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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2095 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 2095

 To promote the capacity and accountability of Government corporations 
                 and Government sponsored enterprises.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 19, 1996

 Mr. Simon (for himself and Mr. Pryor) introduced the following bill; 
  which was read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 A BILL

 
 To promote the capacity and accountability of Government corporations 
                 and Government sponsored enterprises.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Corporation and 
Government Sponsored Enterprise Standards Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) ensure that Government corporations and Government 
        sponsored enterprises--
                    (A) are established and conduct their operations in 
                conformance with consistent standards as to the 
                applicability of Federal laws; and
                    (B) are fully accountable for their financial 
                soundness and programmatic activities; and
            (2) provide an orderly process for privatizing selected 
        Government corporations.

SEC. 3. DEFINITIONS.

    For the purposes of this Act the term--
            (1) ``Government corporation'' means an agency of the 
        United States within the executive branch that--
                    (A) is designated by law to have corporate form;
                    (B) carries out business type operations to provide 
                goods or services in response to economic demand; and
                    (C) produces revenues, potentially on a self-
                sustaining basis;
            (2) ``Government sponsored enterprise'' or ``GSE'' means an 
        instrumentality that--
                    (A) is chartered under the laws of the United 
                States to provide specialized financial services in 
                furtherance of public purposes;
                    (B) is owned wholly or in part by private equity 
                owners; and
                    (C) has a relationship to the Federal Government, 
                such as authority to borrow directly or indirectly from 
                the Treasury of the United States, that creates a 
                public perception of implicit Federal backing of its 
                obligations or guaranteed securities;
            (3) ``newly established wholly owned Government 
        corporation'' means a wholly owned Government corporation which 
        is established under a statute enacted after December 31, 1996;
            (4) ``newly established transitional Government 
        corporation'' means a transitional Government corporation which 
        is established under a statute enacted after December 31, 1996;
            (5) ``newly established Government sponsored enterprise'' 
        means a Government sponsored enterprise which is established 
        under a statute enacted after December 31, 1996;
            (6) ``transitional Government corporation'' means a 
        Government corporation that is intended to--
                    (A) operate on a profitmaking basis; and
                    (B) be converted to private ownership when 
                feasible; and
            (7) ``wholly owned Government corporation''--
                    (A) means a Government corporation that is wholly 
                owned or controlled by the Federal Government; and
                    (B) includes a transitional Government corporation 
                except as otherwise provided by law.

      TITLE I--CLASSIFICATIONS OF GOVERNMENT CORPORATIONS AND GSES

SEC. 101. CLASSIFICATION.

    (a) In General.--The Director of the Office of Management and 
Budget shall--
            (1) maintain a list of all Government corporations and 
        Government sponsored enterprises classified according to the 
        definitions of this Act; and
            (2) publish such list as a part of the annual budget of the 
        United States Government.
    (b) Recommendations.--The Director of the Office of Management and 
Budget shall make legislative recommendations to the Congress to ensure 
that this Act applies to entities established under statutes that are 
enacted or amended after December 31, 1996.

                      TITLE II--GENERAL PROVISIONS

SEC. 201. RESERVATION.

    The Congress expressly reserves the right to alter, amend or repeal 
any law establishing or governing the activities of a Government 
corporation or Government sponsored enterprise.

SEC. 202. AFFILIATES.

    Each newly established Government corporation or newly established 
Government sponsored enterprise may establish, acquire or control the 
activities of a subsidiary or other affiliate only by or under a law of 
the United States expressly authorizing the action.

SEC. 203. APPLICATION OF THIS ACT.

    On and after the effective date of this Act no entity established 
under Federal law shall be a Government corporation or Government 
sponsored enterprise without conforming to the requirements and 
definitions of this Act.

            TITLE III--WHOLLY OWNED GOVERNMENT CORPORATIONS

SEC. 301. APPLICABILITY.

    This title applies only to newly established wholly owned 
Government corporations.

SEC. 302. GOVERNMENT CORPORATION CONTROL ACT.

    Each wholly owned Government corporation shall be subject to the 
provisions of chapter 91 of title 31, United States Code, that are 
applicable to wholly owned Government corporations under that Act.

SEC. 303. SUNSET.

    Except as specifically provided by law, each newly established 
wholly owned Government corporation--
            (1) shall terminate 10 years after the date on which such 
        corporation is established; and
            (2) may be extended for additional 10-year periods by the 
        Congress.

SEC. 304. GENERAL POWERS.

    (a) In General.--In order to accomplish its statutory purposes and 
in addition to any other powers that may be authorized by law, each 
wholly owned Government corporation--
            (1) may adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (2) may sue and be sued in its corporate name and be 
        represented by its own attorneys in all administrative and 
        judicial proceedings, including, with the prior approval of the 
        Attorney General, appeals from decisions of Federal courts;
            (3) may indemnify directors, officers, attorneys, agents, 
        and employees of the corporation for liabilities and expenses 
        relating to corporate activities;
            (4) may adopt, amend, and repeal bylaws, rules, and 
        regulations governing the manner in which its business may be 
        conducted and the powers granted to it by law may be exercised 
        and enjoyed;
            (5) may determine the rates or prices of goods or services 
        that it provides, subject to applicable provisions of law;
            (6)(A) may acquire, purchase, lease, and hold real and 
        personal property including patents and proprietary data, as it 
        determines necessary in the transaction of its business, and 
        sell, lease, grant, and dispose of such real and personal 
        property, as it determines necessary to effectuate the purposes 
        of this Act; and
            (B) shall make purchases, contracts for the construction, 
        maintenance, or management and operation of facilities and 
        contracts for supplies or services, except personal services, 
        after advertising, in such manner and at such times 
        sufficiently in advance of opening bids, as the corporation 
        shall determine to be adequate to ensure notice and an 
        opportunity for competition, except that advertising shall not 
        be required when the corporation determines that--
                    (i) the making of any such purchase or contract 
                without advertising is necessary in the interest of 
                furthering the purposes of this Act; or
                    (ii) advertising is not reasonably practicable;
            (7) with the consent of the agency or Government concerned, 
        may utilize or employ the services, records, facilities or 
        personnel of any State or local Government agency or 
        instrumentality, or voluntary or uncompensated personnel to 
        perform such functions on its behalf as may appear desirable;
            (8) may enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary in the conduct of its business on a reimbursable 
        basis, with any agency or instrumentality of the United States, 
        or with any State, territory, or possession, or with any 
        political subdivision thereof, or with any person, firm, 
        association, or corporation;
            (9) may determine the character of and the necessity for 
        its obligations and expenditures and the manner in which they 
        shall be incurred, allowed, and paid, subject to this Act and 
        other provisions of law specifically applicable to wholly owned 
Government corporations;
            (10) may retain and utilize its revenues for any of the 
        purposes of the corporation, including research and development 
        and capital investment, and such revenues and funds of the 
        corporation shall not be subject to apportionment under the 
        provisions of subchapter II of chapter 15 of title 31, United 
        States Code;
            (11) may settle and adjust claims held by the corporation 
        against other persons or parties and claims by other persons or 
        parties against the corporation, except that for purposes of 
        the Contract Disputes Act of 1978, the corporation shall be 
        deemed to be the agency head with respect to contract claims 
        arising with respect to the corporation;
            (12) may exercise, in the name of the United States, the 
        power of eminent domain for the furtherance of the official 
        purposes of the corporation;
            (13) shall have the priority of the United States with 
        respect to the payment of debts out of bankrupt, insolvent, and 
        decedents' estates;
            (14) may define appropriate information as Government 
        commercial information and exempt such information from 
        mandatory release under section 552(b)(3) of title 5, United 
        States Code, when the corporation determines that such 
        information, if publicly released, would harm the corporation's 
        legitimate commercial interests or those of a third party;
            (15) may obtain from the Administrator of General Services 
        such services as the Administrator is authorized to provide to 
        agencies of the United States, on the same basis as those 
        services are provided to other agencies of the United States;
            (16) may accept gifts or donations of services, or of 
        property, real, personal, mixed, tangible or intangible, in aid 
        of any purposes of this Act;
            (17) may execute, in accordance with its bylaws, rules and 
        regulations, all instruments necessary and appropriate in the 
        exercise of any of its powers;
            (18) may provide for liability insurance either by contract 
        or by self-insurance; and
            (19) shall pay any settlement or judgment entered against 
        the corporation from the funds of the corporation and not from 
        funds made available pursuant to section 1304 of title 31, 
        United States Code.
    (b) Federal Tort Claims.--Chapter 171 and section 1346(b) of title 
28, United States Code, shall not apply to any claims arising from the 
activities of a wholly owned Government corporation.

SEC. 305. OFFICERS AND EMPLOYEES.

    Officers and employees of a wholly owned Government corporation 
shall be officers and employees of the United States. The corporation 
shall appoint and fix the compensation of such officers and employees 
(including attorneys) and agents of the corporation as are determined 
necessary to effect this Act, define their authority and duties, and 
delegate to officers, employees, and agents such of the powers vested 
in the corporation as the corporation may decide, without regard to any 
administratively imposed limits on the number or grade of personnel, 
and any such officer, employee, or agent shall be subject to the 
supervision only of the corporation.

SEC. 306. OBLIGATIONS AND GUARANTEES.

    The full faith and credit of the United States is pledged to the 
payment of all obligations issued or guaranteed by each wholly owned 
Government corporation.

SEC. 307. CONTRIBUTIONS TO RETIREMENT AND DISABILITY AND EMPLOYEES' 
              COMPENSATION FUNDS.

    (a) Retirement Contributions.--Each wholly owned corporation shall 
contribute to the Civil Service Retirement and Disability Fund 
established under section 8348 of title 5, United States Code, or other 
applicable Federal retirement fund, on the basis of annual billings as 
determined by the Office of Personnel Management, for the Government 
contribution to the Federal retirement system applicable to the 
corporation's employees and their beneficiaries.
    (b) Compensation Contributions.--Each wholly owned corporation 
shall contribute to the Employees' Compensation Fund established under 
section 8147 of title 5, United States Code, on the basis of annual 
billings as determined by the Secretary of Labor, for the benefit 
payments made from such Fund on account of the corporation's employees.
    (c) Administrative Costs.--The annual billings under subsections 
(a) and (b) shall include a statement of the fair portion of the cost 
of administration of the respective funds, which shall be paid into the 
Treasury as miscellaneous receipts.

SEC. 308. FINANCIAL STATEMENTS.

    Except as otherwise provided by law, each wholly owned Government 
corporation shall--
            (1) maintain a system of accounts and publish its financial 
        statements annually on the basis of generally accepted 
        accounting principles; and
            (2) be subject to audit on the basis of auditing standards 
        that are consistent with the private sector's generally 
        accepted commercial auditing standards.

SEC. 309. NEW ACTIVITIES.

    No wholly owned Government corporation shall engage in new types of 
business activities before such activities are included in the annual 
budget program that is approved by the Congress.

SEC. 310. REVENUES FOREGONE.

    There are authorized to be appropriated to each wholly owned 
Government corporation each year such sums as are determined by the 
corporation to be equal to revenues foregone by the corporation as a 
result of the operation of laws that direct the corporation, for 
reasons of national policy to provide goods or services at prices or 
rates below a reasonable estimate of the cost of production.

SEC. 311. BUDGET LIMITATIONS.

    The funds, accounts, receipts and outlays of wholly owned 
Government corporations are exempt from any general budget limitation 
imposed by statute upon expenditures and net lending (budget outlays) 
of the United States, sequestration order or discretionary spending 
limit, including application of the Balanced Budget and Emergency 
Deficit Control Act of 1985 or similar laws.

SEC. 312. PAYMENTS IN LIEU OF TAXES.

    (a) Exemption.--Wholly owned Government corporations, including 
their franchises, property and income, shall be exempt from all 
taxation imposed in any manner or form by any State, county, 
municipality or local taxing authority, or any subdivision thereof, 
except--
            (1) as otherwise provided by law; and
            (2) each such corporation shall make payments to State and 
        local governments in lieu of property taxes upon real property 
        of the corporation.
    (b) Payments.--The corporation shall make payments described under 
subsection (a)(2) in the amounts, at the times and upon the terms that 
the corporation determines appropriate, and the corporation's 
determination in these matters shall be final.

             TITLE IV--TRANSITIONAL GOVERNMENT CORPORATIONS

SEC. 401. APPLICABILITY.

    This title applies only to newly established transitional 
Government corporations.

SEC. 402. SUNSET.

    Each transitional Government corporation shall have succession for 
a period of 5 years from the date of enactment of the statute 
establishing such corporation, unless otherwise provided by law.

SEC. 403. PRIVATIZATION PLANNING.

    (a) Strategic Plan.--No later than 4 years after the date of 
enactment of the statute establishing such corporation, and no later 
than 4 years after the date of any extension of the statute 
establishing such corporation, each transitional Government corporation 
shall prepare a strategic plan for privatizing the corporation and 
submit such plan to the President and Congress. The plan shall provide 
that proceeds from the return of capital to the United States shall be 
deposited in the general fund of the Treasury.
    (b) Consideration of Alternative Means of Transferring Ownership.--
The plan shall include consideration of alternative forms of 
privatization, including consideration of the relative benefits and 
costs of complete or partial sale of corporate assets or of the going 
concern in 1 or more units to 1 or more privately owned entities 
established under the laws of a State or of the District of Columbia.
    (c) Consideration of Factors.--The plan shall include consideration 
of relevant factors including assessment whether privatization will--
            (1) result in a return to the United States at least equal 
        to the net present value of the corporation;
            (2) not result in ownership, control or domination of the 
        assets or of the acquiring entity or entities, as the case may 
        be, by an alien, a foreign corporation, or a foreign 
        government;
            (3) not be inimical to the health and safety of the public 
        or the common defense and security; and
            (4) contribute to the competitive structure of the relevant 
        market.
    (d) Evaluation and Recommendation.--The plan shall evaluate the 
relative merits of the alternatives considered and the estimated return 
on the Government's investment in the corporation achievable through 
each alternative. The plan shall include the corporation's 
recommendation on the preferred means of privatization.
    (e) GAO Evaluation.--No later than 60 days after the submission of 
the plan to the Congress, the Comptroller General shall submit a report 
to Congress evaluating the extent to which--
            (1) the privatization plan would result in any ongoing 
        obligation or undue cost to the Federal Government; and
            (2) the revenues gained by the Federal Government under the 
        privatization plan would represent at least the net present 
        value of the corporation.

               TITLE V--GOVERNMENT SPONSORED ENTERPRISES

SEC. 501. APPLICABILITY.

    This title applies only to newly established Government sponsored 
enterprises.

SEC. 502. SUNSET.

    Each Government sponsored enterprise shall have succession for a 
period of 10 years, subject to review by the Congress and extension for 
additional periods of 10 years, unless otherwise provided by law. The 
Secretary of the Treasury shall consider the applicable sunset period 
in determining the maturities of obligations that each Government 
sponsored enterprise may issue. The Secretary of the Treasury shall 
issue any regulations that the Secretary determines to be appropriate 
for the implementation of this title.

SEC. 503. FINANCIAL SAFETY AND SOUNDNESS.

    (a) Required Provisions.--The statute establishing any Government 
sponsored enterprise shall address issues of financial safety and 
soundness by including requirements that provide for--
            (1) effective Federal supervision of financial safety and 
        soundness;
            (2) adequate capital for the GSE; and
            (3) the GSE to achieve and maintain a high investment grade 
        rating, as prescribed in subsection (b), throughout the 
        existence of the GSE.
    (b) Rating.--
            (1) In general.--Not later than 1 year after the effective 
        date of the statute establishing each new GSE subject to this 
        Act, the Secretary of the Treasury shall, for each such GSE, 
        contract with 2 nationally recognized statistical rating 
        organizations to--
                    (A) assess the likelihood that the GSE will not be 
                able to meet its obligations from its own resources 
                with an assumption that there is no recourse to any 
                implicit Government guarantee and to express that 
                likelihood as a traditional credit rating; and
                    (B) review the rating of the GSE as frequently as 
                the Secretary determines is appropriate, but not less 
                than annually.
            (2) Reimbursement.--A Government sponsored enterprise shall 
        reimburse the Secretary of the Treasury for the full cost of 
        activities under this title, as determined by the Secretary of 
        the Treasury. Such reimbursement shall be credited to the 
        account of the Secretary of the Treasury.
            (3) Comments.--The Secretary of the Treasury shall--
                    (A) submit comments to the Congress on any 
                difference between the evaluation of the rating 
                organizations and that of the Secretary, with special 
                attention to capital adequacy; and
                    (B) report on any actions the Secretary determines 
                appropriate to ensure that each GSE continuously 
                maintains a high investment grade rating.
            (4) Requirement.--Each such GSE shall achieve and maintain 
        throughout the existence of the GSE 1 of the 2 highest 
        investment grade ratings awarded by each statistical rating 
        organization described in paragraph (5). The Secretary of the 
        Treasury may waive the requirements of this paragraph by 
        published order on such terms and conditions and for such 
        periods of times as the Secretary determines appropriate.
            (5) Definition.--For the purposes of this section, the term 
        ``nationally recognized statistical rating organization'' 
        means--
                    (A) any entity effectively recognized by the 
                Division of Market Regulation of the Securities and 
                Exchange Commission as a nationally recognized 
                statistical rating organization for the purposes of the 
                capital rules for broker-dealers; or
                    (B) an entity similar to an entity described under 
                subparagraph (A), which is designated by the Secretary 
                of the Treasury.
    (c) Reports.--The Comptroller General of the United States and the 
Office of Management and Budget each shall report to the Congress upon 
the adequacy of provisions for effective Federal supervision of safety 
and soundness, including the adequacy of capital standards, contained 
in any bill to create a Government sponsored enterprise. Each report 
shall also recommend provisions to be included in such bill to assure 
compliance with subsection (b).

SEC. 504. PUBLIC PURPOSES.

    (a) Required Provisions.--The statute establishing any Government 
sponsored enterprise shall prescribe the public purposes of the 
Government sponsored enterprise in sufficiently specific terms to 
enable the Congress to make an oversight determination of the 
accomplishment of such purposes.
    (b) Plan for Removal of Government Sponsorship.--
            (1) In general.--No later than 1 year after the enactment 
        of the statute establishing a Government sponsored enterprise, 
        and no later than 1 year after the date of any extension of the 
        statute establishing such Government sponsored enterprise, the 
        Federal agency responsible for supervision of the Government 
        sponsored enterprise, or the Secretary of the Treasury with 
        respect to Government sponsored enterprises that are not 
        subject to supervision by such a Federal agency, shall--
                    (A) prepare a strategic plan for the removal of 
                Government sponsorship from the Government sponsored 
                enterprise; and
                    (B) submit such plan to the President and the 
                Congress.
            (2) Content of plan.--The strategic plan shall set 
        standards and propose milestones for the Government sponsored 
        enterprise to accomplish its statutory mission and for the 
        removal of Government sponsorship.
            (3) Revision of plan.--The Federal agency or the Secretary 
        of the Treasury, as the case may be, shall update and revise a 
        strategic plan at least every 3 years.
            (4) GSE views.--To the extent that the Government sponsored 
        enterprise holds views different from those of the Federal 
        agency or the Secretary, the Government sponsored enterprise 
        shall--
                    (A) prepare a strategic plan for the removal of 
                Government sponsorship from the Government sponsored 
                enterprise; and
                    (B) submit such plan to the President and the 
                Congress.
    (c) Ultra Vires Acts of a Government Sponsored Enterprise.--The 
programs, activities, and transactions of each Government sponsored 
enterprise shall be subject to review by the Federal agency responsible 
for supervision of the financial safety and soundness of the Government 
sponsored enterprise, or by the Secretary of the Treasury with respect 
to Government sponsored enterprises that are not subject to financial 
supervision by such a Federal agency. The Federal agency or the 
Secretary of the Treasury, as the case may be, shall report at least 
annually to the President and the Congress on any transactions or 
undertakings which the agency or Secretary determines were carried out 
or made without authority of law. Such acts shall be null and void 
except to the extent that the Congress enacts legislation to authorize 
any such act.

SEC. 505. ANNUAL REPORT ON IMPACT OF BORROWING BY GOVERNMENT SPONSORED 
              ENTERPRISES ON PUBLIC DEBT.

    (a) General Requirement.--The Secretary of the Treasury shall 
annually prepare and submit to the Congress a report assessing the 
financial safety and soundness of the activities of all Government 
sponsored enterprises and the impact of the operations of such 
corporations on Federal borrowing.
    (b) Access to Relevant Information.--
            (1) Information from gses.--Each Government sponsored 
        enterprise shall--
                    (A) provide full and prompt access to the Secretary 
                to its books and records; and
                    (B) promptly provide any other information 
                requested by the Secretary.
            (2) Information from supervisory agencies.--In conducting 
        the studies under this section, the Secretary of the Treasury 
        may request information from, or the assistance of, any Federal 
        department or agency authorized by law to supervise the 
        activities of any Government sponsored enterprise.
            (3) Confidentiality of information.--
                    (A) In general.--The Secretary of the Treasury 
                shall determine and maintain the confidentiality of any 
                book, record, or information made available under this 
                subsection in a manner that the Secretary determines 
                appropriate for the material submitted by the 
                Government sponsored enterprise involved.
                    (B) Exemption from public disclosure 
                requirements.--The Department of the Treasury shall be 
                exempt from section 552 of title 5, United States Code, 
                with respect to any book, record, or information made 
                available under this subsection and determined by the 
                Secretary to be confidential under subparagraph (A).
                    (C) Penalty for unauthorized disclosure.--Any 
                officer or employee of the Department of the Treasury 
                shall be subject to the penalties set forth in section 
                1906 of title 18, United States Code, if--
                            (i) within the scope of employment, such 
                        officer or employee has possession of or access 
                        to any book, record, or information made 
                        available under this subsection and determined 
                        by the Secretary to be confidential under 
                        subparagraph (A); and
                            (ii) such officer or employee discloses the 
                        material in any manner other than--
                                    (I) to an officer or employee of 
                                the Department of the Treasury; or
                                    (II) pursuant to the exception 
                                under section 1906 of title 18, United 
                                States Code.
    (c) Assessment of Risk.--
            (1) In general.--In assessing the financial safety and 
        soundness of the activities of Government sponsored 
        enterprises, and the impact of the activities of such 
        enterprises on Federal borrowing, the Secretary of the Treasury 
        shall quantify the risks associated with each Government 
        sponsored enterprise. In quantifying such risks, the Secretary 
        shall determine--
                    (A) the volume and type of securities outstanding 
                which are issued or guaranteed by each Government 
                sponsored enterprise;
                    (B) the capitalization of each Government sponsored 
                enterprise; and
                    (C) the degree of risk involved in the operations 
                of each Government sponsored enterprise due to factors 
                such as credit risk, interest rate risk, management and 
                operations risk, and business risk.
            (2) Publicly available information.--The Secretary shall 
        also report on the quality and timeliness of information 
        available to the public and the Federal Government concerning 
        the extent and nature of the activities of Government sponsored 
        enterprises and the financial risk associated with such 
        activities.
    (d) Assessment of Impact.--In assessing the impact on Federal 
borrowing, the Secretary shall report upon the impact of the issuance 
or guarantee of securities by Government sponsored enterprises on--
            (1) the rate of interest and amount of discount offered on 
        obligations issued by the Secretary each year; and
            (2) the marketability of such obligations.
    (e) Date for Submission of Report.--The report required by 
subsection (a) shall be submitted to the Congress no later than January 
1 of the first calendar year beginning after the date of the enactment 
of this section, and no later than each January 1 thereafter.

SEC. 506. AUDITS.

    (a) In General.--Each Government sponsored enterprise shall have an 
annual independent audit made of its financial statements by an 
independent public accountant in accordance with generally accepted 
auditing standards. In conducting an audit under this subsection, the 
independent public accountant shall determine and report on--
            (1) whether the financial statements of the Government 
        sponsored enterprise are presented fairly in accordance with 
        generally accepted accounting principles; and
            (2) each transaction or undertaking which the auditor 
        believes was carried out or made without authority of law.
    (b) Audit by Comptroller General.--
            (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of each Government 
        sponsored enterprise shall be subject to audit by the 
        Comptroller General of the United States under such rules and 
        regulations as may be prescribed by the Comptroller General. 
        The representatives of the General Accounting Office shall--
                    (A) have access to such books, accounts, financial 
                records, reports, files, and such other papers, things, 
                or property belonging to or in use by the GSE and 
                necessary to facilitate the audit; and
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians.
            (2) Report to congress.--A report on each such audit shall 
        be submitted by the Comptroller General to the Congress. The 
        GSE shall reimburse the General Accounting Office for the full 
        cost of any such audit as billed therefor by the Comptroller 
        General.
            (3) Access to information.--To carry out this subsection, 
        the representatives of the General Accounting Office shall have 
        access, upon request to the GSE or any auditor for an audit of 
        the GSE under subsection (a), to any books, accounts, financial 
        records, reports, flies, or other papers, things, or property 
        belonging to or in use by the GSE and used in any such audit 
        and to any papers, records, files, and reports of the auditor 
        used in such an audit.
            (4) Program audits.--At least every 3 years the Comptroller 
        General shall conduct program audits of each Government 
        sponsored enterprise under this section. Each audit and report 
        by the Comptroller General shall include specifically each 
        transaction or undertaking which the Comptroller General 
        believes was carried out or made without authority of law.

SEC. 507. SHAREHOLDER RIGHTS.

    To the extent consistent with Federal law, shareholders in an 
investor-owned Government sponsored enterprise shall have the rights 
relative to the GSE and its management that are accorded to 
shareholders under the Business Corporation Act of the District of 
Columbia.

SEC. 508. JURISDICTION.

    All securities issued or guaranteed by a Government sponsored 
enterprise shall be subject to the laws administered by the Securities 
and Exchange Commission.

SEC. 509. EQUITY SECURITIES.

    No equity securities issued by a Government sponsored enterprise 
shall be lawful investments for--
            (1) any institution with deposits or other liabilities 
        insured or otherwise guaranteed by an agency of the Federal 
        Government; or
            (2) any Government Sponsored Enterprise other than the 
        Government sponsored enterprise that issues the equity 
        securities.

SEC. 510. FEDERAL INVESTMENTS.

    No securities issued or guaranteed by a Government sponsored 
enterprise shall be lawful investments or accepted as security for any 
fiduciary, trust, and public funds, the investment or deposit of which 
shall be under the authority and control of the United States or any 
officer or officer thereof.

SEC. 511. TAXATION.

    Each Government sponsored enterprise, including its activities, 
holdings and income, and income from securities issued or guaranteed by 
a Government sponsored enterprise, shall be subject to all taxation 
imposed by Federal, State, and local governments and taxing authorities 
to the same extent as other business organizations, and income from 
their securities, are taxed.

SEC. 512. REPORT TO THE CONGRESS.

    A Government sponsored enterprise shall submit an annual report to 
the Congress including--
            (1) a list including the name and address of each 
        contractor, consultant, agent, or employee paid by the 
        Government sponsored enterprise to engage in--
                    (A) grassroots organizing or campaigning;
                    (B) public relations, media consulting, or image 
                advertising; or
                    (C) lobbying, including the direct and indirect 
                lobbying of the Congress;
            (2) an itemization of all costs associated with activities 
        described in paragraph (1) whether incurred by the Government 
        sponsored enterprise or by any of its contractors, consultants, 
        agents, or employee listed under such paragraph, including 
        entertainment expenses, travel expenses, advertising costs, 
        salaries, billing rates and the total amount billed for 
        services;
            (3) a description of any lobbying of the Congress or the 
        executive branch by employees, board members, or officers of 
        the Government sponsored enterprise;
            (4) a description of any effort by the Government sponsored 
        enterprise or its agents to encourage others to lobby the 
        Congress or the executive branch;
            (5) a list of all charitable donations paid by the 
        Government sponsored enterprise on behalf of Members of 
        Congress or members of the executive branch;
            (6) a list of the salaries and other compensation 
        (including the present value of stock options) and benefits 
        paid to the officers and board members of the Government 
        sponsored enterprise; and
            (7) a list of all Government sponsored enterprise employees 
        who have been employed by either the Congress or the Federal 
        Government in the 5 years preceding the report, and such 
        employees' salary prior to being employed by the Government 
        sponsored enterprise and the salary of each such employee.

              TITLE VI--GOVERNMENT CORPORATION CONTROL ACT

SEC. 601. DEFINITIONS.

    (a) Government Corporation.--Section 9101(1) of title 31, United 
States Code, is amended to read as follows:
            ``(1) `Government corporation' means a wholly owned 
        Government corporation and a Government sponsored 
        enterprise.''.
    (b) Government Sponsored Enterprise.--Section 9101(2) of title 31, 
United States Code, is amended to read as follows:
            ``(2) `Government sponsored enterprise' means the Federal 
        Home Loan Banks, the Farm Credit Banks, the Banks for 
        Cooperatives of the Farm Credit System, and such other 
        Government sponsored enterprises as the Secretary of the 
        Treasury may designate from time to time.''.
    (c) Wholly Owned Government Corporation.--Section 9101(3) of title 
31, United States Code, is amended by adding at the end:
                    ``(O) The National Railroad Passenger Corporation.
                    ``(P) The Federal Deposit Insurance Corporation.
                    ``(Q) The National Credit Union Administration 
                Central Liquidity Facility.
                    ``(R) The Rural Telephone Bank.
                    ``(S) The Resolution Trust Corporation.''.

SEC. 602. AUDITS.

    Section 9105 of title 31, United States Code, is amended to read as 
follows:
``Sec. 9105. Audits
    ``(a) The programs, activities, receipts, expenditures and 
financial transactions of each wholly owned Government corporation 
shall be audited annually by the Comptroller General of the United 
States under such rules and regulations as may be prescribed by the 
Comptroller General. The representatives of the General Accounting 
Office shall have access to such books, accounts, financial records, 
reports, files and such other papers, things, or property belonging to 
or in use by the corporation and necessary to facilitate the audit, and 
they shall be afforded full facilities for verifying transactions with 
the balances or securities held by depositories, fiscal agents, and 
custodians. The representatives of the General Accounting Office shall 
have access, upon request to the corporation or any auditor for an 
audit of the corporation under this section, to any books, financial 
records, reports, files or other papers, things, or property belonging 
to or in use by the corporation and used in any such audit and to 
papers, records, files, and reports of the auditor used in such an 
audit. In conducting such audit, the Comptroller General may make a 
contract, without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5), for professional services with a firm or organization for a 
temporary period or special purpose.
    ``(b) The Comptroller General of the United States shall make a 
report to the Congress on each audit conducted under this section. The 
report to the Congress shall contain such comments and information as 
the Comptroller General determines necessary to inform the Congress of 
the financial operations and condition of the corporation, together 
with such recommendations as the Comptroller General determines 
advisable. The report shall also show specifically any program, 
expenditure, or other financial transaction or undertaking, observed, 
or reviewed in the course of the audit which, in the opinion of the 
Comptroller General, has been carried out or made without authority of 
law. A copy of each such report shall be furnished to the President, 
the Secretary of the Treasury, and to the corporation at the time 
submitted to the Congress.
    ``(c) A Government corporation shall reimburse the Comptroller 
General of the United States for the cost of the audit as determined by 
the Comptroller General. Such reimbursement shall be credited to the 
account of the Comptroller General. An audit under this section is in 
place of an audit of the financial transactions of a Government 
corporation the Comptroller General is required to make in reporting to 
the Congress or the President under another law.''.

SEC. 603. FORMER MIXED-OWNERSHIP GOVERNMENT CORPORATIONS.

    Sections 9103-9105 of title 31, United States Code, shall not apply 
to wholly owned government corporations that formerly were designated 
mixed-ownership corporations under the Government Corporation Control 
Act, except as otherwise provided by law.

SEC. 604. ACCOUNTS AND OBLIGATIONS.

    (a) Accounts.--Section 9107(c) of title 31, United States Code, is 
amended--
            (1) in paragraph (2) by striking ``mixed-ownership 
        Government corporation'' and inserting ``Government sponsored 
        enterprise''; and
            (2) in paragraph (3) by striking ``Federal Intermediate 
        Credit Banks, the Central Banks for Cooperatives, the Regional 
        Banks for Cooperatives, or the Federal Land Banks'' and 
        inserting ``Government sponsored enterprises''.
    (b) Obligations.--Section 9108(d)(1) of title 31, United States 
Code, is amended by striking ``mixed-ownership Government corporation'' 
and inserting ``Government sponsored enterprise''.

                        TITLE VII--SEPARABILITY

SEC. 701. SEPARABILITY.

    If any provision of this Act or the application thereof to any 
person or circumstances is held invalid, the remainder of this Act, and 
the application of such provision to other persons or circumstances 
shall not be affected thereby.
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