A bill to address national security threats and vulnerabilities that could undermine economic recovery and financial markets.

Summary: Economic Security Defense Act of 2010 - Establishes a Security Threats to Financial Markets and Economic Recovery Commission to examine and report to Congress on security threats and vulnerabilities to the U.S. economic recovery and financial markets.

Requires the Commission to make legislative recommendations to Congress and the President designed to address: (1) potential threats to financial markets and economic recovery from both state and non-state actors; (2) vulnerabilities in financial markets that could be exploited and would result in major economic implications; (3) the divide between national security and economic concerns; and (4) national security vulnerabilities associated with current federal debt levels.

SECTION 1. COMMISSION ON ECONOMIC SECURITY.

    (a) Short Title.--This section may be cited as the ``Economic 
Security Defense Act of 2010''.
    (b) Findings.--Congress finds that--
            (1) the recent financial crisis could serve as a road map 
        for actors seeking to destabilize economic systems;
            (2) the economy's growing interconnectedness increases 
        vulnerabilities;
            (3) the ability of malevolent actors to rapidly network and 
        mask their activities undermines the fundamentals of the 
        financial markets and economy;
            (4) as it is reported that a recent war game of the 
        Department of Defense--
                    (A) exposed the seriousness of threats to our 
                economy;
                    (B) was won by a group representing the Government 
                of China; and
                    (C) indicated a significant lack of understanding 
                of these issues across the divides between the national 
                security and financial communities;
            (5) a leading financial executive recently noted that the 
        financial crisis, sparked by the September 15th, 2008, collapse 
        of Lehman Brothers, could serve as a road map for actors 
        seeking to destabilize economic systems;
            (6) prominent counterterrorism expert Professor Bruce 
        Hoffman of Georgetown University has stated that al Qaeda and 
        other terrorists groups were devoting new attention to 
        derailing our financial system in the wake of that crisis;
            (7) foreign governments have developed economic warfare 
        capabilities or organizations, such as an economic warfare 
        bureau in China; and
            (8) former Directors of National Intelligence and other top 
        experts have warned of cybersecurity and other threats capable 
        of disrupting our financial institutions or critical 
        infrastructure, such as the national power grid.
    (c) Establishment.--There is established a commission to be known 
as the ``Security Threats to Financial Markets and Economic Recovery 
Commission'' (referred to in this Act as the ``Commission'').
    (d) Duties of Commission.--
            (1) Mandatory legislative recommendations.--The Commission 
        shall examine the security threats and vulnerabilities to the 
        United States' economic recovery and financial markets and to 
        develop legislative recommendations designed to address--
                    (A) potential threats to financial markets and 
                economic recovery from state actors and non-state 
                actors;
                    (B) vulnerabilities in financial markets that could 
                be exploited and would result in major economic 
                implications;
                    (C) the divide between national security concerns 
                and economic concerns; and
                    (D) national security vulnerabilities associated 
                with current Federal debt levels.
            (2) Policy solutions.--Legislative recommendations 
        developed to address the issues described in paragraph (1) may 
        include--
                    (A) reforms necessary to address gaps in government 
                and private capabilities to analyze and combat threats 
                to financial markets;
                    (B) reforms that strengthen the security of 
                financial markets;
                    (C) reforms that address financial systemic 
                weakness; and
                    (D) any other reforms designed to address the 
                issues described in paragraph (1).
    (e) Reports.--
            (1) Definition.--In this subsection, the term ``appropriate 
        committees of Congress'' shall include the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.
            (2) In general.--Not later than September 1, 2011, the 
        Commission shall submit a full report to the appropriate 
        committees of Congress and the President containing--
                    (A) a detailed description of the activities of the 
                Commission;
                    (B) a detailed statement of any findings of the 
                Commission as to public preferences regarding the 
                issues, policies, and tradeoffs presented in the town 
                hall style public hearings;
                    (C) a list of policy options for addressing those 
                problems; and
                    (D) criteria for the legislative recommendations to 
                be developed by the Commission.
            (3) Form.--The reports submitted under paragraph (1) shall 
        be submitted in unclassified form, but may contain a classified 
        annex.
    (f) Legislative Recommendations.--
            (1) In general.--Not later than 60 days after the date on 
        which the full report is submitted under subsection (e)(1) and 
        by a vote of at least 10 of the members, the Commission shall 
        submit legislative recommendations to Congress and the 
        President designed to address the issues described in 
        subsection (d).
            (2) Proposal requirements.--The proposal under paragraph 
        (1) shall, to the extent feasible, be designed--
                    (A) to achieve financial market and systemic 
                security;
                    (B) to address the comments and suggestions of the 
                consulted non-governmental experts and government 
                officials; and
                    (C) to meet the criteria set forth in the 
                Commission report.
    (g) Membership and Meetings.--
            (1) Membership.--
                    (A) In general.--The Commission shall be composed 
                of 20 voting members appointed pursuant to subparagraph 
                (B) and 3 nonvoting members described in subparagraph 
                (C).
                    (B) Voting members.--The Commission shall be 
                composed of 20 voting members, of whom not fewer than 7 
                members should be currently in the private sector, or 
                have significant experience in the private sector, of 
                whom--
                            (i) 5 shall be appointed by the Speaker of 
                        the House of Representatives;
                            (ii) 5 shall be appointed by the minority 
                        leader of the House of Representatives;
                            (iii) 5 shall be appointed by the majority 
                        leader of the Senate; and
                            (iv) 5 shall be appointed by the minority 
                        leader of the Senate.
                    (C) Executive branch consultation.--The Director of 
                National Intelligence, the Secretary, and the Chairman 
                of the Board of Governors shall advise and assist the 
                Commission, at the request of the Commission.
                    (D) Chair and cochair.--The Speaker of the House of 
                Representatives, the minority leader of the House of 
                Representatives, the majority leader of the Senate, and 
                the minority leader of the Senate shall designate 2 
                cochairpersons of the Commission from the members 
                appointed under subparagraph (B), one of whom must be a 
                Republican and one of whom must be a Democrat.
            (2) Limitations as to members of congress.--
                    (A) Members of congress on commission.--Each 
                appointing authority described in paragraph (1)(B) 
                shall appoint not more than 2 Members of Congress, nor 
                fewer than 1 Member of Congress, to the Commission.
                    (B) Continuation of voting membership.--In the case 
                of an individual appointed pursuant to paragraph (1)(A) 
                who was appointed as a Member of Congress under 
                subparagraph (A), if such individual ceases to be a 
                Member of Congress, that individual shall cease to be a 
                member of the Commission.
            (3) Date for original appointment.--The appointing 
        authorities described in paragraph (1)(B) shall appoint the 
        initial members of the Commission not later than 30 days after 
        the date of enactment of this Act.
            (4) Terms.--
                    (A) In general.--The term of each member is for the 
                life of the Commission.
                    (B) Vacancies.--A vacancy in the Commission shall 
                be filled not later than 30 days after such vacancy 
                occurs and in the manner in which the original 
                appointment was made.
            (5) Pay and reimbursement.--
                    (A) No compensation for members of commission.--
                Except as provided in subparagraph (B), a member of the 
                Commission may not receive pay, allowances, or benefits 
                by reason of their service on the Commission.
                    (B) Travel expenses.--Each member shall receive 
                travel expenses, including per diem in lieu of 
                subsistence under subchapter I of chapter 57 of title 
                5, United States Code.
            (6) Meetings.--The Commission shall meet upon the call of 
        the chairperson or a majority of its voting members.
            (7) Quorum.--Six voting members of the Commission shall 
        constitute a quorum, but a lesser number may hold hearings.
    (h) Staff of Commission.--
            (1) Staff.--In accordance with rules agreed upon by the 
        Commission, subject to paragraph (2), and to the extent 
        provided in advance in appropriation Acts, the cochairpersons 
        of the Commission may appoint and fix the pay of no more than 3 
        staff persons, subject to paragraph (3).
            (2) Applicability of certain civil service laws.--The staff 
        of the Commission may be appointed without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service.
            (3) Compensation.--A staff person of the Commission may not 
        be paid at a rate of pay that exceeds the maximum rate of pay 
        for a position at GS-14 of the General Schedule.
            (4) Detailees.--Any Federal Government employee may be 
        detailed to the Commission without reimbursement from the 
        Commission, and such detailee shall retain the rights, status, 
        and privileges of their regular employment without 
        interruption.
            (5) Experts and consultants.--In accordance with rules 
        agreed upon by the Commission and to the extent provided in 
        advance in appropriation Acts, the director may procure the 
        services of experts and consultants under section 3109(b) of 
        title 5, United States Code, but at rates not to exceed the 
        daily equivalent of the annual rate of basic pay for level V of 
        the Executive Schedule under section 5316 of title 5, United 
        States Code.
    (i) Powers of Commission.--
            (1) Hearings and evidence.--The Commission may, for the 
        purpose of carrying out this Act, hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the Commission considers appropriate. The 
        Commission may administer oaths or affirmations to witnesses 
        appearing before it.
            (2) Powers of members and agents.--Any member or agent of 
        the Commission may, if authorized by the Commission, take any 
        action which the Commission is authorized to take under this 
        subsection.
            (3) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (4) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its responsibilities under this Act.
            (5) Contract authority.--To the extent provided in advance 
        in appropriation Acts, the Commission may enter into contracts 
        to enable the Commission to discharge its duties under this 
        Act.
            (6) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property.
    (j) Funding.--There are authorized to be appropriated to the 
Commission, such sums as may be necessary to carry out this Act. 
Funding for the Commission shall be provided through discretionary 
appropriations.
    (k) Termination.--The Commission shall terminate 60 days after the 
date of submission of its legislative proposal to Congress under this 
Act.