, and
regulations of the House and of the Committee on House
Administration.
rule 8
committee administration
Records
(a)(1) There shall be a transcript made of each regular
meeting and hearing of the Committee, and the transcript may be
printed if the Chair decides it is appropriate or if a majority
of the members of the Committee requests such printing. Any
such transcripts shall be a substantially verbatim account of
remarks actually made during the proceedings, subject only to
technical, grammatical, and typographical corrections
authorized by the person making the remarks. Nothing in this
paragraph shall be construed to require that all such
transcripts be subject to correction and publication.
(2) The Committee shall keep a record of all actions
of the Committee and of its subcommittees. The record
shall contain all information required by clause
2(e)(1) of rule XI of the Rules of the House and shall
be available for public inspection at reasonable times
in the offices of the Committee.
(3) All Committee hearings, records, data, charts,
and files shall be kept separate and distinct from the
congressional office records of the Chair, shall be the
property of the House, and all Members of the House
shall have access thereto as provided in clause 2(e)(2)
of rule XI of the Rules of the House.
(4) The records of the Committee at the National
Archives and Records Administration shall be made
available for public use in accordance with rule VII of
the Rules of the House of Representatives. The Chair
shall notify the ranking minority member of any
decision, pursuant to clause 3(b)(3) or clause 4(b) of
the rule, to withhold a record otherwise available, and
the matter shall be presented to the Committee for a
determination on written request of any member of the
Committee.
Committee Publications on the Internet
(b) To the maximum extent feasible, the Committee shall
make its publications available in electronic form.
MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON FINANCIAL SERVICES
ONE HUNDRED SEVENTH CONGRESS
(Ratio: 37-32-1)
COMMITTEE ON FINANCIAL SERVICES
MICHAEL G. OXLEY, Ohio, Chairman
JAMES A. LEACH, Iowa JOHN J. LAFALCE, New York
MARGE ROUKEMA, New Jersey BARNEY FRANK, Massachusetts
Vice Chair PAUL E. KANJORSKI, Pennsylvania
DOUG BEREUTER, Nebraska MAXINE WATERS, California
RICHARD H. BAKER, Louisiana CAROLYN B. MALONEY, New York
SPENCER BACHUS, Alabama LUIS V. GUTIERREZ, Illinois
MICHAEL N. CASTLE, Deleware NYDIA M. VELAZQUEZ, New York
PETER T. KING, New York MELVIN L. WATT, North Carolina
EDWARD R. ROYCE, California GARY L. ACKERMAN, New York
FRANK D. LUCAS, Oklahoma KEN BENTSEN, Texas
ROBERT W. NEY, Ohio JAMES H. MALONEY, Connecticut
BOB BARR, Georgia DARLENE HOOLEY, Oregon
SUE W. KELLY, New York JULIA CARSON, Indiana
RON PAUL, Texas BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio MAX SANDLIN, Texas
CHRISTOPHER COX, California GREGORY W. MEEKS, New York
DAVE WELDON, Florida BARBARA LEE, California
JIM RYUN, Kansas FRANK MASCARA, Pennsylvania
BOB RILEY, Alabama JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio JANICE D. SCHAKOWSKY, Illinois
DONALD A. MANZULLO, Illinois DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina CHARLES A. GONZALEZ, Texas
DOUG OSE, California STEPHANIE TUBBS JONES, Ohio
JUDY BIGGERT, Illinois MICHAEL E. CAPUANO, Massachusetts
MARK GREEN, Wisconsin HAROLD E. FORD, Jr., Tennesee
PATRICK J. TOOMEY, Pennsylvania RUBEN HINOJOSA, Texas
CHRISTOPHER SHAYS, Connecticut KEN LUCAS, Kentucky
JOHN B. SHADEGG, Arizona RONNIE SHOWS, Mississippi
VITO FOSSELLA, New York JOSEPH CROWLEY, New York
GARY G. MILLER, California WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia STEVE ISRAEL, New York
FELIX J. GRUCCI, Jr., New York MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania BERNARD SANDERS, Vermont*
SHELLEY MOORE CAPITO, West Virginia
MIKE FERGUSON, New Jersey
MIKE ROGERS, Michigan
PATRICK J. TIBERI, Ohio
---------------------------------------------------------------------------
* Mr. Sanders is an independent, but caucuses with the Democratic
Caucus.
The following members are on leave from the Committee on
Financial Services: Mr. Dreier, ranking immediately after Mr. Bereuter;
Ms. Pryce and Mr. Linder, ranking immediately after Mr. Baker; Ms.
Myrick, ranking immediately after Mr. Paul; and Mr. Sessions, ranking
immediately after Mr. Riley.
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SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Capital Markets, Insurance and Government Sponsored
Enterprises
(Ratio: 25-22)
RICHARD H. BAKER, Louisiana, Chairman
ROBERT W. NEY, Ohio PAUL E. KANJORSKI, Pennsylvania
Vice Chairman GARY L. ACKERMAN, New York
CHRISTOPHER SHAYS, Connecticut NYDIA M. VELAZQUEZ, New York
CHRISTOPHER COX, California KEN BENTSEN, Texas
PAUL GILLMOR, Ohio MAX SANDLIN, Texas
RON PAUL, Texas JAMES H. MALONEY, Connecticut
SPENCER BACHUS, Alabama DARLENE HOOLEY, Oregon
MICHAEL N. CASTLE, Deleware FRANK R. MASCARA, Pennsylvania
EDWARD R. ROYCE, California STEPHANIE TUBBS JONES, Ohio
FRANK D. LUCAS, Oklahoma MICHAEL CAPUANO, Massachusetts
BOB BARR, Georgia BRAD SHERMAN, California
WALTER B. JONES, Jr., North GREGORY MEEKS, New York
Carolina JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio DENNIS MOORE, Kansas
JOHN B. SHADEGG, Arizona CHARLIE GONZALEZ, Texas
DAVE WELDON, Florida HAROLD E. FORD, Jr., Tennesee
JIM RYUN, Kansas RUBEN HINOJOSA, Texas
BOB RILEY, Alabama KEN LUCAS, Kentucky
VITO FOSSELLA, New York RONNIE SHOWS, Mississippi
JUDY BIGGERT, Illinois JOSEPH CROWLEY, New York
GARY C. MILLER, California STEVE ISRAEL, New York
DOUG OSE, California MIKE ROSS, Arkansas
PATRICK J. TOOMEY, Pennsylvania JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey Ex Officio
MELISSA A. HART, Pennsylvania
MIKE ROGERS, Michigan
MICHAEL G. OXLEY, Ohio
Ex Officio
Subcommittee on Domestic Monetary Policy, Technology, and Economic
Growth
(Ratio: 14-12)
PETER T. KING, New York, Chairman
JAMES A. LEACH, Iowa CAROLYN B. MALONEY, New York
Vice Chairman BARNEY FRANK, Massachusetts
EDWARD R. ROYCE, California GREGORY MEEKS, New York
FRANK D. LUCAS, Oklahoma BERNIE SANDERS, Vermont
RON PAUL, Texas JAMES H. MALONEY, Connecticut
STEVEN C. LATOURETTE, Ohio DARLENE HOOLEY, Oregon
DOUG OSE, California MAX SANDLIN, Texas
MARK GREEN, Wisconsin CHARLIE GONZALEZ, Texas
CHRISTOPHER SHAYS, Connecticut MICHAEL CAPUANO, Massachusetts
JOHN B. SHADEGG, Arizona RUBEN HINOJOSA, Texas
VITO FOSSELLA, New York WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, Jr., New York MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania JOHN J. LAFALCE, New York
SHELLEY MOORE CAPITO, West Virginia Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
Subcommittee on Financial Institutions and Consumer Credit
(Ratio: 25-22)
SPENCER BACHUS, Alabama, Chairman
DAVE WELDON, Florida MAXINE WATERS, California
Vice Chairman CAROLYN MALONEY, New York
MARGE ROUKEMA, New Jersey MELVIN WATT, North Carolina
DOUG BEREUTER, Nebraska GARY ACKERMAN, New York
RICHARD H. BAKER, Louisiana KEN BENTSEN, Texas
MICHAEL N. CASTLE, Deleware BRAD SHERMAN, California
EDWARD R. ROYCE, California MAX SANDLIN, Texas
FRANK D. LUCAS, Oklahoma GREGORY MEEKS, New York
BOB BARR, Georgia LUIS GUTIERREZ, Illinois
SUE W. KELLY, New York FRANK MASCARA, Pennsylvania
PAUL E. GILLMOR, Ohio DENNIS MOORE, Kansas
JIM RYUN, Kansas CHARLES A. GONZALEZ, Texas
BOB RILEY, Alabama PAUL KANJORSKI, Pennsylvania
STEVEN C. LATOURETTE, Ohio NYDIA M. VELAZQUEZ, New York\5\
DONALD A. MANZULLO, Illinois JAMES H. MALONEY, Connecticut
WALTER B. JONES, North Carolina DARLENE HOOLEY, Oregon
JUDY BIGGERT, Illinois JULIA CARSON, Indiana
PATRICK J. TOOMEY, Pennsylvania HAROLD E. FORD, JR., Tennesee
ERIC CANTOR, Virginia RUBEN HINOJOSA, Texas
FELIX J. GRUCCI, JR., New York KEN LUCAS, Kentucky
MELISSA A. HART, Pennsylvania RONNIE SHOWS, Mississippi
SHELLEY MOORE CAPITO, West Virginia JOSEPH CROWLEY, New York
MIKE FERGUSON, New Jersey JOHN J. LAFALCE, New York
MIKE ROGERS, Michigan Ex Officio
PATRICK J. TIBERI, Ohio
MICHAEL G. OXLEY, Ohio
Ex Officio
---------------------------------------------------------------------------
\5\ Ms. Velazquez was added to the Subcommittee on Financial
Institutions and Consumer Credit on May 9, 2001, replacing Ms. Lee, who
was removed by unanimous consent.
---------------------------------------------------------------------------
Subcommittee on Housing and Community Opportunity
(Ratio: 14-12)
MARGE ROUKEMA, New Jersey, Chair
MARK GREEN, Wisconsin BARNEY FRANK, Massachusetts
Vice Chairman NYDIA VELAZQUEZ, New York
DOUG BEREUTER, Nebraska JULIA CARSON, Indiana
SPENCER BACHUS, Alabama BARBARA LEE, California
PETER T. KING, New York JAN SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio STEPHANIE TUBBS JONES, Ohio
BOB BARR, Georgia MICHAEL CAPUANO, Massachusetts
SUE W. KELLY, New York MAXINE WATERS, California
BOB RILEY, Alabama BERNARD SANDERS, Vermont*
GARY G. MILLER, California MELVIN WATT, North Carolina
ERIC CANTOR, Virginia WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, JR., New York STEVE ISRAEL, New York
MIKE ROGERS, Michigan JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
Subcommittee on International Monetary Policy and Trade
(Ratio: 14-12)
DOUG BEREUTER, Nebraska, Chairman
DOUG OSE, California BERNARD SANDERS, Vermont*
Vice Chairman MAXINE WATERS, California
MARGE ROUKEMA, New Jersey BARNEY FRANK, Massachusetts
RICHARD H. BAKER, Louisiana MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Deleware JULIA CARSON, Indiana
JIM RYUN, Kansas BARBARA LEE, California\6\
DONALD A. MANZULLO, Illinois PAUL E. KANJORSKI, Pennsylvania
JUDY BIGGERT, Illinois BRAD SHERMAN, California
MARK GREEN, Wisconsin JANICE D. SCHAKOWSKY, Illinois
PATRICK J. TOOMEY, Pennsylvania CAROLYN B. MALONEY, New York
CHRISTOPHER SHAYS, Connecticut LUIS V. GUTIERREZ, Illinois
GARY G. MILLER, California KEN BENTSEN, Texas
SHELLEY MOORE CAPITO, West Virginia JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
---------------------------------------------------------------------------
* Mr. Sanders is an independent, but caucuses with the Democratic
Caucus.
\6\ Ms. Lee was added to the Subcommittee on International Monetary
Policy and Trade on May 9, 2001, replacing Ms. Velazquez who was
removed by unanimous consent.
---------------------------------------------------------------------------
Subcommittee on Oversight and Investigations
(Ratio: 11-9)
SUE KELLY, New York, Chair
RON PAUL, Texas LUIS V. GUTIERREZ, Illinois
Vice Chairman JAY INSLEE, Washington
PETER T. KING, New York JANICE D. SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio DENNIS MOORE, Kansas
CHRISTOPHER COX, California STEPHANIE TUBBS JONES, Ohio\7\
DAVE WELDON, Florida MICHAEL E. CAPUANO, Massachusetts
WALTER B. JONES, North Carolina RONNIE SHOWS, Mississippi
JOHN B. SHADEGG, Arizona JOSEPH CROWLEY, New York
VITO FOSSELLA, New York WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio Ex Officio
MICHAEL G. OXLEY, OH
Ex Officio
---------------------------------------------------------------------------
\7\ Ms. Jones of Ohio was added to the Subcommittee on Oversight
and Investigations on May 9, 2001, replacing Mr. Bentsen who was
removed by unanimous consent.
---------------------------------------------------------------------------
Committee Staff
majority staff
----------
minority staff
------------
LEGISLATIVE AND OVERSIGHT ACTIVITY
During the 107th Congress, 368 bills were referred to the
Committee on Financial Services. The Full Committee reported to
the House or was discharged from the further consideration of
33 measures (not including conference reports). Nineteen
measures regarding issues within the Committee's jurisdiction
were enacted into law.
The following is a summary of the legislative and oversight
activities of the Committee on Financial Services during the
107th Congress, including a summary of the activities taken by
the Committee to implement its Oversight Plan for the 107th
Congress.
COMMITTEE ON FINANCIAL SERVICES
full committee
(Ratio: 37-32-1)
MICHAEL G. OXLEY, Ohio, Chairman
JAMES A. LEACH, Iowa JOHN J. LAFALCE, New York
MARGE ROUKEMA, New Jersey BARNEY FRANK, Massachusetts
Vice Chair PAUL E. KANJORSKI, Pennsylvania
DOUG BEREUTER, Nebraska MAXINE WATERS, California
RICHARD H. BAKER, Louisiana CAROLYN B. MALONEY, New York
SPENCER BACHUS, Alabama LUIS V. GUTIERREZ, Illinois
MICHAEL N. CASTLE, Deleware NYDIA M. VELAZQUEZ, New York
PETER T. KING, New York MELVIN L. WATT, North Carolina
EDWARD R. ROYCE, California GARY L. ACKERMAN, New York
FRANK D. LUCAS, Oklahoma KEN BENTSEN, Texas
ROBERT W. NEY, Ohio JAMES H. MALONEY, Connecticut
BOB BARR, Georgia DARLENE HOOLEY, Oregon
SUE W. KELLY, New York JULIA CARSON, Indiana
RON PAUL, Texas BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio MAX SANDLIN, Texas
CHRISTOPHER COX, California GREGORY W. MEEKS, New York
DAVE WELDON, Florida BARBARA LEE, California
JIM RYUN, Kansas FRANK MASCARA, Pennsylvania
BOB RILEY, Alabama JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio JANICE D. SCHAKOWSKY, Illinois
DONALD A. MANZULLO, Illinois DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina CHARLES A. GONZALEZ, Texas
DOUG OSE, California STEPHANIE TUBBS JONES, Ohio
JUDY BIGGERT, Illinois MICHAEL E. CAPUANO, Massachusetts
MARK GREEN, Wisconsin HAROLD E. FORD, Jr., Tennesee
PATRICK J. TOOMEY, Pennsylvania RUBEN HINOJOSA, Texas
CHRISTOPHER SHAYS, Connecticut KEN LUCAS, Kentucky
JOHN B. SHADEGG, Arizona RONNIE SHOWS, Mississippi
VITO FOSSELLA, New York JOSEPH CROWLEY, New York
GARY G. MILLER, California WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia STEVE ISRAEL, New York
FELIX J. GRUCCI, Jr., New York MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania BERNARD SANDERS, Vermont*
SHELLEY MOORE CAPITO, West Virginia
MIKE FERGUSON, New Jersey
MIKE ROGERS, Michigan
PATRICK J. TIBERI, Ohio
---------------------------------------------------------------------------
* Mr. Sanders is an independent, but caucuses with the Democratic
Caucus.
---------------------------------------------------------------------------
Legislative Activities
financial anti-terrorism act
Public Law 107-56 (H.R. 3162; H.R. 3004)
To combat the financing of terrorism and other financial
crimes, and for other purposes.
Summary
Title III of H.R. 3162 contained many of the provisions of
H.R. 3004, the Financial Anti-Terrorism Act. The legislation
contains provisions to strengthen law enforcement authorities,
as well as enhance public-private cooperation between
government and industry in disrupting terrorist funding.
The legislation (1) makes it a crime to smuggle over
$10,000 into or out of the United States, and to transport more
than $10,000 in criminal proceeds across State lines; (2) gives
the Justice Department new prosecutorial tools to combat
terrorist-related and other money laundering through U.S.
financial institutions; (3) provides statutory authorization
for the Financial Crimes Enforcement Network (FinCEN), which
analyzes reports filed by financial institutions on currency
transactions and suspicious financial activity; (4) sets up a
unit in FinCEN directed at oversight and analysis of hawalas
and other underground black market banking systems; (5) directs
the Treasury to develop regulations to guide financial
institutions in verifying the identity of customers who open
accounts at the institution; (6) directs the Treasury
Department to establish a secure web site to receive electronic
filings of Suspicious Activity Reports (SARs) and provide
financial institutions with alerts and other information
regarding patterns of terrorist or other suspicious activity
that warrant enhanced scrutiny; (7) requires the Secretary of
the Treasury to report quarterly to industry on how SARs are
used to assist law enforcement in combating terrorism and other
crimes; (8) authorizes intelligence agency access to reports
filed by financial institutions and expands government access
to consumer financial records and credit histories; (9) sets a
December 31, 2001, deadline for proposed regulations on SAR
reporting requirements for broker-dealers and authorizes the
Department of the Treasury to require SARs of certain commodity
futures traders; (11) authorizes the Secretary of the Treasury
to impose `special measures' if a foreign country, financial
institution, transaction, or account is deemed to be a `primary
money laundering concern'; (12) prohibits U.S. financial
institutions from providing banking services to `shell' banks
that have no physical presence in any country nor any
affiliation with a financial institution; (13) requires greater
due diligence for certain correspondent and private banking
accounts; (14) authorizes Treasury to regulate concentration
accounts; (15) requires financial institutions to have anti-
money laundering programs; and (16) updates U.S. anti-
counterfeiting laws.
Legislative History
H.R. 3004, the Financial Anti-Terrorism Act, was introduced
by Mr. Oxley and 17 original cosponsors on October 3, 2001, and
referred to the Committee on Financial Services, and
additionally to the Committees on the Judiciary, and Ways and
Means. On October 11, 2001, the Committee on Financial Services
met in open session and ordered the bill reported by a record
vote of 62 yeas and 1 nay.
On October 17, 2001, the Committee on Financial Services
reported the bill to the House (H. Rept. 107-250, Part I) and
the Committees on Judiciary and Ways and Means were discharged
from the further consideration of the bill. On October 17,
2001, the House considered H.R. 3004 under suspension of the
rules and passed the bill by a record vote of 412 yeas and 1
nay. The bill was received in the Senate and referred to the
Senate Committee on Banking, Housing, and Urban Affairs.
The provisions of H.R. 3004, as negotiated with the Senate,
were incorporated into title III of H.R. 3162, the Uniting and
Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001. H.R. 3162 was introduced by Mr. Sensenbrenner and one
original cosponsor of on October 23, 2001 and referred to the
Committee on the Judiciary and additionally to the Committees
on Intelligence (Permanent Select), Financial Services,
International Relations, Energy and Commerce, Education and the
Workforce, Transportation and Infrastructure, and Armed
Services.
On October 23, 2001, the House considered H.R. 3162 under
suspension of the rules and passed the bill on October 24, 2001
by a record vote of 357 yeas and 66 nays. The bill was received
in the Senate on October 24, 2001 and passed by unanimous
consent on October 25, 2001, clearing the bill for the White
House.
H.R. 3162 was presented to the President on October 25,
2001, and signed into law on October 26, 2001, becoming public
law 107-56.
the terrorism risk insurance act of 2002
Public Law 107-297 (H.R. 3210; S. 2600)
To ensure the continued financial capacity of insurers to
provide coverage for risks from terrorism.
Summary
The Act establishes the Terrorism Insurance Program in the
Department of the Treasury under which the Federal government
will share the risk of loss from future terrorist attacks with
the commercial property and casualty insurance marketplace, for
a temporary period of time. The Secretary of the Treasury will
administer the Program and pay the Federal share of
compensation for insured losses. The Federal government pays 90
percent of insured losses in excess of an insurer's deductible,
while the insurer pays 10 percent. Insurers may reinsure their
insurer deductibles and 10 percent co-shares. Losses covered by
the Program will be capped at $100 billion per year; above this
amount, Congress will determine the procedures for and the
source of any payments.
Before receiving Federal assistance under this Act, an
insurer must certify its claim for payment of insured losses,
that a policyholder (or person acting on the policyholder's
behalf) has filed a claim for such loss, and the insurer's
compliance with the Act. The Secretary may not reimburse an
insurer for such losses unless the insurer has provided clear
and conspicuous disclosure to the policyholder of the premium
charged for terrorism coverage and the Federal share of
compensation. This disclosure to the policyholder must occur at
the time of offer, purchase, and renewal of the policy for
policies issued after the date of enactment, and must be made
on a separate line item in the policy with respect to policies
issued more than 90 days after enactment. For policies issued
before the date of enactment, the disclosure must be made
within 90 days of such date. Insurers must submit premium and
claims information to the Secretary who may investigate and
audit all claims under the Program.
Each entity meeting the definition of insurer under this
legislation is required to participate in the Program. During
the first two years of the Program each such insurer must make
available in all of its property and casualty insurance
policies coverage for insured losses, and shall make such
coverage available on terms that do not differ materially from
the terms, amounts, and other coverage limitations applicable
to losses arising from events other than acts of terrorism. The
Secretary has discretion to extend this requirement to the
third year of the Program, to preserve this important option
for policyholders.
The Secretary can require full repayment of any Federal
assistance by the industry, with mandatory repayment for any
Federal assistance provided for non-catastrophic losses under
the established retention levels. This insurance marketplace
retention is set at $10 billion in Program year 1 (including
any remainder of 2002), $12.5 billion in Program year 2, and
$15 billion in Program year 3. Federal assistance within the
retention above the insurer deductibles and 10 percent co-
shares must be recouped while additional amounts of Federal
assistance may be recouped based on economic factors in the
judgment of the Secretary. Mandatory recoupment within the
insurance marketplace retention is through terrorism loss risk-
spreading premiums (surcharges) paid by all commercial property
and casualty policyholders based on premium rates with any
year's surcharge (mandatory and discretionary combined) capped
at 3 percent of the premium charged for property and casualty
insurance coverage under the policy in each such year. The
Secretary has discretion over the timing of recoupment, and to
adjust amounts for urban, smaller commercial, and rural areas,
as well as for different lines of insurance, so long as the
mandatory amounts are ultimately recouped. The Secretary may
assess civil penalties on insurers for submission of false or
misleading information or failure to repay the Secretary for
any amount required to be repaid, or for other failure to
comply with the provisions of this title.
The Secretary is also directed to conduct an expedited
study to determine whether adequate and affordable catastrophe
reinsurance for acts of terrorism is available to group life
insurers and whether the threat of terrorism is reducing the
availability of group life insurance for consumers. Should the
Secretary determine that terrorism coverage is not or will not
be reasonably available to insurers and consumers, the
Secretary would be required to include group life insurance in
the Terrorism Insurance Program. In so doing, the Secretary
would have discretion to determine the most appropriate way to
include group life insurance in the Program.
The Secretary, after consultation with the NAIC, is also
directed to conduct a study of the potential effects of acts of
terrorism on the availability of life insurance generally and
other lines of insurance coverage, including personal lines, to
be submitted to Congress not later than 9 months from the date
of enactment.
Commercial property and casualty terrorism insurance
exclusions that are in force on the date of the enactment of
this legislation are voided to the extent that they exclude
losses that would otherwise be insured losses. Any State
approval of any commercial property and casualty terrorism
insurance exclusion in force on the date of enactment is also
void to the extent that it excludes losses that would otherwise
be insured losses.
Until the end of 2003, States will be required to allow
rate and form changes to take effect immediately but retain
authority to disapprove any rates as excessive, inadequate, or
unfairly discriminatory and, where a State has prior approval
authority for forms, subsequent review of such forms is
permitted.
The Program creates an exclusive Federal action to address
claims arising from terrorist attacks, preempting corollary
State actions and jurisdiction (although State substantive law
would continue to apply). Claims can be consolidated in the
appropriate Federal courts by the Judicial Panel on
Multidistrict Litigation. The Program does not provide payments
for punitive damages from the Federal government.
The Program backstop lasts for slightly over 3 years,
terminating on December 31, 2005. Title II allows victims of
terrorism to obtain satisfaction of judgments from blocked
assets of terrorists. Title III creates certain emergency
authority of the Board of Governors of the Federal Reserve
System.
Legislative History
H.R. 3210 was introduced in the House on November 1, 2001,
by Mr. Oxley and 30 original cosponsors. The bill was referred
to the Committee on Financial Services and in addition to the
Committee on Ways and Means and the Committee on the Budget.
The House Committee on Financial Services held two hearings
and a roundtable discussion prior to introduction of the bill
On September 26, 2001, the Full Committee held a hearing
entitled, ``America's Insurance Industry: Keeping the
Promise.'' The Subcommittee on Capital Markets, Insurance and
Government Sponsored Enterprises held a hearing October 24,
2001, entitled, ``Protecting Policymakers from Terrorism:
Private Sector Solutions.'' Finally, the Subcommittee on
Capital Markets, Insurance and Government Sponsored Enterprises
held a roundtable Discussion on Terrorism Risk Insurance on
October 31, 2001.
The Committee on Financial Services met in open session on
November 7, 2001, and ordered H.R. 3210 reported to the House
with a favorable recommendation, with an amendment, by a voice
vote. On November 19, 2001 the Committee on Ways and Means met
in open session and ordered H.R. 3210 reported to the House,
with an amendment, by a voice vote. On November 26, 2001, the
Committees on the Budget and Judiciary were discharged from the
further consideration of the bill.
On November 28, 2001 the Committee on Rules met and
reported a rule providing for consideration of H.R. 3210 with
one hour of general debate (H. Res. 297) and making a specified
amendment in order.
On November 29, H.Res. 297 was agreed to by a record vote
of 216 yeas and 202 nays. The House then considered and passed
H.R. 3210 by a record vote of 227 yeas and 193 nays.
On November 30, 2001, H.R. 3210 was received in the Senate,
read the first time and placed on the Senate Legislative
Calendar under Read the First Time. On December 3, 2001, H.R.
3210 was read the second time and placed on the Senate
Legislative Calendar under General Orders.
On November July 25, 2002, H.R. 3210 was laid before Senate
by unanimous consent, the Senate struck all after the Enacting
Clause and substituted the language of S. 2600 as amended, and
H.R. 3210 passed the Senate with an amendment by Unanimous
Consent. A Conference was requested and conferees were
appointed.
On September 10, 2002, the House instructed conferees with
respect to a provision regarding satisfaction of judgments by
terrorist victims of blocked assets of terrorists, by a vote of
373-0.
On November 13, 2002, the conference report to accompany
H.R. 3210 (H. Rept. 107-779) was filed in the House.
On November 13, 2002, the Committee on Rules reported a
rule providing for the consideration of the conference report
(H.Res. 607), which was agreed to on November 14, 2002, by a
voice vote. On November 14, 2002, the conference report was
agreed to in the House by voice vote.
On November 19, 2002, the conference report was agreed to
in the Senate by a roll call vote of 86 yeas and 11 nays,
clearing the bill for the White House. The bill was presented
to the President on November 22, 2002, and signed into law on
November 26, 2002, becoming public law number 107-297.
second export-import bank extension
Public Law 107-186 (H.R. 4782)
To extend the authority of the Export-Import Bank until
June 14, 2002.
Summary
The bill extended the authority of the Export-Import Bank
through June 14, 2002.
Legislative History
On May 21, 2002, H.R. 4782 was introduced in the House by
Mr. Oxley and referred to the Committee on Financial Services.
On May 21, 2002, the House considered H.R. 4782 under
suspension of the rules and passed the bill by a voice vote.
On May 22, 2002, the bill was received in the Senate, and
passed by unanimous consent, clearing it for the White House.
H.R. 4782 was presented to the President on May 29, 2002, and
signed into law on May 30, 2002, becoming public law 107-186.
defense production amendments act of 2001
Public Law 107-47 (H.R. 2510)
To extend the expiration date of the Defense Production Act
of 1950, and for other purposes.
Summary
H.R. 2510 authorized the extension of the Defense
Production Act of 1950 (DPA) for two years beyond its September
30, 2001 expiration. The legislation also makes technical
corrections to the DPA. The underlying act itself uses economic
tools to provide prompt, adequate and uninterrupted supplies of
industrial resources to satisfy both national security needs
and needs arising from civil emergencies.
Legislative History
H.R. 2510 was introduced on July 17, 2001 by Mr. King (by
request), with one original cosponsor. The Committee on
Financial Services met in open session on July 25, 2001 and
ordered H.R. 2510 reported to the House with a favorable
recommendation, by a voice vote. The Committee reported the
bill to the House on July 30, 2001 (H. Rept. 107-173).
On September 5, 2001, the House considered the bill under
suspension of the rules and agreed to by voice vote.
On September 6, 2001, the bill was received in the Senate
and referred to the Committee on Banking, Housing, and Urban
Affairs. The committee discharged the legislation by Unanimous
Consent on September 21, 2001 and the measure was laid before
the Senate by unanimous consent. On September 21, 2001, the
Senate passed the bill with an amendment by unanimous consent.
On September 25, 2001, the House concurred in the Senate
amendment with further amendments by unanimous consent. On
September 26, 2001, the Senate agreed to the House amendments
to the Senate Amendments by unanimous consent and clearing the
bill for the White House.
On October 1, 2001, the legislation was presented to the
President, and signed on October 5, 2001 becoming public law
number 107-47.
mark-to-market extension act
Public Law 107-116 (H.R. 2589; H.R. 3061)
To amend the Multifamily Assisted Housing Reform and
Affordability Act of 1997 to reauthorize the Office of
Multifamily Housing Assistance Restructuring, and for other
purposes.
Summary
H.R. 2589, the Mark-to-Market Extension Act of 2001,
extends the Office of Multifamily Housing Assistance
Restructuring through October 1, 2004, and reauthorizes the
mark-to-market program through October 1, 2006. In addition,
H.R. 2589 simplifies issues of jurisdiction and coordination by
requiring the Program Director to report directly to the
Federal Housing Commissioner and eliminates the need for Senate
confirmation of the Director.
Legislative History
H.R. 2589 was introduced by Mrs. Roukema and one original
cosponsor on July 23, 2001 and referred to the Committee on
Financial Services.
The Committee met in open session on July 25, 2001 to
consider H.R. 2589 and ordered the bill reported to the House
with a favorable recommendation by a voice vote. The Committee
reported the bill to the House on September 5, 2001 (H. Rept.
107-196).
On September 24, 2001, the House considered H.R. 2589 under
suspension of the rules and passed the bill by a voice vote.
The bill was received in the Senate on September 25, 2001 and
placed on the Senate legislative calendar. No further action
was taken on this measure in the 107th Congress.
The text of the measure was included in title VI of H.R.
3061, the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002. The
conference report to accompany H.R. 3061 (H. Rept. 107-342) was
considered by the House on December 19, 2001, and agreed to by
a record vote of 393 yeas and 30 nays. The Senate considered
the conference report by unanimous consent on December 20, 2001
and agreed to the conference report by a record vote of 90 yeas
and 7 nays, clearing the bill for the White House.
The bill was presented to the President on January 4, 2002,
and signed into law on January 10, 2001, becoming public law
107-116.
emergency securities response act of 2001
(H.R. 3060)
To provide the Securities and Exchange Commission (SEC)
with enhanced authority to respond to extraordinary market
disturbances.
Summary
H.R. 3060, the Emergency Securities Response Act of 2001,
extends the duration of a SEC emergency order issued pursuant
to section 12(k)(2) of the Securities Exchange Act of 1934 (15
U.S.C. 78l(k)(2)) from ten to 30 business days, and under
certain circumstances, up to a total of 90 calendar days.
Legislative History
On September 26, 2001, the Committee held a hearing on the
state of the nation's financial markets in the wake of the
terrorist attacks of September 11, at which SEC Chairman Harvey
Pitt testified with respect to the Nation's securities markets.
Pursuant to requests by Members of the Committee at that
hearing, Chairman Pitt submitted a request for expanded
emergency authority under section 12(k)(2).
H.R. 3060 was introduced in the House by Mr. Oxley and 4
original cosponsors on October 9, 2001 and was referred to the
Committee on Financial Services.
On November 11, 2001, the Committee met in open session and
ordered H.R. 3060 reported with a favorable recommendation to
the House, without amendment, by a voice vote. The Committee
reported the bill to the House on November 13, 2001 (H.Rept.
107-283).
H.R. 3060 was considered by the House under suspension of
the rules on November 13, 2001 and passed the House by a voice
vote. On November 14, 2001, the bill was received in the Senate
and referred to the Senate Committee on Banking, Housing, and
Urban Affairs.
No further action was taken on H.R. 3060 in the 107th
Congress.
north american development bank
(H.R. 5400)
To authorize the President of the United States to agree to
certain amendments to the Agreement between the Government of
the United States of America and the Government of the United
Mexican States concerning the establishment of a Border
Environment Cooperation Commission and a North American
Development Bank, and for other purposes.
Summary
H.R. 5400 authorizes the President to agree to the
amendments to the North American Development Bank (NADBank)
Cooperation Agreement that do the following: enable the NADBank
to make grants and non-market rate loans out of its paid-in
capital resources with the approval of its Board; and amend the
definition of the NADBank ``border region'' to include the area
in the United States that is within 100 kilometers of the
international boundary between the United States and Mexico,
and the area in Mexico that is within 300 kilometers of the
international boundary line between the Mexico and the United
States. H.R. 5400 requires Treasury to submit an annual report
to Congress on the NADBank. H.R. 5400 also contains a series of
sense of Congresses which address the water conservation fund
of the NADBank.
Legislative History
On September 18, 2002, Mr. Bereuter introduced H.R. 5400
with 3 original cosponsors, and the bill was referred to the
Committee on Financial Services. On September 26, 2002, the
Committee on Financial Services met in open session and ordered
H.R. 5400 reported to the House, with an amendment, by a voice
vote. The Committee on Financial Services reported the bill to
the House on October 3, 2002 (H. Rept. 107-720). The Committee
filed a supplemental report containing the cost estimate of the
Congressional Budget Office on October 7, 2002 (H. Rept. 107-
720, Part II).
On October 10, 2002, the House passed H.R. 5400 by
unanimous consent. The bill was received in the Senate on
October 15, 2002. No further action was taken on this measure
in the 107th Congress.
Oversight Activities
reports on the conduct of monetary policy
On February 28 and July 18, 2001, and February 27 and July
17, 2002, the Committee received testimony from the Chairman of
the Federal Reserve Board, Alan Greenspan, on the conduct of
monetary policy. The report continued a tradition of twice-
yearly reports by the Fed Chairman to the committees of
jurisdiction in the House and Senate that formerly were
referred to as ``Humphrey-Hawkins'' hearings after the act that
required the testimony.
terrorism insurance
On September 26, 2001, the Committee on Financial Services
held a Full Committee hearing entitled America's Insurance
Industry: Keeping the Promise. The hearing focused on the
insurance industry's response to the September 11th terrorist
attacks. The hearing began with an update on the Nation's
financial markets from Securities and Exchange Chairman Harvey
Pitt. The New York Insurance Department, National Association
of Insurance Commissioners, and several insurance industry CEOs
then discussed how the immediate human needs of the victims of
the September 11th tragedy were being met by insurers, and
confirmed the financial strength of the U.S. insurance
industry. An analyst from A.M. Best Company also spoke to the
strength of the industry and its ability to pay claims in
response to the tragedy. Also raised at the hearing was the
possible need for the Federal government to create a backstop
for terrorism insurance for any future terrorist events.
the worldcom fraud
On July 8, 2002 the Committee on Financial Services held a
hearing entitled, ``Wrong Numbers: the Accounting Problems at
WorldCom.'' On June 25, 2002, WorldCom announced that an
internal audit found transfers of expenses from expense
accounts to capital expenditure accounts (thereby deferring and
not immediately recognizing the costs), in violation of
generally accepted accounting principles (GAAP). The amount of
the transfers was $3.055 billion for 2001 and $797 million for
first quarter 2002. Without these transfers, the company would
have reported a net loss for 2001 and for the first quarter of
2002. The purpose of the hearing was to gain further insight
into the scope and nature of the fraudulent transactions and
the individuals involved at WorldCom.
terrorist financing: a progress report on implementation of the usa
patriot act
On September 19, 2002, the full Committee held a hearing to
review the government's implementation of the terrorist finance
and anti-money laundering provisions of the USA PATRIOT Act,
enacted into law on October 26, 2001. The hearing highlighted
the Bush administration's efforts to identify and disrupt the
channels used to finance global terrorism, including informal
or underground financial networks, charitable organizations,
and the precious metals trade. The hearing also examined the
Treasury Department's progress in developing regulations
implementing specific provisions of the PATRIOT Act, as well as
the administration's diplomatic initiatives to enlist the
cooperation of other countries in combating terrorist
financing. Testifying were Robert S. Mueller, Director of the
Federal Bureau of Investigation; Deputy Secretary of Treasury
Kenneth W. Dam; and Alan Larson, Under Secretary of State for
Economic, Business and Agricultural Affairs.
hud respa reform
On July 29, 2002, HUD published its proposed rule to reform
the Real Estate Settlement Procedures Act RESPA in the Federal
Register (67 Fed. Reg. 49134) for a 90-day public comment
period which ended on October 28, 2002.
The proposal addresses the issue of loan originator
compensation. It improves HUD's Good Faith Estimate (GFE)
settlement cost disclosures and HUD's related RESPA
regulations. Also, the rule promotes competition by removing
regulatory barriers to allow guaranteed packages of settlement
services and mortgages to be made available to consumers.
The Committee on Financial Services held a hearing on
October 3, 2002, entitled ``Reforming the Real Estate
Settlement Procedure: Review of HUD's proposed RESPA Rule''.
The Honorable Mel Martinez, Secretary of the Department of
Housing and Urban Development, was the only witness to testify.
Hearings Held
Conduct of Monetary Policy. Hearing to receive the
testimony of the Chairman of the Federal Reserve Board of
Governors on monetary policy and the state of the economy.
February 28, 2001. PRINTED, serial no. 107-1.
State of the International Financial System and IMF Reform.
Hearing to receive the testimony of the Secretary of the
Treasury on the state of the international financial system and
IMF reform. May 22, 2001. PRINTED, serial no. 107-19.
The California Energy Crisis: Causes, Impacts, and
Remedies. Hearing entitled ``The California Energy Crisis:
Causes, Impacts, and Remedies.'' June 20, 2001. PRINTED, serial
no. 107-26.
Conduct of Monetary Policy. Hearing to receive the
testimony of the Chairman of the Federal Reserve Board of
Governors on monetary policy and the state of the economy. July
18, 2001. PRINTED, serial no. 107-35.
America's Insurance Industry: Keeping the Promise. Hearing
entitled ``America's Insurance Industry: Keeping the Promise.''
September 26, 2001. PRINTED, serial no. 107-45.
Dismantling the Financial Infrastructure of Global
Terrorism. Hearing entitled ``Dismantling the Financial
Infrastructure of Global Terrorism.'' October 3, 2001. PRINTED,
serial no. 107-46.
Conduct of Monetary Policy. Hearing to receive the
testimony of the Chairman of the Federal Reserve Board of
Governors on monetary policy and the state of the economy.
February 27, 2002. PRINTED, serial no. 107-56.
State of the International Financial System and IMF Reform.
Hearing to receive the testimony of the Secretary of the
Treasury on the state of the international financial system and
IMF reform. February 28, 2002. PRINTED, serial no. 107-58.
Corporate and Auditing Accountability, Responsibility, and
Transparency Act of 2002. Legislative hearing on H.R. 3763, the
Corporate and Auditing Accountability, Responsibility, and
Transparency Act of 2002. March 13 and 20, and April 9, 2002.
PRINTED, serial no. 107-60.
European Union's Financial Services Action Plan and its
Implications for the American Financial Services Industry.
Hearing on the European Union's Financial Services Action Plan
and its implications for the American financial services
industry. May 22, 2002. Serial no. 107-70.
Wrong Numbers: The Accounting Problems at WorldCom. Hearing
entitled ``Wrong Numbers: The Accounting Problems at WorldCom.
July 8, 2002. Serial no. 107-74.
Conduct of Monetary Policy. Hearing to receive the
testimony of the Chairman of the Federal Reserve Board of
Governors on monetary policy and the state of the economy. July
17, 2002. Serial no. 107-76.
Terrorist Financing: A Progress Report on the
Implementation of the USA PATRIOT Act. Hearing entitled
``Terrorist Financing: A Progress Report on the Implementation
of the USA PATRIOT Act. September 19, 2002. Serial no. 107-83.
Reforming the Real Estate Settlement Procedure: Review of
HUD's Proposed RESPA Rule. Hearing entitled ``Reforming the
Real Estate Settlement Procedure: Review of HUD's Proposed
RESPA Rule.'' October 3, 2002. Serial no. 107-85.
SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE, AND GOVERNMENT SPONSORED
ENTERPRISES
(Ratio: 25-22)
RICHARD H. BAKER, Louisiana, Chairman
ROBERT W. NEY, Ohio PAUL E. KANJORSKI, Pennsylvania
Vice Chairman GARY L. ACKERMAN, New York
CHRISTOPHER SHAYS, Connecticut NYDIA M. VELAZQUEZ, New York
CHRISTOPHER COX, California KEN BENTSEN, Texas
PAUL GILLMOR, Ohio MAX SANDLIN, Texas
RON PAUL, Texas JAMES H. MALONEY, Connecticut
SPENCER BACHUS, Alabama DARLENE HOOLEY, Oregon
MICHAEL N. CASTLE, Deleware FRANK R. MASCARA, Pennsylvania
EDWARD R. ROYCE, California STEPHANIE TUBBS JONES, Ohio
FRANK D. LUCAS, Oklahoma MICHAEL CAPUANO, Massachusetts
BOB BARR, Georgia BRAD SHERMAN, California
WALTER B. JONES, Jr., North GREGORY MEEKS, New York
Carolina JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio DENNIS MOORE, Kansas
JOHN B. SHADEGG, Arizona CHARLIE GONZALEZ, Texas
DAVE WELDON, Florida HAROLD E. FORD, Jr., Tennesee
JIM RYUN, Kansas RUBEN HINOJOSA, Texas
BOB RILEY, Alabama KEN LUCAS, Kentucky
VITO FOSSELLA, New York RONNIE SHOWS, Mississippi
JUDY BIGGERT, Illinois JOSEPH CROWLEY, New York
GARY C. MILLER, California STEVE ISRAEL, New York
DOUG OSE, California MIKE ROSS, Arkansas
PATRICK J. TOOMEY, Pennsylvania JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey Ex Officio
MELISSA A. HART, Pennsylvania
MIKE ROGERS, Michigan
MICHAEL G. OXLEY, Ohio
Ex Officio
Legislative Activities
investor and capital markets fee relief act
Public Law 107-123 (H.R. 1088, S. 143)
To amend the Securities Exchange Act of 1934 to reduce fees
collected by the Securities and Exchange Commission, and for
other purposes.
Summary
H.R. 1088, the Investor and Capital Markets Fee Relief Act,
addresses the excessive fees paid by participants in the
capital markets, which had generated revenues exceeding the
budget of the Securities and Exchange Commission (SEC) by over
600 percent. The Act reduces all SEC fees, including
transaction fees, registration fees, merger/tender fees, and
single stock future transaction fees. In addition, the Act
addresses the problem of the difficulty of the SEC to retain
top professional staff at current pay levels, especially in
light of the disparate pay that SEC staff received as compared
with the staff at the Federal banking regulatory agencies.
Accordingly, the Act provides for pay parity for SEC staff, in
order to bring their pay up to the level of comparable
employees at those other financial regulatory agencies.
Legislative History
H.R. 1088 was introduced in the House by Mr. Fossella and 3
original cosponsors on March 19, 2001. The bill was referred
solely to the Committee on Financial Services. On March 20,
2001, the bill was referred to the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises.
The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises held a hearing entitled
``Saving Investors Money: Reducing Excessive SEC fees'' on
March 7, 2001. The Subcommittee received testimony from the
Securities and Exchange Commission, the Senate sponsors of a
similar measure, S. 143, and various market participants.
The Subcommittee met in open session on March 21, 2001 and
approved the bill for full Committee consideration by a voice
vote. The full Committee met on March 28, 2001 and ordered the
bill reported to the House, with an amendment, with a favorable
recommendation by a voice vote. The Committee reported the bill
to the House on May 1, 2001 (H.Rept. 107-52, Part I) and the
bill was sequentially referred to the House Committee on
Government Reform. The Committee on Government Reform was
discharged of the further consideration of the bill on May 25,
2001.
On June 12, 2001, the Committee on Rules reported a
modified closed rule providing for the consideration of H.R.
1088 (H.Res. 161) which was agreed to on June 14, 2001 by a
record vote of 408 yeas and 12 nays. The House considered and
passed the bill on June 14, 2001 by a record vote of 404 yeas
and 22 nays.
The bill was received in the Senate on June 14, 2001 and
placed on the Senate legislative calendar. On December 20,
2001, the Senate passed the bill by unanimous consent, clearing
the bill for the White House.
H.R. 1088 was presented to the President on January 4, 2002
and signed into law on January 16, 2002, becoming public law
number 107-123.
sarbanes-oxley act of 2002
Public Law 107-204 (H.R. 3763; H.R. 3764; S. 2673)
To protect investors by improving the accuracy and
reliability of corporate disclosures made pursuant to the
securities laws, and for other purposes.
Summary
The legislation provides for new controls and monitoring
mechanisms over the accounting and investment banking
industries, and establishes new rules on corporate governance.
The Act's major provisions include: creation of the Public
Company Accounting Oversight Board, an independent oversight
body to oversee public accountants; requiring companies to
disclose, on a rapid and current basis, material changes in
their financial condition or operations; increased criminal
penalties for white collar crime; enhanced SEC review of
corporate disclosures; prevention of sales of securities by
insiders during blackout periods that apply to employees' stock
holdings in retirement plans; prohibitions of loans to
executives; authorization for the SEC to direct funds it
collects in connection with civil penalties against securities
law violators to be included in disgorgement funds for
investors; requirement that CEO and CFO certify financial
statements; restrictions on non-audit services to audit
clients; mandatory audit partner rotation; and enhanced
firewalls at investment banks between securities research
analysts and investment bankers.
Legislative History
H.R. 3763, the Corporate and Auditing Accountability,
Responsibility, and Transparency Act of 2002, was introduced on
February 14, 2002 by Mr. Oxley and 26 cosponsors and referred
to the Committee on Financial Services. H.R. 3764, the
Securities and Exchange Commission Authorization Act of 2002,
was also introduced on February 14, 2002 with 22 original
cosponsors. On March 4, 2002, both bills were referred to the
Subcommittee on Capital Markets, Insurance, and Government
Sponsored Enterprises.
The full Committee held 3 days of a legislative hearing on
H.R. 3764 on March 13, 20, and April 9, 2002, and heard from a
number of public and private witnesses regarding the merits of
the legislation. On April 11, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises was
discharged from the further consideration of the bill by
unanimous consent, and the full Committee met in open session
to consider H.R. 3763 and H.R. 3764. H.R. 3764 was ordered
reported to the House with a favorable recommendation, with an
amendment, by a voice vote. The Committee continued its
consideration of H.R. 3763 on April 16, 2002, when the bill was
ordered reported to the House with a favorable recommendation,
with an amendment, by a voice vote.
Both H.R. 3763 and H.R. 3764 were reported to the House on
April 22, 2002 (H.Rept. 107-414 and H.Rept. 107-415,
respectively). A supplemental report on H.R. 3764, containing
the cost estimate of the Congressional Budget Office, was filed
with the House on April 24, 2002 (H.Rept. 107-415, Part II).
On April 23, 2002, the Committee on Rules reported a
modified closed rule to the House (H.Res. 395). The House
agreed to H.Res. 395 on April 24, 2002 by a voice vote. The
House considered and passed H.R. 3763 by a record vote of 334
yeas and 90 nays on April 24, 2002.
The bill was received in the Senate and referred to the
Senate Committee on Banking, Housing, and Urban Affairs on
April 25, 2002.
On June 25, 2002, the House considered H.R. 3764 under
suspension of the rules, and the House passed the bill on June
26, 2002 by a record vote of 422 yeas and 4 nays. H.R. 3764 was
received in the Senate and referred to the Senate Committee on
Banking, Housing, and Urban Affairs.
On July 15, 2002, the Senate Committee on Banking, Housing,
and Urban Affairs was discharged from the further consideration
of H.R. 3763 by unanimous consent. The measure was laid before
the Senate, amended with the text of S. 2673 as amended, and
passed by unanimous consent. The Senate insisted on its
amendment, and appointed conferees on July 17, 2002.
On July 17, 2002, the House disagreed to the Senate
amendment and agreed to the conference requested by the Senate
by unanimous consent. A motion to instruct conferees offered by
Mr. Conyers was not agreed to by a record vote of 207 yeas and
218 nays. Conferees were appointed from the Committee on
Financial Services, the Committee on Education and the
Workforce, the Committee on Energy and Commerce, the Committee
on the Judiciary, and the Committee on Ways and Means.
The provisions of H.R. 3764 were included in the conference
report to accompany H.R. 3763.
The Conferees met on July 19, 2002, the House chairing, and
the conference report was filed in the House on July 24, 2002
(H.Rept. 107-610). The Conference report was considered
pursuant to a unanimous consent agreement on July 25, 2002, and
agreed to by a record vote of 423 yeas and 3 nays.
On July 25, 2002, the Senate agreed to the conference
report by a record vote of 99 yeas and no nays, clearing the
measure for the White House. The bill was presented to the
President on July 26, 2002 and signed on July 30, 2002,
becoming public law number 107-204.
financial services antifraud network act
(H.R. 1408)
To safeguard the public from fraud in the financial
services industry, to streamline and facilitate the antifraud
information-sharing efforts of Federal and State regulators,
and for other purposes.
Summary
H.R. 1408, the Financial Services Antifraud Network Act of
2001, directs Federal and State financial regulators, to the
extent practicable and appropriate, to develop procedures to
provide for a network for the sharing of antifraud information.
In addition to coordinating the different regulators' computer
systems, H.R. 1408 establishes the first industry-wide
comprehensive protections for confidentiality, privacy, and
security, of government information shared through the network
on regulated entities. It also directs the regulators to
provide certain minimum due process rights where adverse
actions are taken against a person. To further protect
information shared between regulators, H.R. 1408 establishes
certain limited legal privileges and confidentiality and
liability protections for regulatory and supervisory
information.
H.R. 1408 also allows State insurance regulators to perform
FBI fingerprint background checks on insurance applicants to
obtain relevant criminal records, subject to certain
limitations and protections against misuse. Finally, H.R. 1408
limits the ability of persons to work in the securities
industry if they have been disciplined by banking, thrift,
credit union, or insurance regulators.
Legislative History
H.R. 1408 was introduced in the House on April 4, 2001, by
Mr. Rogers from Michigan and 4 original cosponsors. The bill
was referred to the Committee on Financial Services in addition
to the Committee on the Judiciary and the Committee on
Agriculture. Within the Committee on Financial Services, the
bill was referred to the Subcommittee on Financial Institutions
and Consumer Credit and the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises.
The Subcommittee on Financial Institutions and Consumer
Credit met in open session on May 9 and June 13, 2001. On June
13, the Subcommittee approved H.R. 1408 for full Committee
consideration, with an amendment, by a record vote of 20 yeas
and 1 nay. On June 22, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises was
discharged from the further consideration of the bill.
On June 27, 2001, the Committee on Financial Services met
in open session and ordered H.R. 1408 reported to the House,
with an amendment, with a favorable recommendation by a voice
vote.
On August 2, 2001, the Committee on Financial Services
reported H.R. 1408 to the House (H.Rept. 107-192, Part I) and
the Committee on the Agriculture was discharged from the
further consideration of the bill pursuant to an exchange of
correspondence between the committees. On October 10, 2001, the
Committee on the Judiciary met in open session and ordered H.R.
1408 reported to the House, with an amendment, with a favorable
recommendation by voice vote. The Committee on the Judiciary
reported the bill to the House on October 16, 2001 (H.Rept.
107-192, Part II).
The House considered H.R. 1408 on November 6, 2001, under
suspension of the rules. H.R. 1408 passed by a record vote of
392 yeas and 4 nays.
On November 7, 2001, H.R. 1408 was received in the Senate,
read twice, and referred to the Senate Committee on Banking,
Housing, and Urban Affairs. No further action was taken on this
legislation in the 107th Congress.
secondary mortgage market enterprises regulatory improvement act
(H.R. 1409)
To reform the regulation of certain housing-related
Government-sponsored enterprises.
Summary
H.R. 1409, the Secondary Mortgage Market Enterprises
Regulatory Improvement Act, transfers the regulation of Fannie
Mae and Freddie Mac to the Federal Reserve Board. Under the
bill, the Board takes over the safety and soundness
responsibilities of the Office of Federal Housing Enterprise
Oversight (OFHEO) and the mission setting responsibilities of
the Secretary of Housing and Urban Development (HUD), except
that the Secretary would keep his responsibility for affordable
housing goals and Fair Housing Act compliance. The Board has
the authority to approve new activities and to review on-going
activities of an enterprise to ensure legal compliance. Prompt
corrective action and enforcement powers are provided to the
Board.
Legislative History
H.R. 1409 was introduced in the House by Mr. Baker on April
4, 2001 and was referred to the Committee on Financial
Services. The bill was referred to the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises on May
11, 2001.
On July 11, 2001, the Subcommittee on Capital Markets held
a legislative hearing on reform of the housing Government
Sponsored Enterprises, including H.R. 1409 and the report by
the Congressional Budget Office entitled ``Federal Subsidies
and the Housing GSEs'' (May 2001). Witnesses giving testimony
included senior corporate officers from Fannie Mae and Freddie
Mac and representatives from trade associations, consulting
firms, and academia.
No further action was taken on this legislation in the
107th Congress.
Oversight Activities
insurance regulation
On May 16, 2001, the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held an
oversight hearing entitled ``NARAB & Beyond: Achieving
Nationwide Uniformity in Agent Licensing.'' The hearing
reviewed the status of State reforms implementing reciprocity
and the longer-term goal of uniformity and explored what
Congress could do to keep the process moving forward. The
Subcommittee received testimony from The Honorable Sue Kelly,
one of the chief sponsors of the NARAB provisions in the Gramm-
Leach-Bliley Act, the National Association of Insurance
Commissioners (NAIC), and various insurance agent/broker
groups. Ms. Kelly spoke to the history of agent licensing
reform and the passage of the NARAB provisions. The NAIC
discussed the current status of reform and described NAIC
initiatives to achieve nationwide reciprocity and uniformity.
The insurance agent/broker groups gave their differing views on
the status of producer licensing reform and what additional
legislation or oversight Congress should consider.
On June 21, 2001, the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held an
oversight hearing entitled ``Insurance Product Approval: The
Need for Modernization.'' The hearing continued the Committee's
oversight of insurance regulatory improvements. The hearing
examined the status of insurance product regulation and the
need for uniformity, efficiency, and timeliness in the
regulatory review of insurance rates and forms. The
Subcommittee received testimony from the NAIC and the National
Conference of Insurance Legislators (NCOIL), numerous insurance
industry associations, as well as a consumer representative and
a former State insurance commissioner. The NAIC and NCOIL
discussed the status of State-based regulation and reform
initiatives. The American Council of Life Insurers focused
mainly on the need for uniform policy standards and a single
point of filing mechanism for life insurance policies.
Property/casualty trade associations focused on problems in the
approval of forms and rates and discussed the need for a
market-oriented regulatory structure. The Consumer Federation
of America and the former Illinois insurance director discussed
the academic research on rate regulation including the
experience of different States with their regulatory reform
efforts.
The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises held a hearing over several
days in June, 2002 on insurance regulation entitled ``Insurance
Regulation and Competition for the 21st Century''. The purpose
of the hearing was to discuss the numerous issues the Committee
will need to consider in analyzing proposals to increase the
efficiency and uniformity of insurance regulation. At each day
of the hearing, witnesses assessed these issues in light of the
current regulatory structure and under various reform proposals
for the future.
On June 4, 2002, the Subcommittee focused on the history of
insurance regulation (including the role of the State regulator
associations and various modeling and rating entities), the
economics of the industry (including how industry regulation is
funded), and the role of alternative markets, State residual
markets/disaster pools, risk retention groups, captives, and
surplus lines providers. On June 11, 2002, the Subcommittee
reviewed the insurance product approval process, efforts by the
States to coordinate financial exams and the evolution of the
NAIC's accreditation program, the importance of uniform U.S.
insurance regulation in maintaining U.S. competitiveness in
world trade and strengthening our negotiating position with the
E.U. and other international markets, the various E.U. models
for financial regulation, and international issues facing the
reinsurance industry. On June 18, 2002, the Subcommittee
analyzed regulatory models used in other financial services
sectors and different reform philosophies, as well as market
conduct regulation and consumer protection issues. In addition
to addressing individual issues panelists discussed their
support for or opposition to various reform proposals.
Witnesses included State insurance regulators, consumers,
agents and brokers, banks, financial services firms, and
insurance companies.
The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises continued its review of
proposals to improve insurance regulation with a ``roundtable
discussion'' on Insurance Regulatory Reform on September 17,
2002. The Roundtable examined the entire gamut of reform
philosophies and proposals including: State by State reforms,
coordination of State regulation through the National
Association of Insurance Commissioners, Federal promotion of
State uniformity, and an optional Federal charter.
terrorism insurance
The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises held a hearing on October 24,
2001, entitled ``Protecting Policyholders from Terrorism:
Private Sector Solutions.'' The hearing examined whether there
was an impending availability crisis for terrorism insurance
following September 11th and provided a forum to discuss
possible solutions to any crisis. Witnesses testifying included
Secretary of the Treasury Paul O'Neill and Glenn Hubbard,
Chairman of the Council of Economic Advisers on the presence of
a potential availability and affordability crisis for terrorism
insurance; representatives from an airport which spoke to their
inability to obtain affordable terrorism insurance at pre-
September 11 levels and the effect on the airport's business;
an insurance broker, who analyzed the terrorism coverage
market; and the General Accounting Office, which summarized a
number of domestic and international approaches that have been
used to address difficult-to-insure risks. Also testifying were
academic experts, consumer groups, and insurance company
executives who spoke to the pros and cons of various approaches
that could be used to ensure terrorism insurance coverage for
America's consumers and businesses.
The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises continued a review of the
various approaches that could be used to ensure terrorism
insurance coverage on October 31, 2001, when it held a
``roundtable discussion'' on Terrorism Risk Insurance.
Participating in this event were representatives from Federal
and State government, primary and reinsurance company
representatives, academics, consumer groups, and commercial
policyholders.
risk based capital for government sponsored enterprises
On Wednesday, August 1, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing to consider the Office of Federal Housing Enterprise
Oversight (OFHEO) final rule on risk-based capital standards
for Fannie Mae and Freddie Mac. The hearing was conducted
pursuant to the Subcommittee's responsibilities under the
Congressional Review Act for major rules. OFHEO's rule
specifies the stress test to be used in determining the risk-
based capital requirement and, along with the minimum capital
requirement, the capital classification for purposes of
possible supervisory action. OFHEO's stress test will determine
the amount of total capital each enterprise needs to survive a
ten-year period of severe economic stress in the housing and
credit markets. OFHEO's Director testified before the
Subcommittee.
subsidies for housing government sponsored enterprises
On Wednesday, May 23, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing on Federal subsidies for the housing government
sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the
Federal Home Loan Banks. The purpose of the hearing was to
receive an update from the Congressional Budget Office (CBO) of
its 1996 estimate of the value of the subsidies provided by
Congress to the housing GSEs. The GSEs benefit from their
government ties through a funding advantage and tax and
regulatory exemptions. CBO found that the housing GSEs receive
a substantial Federal subsidy as a result of their special
status, estimated to be $13.6 billion in 2000. CBO also found
that the GSEs pass through some but not all of that subsidy to
mortgage borrowers, about $7 billion in 2000. CBO's Director
testified before the Subcommittee.
On Wednesday, July 11, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
second hearing on the CBO report on subsidies for the housing
GSEs. Testifying before the Subcommittee were senior corporate
officers from Fannie Mae and Freddie Mac and representatives
from trade associations, consulting firms, and academia.
international accounting standards
On Thursday, June 7, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing on promotion of international capital flow through
accounting standards. The purpose of the hearing was to
consider the issue of convergence in international financial
reporting requirements and the impact of the establishment of
international accounting standards on the world's capital
markets and investors. The Subcommittee reviewed the work of
international and domestic accounting standard setters to
ensure that those standards promote fair and efficient capital
flows, and to ensure that the standards facilitate investor
access to the highest quality information about the capital
markets and their participants. Testifying before the
Subcommittee were representatives from an international
accounting standards body, a corporation, and an accounting
firm.
review of voluntary agreement by fannie mae and freddie mac
On Tuesday, March 27, 2001, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing to review the voluntary agreement by Fannie Mae and
Freddie Mac on to improve their capitalization, information
disclosure, and market discipline. The purpose of the hearing
was to review the commitments made, the progress that Fannie
Mae and Freddie Mac made to date, and plans for further
implementation. Fannie Mae and Freddie Mac are privately owned,
Federally chartered companies, created by Congress to
supplement the flow of housing credit. Witnesses testifying
before the Subcommittee were senior corporate officers from
Fannie Mae and Freddie Mac.
market data and transparency
On March 14th, 2001, the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held a hearing
entitled ``Public Access to Market Data--Improving Transparency
and Competition.'' The purpose of the hearing was to examine
how current regulations could be changed to take advantage of
modern technology to provide investors with more efficient and
accurate information flows. The subcommittee examined how
market data is disseminated, the transparency of information
about the costs and revenues associated with market data
dissemination, and the need for modernization of the regulatory
structure governing the production and dissemination of market
data.
On July 26th, 2001, the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held a hearing
entitled ``Market Data II: Implications to Investors and Market
Transparency of Granting Ownership Rights over Stock Quotes.''
This hearing focused on the debate surrounding the regulations
governing market data: the issue of whether market data
consolidators, which have government-granted exclusive rights
over market data distribution, need, or should receive, a new
legal ownership right over the stock quotes that make up stock
market data.
fair disclosure and regulation fd
On May 17, 2001, The Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held a hearing
entitled ``Fair Disclosure or Flawed Disclosure: Is Reg FD
helping or hurting investors.'' On August 10, 2000 the SEC
adopted Regulation Fair Disclosure (Reg FD), a rule governing
the disclosure of information by publicly traded companies. Reg
FD requires companies to disclose all material nonpublic
information at once. The purpose of the hearing was to examine
whether Reg FD had been successful in reaching its objective to
provide a level playing field regarding information access for
all investors.
wall street analysts and conflicts of interest
On June 14th and July 31st, 2001 the Subcommittee on
Capital Markets, Insurance, and Government Sponsored
Enterprises held a hearing over two days entitled ``Analyzing
the Analysts.'' The purpose of the hearings was to examine Wall
St. research practices. On the first day, the Subcommittee
heard from a broad range of witnesses assessing the question of
whether conflicts of interest facing securities analysts
preclude research that is objective and free of bias. On the
second day, the subcommittee broadened the scope of its inquiry
to examine the role of other participants in Wall Street
research beyond analysts, such as institutional investors,
corporate issuers, and the medial.
the enron collapse
The Subcommittee on Capital Market, Insurance, and
Government Sponsored Enterprises held 2 hearings entitled ``The
Enron Collapse: Impact on Investors and Financial Markets'' to
examine the implications of the Enron bankruptcy, the largest
corporate bankruptcy in history at that time. The
Subcommittee's investigation included such matters as: whether
the current financial reporting and disclosure model is
outdated and needs to be modernized so that investors can
receive more transparent, useful, and timely information;
whether the accounting profession requires greater oversight;
why equity analysts failed to warn investors about Enron's
decline; and whether credit rating agencies failed to downgrade
Enron in a timely manner. The Subcommittee held a joint hearing
with the Subcommittee on Oversight and Investigations on
December 12, 2001, and a further hearing on February 4, 2002,
and February 5, 2002.
accounting reform and corporate governance
On May 1 and 14, 2002, the Subcommittee held a hearing to
review the generally accepted accounting principles and
discretionary accounting practices that American companies use
every day to report on their operations. Among those under
critical review by regulators, Congress, and the press included
principles and practices for reporting revenue from the sale of
a business; changes to accounts receivable; company loans to
corporate insiders; special accounting mechanisms designed to
minimize taxes; and pension fund transactions. The Subcommittee
also examined the adequacy of the current regulatory system to
appropriately and timely assess the accuracy of financial
reporting statements based on historical cost. Witnesses during
the two hearings addressed the costs to investors and employees
of reliance on GAAP-based financial statements; the theories
behind many of the most controversial transactions and
structures; and the potential impact of alternatives, including
``value reporting,'' to the current GAAP-based model. Witnesses
included the chief accountant of the SEC; the chairman of the
Financial Accounting Standards Board; and other experts from
academia, a financial analysis firm, a public interest group,
and the Attorney General of the State of Ohio.
Hearings Held
Saving Investors Money: Reducing Excessive SEC Fees.
Hearing on saving investors money: reducing excessive SEC fees.
March 7, 2001. PRINTED, serial no. 107-3.
Public Access to Stock Market Data: Improving Transparency
and Competition. Hearing entitled ``Public Access to Stock
Market Data: Improving Transparency and Competition.'' March
14, 2001. PRINTED, serial no. 107-5.
Review of the Voluntary Agreement by Fannie Mae and Freddie
Mac. Hearing on the review of the voluntary agreement by Fannie
Mae and Freddie Mac. March 27, 2001. PRINTED, serial no. 107-7.
Promotion of Capital Availability to American Businesses.
Joint hearing with the Subcommittee on Financial Institutions
and Consumer Credit on the promotion of capital availability to
American businesses. April 4, 2001. PRINTED, serial no. 107-9.
NARAB & Beyond. Hearing entitled ``NARAB & Beyond.'' May
16, 2001. May 16, 2001. PRINTED, serial no. 107-17.
Fair Disclosure or Flawed Disclsoure: Is Reg FD Helping or
Hurting Investors? Hearing entitled ``Fair Disclosure or Flawed
Disclsoure: Is Reg FD Helping or Hurting Investors?'' May 17,
2001. PRINTED, serial no. 107-18.
CBO Report on Federal Subsidies for the Housing GSEs.
Hearing on the CBO report on Federal subsidies for the Housing
GSEs. May 23, 2001. PRINTED, serial no. 107-20.
Promotion of International Capital Flow through Accounting
Standards. Hearing entitled ``Promotion of International
Capital Flow through Accounting Standards.'' June 7, 2001.
PRINTED, serial no. 107-22.
Analyzing the Analysts. Hearing entitled ``Analyzing the
Analysts.'' June 14 and July 31, 2001. PRINTED, serial no. 107-
25.
Insurance Product Approval: The Need for Modernization.
Hearing entitled ``Insurance Product Approval: The Need for
Modernization.'' June 21, 2001. PRINTED, serial no. 107-28.
Reforming Fannie Mae and Freddie Mac. Hearing on reforming
Fannie Mae and Freddie Mac. July 11, 2001. PRINTED, serial no.
107-32.
Market Data: Implications to Investors. Hearing entitled
``Market Data: Implications to Investors.'' July 26, 2001.
PRINTED, serial no. 107-40.
OFHEO Risk-Based Capital Rule. Hearing on the OFHEO risk-
based capital rule. August 1, 2001. PRINTED, serial no. 107-41.
Pushing Back the Pushouts: The SEC's Broker-Dealer Rules.
Joint hearing with the Subcommittee on Financial Institutions
and Consumer Credit entitled ``Pushing Back the Pushouts: The
SEC's Broker-Dealer Rules.'' August 2, 2001. PRINTED, serial
no. 107-43.
Protecting Policyholders from Terrorism: Private Sector
Solutions. Hearing entitled ``Protecting Policyholders from
Terrorism: Private Sector Solutions.'' October 24, 2001.
PRINTED, serial no. 107-48.
The Enron Collapse: Impact on Investors and Financial
Markets. Joint hearing with the Subcommittee on Oversight and
Investigations entitled ``The Enron Collapse: Impact on
Investors and Financial Markets.'' December 12, 2001. PRINTED,
serial no. 107-51, Part I.
The Enron Collapse: Impact on Investors and Financial
Markets. Hearing entitled ``The Enron Collapse: Impact on
Investors and Financial Markets.'' February 4 and 5, 2002.
PRINTED, serial no. 107-51, Part II.
Corporate Accounting Practices: Is there a Credibility
GAAP? Hearing entitled ``Corporate Accounting Practices: Is
there a Credibility GAAP?'' May 1 and 14, 2002. PRINTED, serial
no. 107-67.
Insurance Regulation and Competition for the 21st Century.
Hearing entitled ``Insurance Regulation and Competition for the
21st Century.'' June 4, 11, and 18, 2002. Serial no. 107-72.
Treasury's Policy on Housing Government Sponsored
Enterprises. Hearing on the Department of the Treasury's policy
on housing government sponsored enterprises. July 16, 2002.
PRINTED, serial no. 107-75.
OFHEO's Risk-Based Capital Stress Test for Fannie Mae and
Freddie Mac. Hearing on the Office of Federal Housing
Enterprise Oversight's risk-based capital stress test for
Fannie Mae and Freddie Mac. July 23, 2001. PRINTED, serial no.
107-79.
SUBCOMMITTEE ON DOMESTIC MONETARY POLICY, TECHNOLOGY, AND ECONOMIC
GROWTH
(Ratio: 14-12)
PETER T. KING, New York, Chairman
JAMES A. LEACH, Iowa CAROLYN B. MALONEY, New York
Vice Chairman BARNEY FRANK, Massachusetts
EDWARD R. ROYCE, California GREGORY MEEKS, New York
FRANK D. LUCAS, Oklahoma BERNIE SANDERS, Vermont
RON PAUL, Texas JAMES H. MALONEY, Connecticut
STEVEN C. LATOURETTE, Ohio DARLENE HOOLEY, Oregon
DOUG OSE, California MAX SANDLIN, Texas
MARK GREEN, Wisconsin CHARLIE GONZALEZ, Texas
CHRISTOPHER SHAYS, Connecticut MICHAEL CAPUANO, Massachusetts
JOHN B. SHADEGG, Arizona RUBEN HINOJOSA, Texas
VITO FOSSELLA, New York WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, Jr., New York MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania JOHN J. LAFALCE, New York
SHELLEY MOORE CAPITO, West Virginia Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
Legislative Activities
general shelton gold medal act
Public Law 107-127 (H.R. 2751)
To authorize the President to award a gold medal on behalf
of the Congress to General Henry H. Shelton and to provide for
the production of bronze duplicates of such medals for sale to
the public.
Summary
H.R. 2751, the General Shelton Gold Medal Act, authorizes
the President to present, on behalf of the Congress, to General
Henry H. Shelton a gold medal of appropriate design in
recognition of his performance as a military leader in
coordinating the planning, strategy, and execution of the
United States and NATO combat action and his invaluable
contributions to the United States and to the successful return
to peace in the Balkans as Chairman of the Joint Chiefs of
Staff.
Legislative History
H.R. 2751 was introduced by Mr. Etheridge on August 2, 2001
with 11 original cosponsors and referred to the House Committee
on Financial Services. On August 24, 2001 the bill was referred
to the Subcommittee on Domestic Monetary Policy, Technology and
Economic Growth.
On December 19, 2001, the House considered the bill under
suspension of the rules and passed H.R. 2751 by a voice vote,
with an amendment.
On December 20, 2001 H.R. 2751 was received in the Senate,
read twice, considered, read the third time, and passed without
amendment by unanimous consent, clearing the bill for the White
House. The bill was presented to the President on January 1,
2002, and signed into law on January 16, 2002, becoming public
law number 107-127.
bureau of engraving and printing security printing amendments act
(H.R. 2509; H.R. 3004)
To authorize the Secretary of the Treasury to produce
currency, postage stamps, and other security documents at the
request of foreign governments on a reimbursable basis.
Summary
H.R. 2509 would authorize the Secretary of the Treasury to
produce currency, postage stamps, and other security documents
for foreign governments (subject to a determination by the
Secretary of State that such production is consistent with U.S.
foreign policy) on a reimbursable basis.
Legislative History
H.R. 2509 was introduced by Mr. King on July 17, 2001 (by
request), with one original cosponsor, and referred to the
Committee on Financial Services. The bill was referred to the
Subcommittee on Domestic Monetary Policy, Technology, and
Economic Growth on July 31, 2001.
The text of H.R. 2509 was included in H.R. 3004, the
Financial Antiterrorism Act of 2001. While provisions of H.R.
3004 were included in H.R. 3162, the USA PATRIOT Act, the
specific provisions of H.R. 2509 were not. For further action
on H.R. 3004, please see the entry for H.R. 3004 in the full
Committee section.
The bill was considered under suspension of the rules on
March 19, 2002 and passed the House by a record vote of 403
yeas and 11 nays. On March 20, 2002, H.R. 2509 was received in
the Senate and read twice and referred to the Committee on
Banking, Housing, and Urban Affairs. No further action was
taken on this measure in the 107th Congress.
true american heroes act
(H.R. 3054; H.R. 5138)
To award Congressional gold medals on behalf of government
workers who responded to the attacks on the World Trade Center
and perished and on behalf of people aboard United Airlines
Flight 93 who helped resist the hijackers and caused the plane
to crash.
Summary
H.R. 3054, the True American Heroes Act, authorizes the
President to present on behalf of Congress a gold medal to the
next of kin or other representative of each officer, emergency
worker, or employee of a State and local government agency,
including the Port Authority of New York and New Jersey, and of
the Federal Government, who responded to the attacks on the
World Trade Center in New York City, and perished in the tragic
events of September 11, 2001 (including those who are missing
and presumed dead). The bill also authorizes the President to
award posthumously, on behalf of Congress and in recognition of
heroic service to the Nation, gold medals to any passengers or
crew members on board United Airlines Flight 93 who are
identified by the Attorney General as having aided in the
effort to resist the hijackers on board the plane.
Further, H.R. 3054 expresses the sense of Congress that the
medals: (1) should be designed, struck, and presented within 90
days after enactment of this Act; and (2) be struck at the U.S.
Mint at West Point, New York, to the greatest extent possible.
The bill also authorizes the Secretary of the Treasury to
strike and sell bronze duplicates and requires that the
proceeds from such sale to be deposited in a fund to be used to
erect a memorial for the fallen emergency responders.
Legislative History
H.R. 3054 was introduced on October 5, 2001 by Mr. King and
one original cosponsor and referred to the Committee on
Financial Services. The bill was referred to the Subcommittee
on Domestic Monetary Policy, Technology and Economic Growth on
November 2, 2001.
On December 18, 2001, the House considered the bill under
suspension of the rules and passed H.R. 3054 by a record vote
of 392 yeas and 2 nays.
On December 19, 2001 H.R. 3054 was received in the Senate
and referred to the Committee on Banking, Housing, and Urban
Affairs.
On July 16, 2002, Mr. King introduced H.R. 5138, the True
American Heroes Act of 2002, with 6 original cosponsors, and
the bill was referred to the Committee on Financial Services.
The text of the bill was similar to H.R. 3054, but included
provisions intended to respond to certain concerns raised by
members of the Senate. On July 22, 2002, the House considered
the bill under suspension of the rules and the bill passed by a
voice vote. H.R. 5138 was received in the Senate and referred
to the Senate Committee on Banking, Housing, and Urban Affairs
on July 23, 2002.
No further action was taken on either measure in the 107th
Congress.
code talkers recognition act
(H.R. 3250)
To authorize the presentation of gold medals on behalf of
Congress to Native Americans who served as Code Talkers during
foreign conflicts in which the United States was involved
during the 20th Century in recognition of their service to the
nation.
Summary
H.R. 3250 declares that the purposes of the medals
authorized by this Act are to express recognition by the United
States and its citizens and to honor the Native American Code
Talkers who distinguished themselves in performing highly
successful communications operations that greatly assisted in
saving countless lives and in hastening the end of World War I
and World War II.
The bill provides for the award on behalf of Congress
(where appropriate, posthumously) of a congressional gold medal
to named Sioux Indians who served as Sioux Code Talkers during
World War II, to named Comanche Code Talkers of World War II in
recognition of their contributions to the Nation, and to the
Choctaw Code Talkers who transmitted information in their
native language which was highly successful in saving men and
munitions during World War I.
Further, H.R. 3250 authorizes the Secretary of the Treasury
to strike and sell duplicates in bronze of the gold medals
struck under this Act and to deposit the proceeds in the United
States Mint Public Enterprise Fund to pay for the costs of the
medals awarded under the legislation.
Legislative History
H.R. 3250 was introduced by Mr. Thune on November 7, 2001
and referred to the House Committee on Financial Services. On
November 19, 2001, the bill was referred to the Subcommittee on
Domestic Monetary Policy, Technology, and Economic Growth.
On June 18, 2002, the House considered the bill under
suspension of the rules and passed the bill, with an amendment,
by a voice vote.
The bill was received in the Senate and referred to the
Committee on Banking, Housing, and Urban Affairs. No further
action was taken on this measure in the 107th Congress.
Oversight Activities
reauthorization of the defense production act of 1950
On June 13, 2001, the Subcommittee on Domestic Monetary
Policy, Technology and Economic Growth held a hearing on the
reauthorization of the Defense Production Act of 1950. As part
of its economic development portfolio, the Committee has sole
jurisdiction over the DPA, which uses economic tools to provide
prompt, adequate and uninterrupted supplies of industrial
resources, including transportation, to satisfy both national
security needs and needs arising from civil emergencies. The
Act would have expired at the end of fiscal year 2001.
design and security of currency
On July 24,, 2001, the Subcommittee on Domestic Monetary
Policy, Technology and Economic Growth held a hearing on the
Design and Security of Currency. The hearing focused on efforts
to make United States currency as resistant to counterfeiting
as possible and on the impending introduction in 2003 of a new
series of American currency with anti-counterfeiting features,
including colored inks not before seen on U.S. currency.
Witnesses also testified on the merits of H.R. 2509, the Bureau
of Engraving and Printing Security Printing Amendments Act of
2001, and on H.R. 1021, the Liberty Bill Act.
beyond the tax cuts: unleashing the economy
On March 29, 2001, the Subcommittee on Domestic Monetary
Policy, Technology and Economic Growth held a hearing entitled
``Beyond the Tax Cuts: Unleashing the Economy.'' The hearing
focused on additional economic stimuli needed--in addition to
the Administration's then-proposed tax-relief package--to
restore confidence in and ensure the long-term health of the
economy. Witnesses included the Majority Leader of the House,
Mr. Armey; E. Floyd Kvamme, Co-Chairman of the President's
Council of Advisors for Science and Technology; Lawrence
Kudlow, CEO of Kudlow & Co., LLP; James Glassman, resident
fellow at the American Enterprise Institute; and Dr. Martin
Baily, senior fellow at the International Institute for
Economics.
encouraging capital formation in key sectors of the economy
On April 18, 2002, the Subcommittee on Domestic Monetary
Policy, Technology and Economic Growth held a hearing on
``Encouraging Capital Formation in Key Sectors of the
Economy.'' The hearing focused on what measures Congress can
undertake to promote economic growth and foster competition in
two key areas vital to American competitiveness. The hearing
examined ongoing Federal efforts in areas related to the energy
and telecommunications industries that have profound impacts on
the ability--or lack thereof--of market participants to attract
capital, and the failure of Congress to be responsive to new
developments in these sectors.
encouraging the use of electronic signatures in the financial industry
On June 28, 2001 the Subcommittee on Domestic Monetary
Policy, Technology and Economic Growth heard testimony on a
joint report by the Federal Trade Commission and the Department
of Commerce that had been mandated by section 105(b) of the
ESIGN Act (Public Law 106-229). The study focused on the
``reasonable demonstration'' requirements of the consumer
consent provisions in the ESIGN Act. The FTC testified that it
was too soon to make an affirmative determination of the effect
the ``reasonable demonstration'' requirements had on the usage
of electronic signatures. Witnesses included representatives of
the Federal Trade Commission, the American Insurance
Association, Alston & Bird LLC, the Electronic Financial
Services Council, the Financial Services Roundtable and
Consumers Union.
Hearings Held
Beyond the Tax Cut: Unleashing the Economy. Hearing
entitled ``Beyond the Tax Cut: Unleashing the Economy.'' March
29, 2001. PRINTED, serial no. 107-8.
Reauthorization of the Defense Production Act. Hearing on
the reauthorization of the Defense Production Act of 1950. June
13, 2001. PRINTED, serial no. 107-24.
ESIGN--Encouraging the Use of Electronic Signatures in the
Financial Services Industry. Hearing entitled ``ESIGN--
Encouraging the Use of Electronic Signatures in the Financial
Services Industry.'' June 28, 2001. PRINTED, serial no. 107-31.
Design and Security of Currency. Hearing on the design and
security of currency. July 24, 2001. PRINTED, 107-38.
Encouraging Capital Formation in Key Sectors of the
Economy. Hearing entitled ``Encouraging Capital Formation in
Key Sectors of the Economy.'' April 18, 2002. PRINTED, serial
no. 107-66
SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND CONSUMER CREDIT
(Ratio: 25-22)
SPENCER BACHUS, Alabama, Chairman
DAVE WELDON, Florida MAXINE WATERS, California
Vice Chairman CAROLYN MALONEY, New York
MARGE ROUKEMA, New Jersey MELVIN WATT, North Carolina
DOUG BEREUTER, Nebraska GARY ACKERMAN, New York
RICHARD H. BAKER, Louisiana KEN BENTSEN, Texas
MICHAEL N. CASTLE, Deleware BRAD SHERMAN, California
EDWARD R. ROYCE, California MAX SANDLIN, Texas
FRANK D. LUCAS, Oklahoma GREGORY MEEKS, New York
BOB BARR, Georgia LUIS GUTIERREZ, Illinois
SUE W. KELLY, New York FRANK MASCARA, Pennsylvania
PAUL E. GILLMOR, Ohio DENNIS MOORE, Kansas
JIM RYUN, Kansas CHARLES A. GONZALEZ, Texas
BOB RILEY, Alabama PAUL KANJORSKI, Pennsylvania
STEVEN C. LATOURETTE, Ohio NYDIA M. VELAZQUEZ, New York
DONALD A. MANZULLO, Illinois JAMES H. MALONEY, Connecticut
WALTER B. JONES, North Carolina DARLENE HOOLEY, Oregon
JUDY BIGGERT, Illinois JULIA CARSON, Indiana
PATRICK J. TOOMEY, Pennsylvania HAROLD E. FORD, JR., Tennesee
ERIC CANTOR, Virginia RUBEN HINOJOSA, Texas
FELIX J. GRUCCI, JR., New York KEN LUCAS, Kentucky
MELISSA A. HART, Pennsylvania RONNIE SHOWS, Mississippi
SHELLEY MOORE CAPITO, West Virginia JOSEPH CROWLEY, New York
MIKE FERGUSON, New Jersey JOHN J. LAFALCE, New York
MIKE ROGERS, Michigan Ex Officio
PATRICK J. TIBERI, Ohio
MICHAEL G. OXLEY, Ohio
Ex Officio
Legislative Activities
unlawful internet gambling funding prohibition act
(H.R. 556)
To prevent the use of certain bank instruments for unlawful
Internet gambling, and for other purposes.
Summary
H.R. 556, the Unlawful Internet Gambling Funding
Prohibition Act, prohibits the acceptance of any bank
instrument for unlawful Internet gambling. It defines certain
terms for purposes of the Act; establishes civil remedies,
criminal penalties, and regulatory enforcement authorities;
encourages cooperation by foreign governments in the
enforcement of the Act; and requires the Secretary of the
Treasury to report annually to Congress on deliberations
between the United States and other countries on issues
relating to Internet gambling. Its primary purpose is to give
U.S. law enforcement a new, more effective, tool for combating
offshore Internet gambling sites that illegally extend their
services to U.S. citizens via the Internet.
Legislative History
H.R. 556 was introduced by Mr. Leach on February 12, 2001,
and referred to the Committee on Financial Services, and was
additionally referred to the Committee on the Judiciary.
The Financial Services Committee's Subcommittee on
Financial Institutions and Consumer Credit held a hearing on
July 24, 2001 on H.R. 556 and other Internet gambling
proposals.
On October 31, 2001, the Subcommittee on Financial
Institutions and Consumer Credit was discharged from the
further consideration of H.R. 556 by unanimous consent and the
Committee on Financial Services met in open session and ordered
H.R. 556 reported to the House with a favorable recommendation,
with an amendment, by a record vote of 34 yeas and 18 nays. The
bill was reported to the House by the Committee on Financial
Services on December 13, 2001 (H. Rept. 107-339, Part I).
The Judiciary Committee's Subcommittee on Crime held a
hearing on November 29, 2001 on H.R. 556 and on H.R. 3215, the
Combating Illegal Gambling Reform and Modernization Act, a bill
on the same topic.
On December 13, 2001, the Committee on Judiciary was
granted an extension for further consideration of H.R. 556
ending not later than December 21, 2001. On December 20, 2001,
the Committee on Judiciary was granted an extension for further
consideration of H.R. 556 ending not later than March 29, 2002.
The Committee on the Judiciary was discharged from the further
consideration of the bill on March 29, 2002.
On March 21, 2002, the House considered H.R. 556 under
suspension of the rules and passed the bill by a voice vote. On
October 2, 2002, the bill was received in the Senate and
referred to the Committee on the Judiciary. No further action
was taken on this measure in the 107th Congress.
consumer rental purchase agreement act
(H.R. 1701)
To amend the Consumer Credit Protection Act to assure
meaningful disclosures of the terms of rental-purchase
agreements, including disclosures of all costs to consumers
under such agreements, to provide certain substantive rights to
consumers under such agreements, and for other purposes.
Summary
H.R. 1701, the Consumer Rental Purchase Agreement Act,
establishes certain minimum standards governing rental-purchase
transactions, in which consumers rent merchandise on a week-to-
week or month-to-month basis, usually with no down payment
required, and are free to terminate the arrangement at the end
of any rental period. H.R. 1701 requires the merchant in a
rent-to-own transaction to make a comprehensive set of
disclosures regarding the total cost of the transaction to the
consumer. The bill sets a Federal floor of protections in
rental-purchase transactions, while leaving undisturbed those
State laws that are determined by Federal regulators to offer
greater protections to consumers. H.R. 1701 establishes as a
matter of Federal law that rental-purchase transactions are
leases rather than credit sales, consistent with their
treatment under the laws of 46 of the 50 States. The treatment
of these transactions as credit sales by 4 States would be
preempted.
Legislative History
H.R. 1701 was introduced in the House on May 3, 2001, by
Mr. Jones of North Carolina and 12 original cosponsors. The
bill was referred to the Committee on Financial Services. On
May 14, 2001, the bill was referred to the Subcommittee on
Financial Institutions and Consumer Credit.
On July 12, 2001, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing on H.R. 1701.
The Subcommittee on Financial Institutions and Consumer
Credit met in open session on September 6 and November 28,
2001, and approved H.R. 1701 for full Committee consideration,
as amended, by a record vote of 24 yeas and 4 nays.
The Committee on Financial Services met in open session on
June 26 and 27, 2002, and ordered H.R. 1701 reported to the
House with a favorable recommendation, with an amendment, by a
record vote of 29 yeas and 9 nays. The Committee on Financial
Services reported the bill to the House on July 18, 2002 (H.
Rept. 107-590, Part I).
H.R. 1701 was sequentially referred to the Committee on the
Judiciary which met in open session on September 5, 2002, and
ordered H.R. 1701 reported to the House with a favorable
recommendation by a record vote of 14 yeas and 12 nays. The
Committee on the Judiciary reported the bill to the House on
September 9, 2002 (H. Rept. 107-590, Part II).
On September 17, 2002, the Committee on Rules reported a
modified closed rule providing for the consideration of H.R.
1701 (H. Res. 528). On September 18, 2002, H. Res. 528 passed
the House by a record vote of 213 yeas and 178 nays. The House
considered H.R. 1701 pursuant to the rule, and passed the bill
by a record vote of 215 yeas and 201 nays.
On September 19, 2002, H.R. 556 was received in the Senate
and referred to the Senate Committee on Banking, Housing, and
Urban Affairs. No further action was taken on this measure in
the 107th Congress.
community choice in real estate act
(H.R. 3424)
To amend the Bank Holding Company Act of 1956 and the
Revised Statutes of the United States to prohibit financial
holding companies and national banks from engaging, directly or
indirectly, in real estate brokerage or real estate management
activities, and for other purposes.
Summary
H.R. 3424, the Community Choice in Real Estate Act, amends
the Bank Holding Company Act of 1956 and the Revised Statutes
of the United States to prohibit the Board of Governors of the
Federal Reserve System and the Secretary of the Treasury,
respectively, from making a determination that real estate
brokerage activity or real estate management activity is an
activity that is either financial in nature or incidental to
any financial activity, or is complementary to a financial
activity.
Legislative History
H.R. 3424 was introduced in the House on December 6, 2001,
by Mr. Calvert and 32 original cosponsors and referred to the
Committee on Financial Services. On December 27, 2001, the bill
was referred to the Subcommittee on Financial Institutions and
Consumer Credit.
On July 24, 2002, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing on H.R. 3424.
No further action was taken on this measure during the 107th
Congress.
financial services regulatory relief act of 2002
(H.R. 3951)
To provide regulatory relief and improve productivity for
insured depository institutions, and for other purposes.
Summary
H.R. 3951 will alter or eliminate statutory banking
provisions in order to lessen the regulatory compliance burden
on insured depository institutions and improve their
productivity, as well as to make needed technical corrections
to current statutes. It is also intended to counterbalance the
additional regulatory burden placed on insured depository
institutions in the USA PATRIOT Act to focus their compliance
efforts on combating money laundering and terrorist financing.
H.R. 3951 would allow financial institutions to devote more
resources to the business of lending to consumers and less to
compliance with outdated and unneeded regulations.
Legislative History
H.R. 3951, the Financial Services Regulatory Relief Act of
2002, was introduced by Ms. Capito and 3 original cosponsors on
March 13, 2002, and was referred to the Committee on Financial
Services. The bill was referred to the Subcommittee on
Financial Institutions and Consumer Credit on March 14, 2002.
The Subcommittee on Financial Institutions and Consumer
Credit held a legislative hearing on H.R. 3951 on March 14 and
April 25, 2002.
On May 8, 2002, the Subcommittee on Financial Institutions
and Consumer Credit met in open session and approved H.R. 3951
for full Committee consideration, as amended, by a voice vote.
On June 6, 2002, the Committee on Financial Services met in
open session and ordered H.R. 3951 reported to the House with a
favorable recommendation, with an amendment, by a voice vote.
The Committee reported the bill to the House on June 18, 2002
(H. Rept. 107-516, Part I).
H.R. 3951 was sequentially referred to the Committee on the
Judiciary and, on July 17, 2002, that committee met in open
session and ordered H.R. 3951 reported to the House with a
favorable recommendation, with an amendment, by a voice vote.
The Committee on the Judiciary reported the bill to the House
on July 22, 2002 (H. Rept. 107-516, Part II).
No further action was taken on this measure in the 107th
Congress.
check clearing for the 21st century act
(H.R. 5414)
To facilitate check truncation by authorizing substitute
checks, to foster innovation in the check collection system
without mandating receipt of checks in electronic form, and to
improve the overall efficiency of the Nation's payments system,
and for other purposes.
Summary
H.R. 5414, the Check Clearing for the 21st Century Act,
will promote greater efficiency in the overall payments system
and reduce the system's current reliance on the nation's
transportation grid. H.R. 5414 is a proposal to modernize the
check clearing process by removing legal impediments to
electronic check processing. After the September 11, 2001,
terrorist attacks on America, when the air traffic system was
brought to a standstill for several days, the check collection
process experienced significant disruptions.
Legislative History
H.R. 5414 was introduced on September 19, 2002 by Mr.
Ferguson and one original cosponsor, and was referred to the
Committee on Financial Services. On September 23, 2002 the bill
was referred to the Subcommittee on Financial Institutions and
Consumer Credit.
On September 25, 2002, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 5414, the Check Clearing for the 21st Century Act.
No further action was taken on this measure in the 107th
Congress.
federal deposit insurance reform act of 2002
(H.R. 3717)
To reform the Federal deposit insurance system, and for
other purposes.
Summary
H.R. 3717, the Federal Deposit Insurance Reform Act of
2002, will preserve the value of insured deposits at insured
depository institutions, advance the national priority of
enhancing retirement security for all Americans, and ensure
that the value, benefit and costs of deposit insurance are
allocated equitably and fairly. The bill merges the Bank
Insurance Fund (BIF) and the Savings Association Insurance Fund
(SAIF); increases the standard maximum deposit insurance limit
from $100,000 to $130,000, and indexes it every 5 years for
inflation; doubles the new coverage level for certain
retirement accounts; and increases the coverage amount for in-
State municipal deposits. Federally chartered credit unions are
provided with parity in general standard maximum deposit
insurance coverage, coverage for retirement accounts and
municipal deposits.
H.R. 3717 removes legal constraints on the authority of the
Federal Deposit Insurance Corporation (FDIC) to charge risk-
based premium assessments, so that all insured depository
institutions pay for the value and benefit of deposit insurance
fairly and equitably. The legislation authorizes the FDIC to
set the ratio of reserves to estimated insured deposits within
a range of 1.15-1.40 percent, replacing the 1.25 percent ''hard
target'' mandated by current law. The bill also returns
assessments in the form of refunds, credits, and dividends to
insured depository institutions for overpayments they have made
and/or whenever the fund's level is considered strong and the
financial and economic outlook is considered favorable.
Dividends are provided to qualified insured depository
institutions whenever the upper limits of the designated
reserve ratio (DRR) are exceeded.
Finally, the legislation directs the FDIC to study its
administrative and managerial processes and alternative means
for administering the deposit insurance system. These studies
will ensure that the deposit insurance fund and the overall
deposit insurance system are managed and operated as
efficiently and as effectively as possible.
Legislative History
H.R. 3717, the Federal Deposit Insurance Reform Act of
2002, was introduced on February 12, 2002 by Mr. Bachus and 15
original cosponsors and referred to the Committee on Financial
Services. The bill was referred to the Subcommittee on
Financial Institutions and Consumer Credit on March 1, 2002.
The Subcommittee on Financial Institutions and Consumer
Credit met in open session on March 7, 2002 and approved H.R.
3717 for full Committee consideration, as amended, by a voice
vote.
The Committee on Financial Services met in open session on
April 17, 2002 and ordered H.R. 3717 reported to the House with
an amendment by a record vote of 52 yeas and 2 nays.
The House considered H.R. 3717 under suspension of the
rules and passed the bill by a record vote of 408 yeas and 18
nays. H.R. 3717 was received in the Senate on May 23, 2002 and
referred to the Committee on Banking, Housing, and Urban
Affairs. No further action was taken on this measure in the
107th Congress.
business freedom checking act
(H.R. 1009)
To repeal the prohibition on the payment of interest on
demand deposits.
Summary
H.R. 1009, the Business Checking Freedom Act of 2002,
permits the payment of interest on business checking accounts
held by businesses, and allow up to 24 transfers per month
between accounts by any account holder. Current law forbids
such accounts from drawing interest. The legislation also
authorizes the Federal Reserve to pay interest on deposits with
a Federal Reserve Bank that a bank is required by law to hold
as reserves against customer deposits. The legislation directs
the Federal Reserve to conduct a survey of bank fees and
services. The legislation would also require the Federal
Reserve to transfer surplus funds to the general fund of the
Treasury.
Legislative History
H.R. 1009 was introduced in the House on March 13, 2001 by
Mr. Toomey with 6 original cosponsors and referred to the
Committee on Financial Services. The bill was referred to the
Subcommittee on Financial Institutions and Consumer Credit on
March 21, 2001.
The Subcommittee on Financial Institutions and Consumer
Credit met in open session on March 21, 2001, and approved H.R.
1009 for full Committee consideration by a voice vote. On March
28, 2001, the Committee on Financial Services met in open
markup session and approved an amendment to H.R. 974, the Small
Business Interest Checking Act of 2001, containing the text of
H.R. 1009. Accordingly, the Committee laid H.R. 1009 upon the
table by unanimous consent.
Due to Senate inaction on H.R. 974, on April 9, 2002 the
House considered H.R. 1009 under suspension of the rules and
passed the bill by a voice vote. No further action was taken on
the measure in the 107th Congress.
small business interest checking act
(H.R. 974)
To increase the number of interaccount transfers which may
be made from business accounts at depository institutions, to
authorize the Board of Governors of the Federal Reserve System
to pay interest on reserves, and for other purposes.
Summary
H.R. 974, the Small Business Interest Checking Act of 2001,
permits the payment of interest on business checking accounts
held. Current law forbids such accounts from drawing interest.
The legislation also authorizes the Federal Reserve to pay
interest on deposits with a Federal Reserve Bank that a bank is
required by law to hold as reserves against customer deposits.
Current law does not provide for interest payments on such
deposits, leading to the characterization of such deposits as
``sterile reserves''. By allowing the Federal Reserve to pay
interest on such deposits, H.R. 974 would create an incentive
for banks to avoid circumventing the reserve deposit
requirement, and would help the Federal Reserve conduct
monetary policy. The legislation would also require the Federal
Reserve to transfer surplus funds to the general fund of the
Treasury.
Legislative History
H.R. 974 was introduced on March 13, 2001 by Ms. Kelly and
2 original cosponsors, and was referred to the Committee on
Financial Services. On March 20, 2002, the bill was referred to
the Subcommittee on Financial Institutions and Consumer Credit.
The Subcommittee on Financial Institutions and Consumer
Credit met in open session on March 21, 2001, and approved H.R.
974 for full Committee consideration by a voice vote. On March
28, 2001, the Committee on Financial Services met in open
markup session and ordered H.R. 974 reported to the House with
an amendment consisting of the text of H.R. 1009, the Small
Business Interest Checking Act of 2001. The Committee on
Financial Services reported the measure to the House on April
3, 2001 (H. Rept. 107-38). On April 3, 2001 the House
considered the bill under suspension of the rules and passed
H.R. 974 by a voice vote. No further action was taken on this
measure in the 107th Congress.
Oversight Activities
giving consumers credit: how is the credit card industry treating its
customers?
On November 1, 2001, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing on credit card
industry practices. Among the issues addressed were how the
credit card industry sets interest rates and how these rates
compare to the cost of other forms of consumer credit; the
processing practices of the industry, including the posting of
payments and the handling of customer complaints; industry
compliance with Federal consumer protection laws; and the
credit card industry's treatment of customers whose mail
service was disrupted by the terrorist attacks of September 11,
2001, and subsequent episodes of bioterrorism. Witnesses
testifying at the hearing included officials from the Federal
Reserve Board and the Federal Trade Commission, as well as
representatives of various consumer groups and major credit
card associations, including MasterCard International and VISA
U.S.A.
recovering dictators' plunder
On May 9, 2002, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing on international efforts to
facilitate the recovery of assets looted from countries by
corrupt foreign officials. Official corruption has had a
debilitating impact in many parts of the developing world,
exacerbating poverty, disease, and malnutrition, as well as
creating the conditions of despair and resentment in which
terrorism is more likely to breed. The hearing focused on
strategies for tracing and repatriating the proceeds of
corruption, including the successful efforts of the Swiss
government to arrange the return to Nigeria of nearly a billion
dollars allegedly stolen by that country's former military
ruler Sani Abacha. The hearing featured testimony by private
sector experts on corruption, financial crime, and asset
recovery.
Hearings Held
Protecting Consumers: What Can Congress Do to Help
Financial Regulators Coordinate Efforts to Fight Fraud? Joint
hearing with the Subcommittee on Oversight and Investigations.
March 6, 2001. PRINTED, serial no. 107-2.
Proposals to Permit Payment of Interest on Business
Checking Accounts and Sterile Reserves Maintained at Federal
Reserve Banks. Hearing on proposals to permit payment of
interest on business checking accounts and sterile reserves
maintained at Federal reserve banks. March 13, 2001. PRINTED,
serial no. 107-4.
Promotion of Capital Availability to American Businesses.
Joint hearing with the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises on the
promotion of capital availability to American businesses. April
4, 2001. PRINTED, serial no. 107-9.
Federal Reserve Board and Treasury Department Rule
Proposal. Hearing on the rule proposal of the Federal Reserve
Board and the Treasury Department. May 2, 2001. PRINTED, serial
no. 107-12.
Deposit Insurance Reform. Hearing on deposit insurance
reform. May 16, 2001. PRINTED, serial no. 107-16.
Consumer Rental Purchase Agreement Act. Legislative hearing
on H.R. 1701, the Consumer Rental Purchase Agreement Act. July
12, 2001. PRINTED, serial no. 107-33.
Unlawful Internet Gambling Funding Prohibition Act.
Legislative hearing on H.R. 556, the Unlawful Internet Gambling
Funding Prohibition Act and other Internet gambling proposals.
July 24, 2001. PRINTED, serial no. 107-37.
Viewpoints of Select Regulators on Deposit Insurance
Reform. Hearing entitled ``Viewpoints of Select Regulators of
Deposit Insurance Reform.'' July 26, 2001. PRINTED, serial no.
107-39.
Pushing Back the Pushouts: the SEC's Broker Dealer Rules.
Joint hearing with the Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises entitled
``Pushing Back the Pushouts: the SEC's Broker Dealer Rules.''
August 2, 2001. PRINTED, serial no. 107-43.
Viewpoints of the FDIC and Select Industry Experts on
Deposit Insurance Reform. Hearing entitled ``Viewpoints of the
FDIC and Select Industry Experts on Deposit Insurance Reform.
October 17, 2001. PRINTED, serial no. 107-47.
Giving Consumers Credit: How is the Credit Card Industry
Treating its Customers? Hearing entitled ``Giving Consumers
Credit: How is the Credit Card Industry Treating its
Customers?'' November 1, 2001. PRINTED, serial no. 107-49.
Financial Services Regulatory Relief Act. Legislative
hearing on H.R. 3951, the Financial Services Regulatory Relief
Act of 2002. March 14 and April 25, 2002. PRINTED, serial no.
107-62.
Recovering Dictators' Plunder Hearing on recovering
dictator's plunder. May 9, 2002. PRINTED, serial no. 107-69.
Community Choice in Real Estate Act. Legislative hearing on
H.R. 3424, the Community Choice in Real Estate Act. July 24,
2002. Serial no. 107-80.
Check Clearing for the 21st Century Act Legislative hearing
on H.R. 5414, the Check Clearing for the 21st Century Act.
September 25, 2002. Serial no. 107-84.
SUBCOMMITTEE ON HOUSING AND COMMUNITY OPPORTUNITY
(Ratio: 14-12)
MARGE ROUKEMA, New Jersey, Chair
MARK GREEN, Wisconsin BARNEY FRANK, Massachusetts
Vice Chairman NYDIA VELAZQUEZ, New York
DOUG BEREUTER, Nebraska JULIA CARSON, Indiana
SPENCER BACHUS, Alabama BARBARA LEE, California
PETER T. KING, New York JAN SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio STEPHANIE TUBBS JONES, Ohio
BOB BARR, Georgia MICHAEL CAPUANO, Massachusetts
SUE W. KELLY, New York MAXINE WATERS, California
BOB RILEY, Alabama BERNARD SANDERS, Vermont*
GARY G. MILLER, California MELVIN WATT, North Carolina
ERIC CANTOR, Virginia WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, JR., New York STEVE ISRAEL, New York
MIKE ROGERS, Michigan JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
---------------------------------------------------------------------------
* Mr. Sanders is an independent, but caucuses with the Democratic
Caucus.
---------------------------------------------------------------------------
Legislative Activities
manufactured housing fees
Public Law 107-18 (S. 1029)
A bill to clarify the authority of the Department of
Housing and Urban Development with respect to the use of fees
during fiscal year 2001 for the manufactured housing program.
Summary
S. 1029 clarifies the authority of the Department of
Housing and Urban Development on the use of fees during FY 2001
for the manufactured housing program.
Legislative History
On June 13, 2001, Mr. Sarbanes introduced S. 1029 in the
Senate with 10 original cosponsors and the Senate passed the
bill by unanimous consent. On June 14, the bill was received in
the House.
On June 20, 2001, the House considered the bill under
suspension of the rules and passed the bill by a voice vote,
clearing S. 1029 for the White House. The bill was presented to
the President on June 26, 2001 and signed into law on July 5,
2001, becoming public law number 107-18.
fha multifamily housing mortgage loan limit adjustment act
Public Law 107-73 (H.R. 1629; H.R. 2620)
To increase the mortgage loan limits under the National
Housing Act for multifamily housing mortgage insurance.
Summary
H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit
Adjustment Act of 2001, amends the National Housing Act to
increase the mortgage loan limits for housing mortgage
insurance.
Legislative History
H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit
Adjustment Act of 2001, was introduced by Mrs. Roukema and one
original cosponsor on April 26, 2001 and referred to the
Committee on Financial Services. The bill was referred to the
Subcommittee on Housing and Community Opportunity on May 10,
2001.
The text of the measure was included in section 213 of H.R.
2620, the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2002.
The conference report to accompany H.R. 2620 was considered by
the House on November 8, 2001, and agreed to by a record vote
of 401 yeas and 18 nays. The Senate considered the conference
report by unanimous consent on November 8, 2001 and agreed to
the conference report by a record vote of 87 yeas and 7 nays,
clearing the bill for the White House.
The bill was presented to the President on November 15,
2001, and signed into law on November 26, 2001, becoming public
law 107-73.
seniors commission extension act
Public Law 108-73 (H.R. 1850; H.R. 2620)
To extend the Commission on Affordable Housing and Health
Facility Needs for Seniors in the 21st Century and to make
technical corrections to the law governing the Commission.
Summary
H.R. 1850, the Senior Housing Commission Extension Act of
2001 would make a technical correction to extend the dates
authorizing the Commission's reporting date from December 21,
2001 to December 31, 2002; extend the Commission termination
date from June 30, 2002, to March 31, 2003. In addition, H.R.
1850 gives the Commission the authority to use employees from
any agency to assist in its completion of the report on a non-
reimbursable nature.
Legislative History
H.R. 1850, the Senior Housing Commission Extension Act of
2001, was introduced by Mrs. Roukema and one original cosponsor
on May 15, 2001 and referred to the Committee on Financial
Services. The bill was referred to the Subcommittee on Housing
and Community Opportunity on May 29, 2001.
On June 27, 2001, the Subcommittee on Housing and Community
Opportunity was discharged from the further consideration of
H.R. 1850 by unanimous consent and the full Committee met in
open session to consider H.R. 1850. The Committee ordered H.R.
1850 reported to the House with a favorable recommendation by a
voice vote. The Committee reported the bill to the House on
July 19, 2001 (H. Rept. 107-147).
On September 24, 2001, the House considered H.R. 1850 under
suspension of the rules and passed the bill by a voice vote.
The bill was received in the Senate on September 25, 2001 and
referred to the Senate Committee on Banking, Housing, and Urban
Affairs. No further action was taken on this measure in the
107th Congress.
A modified version of the text of the measure was included
in H.R. 2620, the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 2002. The conference report to accompany H.R. 2620 was
considered by the House on November 8, 2001, and agreed to by a
record vote of 401 yeas and 18 nays. The Senate considered the
conference report by unanimous consent on November 8, 2001 and
agreed to the conference report by a record vote of 87 yeas and
7 nays, clearing the bill for the White House.
The bill was presented to the President on November 15,
2001, and signed into law on November 26, 2001, becoming public
law 107-73.
technical correction for jacksonville, florida continuum of care
homeless assistance program application
Public Law 107-151 (H.R. 3699)
To revise certain grants for continuum of care assistance
for homeless individual and families.
Summary
The bill directs the Secretary of Housing and Urban
Development to limit the amount of a grant (pursuant to the
Notice of Funding Availability for Continuum of Care Homeless
Assistance Programs for FY 2001) to the Liberty Center for the
Homeless Incorporated. States that if an award has been made in
excess of such amount prior to enactment of this Act, the
Secretary shall modify the award and distribute such excess to
other applicants from the Jacksonville, Florida, Continuum of
Care in the order listed in the project priority list.
Legislative History
H.R. 3699 was introduced by Mr. Crenshaw and one original
cosponsor on February 7, 2002 and referred to the Committee on
Financial Services. On March 4, 2002, the bill was referred to
the Subcommittee on Housing and Community Opportunity.
On February 12, 2002, the House considered the bill under
suspension of the rules and passed H.R. 3699 by a record vote
of 421 yeas and no nays.
The bill was received in the Senate on February 13, 2002
and referred to the Senate Committee on Banking, Housing, and
Urban Affairs. On February 25, 2002, the Senate Committee on
Banking, Housing, and Urban Affairs was discharged from the
further consideration of the bill and the Senate passed the
bill by unanimous consent, clearing the bill for the White
House.
The bill was presented to the President on March 1, 2002
and signed into law on March 13, 2002, becoming public law
number 107-151.
fha down payment simplification act
Public Law 107-326 (S. 2239; H.R. 3995)
A bill to amend the National Housing Act to simplify the
down payment requirements for FHA mortgage insurance for single
family home buyers, repeal the increase of the GNMA guarantee
fee, and index FHA multifamily loan limits.
Summary
The bill amended the National Housing Act to make permanent
a down payment formula used in FHA mortgage insurance
transactions that determines what is calculated as the 3
percent down payment requirement. The simplified formula was
used in a demonstration and was scheduled to expire on December
30, 2002. This bill made the simplification demonstration
permanent. Additionally, the FHA multifamily loan limits were
indexed to reflect future increases in costs, such as
construction and land as measured by the Consumer Price Index
for All Urban Consumers (CPI-U), applied by the Federal Reserve
Board. Finally, the bill repealed a provision included in the
1998 Higher Education Act Amendments (Public Law 105-244) to
increase by 50 percent (to nine basis points) the annual fee
charged beginning in FY 2005.
Legislative History
S. 2239 was introduced in the Senate on April 24, 2002 by
Mr. Sarbanes. The Senate Committee on Banking, Housing, and
Urban Affairs approved the bill on October 15, 2002 with
amendments and the Senate passed the bill by unanimous consent
on October 17, 2002.
The provisions included in S. 2239 were included in H.R.
3995, the Housing Affordability Act for America approved by the
Committee on Financial Services on July 10, 2002.
S. 2239 was received in the House on October 21, 2002 and
referred to the House Committee on Financial Services. The bill
was referred to the Subcommittee on Housing and Community
Opportunity on October 25, 2002.
On November 15, 2002, the Committee on Financial Services
was discharged from the further consideration of S. 2239 and
the House passed the bill by unanimous consent, clearing S.
2239 for the White House.
The bill was presented to the President on November 22,
2002, and signed by the President on December 4, 2002, becoming
public law number 107-326.
native american housing assistance and self-determination
reauthorization act
Public Law 107-292 (S. 1210; H.R. 3995)
A bill to reauthorize the Native American Housing
Assistance and Self-Determination Act of 1996.
Summary
S. 1210, the Native American Housing Assistance and Self-
Determination Reauthorization Act of 2001, The bill
reauthorized the housing and community development block grant
for Native American tribes recognized by the Federal
government, and to a limited extent, some tribes recognized by
their state governments. The bill also provides for
comprehensive planning and clarifies that the creation of the
Land Titles Commission does not need a specific advance
appropriation in order for the HUD Secretary to appoint
Commission members.
Legislative History
S. 1210 was introduced in the Senate on April 24, 2002 by
Mr. Campbell and referred to the Senate Committee on Indian
Affairs. The Senate Committee on Indian Affairs reported the
bill to the Senate with an amendment on August 28, 2002 (S.
Rept. 107-246) and the bill was sequentially referred to the
Senate Committee on Banking, Housing, and Urban Affairs for a
period not to exceed 60 days. The Senate Committee on Banking,
Housing, and Urban Affairs reported the bill to the Senate on
September 17, 2002 without a written report.
The Senate passed the bill by unanimous consent on October
7, 2002 and the bill was received in the House on the same day.
The bill was referred to the Committee on Financial Services
and, on October 15, 2002, the bill was referred to the
Subcommittee on Housing and Community Opportunity.
The provisions included in S. 1210 were included in H.R.
3995, the Housing Affordability Act for America approved by the
Committee on Financial Services on July 10, 2002.
On October 16, 2002, the Committee on Financial Services
was discharged from the further consideration of S. 1210 and
the House passed the bill by unanimous consent, clearing S.
1210 for the White House.
The bill was presented to the President on November 4,
2002, and signed by the President on November 13, 2002,
becoming public law number 107-292.
tornado shelters act
(H.R. 247)
To amend the Housing and Community Development Act of 1974
to authorize communities to use community development block
grant funds for construction of tornado-safe shelters in
manufactured home parks.
Summary
The Tornado Shelters Act would authorize, as an eligible
activity, funds from the Community Development Block Grant
program to be used toward construction of community tornado
shelters in manufactured home parks.
Legislative History
H.R. 247, the Tornado Shelters Act, was introduced by Mr.
Bachus on January 30, 2001 and referred to the Committee on
Financial Services. On March 2, 2001, the bill was referred to
the Subcommittee on Housing and Community Opportunity.
On March 20, 2001, the Committee on Rules reported a
modified-open rule providing for the consideration of the bill
(H. Res. 93). On March 22, 2001, H. Res. 93 was agreed to by a
record vote of 246 yeas and 169 nays. The House considered and
passed H.R. 247, as amended, by a record vote of 401 yeas and 6
nays.
On March 22, 2001, the bill was received in the Senate and
referred to the Senate Committee on Banking, Housing, and Urban
Affairs. No further action was taken on this measure in the
107th Congress.
housing affordability for america act of 2002
(H.R. 3995)
To amend and extend certain laws relating to housing and
community opportunity, and for other purposes.
Summary
H.R. 3995, the Housing Affordability for America Act made
reforms to existing housing programs to increase flexibility
for local governments and programs, increase the availability
of affordable housing and expand home ownership opportunities
across the country.
Section 101, as introduced, amended the HOME program to
provide specific funding and targeted HOME funds for
multifamily production and rehabilitation of units primarily
for very-low income and extremely-low income families and
individuals. The Committee, during markup, approved an
amendment replacing section 101 with a matching grant program
to State and local housing trust funds. Of the total money
available for matching funds, 40 percent would go to
participating States and 60 percent to participating
jurisdictions. These grants would be administered through the
HOME investment partnership program. States and localities
would be required to use these grants for the production,
preservation or rehabilitation of affordable housing for very
low and extremely low-income families. H.R. 3995 authorized a
down payment assistance initiative under the HOME program to
provide low income families with down payment assistance in
order to achieve the goal of home ownership. Additional changes
to increase flexibility and improve the efficiency and
effectiveness of the HOME program were included.
H.R. 3995 provided new and more efficient ways to assist
first-time home buyers, including helping low-income buyers
purchase their first home is the FHA program, encouraging home
ownership opportunities, and increasing the supply of
affordable rental housing nationwide.
In the FHA Multifamily Housing program, H.R. 3995 indexed
FHA mortgage multifamily limits to reflect building, land and
impact fee cost increases in the future; and, increased the
maximum high-cost percentage allowing for production in
extremely expensive markets. Moreover, the bill included
provisions to modernize the thirty-year old healthcare mortgage
insurance programs of sections 232 and 242 of the National
Housing Act to make them more consistent with today's method of
delivering healthcare and assisted living services for the
elderly, sick, injured and disabled.
Regarding the FHA Single Family Housing program, H.R. 3995
made permanent the FHA down payment simplification calculation;
modified the cap on FHA adjustable-rate mortgages; and
established a uniform national loan limit for HECM. H.R. 3995
also made changes to the FHA program to tighten requirements
and administration of the 203(k) FHA--the single family
rehabilitation loan program.
For the elderly, H.R. 3995 provided ways to rehabilitate
and preserve existing elderly housing by establishing a
demonstration program for elderly housing for multigenerational
families and for grandparent-headed households; authorized
grants for the repair of Federally assisted housing for the
elderly; and set uniform loan limits for reverse mortgages used
by senior homeowners.
To better meet the housing needs of low income families,
H.R. 3995 included provisions to increase payment standards and
to allow Public Housing Authorities to use up to 2 percent of
funds to house ``hard to house families.'' It also included
several administrative changes to the Public Housing programs
designed to improve the efficiency and success of Public
Housing Authorities. Under the HOPE VI program, which was
designed to rehabilitate, demolish and/or reconstruct public
housing for the most severely distressed developments, H.R.
3995 provided incentives for PHAs and private entities to form
partnerships and create mixed-finance and mixed-income
affordable housing; allowed smaller communities to participate
in the program; and ensured that recipients used the money in a
timely and cost-effective manner.
Regarding homelessness, H.R. 3995 reauthorized HUD's
homeless programs through FY 2004 and funded renewals of
contracts through the Housing Certificate Fund. In addition,
the legislation set a national goal to end homelessness within
10 years. Moreover, H.R. 3995 reauthorized HOPWA (Housing
Opportunities for Persons with AIDS), which houses individuals
diagnosed with HIV/AIDS and their families through 2004.
H.R. 3995 reauthorized The Native American Housing
Assistance and Self-Determination Act of 1996 (NAHASDA), which
expired on September 30, 2002. The block grant program was
established to provide housing assistance to eligible Indian
Tribes or their tribally designated housing entities (TDHEs).
Eligible tribes include both Federally recognized and, to a
limited degree, certain State-recognized Indian tribes formerly
eligible under the 1937 Act.
Title VIII of H.R. 3995 was designed to heighten public
awareness of the costs to housing affordability of certain
regulations when there is a significant adverse impact on
housing affordability. H.R. 3995 required a housing impact
analysis of any new rule of a Federal agency that has an
economic housing impact of $100,000,000 or more.
Legislative History
On March 19, 2002, Mrs. Roukema and 22 cosponsors
introduced H.R. 3995, the Housing Affordability for America Act
of 2002, and the bill was referred to the Committee on
Financial Services, and additionally to the Committee on the
Judiciary. On April 10, 2002, the bill was referred to the
Subcommittee on Housing and Community Opportunity.
The Subcommittee on Housing and Community Opportunity held
a 3-day legislative hearing on H.R. 3995 on April 10, 23, and
24, 2002. On June 18, 2002, the Subcommittee met in open
session and approved H.R. 3995 for full Committee
consideration, with an amendment.
The Committee on Financial Services met in open markup
session on June 20 and July 10, 2002, and ordered H.R. 3995
reported to the House with a favorable recommendation, with an
amendment. The Committee on Financial Services reported the
bill to the House on September 17, 2002 (H. Rept. 107-640, Part
II).
The Committee on the Judiciary referred H.R. 3995 to the
Subcommittee on Commercial and Administrative Law on May 6,
2002. The Subcommittee on Commercial and Administrative Law met
in open session on July 16, 2002 and approved the bill for full
committee consideration. The Committee on the Judiciary met in
open session on July 23, 2002 and ordered H.R. 3995 reported to
the House, with a favorable recommendation. The Committee on
the Judiciary reported the bill to the House on September 4,
2002 (H. Rept. 107-640, Part I).
No further action was taken on this measure in the 107th
Congress.
brownfields redevelopment enhancement act
(H.R. 2941)
To facilitate the provision of assistance by the Department
of Housing and Urban Development for the cleanup and economic
redevelopment of brownfields.
Summary
H.R. 2941, the Brownfields Redevelopment Enhancement Act,
increased access to brownfields redevelopment funds for
America's small communities by de-linking Section 108 loan
guarantees from HUD's Brownfields Economic Development
Initiative (BEDI) grants. The bill focused on providing access
to capital for local entities that traditionally have had
trouble obtaining financing for brownfields redevelopment
activities. The bill also authorized HUD to establish a pilot
program for a common brownfields redevelopment loan pool.
Legislative History
H.R. 2941 was introduced on September 21, 2001 by Mr. Gary
G. Miller of California and three original cosponsors. The bill
was referred to the Committee on Financial Services and to the
Subcommittee on Housing and Community Opportunity on October 4,
2001. A hearing in the Subcommittee was held on March 6, 2002.
Immediately following the hearing the Subcommittee met in open
session and approved H.R. 2941 for full Committee
consideration, as amended. On April 11, 2002, the Committee met
in open session and ordered H.R. 2941 reported to the House
with a favorable recommendation, with an amendment, by a voice
vote. The Committee reported the bill to the House on May 8,
2002 (H. Rept. 107-448).
On June 4, 2002, the House considered the bill under
suspension of the rules and passed the bill by a voice vote. On
June 5, 2002, the bill was received in the Senate and referred
to the Committee on Banking, Housing, and Urban Affairs.
No further action was taken on this measure in the 107th
Congress.
Oversight Activities
fha financial health
On March 20, 2001, the Subcommittee on Housing and
Community Opportunity held a hearing entitled ``The Financial
Health of the Federal Housing Administration's (FHA) Single-
Family Mutual Mortgage Insurance Fund.'' The impetus for the
hearing were a GAO report, a HUD IG audit, and a CBO October
23, 2000 letter related to the Mutual Mortgage Insurance Fund
(MMI). The first report represented the results of a GAO review
of the adequacy of the statutorily required capital ratio
standards. The second report presented the results of an annual
audit of FHA's financial statements by the HUD Inspector
General. The third document is an October 23, 2000 response to
the Senate Housing Subcommittee regarding a MMI surplus. GAO,
HUD IG, and CBO provided different perspectives on the health
of the MMI and to what extent policymakers can make judgments.
The health of the MMI is directly related to potential new home
ownership initiatives that may require, for example, lower FHA
premiums, targeted programs to vulnerable/selected populations,
or the creation of a new housing production program.
hud proposed budget for fiscal year 2002
On April 26, 2001, the Subcommittee held a hearing on the
HUD FY 2002 proposed budget where Secretary of Housing and
Urban Development Mel Martinez outlined the Administration's
proposed a budget for the Department of Housing and Urban
Development (HUD) of approximately $30.4 billion. The HUD
budget maintained funding for the Department's core programs,
including CDBG and HOME, and requested 34,000 additional
(incremental) section 8 vouchers. The Administration's budget
also contained a number of new initiatives, including a ``Down
Payment Assistance Initiative'' that would allow $200 million
for matching downpayment assistance provided to families by
third parties, up to $1,500 per family (set aside from the HOME
program funds). The funds would be administered by State
housing finance agencies and each year would help over 130,000
first-time low-income homebuyers.
In addition, the Administration proposed a new hybrid
adjustable-rate mortgage that would work with tax incentives
for savings, and proposed tax credits for rehabilitation and
construction, to expand homeownership. Other initiatives
provided in the Administration's HUD budget, included the
``Community Technology Centers Initiative'', which enhanced the
Department's Neighborhood Networks program by providing $80
million in competitive grants to help communities create or
expand technology centers in high poverty urban communities.
Community Development Block Grant funding of $20 million would
also be designated for use in the ``Improving Access
Initiative'', to help religious and civic organizations, with
limited resources, make their facilities accessible to the
disabled.
housing affordability
On May 3, 2001, the Subcommittee held the first in a series
of hearings to outline the parameters of the problem of a lack
of affordable housing and the complexity of the issues
involved, as well as beginning discussions as to possible
approaches to solutions. The witnesses in this hearing
identified certain problems including, among others:
inefficiencies in the HUD section 8 program that lead to low
utilization rates, in various areas, of section 8 vouchers;
income-targeting levels that are too low in the HOME and CDBG
programs so that families that require assistance in high-cost
areas are unassisted; burdensome and unnecessary local
regulations that increase the cost of producing housing (such
as ``no-growth ordinances''); and multifamily loan limits on
FHA multifamily loans that are too low to be effective in
certain markets.
The second hearing, held on May 22, 2001, highlighted
private activity and public/private partnerships that address
affordable housing among various income sectors, as well as
community development experts representing State and local
governments specifically working with the Community Development
Block Grant (CDBG) and HOME Investment Partnerships (HOME)
programs.
The third hearing, held on June 21, 2001, focused on the
under-utilization of section 8 vouchers, as well as the
specific problems faced by the homeless and disabled
populations in finding affordable housing. In certain
communities, voucher under-utilization is a significant
problem. Under-utilization of vouchers was attributed to
various causes including the tight rental market, poor
performance by PHAs, targeting of a large percentage of
vouchers to very low-income individuals, low fair market rents
and rent caps of 40 percent of adjusted monthly income. While
approximately 2.3 to 3 million people are homeless some part of
the year, there are 150,000-200,000 people who are
``chronically homeless.'' These individuals are not only poor,
but also suffer from some sort of chronic health problem such
as mental illness, alcoholism, drug abuse or HIV/AIDS. Under
the Clinton Administration, HUD's strategy was to combine
housing with services, known as ``continuum of care,'' where
HUD provided social services in addition to housing. Secretary
Martinez has signaled an interest in shifting responsibility
for care of the homeless with mental health or substance abuse
problems to HHS.
The fourth hearing, held on July 17, 2001, focused on
elderly housing programs and the difficult problems faced by
the elderly in finding suitable affordable housing, as well as
the coordination of housing and services. The Federal
government operates several programs that provide housing for
large numbers of elderly residents. For the past 40 years, the
primary housing program for the elderly has been the Section
202 program. Since its inception, this program has produced
approximately 350,000 housing units for occupancy by the
elderly. Witnesses discussed the special needs of elderly
residents and the integration of services with housing, as well
as planning for aging-in-place. They also addressed the current
supply of elderly housing, the prospects for maintaining the
units within the various Federal programs, and suggestions for
better operation of the existing programs.
national flood insurance program
On Thursday, July 19, 2001, the Subcommittee held a hearing
regarding the National Flood Insurance Program (NFIP) and
repetitive flood losses. The hearing addressed the flood
program proposal contained in the Administration's FY 2002
budget proposal as well as two legislative proposals: H.R.
1428, the Two Floods and You are Out of the Taxpayer's Pocket
Act of 2001, and H.R. 1551, the Repetitive Flood Loss Reduction
Act of 2001. The National Flood Insurance Program was created
as part of the National Flood Insurance Act of 1968. Prior to
that time, insurance companies generally did not offer coverage
for flood disasters because of the high risks involved. The
legislation as amended in 1973 and 1994 authorizes the Federal
Insurance Administration (FIA) and Mitigation Directorate to
administer the NFIP as part of FEMA.
hud proposed budget for fiscal year 2003
On February 13, 2002, the Subcommittee held a hearing on
the proposed budget of the Department of Housing and Urban
Development for fiscal year 2003 where the Honorable Mel
Martinez, Secretary of Housing and Urban Development, was the
only witness. The Administration proposed a total HUD budget of
$31.497 billion, which is a $2.1 billion increase from the
enacted FY 2002 budget, representing close to a seven percent
increase from $29.471 billion. This increase would account for
several new initiatives to expand home ownership, increase
rental vouchers for non-elderly disabled, provide flexible
financing for public housing modernization, redirect community
development resources to the Colonias as well as make housing
counseling a separate program for coordination and targeting.
review of the community development block grant program
On March 14, 2002, the Subcommittee held a hearing entitled
``Review of the Community Development Black Grant Program''.
The Community Development Block Grant (CDBG) program is the
largest source of Federal community development assistance to
State and local governments. Communities may undertake eligible
housing, community development, economic development, and
public services activities. Funded activities must principally
benefit low-and moderate-income persons, or eliminate or
prevent slums and blight, or address a need that poses a threat
to the health or safety of a community. Several witnesses
provided testimony regarding proposals for improving the
program. Specifically, witnesses addressed H.R. 1191,
introduced by Ms. Meeks, which aims to restore the original
intent of the CDBG program, to ``principally'' benefit lower
income people.
review of empowerment zones and renewal communities
On April 10, 2002, the Subcommittee held a hearing entitled
``Review of the Empowerment Zone/Enterprise Community
program''. The hearing examined the EZ/EC program generally and
focused on the discrepancy in funding between the Round I, II,
and III zones. Witnesses addressed the progress of EZs in their
respective States. Hearing testimony also addressed H.R. 2637,
the Round II EZ/EC Flexibility Act of 2001, which authorizes
appropriations to the Secretaries of Housing and Urban
Development and Agriculture for specified urban and rural
empowerment zones and permits the use of those funds for zone
or community strategic plan implementation. The legislation
also provided for the use of Federal funds to pay matching fund
requirements and prevents an empowerment zone or enterprise
community from losing Federal funding because of
reclassification as a renewal community.
leaking underground storage tanks and its affect on housing &
neighborhoods
On Thursday, September 12, 2002, the Subcommittee on
Housing and Community Opportunity held a hearing entitled ``The
Erosion of Communities and Home Values by Leaking Underground
Storage Tanks''. To address a nationwide problem of leaking
underground storage tanks (LUSTs), Congress established a
prevention, detection, and corrective action program in 1984.
In 1986, Congress subsequently created the Leaking Underground
Storage Tank Trust Fund to help the Environmental Protection
Agency (EPA) and states cover the costs of responding to
petroleum LUSTs where owners fail to do so, and to oversee LUST
cleanup activities. Witnesses testified about the public health
and economic problems associated with leaking underground
storage tanks and initiatives being undertaken to deal with
them on the local, State and national levels. The witnesses
also highlighted the impact that LUSTs have in the areas of
environmental remediation, community and economic development,
and safe housing.
non-profit capacity building and technical assistance
On Tuesday, September 17, 2002, the Subcommittee held a
hearing on technical assistance and capacity building programs
to promote housing and economic development. Over the past
fifteen years, the nation's 3,600 community-based development
corporations (CDCs) have built 550,000 homes and apartments,
produced 71 million square feet of commercial and industrial
space, loaned $1.9 billion to 59,000 businesses, and created
247,000 private sector jobs. ``Technical assistance'' is any
measure designed to build the capacity of a CDC to carry out
initiatives in its community. Witnesses testified about local
needs and on the need to ensure that community development
groups are able to secure the resources needed to continue the
important work of revitalizing communities.
mold: a growing problem
On Thursday, July 18, 2002, the Subcommittees on Housing
and Community Opportunity and on Oversight and Investigations
held a joint hearing to examine the extent of problems in the
insurance and housing industry over mold. Mold-related claims
by homeowners rose to over a billion dollars last year in just
one State, approximately a five-fold increase over the previous
year's nationwide total. Across the U.S., homeowners' insurers
paid out $1.18 in losses and expenses for every $1 earned in
premiums. Members of the scientific community testified on the
current understanding of mold issues, and discussed the
literature review by the Centers for Disease Control (CDC) now
underway and due out this spring. Other witnesses discussed the
sudden spike in mold litigation and remediation claims, and how
these lawsuits are affecting the home building industry,
unions, small businesses, and the insurance industry. In
particular, the witnesses talked about the lack of scientific
standards for measuring mold and determining the extent of any
mold dangers, and the need for better guidance or proactive
statements by Federal agencies.
Hearings Held
Financial Health of the Federal Housing Administration's
Single-Family Mutual Mortgage Insurance Fund.--Hearing entitled
``Financial Health of the Federal Housing Administration's
Single-Family Mutual Mortgage Insurance Fund.'' March 20, 2001.
PRINTED, serial no. 107-6.
Proposed Budget of the Department of Housing and Urban
Development for Fiscal Year 2002.--Hearing on the proposed
budget of the Department of Housing and Urban Development for
fiscal year 2002. April 26, 2001. PRINTED, serial no. 107-11.
Housing Affordability Issues.--Hearing on housing
affordability issues. May 3, 22, June 21, and July 17, 2001.
PRINTED, serial no. 107-14.
The National Flood Insurance Program and Repetitive Loss
Properties.--Hearing on the National Flood Insurance Program
and repetitive loss properties. July 19, 2001. PRINTED, serial
no. 107-36.
Proposed Budget of the Department of Housing and Urban
Development for Fiscal Year 2003.--Hearing on the proposed
budget of the Department of Housing and Urban Development for
fiscal year 2003. February 13, 2002. PRINTED, serial no. 107-
54.
Brownfields Redevelopment Enhancement Act.--Legislative
hearing on H.R. 2941, the Brownfields Redevelopment Enhancement
Act. March 6, 2002. PRINTED, serial no. 107-59.
Review of the Community Development Block Grant Program.--
Hearing entitled ``Review of the Community Development Block
Grant Program.'' March 14, 2002. PRINTED, serial no. 107-61.
Housing Affordability for America Act.--Legislative hearing
on H.R. 3995, the Housing Affordability for America Act of
2002. April 10, 23, and 24, 2002. PRINTED, serial no. 107-64.
Review of the Current Status of Empowerment Zones and
Renewal Communities.--Hearing entitled ``Review of the Current
Status of Empowerment Zones and Renewal Communities.'' April
10, 2002. PRINTED, serial no. 107-65.
Fighting Discrimination against the Disabled and Minorities
through Fair Housing Enforcement.--Joint hearing with the
Subcommittee on Oversight and Investigations entitled
``Fighting Discrimination against the Disabled and Minorities
through Fair Housing Enforcement.'' June 25, 2002. PRINTED,
serial no. 107-73.
Mold: A Growing Problem.--Joint hearing with the
Subcommittee on Oversight and Investigations entitled ``Mold: A
Growing Problem.'' July 18, 2002. PRINTED, serial no. 107-77.
Erosion of Communities and Home Values by Leaking
Underground Storage Tanks.--Hearing entitled ``Erosion of
Communities and Home Values by Leaking Underground Storage
Tanks.'' September 12, 2002. Serial no. 107-81.
Technical Assistance and Capacity Building Programs to
Promote Housing and Economic Development--Hearing on technical
assistance and capacity building programs to promote housing
and economic development. September 17, 2002. Serial no. 107-
82.
SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE
(Ratio: 14-12)
DOUG BEREUTER, Nebraska, Chairman
DOUG OSE, California BERNARD SANDERS, Vermont*
Vice Chairman MAXINE WATERS, California
MARGE ROUKEMA, New Jersey BARNEY FRANK, Massachusetts
RICHARD H. BAKER, Louisiana MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Deleware JULIA CARSON, Indiana
JIM RYUN, Kansas BARBARA LEE, California
DONALD A. MANZULLO, Illinois PAUL E. KANJORSKI, Pennsylvania
JUDY BIGGERT, Illinois BRAD SHERMAN, California
MARK GREEN, Wisconsin JANICE D. SCHAKOWSKY, Illinois
PATRICK J. TOOMEY, Pennsylvania CAROLYN B. MALONEY, New York
CHRISTOPHER SHAYS, Connecticut LUIS V. GUTIERREZ, Illinois
GARY G. MILLER, California KEN BENTSEN, Texas
SHELLEY MOORE CAPITO, West Virginia JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey Ex Officio
MICHAEL G. OXLEY, Ohio
Ex Officio
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* Mr. Sanders is an independent, but caucuses with the Democratic
Caucus.
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Legislative Activities
export-import bank reauthorization act
Public Law 107-189 (H.R. 2871; S. 1372)
To reauthorize the Export-Import Bank of the United States,
and for other purposes.
Summary
The Export-Import Bank Reauthorization Act of 2002 extends
the charter of the U.S. Export-Import Bank for 4 years and
creates offices on Small Business Exporters and on Africa
within the Bank. The legislation also improves the operation of
the Tied Aid Credit Program, increases the value of
transactions that the Bank can hold in its portfolio at any
time, and raises the percentage of small business transactions
the Bank must pursue. This measure further mandates that the
Bank take into consideration U.S. trade laws, corrupt practices
of a recipient company and a country's efforts to combat
terrorism when considering a transaction.
Legislative History
H.R. 2871 was introduced in the House by Mr. Bereuter on
September 10, 2001 and referred to the Committee on Financial
Services. The bill was referred to the Subcommittee on
International Monetary Policy and Trade on September 14, 2002.
On September 21, 2001, the Subcommittee on International
Monetary Policy and Trade met in open session and approved H.R.
2871, as amended, for full Committee consideration by a voice
vote. On October 31, 2001, the Committee met in open session
and ordered H.R. 2871 reported to the House with a favorable
recommendation, with an amendment, by a voice vote. The
Committee on Financial Services reported H.R. 2871 to the House
on November 15, 2001 (H. Rept. 107-292).
On August 3, 2001, the Senate Committee on Banking,
Housing, and Urban Affairs reported an original measure, S.
1372, the Export Import Bank Reauthorization Act of 2001, to
the Senate (S. Rept. 107-52). On March 14, 2002, the Senate
laid S. 1372 before the Senate and passed the bill with an
amendment by unanimous consent. The bill was received in the
House on March 18, 2002 and held at the desk.
On April 30, 2002, the Committee on Rules reported a
modified-closed rule providing for the consideration of H.R.
2871 (H.Res. 402). On May 1, 2002, H. Res. 402 was agreed to by
a voice vote. The House considered and passed H.R. 2871 by a
voice vote. Pursuant to the provisions of H.Res. 402, H.R. 2871
was laid upon the table, and the House amended S. 1372 with the
text of H.R. 2871 and requested a conference. The Speaker
appointed conferees from the Committee on Financial Services,
and from the Committee on Government Reform for consideration
of section 7 of the Senate bill and modifications committed to
conference.
On May 9, the Senate disagreed from the House amendment,
agreed to the conference requested by the House, and appointed
conferees. On May 21, the conference met (the Senate chairing),
and agreed to the conference report to accompany S. 1372. On
May 24, 2002, the conference report to accompany S.1372 was
filed in the House (H. Rept. 107-487).
On June 4, 2002, the Committee on Rules reported a rule
providing for the consideration of the conference report to
accompany S. 1372 (H. Res. 433). On June 5, 2002, the House
considered and passed H. Res. 433 by a voice vote. On June 5,
2002, the House agreed to the conference report to accompany S.
1372, by a record vote of 344 yeas and 78 nays.
On June 6, 2002, the Senate approved the conference report
to accompany S.1372 by unanimous consent, clearing the bill for
the White House. The bill was presented to the President on
June 11, 2002, and signed into law on June 14, 2002, becoming
public law number 107-189.
export-import bank extension
Public Law 107-156 (H.R. 3987; S. 2019)
To extend the authority of the Export-Import Bank through
April 30, 2002.
Summary
The bill extended the authority of the Export-Import Bank
through April 30, 2002.
Legislative History
H.R. 3987 was introduced on March 18, 2002, by Mr. Bereuter
and referred to the Committee on Financial Services. The bill
was referred to the Subcommittee on International Monetary
Policy and Trade on April 15, 2002.
The Senate's companion legislation, S. 2019, was introduced
by Mr. Sarbanes on March 14, 2002 and passed by unanimous
consent.
On March 18, 2002, the bill was received in the House and
referred to the Committee on Financial Services. On March 19,
2002, S. 2019 was considered under suspension of the rules and
passed by a voice vote, clearing the bill for the White House.
On March 20, 2002, the bill was presented to the President and
signed into law on March 31, 2002, becoming public law 107-156.
zimbabwe democracy and economic recovery act
Public Law 107-99 (S. 494)
To provide for a transition to democracy and to promote
economic recovery in Zimbabwe.
Summary
S. 494, the Zimbabwe Democracy and Economic Recovery Act of
2001, establishes that it is U.S. policy to support the people
of Zimbabwe in their current struggles to effect peaceful,
democratic change and achieve economic growth. It supports
those goals by requiring the Secretary of the Treasury to
review the feasibility of bilateral debt relief upon
Presidential certification that certain conditions relating to
democratic elections and the rule of law have been fulfilled.
It expresses the sense of the Congress that if such a
certification is made, the U.S. should propose a review of the
feasibility of multilateral debt relief. Until such time as a
Presidential certification is made, it instructs U.S. executive
directors to the relevant international financial institutions
to oppose financial assistance to Zimbabwe, except for basic
human needs. The bill also authorizes bilateral assistance for
land reform and democratic governance and expresses the sense
of Congress that the President should consult with foreign
governments on possible action against individuals responsible
for the breakdown of the rule of law in Zimbabwe and the
identification of overseas assets of those individuals.
Legislative History
S. 494 was introduced by Senator Frist on March 8, 2001. On
July 12, 2001, the bill, as amended by a substitute, was
ordered reported by the Committee on Foreign Relations without
a written report. The legislation passed the Senate by
unanimous consent on August 1, 2001.
S. 494, as amended, was received in the House on August 2,
2001, at which time it was referred to the Committee on
Financial Services, and additionally to the Committee on
International Relations.
On August 24, 2001, the bill was referred to the House
Financial Services Committee's Subcommittee on International
Monetary Policy and Trade.
On November 28, 2001, the House Committee on International
Relations met in open session and ordered S. 494, as amended,
reported. During the markup, amendments were adopted that
addressed those portions of the bill which fell within the
jurisdiction of the Committee on Financial Services and were
acceptable to the Committee on Financial Services. The bill, as
amended, was reported on December 4, 2001 (H. Rept. 107-312,
Part I).
On December 4, the Committee on Financial Services was
discharged from the further consideration of S. 494 pursuant to
an exchange of correspondence between the Committees.
On December 4, 2001, the bill was considered under
suspension of the rules. On December 5, the House passed S. 494
by a record vote of 396 yeas and 11 nays.
On December 5, the bill was received in the Senate and on
December 11, the Senate agreed to the House amendment, clearing
the bill for the White House. S. 494 was presented to the
President on On December 14 and the bill was signed into law by
the President, becoming public law 107-99.
sudan peace act
Public Law 107-245 (H.R. 5531; H.R. 931; H.R. 2052; S. 180)
To facilitate famine relief efforts and a comprehensive
solution to the war in Sudan.
Summary
The Sudan Peace Act states that Congress condemns
violations of human rights on all sides of the conflict in
Sudan (including actions by the Sudanese Government) and
recognizes the need for continued leadership by the United
States in that country. The bill authorizes the President to
provide increased assistance to the areas of Sudan that are not
controlled by the Government of Sudan to prepare the population
for peace and democratic governance. To this end,
appropriations are authorized for each of the fiscal years
2003, 2004, and 2005. The bill also expresses the sense of the
Congress that the United Nations should help facilitate peace
and recovery in Sudan and mandates annual reports by the
Secretary of State on oil exploitation by the Government of
Sudan as well as the status of humanitarian relief in Sudan.
Legislative History
H.R. 931, the Sudan Peace Act, was introduced in the House
on March 7, 2001, by Mr. Tancredo and 23 original cosponsors
and referred to the Committee on International Relations. On
May 16, 2001, the Subcommittee on Africa met in open session
and approved H.R. 931 for full Committee consideration, as
amended, by a voice vote.
H.R. 2052, legislation similar to H.R. 931 as amended, was
introduced in the House on June 5, 2001 by Mr. Tancredo and 21
original cosponsors and referred to the Committee on
International Relations, and additionally to the Committee on
Financial Services.
On June 6, 2001, the Committee on International Relations
met in open session and ordered H.R. 2052 reported to the House
by a voice vote. The Committee on International Relations
reported the bill to the House on June 8, 2001 (H. Rept. 107-
92, Part I) and the Committee on Financial Services was
discharged from the further consideration of the bill pursuant
to an exchange of correspondence between the committees of
jurisdiction.
On June 12, 2001, the Committee on Rules reported an open
rule providing for the consideration of H.R. 2052 (H. Res.
162). On June 13, 2001, H. Res. 162 passed the House by a voice
vote. The House considered H.R. 2052 and passed the bill by a
record vote of 422 yeas and 2 nays on June 13, 2001.
The bill was received in the Senate on June 14, 2001 and
referred to the Committee on Foreign Relations on June 21,
2001.
S. 180, the Sudan Peace Act, was introduced in the Senate
on January 25, 2001 and referred to the Senate Committee on
Foreign Relations. On July 12, the Senate Committee on Foreign
Relations met in open session and ordered the bill reported
favorably with an amendment. S. 180 was reported to the Senate
without written report on July 16, 2001. On July 19, 2001, the
Senate passed the bill with an amendment by unanimous consent.
On July 20, 2001, S. 180 was received in the House and
referred to the House Committee on International Relations. On
November 15, 2001, the Committee on International Relations was
discharged from the further consideration of the bill, and the
House passed S. 180 with an amendment consisting of the text of
H.R. 2052 as passed by the House by unanimous consent. The
House insisted on its amendment, and requested a conference
with the Senate on S. 180 by unanimous consent. The Speaker
appointed conferees from the Committee on International
Relations, and from the Committee on Financial Services for
consideration of sections 8 and 9 of the House amendment.
H.R. 5531 was introduced in the House on October 2, 2002 by
Mr. Tancredo and four original cosponsors. The bill was
referred to the Committee on International Relations and to the
Committee on Financial Services.
On October 7, 2002, the House considered the bill under
suspension of the rules and passed H.R. 5531 by a record vote
of 359 yeas and 8 nays. The bill was received in the Senate on
October 8, 2002.
On October 9, 2002, the bill was approved in the Senate
without amendment by unanimous consent, clearing the bill for
the White House. The bill was presented to the President on
October 11, 2002 and signed into law on October 21, becoming
public law 107-245.
global access to hiv/aids prevention, awareness, education and
treatment act of 2001
(H.R. 2069; H.R. 2209; S. 2525)
To amend the Foreign Assistance Act of 1961 and the Global
AIDS and Tuberculosis Relief Act of 2000 to authorize
assistance to prevent, treat, and monitor HIV/AIDS in sub-
Saharan Africa and other developing countries.
Summary
H.R. 2069, the Global Access to HIV/AIDS Prevention,
Awareness, Education and Treatment Act of 2001, as passed by
the House, authorizes bilateral and multilateral assistance to
combat the HIV/AIDS pandemic in countries in sub-Saharan Africa
and other developing countries, and reinforces U.S. policy
input into the negotiation of an international HIV/AIDS trust
fund and the role of the World Bank as fiduciary for the fund.
H.R. 2209, the World Bank AIDS Trust Fund Amendments Act of
2001, amends the Global AIDS and Tuberculosis Relief Act of
2000 (Public Law 106-264) to increase the authorization for the
AIDS trust fund, expand the focus of the fund to include
malaria, as well as make clear that tuberculosis is also
covered by the legislation. The bill also extends the deadline
for a General Accounting Office (GAO) report on the
effectiveness of the fund. The introduction of the bill
followed Subcommittee hearings on May 15, 2001 and June 12,
2001, at which witnesses from the Treasury Department, UNAIDS,
and the private sector testified regarding the development of
an international HIV/AIDS trust fund.
Legislative History
H.R. 2069 was introduced by Mr. Hyde and referred to the
Committee on International Relations. On June 27, 2001, the
Committee on International Relations, meeting in open session,
ordered H.R. 2069 reported, as amended. The bill was reported
to the House on July 12, 2001 (H. Rept. 107-137).
On June 18, 2001, Mr. Bereuter introduced H.R. 2209, the
World Bank AIDS Trust Fund Amendments Act of 2001. The bill was
referred to the Committee on Financial Services on June 18,
2001, and on June 25, 2001 was referred to the Subcommittee on
International Monetary Policy and Trade.
On December 11, 2001, H.R. 2069, with amendments, was
considered under suspension of the rules. These amendments
included section 4 of H.R. 2209 as well as additional
references to the Global AIDS and Tuberculosis Relief Act
(Public Law 106-264) and the role of the World Bank in the AIDS
trust fund. H.R. 2069 was passed by voice vote on December 11,
2001.
Thereafter, the Senate passed similar legislation, S. 2525,
the United States Leadership Against HIV/AIDS, Tuberculosis,
and Malaria Act of 2002, on July 12, 2002. Title III of the
Senate bill expands the Highly Indebted Poor Country (HIPC)
program by establishing an additional revenue-based criterion
for debt relief. The House version of H.R. 2069 does not
address multilateral debt relief.
The Senate amended H.R. 2069 with the text of S. 2525 as
amended on July 12, 2002. The bill was received in the House on
July 15, 2002. No further action was taken on this measure in
the 107th Congress.
regional multilateral development bank authorizations
(H.R. 2604)
To authorize the United States to participate in and
contribute to the seventh replenishment of the resources of the
Asian Development Fund and the fifth replenishment of the
resources of the International Fund for Agricultural
Development, and to set forth additional policies of the United
States towards the African Development Bank, the African
Development Fund, the Asian Development Bank, the Inter-
American Development Bank, and the European Bank for
Reconstruction and Development.
Summary
H.R. 2604 authorizes U.S. contributions of $412 million to
the Asian Development Fund (AsDF) and $30 million to the
International Fund for Agricultural Development (IFAD) for the
replenishment of these two institutions. Additionally, this
measure directs the U.S. Executive Directors of the regional
multilateral development banks (Asian Development Bank/Fund;
the African Development Bank/Fund; the Inter-American
Development Bank; the European Bank for Reconstruction and
Development); and IFAD to use their voice and votes to address
issues relating to transparency, user fees, HIV/AIDS, projects
that include dams, international terrorism, privatization of
government-held industries, opposition to reducing minimum
wages below internationally recognized poverty levels, and
arsenic in drinking water in South Asia.
Legislative History
H.R. 2604 was introduced by Mr. Bereuter and 6 original
cosponsors on July 24, 2001, and was referred to the Committee
on Financial Services. On August 8, 2001, the bill was referred
to the Subcommittee on International Monetary Policy and Trade.
On September 21, 2001, the Subcommittee on International
Monetary Policy and Trade met in open session and approved H.R.
2604 for full Committee consideration, as amended, by a voice
vote. On October 31, 2001, the Committee met in open session
and ordered H.R. 2604 reported to the House with a favorable
recommendation, with an amendment, by a voice vote.
The Committee on Financial Services reported H.R. 2604 to
the House on November 15, 2001 (H. Rept. 107-291). On May 1,
2002, the House considered H.R. 2604 under suspension of the
rules and passed the bill by a voice vote. On May 2, 2002, H.R.
2604 was received in the Senate and referred to the Committee
on Foreign Relations. No further action was taken on H.R. 2604
in the 107th Congress.
Oversight Activities
state of the international financial system and imf reform
On May 22, 2001 The Full Committee on Financial Services
heard testimony from Treasury Secretary Paul O'Neill on the
state of the international financial system and International
Monetary Fund (IMF) reform. This hearing is required to occur
annually by the FY 1999 Foreign Operations Appropriations
legislation, which also granted an $18 billion increase in U.S.
contributions to the IMF. Secretary O'Neill highlighted the
need to carefully review the operations of the IMF and the
multilateral development banks (MDBs). Specifically, Secretary
O'Neill called for increased transparency in these
institutions, clear and essential goals for the MDBs, a
movement from loans to grants and a focus on results-based
performance indicators.
On February 28, 2002, the Full Committee on Financial
Services held the second hearing of the 107th Congress on the
state of the international financial system and IMF reform. The
Committee again heard testimony from Secretary of the Treasury
Paul O'Neill in which he called for the need to strengthen
international cooperation to achieve economic growth and
stability. Additionally, Secretary O'Neill outlined efforts to
combat the financing of terrorist activities and to promote
global free trade. Specifically, Secretary O'Neill discussed in
detail the Administration's proposal to shift some of the
financial aid provided by the World Bank from loans to grants.
world bank and imf activities in africa
On May 15, 2001, the Subcommittee on International Monetary
Policy and Trade held an oversight hearing on the activities of
the World Bank and the International Monetary Fund (IMF) in
Africa. At the hearing witnesses from the General Accounting
Office, a representative from the Carnegie Endowment for Peace,
the Joint United Nations Program on HIV/AIDS, the staff for the
World Health Organization's Commission on Macroeconomics and
Health, and a representative of a non-governmental organization
provided testimony on the activities of the World Bank and the
IMF in Africa. Concerns were raised relating to the HIV/AIDS
pandemic and user fees attached to loans from the World Bank
and the IMF.
trade in financial services
On June 26, 2001, the Subcommittee on International
Monetary Policy and Trade conducted a hearing on current issues
and future developments in trade in financial services.
Witnesses on behalf of the American Insurance Association, the
Bankers' Association for Trade and Finance, the Securities
Industry Association, and the Center for Economic and Policy
Research testified on the current state of trade in financial
services and the outlook for expansion of this trade.
Specifically, several members of the panel called for passage
of Trade Promotion Authority, which many of the witnesses
testified would strengthen the ability of U.S. negotiators to
gain access to foreign markets for financial services.
argentina's economic meltdown
On February 6, 2002, the Subcommittee on International
Monetary Policy and Trade held a hearing on the economic crisis
facing Argentina. Undersecretary of the Treasury John Taylor
testified, and outlined the economic dilemmas facing Argentina
and the U.S. policy relating to this issue. Undersecretary
Taylor stated that the Administration would not support
additional funds for Argentina from the IMF until Argentina
implements significant economic and institutional changes.
On March 5, 2002, the Subcommittee held a second hearing on
the economic crisis in Argentina. Witnesses on behalf of
Carnegie Mellon University, Johns Hopkins University, the
Institute for International Economics, and the Center for
Economic Policy and Research testified before the Subcommittee,
and outlined the causes and their proposed solutions to the
dilemmas facing Argentina. Several witnesses called for a
continued halt in financial aid until economic reforms are
undertaken.
changes to the international development association
The Subcommittee on International Monetary Policy and Trade
held three hearings on issues related to the International
Development Association (IDA). On May 2, 2002, the Subcommittee
received testimony from the Director of International Affairs
and Trade at the General Accounting Office (GAO). At this
hearing, the GAO outlined proposals to move from loans to
developing countries to grants to qualified countries.
On July 19, 2002, the Subcommittee received testimony from
representatives of the Bretton Woods Committee, Bread for the
World, OXFAM America and the AFL-CIO on proposed changes to the
IDA. Witnesses voiced support for a movement from loans to
grants and called for additional debt relief through the HIPC
Trust Fund.
On July 25, 2002, the Subcommittee received testimony from
Undersecretary of the Treasury John Taylor on the
Administration's authorization request for the IDA.
Additionally, the Undersecretary discussed the authorization of
the African Development Fund.
the european union's financial services action plan and implications
for the american financial services industry
On May 22, 2002, the Full Committee on Financial Services
conducted a hearing on The European Union's Financial Services
Action Plan (FSAP) and implications for the American financial
services industry. In an effort to become the most competitive
and dynamic knowledge-based economy in the world by 2010, the
EU has embarked upon an ambitious plan to overhaul its
financial services sector. Witnesses on behalf of the Federal
Reserve Board, Treasury, the Securities and Exchange
Commission, the Securities Industry Association and academia
testified on the FSAP and its short- and long-term effects.
According to many of the witnesses, the EU's actions will
generally have positive benefits for American financial
services firms, and the U.S. government agencies represented at
the hearing are working closely with their European
counterparts. The Committee will continue to follow the FSAP as
its provisions are implemented in the coming years.
north american development bank
The Subcommittee on International Monetary Policy and Trade
conducted two hearings which addressed the North American
Development Bank (NADBank). On May 2, 2002, the Subcommittee
conducted a hearing where private sector witnesses testified on
the need to reform the NADBank. At this hearing, the
Subcommittee heard testimony from the following witnesses: a
mayor and city manager of two communities along the Texas/
Mexico border; the former chief executive officer of the
NADBank; and a mortgage banker who uses the NADBank.
Furthermore, on July 25, Undersecretary John Taylor of the
Department of Treasury testified, among other things, on the
Administration's request to reform the NADBank.
Hearings Held
Reauthorization of the Export-Import Bank--Hearing on the
activities of the Export-Import Bank and its reauthorization.
Hearing held on May 2 and 8, 2001. PRINTED, serial number 107-
13.
U.S. Policy Towards the African Development Bank and the
African Development Fund--Hearing examining U.S. policy in the
African Development Bank and Fund. Hearing held on April 25,
2001. PRINTED, serial number 107-10.
World Bank and IMF Activities in Africa--Oversight hearing
on the activities of the World Bank and the IMF in Africa.
Hearing held on May 15, 2001. PRINTED, serial number 107-15.
FY 2002 Authorization Requests for International Financial
Institutions, and Activities of the African Development Bank,
the World Bank, and the IMF in Africa--Hearing on the
Administration's FY 2002 authorization requests. PRINTED,
serial Number 107-23.
Trade in Financial Services--Current Issues and Future
Developments--Hearing on U.S. trade in financial services.
Hearing held on June 26, 2001. PRINTED, serial Number 107-30.
Argentina's Economic Meltdown: Causes and Remedies--Two
hearings on the economic crisis facing Argentina featuring
witnesses from the Treasury Department and private sector
economists. February 6 and March 5, 2002. PRINTED, serial
Number 107-52.
Proposed Changes to Both the World Bank--International
Development Association and the North American Development
Bank--Hearing on Administration requests for the World Bank and
North American Development Bank. PRINTED, serial Number 107-68.
Expected Authorization Request on the U.S. Participation in
the World Bank--International Development Association (IDA)--
Hearing on the expected authorization requests for the IDA
featuring witnesses from nongovernmental organizations. Hearing
held on July 19, 2002.
Expected Authorization Request on the U.S. Participation in
the World Bank--International Development Association (IDA) and
the African Development Fund--Hearing on authorization requests
featuring John Taylor, Undersecretary of the Treasury. Hearing
held on July 25, 2002.
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
(Ratio: 11-9)
SUE KELLY, New York, Chair
RON PAUL, Texas LUIS V. GUTIERREZ, Illinois
Vice Chairman JAY INSLEE, Washington
PETER T. KING, New York JANICE D. SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio DENNIS MOORE, Kansas
CHRISTOPHER COX, California STEPHANIE TUBBS JONES, Ohio
DAVE WELDON, Florida MICHAEL E. CAPUANO, Massachusetts
WALTER B. JONES, North Carolina RONNIE SHOWS, Mississippi
JOHN B. SHADEGG, Arizona JOSEPH CROWLEY, New York
VITO FOSSELLA, New York WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio Ex Officio
MICHAEL G. OXLEY, OH
Ex Officio
Oversight Activities
efforts by financial regulators to fight fraud and protect consumers
On March 6, 2001, the Subcommittee on Oversight and
Investigations and the Subcommittee on Financial Institutions
and Consumer Credit held a joint hearing to examine ways in
which financial regulators of the insurance, banking, and
securities sectors are working together to protect consumers,
as is required under the Gramm-Leach-Bliley Act. The need to do
so was highlighted by Martin Frankel, who migrated to the
insurance industry after being barred from the securities
industry. Frankel stole over $200 million from insurance
companies before being captured. Witnesses included senior
officials of the Treasury Department, FBI, SEC, insurance and
business associations, and the General Accounting Office.
housing authority of new orleans
On June 4, 2001, the Subcommittee held a field hearing in
New Orleans on the report issued by the HUD Inspector General
on the lack of decent, safe, and sanitary housing provided by
the Housing Authority of New Orleans (HANO). The report
disclosed a lack of progress in providing quality housing since
HUD and the City of New Orleans signed a 1996 Cooperative
Endeavor Agreement. The report stated that after spending over
$139 million of the $243 million it received just for
modernization activities in the previous eight years, HANO had
not revitalized even one of its conventional housing sites. HUD
had spent, in total, over $800 million on HANO since 1992,
without an improvement in housing for residents. The hearing
also examined ways in which a judicial receivership could
result in long-term improvements to the housing managed by
HANO. Witnesses included the Mayor of New Orleans, the Regional
Inspector General from HUD, a senior HUD official, and long-
time residents of HANO. Committee and other New Orleans-area
Members continued to discuss HANO's future with the HUD
Secretary throughout the year.
implementation of eft requirements of the debt collection improvement
act of 1996 and the use of etas
On June 20, 2001, the Subcommittee held a hearing to
examine the status of the Electronic Funds Transfer
requirements of the Debt Collection Improvement Act of 1996,
known as the EFT 99 program, and to discuss the use Electronic
Transfer Accounts, or ETAs. The purpose of the hearing was to
determine the progress made towards a checkless system for
paying Federal salaries, pensions, vendor payments, and Social
Security benefits, whether the change has reduced costs, and
whether low- and middle-income Federal payment recipients who
do not have bank accounts are receiving their funds
electronically through ETAs. Witnesses included the Treasury
Department Assistant Secretary with responsibility over the
program, the CEO of Banco Popular, which is heavily involved in
the ETA program, and the Managing Attorney of the National
Consumer Law Center. At the hearing, Chairwoman of the
Subcommittee and its ranking minority member released a letter
to GAO requesting a study of the EFT and ETA programs and
recommendations for improvements.
the sec's role in capital formation
On June 26, 2001, the Subcommittee held a hearing to
examine the SEC's role in capital formation. Capital formation
has been an implicit responsibility of the SEC since it was
first created. In 1996, securities laws were amended by the
National Securities Markets Improvement Act to explicitly
provide that capital formation is an important responsibility
of the SEC. In that act, the SEC was given general exemptive
authority to allow them to waive specific requirements on a
case-by-case basis, in order to give the SEC additional
flexibility in assisting businesses access to the capital
markets. The hearing reviewed the progress the SEC has made in
furtherance of its statutory responsibilities to assist capital
formation and explored suggestions as to how the SEC's could
make greater progress. Witnesses included representatives of
venture capital firms and the Vice Chairman of the American
Conservative Union.
financial aspects of internet gambling
On July 12, 2001, the Subcommittee held a hearing to
examine whether to take legislative action against internet
gambling. In a few short years, the Internet gambling industry
has exploded. According to an Internet gambling committee of
the National Association of Attorneys General, there were less
than 25 such sites on the Web in the mid-1990s. Today, one of
the Nation's leading securities firms estimates that there are
between 1,200 and 1,400 e-gaming Web sites. In 2000, the House
Banking Committee approved legislation that would have tackled
prohibited gambling operations from accepting credit cards,
checks, or other bank instruments in connection with illegal
Internet gambling. The 106th Congress adjourned without
enacting that or any other legislation. The hearing examined
the changes in the industry since the previous Congress and the
possible impacts of legislation. Witnesses included officials
from gaming associations, law enforcement agencies, State
lotteries, the NCAA, and addiction treatment organizations.
over-regulation of automobile insurance
On August 1, 2001, the Subcommittee held a hearing on the
effects of State over-regulation of auto insurance on consumer
choice. In New Jersey, over one-half of the 15 largest auto
insurers in the country have either left or will leave in the
near future, claiming excessive rate regulation as the reason.
Over one million people in New Jersey will lose their
automobile insurance, with a dwindling supply of alternative
companies willing to do business in the State. In
Massachusetts, two-thirds of those same 15 largest insurers
either write little or no business or refuse to do business at
all in the State, for the same reason as in New Jersey.
Conversely, in Illinois and South Carolina, there are numerous
auto insurance companies providing consumers with real choices
at competitive prices without subsidizing risky drivers with
bad records. In South Carolina, the number of insurers
accessible to consumers has doubled since the State eliminated
artificial price controls. Witnesses included representatives
from three major insurance associations, a Vice President of
the Brookings Institution, and the Director of Insurance from
the Consumer Federation of America.
problems in the hud section 203(k) housing program
On September 10, 2001, the Subcommittee held a field
hearing in Harlem, New York, on the fraud and severe management
problems in the Section 203(k) housing program, under which HUD
guarantees loans made to purchase and renovate single-family
housing. Reports by the GAO and HUD OIG, and news organizations
disclosed massive fraud in Harlem, Brooklyn, and the Bronx by
speculators who took advantage of poor HUD oversight to bilk
HUD and individual homebuyers out of tens of millions of
dollars from 1995-2000. The HD OIG has obtained convictions
against several dozen people involved in the schemes. The
hearing examined the extent of the fraud and the impacts on
individual homebuyers and community development. Witnesses
included the HUD Assistant Secretary with responsibility for
the program, senior officials from GAO and the HUD OIG, local
development leaders, the Commissioner of the New York City
housing authority, and victims. The HUD Assistant Secretary
announced HUD's intention to work with the New York City
housing authority towards a solution to the problems. Late in
December, 2001, HUD Secretary Martinez and New York City Mayor
Giuliani announced a program under which HUD would contribute
significantly to the completion of work on hundreds of units.
identity theft of the deceased
On November 8, 2001, the Subcommittee held a joint hearing
with the Subcommittee on Social Security of the Committee on
Ways and Means on preventing identity theft of the deceased by
terrorists and criminals. The purpose of the hearing was to
seek ways to ensure that the Death Master File (DMF) is
transmitted more quickly from the Social Security
Administration to the financial services industry, in order to
protect families of the deceased from theft and financial
fraud. The issue arose when a man detained in Great Britain,
and suspected of training four of the terrorists who hijacked
the airliners on September 11, was found to have used the
Social Security number of a New Jersey woman who died in 1991.
Witnesses included senior officials from the Social Security
Administration and Commerce Department, GAO analysts who
testified on the transmission and use of the DMF, attorneys
representing the financial services industry, a special counsel
with expertise in identity theft, and privacy advocates.
The Chairwoman of the Subcommittee, Ms. Kelly, secured the
commitments of the parties towards a more rapid distribution of
the DMF. Thereafter, the Social Security Administration and
Commerce Department announced that beginning in February 2002,
they would jointly reduce the amount of time needed to release
the DMF from over 35 days to approximately 10 days.
impacts of enron collapse on investors and financial markets
On December 12, 2001, the Subcommittee held a joint hearing
with the Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises on the impacts of the collapse
of Enron, Inc., the biggest bankruptcy in American history. The
hearing examined the causes of the collapse as known at that
time, including the use of special purpose entities and other
accounting techniques by Enron that were reviewed and ratified
by Arthur Andersen, Enron's auditor. The hearing also touched
upon the SEC's oversight of the financial statements certified
by accountants; the accounting rules that permitted Enron to
not report billions of dollars in debt; and the actions of
securities analysts following Enron, who failed to warn
investors of its weakness. Witnesses included the Chief
Accountant of the SEC, the Chief Executive Officer of Arthur
Andersen, the Secretary-Treasurer of the AFL-CIO, and an expert
on securities analysts.
the patriot act oversight: investigating patterns of terrorist
financing
On February 12, 2002, the Subcommittee held a hearing to
examine the initial progress under title III of the USA PATRIOT
Act (Public Law 107-56), signed by President Bush on October
26, 2001. The Act provided new tools to law enforcement to
identify the patterns of financing used by terrorists and hence
stop them before any future acts could occur. The Act also
contained a number of provisions that seek to combat
underground ``Hawala'' networks, and the hearing examined the
investigative efforts have brought us closer to closing illegal
Hawalas. Witnesses from the Treasury and Justice Department,
the FBI, and private industry discussed the multilateral
efforts to gather, disseminate, and use information about
monetary flows in new ways to detect and prevent terrorism.
Recent cases against suspected terrorist financiers were
highlighted, and the witnesses discussed the balancing between
investigatory requirements and the protection of civil
liberties.
retirement protections: fighting fraud in the sale of death
On February 26, 2002, the Subcommittee held a hearing on
the use and potential abuse of viatical settlements. Viatical
settlements involve companies paying cash to purchase life
insurance policies from terminally ill people at a fraction of
the policy value and then reselling the policies to investors.
The terminally ill individual gets immediate up-front cash, and
the investors can get a significant return when the individual
dies. Additional commissions go to the broker who negotiates
the deal, the agent who finds the investors, the evaluators who
review the individual's medical files, and the settlement
company and escrow service. The hearing witnesses from the
industry and State regulators talked about the importance of
fighting viatical fraud and educating consumers about these
investments, and in particular, the need to promote better
consumer education for retirement planning by the elderly. The
witnesses also discussed the critical need for coordination
among Federal and State agencies, and the ongoing desirability
of expanded coordination and access to criminal and
disciplinary databases, such as through the Financial Services
Antifraud Network Act of 2001.
how much are americans at risk until congress passes terrorism
insurance protection?
On February 27, 2002, the Subcommittee held the first
Congressional hearing to examine the implications of a lack of
terrorism insurance. In the five months since September 11, the
risk for terrorism-related losses had been shifted from
reinsurers to primary insurers and then to the insured.
Reinsurers and insurers had begun shedding their exposure to
terrorism risk as insurance contracts came up for renewal,
leaving policy holders increasingly exposed to losses from a
terrorist attack. Numerous officials for the insurance and
construction industries, the Treasury Department, State
regulators, the GAO, and other interested parties testified or
submitted statements for the record on the negative impacts
that the lack of insurance was having on major construction
projects and employment.
the effects of the global crossing bankruptcy on investors, markets,
and employees
On March 21, 2002, the Subcommittee held the first
Congressional hearing on the impacts and causes of the
bankruptcy of Global Crossing, Ltd., then the fourth biggest
bankruptcy in the history of the United States. The hearing
examined the impacts and propriety of the accounting model for
the recognition of income from trades, or ``swaps,'' of high-
speed fiber-optic telecom cable capacity. Each telecom company
reports expected income from such swaps, or ``pro forma''
results, differently, since such future earnings need not be
reported for in accordance with generally accepted accounting
principles. Witnesses included the Chief Executive Officer and
the Chief Financial Officer of Global Crossing; senior
executives from Qwest Communications International, WorldCom,
Inc., and Cable & Wireless Global; a representative from the
SEC; and two telecom analysts. After the hearing, the Committee
continued to investigate the bankruptcy, the sale of the
company to foreign interests, and the company's ties to stock
analysts and investment banking firms (see below). In August,
Qwest officials clarified and corrected its testimony after
investigations revealed discrepancies in its accounting for
swaps, resulting in sizable restatements in earnings for prior
periods.
one broker gone bad: punishing the criminal, making victims whole
On May 23, 2002, the Subcommittee held the first
Congressional hearing to examine the activities of indicted
former Cleveland stockbroker, Frank Gruttadauria. Gruttadauria
was the manager of the Cleveland branch of Lehman Brothers, and
at the time of the hearing was alleged to have stood accused of
having defrauded his clients of as much as $300 million over a
15-year period. The goals of the hearing were to determine the
extent of the losses suffered by his clients, and whether
control systems in the industry and the SEC failed to detect
and thwart his activity. Committee reviews of SEC documents
prior to the hearing revealed that the SEC missed 1993 evidence
of ``account-churning'' that could have prevented years of
fraud and millions of dollars in victim losses. The Speaker of
the House introduced his constituent, who suffered major losses
due to Gruttadauria's activities. The SEC and witnesses from
Lehman Brothers, SG Cowen and CO., the NYSE, the NASD, and
NASAA pledged their cooperation in strengthening compliance
departments and placing more emphasis on tougher enforcement.
The hearings made it clear that appropriate efforts need to be
undertaken by the SEC and the Self-Regulatory Agencies (SROs)
to ensure improvements in information sharing and revisions in
relevant rules, regulations and guidelines against nefarious
activities by broker/dealers. The NYSE and NASD thereafter
proposed new rules for the SEC's approval. On November 14,
2002, Gruttadauria was sentenced to seven years in prison for
his illegal acts.
fighting discrimination against the disabled and minorities through
fair housing enforcement
On June 25, 2002, the Subcommittees on Housing and
Community Opportunity and on Oversight and Investigations held
a joint hearing on the extent of discrimination against the
disabled and minorities and HUD's efforts to fight such
discrimination. Past leadership at HUD failed to process fair
housing cases in a timely manner. At the end of FY 2000, the
percentage of fair housing cases remaining open past the
statutory deadline of 100 days was over 80 percent. At the end
of the first fiscal year of the Bush Administration, FY 2001,
the aged-case inventory had been reduced to 37.1 percent, the
first time since the passage of Fair Housing Act Amendments of
1988 that HUD's aged-case backlog has dropped below 50 percent.
Housing consultants and a senior HUD official testified about
the past lack of attention to the caseload and current HUD
leadership's efforts to reduce the caseload.
mold: a growing problem
On Thursday, July 18, 2002, the Subcommittees on Housing
and Community Opportunity and on Oversight and Investigations
held a joint hearing to examine the extent of problems in the
insurance and housing industry over mold. Mold-related claims
by homeowners rose to over a billion dollars last year in just
one State, approximately a five-fold increase over the previous
year's nationwide total. Across the U.S., homeowners' insurers
paid out $1.18 in losses and expenses for every $1 earned in
premiums. Members of the scientific community testified on the
current understanding of mold issues, and discussed the
literature review by the Centers for Disease Control (CDC) now
underway and due out this spring. Other witnesses discussed the
sudden spike in mold litigation and remediation claims, and how
these lawsuits are affecting the home building industry,
unions, small businesses, and the insurance industry. In
particular, the witnesses talked about the lack of scientific
standards for measuring mold and determining the extent of any
mold dangers, and the need for better guidance or proactive
statements by Federal agencies.
catastrophic bonds: spreading risk
On October 8, 2002, the Subcommittee held a hearing on the
role of risk-linked securities-in particular, ``cat'' bonds-to
facilitate greater capacity in traditional catastrophic
insurance markets. The General Accounting Office presented a
report, requested by the House Financial Services Committee,
examining the role of these securities and current factors
affecting their use. The report findings were categorized into
four regulatory, accounting, tax, and investor areas: (1)
regulatory--the regulatory accounting treatment of
securitization, and how risk transfer from non-indemnity based
coverage (securitization compensation based on the size of an
event) can be adjusted to allow credit similar to traditional
indemnity based reinsurance (compensation based on an insurer's
losses); (2) accounting--the effect of a proposed
capitalization requirement interpretation on SPRV's as put
forward by FASB, and whether increasing the equity requirements
in these vehicles would prohibitively increase the costs of
securitization; (3) tax--allowing for ``pass-through'' tax
treatment of these instruments at the SPRV level (whether
there's a double taxation of the investment); and (4)
investment--the difficulty of assessing and disclosing the
risks of these instruments by fund managers and other
institutional investors. The Subcommittee received additional
testimony and from the National Association of Insurance
Commissioners regarding their activities to facilitate and
reduce regulatory barriers to the catastrophic financial
market, as well as the bond market industry, a reinsurance
company, and one of the largest bond placement companies in the
United States.
Hearings Held
Protecting Consumers: What Can Congress Do to Help
Financial Regulators Coordinate Efforts to Fight Fraud. Joint
hearing with the Subcommittee on Financial Institutions and
Consumer Credit entitled ``Protecting Consumers: What Can
Congress Do to Help Financial Regulators Coordinate Efforts to
Fight Fraud.'' March 6, 2001. March 6, 2001. PRINTED, serial
no. 107-2.
Inspector General's Report on the Housing Authority of New
Orleans. Field hearing in New Orleans, Louisiana on the
Inspector General's report on the Housing Authority of New
Orleans. June 4, 2001. PRINTED, serial no. 107-21.
Implementation of EFT Requirements. Hearing on the
implementation of EFT requirements. June 20, 2001. PRINTED,
serial no. 107-27.
The SEC's Role in Capital Formation: Help or Hinderance?
Hearing entitled ``The SEC's Role in Capital Formation: Help or
Hinderance?'' June 26, 2001. PRINTED, serial no. 107-29.
Financial Aspects of Internet Gaming: Good Gamble or Bad
Bet? Hearing entitled ``Financial Aspects of Internet Gaming:
Good Gamble or Bad Bet?'' July 12, 2001. PRINTED, serial no.
107-34.
Over-Regulation of Automobile Insurance: A Lack of Consumer
Choice. Hearing entitled ``Over-Regulation of Automobile
Insurance: A Lack of Consumer Choice.'' August 1, 2001.
PRINTED, serial no. 107-42.
Section 203(k) Housing Program. Field hearing in New York,
New York, on the section 203(k) housing program. September 10,
2001. PRINTED, serial no. 107-44.
Preventing Identity Theft by Terrorists and Criminals.
Joint hearing with the Committee on Ways and Means Subcommittee
on Social Security on preventing identity theft by terrorists
and criminals. November 8, 2001. PRINTED, serial no. 107-50.
The Enron Collapse: Impact on Investors and Financial
Markets. Joint hearing with the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises
entitled ``The Enron Collapse: Impact on Investors and
Financial Markets.'' December 12, 2001. PRINTED, serial no.
107-51, Part I.
PATRIOT Act Oversight: Investigating Patterns of Terrorist
Financing. Hearing entitled ``PATRIOT Act Oversight:
Investigating Patterns of Terrorist Financing.'' February 12,
2001. PRINTED, serial no. 107-53.
Retirement Protection: Fighting Fraud in the Sale of Death.
Hearing entitled ``Retirement Protection: Fighting Fraud in the
Sale of Death.'' February 26, 2002. PRINTED, serial no. 107-55.
How Much are Americans at Risk Until Congress Passes
Terrorism Insurance Protection? Hearing entitled ``How Much are
Americans at Risk Until Congress Passes Terrorism Insurance
Protection?'' February 27, 2002. PRINTED, serial no. 107-57.
The Effects of the Global Crossing Bankruptcy on Investors,
Markets, and Employees. Hearing entitled ``The Effects of the
Global Crossing Bankruptcy on Investors, Markets, and
Employees.'' March 21, 2001. PRINTED, serial no. 107-63.
One Broker Gone Bad: Punishing the Criminal, Making Victims
Whole. Hearing entitled ``One Broker Gone Bad: Punishing the
Criminal, Making Victims Whole.'' May 23, 2001. PRINTED, serial
no. 107-71.
Fighting Discrimination Against the Disabled and Minorities
through Fair Housing Enforcement. Joint hearing with the
Subcommittee on Housing and Community Opportunity entitled
``Fighting Discrimination Against the Disabled and Minorities
through Fair Housing Enforcement.'' June 25, 2002. Serial no.
107-73.
Mold: A Growing Problem Joint hearing with the Subcommittee
on Housing and Community Opportunity entitled ``Mold: A Growing
Problem.'' July 18, 2002. PRINTED, serial no. 107-77.
Catastrophe Bonds: Spreading Risk. Hearing entitled
``Catastrophe Bonds: Spreading Risk.'' October 8, 2002. Serial
no. 107-86.
OVERSIGHT PLAN FOR THE 107TH CONGRESS
Clause 2(d) of rule X of the Rules of the House of
Representatives for the 107th Congress requires that each
standing committee in the first session of a congress adopt an
oversight plan for the two-year period of the Congress and
submit the plan to the Committee on Government Reform and the
Committee on House Administration.
Clause 1(d)(1) of rule XI requires each committee to submit
to the House not later than January 2 of each odd-numbered
year, a report on the activities of that committee under rules
X and XI during the Congress ending on January 3 of such year.
Clause 1(d)(3) of rule XI also requires that the report include
a summary of the oversight plans submitted pursuant to clause
2(d) of rule X; a summary of the actions taken and
recommendations made with respect to each such plan; and a
summary of any additional oversight activities undertaken by
the committee and any recommendations made or actions taken
thereon.
Part A of this section contains the Oversight Plan of the
Committee on Financial Services for the One Hundred Seventh
Congress., which the Committee considered and adopted on
February 14, 2001.
Part B of this section contains a summary of the actions
taken to implement that plan and the recommendations made with
respect to the plan. Additional oversight activities undertaken
by the Committee, and the recommendations made or actions taken
thereon, are contained in the specific sections relating to the
acitivites of the full Committee and each of the subcommittees.
Part A
OVERSIGHT PLAN FOR THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE
HUNDRED SEVENTH CONGRESS
----------
February 14, 2001.--Approved by the Committee on Financial
Services
----------
Clause 2(d)(1) of rule X of the Rules of the House requires
each standing Committee, not later than February 15 of the
first session, to adopt an oversight plan for the 107th
Congress. The oversight plan must be submitted simultaneously
to the Committee on Government Reform and the Committee on
House Administration.
The following agenda constitutes the oversight plan of the
Committee on Financial Services for the 107th Congress. It
includes areas in which the Committee and its subcommittees
expect to conduct oversight during this Congress but does not
preclude oversight or investigation of additional matters or
programs as they arise. The Committee will consult, as
appropriate, with other committees of the House that may share
jurisdiction on any of the subjects listed below.
monetary policy issues
Federal Reserve's Conduct of Monetary Policy. The Committee
will hold hearings on the Federal Reserve Board's (Fed's) semi-
annual reports on the conduct of U.S. monetary policy. The
Chairman of the Board of Governors will appear regularly before
the Committee to address issues associated with monetary policy
and the state of the economy, such as past and prospective
developments in employment, productivity, and investment.
International Financial Issues
Annual report and testimony by the Secretary of the
Treasury on International Monetary Fund (IMF) Reform and the
State of the International Financial System. The Committee will
review and hold hearings on the annual reports to Congress from
the Secretary of the Treasury on the IMF and the state of the
international financial system. Pursuant to Section 613 of
Public Law 105-277, the Committee will hear annual testimony
from the Secretary of the Treasury on: (1) progress made in
reforming the IMF; (2) the status of efforts to reform the
international financial system; and (3) compliance by borrower
countries with the terms and conditions of IMF assistance.
Reauthorization of the Export-Import Bank of the United
States. With the authority of the Export-Import Bank of the
United States set to expire at the end of FY 2001, the
Committee will review the merits of extending and revising the
charter of the Bank. In particular, the Committee will examine
the extent to which the Bank's competitiveness has been eroded
through the use of ``untied aid'' arrangements by foreign
export credit agencies, as well as the development of so-called
``market window'' lending institutions by several trade
competitors. In addition, the Committee will assess the
appropriateness of current guidelines under which the President
(acting through the Secretary of State) may block Exim
financing because of foreign policy considerations.
U.S. Contributions to the International Financial
Institutions. The Committee will review U.S. participation in,
and the effectiveness of U.S. policy toward, the IMF, the World
Bank Group, and the regional development banks.
Trade in Financial Services. The Committee will review the
International Fund for Agricultural Development (IFAD)
organization, the Administration's efforts in the World Trade
Organization (WTO) Services Negotiations, and through bilateral
agreements (such as the proposed free trade agreements with
Chile and Singapore, and the secret memorandum developed as
part of the United States - Japan bilateral insurance
agreement) to achieve market-opening liberalization in
financial services. The Committee will include in its review
current efforts to open foreign insurance markets and maintain
transparency in insurance regulation and negotiation.
International Financial Services Privacy. The Committee
will review the implementation and negotiation of international
privacy standards, and the application of those standards to
American companies. The review will be conducted in
coordination with the Committee's oversight of the financial
privacy provisions of the Gramm-Leach-Bliley Act (GLB)
discussed below.
Coordination of International Financial Services Programs.
The Committee will review the coordination among various
Executive branch agencies in promoting financial services
trade, including the priority and rank of such programs and
program officials.
World Bank AIDS Trust Fund. The Committee will monitor and
conduct necessary oversight activities regarding the
implementation of legislation passed by the 106th Congress
(Public Law 106-264) to authorize an international trust fund,
led by the U.S. and other donors, to address the AIDS crisis
through support of HIV/AIDS prevention, education and treatment
efforts in sub-Saharan Africa and other hard-hit regions.
Holocaust Claims. The Committee will actively review
efforts to ensure that restitution is made to Holocaust victims
and heirs for confiscated bank accounts or payable insurance
claims.
Basel Capital Rules. The Committee will review new rules
for bank capital under consideration by the Basel Commission.
International Debt Relief. The Committee will monitor and
conduct necessary oversight activities regarding the
implementation of legislation passed by the 106th Congress to
authorize U.S. funding for the Enhanced Heavily Indebted Poor
Country (HIPC) Initiative. The Committee will assess progress
made by the IMF and World Bank in granting multilateral debt
relief to qualified HIPC countries. The Committee will also
monitor the development and adoption of poverty reduction
strategies by the HIPC countries, and will assess compliance
with other conditions on U.S. funding specified in the
authorizing legislation.
Economic Growth
Capital Formation. The Committee recognizes that capital
formation is a crucial economic issue, particularly in the
global information economy. New businesses must be able to
attract capital to enter the marketplace. Established
businesses must be able to attract capital to expand and
compete. The Committee will closely examine all laws, policies,
and regulations within its jurisdiction to encourage capital
formation and eliminate barriers to it, including barriers with
respect to underserved communities.
Investment Company Act of 1940 and New Economy Businesses.
The Committee will review the impact of the Investment Company
Act of 1940 on ``incubator funds'' and other capital formation
vehicles that have been important to new economy businesses.
Development of Economic Opportunities. The Committee will
review economic development programs under the Committee's
jurisdiction, including programs administered by the
Appalachian Regional Commission, the Economic Development
Administration, and the newly created Delta Regional Authority.
Community Development Financial Institutions (CDFI) Fund.
In reviewing the expired authorization of the CDFI Fund,
created in 1994 to promote economic revitalization and
community development, the Committee will examine the record of
the Fund in implementing reforms pledged in 1997 to eliminate
irregularities in the grant making process identified during
the course of an investigation by the Subcommittee on General
Oversight. The Committee will monitor the CDFI Fund's
implementation of the New Markets Tax Credits program, which
was part of the Renewable Communities and New Markets
initiative enacted into law during the 106th Congress.
PRIME. The Committee will examine the implementation of a
new microenterprise lending program--the Program for Investment
in Microentrepeneurs Act, otherwise known as the PRIME Act--
that was included in GLB.
Reauthorization of the Defense Production Act. The
Committee will review the performance of the Defense Production
Act in preparation for its possible reauthorization.
Financial Services Industry/Consumer Protection
financial institutions
Implementation of Gramm-Leach-Bliley Act (GLB). The
Committee will undertake a comprehensive review of
implementation of the Gramm-Leach-Bliley Act (Public Law 106-
102), the landmark financial modernization legislation enacted
in the 106th Congress. Among the issues that may be examined
are regulatory and industry implementation of the Act's
provisions governing financial privacy, merchant banking,
financial holding company requirements, the implementation of
GLB consumer protections governing the sale of insurance,
securities, and banking products, and Community Reinvestment
Act (CRA) sunshine provisions. The review may also identify
potential changes to GLB to facilitate innovation in the
financial services sector while protecting the safety and
soundness of financial institutions.
Financial Privacy and Consumers. In addition to reviewing
implementation of the privacy provisions of GLB, the Committee
will hold hearings to identify and address existing and
emerging threats to the privacy of financial information and
assess the adequacy of governmental and industry efforts to
combat such threats. The Committee will consider whether
further reforms may be needed to protect consumer identities
and to allocate further responsibility for protecting and
fixing consumer credit after an identity theft occurs. The
Committee will consult, as appropriate, with other relevant
Committees in addressing these issues.
Electronic Signatures Legislation: Effect on Financial
Services Industry. In light of the recent enactment of the
Electronic Signatures in Global and National Commerce Act
(Public Law 106-229), the Committee will monitor the financial
services industry to ensure that it is able to provide new
services to consumers without the potentially anti-competitive
obstacles of outdated statutes, and that consumers continue to
receive appropriate disclosures as required by law.
Money Laundering. The Committee will review enforcement of
anti-money laundering laws and regulations, including the
annual National Money Laundering Strategy submitted by the
administration pursuant to 31 U.S.C. 5341 (Public Law 105-310),
and the money laundering vulnerabilities associated with so-
called ``offshore secrecy havens''.
Contract Netting Improvement. The Committee will review
banking and bankruptcy insolvency laws with respect to the
termination and netting of financial contracts. Legislation
which would have ensured the orderly disposition of financial
contracts held by bankrupt counterparties passed the House
three times in the 106th Congress, and passed the Senate as
part of a comprehensive bankruptcy reform package which was
vetoed by the previous Administration.
Deposit Insurance Reform. The Committee will conduct a
comprehensive analysis of all aspects of Federal deposit
insurance to determine whether any changes to the system are
necessary. The Committee seeks to ensure the continued safety
and soundness of the financial system and reduce the
possibility of a crisis similar to the savings and loan debacle
of the late 1980's and early 1990's. The review will encompass
issues relating to the banking, thrift, and credit union
industries. Some of the specific issues that may be included in
this analysis are: (1) merger of the Bank Insurance Fund (BIF)
and the Savings Association Insurance Fund (SAIF) to reduce the
risk of fund insolvency; (2) options regarding deposit
insurance pricing and coverage; (3) the appropriateness of the
current minimum ratio of the funds to insured deposits and the
effect of changes in the deposit insurance system on the
reserve ratio and potential taxpayer liability; anc (4)
examination of whether any cost savings to banks and thrifts
resulting from deposit insurance reform are passed on to
customers.
First Accounts/ETAs. The Consolidated Appropriations Act
for 2001, H.R. 4490, included $2 million in funding for a pilot
program of the Administration's First Accounts Initiative. This
initiative is intended to extend traditional banking services
to Americans who, for various reasons, do not now have checking
or savings accounts or any other relationship with a bank or
other financial services firm, and rely upon usually higher-
cost alternatives to cash checks or make payments. In addition
to monitoring the First Accounts Initiative, the Committee will
continue to monitor the Administration's implementation of EFT
99-which required most social security, veterans benefits, and
other Federal payments to be made by electronic funds transfer
rather than paper check-and review the implementation,
including the costs and benefits, of the new electronic
transfer accounts (ETAs).
Benefits and Risks of Industry Consolidation. The Committee
will review the benefits derived from consolidation in the
financial services industry as well as the findings of a G-10
report on potential systemic risks associated with
consolidation. Potential issues for oversight include financial
institution examinations, market discipline, taxpayer
liability, and global implications.
State of the Industry. The Committee will require the
Federal regulators to report periodically on the state of the
banking, thrift, and credit union industries in order to alert
Congress to any emerging weaknesses in the financial sector and
supervisory measures being taken to counter such weaknesses.
Recent reports on weaknesses in credit quality and decreased
earnings performance highlight the need to exercise
Congressional oversight. Conflicting issues, such as tightened
underwriting standards versus the potential for a credit
crunch, illustrate the complexity and importance of such
oversight. Additionally, recent warnings on credit quality
underscore the importance of ensuring that bank regulators and
bank management have sufficient flexibility to set appropriate
levels of loan loss reserves. Finally, the Committee will
continue to monitor proposed changes to accounting standards
relating to loan loss reserves.
The Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994. This statute updated Federal law to provide a
framework for mergers and acquisitions of banks across State
lines. The Committee will review whether the widespread use of
the Internet and the evolution of the financial services
industry since enactment of this law have made its provisions
obsolete. Additionally, the Committee will review redundant
geographic restrictions under the Home Owners' Loan Act (HOLA),
national and State caps on deposit concentrations, and issues
relating to preemption of State laws by the Office of Thrift
Supervision (OTS) and the Office of Comptroller of the Currency
(OCC).
Credit Unions. The Committee will continue its oversight of
the implementation of the Credit Union Membership Access Act of
1998 by the National Credit Union Administration (NCUA). Other
issues relating to the credit union industry will also be
reviewed, including powers of Federally-chartered credit unions
versus State-chartered institutions.
Fair Credit Reporting Act (FCRA). The Committee will
conduct a comprehensive review of the FCRA, with a focus on
such issues as legislation pertaining to the Federal Trade
Commission staff opinion letter (the so-called ``Vail letter'')
relating to employer investigations of employee misconduct, the
accuracy of consumer credit reports, and the disclosure of
credit scores.
Fair Debt Collection Practices Act (FDCPA). The Committee
will review this statute, particularly in view of the growth of
routine bundling and selling of loans by the loan originator.
Brokered Certificates of Deposit. The Committee will review
whether adequate protections and disclosures exist for
purchasers of brokered CDs.
Regulatory Burden Reduction. The Committee will continue to
analyze measures to reduce unnecessary burdens resulting from
outdated and unnecessary laws and regulations. Included in this
area are proposals to end the prohibition on banks paying
interest on business checking accounts and to permit the
Federal Reserve to pay interest on reserves of depository
institutions held at Federal Reserve Banks. The Committee will
review whether cost savings achieved through regulatory burden
reduction are passed on to customers.
``Know-Your-Customer'' Rules. In light of the controversy
over the ``Know Your Customer'' anti-money laundering
regulation proposed and later withdrawn by Federal banking
regulators, the Committee will review recent regulatory and
industry initiatives to promote enhanced scrutiny of so-called
``high-risk'' accounts or transactions.
Ergonomics Rule and the Financial Services Industry. The
Committee will review the regulatory impact, including
potential costs and benefits, of the new Federal ergonomics
rule on the financial services industry.
Consumer Protections. In addition to consumer issues
addressed elsewhere in this oversight plan, the Committee will
consider other issues concerning protections for consumers of
financial services, such as recent financial literacy
initiatives; the effect on consumers of industry consolidation,
including acquisitions of commercial lending operations by
insured depository institutions; the growth of alternatives to
traditional banking branches and services; enforcement of the
provisions of the Consumer Leasing Act; and the scheduled
sunset of the Truth in Savings Act's civil liability
provisions.
Securities
Securities Market Structure. The Committee will initiate a
comprehensive review of the regulatory structure of the
National Market System, including international considerations,
with an eye toward overhauling the Securities Exchange Act of
1934 to promote greater competition, efficiency and
transparency in the securities markets.
Improving Market Interconnection and Competition. The
Committee will review the intermarket trading system, including
its present and emerging international features, which connects
various market centers and consider how that system can be
improved to take better advantage of modern technologies and
thereby promote greater competition and efficiency in the
marketplace.
Regulatory Conflicts Arising From Increasing Convergence of
Financial Services Firms. The Committee will examine the
implications of increasing affiliations among financial
services firms in the wake of GLB. Included in this review will
be the implications for investors of certain restrictions under
section 17 of the Investment Company Act of 1940.
Accessibility of Market Data. The Committee will review the
regulations governing securities market data and other
financial market databases, and consider proposals to improve
the content and accessibility of market data, as well as to
promote competition and efficiency in the provision of that
data. This review will include consideration of legislative
proposals affecting the rights of users and publishers of
financial market databases.
Securities and Exchange Commission (SEC) Reauthorization
and Review. The Committee will review the budget request by the
SEC and consider reauthorization of the Commission. In
addition, the Committee will review the organizational
structure of the Commission, including the functioning of each
division, as well as the Office of Economic Analysis, to ensure
the Commission is efficiently and effectively carrying out its
mission to promote capital formation and protect investors.
SEC Fees. The Committee will consider proposals to reduce
fees charged to securities markets participants. These fees,
originally imposed to finance the SEC, have generated revenues
exceeding the cost of running the agency by several times,
effectively resulting in a tax on capital and a significant
burden on investors.
Social Security and Investor-Directed Retirement Accounts.
The Committee will examine proposals to reform Social Security
by providing for investor-directed retirement accounts, and
consider these proposals' impact on the capital markets and
their implications for investors. The Committee will consider
changes to the Federal securities laws to promote competition
and ensure investor protection in connection with the creation
of such investor-directed retirement accounts.
Stock Options. The Committee will examine the regulations
governing the use of, and accounting for, stock options, and
consider what improvements might be needed to enhance their
utility for public companies and their investors and employees.
In conducting this review, the Committee will consult, as
appropriate, with other Committees.
Investor Access to Initial Public Offerings. The Committee
will consider the allocation of IPOs and the efficiency and
fairness of their allocation, including public access to IPOs
as well as how IPO allocation affects the efficient promotion
of capital formation.
Technology in the Securities Markets. The Committee will
review the extent to which SEC regulations promote the
efficient use of the Internet to provide investors access to
information about investments, including prospectus delivery.
The Committee will also review practices by, and regulations
governing, on-line brokerage firms as well as questions raised
by the use of the Internet and other new technologies in
connection with securities transactions.
New Investment Products. The Committee will monitor
developments in new mechanisms allowing investors to access the
securities markets online to ensure robust competition and
continued investor protection.
Decimal Trading. The Committee will closely monitor and
review the implementation of decimal pricing in the securities
markets to ensure speedy and efficient implementation of
decimal pricing throughout the securities marketplace,
consistent with the goal of the Common Cents Stock Pricing Act
of 1997.
Mutual Fund Disclosure. The Committee will monitor the
implementation of new rules regarding disclosure of after-tax
returns to mutual fund investors, as well as other disclosure
requirements, to ensure these requirements maximize useful
information for investors, consistent with efficiency and
competition in the mutual fund marketplace.
Bond Market. The Committee will monitor the implementation
of the Trade Reporting and Comparison Entry Service (TRACE) and
consider methods to improve transparency and competition in the
bond market.
Self-Regulatory Organizations. The Committee will examine
the implications for competition in the marketplace of the
existing SRO structures, in light of imminent public offerings
by several SROs, as well as the implications to competition in
the marketplace of SRO regulations, and the role of the SEC in
overseeing those regulations.
SEC Exemptive Authority. The National Securities Markets
Improvement Act of 1996 provided new exemptive authority to the
SEC. The Committee will monitor the Commission's use of this
authority to promote more efficient regulation and greater
competition in the marketplace, and to eliminate burdensome
regulation.
Commodity Futures Modernization Act Implementation. The
Committee will review the implementation of the Commodity
Futures Modernization Act of 2000 to ensure the continued
success of the U.S. derivatives markets and prevent unnecessary
regulatory burdens on those markets. The Committee will monitor
the actions of the SEC and the Commodities Futures Trading
Commission (CFTC) to ensure the agencies' actions are
consistent with the deregulatory spirit of the Act. In
addition, the Committee will review disclosure and other
requirements for the accounting of derivatives by financial
institutions to ensure antifraud protections in place are
consistent with investor protection, capital formation,
competition, and efficiency in the securities markets.
Accounting Standards: Protection Against Fraud and
International Harmonization. The Committee will review
accounting standards and interpretations set forth by the
Financial Accounting Standards Board as they pertain to anti-
fraud provisions under the Federal securities laws, including
the accounting standards used for mergers and acquisitions. The
Committee will also consider initiatives by the SEC and others
to harmonize international accounting standards.
Organized Crime and Securities Markets. The Committee will
examine issues relating to the integrity of the securities
exchanges, including recent allegations of organized crime
involvement in manipulating markets and defrauding individual
investors.
Investment Company Act of 1940 and the Employee Retirement
Income Security Act (ERISA). The Committee will examine
regulatory inconsistencies between the Investment Company Act
of 1940 and ERISA to determine what legislative or other
changes are necessary to improve the effectiveness of each of
those Acts for mutual fund investors. In conducting this
review, the Committee will consult, as appropriate, with other
Committees.
Securities Investor Protection Corporation. The Committee
will review the operations of the Securities Investor
Protection Corporation and proposals to improve its
effectiveness.
Timely stock trade execution. The Committee will review
industry practices with respect to t+3 stock execution to
ensure stock executions are not delayed and to enhance the
ability of market participants to move to t+1 execution.
Insurance
Workers Compensation Insurance. The Committee will examine
the current state of workers compensation insurance to
determine the reasonableness of the types of claims and charges
being made, and to consider whether further efficiencies or
anti-fraud mechanisms can be developed.
Insurance Marketing. The Committee will examine a number of
consumer protection issues concerning the marketing of
insurance products, potentially including the churning of life
insurance, sales and marketing representations, coercion and
pressure tactics, product bundling, excessive premium charges
for credit insurance and mortgage insurance, and Internet
marketing of insurance products.
Insurance Solvency Regulation. The Committee will examine
the current accreditation program of the National Association
of Insurance Commissioners (NAIC) that judges the adequacy of
State insurance regulatory systems.
Insurance Fraud. The Committee will examine the efforts by
the States, the NAIC, and other entities, to locate and fight
insurance fraud, particularly in implementing reforms developed
after the Martin Frankel scandal.
NARAB Implementation. The Committee will determine whether
a sufficient number of States are implementing uniform or
reciprocal insurance agency licensing rules as required under
the National Association of Registered Agents and Brokers Title
of GLB, and what further measures are necessary to promote
uniformity in insurance licensing.
Preemption of State Insurance Law. The Committee will
review any efforts by Federal agencies to preempt State laws
governing insurance activities, and will also examine any
controversial State insurance laws to ensure that they do not
significantly interfere with Federally authorized powers of
financial institutions.
Insurance Product Approval. The Committee will review the
50 State approval process for allowing new insurance products
and forms to be admitted into the insurance markets.
National Insurance Uniformity. The Committee will review
various alternatives for modernizing the regulation of
insurance, including reform efforts by the NAIC, development of
interstate and regional regulatory compacts, facilitation of
nationwide State-run insurance regulation programs, proposals
for an optional Federal insurance charter, and other reforms
for improving the efficiency and effectiveness of insurance
regulation.
Insurance Consumer Protections. The Committee will examine
the regulatory systems established by the States to protect
consumers' insurance interests, such as efforts to prevent
discrimination against victims of domestic violence, to ensure
adequacy of reimbursement of overpayments that are the result
of racial or gender discrimination, and to ensure that consumer
policy rights and recovery procedures are fully protected. The
Committee will also examine how consumer inquiries are recorded
as part of consumer claim records.
Seniors' Retirement Needs. The Committee will review the
insurance needs particular to those contemplating or currently
in retirement, including the use of annuities and other
insurance pension programs, as well as nursing care insurance
and other old age insurance programs.
Class Action Insurance Litigation. The Committee will
review issues surrounding class action suits filed in the name
of insurance policy holders, examining the reasonableness of
fees and compensation awarded and determining to what degree
the settlements serve the parties' interests. The Committee
will also examine the effect of large awards on costs for
consumers as well as the impact on State regulation of
insurance. As appropriate, the Committee will consult with
other Committees in reviewing these issues.
Federal Agencies/Agency Program Issues
Government Sponsored Enterprises (GSEs). The Committee will
continue its comprehensive review of the three housing GSEs--
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Areas
to be covered include: (1) review of implementation by Fannie
Mae and Freddie Mac of their October 2000 voluntary agreement
to enhance market discipline and transparency; (2) the
governmental structure and authorities for conducting safety
and soundness and mission regulation; (3) new leverage and
risk-based capital rules; and (4) compliance with HUD's
recently announced increases in affordable housing goals.
Management/Reform of the Federal Reserve System. The
Committee will conduct oversight of the operations of the
Federal Reserve System, such as the System's role in providing
financial services as well as its management structure and
consolidation of operations, use of technology, control and
oversight mechanisms, budget processes, pay and benefit levels,
and systemwide strategic planning.
Corrections Recommended by the Federal Deposit Insurance
Corporation (FDIC), the Office of the Comptroller of the
Currency (OCC), and Office of Thrift Supervision (OTS). The
Committee will consider a number of technical and other
corrective changes recommended by the FDIC, OCC, and OTS to the
Federal Deposit Insurance Act (FDIA), the International Banking
Act of 1978, the National Bank Act, the Home Owners' Loan Act
(HOLA), and other banking laws relating to FDIC, OCC, and OTS
authorities in the area of contracting, foreign banks,
resolution of insured depository institutions, and other
issues.
Management of the Nation's Money: Activities of the Bureau
of the Mint and the Bureau of Engraving and Printing (BEP). The
Committee will oversee the activities of these Treasury bureaus
as they relate to the printing and production of U.S. currency
and the financing and minting of circulating and commemorative
coins. The Committee will review the efficiency and
productivity of Mint and BEP manufacturing operations, as well
as the Numismatic Public Enterprise Fund. Technical changes to
the authorizing statute for the latter will also be considered.
Anti-Fraud Agency Coordination Efforts. The Committee will
examine the efforts of the financial services regulators to
coordinate their anti-fraud efforts, including disciplinary
records and other consumer protection records.
Central Liquidity Facility. The Central Liquidity Facility
(CLF), a government corporation managed by the NCUA, is a
valuable source of loans for meeting the seasonal and emergency
liquidity needs of credit unions. The CLF borrows from the
Treasury Department's Federal Financing Bank, though Congress
has imposed borrowing and lending caps. Last year, the General
Accounting Office (GAO) audited CLF operations and raised some
questions. Subsequently, the conference report accompanying the
FY 2001 VA-HUD appropriations bill directed the NCUA to develop
policies and procedures to clarify credit union access to the
CLF. The Committee may conduct an oversight hearing or other
activities relating to the CLF in preparation for advising the
Appropriations Committee on CLF-related decisions.
Farm Credit Administration's National Charter Initiative.
In consultation with other Committees, the Financial Services
Committee will continue to monitor the GSE-related issues
involved in the Farm Credit Administration's national charter
initiative.
Reports of Inspectors General or Other Investigative
Agencies. The Committee will review and, where appropriate,
hold hearings on the findings of investigations and audits
conducted by the GAO and the Inspectors General of the agencies
that fall within the Committee's jurisdiction.
Government Performance and Results Act. The Committee will
continue to review the strategic plans, annual performance
plans, and annual performance reports of departments and
agencies under its jurisdiction.
Housing Issues
Mortgage Finance Reform/Real Estate Settlement Procedures
Act/Truth-in-Lending Act/Predatory Lending. The Committee may
conduct hearings on comprehensive mortgage finance reform to
address the evolution of mortgage finance for the 21st century
and to assess what regulatory and statutory changes are
necessary to curb predatory lending practices. As the financial
services industry and mortgage markets adapt to technological
changes, the Committee will review the Real Estate Settlement
Procedures Act and the Truth-in-Lending Act. In the area of
predatory lending, the Committee will review regulatory
initiatives and the application of laws, such as the Home
Ownership and Equity Protection Act, in order to distinguish
between subprime lending activity, which provides needed
capital for many historically underserved consumers, and the
abusive practices associated with predatory lending.
HUD Management Reform and Staffing. The Committee will
conduct a comprehensive review of the management reform
initiatives implemented in the past five years. Between 1994
and 2001, all programs of the Department of Housing and Urban
Development (HUD) were designated by GAO as being at ``high
risk'' for waste, fraud, and abuse. However, on January 17,
2001, GAO reported a reduction in the number of HUD programs
deemed to be high-risk due to HUD's improvement in Community
Development Block Grant (CDBG) management controls. Yet GAO
cited continuing, significant weaknesses in two of the
department's major programs--the single-family mortgage
insurance and the rental housing assistance programs. The
report also noted management challenges related to information
and financial management data systems and staffing. The
significant weaknesses cover approximately 70 percent of HUD's
programs and involve potential liabilities up to $454 billion
in the single-family portfolio and excess subsidy rental
payments up to $3.1 billion over the last four years.
HUD Related Reauthorizations. The Committee will review,
for appropriate action, expired--and expiring--authorizations
relating to HUD.
HUD Federal Housing Administration (FHA) Mutual Mortgage
Insurance Fund Capital Ratio Standards. The Committee will
review the Mutual Mortgage Insurance Fund capital ratio
standards to assess whether current ratio requirements are
appropriate. In 1990, Congress enacted legislation requiring a
capital ratio of 2 percent by 2000. The fund reached the 2
percent goal by 1995, aided by an economic expansion, and
currently has a reserve fund in excess of $16 billion. In the
106th Congress, the Subcommittee on Housing and Community
Opportunity asked GAO to review the adequacy of the capital
ratio standards. GAO is scheduled to report to the Committee by
late February and the Committee will evaluate the report at
that time.
Private Mortgage Insurance (PMI). The Committee will review
the effectiveness of laws requiring cancellation of private
mortgage insurance once certain equity thresholds are achieved.
The Committee will also review the ability of the Federal
Housing Administration to grant similar consumer rights and
will consider whether further consumer disclosures are
appropriate.
Real Estate Activities. The Committee will review the
benefits and concerns relating to the entrance of financial
services firms and Internet firms into the real estate agency
markets.
Minorities and Homeownership. The Committee will conduct
hearings to review homeownership rates, particularly for
underserved markets, e.g., minorities, inner-city
neighborhoods, and women. The overall homeownership rate is
approximately 68 percent; however, the average homeownership
rate for African Americans is in the 40th percentile and
Hispanics register as low as the 20th. The Committee will focus
on homeownership disparity in order to fine-tune government
policies, practices, and incentives that may preclude
successful lending and ownership.
Flood Insurance. The Committee will review the National
Flood Insurance Program (NFIP) and the implementation of
reforms initiated by the Riegle Community Development and
Regulatory Improvement Act of 1994 (Public Law 103-325). The
Committee will also review the recently submitted Federal
Emergency Management Agency reports addressing subsidy
reductions and repetitive losses.
Catastrophic Insurance Protection. The Committee will
review the current and projected future ability of the
insurance industry to survive a catastrophic natural disaster,
and will examine the solvency of various State disaster pools
and other disaster solvency programs.
Rural Housing Prepayment. The Committee will review the
rural multifamily rental program and specific housing laws
prohibiting prepayment of the debt of government-financed
mortgage loans.
CDBG/HOME Oversight. The Committee will review the CDBG
program and the Home Investments Partnerships Act (HOME) to
assess the impact of funds in low- and very-low income
neighborhoods. Given GAO's assessment that these programs are
not at high risk for waste, fraud, and abuse, the Committee
will focus on management and operation of the programs,
including the timely expenditure of CDBG funds. As of February
2000, according to GAO, 239 of the over 950 entitlement
grantees had unexpended balances that were excessive and
represented approximately $1.6 billion. These two programs will
be reviewed in connection with consideration of their
reauthorization.
Oversight of the Puerto Rico Public Housing Authority. The
Committee will review measures taken by HUD to correct
widespread abuse in contracting and program management
uncovered at the Puerto Rico Public Housing Authority, the
second-largest public housing authority in the country. In July
2000, HUD's Inspector General wrote to Congress and expressed
serious concern with the adequacy of the measures HUD had taken
to address the waste and loss of Federal funds by the Puerto
Rico Public Housing Authority.
Oversight of HUD's Real Estate Assessment Center (REAC) and
Public Housing Assessment System (PHAS). The Committee will
review the functions of HUD's REAC and PHAS assessment
programs. REAC and PHAS have been severely criticized for being
unduly complex and unworkable from a management perspective. In
2000, the Department maintained that initial barriers to the
implementation of REAC and PHAS were adequately addressed.
However, the Committee continues to be concerned about
complaints received from public housing authorities.
Currency and Payment System Issues
Electronic Commerce and Payment Systems. The Committee will
continue to assess the domestic and international implications
of new innovations in electronic money and electronic payment
systems. Among the issues the Committee may examine are
soundness, security, privacy, access to new electronic payment
methods, eligibility criteria for issuing new payment methods,
competing government regulation, and threats posed to critical
infrastructures such as the payments system.
Counterfeiting. The Committee will continue its review of
efforts to detect and combat the counterfeiting of U.S.
currency in the United States and abroad.
Dollar Coin. The Committee will examine issues relating to
the introduction in 2000 of the new one-dollar coin, including
U.S. Mint production-allocation decisions, a true unit cost of
production, management of the program throughout its life to
date, the type and nature of fees paid for the design of the
coin, and the Mint's expenditures on outside advertising and
public relations firms for this and other initiatives.
PART B
IMPLEMENTATION OF THE COMMITTEE ON FINANCIAL SERVICES OVERSIGHT PLAN
FOR THE 107TH CONGRESS
----------
Monetary Policy Issues
Federal Reserve's Conduct of Monetary Policy. The Committee
held statutorily required hearings on the Chairman of the
Federal Reserve Board of Governors' semi-annual reports on
monetary policy on February 28, 2001, July 18, 2001, February
27, 2002, and July 17, 2002. The Chairman of the Board of
Governors testified at each hearing.
International Financial Issues
Annual report and testimony by the Secretary of the
Treasury on International Monetary Fund (IMF) Reform and the
State of the International Financial System. The Committee held
hearings on the annual report on May 22, 2001 and February 28,
2002. The Secretary of the Treasury testified at each hearing.
Reauthorization of the Export-Import Bank of the United
States. The Subcommittee on International Monetary Policy and
Trade held hearings on the reauthorization of the Export-Import
Bank on May 2 and 8, 2001. On October 31, 2001, the Committee
passed H.R. 2871, the Export-Import Bank Reauthorization Act of
2001. The House passed the bill, as amended, on May 1, 2002.
After passage of S 1372 by the Senate, the House passed the
conference report on June 5, 2002. The Senate passed the
conference report on June 6, 2002, and the President signed the
Act (Public Law 107-189) on June 14, 2002.
U.S. Contributions to the International Financial
Institutions. The Subcommittee on International Monetary Policy
and Trade held hearings on the African Development Bank and
African Development Fund on April 25, 2001; on World Bank and
IMF activities in Africa on May 15, 2001; and on fiscal year
2002 authorization requests for international programs on June
12, 2001.
On October 31, 2001, the Committee passed H.R. 2604, a bill
replenishing the resources of the Asian Development Fund and
the International Fund for Agricultural Development, and
setting forth additional policies of the United States towards
the African Development Bank, the African Development Fund, the
Asian Development Bank, the Inter-American Development Bank,
and the European Bank for Reconstruction and Development. The
House passed H.R. 2604 on May 2, 2002. The Subcommittee on
International Monetary Policy and Trade held a hearing on the
causes of the meltdown in the Argentinean economy, including
the IMF's role, on February 26, 2002.
The Subcommittee on International Monetary Policy and Trade
held hearings on proposed changes to the authorizations for the
World Bank-International Development Association and the North
American Development Bank on May 2, 2002; July 19, 2002; and
July 25, 2002. The Committee referred H.R. 5400, a bill to
authorize the establishment of a Border Environment Cooperation
Commission and a North American Development Bank, and for other
purposes, to the House floor, and it passed the House by voice
vote on October 10, 2002. No further action was taken on these
measures during the 107th Congress.
Trade in Financial Services. The Subcommittee on
International Monetary Policy and Trade held a hearing on
current international insurance, banking, and securities trade
issues and recent developments on June 26, 2001. The Committee
held a hearing on the European Union's Financial Services
Action Plan and its implications for the American financial
services industry on May 22, 2002.
International Financial Services Privacy. On May 11, 2002,
the Chairman of the full Committee and the chairs of all of the
subcommittees wrote a letter to the Secretary of the Treasury,
requesting that he consult with the Committee during
negotiations with the European Union (EU) on its privacy
policy. This issue was then discussed during the Committee's
hearing on May 22, 2002, on the European Union's Financial
Services Action Plan.
Coordination of International Financial Services Programs.
Although the Committee took no direct oversight action on this
topic, the Committee monitored the developments in this area
throughout the 107th Congress.
World Bank AIDS Trust Fund. The Subcommittee on
International Monetary Policy and Trade held a hearing on World
Bank and IMF activities in Africa, including those focused on
the HIV/AIDS pandemic, on May 15, 2001. Provisions addressing
these matters were included in H.R. 2604, referred to above.
Holocaust Claims. The Committee monitored the efforts by
the International Holocaust Commission to ensure that
restitution is made to Holocaust victims and heirs of
confiscated accounts.
Basel Capital Rules. Although the Committee took no direct
oversight action on this topic, the Committee monitored the
developments in this area throughout the 107th Congress.
International Debt Relief. This issue was considered during
hearings on the World Bank and Africa cited above.
Economic Growth
Capital Formation. The Subcommittee on Domestic Monetary
Policy, Technology, and Economic Growth held a hearing on
measures needed to stimulate capital formation on March 29,
2001. The Subcommittee on Oversight and Investigations held a
hearing on the SEC's role in capital formation on June 26,
2001.
Investment Company Act of 1940 and New Economy Businesses.
The Committee took no direct oversight action on these matters
in the 107th Congress, but continued to monitor the activities
of these companies.
Development of Economic Opportunities. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
Community Development Financial Institutions (CDFI) Fund.
Although the Committee took no direct oversight action on this
topic, the Committee monitored the developments in this area
throughout the 107th Congress.
PRIME. Although the Committee took no direct oversight
action on this topic, the Committee monitored the developments
in this area throughout the 107th Congress.
Reauthorization of the Defense Production Act. The
Subcommittee on Domestic Monetary Policy, Technonogy, and
Economic Growth held a hearing on the reauthorization on June
13, 2001. The Committee passed H.R. 2510, the Defense
Production Act Amendments of 2001, on July 25, 2001. The House
passed the bill on September 5, 2001. The President signed the
Act (Public Law 107-47) on October 5, 2001.
Financial Services Industry/Consumer Protection
financial institutions
Implementation of Gramm-Leach-Bliley Act (GLB). On April 4,
2001, the Subcommittee on Financial Institutions and Consumer
Credit and the Subcommittee on Capital Markets, Insurance, and
Government-Sponsored Enterprises held a joint hearing on the
use of the authority granted by GLB for financial holding
companies (FHCs) and bank holding companies (BHCs) to conduct
merchant banking investment activities.
On July 19, 2001, Chairman Oxley and the six subcommittee
chairman sent a letter to the acting Chairwoman of the
Securities and Exchange Commission, expressing concerns about a
draft SEC ruling applying new SEC regulatory requirements to
bank brokerage activities governed by GLB. On August 2, 2001,
the Financial Institutions and Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held a joint
hearing to address the SEC ruling.
Financial Privacy and Consumers. The Subcommittee on
Oversight and Investigations held a hearing jointly with the
Social Security Subcommittee of the Committee on Ways and Means
on identity theft of the deceased on November 8, 2001. The
Chairwoman of the Subcommittee on Oversight and Investigations
convened a task force to address the issue. On November 15, she
sent a letter to the Treasury requesting that they support a
death verification system that was undergoing testing by the
Social Security Administration.
Electronic Signatures Legislation: Effect on Financial
Services Industry. The Subcommittee on Domestic Monetary
Policy, Technology, and Economic Growth held a hearing on June
28, 2001 on this issue.
Money Laundering. The Committee held a hearing on the
financial infrastructure of global terrorism on October 3,
2001. The Committee passed H.R. 3004, the Financial Anti-
Terrorism Act of 2001, on October 11, 2001. It was incorporated
into the USA PATRIOT Act, H.R. 3162, which was signed into law
on October 26, 2001. The Subcommittee on Oversight and
Investigations held a hearing on patterns of terrorist
financing on February 12, 2002. The Committee held a hearing on
the implementation of the USA PATRIOT Act on September 19,
2002.
Contract Netting Improvement. Although the Committee took
no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress. Further, provisions of H.R. 333, the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2001, addressed this
matter and the Committee participated in their development.
Deposit Insurance Reform. The Subcommittee on Financial
Institutions and Consumer Credit held hearings on aspects of
deposit insurance reform on July 26 and October 17, 2001. On
March 7, 2002, the Subcommittee on Financial Institutions and
Consumer Credit approved H.R. 3717, Federal Deposit Insurance
Reform Act of 2002 for full Committee consideration. The full
Committee passed H.R. 3717 on April 17, 2002, and the House
passed it on May 22, 2002. No further action was taken on this
legislation in the 107th Congress.
First Accounts/ETAs. The Subcommittee on Oversight and
Investigations held a hearing on EFT requirements and the use
of ETAs on June 20, 2001. The Chairman and Ranking Member asked
GAO to conduct a study on the issue, which was completed and
released in October 2002.
Benefits and Risks of Industry Consolidation. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
State of the Industry. In the wake of the terrorist attacks
of September 11, 2001, the Committee reviewed the state of the
financial services industry and the ability to recover. On
September 13, senior regulatory officials briefed Committee
members about the restoration of full operations. The Committee
met on September 26 to receive an update on recovery operations
from securities and insurance regulators and industry leaders.
On October 11, 2001, the Committee asked GAO to monitor the
recovery process and report to us on its implications for the
U.S. financial markets and their participants.
The Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994. Although the Committee took no direct oversight
action on this topic, the Committee monitored the developments
in this area throughout the 107th Congress.
Credit Unions. A number of regulatory provisions affecting
credit unions were included in H.R. 3951, the Financial
Services Regulatory Relief Act of 2001 and the Subcommittee on
Financial Institutions and Consumer Credit conducted oversight
of these financial institutions during the course of the
development of that legislation.
Fair Credit Reporting Act (FCRA). Although the Committee
took no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Fair Debt Collection Practices Act (FDCPA). Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
Brokered Certificates of Deposit. Although the Committee
took no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Regulatory Burden Reduction. The Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 3951, the Financial Services Regulatory Relief Act of
2002, on March 14, 2002. The Subcommittee on Financial
Institutions and Consumer Credit passed the bill on May 8,
2002. No further action was taken on this measure during the
107th Congress.
``Know-Your-Customer'' Rules. This issue was considered by
the Committee during the course of deliberations on H.R. 3004,
the Financial Anti-Terrorism Act of 2001. New provisions
requiring financial institutions to gather information about
customers were incorporated into H.R. 3162, the USA PATRIOT
Act.
Ergonomics Rule and the Financial Services Industry. This
issue was considered during the course of deliberations on H.
Res. 79 and S.J.Res. 6, a joint resolution providing for
congressional disapproval of the rule submitted by the
Department of Labor relating to ergonomics. The resolution was
enacted as public law 107-5 on March 20, 2001.
Consumer Protections. The Subcommittee on Financial
Institutions and Consumer Credit held a hearing on November 1,
2001, to address the credit card industry's practice of issuing
credit to worthy customers without saturating the market with
uncollectible debt. On December 11, 2001, Chairman Oxley, with
representatives from the credit card industry and the U.S.
Postal Service, announced an agreement intended to protect
consumers in the event of a mail disruption caused by
biological, chemical, or radiological attack.
securities
Securities Market Structure. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Improving Market Interconnection and Competition. Although
the Committee took no direct oversight action on this topic,
the Committee monitored the developments in this area
throughout the 107th Congress.
Regulatory Conflicts Arising from Increasing Convergence of
Financial Services Firms. On April 4, 2001, the Subcommittee on
Financial Institutions and Consumer Credit and the Subcommittee
on Capital Markets, Insurance, and Government Sponsored
Enterprises held a joint hearing on the use of the authority
granted by GLB to the Federal Reserve Board, the Office of the
Comptroller of the Currency, Department of the Treasury, and
Federal Deposit Insurance Corporation to enable financial
holding companies (FHCs) and bank holding companies (BHCs) to
conduct merchant banking investment activities.
Accessibility of Market Data. The Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held
hearings on the collection, ownership, and distribution of
market data on March 14 and July 26, 2001.
Securities and Exchange Commission Reauthorization and
Review. The Committee passed H.R. 3764, a bill to authorize
appropriations for the SEC, on April 11, 2002. The House passed
H.R. 3764 on June 26, 2002. The provisions of H.R. 3764 were
included in the conference report to accompany H.R. 3763.
Additionally, in the wake of the September 11 attacks, the
Committee passed H.R. 3060, the Emergency Securities Response
Act, to allow the SEC to extend emergency orders for up to 30
business days and in some cases for up to 90 calendar days,
from the current 10 days. The bill would also widen the SEC's
emergency relief scope to include all Federal securities laws.
The House passed H.R. 3060 on November 11, 2001. The Senate did
not consider the bill before the end of the session.
SEC Fees. The Subcommittee on Capital Markets, Insurance,
and Government Sponsored Enterprises held a hearing entitled
``Saving Investors Money: Reducing Excessive SEC Fees'' on
March 7, 2001. The Subcommittee passed H.R. 1088, the Investor
and Capital Markets Fee Relief Act, on March 21, 2001. The
Committee passed H.R. 1088 on March 28, 2001. The House passed
the bill on June 14, 2001, and the Senate passed the bill on
December 20, 2001. The President signed the Act, on January 16,
2002, becoming public law number 107-123,.
Social Security and Investor-Directed Retirement Accounts.
Although the Committee took no direct oversight action on this
topic, the Committee monitored the developments in this area
throughout the 107th Congress.
Stock Options. Although the Committee took no direct
oversight action on this topic, the Committee monitored the
developments in this area throughout the 107th Congress.
Investor Access to Initial Public Offerings. The Committee
considered these issues during its investigation of links
between investment banking business and issuance of shares in
initial public offerings described above.
Technology in the Securities Markets. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
New Investment Products. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Decimal Trading. Although the Committee took no direct
oversight action on this topic, the Committee monitored the
developments in this area throughout the 107th Congress.
Mutual Fund Disclosure. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Bond Market. Although the Committee took no direct
oversight action on this topic, the Committee monitored the
developments in this area throughout the 107th Congress.
Self-Regulatory Organizations. Although the Committee took
no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
SEC Exemptive Authority. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Commodity Futures Modernization Act Implementation. On July
27, 2001, Chairman Oxley wrote to the acting SEC chairwoman,
the chairman of the Commodity Futures Trading Commission, and
the commissioner of the Internal Revenue Service (IRS), to
request a progress report on their agencies' implantation of
the Commodities Futures Modernization Act (CFMA). On October
15, 2001, Chairman Oxley and Agriculture Committee Chairman
Combest sent a letter to the chairmen of the SEC and CFTC,
supporting the extension of the comment period on rules for the
trading of security futures products after December 21, 2001,
as a result of the terrorist attacks on September 11.
Accounting Standards: Protection Against Fraud and
International Harmonization. The Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing on June 7, 2001 on the promotion of international
capital flows through harmonization of international accounting
standards. The Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises held hearings on May 1 and May
14, 2002, on the credibility of GAAP in light of corporate
accounting scandals and the collapse of major companies. This
issue was also raised during the Committee's hearing on May 22,
2002, on the EU's Financial Services Financial Services Action
Plan, and in the consideration of the Sarbanes-Oxley Act of
2002.
Organized Crime and Securities Markets. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
Investment Company Act of 1940 and the Employee Retirement
Income Security Act (ERISA). Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Securities Investor Protection Corporation. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
Timely stock trade execution. Although the Committee took
no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
investigation of links between investment banking business and issuance
of shares in initial public offerings
Following the July 8, 2002 WorldCom hearing, the Committee
began the first Congressional investigation of Wall Street
practices for the issuance of shares in initial public
offerings to investment banking clients. Based on information
developed in connection with that hearing, the Committee
requested and subpoenaed thousands of pages of documents from
Citigroup, Goldman Sachs, and Credit Suisse First Boston. The
documents revealed that preferred investors involved in over 30
companies (including Enron, Global Crossing, and WorldCom)
reaped profits from initial public offering shares and ``spun''
investment banking business back to the firms. For instance,
subpoenaed documents revealed that former WorldCom CEO Bernie
Ebbers made $11 million in personal gains from initial public
offering shares. Additionally, evidence indicates that ratings
of stock analysts, such as Jack Grubman, were influenced by the
prospect for investment banking business, despite previous
denials by the analysts and firm management. Analysts'
compensation appears to have been tied, in part, to the volume
of such business. The SEC initiated investigations to determine
whether securities laws were violated, and also initiated
regulatory actions to prevent future direct linkages.
insurance
Workers Compensation Insurance. Although the Committee took
no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Insurance Marketing. The Subcommittee on Oversight and
Investigations held a hearing on February 26, 2002 entitled
``Retirement Protections: Fighting Fraud in the Sale of Death''
which addressed the marketing of viatical policies. For more
information on this hearing, see the appropriate portion of the
Subcommittee on Oversight and Investigations section.
Insurance Solvency Regulation. The Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held
hearings on this issue on June 4, 11, and 18, 2002.
Insurance Fraud. The Subcommittee on Oversight and
Investigations held a hearing on February 26, 2002, on fraud in
the sale of viatical insurance products. For more information
on this hearing, see the appropriate portion of the
Subcommittee on Oversight and Investigations section.
NARAB Implementation. The Subcommittee on Capital Markets,
Insurance, and Government Sponsored Enterprises held a hearing
on the NARAB provisions of GLB on May 16, 2001.
Preemption of State Insurance Law. Although the Committee
took no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Insurance Product Approval. The Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held a
hearing on this issue on June 21, 2001.
National Insurance Uniformity. The Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises held
hearings on this issue on June 4, 11, and 18, 2002.
Insurance Consumer Protections. Although the Committee took
no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Seniors' Retirement Needs. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
Class Action Insurance Litigation. Although the Committee
took no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Federal Agencies/Agency Program Issues
Government-Sponsored Enterprises (GSEs). The Subcommittee
on Capital Markets, Insurance, and Government Sponsored
Enterprises held hearings on various aspects of this issue on
May 23 and July 11, 2001, and on July 16 and July 23, 2002. For
more information regarding the Committee's activities, please
see the Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises section.
Management/Reform of the Federal Reserve System. Although
the Committee took no direct oversight action on this topic,
the Committee monitored the developments in this area
throughout the 107th Congress.
Corrections Recommended by the Federal Deposit Insurance
Corporation (FDIC), the Office of the Comptroller of the
Currency (OCC), and Office of Thrift Supervision (OTS). During
the Committee's consideration of H.R. 3951, the Financial
Services Regulatory Relief Act of 2001, the Committee
considered a variety of suggestions from the regulators of
banks, thrifts, and credit unions.
Management of the Nation's Money: Activities of the Bureau
of the Mint and the Bureau of Engraving and Printing (BEP).
Although the Committee took no direct oversight action on this
topic, the Committee closely monitored the activities of this
agency, and undertook numerous informal efforts to improve the
management and operations of the Mint and Bureau of Engraving
and Printing. The Committee did consider H.R. 2509, the Bureau
of Engraving and Printing Security Printing Amendments Act. For
more information on these activities, please see the
appropriate entries in the Subcommittee on Domestic Monetary
Policy, Technology, and Economic Growth section.
Anti-Fraud Agency Coordination Efforts. The Subcommittee on
Oversight and Investigations and the Subcommittee on Financial
Institutions and Consumer Credit held a joint hearing on March
6, 2001 on potential actions by financial regulators and
Congress to protect consumers from financial fraud. The
Subcommittee on Financial Institutions and Consumer Credit
passed H.R. 1408, the Financial Services Antifraud Network Act
of 2001, on June 13, 2001. The Committee passed the bill on
June 27, 2001. The House passed the bill on November 6, 2001.
The Senate did not consider the bill before the end of the
session.
Central Liquidity Facility. Although the Committee took no
direct oversight action on this topic, the Committee closely
monitored the developments in this area throughout the 107th
Congress and in particular after the events of September 11,
2001.
Farm Credit Administration's National Charter Initiative.
Although the Committee took no direct oversight action on this
topic, the Committee monitored the developments in this area
throughout the 107th Congress.
Reports of Inspectors General or Other Investigative
Agencies. The Subcommittee on Oversight and Investigations
cited reports from the HUD Inspector General in two hearings,
discussed in more detail below.
Housing Issues
Mortgage Finance Reform/Real Estate Settlement Procedures
Act /Truth-in-Lending Act/Predatory Lending. The Committee held
a hearing on HUD's proposed RESPA rule on October 3, 2002.
HUD Management Reform and Staffing. The Subcommittee on
Housing and Community Development held a hearing on HUD's
proposed FY 2001 budget on April 26, 2001. The Subcommittee on
Oversight and Investigations held a hearing on September 10,
2001 on fraud in the single-family mortgage program. On
December 4, 2001, members of the Committee wrote to the
chairman and ranking member of the Appropriations Committee in
support of additional appropriations of $20 million to cure
deficiencies in HUD's Office of Multifamily Housing Assistance
and Restructuring Technical Assistance. The Subcommittee on
Housing and Community Opportunity held a hearing on HUD's
proposed FY 2002 budget on February 13, 2002.
HUD-Related Reauthorizations. The Committee passed H.R.
2589, the Office of Multifamily Housing Assistance
Restructuring Extension Act of 2001, on July 25, 2001. The
House passed the bill on September 24, 2001. The Senate did not
consider the bill before the end of the session. Other HUD-
related authorizations were incorporated into H.R. 3995, the
Housing Affordability for America Act of 2002, which the
Committee passed on July 10, 2002. No further action was taken
on this measure in the 107th Congress.
HUD Federal Housing Administration (FHA) Mutual Mortgage
Insurance Fund Capital Ratio Standards. The Subcommittee on
Housing and Community Opportunity held a hearing on this issue
on March 20, 2001.
Private Mortgage Insurance (PMI). Although the Committee
took no direct oversight action on this topic, the Committee
monitored the developments in this area throughout the 107th
Congress.
Real Estate Activities. The Subcommittee on Financial
Institutions and Consumer Credit held a hearing on May 2, 2001,
on the Federal Reserve Board and Treasury Department proposal
to permit banks to offer certain real estate services. The
Subcommittee held a hearing on July 24, 2002, on the Community
Choice in Real Estate Act, H.R. 3424, which would have
prohibited financial holding companies and national banks from
engaging, directly or indirectly, in real estate brokerage or
management services. The Committee took no action with respect
to the bill before the end of the session.
Minorities and Homeownership. This issue was considered
during hearings on housing affordability on May 3, May 22, June
21, and July 17, 2001, and during hearings on H.R. 3995, the
Housing Affordability for America Act of 2002, on April 10, 23,
and 24, 2002.
Flood Insurance. The Subcommittee on Housing and Community
Opportunity held a hearing on the National Flood Insurance
Program and repetitive loss properties on July 19, 2001.
Further, the Committee considered the future of the program in
connection with its consideration of H.R. 5005, the Homeland
Security Act of 2002, which transferred the Federal Emergency
Management Agency from its status as an independent executive-
branch agency to an entity within the Department of Homeland
Security.
Catastrophic Insurance Protection. This issue was
incorporated into hearings on the need for terrorism insurance
on September 26 and October 24, 2001, and on February 27, 2002.
On January 16, 2002, the Chairman asked GAO to conduct a review
of the need for terrorism insurance, the findings of which were
presented on February 27. H.R. 3210, the Terrorism Risk
Insurance Act of 2002, was adopted by the Committee on November
7, 2001, passed the House on November 29, 2001, passed the
Senate as S. 2600 on July 25, 2002, and was signed into law as
P.L. 107-297 on November 26, 2002.
Rural Housing Prepayment. Although the Committee took no
direct oversight action on this topic, the Committee monitored
the developments in this area throughout the 107th Congress.
CDBG/HOME Oversight. The Subcommittee on Housing and
Community Opportunity held a hearing on the CDBG program on
March 14, 2002. The HOME program was an issue considered during
the hearings on housing affordability in 2001 and 2002.
Oversight of the Puerto Rico Public Housing Authority.
Although the Committee took no direct oversight action on this
topic, the Committee monitored the developments in this area
throughout the 107th Congress.
Oversight of HUD's Real Estate Assessment Center (REAC) and
Public Housing Assessment System (PHAS). This issue was
considered during hearings on HUD's management and proposed
budgets in 2001 and 2002.
Currency and Payment System Issues
Electronic Commerce and Payment Systems. Although the
Committee took no direct oversight action on this topic, the
Committee monitored the developments in this area throughout
the 107th Congress.
Counterfeiting. The Subcommittee on Domestic Monetary
Policy, Technonogy, and Economic Growth held a hearing on July
24, 2001, on the design and security of currency. On March 19,
2002, the House passed H.R. 2509, The Bureau of Engraving and
Printing Security Printing Amendments Act of 2002, sponsored by
the Subcommittee on Domestic Monetary Policy, Technonogy, and
Economic Growth Chairman. The legislation would have allowed
the United States to produce currency, postage stamps, and
other security documents at the request of foreign governments
on a reimbursable basis. The Senate did not consider the bill
before the end of the session.
Dollar Coin. This issue was considered during the
Subcommittee on Domestic Monetary Policy, Technonogy, and
Economic Growth hearing on July 24, 2001.
Appendix I--Committee Legislation
This list includes: (1) bills reported by the Committee on
Financial Services, (2) bills referred to, but not acted upon
by, the Committee and enacted into law, and (3) bills refered
to, but not acted upon by, the Committee and reported by
another committee of jurisdiction.
Public laws and measures reported
------------------------------------------------------------------------
Public Law Rept. No. Bill Title
------------------------------------------------------------------------
H. Rept. H.R. 333 Bankruptcy Abuse
107-3* Prevention and
Consumer
Protection Act
of 2002
H. Rept. H.R. 556 Leach-LaFalce
107-339 Internet
Gambling
Enforcement Act
H. Rept. H.R. 974 Small Business
107-38 Interest
Checking Act of
2001
P.L. 107-123 H. Rept. H.R. Investment and
107-52 1088 Capital Markets
Fee Relief Act
H. Rept. H.R. Financial
107-192 1408 Services
Antifraud
Network Act of
2001
H. Rept. H.R. Consumer Rental
107-590 1701 Purchase
Agreement Act
H. Rept. H.R. Senior Housing
107-147 1850 Commission
Extension Act of
2001
P.L. 107-24 H. Rept. H.R. ILSA Extension
107-107* 1954 Act of 2001
P.L. 107-245 H. Rept. H.R. Sudan Peace Act
107-92* 5531;
H.R.
2052
H. Rept. H.R. Vietnam Human
107-199* 2368 Rights Act
P.L. 107-47 H. Rept. H.R. Defense
107-173 2510 Production Act
Amendments of
2001
H. Rept. H.R. Office of
107-196 2589 Multifamily
Housing
Assistance
Restructuring
Extension Act of
2001
H. Rept. H.R. To authorize the
107-291 2604 United States to
participate in
and contribute
to the seventh
replenishment of
the resources of
the Asian
Development Fund
and the fifth
replenishment of
the resources of
the
International
Fund for
Agricultural
Development, and
to set forth
additional
policies of the
United States
towards the
African
Development
Bank, the
African
Development
Fund, the Asian
Development
Bank, the Inter-
American
Development
Bank, and the
European Bank
for
Reconstruction
and Development.
P.L. 107-73 * H.R. FHA Multifamily
2620; Mortgage Loan
H.R. Limit Adjustment
1629; Act of 2001;
H.R. Senior Housing
1850 Commission
Extension Act of
2001
P.L. 107-95 H. Rept. H.R. Homeless Veterans
107-241* 2716 Comprehensive
Assistance Act
of 2001
P.L. 107-127 ......... H.R. General Shelton
2751 Congressional
Gold Medal Act
P.L. 107-189 \1\ H. Rept. H.R. Export-Import
107-292 2871 Bank
Reauthorization
Act of 2001
H. Rept. H.R. Brownfields
107-448 2941 Redevelopment
Enhancement Act
P.L. 107-56 H. Rept. H.R. Financial Anti-
107-250 3162; Terrorism Act of
H.R. 2001 (USA
3004 PATRIOT Act)
H. Rept. H.R. Emergency
107-283 3060 Securities
Response Act of
2001
P.L. 107-297 H. Rept. H.R. Terrorism Risk
107-300 3210 Protection Act
H. Rept. H.R. General Aviation
107-406* 3347 Industry
Reparations Act
of 2002
P.L. 107-151 * H.R. To revise certain
3699 grants for
continuum of
care assistance
for homeless
individual and
families
H. Rept. H.R. Federal Deposit
107-467 3717 Insurance Reform
Act of 2002
H. Rept. H.R. Pension Security
107-383* 3762 Act of 2002
P.L. 107-204 H. Rept. H.R. Sarbanes-Oxley
107-414 3763 Act of 2002
H. Rept. H.R. Securities and
107-415 3764 Exchange
Commission
Authorization
Act of 2002
H. Rept. H.R. Financial
107-516 3951 Services
Regulatory
Relief Act of
2001
P.L. 107-156 * S. 2019; To extend the
H.R. authority of the
3987 Export-Import
Bank through
April 30, 2002.
H. Rept. H.R. Housing
107-640 3995 Affordability
For America Act
of 2002
P.L. 107-186 ......... H.R. To extend the
4782 authority of the
Export-Import
Bank until June
14, 2002
H. Rept. H.R. Homeland Security
107-609* 5005 Act of 2002
H. Rept. H.R. To authorize the
107-720 5400 President of the
United States to
agree to certain
amendments to
the Agreement
between the
Government of
the United
States of
America and the
Government of
the United
Mexican States
concerning the
establishment of
a Border
Environment
Cooperation
Commission and a
North American
Development
Bank, and for
other purposes
P.L. 107-245 H. Rept. H.R. Sudan Peace Act
107-92* 5531;
H.R.
2052
P.L. 107-99 H. Rept. S. 494 Zimbabwe
107-312* Democracy and
Economic
Recovery Act of
2001
P.L. 107-18 * S. 1029 To clarify the
authority of the
Department of
Housing and
Urban
Development with
respect to the
use of fees
during fiscal
year 2001 for
the manufactured
housing program
P.L. 107-156 * S. 2019; To extend the
H.R. authority of the
3987 Export-Import
Bank through
April 30, 2002.
P.L. 107-201 * S. 2594 Support of Eagle
\2\ Silver Bullion
Program Act
* S. 1210 Native American
Housing
Assistance and
Self-
Determination
Reauthroization
Act of 2002
* S. 2239 FHA Downpayment
Simplification
Act of 2002
------------------------------------------------------------------------
* Measure not reported by the Committee on Financial Services.
\1\ Enacted bill was S. 1372.
\2\ For prior House action, see H.R. 4971.
Appendix II
part a
Hearings of the Committee on Financial Services
------------------------------------------------------------------------
Hearing
Serial No. Hearing Title Date(s)
------------------------------------------------------------------------
107-1 Conduct of Monetary February
Policy (Full Committee) 28, 2001
107-2 Protecting Consumers: March 6,
What Can Congress Do to 2001
Help Financial
Regulators Coordinate
Efforts to Fight Fraud?
(Subcommittee on
Oversight and
Investigations and
Subcommittee on
Financial Institutions
and Consumer Credit)
107-3 Saving Investors Money: March 7,
Reducing Excessive SEC 2001
Fees (Subcommittee on
Capital Markets,
Insurance, and
Government Sponsored
Enterprises)
107-4 Proposals to Permit March 13,
Payment of Interest on 2001
Business Checking
Accounts and Sterile
Reserves Maintained at
Federal Reserve Banks
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-5 Public Access to Market March 14,
Data: Improving 2001
Transparency and
Competition
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-6 The Financial Health of March 20,
the Federal Housing 2001
Administration (FHA)
Single Family Mutual
Mortgage Insurance Fund
(Subcommittee on Housing
and Community
Opportuntity)
107-7 Review of the Voluntary March 27,
Agreement by Fannie Mae 2001
and Freddie Mac
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-8 Beyond the Tax Cut: March 29,
Unleashing the Economy 2001
(Subcommittee on
Domesitic Monetary
Policy, Technology, and
Economic Growth)
107-9 Promotion of Capital April 4,
Availability to American 2001
Businesses (Subcommittee
on Capital Markets,
Insurance, and
Government Sponsored
Enterprises and the
Subcommittee on
Financial Institutions
and Consumer Credit)
107-10 U.S. Policy Towards the April 25,
African Development Bank 2001
and the African
Development Fund
(Subcommittee on
International Monetary
Policy and Trade)
107-11 The Budget of the April 26,
Department of Housing 2001
and Urban Development
(HUD) (Subcommittee on
Housing and Community
Opportunity)
107-12 Federal Reserve Board and May 2, 2001
Treasury Department Rule
Proposal (Subcommittee
on Financial
Institutions and
Consumer Credit)
107-13 Reauthorization of the May 2 and
Export-Import Bank 8, 2001
(Subcommittee on
International Monetary
Policy and Trade)
107-14 Housing Affordability May 3, May
Issues (Subcommittee on 22, June
Housing and Community 21, and
Opportunity) July 17,
2001
107-15 World Bank and IMF May 15,
Activities in Africa 2001
(Subcommittee on
International Monetary
Policy and Trade)
107-16 Deposit Insurance Reform May 16,
(Subcommittee on 2001
Financial Institutions
and Consumer Credit)
107-17 NARAB & Beyond May 16,
(Subcommittee on Capital 2001
Markets, Insurance, and
Government Sponsored
Enterprises)
107-18 Fair Disclosure or Flawed May 17,
Disclosure: Is Reg FD 2001
Helping or Hurting
Investors? (Subcommittee
on Capital Markets,
Insurance, and
Government Sponsored
Enterprises)
107-19 The State of the May 22,
International Financial 2001
System and IMF Reform
(Full Committee)
107-20 CBO Report on Federal May 23,
Subsidies for the 2001
Housing GSEs
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-21 Inspector General's June 4,
Report on the Housing 2001
Authority of New Orleans
(Subcommittee on
Oversight and
Investigations)
107-22 Promotion of June 7,
International Capital 2001
Flow through Accounting
Standards (Subcommittee
on Capital Markets,
Insurance, and
Government Sponsored
Enterprises)
107-23 FY 2002 Authorization June 12,
Requests for 2001
International Programs
(Subcommittee on
International Monetary
Policy and Trade)
107-24 Reauthorization of the June 13,
Defense Production Act 2001
of 1950 (Subcommittee on
Domesitic Monetary
Policy, Technology, and
Economic Growth)
107-25 Analyzing the Analysts June 14
(Subcommittee on Capital and July
Markets, Insurance, and 31, 2001
Government Sponsored
Enterprises)
107-26 The California Energy June 20,
Crisis: Causes, Impacts, 2001
and Remedies (Full
Committee)
107-27 Implementation of EFT June 20,
Requirements 2001
(Subcommittee on
Oversight and
Investigations)
107-28 Insurance Product June 21,
Approval: The Need for 2001
Modernization
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-29 The SEC's Role in Capital June 26,
Formation: Help or 2001
Hinderance?
(Subcommittee on
Oversight and
Investigations)
107-30 Trade in Financial June 26,
Services: Current Issues 2001
and Future Developments
(Subcommittee on
International Monetary
Policy and Trade)
107-31 ESIGN: Encouraging the June 28,
Use of Electronic 2001
Signatures in the
Financial Services
Industry (Subcommittee
on Domestic Monetary
Policy, Technology, and
Economic Growth)
107-32 Reforming Fannie Mae and July 11,
Freddie Mac 2001
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-33 H.R. 1701, the Consumer July 12,
Rental Purchase 2001
Agreement Act
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-34 Financial Aspects of July 12,
Internet Gaming: Good 2001
Gamble or Bad Bet?
(Subcommittee on
Oversight and
Investigations)
107-35 Conduct of Monetary July 18,
Policy (Full Committee) 2001
107-36 The National Flood July 19,
Insurance Program and 2001
Repetitive Loss
Properties (Subcommittee
on Housing and Community
Opportunity)
107-37 H.R. 556, the Unlawful July 24,
Internet Gambling 2001
Fundraising Prohibition
Act and Other Internet
Gambling Proposals
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-38 Design and Security of July 24,
Currency (Subcommittee 2001
on Domestic Monetary
Policy, Technology, and
Economic Growth)
107-39 Viewpoints of Select July 26,
Regulators on Deposit 2001
Insurance Reform
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-40 Market Data: Implications July 26,
to Investors 2001
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-41 OFHEO Risk-Based Capital August 1,
Rule (Subcommittee on 2001
Capital Markets,
Insurance, and
Government Sponsored
Enterprises)
107-42 Over-Regulation of August 1,
Automobile Insurance: A 2001
Lack of Consumer Choice
(Subcommittee on
Oversight and
Investigations)
107-43 Pushing Back the August 2,
Pushouts: the SEC's 2001
Broker-Dealer Rules
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises and the
Subcommittee on
Financial Institutions
and Consumer Credit)
107-44 The Section 203(k) September
Housing Program 10, 2001
(Subcommittee on
Oversight and
Investigations)
107-45 America's Insurance September
Industry: Keeping the 26, 2001
Promise (Full Committee)
107-46 Dismantling the Financial October 3,
Infrastructure of Global 2001
Terrorism (Full
Committee)
107-47 Viewpoints of the FDIC October 17,
and Select Industry 2001
Experts on Deposit
Insurance Reform
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-48 Protecting Policyholders October 24,
from Terrorism: Private 2001
Sector Solutions
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-49 Giving Consumers Credit: November 1,
How is the Credit Card 2001
Industry Treating its
Customers? (Subcommittee
on Financial
Institutions and
Consumer Credit)
107-50 Preventing Identity Theft November 8,
by Terrorists and 2001
Criminals (Subcommittee
on Oversight and
Investigations and
Committee on Ways and
Means Subcommittee on
Social Security)
107-51 Part 1 The Enron Collapse: December
Impact on Investors and 12, 2001
Financial Markets
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises and the
Subcommittee on
Oversight and
Investigations)
107-51 Part 2 The Enron Collapse: February 4
Impact on Investors and and 5,
Financial Markets 2002
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-52 Argentina's Economic February 6
Meltdown: Causes and and March
Remedies (Subcommittee 5, 2002
on International
Monetary Policy and
Trade)
107-53 The PATRIOT Act February
Oversight: 12, 2002
Investigationg Patterns
of Terrorist Financing
(Subcommittee on
Oversight and
Investigations)
107-54 The Proposed Budget of February
the Department of 13, 2002
Housing and Urban
Development
(Subcommittee on Housing
and Community
Opportunity)
107-55 Retirement Protections: February
Fighting Fraud in the 26, 2002
Sale of Death
(Subcommittee on
Oversight and
Investigations)
107-56 Conduct of Monetary February
Policy (Full Committee) 27, 2002
107-57 How Much are Americans at February
Risk Until Congress 27, 2002
Passes Terrorism
Insurance Protection?
(Subcommittee on
Oversight and
Investigations)
107-58 The State of the February
International Financial 28, 2002
System and IMF Reform
(Full Committee)
107-59 H.R. 2941, the March 6,
Brownfields 2002
Redevelopment
Enhancement Act
(Subcommittee on Housing
and Community
Opportunity)
107-60 H.R. 3763, the Corporate March 13,
and Auditing 20, and
Accountability, April 9,
Responsibility, and 2002
Transparency Act of 2002
(Full Committee)
107-61 Review of the Community March 14,
Development Block Grant 2002
Program (Subcommittee on
Housing and Community
Opportunity)
107-62 H.R. 3951--The Financial March 14
Services Regulatory and April
Relief Act of 2002 25, 2002
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-63 The Effects of the Global March 21,
Crossing Bankruptcy on 2002
Investors, Markets, and
Employees (Subcommittee
on Oversight and
Investigations)
107-64 H.R. 3995, the Housing April 10,
Affordability for 23, and
America Act of 2002 24, 2002
(Subcommittee on Housing
and Community
Opportunity)
107-65 Review of the Current April 10,
Status of Empowerment 2002
Zones and Renewal
Communities
(Subcommittee on Housing
and Community
Opportunity)
107-66 Encouraging Capital April 18,
Formation in Key Sectors 2002
of the Economy
(Subcommittee on
Domestic Monetary
Policy, Technology, and
Economic Growth)
107-67 Corporate Accounting May 1 and
Practices: Is There a 14, 2002
Credibility GAAP?
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-68 Proposed Changes to Both May 2, 2002
the World Bank-
International
Development Association
and the North American
Development Bank
(Subcommittee on
International Monetary
Policy and Trade)
107-69 Recovering Dictators' May 9, 2002
Plunder (Subcommittee on
Financial Institutions
and Consumer Credit)
107-70 European Union's May 22,
Financial Services 2002
Action Plan and its
Implications for the
American Financial
Services Industry (Full
Committe)
107-71 One Broker Gone Bad: May 23,
Punishing the Criminal, 2002
Making Victims Whole
(Subcommittee on
Oversight and
Investigations)
107-72* Insurance Regulation and June 4, 11,
Competition for the 21st and 18,
Century (Subcommittee on 2002
Capital Markets,
Insurance, and
Government Sponsored
Enterprises)
107-73 Fighting Discrimination June 25,
Against the Disabled and 2002
Minorities Through Fair
Housing Enforcement
(Subcommittee on
Financial Institutions
and Consumer Credit and
the Subcommittee on
Overisght and
Investigations)
107-74* Wrong Numbers: the July 8,
Accounting Problems at 2002
WorldCom (Full
Committee)
107-75 Treasury's Policy on July 16,
Housing GSEs 2002
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-76* Conduct of Monetary July 17,
Policy (Full Committee) 2002
107-77 Mold: A Growing Problem July 18,
(Subcommittee on 2002
Oversight and
Investigations and the
Subcommittee on Housing
and Community
Opportunity)
107-78* Expected Authorization July 19 and
Requests on the U.S. 25, 2002
Participartion in the
International
Development Association
and the African
Development Fund
(Subcommittee on
International Monetary
Policy and Trade)
107-79 OFHEO Risk-Based Capital July 23,
Stress Test for Fannie 2002
Mae and Freddie Mac
(Subcommittee on Capital
Markets, Insurance, and
Government Sponsored
Enterprises)
107-80* H.R. 3424, the Community July 24,
Choice in Real Estate 2002
Act (Subcommittee on
Financial Institutions
and Consumer Credit)
107-81* Erosion of Communities September
and Home Values by 12, 2002
Leaking Underground
Storage Tanks
(Subcommittee on Housing
and Community
Opportunity)
107-82* Technical Assistance and September
Capacity Building 17, 2002
Programs to Promote
Housing and Economic
Development
(Subcommittee on Housing
and Community
Opportunity)
107-83* Terrorist Financing: A September
Progress Report on 19, 2002
Implementation of the
USA PATRIOT Act (Full
Committee)
107-84* H.R. 5414, the Check September
Clearing for the 21st 25, 2002
Century Act
(Subcommittee on
Financial Institutions
and Consumer Credit)
107-85* Reforming the Real Estate October 3,
Settlement Procedure: 2002
Review of HUD's Proposed
RESPA Rule (Full
Committee)
107-86* Catastrophe Bonds: October 8,
Spreading Risk 2002
(Subcommittee on
Oversight and
Investigations)
------------------------------------------------------------------------
* Not yet in print.
part b
Committee Prints
------------------------------------------------------------------------
Serial No. Title
------------------------------------------------------------------------
107-A Rules of the Committee on
Financial Services--Feburary
2001. (Full Committee.)
107-B Compilation of Securities Laws--
March 2001. (Full Committee.)
107-C Compilation of Basic Banking Laws--
May 2001. (Full Committee.)
------------------------------------------------------------------------