To permit certain funds assessed for securities laws violations to be used to compensate employees who are victims of excessive pension fund investments in the securities of their employers, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enron Employee Pension Recovery Act 
of 2002''.

SEC. 2. SECURITIES AND EXCHANGE COMMISSION AUTHORITY TO PROVIDE RELIEF.

    (a) Proceeds of Enron and Andersen Enforcement Actions.--If in any 
administrative or judicial proceeding brought by the Securities and 
Exchange Commission against--
            (1) the Enron Corporation, any subsidiary or affiliate of 
        such Corporation, or any officer, director, or principal 
        shareholder of such Corporation, subsidiary, or affiliate for 
        any violation of the securities laws; or
            (2) Arthur Andersen L.L.C., any subsidiary or affiliate of 
        Arthur Andersen L.L.C., or any general or limited partner of 
        Arthur Andersen L.L.C., or such subsidiary or affiliate, for 
        any violation of the securities laws with respect to any 
        services performed for or in relation to the Enron Corporation, 
        any subsidiary or affiliate of such Corporation, or any 
        officer, director, or principal shareholder of such 
        Corporation, subsidiary, or affiliate;
the Commission obtains an order providing for an accounting and 
disgorgement of funds, such disgorgement fund (including any addition 
to such fund required or permitted under this section) shall be 
allocated in accordance with the requirements of this section.
    (b) Priority for Former Enron Employees.--The Commission shall, by 
order, establish an allocation system for the disgorgement fund. Such 
system shall provide that, in allocating the disgorgement fund amount 
the victims of the securities laws violations described in subsection 
(a), the first priority shall be given to individuals who were employed 
by the Enron Corporation, or a subsidiary or affiliate of such 
Corporation, and who were participants in an individual account plan 
established by such Corporation, subsidiary, or affiliate. Such 
allocations among such individuals shall be in proportion to the extent 
to which the nonforfeitable accrued benefit of each such individual 
under the plan was invested in the securities of such Corporation, 
subsidiary, or affiliate.
    (c) Addition of Civil Penalties.--If, in any proceeding described 
in subsection (a), the Commission assesses and collects any civil 
penalty, the Commission shall, notwithstanding sections 21(d)(3)(C)(i), 
21A(d)(1), or any other provision of the securities laws, be payable to 
the disgorgement fund.
    (d) Acceptance of Federal Campaign Contributions.--
            (1) In general.--Section 313 of the Federal Election 
        Campaign Act of 1971 (2 U.S.C. 439a) is amended by inserting 
        before ``or may be used'' the following: ``may be transferred 
        to any disgorgement fund which is required to be allocated in 
        accordance with the requirements of the Enron Employee Pension 
        Recovery Act of 2002,''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts received by a candidate 
        at any time before, on, or after the date of the enactment of 
        this Act.
    (e) Acceptance of Additional Donations.--The Commission is 
authorized to accept, hold, administer, and utilize gifts, bequests and 
devises of property, both real and personal, to the United States for 
the disgorgement fund. Gifts, bequests, and devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the disgorgement fund and shall be 
available for allocation in accordance with subsection (b).
    (f) Definitions.--As used in this section:
            (1) Commission.--The term ``Commission'' means the 
        Securities Exchange Commission.
            (2) Securities laws.--The term ``securities laws'' means 
        the Securities Act of 1933 (15 U.S.C. 78a et seq.), the 
        Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the 
        Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), the 
        Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), the 
        Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.), and 
        the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa 
        et seq.).
            (3) Disgorgement fund.--The term ``disgorgement fund'' 
        means a disgorgement fund established in any administrative or 
        judicial proceeding described in subsection (a).
            (4) Subsidiary or affiliate.--The term ``subsidiary or 
        affiliate'' when used in relation to a person means any entity 
        that controls, is controlled by, or is under common control 
        with such person.
            (5) Officer, director, or principal shareholder.--The term 
        ``officer, director, or principal shareholder'' when used in 
        relation to the Enron Corporation, or any subsidiary or 
        affiliate of such Corporation, means any person that is subject 
        to the requirements of section 16 of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78p) in relation to the Enron 
        Corporation, or any subsidiary or affiliate of such 
        Corporation.
            (6) Nonforfeitable; accrued benefit; individual account 
        plan.--The terms ``nonforfeitable'', ``accrued benefit'', and 
        ``individual account plan'' have the meanings provided such 
        terms, respectively, in paragraphs (19), (23), and (34) of 
        section 3 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(19), (23), (34)).

Summary: Enron Employee Pension Recovery Act of 2002 - Sets forth a priority allocation scheme requiring the Securities and Exchange Commission (SEC) to distribute to former Enron, subsidiary, or affiliate employees the proceeds from any administrative or judicial order brought for securities violations against the Enron Corporation or Arthur Andersen L. L. C. or any of their subsidiaries, affiliates, officers, directors, or principal shareholders for an accounting or disgorgement of funds . Amends the Federal Election Campaign Act of 1971 to authorize the transfer of Federal campaign contributions to such disgorgement fund. Authorizes the SEC to accept donations to the United States for such fund.