II 

110TH CONGRESS 

2D SESSION S. 3698 

To prohibit any recipient of emergency Federal economic assistance from 

using such funds for lobbying expenditures or political contributions, 

to improve transparency, enhance accountability, encourage responsible 

corporate governance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2008 

Mrs. FEINSTEIN (for herself and Ms. SNOWE) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To prohibit any recipient of emergency Federal economic 

assistance from using such funds for lobbying expenditures or political contributions, to improve transparency, 

enhance accountability, encourage responsible corporate 

governance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Accountability for Eco5 nomic Rescue Assistance Act of 2008’’. 


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1 SEC. 2. PROHIBITION ON USE OF CERTAIN FEDERAL FUNDS 

2 FOR LOBBYING AND POLITICAL CONTRIBU3 TIONS. 

4 (a) DEFINITIONS.—In this Act: 

5 (1) EMERGENCY ECONOMIC ASSISTANCE.—The 

6 term ‘‘emergency economic assistance’’ means any 

7 funds made available to any recipient under title I 

8 of the Emergency Economic Stabilization Act of 

9 2008 (Public Law 110–343) or section 13 of the 

10 Federal Reserve Act. 

11 (2) LOBBYING EXPENDITURES.—The term 

12 ‘‘lobbying expenditures’’ has the meaning given 

13 under section 4911(c)(1) of the Internal Revenue 

14 Code of 1986. 

15 (3) POLITICAL CONTRIBUTIONS.—The term 

16 ‘‘political contributions’’ means any contribution on 

17 behalf of a political candidate or to a separate seg18 regated fund described in section 316(b)(2)(C) of 

19 the Federal Election Campaign Act of 1971 (2 

20 U.S.C. 441b(b)(2)(C)). 

21 (b) PROHIBITION ON THE USE OF EMERGENCY ECO22 NOMIC ASSISTANCE.—Any recipient of emergency eco23 nomic assistance and any subsidiary thereof may not use 

24 such funds for lobbying expenditures or political contribu25 tions. 


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1 SEC. 3. GUIDELINES FOR THE USE OF FUNDS. 

2 (a) GUIDELINES.—Not later than 30 days after the 

3 date of enactment of this Act, the Secretary of the Treas4 ury, in consultation with the Comptroller General and the 

5 Financial Stability Oversight Board, shall develop and 

6 publish corporate governance principles and ethical guide7 lines for recipients of emergency economic assistance in8 cluding restrictions governing— 

9 (1) the hosting, sponsorship, or payments for 

10 conferences and events; 

11 (2) the use of corporate aircraft, travel accom12 modations, and travel expenditures; 

13 (3) expenses relating to office or facility renova14 tions or relocations; and 

15 (4) expenses relating to entertainment, holiday 

16 parties, employee recognition events, or similar ancil17 lary corporate expenses. 

18 (b) INTERNAL REPORTING AND OVERSIGHT.—The 

19 Secretary of the Treasury shall publish suggested mecha20 nisms for addressing non-compliance with the guidelines 

21 developed pursuant to subsection (a) through enhanced in22 ternal reporting and oversight requirements. 

23 SEC. 4. REPORTING AND CERTIFICATION. 

24 (a) REPORT.—Each recipient of emergency economic 

25 assistance shall file with the Secretary of the Treasury on 

26 a quarterly basis— 


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1 (1) a detailed accounting of how emergency eco2 nomic assistance is being used, including an expla3 nation of how such funds have been allocated to sta4 bilize financial markets and increase the availability 

5 of credit to consumers and businesses; and 

6 (2) a certification that— 

7 (A) no emergency economic assistance is 

8 being used for lobbying expenditures of political 

9 contributions in violation of section 2(b); and 

10 (B) no emergency economic assistance is 

11 being used in violation of the guidelines issued 

12 by the Secretary of Treasury under section 

13 3(a). 

14 (b) PUBLIC AVAILABILITY.—Any report or certifi15 cation filed under this section shall be made publically 

16 available by Secretary of the Treasury on-line, and at no 

17 cost. 

18 SEC. 5. PENALTIES. 

19 (a) USE OF FUNDS.—Any person that violates sec20 tion 2(b) shall be subject to a civil fine of at least 

21 $100,000 per violation. 

22 (b) FUTURE FUNDING.—Any person that fails to 

23 comply with section 2(b) or the guidelines implemented 

24 under section 3 shall not be eligible to receive any future 

25 emergency economic assistance unless the Secretary of the 


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1 Treasury, in consultation with the Financial Stability 

2 Oversight Board, determines that reasonable steps have 

3 been taken to bring actions into compliance with and to 

4 prevent future violations of this Act. 

5 (c) FALSE REPORT.—Any person that fails to file a 

6 report or certification required under section 4 shall be 

7 subject to a civil fine of at least $100,000. 

8 SEC. 6. EFFECTIVE DATE AND APPLICATION. 

9 This Act shall take effect on the date of enactment 

10 of this Act and apply to any emergency economic assist11 ance received before, on, or after that date. 

Æ 


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