I 

112TH CONGRESS 

1ST SESSION H. R. 2990 

To create a full employment economy as a matter of national economic 

defense; to provide for public investment in capital infrastructure; to 

provide for reducing the cost of public investment; to retire public debt; 

to stabilize the Social Security retirement system; to restore the authority 

of Congress to create and regulate money, modernize and provide stability 

for the monetary system of the United States; and for other public 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 21, 2011 

Mr. KUCINICH (for himself and Mr. CONYERS) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To create a full employment economy as a matter of national 

economic defense; to provide for public investment in 

capital infrastructure; to provide for reducing the cost 

of public investment; to retire public debt; to stabilize 

the Social Security retirement system; to restore the 

authority of Congress to create and regulate money, 

modernize and provide stability for the monetary system 

of the United States; and for other public purposes. 

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


tjames on DSK6SPTVN1PROD with BILLS
2 

•HR 2990 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Emergency 

3 Employment Defense Act of 2011’’. 

4 SEC. 2. FINDINGS; PURPOSES. 

5 (a) FINDINGS.—The Congress finds as follows: 

6 (1) Nearly 14,000,000 Americans are currently 

7 unemployed, another 12,000,000 estimated Ameri8 cans are underemployed, wages are stagnant and 

9 millions of Americans are being asked to take pay 

10 cuts. 

11 (2) Over 43,000,000 Americans live below the 

12 poverty line, 49,000,000 of Americans go to bed 

13 hungry at night, and an estimated 3,000,000 Ameri14 cans are homeless. 

15 (3) Over 1,500,000 non-business bankruptcies 

16 were filed in calendar year 2010, the highest number 

17 in five years, and the index of small business opti18 mism is at a low not seen in nearly two decades. 

19 (4) More than 2,000,000 homes are in fore20 closure and millions of homeowners are falling be21 hind in their mortgage payments; the housing mar22 ket in terms of construction and sales has undergone 

23 an historic decline; and the declining value of hous24 ing means Americans’ largest single investment, the 

25 home, is no longer a safe harbor for savings, nest 


tjames on DSK6SPTVN1PROD with BILLS
3 

•HR 2990 IH

1 eggs, social mobility or the transfer of generational 

2 wealth. 

3 (5) Notwithstanding passage of the Patient 

4 Protection and Affordable Care Act, a privatized 

5 health care system has made quality health care be6 yond the reach of most Americans. 

7 (6) The cost of higher education has put higher 

8 academic attainment outside the reach of millions 

9 more young Americans, and the current generation 

10 of young Americans will not be able to attain the 

11 quality of life of their parents, reversing a long12 standing trend. 

13 (7) The American Society of Civil Engineers 

14 has estimated that there is $2.2 trillion in unmet in15 frastructure needs. Cities and States, urban and 

16 rural areas all have an urgent need to rebuild and 

17 repair roads, bridges, railroads, water systems, sewer 

18 systems and other infrastructure but lack the nec19 essary funds, bond-issuing capacity and other needs 

20 which has led to America’s infrastructure falling into 

21 disrepair. 

22 (8) The Board of Governors of the Federal Re23 serve System have compounded the economic crisis 

24 by failing to take decisive action to move the econ25 omy forward, Wall Street, which was bailed out by 


tjames on DSK6SPTVN1PROD with BILLS
4 

•HR 2990 IH

1 the American people, is not investing its rising as2 sets in Main Street America, and individual inves3 tors are beginning to turn away from the stock mar4 ket. 

5 (9) Some banks, many of which received gov6 ernment bailouts, are not investing in small busi7 nesses, nor in the creation of jobs, the private sector 

8 is not creating jobs, and in fact most businesses are 

9 freezing their employment levels. 

10 (10) Congress is stymied by competing forces: 

11 a desire to put people to work and an aversion to 

12 borrowing money to create programs to do so. 

13 (11) Confidence in the United States’ economic 

14 leadership at home and around the world is waning, 

15 the value of our currency cannot be securely main16 tained, and no other path to economic recovery ex17 ists which will create the changes necessary to put 

18 people back to work, invest in rebuilding America’s 

19 infrastructure, i.e. highway, rail, airport, harbors, 

20 light rail, communication, shipping, water, sewer, 

21 education, and civil defense. 

22 (12) The aforementioned conditions require 

23 comprehensive action by the United States Congress 

24 to create full employment, invest in America and se25 cure our Nation’s long-term economic, social and poVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
5 

•HR 2990 IH

1 litical future; and that such action is within our 

2 Constitutional right and responsibility. 

3 (13) The authority to create money is a sov4 ereign power vested in the Congress under Article I, 

5 Section 8 of the Constitution. 

6 (14) The enactment of the Federal Reserve Act 

7 in 1913 by Congress effectively delegated the sov8 ereign power to create money, to the Federal Re9 serve system and private financial industry. 

10 (15) This ceding of Constitutional power has 

11 contributed materially to a multitude of monetary 

12 and financial afflictions, including: 

13 (A) growing and unreasonable concentra14 tion of wealth; 

15 (B) unbridled expansion of national debt, 

16 both public and private; 

17 (C) excessive reliance on taxation of citi18 zens for raising public revenues; 

19 (D) devaluation of the currency; 

20 (E) drastic increases in the cost of public 

21 infrastructure investments; 

22 (F) record levels of unemployment and 

23 underemployment; and 

24 (G) persistent erosion of the ability of Con25 gress to exercise its Constitutional responsibilVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
6 

•HR 2990 IH

1 ities to provide resources for the general welfare 

2 of all the American people. 

3 (16) A debt-based monetary system, where 

4 money comes into existence primarily through pri5 vate bank lending, can neither create, nor sustain, a 

6 stable economic environment, but has proven to be 

7 a source of chronic financial instability and frequent 

8 crisis, as evidenced by the near collapse of the finan9 cial system in 2008. 

10 (17) Banks increased their value by lending 

11 money imprudently, which greatly inflated the value 

12 of bank holdings, exposing depositors and taxpayers 

13 to the risks of schemes like the bundling of subprime 

14 mortgages, and ultimately bringing undercapitalized 

15 banks and the entire financial system to the edge of 

16 ruin, creating circumstances where the taxpayers of 

17 the United States were called upon to save the 

18 banks from their own imprudent lending practices, 

19 misspending and mis-investments. The banks’ ability 

20 to create money out of nothing ultimately became 

21 the taxpayers’ liability, and raises a fundamental 

22 question about a practice of money creation which 

23 threatens the wealth of the American people. 


tjames on DSK6SPTVN1PROD with BILLS
7 

•HR 2990 IH

1 (18) Abolishing private money creation can be 

2 achieved with minimal disruption to current banking 

3 operations, regulation, and supervision. 

4 (19) The creation of money by private financial 

5 institutions as interest-bearing debts should cease 

6 once and for all. 

7 (20) Reclaiming the power of the Federal Gov8 ernment to originate money, and to spend or lend 

9 money into circulation as needed, eliminates the 

10 need to treat money as a Federal liability or to pay 

11 interest charges on the Nation’s money supply to fi12 nancial institutions; it also removes the undue influ13 ence of private financial institutions over public pol14 icy. 

15 (21) Under the current Federal Reserve Sys16 tem, the persons responsible for the conduct of 

17 United States monetary policy have been unaccount18 able to the Congress and the Nation, have resisted 

19 auditing by the Government Accountability Office, 

20 and have claimed exemptions from some Federal 

21 statutes, including the Civil Rights Act of 1964, that 

22 apply to all agencies of the Federal Government. 

23 (22) The implementation of United States mon24 etary policy by the Board of Governors of the Fed25 eral Reserve System has failed to promote full emVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
8 

•HR 2990 IH

1 ployment, and the failure of the Board of Governors 

2 to safeguard the financial system against wholesale 

3 fraud and abuse of citizens, demonstrates the risks 

4 of maintaining a system wherein the power to create 

5 and regulate money has been delegated to private in6 dividuals who are unaccountable to the People of the 

7 United States in any way, even through their rep8 resentatives in Congress. 

9 (23) An examination of the historical record 

10 demonstrates that the exercise of control by the 

11 United States Government over the money system 

12 has provided greater moderation in the supply of 

13 money and promoting the general welfare, and has 

14 been indispensable in times of national emergency 

15 for generating resources required to support public 

16 investment, provide for national defense, and pro17 mote the general welfare, and is therefore superior 

18 to private control over the money system. 

19 (24) As our money system is a key pillar in 

20 maintaining general economic welfare and as the 

21 Federal Reserve System and its private banking 

22 partners has consistently failed to promote or pre23 serve the general welfare, it is essential that Con24 gress, in the name of protecting the economic lives 

25 of the American people and the long-term security of 


tjames on DSK6SPTVN1PROD with BILLS
9 

•HR 2990 IH

1 our Nation, reassume the powers and responsibilities 

2 granted to it by the Constitution. 

3 (b) PURPOSES.—The purposes of this Act are as fol4 lows: 

5 (1) To create a Monetary Authority which shall 

6 pursue a monetary policy based on the governing 

7 principle that the supply of money in circulation 

8 should not become inflationary nor deflationary in 

9 and of itself, but will be sufficient to allow goods 

10 and services to move freely in trade in a balanced 

11 manner. The Monetary Authority shall maintain 

12 long run growth of the monetary and credit aggre13 gates commensurate with the economy’s long run po14 tential to increase production, so as to promote ef15 fectively the goals of maximum employment, stable 

16 prices, and moderate long-term interest rates. 

17 (2) To create a full employment economy as a 

18 matter of national economic defense; to provide for 

19 public investment in capital infrastructure; to pro20 vide for reducing the cost of public investment; to 

21 retire public debt; to stabilize the Social Security re22 tirement system; to restore the authority of Con23 gress to create and regulate money, to modernize 

24 and provide stability for the monetary system of the 

25 United States, and for other public purposes. 


tjames on DSK6SPTVN1PROD with BILLS
10 

•HR 2990 IH

1 (3) To abolish the creation of money, or pur2 chasing power, by private persons through lending 

3 against deposits, by means of fractional reserve 

4 banking, or by any other means. 

5 (4) To enable the Federal Government to invest 

6 or lend new money into circulation as authorized by 

7 Congress and to provide means for public investment 

8 in capital infrastructure. 

9 (5) To incorporate the Federal Reserve System 

10 into the Executive Branch under the United States 

11 Treasury, and to make other provisions for reorga12 nization of the Federal Reserve System. 

13 (6) To provide for an orderly transition. 

14 (7) To make other provisions necessary to ac15 complish the purposes of this Act. 

16 SEC. 3. DEFINITIONS. 

17 (a) IN GENERAL.—For purposes of this Act, the fol18 lowing definitions shall apply: 

19 (1) BUREAU.—The term ‘‘Bureau’’ means the 

20 Bureau of the Federal Reserve established under 

21 section 314 of title 31, United States Code, as added 

22 by section 303. 

23 (2) DEPOSIT.—The term ‘‘deposit’’— 


tjames on DSK6SPTVN1PROD with BILLS
11 

•HR 2990 IH

1 (A) has the meaning given such term in 

2 section 3(l) of the Federal Deposit Insurance 

3 Act); and 

4 (B) includes— 

5 (i) a member account (as defined in 

6 section 101(5) of the Federal Credit Union 

7 Act) in a credit union; and 

8 (ii) any transaction account. 

9 (3) DEPOSITORY INSTITUTION.—The term ‘‘de10 pository institution’’— 

11 (A) has the same meaning as in section 3 

12 of the Federal Deposit Insurance Act; and 

13 (B) includes any credit union (as defined 

14 in section 101 of the Federal Credit Union 

15 Act). 

16 (4) INSTRUMENT OF INDEBTEDNESS OF THE

17 UNITED STATES; TREASURY INSTRUMENTS.—The 

18 terms ‘‘instrument of indebtedness of the United 

19 States’’ and ‘‘Treasury instrument’’ include any obli20 gation issued under subchapter I of chapter 31 of 

21 title 31, United States Code. 

22 (5) MEMBER BANK.—The term ‘‘member bank’’ 

23 has the same meaning as in the first section of the 

24 Federal Reserve Act. 


tjames on DSK6SPTVN1PROD with BILLS
12 

•HR 2990 IH

1 (6) MONEY.—The term ‘‘money’’ refers to 

2 United States Money, as established under title I. 

3 (7) MONETARY AUTHORITY.—The term ‘‘Mone4 tary Authority’’ means the Monetary Authority es5 tablished under section 302. 

6 (8) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of the Treasury. 

8 (9) STATE.—The term ‘‘State’’ has the same 

9 meaning as in section 3 of the Federal Deposit In10 surance Act. 

11 (10) EFFECTIVE DATE.—The term ‘‘effective 

12 date’’ means the date determined and published in 

13 the Federal Register by the Secretary, during the 

14 90-day period beginning on the date of the enact15 ment of this Act, that— 

16 (A) is not less than 1 year after such date 

17 of enactment and not more than 2 years after 

18 such date; and 

19 (B) is the date on which the designated 

20 provisions of this Act take effect. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT TO

22 THE FDIA.—Section 3(l) of the Federal Deposit Insur23 ance Act (12 U.S.C. 1813(l)) is amended by adding at 

24 the end the following: 


tjames on DSK6SPTVN1PROD with BILLS
13 

•HR 2990 IH

1 ‘‘Such term does not include any amount on which 

2 any interest is paid or which is received or held by a bank 

3 or savings association pursuant to a loan agreement for 

4 a fixed term of time (as determined without regard to any 

5 designation on the agreement as a loan, certificate, or 

6 other particular instrument).’’. 

7 SEC. 4. COORDINATION WITH OTHER LAW. 

8 (a) IN GENERAL.—This Act shall supersede any pro9 vision of Federal law in effect on the day before the date 

10 of the enactment of this Act that is inconsistent with any 

11 provision of this Act but only to the extent of such incon12 sistency. 

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

14 Before the end of the 6-month period beginning on the 

15 date of the enactment of this Act, the Secretary of the 

16 Treasury shall submit to the Congress a proposed draft 

17 of legislation of the Monetary Authority that, if enacted, 

18 would implement such technical and conforming amend19 ments as the Monetary Authority may recommend— 

20 (1) to repeal the provisions of law referred to 

21 in subsection (a) that are inconsistent with this Act; 

22 and 

23 (2) to further clarify and implement the provi24 sions of this Act. 


tjames on DSK6SPTVN1PROD with BILLS
14 

•HR 2990 IH

1 TITLE I—ORIGINATION OF 

2 UNITED STATES MONEY 

3 SEC. 101. EXERCISE OF CONSTITUTIONAL AUTHORITY TO 

4 CREATE MONEY. 

5 (a) IN GENERAL.—Pursuant to the exercise by the 

6 Congress of the authority contained in the 5th clause of 

7 section 8 of Article I of the Constitution of the United 

8 States of America— 

9 (1) the authority to create money within the 

10 United States shall hereafter reside exclusively with 

11 the Federal Government; and 

12 (2) the money so created shall be known as 

13 United States Money and denominated and ex14 pressed as provided in section 5101 of title 31, 

15 United States Code. 

16 (b) EXERCISE OF SOVEREIGN POWER.—The creation 

17 of United States Money under this Act is the legal expres18 sion of the sovereign power of the Nation and confers upon 

19 its bearer an unconditional means of payment. 

20 (c) LIMITATION ON EXPRESSION.—Beginning on the 

21 effective date— 

22 (1) only the coin, notes, or other forms of legal 

23 tender, including electronic currency, originated by 

24 the United States Treasury under the authority of 


tjames on DSK6SPTVN1PROD with BILLS
15 

•HR 2990 IH

1 this Act shall be deemed as United States money; 

2 and 

3 (2) it shall be unlawful for any person to des4 ignate any credit, note, bond, script or other finan5 cial instrument as United States Money. 

6 SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY. 

7 Any person who creates or originates United States 

8 money by lending against deposits, through so-called frac9 tional reserve banking, or by any other means, after the 

10 effective date shall be fined under title 18, United States 

11 Code, imprisoned for not more than 5 years, or both. 

12 SEC. 103. PRODUCTION OF UNITED STATES MONEY. 

13 (a) COMMENCING FULL PRODUCTION OF UNITED

14 STATES CURRENCY.—Section 5115 of title 31, United 

15 States Code, is amended by striking subsections (a) and 

16 (b) and inserting the following new subsections: 

17 ‘‘(a) IN GENERAL.—In order to furnish suitable 

18 notes for circulation as United States money, the Sec19 retary of the Treasury shall cause plates and dies to be 

20 engraved in the best manner to guard against counterfeits 

21 and fraudulent alterations, and shall have printed there22 from and numbered such quantities of such notes of the 

23 same denominations as are currently issued. 

24 ‘‘(b) FORM AND TENOR.—United States currency 

25 notes for circulation as United States money shall be in 


tjames on DSK6SPTVN1PROD with BILLS
16 

•HR 2990 IH

1 form and tenor as directed by the Secretary of the Treas2 ury.’’. 

3 (b) CEASING PRODUCTION OF FEDERAL RESERVE

4 NOTES.—The Secretary of the Treasury shall wind-down 

5 and cease production of Federal reserve notes under the 

6 8th undesignated paragraph of section 16 of the Federal 

7 Reserve Act (12 U.S.C. 418) as quickly as practicable 

8 after the date of the enactment of this Act, but no later 

9 than the effective date, in coordination with the start-up 

10 and maintenance of production of United States currency 

11 under section 5115 of title 31, United States Code. The 

12 Secretary shall ensure that at all times the amount of Fed13 eral Reserve notes in circulation is sufficient to meet de14 mand until the production of United States currency is 

15 sufficient to meet such demand. 

16 (c) CONTINUING CIRCULATION UNTIL RETIRE17 MENT.—Any Federal Reserve notes in circulation shall 

18 continue to be legal tender until retired in accordance with 

19 applicable provisions of law. 

20 SEC. 104. LEGAL TENDER. 

21 (a) IN GENERAL.—United States Money shall enter 

22 into general domestic circulation as full legal tender in 

23 payment of all debts public and private. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

25 Section 5103 of title 31, United States Code, is amended 


tjames on DSK6SPTVN1PROD with BILLS
17 

•HR 2990 IH

1 by striking ‘‘(including Federal reserve notes and circu2 lating notes of Federal reserve banks and national banks)’’ 

3 and inserting ‘‘in the form of United States Money’’. 

4 SEC. 105. DISBURSEMENTS TO BE DENOMINATED IN 

5 UNITED STATES MONEY. 

6 On the effective date, all United States Government 

7 disbursements shall be denominated in United States 

8 Money, the unit being the dollar, symbolized as $. 

9 SEC. 106. ORIGINATION IN LIEU OF BORROWING. 

10 (a) IN GENERAL.—After the effective date, and sub11 ject to limitations established by the United States Mone12 tary Authority under provisions of section 302, the Sec13 retary shall originate United States Money to address any 

14 negative fund balances resulting from a shortfall in avail15 able Government receipts to fund Government appropria16 tions authorized by Congress under law. 

17 (b) PROHIBITION ON GOVERNMENT BORROWING.— 

18 After the effective date, unless otherwise provided by an 

19 Act of the Congress enacted after such date— 

20 (1) no amount may be borrowed by the Sec21 retary from any source; and 

22 (2) no amount may be borrowed by any Federal 

23 agency or department, any independent establish24 ment of the executive branch, or any other instru25 mentality of the United States (other than a naVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
18 

•HR 2990 IH

1 tional bank, Federal savings association, or Federal 

2 credit union) from any source other than the Sec3 retary. 

4 (c) RULE OF CONSTRUCTION.—No provision of this 

5 Act shall be construed as preventing the Congress from 

6 exercising its constitutional authority to borrow money on 

7 the full faith and credit of the United States. 

8 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

9 On the effective date, chapter 31 of title 31, United States 

10 Code, is hereby repealed, subject to the retirement of out11 standing instruments of indebtedness of the United States 

12 in accordance with section 401. 

13 SEC. 107. RETIREMENT OF INSTRUMENTS OF INDEBTED14 NESS. 

15 Before the effective date, the Secretary shall com16 mence to retire all outstanding instruments of indebted17 ness of the United States by payment in full of the amount 

18 legally due the bearer in United States Money, as such 

19 amounts become due. 

20 SEC. 108. ACCOUNTING. 

21 (a) IN GENERAL.—The Secretary shall account for 

22 the disbursement of United States Money and of current 

23 fund balances through accounting reports maintained and 

24 published by the Secretary and by departments and agen25 cies of the United States Government. 


tjames on DSK6SPTVN1PROD with BILLS
19 

•HR 2990 IH

1 (b) GAO AUDIT.—The Comptroller General of the 

2 United States shall conduct an independent biennial audit. 

3 TITLE II—ENTRY OF UNITED 

4 STATES MONEY INTO CIR5 CULATION 

6 SEC. 201. ENTRY OF UNITED STATES MONEY INTO CIR7 CULATION. 

8 The Secretary shall cause United States Money to 

9 enter into circulation by and through any of the following 

10 means: 

11 (1) Any origination or disbursement of funds to 

12 accomplish Federal expenditures authorized and ap13 propriated by an Act of the Congress. 

14 (2) Any disbursement to retire outstanding in15 struments of indebtedness of the Federal Govern16 ment or the Secretary of the Treasury as such in17 struments become due. 

18 (3) Any contribution authorized by an Act of 

19 the Congress subject to any limitation established by 

20 the Monetary Authority to the Revolving Fund es21 tablished in section 302 of this Act. 

22 (4) Any action provided for in the transitional 

23 arrangements specified in title IV of this Act, includ24 ing the conversion of all deposits in transaction ac25 counts into United States Money. 


tjames on DSK6SPTVN1PROD with BILLS
20 

•HR 2990 IH

1 (5) Any exercise of ‘‘lender of last resort’’ emer2 gency authorities under the emergency procedures 

3 specified in section 305. 

4 (6) Any purchase of stock in a Federal reserve 

5 bank from a member bank and of any other assets 

6 as prescribed under the Federal Reserve Act as re7 quired to accomplish the purposes of section 301. 

8 (7) Any other means, and for any other purpose 

9 explicitly authorized by an Act of the Congress that 

10 becomes law after the effective date of this Act. 

11 TITLE III—RECONSTRUCTION OF 

12 THE FEDERAL RESERVE SYSTEM 

13 SEC. 301. RECONSTITUTION OF THE FEDERAL RESERVE. 

14 (a) GOVERNMENT ACQUISITION OF ALL NET ASSETS

15 OF FEDERAL RESERVE SYSTEM.—On the effective date, 

16 the Secretary shall purchase on behalf of the United 

17 States all net assets in the Federal Reserve System, in18 cluding the Federal reserve banks, according to the rules 

19 specified in the Federal Reserve Act (12 U.S.C. 288) for 

20 this purpose. 

21 (b) REPAYMENT OF RESERVES.—Any reserves of any 

22 member bank that is held by any Federal reserve bank 

23 shall be returned to the member bank in the form of 

24 United States Money, subject to the provisions contained 

25 in sections 401 and 402(b). 


tjames on DSK6SPTVN1PROD with BILLS
21 

•HR 2990 IH

1 SEC. 302. ESTABLISHMENT OF THE UNITED STATES MONE2 TARY AUTHORITY. 

3 (a) MONETARY AUTHORITY.— 

4 (1) ESTABLISHMENT.— 

5 (A) IN GENERAL.—There is hereby estab6 lished the Monetary Authority as an authority 

7 within the Department of the Treasury under 

8 the general oversight of the Secretary of the 

9 Treasury. 

10 (B) AUTONOMY OF MONETARY AUTHOR11 ITY.—The Secretary of the Treasury may not 

12 intervene in any matter or proceeding before 

13 the Monetary Authority, unless otherwise spe14 cifically provided by law. 

15 (C) INDEPENDENCE OF MONETARY AU16 THORITY.—The Secretary of the Treasury may 

17 not delay, prevent, or intervene in the issuance 

18 of any regulation or other determination of the 

19 Monetary Authority, including the determina20 tion of the amounts of money to be originated 

21 and most efficient method of disbursement con22 sistent with the appropriations of Congress and 

23 the statutory objectives of monetary policy as 

24 specified in this Act. 

25 (2) MEMBERSHIP.— 


tjames on DSK6SPTVN1PROD with BILLS
22 

•HR 2990 IH

1 (A) IN GENERAL.—The Monetary Author2 ity shall consist of 9 public members appointed 

3 by the president, by and with the advice and 

4 consent of the Senate. 

5 (B) TERMS.— 

6 (i) IN GENERAL.—Except as provided 

7 in subparagraph (E), each member of the 

8 Monetary Authority shall be appointed to a 

9 term of 6 years. 

10 (ii) CONTINUATION OF SERVICE.— 

11 Each member of the Monetary Authority 

12 may continue to serve after the expiration 

13 of the term of office to which such member 

14 was appointed until a successor has been 

15 appointed and qualified. 

16 (C) POLITICAL AFFILIATION.—Not more 

17 than 4 of the members of the Monetary Author18 ity may be members of the same political party. 

19 (D) VACANCY.— 

20 (i) IN GENERAL.—Any vacancy on the 

21 Monetary Authority shall be filled in the 

22 manner in which the original appointment 

23 was made. 

24 (ii) INTERIM APPOINTMENTS.—Any 

25 member appointed to fill a vacancy occurVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
23 

•HR 2990 IH

1 ring before the expiration of the term for 

2 which such member’s predecessor was ap3 pointed shall be appointed only for the re4 mainder of such term. 

5 (E) STAGGERED TERMS.—Of the members 

6 first appointed to the Monetary Authority after 

7 the enactment of this Act— 

8 (i) 1 shall be appointed for a term of 

9 2 years; 

10 (ii) 2 shall be appointed for a term of 

11 3 years; 

12 (iii) 2 shall be appointed for a term of 

13 4 years; 

14 (iv) 2 shall be appointed for a term of 

15 5 years; and 

16 (v) 2 shall be appointed for the full 

17 term of 6 years. 

18 (3) CHAIRPERSON.—One of the members of the 

19 Monetary Authority shall be designated by the Presi20 dent as the Chairperson of the Monetary Authority. 

21 (4) DUTIES.—The Monetary Authority shall— 

22 (A) establish monetary supply policy and 

23 monitor the Nation’s monetary status; and 

24 (B) carry out such other responsibilities as 

25 the President may delegate to the Monetary 


tjames on DSK6SPTVN1PROD with BILLS
24 

•HR 2990 IH

1 Authority or that may be provided by an Act of 

2 Congress. 

3 (5) GOVERNING PRINCIPLE OF MONETARY POL4 ICY.—The Monetary Authority shall pursue a mone5 tary policy based on the governing principle that the 

6 supply of money in circulation should not become in7 flationary nor deflationary in and of itself, but will 

8 be sufficient to allow goods and services to move 

9 freely in trade in a balanced manner. The Monetary 

10 Authority shall maintain long run growth of the 

11 monetary and credit aggregates commensurate with 

12 the economy’s long run potential to increase produc13 tion, so as to promote effectively the goals of max14 imum employment, stable prices, and moderate long15 term interest rates. 

16 (6) MEETINGS.—The Monetary Authority shall 

17 meet on a regular basis subject to the call of the 

18 Chairperson, the Secretary, or a majority of the 

19 members. 

20 (7) PAY.—The members of the Monetary Au21 thority shall receive a salary at annual rates equal 

22 to the annual rate determined under section 5 of 

23 title 28, United States Code, for an associate justice. 

24 (8) STAFF.—The Monetary Authority may ap25 point and establish the pay of such employees as the 


tjames on DSK6SPTVN1PROD with BILLS
25 

•HR 2990 IH

1 Monetary Authority determines is appropriate to as2 sist the Monetary Authority to carry out the duties 

3 imposed under this section. 

4 (b) RESPONSIBILITY OF SECRETARY.—The Secretary 

5 shall regulate the monetary supply in reasonable accord6 ance with targets established by the Monetary Authority. 

7 (c) REPORTS ON DISCREPANCIES.—The Secretary 

8 shall report to the Congress any discrepancy between any 

9 monetary target and the monetary supply in excess of 0.5 

10 percent at the end of each quarter. 

11 SEC. 303. ESTABLISHMENT OF THE BUREAU OF THE FED12 ERAL RESERVE. 

13 (a) IN GENERAL.—Subchapter I of chapter 3 of title 

14 31, United States Code, is amended by adding at the end 

15 the following new section: 

16 ‘‘SEC. 314. BUREAU OF THE FEDERAL RESERVE. 

17 ‘‘(a) ESTABLISHMENT.—There is hereby established 

18 the Bureau of the Federal Reserve as a bureau within the 

19 Department of the Treasury (hereafter in this section re20 ferred to as the ‘Bureau’). 

21 ‘‘(b) MANAGEMENT.— 

22 ‘‘(1) COMMISSIONER.—The management of the 

23 Bureau shall be vested in a Commissioner who, with 

24 the assistance of the Deputy Commissioner and such 

25 staff as the Commissioner may appoint, shall carry 


tjames on DSK6SPTVN1PROD with BILLS
26 

•HR 2990 IH

1 out the duties vested in the Bureau and the Com2 missioner. 

3 ‘‘(2) DEPUTY COMMISSIONER.—There is hereby 

4 established within the Bureau the position of Deputy 

5 Commissioner. 

6 ‘‘(3) APPOINTMENT.—The Commissioner and 

7 the Deputy Commissioner shall be appointed by the 

8 president, by and with the advice and consent of the 

9 Senate. 

10 ‘‘(4) TERMS.— 

11 ‘‘(A) IN GENERAL.—The Commissioner 

12 and the Deputy Commissioner shall each be ap13 pointed to a term of 7 years. 

14 ‘‘(B) STAGGERED TERMS.—Notwith15 standing subparagraph (A), the person first ap16 pointed Deputy Commissioner shall be ap17 pointed to a term of 4 years. 

18 ‘‘(5) VACANCY.— 

19 ‘‘(A) IN GENERAL.—Any vacancy on the 

20 Bureau shall be filled in the manner in which 

21 the original appointment was made. 

22 ‘‘(B) INTERIM APPOINTMENTS.—Any 

23 member appointed to fill a vacancy occurring 

24 before the expiration of the term for which such 


tjames on DSK6SPTVN1PROD with BILLS
27 

•HR 2990 IH

1 member’s predecessor was appointed shall be 

2 appointed only for the remainder of such term. 

3 ‘‘(c) DUTIES.— 

4 ‘‘(1) MONETARY POLICY.—The Bureau shall— 

5 ‘‘(A) administer, under the direction of the 

6 Secretary, the origination and entry into cir7 culation of United States Money, subject to the 

8 limitations established by the Monetary Author9 ity; and 

10 ‘‘(B) administer lending of United States 

11 Money to authorized depository institutions, as 

12 described in section 403 (‘Revolving Fund’) to 

13 ensure that— 

14 ‘‘(i) money creation is solely a func15 tion of the United States Government; and 

16 ‘‘(ii) fractional reserve lending is 

17 ended. 

18 ‘‘(2) TRANSFERRED FUNCTIONS.—After the ef19 fective date, the Bureau shall exercise all functions 

20 consistent with this Act which, before such date, 

21 were carried out under the direction of the Board of 

22 Governors of the Federal Reserve System. 

23 ‘‘(3) ITEMIZATION BY SECRETARY.—Not less 

24 than 90 days before the effective date, the Secretary 

25 and the Monetary Authority shall itemize— 


tjames on DSK6SPTVN1PROD with BILLS
28 

•HR 2990 IH

1 ‘‘(A) the functions of the Board of Gov2 ernors of the Federal Reserve System that are 

3 transferred to the Bureau pursuant to para4 graph (2); and 

5 ‘‘(B) the provisions of the Federal Reserve 

6 Act and other provisions of Federal law, relat7 ing to the functions so transferred, in the appli8 cation of which the term ‘Bureau’ (as estab9 lished under this section) shall be substituted 

10 for the term ‘Board of Governors of the Federal 

11 Reserve System’ or ‘Board’, as the case may 

12 be.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 for subchapter I of chapter 3 of title 31, United States 

15 Code, is amended by adding at the end the following new 

16 item: 

‘‘314. Bureau of the Federal Reserve.’’. 

17 (c) ROLE OF BOARD AFTER ENACTMENT.—With ef18 fect on the effective date, the Board of Governors of the 

19 Federal Reserve System shall be dissolved. 

20 SEC. 304. FORECASTING OF DISBURSEMENT REQUIRE21 MENTS. 

22 The Secretary shall— 

23 (1) forecast disbursement requirements on a 

24 daily, monthly, and annual basis; 


tjames on DSK6SPTVN1PROD with BILLS
29 

•HR 2990 IH

1 (2) provide such forecasts to the Congress and 

2 the public; 

3 (3) integrate forecasts with the Federal budget 

4 process; 

5 (4) maintain a sufficient research capability to 

6 continuously and effectively assess the impact of dis7 bursement of United States Money on all aspects of 

8 the domestic and international economies; and 

9 (5) report to the Congress and the public regu10 larly on the economic impact of disbursements of 

11 United States Money and the status of the monetary 

12 supply. 

13 SEC. 305. LENDER OF LAST RESORT; EMERGENCY PROCE14 DURES. 

15 (a) RECOMMENDATION OF THE PRESIDENT UPON

16 RECOMMENDATION OF EMERGENCY BOARD.—The Mone17 tary Authority may not exercise any authority under the 

18 3rd undesignated paragraph of section 13 of the Federal 

19 Reserve Act unless— 

20 (1) the Emergency Board established under 

21 subsection (b) recommends, upon a vote of 2/3 of 

22 the members, to the House of Representatives and 

23 the Senate, that the House of Representatives and 

24 the Senate adopt a concurrent resolution calling on 


tjames on DSK6SPTVN1PROD with BILLS
30 

•HR 2990 IH

1 the President to certify that a national emergency 

2 exists which requires the exercise of such authority; 

3 (2) the House of Representatives and the Sen4 ate each adopt, by a vote of 2/3 of the members 

5 present, a concurrent resolution calling on the Presi6 dent to certify that a national emergency exists 

7 which requires the exercise of such authority; and 

8 (3) the President issues a certification that a 

9 national emergency exists which requires the exercise 

10 of such authority by the Monetary Authority. 

11 (b) EMERGENCY BOARD.—There is established for 

12 purposes of this section the Emergency Board which shall 

13 consist of the following members: 

14 (1) The President. 

15 (2) The Secretary of Commerce. 

16 (3) The Secretary of Energy. 

17 (4) The Secretary of Labor. 

18 (5) The Secretary of the Treasury. 

19 (6) The Speaker of the House of Representa20 tives. 

21 (7) The minority leader of the House of Rep22 resentatives. 

23 (8) The majority leader of the Senate. 

24 (9) The minority leader of the Senate. 


tjames on DSK6SPTVN1PROD with BILLS
31 

•HR 2990 IH

1 (10) The chairpersons and ranking members of 

2 the Committee on Financial Services and the Com3 mittee on Oversight and Government Reform of the 

4 House of Representatives. 

5 (11) The chairpersons and ranking members of 

6 the Committee on Banking, Housing, and Urban Af7 fairs and the Committee on Homeland Security and 

8 Governmental Affairs of the Senate. 

9 (c) RULE OF CONSTRUCTION.—Except as provided in 

10 subsection (a), no provision of this Act shall be construed 

11 as affecting the authority of the Monetary Authority under 

12 the 3rd undesignated paragraph of section 13 of the Fed13 eral Reserve Act. 

14 SEC. 306. SAVINGS PROVISIONS AND TRANSFER PROVI15 SIONS. 

16 (a) SAVINGS PROVISIONS.— 

17 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA18 TIONS NOT AFFECTED.—The establishment of the 

19 Bureau of the Federal Reserve shall not affect the 

20 validity of any right, duty, or obligation of the 

21 United States, the Bureau (as the successor to the 

22 Board of Governors of the Federal Reserve System 

23 or any Federal reserve bank), or any other person 

24 that— 


tjames on DSK6SPTVN1PROD with BILLS
32 

•HR 2990 IH

1 (A) arises under any provision of law relat2 ing to any function of the Board of Governors 

3 of the Federal Reserve System transferred to 

4 the Bureau by this title and amendments made 

5 by this title; and 

6 (B) existed on the day before the effective 

7 date. 

8 (2) CONTINUATION OF SUITS.—This Act shall 

9 not abate any proceeding commenced by or against 

10 the Board of Governors (or any Federal reserve 

11 bank) before the effective date with respect to any 

12 function of the Board of Governors (or any Federal 

13 reserve bank) transferred to the Bureau by this title, 

14 except that the Bureau shall be substituted for the 

15 Board of Governors (or Federal reserve bank) as a 

16 party to any such proceeding as of the effective date. 

17 (b) TRANSFER OF CERTAIN PERSONNEL.— 

18 (1) IDENTIFYING EMPLOYEES FOR TRANS19 FER.—The Secretary and the Chairman of the 

20 Board of Governors of the Federal Reserve System 

21 shall— 

22 (A) jointly determine the number of em23 ployees of the Board necessary to perform or 

24 support the functions of the Board of Gov25 ernors that are transferred to the Monetary AuVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
33 

•HR 2990 IH

1 thority (if any) and the Bureau of the Federal 

2 Reserve pursuant to a provision of or amend3 ment made by this title; and 

4 (B) consistent with the number determined 

5 under subparagraph (A), jointly identify em6 ployees of the Board of Governors for transfer 

7 in a manner that the Secretary and the Board 

8 of Governors of the Federal Reserve System, in 

9 their sole discretion, determine to be equitable. 

10 (2) IDENTIFIED EMPLOYEES TRANSFERRED.— 

11 All employees of the Board of Governors of the Fed12 eral Reserve System identified under paragraph 

13 (1)(B) shall be transferred to the Monetary Author14 ity or the Bureau of the Federal Reserve, as the 

15 case may be, for employment. 

16 (3) FEDERAL RESERVE BANK EMPLOYEES.— 

17 Employees of any Federal reserve bank, as of the 

18 day before the transfer date for any employees of 

19 the Board of Governors of the Federal Reserve Sys20 tem, shall be treated as employees of the Board of 

21 Governors for purposes of paragraph (1) and (2). 


tjames on DSK6SPTVN1PROD with BILLS
34 

•HR 2990 IH

1 TITLE IV—TRANSITIONAL 

2 ARRANGEMENTS 

3 SEC. 401. CONVERSION OF FEDERAL RESERVE NOTES. 

4 (a) IN GENERAL.—Before the end of the 120-day pe5 riod beginning on the date of the enactment of this Act, 

6 the Secretary shall establish the rules and procedures for 

7 converting outstanding Federal reserve notes to United 

8 States Money of equal face value. 

9 (b) PROVISION OF SUPPLY SUFFICIENT FOR CON10 VERSION AND ISSUANCE.—Before the end of the 150-day 

11 period beginning on the date of the enactment of this Act 

12 and as Federal reserve notes are converted to United 

13 States Money, the Secretary shall begin providing a suffi14 cient quantity of United States Money to the domestic 

15 banking system to allow for conversion of all outstanding 

16 Federal reserve notes and the issuance of additional cur17 rency as required. 

18 (c) DISBURSAL OF FUNDS.—After the end of the 

19 180-day period beginning on the date of the enactment 

20 of this Act, all financial institutions within the United 

21 States shall only disburse funds in United States Money, 

22 whether as currency, an addition to an available account 

23 balance, or other instrument. 

24 (d) DISPOSAL OF OBSOLETE CURRENCY.—The Sec25 retary shall promptly dispose of (in the manner provided 


tjames on DSK6SPTVN1PROD with BILLS
35 

•HR 2990 IH

1 under section 5120(b) of title 31, United States Code, for 

2 the disposal of obsolete United States currency) all Fed3 eral reserve notes as they are returned in exchange for 

4 United States Money. 

5 (e) TECHNICAL AND CONFORMING AMENDMENT.— 

6 Effective at the end of the 150-day period beginning on 

7 the date of the enactment of this Act, section 16 of the 

8 Federal Reserve Act is amended by striking the 8th, 9th, 

9 10th, 11th, and 12th undesignated paragraphs (12 U.S.C. 

10 418, 419, 420, 421, and omitted, respectively). 

11 SEC. 402. REPLACING FRACTIONAL RESERVE BANKING 

12 WITH THE LENDING OF UNITED STATES 

13 MONEY. 

14 (a) CONVERSION PROCESS.— 

15 (1) DEPOSITS.— 

16 (A) IN GENERAL.—All deposits at any de17 pository institution shall be designated as and 

18 treated as United States Money (either cash or 

19 an electronic equivalent) and as transaction ac20 counts. 

21 (B) PROHIBITIONS.—In addition to sub22 section (d), the following provisions shall apply 

23 with respect to United States Money on deposit 

24 in a transaction account at any depository insti25 tution: 


tjames on DSK6SPTVN1PROD with BILLS
36 

•HR 2990 IH

1 (i) INTEREST.—No interest may be 

2 paid or may accrue on any United States 

3 Money on deposit in a transaction account 

4 at any depository institution. 

5 (ii) DEPOSITS AS BAILMENT.—Any 

6 United States Money on deposit in a trans7 action account at any depository institu8 tion shall— 

9 (I) be treated as a bailment for 

10 the mutual benefit of the parties and 

11 terminable at will; and 

12 (II) as property held in trust as 

13 bailed property, not be treated as an 

14 asset of the depository institution or 

15 as a source of credit. 

16 (C) EXCEPTION FOR LONG-TERM SAVINGS

17 NOT SUBJECT TO DEPOSIT INSURANCE.— 

18 (i) IN GENERAL.—Subparagraph (B) 

19 shall not apply to any liability of deposi20 tory institution to a customer for any 

21 amount in an account at the depository in22 stitution pursuant to a contract that re23 stricts the availability of any such amount 

24 for a fixed term and does not permit 


tjames on DSK6SPTVN1PROD with BILLS
37 

•HR 2990 IH

1 amounts to be transferred in any manner 

2 for the benefit of a third party. 

3 (ii) FIXED-TERM SAVINGS NOT IN4 SURED.—Any account described in clause 

5 (i) may not be treated as a deposit, for 

6 purposes of the Federal Deposit Insurance 

7 Act, or as a share draft account, for pur8 poses of the Federal Credit Union Act. 

9 (2) OUTSTANDING CREDIT.—Any asset of a de10 pository institution that results from credit extended 

11 against, is attributable to, or has been accounted for 

12 with respect to, amounts described in paragraph 

13 (1)(A) shall, as of the effective date— 

14 (A) be a liability of the depository institu15 tion to the Federal Government; and 

16 (B) as the outstanding balance is repaid 

17 pursuant to its terms, shall be paid over to the 

18 Federal Government. 

19 (3) DEPOSIT IN REVOLVING FUND.—The mon20 ies paid to the Federal Government shall be depos21 ited into the Revolving Account established in sec22 tion 403. 

23 (4) IN GENERAL.—Before the effective date and 

24 subject to the requirements of this section, the Mon25 etary Authority shall establish and publish the acVerDate Mar 15 2010 03:14 Sep 23, 2011 Jkt 099200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

tjames on DSK6SPTVN1PROD with BILLS
38 

•HR 2990 IH

1 counting rules, pricing, and processes which will con2 vert all bank credit in circulation as of the date of 

3 such conversion, into United States legal tender 

4 money. 

5 (5) RETENTION OF INTEREST PAYMENTS.—A 

6 depository institution may keep as income, any in7 terest payment made by a customer to a depository 

8 institution on an outstanding loan for which the de9 pository institution became indebted to the Federal 

10 Government under paragraph (2). 

11 (b) TREATMENT OF AMOUNTS ON RESERVE AT A

12 FEDERAL RESERVE BANK.—The Monetary Authority 

13 shall determine, by the effective date, how the reserves of 

14 a depository institution at a Federal reserve bank pursu15 ant to section 19 of the Federal Reserve Act shall be treat16 ed, so as to promote a seamless transition to the new sys17 tem. 

18 (c) ACCOUNTS IN GENERAL.—Before the effective 

19 date, the Monetary Authority shall prescribe new lending 

20 and accounting regulations for various types of accounts 

21 including transaction accounts and time deposit accounts 

22 described in subsections (d) and (e). 

23 (d) TRANSACTION ACCOUNTS.— 


tjames on DSK6SPTVN1PROD with BILLS
39 

•HR 2990 IH

1 (1) FRACTIONAL RESERVE BANKING ENDED.— 

2 The regulations prescribed under subsection (c) shall 

3 provide that— 

4 (A) any depository institution shall have a 

5 fiduciary responsibility for the money of any de6 positor on deposit in a transaction account 

7 which— 

8 (i) shall be held for the exclusive use 

9 of the account holder; and 

10 (ii) may not be used by a depository 

11 institution to fund loans or investments; 

12 (B) a dollar of United States Money shall 

13 be on hand or in a Federal Government account 

14 for each dollar in a transaction account; and 

15 (C) a depository institution may charge a 

16 reasonable fee for providing transaction account 

17 services. 

18 (2) TRANSACTION ACCOUNT DEFINED.—For 

19 purposes of this section, the term, ‘‘transaction ac20 count’’— 

21 (A) means a deposit or account on which 

22 the depositor or account holder is permitted to 

23 make withdrawals by negotiable or transferable 

24 instrument, payment orders of withdrawal, tele25 phone transfers, or other similar items for the 


tjames on DSK6SPTVN1PROD with BILLS
40 

•HR 2990 IH

1 purpose of making payments or transfers to 

2 third persons or others; and 

3 (B) includes demand deposits, negotiable 

4 order of withdrawal accounts, savings deposits 

5 subject to automatic transfers, and share draft 

6 accounts. 

7 (e) UNITED STATES MONEY AS SOURCE OF

8 LOANS.—After the effective date, all lending by depository 

9 institutions may be accomplished only by the lending of 

10 actual United States Money that is— 

11 (1) owned by the depository institution from 

12 earnings and or capital contributions by investors; 

13 (2) borrowed at interest from the Federal Gov14 ernment; or 

15 (3) borrowed at interest through the issuance of 

16 bonds or other interest-bearing securities by the 

17 lending bank, to the extent that such bonds or secu18 rities are structured in a manner consistent with the 

19 purposes of this Act. 

20 (f) ENCOURAGEMENT OF PRIVATE, PROFIT-MAKING

21 MONEY LENDING ACTIVITY.—The regulations prescribed 

22 and actions taken under this section shall be established 

23 and taken in a manner that— 

24 (1) encourages private, profit-making money 

25 lending activity by banking institutions; and 


tjames on DSK6SPTVN1PROD with BILLS
41 

•HR 2990 IH

1 (2) prohibits the creation of private money 

2 through the establishment of lending credit against 

3 depository receipts, sometimes referred to as ‘‘frac4 tional reserve banking’’. 

5 SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND. 

6 (a) REVOLVING LOAN FUND.—Subject to provision 

7 in advance in an appropriation Act, there is hereby estab8 lished a revolving loan fund in the Treasury of the United 

9 States where amounts received from depository institu10 tions under terms specified in section 402 of this Act shall 

11 be deposited and made available for relending to banking 

12 institutions and for other purposes. 

13 (b) ADMINISTRATION.—The Revolving Fund shall be 

14 administered by the Bureau under such terms and condi15 tions as the Secretary shall prescribe consistent with the 

16 purposes of this Act. 

17 (c) NATIONAL EMERGENCY.—In the event of a find18 ing by the President that a National Emergency exists, 

19 and with the concurrence of the Congress in accordance 

20 with the emergency procedures specified under section 

21 305, the Secretary, on the advice of the Monetary Author22 ity, may draw upon up to 80 percent of the funds on de23 posit in the Revolving Fund. Such funds shall be returned 

24 to the Revolving Fund within 3 years of the date of initial 

25 disbursement, either through repayment of loans or 


tjames on DSK6SPTVN1PROD with BILLS
42 

•HR 2990 IH

1 through an Appropriation Act, unless the Secretary re2 ceives from the Congress specific authorization to extend 

3 the term of the loans. The authorization of Congress shall 

4 be given by joint resolution. 

5 TITLE V—ADDITIONAL 

6 PROVISIONS 

7 SEC. 501. DIRECT FUNDING OF INFRASTRUCTURE IM8 PROVEMENTS. 

9 (a) REPORT REQUIRED ON OPPORTUNITIES FOR DI10 RECT FUNDING.—Before the effective date, the Secretary, 

11 after consultation with the heads of Executive branch de12 partments, agencies and independent establishments, shall 

13 report to the Congress on opportunities to utilize direct 

14 funding by the United States Government to modernize, 

15 improve, and upgrade the physical economy of the United 

16 States in such areas as transportation, agriculture, water 

17 usage and availability, sewage systems, medical care, edu18 cation, and other infrastructure systems, to promote the 

19 general welfare, and to stabilize the Social Security retire20 ment system. 

21 (b) BROAD EQUITABLE DISPERSION OF FUNDING.— 

22 Generally, any program recommended for direct funding 

23 shall be undertaken throughout the Nation based on per 

24 capita amounts and other criteria to assure equity as de25 termined by the Monetary Authority. 


tjames on DSK6SPTVN1PROD with BILLS
43 

•HR 2990 IH

1 SEC. 502. INTEREST RATE CEILINGS. 

2 (a) LIMIT ON AMOUNT OF FINANCING FEES.—The 

3 total amount of interest charged by a financial institution 

4 on any extension of loans (other than a mortgage) to any 

5 individual borrower through amortization, including all 

6 fees and service charges, shall not exceed the total amount 

7 of the loan extended. 

8 (b) LIMIT ON RATE.—The annual percentage rate 

9 applicable to any loan of money may not exceed 8 percent 

10 on unpaid balances, inclusive of all charges. 

11 SEC. 503. AUTHORITY OF FDIC. 

12 Except as provided in section 402 and the amend13 ment made by section 3(b), no provision of this Act shall 

14 be construed as altering or affecting any authority or func15 tion of the Federal Deposit Insurance Corporation. No 

16 later than 12 months after the date of the enactment of 

17 this Act, the Chairperson of the Board of Directors of the 

18 Federal Deposit Insurance Corporation shall study and 

19 make recommendations to the Congress regarding any 

20 changes in authorities, including expanded supervision and 

21 monitoring, required to enhance the oversight and regu22 latory roles of the Federal Deposit Insurance Corporation 

23 under this Act. 

24 SEC. 504. MONETARY GRANTS TO STATES. 

25 (a) IN GENERAL.—Each year, the Monetary Author26 ity shall instruct the Secretary to disperse grants over a 


tjames on DSK6SPTVN1PROD with BILLS
44 

•HR 2990 IH

1 12-month period to the States equal to 25 percent of the 

2 money created under this title in the prior year. In the 

3 first year the amount of such grants shall be 25 percent 

4 of the anticipated money creation in that first year. 

5 (b) USE OF GRANTS FOR BROAD-BASED PUR6 POSES.—The States may use such funds in broadly des7 ignated areas of public infrastructure, education, health 

8 care and rehabilitation, pensions, and paying for unfunded 

9 Federal mandates. 

10 SEC. 505. EDUCATION FUNDING PROGRAM. 

11 Before the end of the 120-day period beginning on 

12 the date of the enactment of this Act, the Secretary, in 

13 cooperation with the Secretary of Education, shall provide 

14 recommendations to the Congress for a program to help 

15 fund our educational system that will put the United 

16 States on par with other highly developed nations, and to 

17 sufficiently provide for universal pre-kindergarten, fully 

18 funded State programs for elementary and secondary edu19 cation and universal college at every 2- and 4-year public 

20 institution of higher learning and create a learning envi21 ronment so that every child has an opportunity to reach 

22 their full educational potential. 

23 SEC. 506. SOCIAL SECURITY TRUST FUNDS. 

24 The Secretary in consultation with the Board of 

25 Trustees of the Federal Old-Age and Survivors Insurance 


tjames on DSK6SPTVN1PROD with BILLS
45 

•HR 2990 IH

1 and Federal Disability Insurance Trust Funds shall sub2 mit to the Monetary Authority any requests to cover im3 pending deficits in Social Security Trust Fund accounts. 

4 SEC. 507. INITIAL MONETARY DIVIDEND TO CITIZENS. 

5 (a) IN GENERAL.—Before the effective date, the Sec6 retary, in cooperation with the Monetary Authority, shall 

7 make recommendations to the Congress for payment of 

8 a Citizens Dividend as a tax-free grant to all United 

9 States citizens residing in the United States in order to 

10 provide liquidity to the banking system at the commence11 ment of this Act, before governmental infrastructure ex12 penditures have had a chance to work into circulation. 

13 (b) STUDY OF EFFECTS OF CITIZENS DIVIDEND.— 

14 The Secretary shall maintain a thorough study of the ef15 fects of the Citizens Dividend observing its effects on pro16 duction and consumption, prices, morale, and other eco17 nomic and fiscal factors. 

18 SEC. 508. UNIVERSAL HEALTH CARE FUNDING. 

19 The Congress shall be aware that funding through 

20 this Act is available for a universal health care plan as 

21 may be enacted by Congress. 

22 SEC. 509. RESOLVING THE MORTGAGE CRISIS. 

23 The Congress shall be aware that funding through 

24 this Act is available for Congressional enactments for re25 solving aspects of the mortgage crisis. 


tjames on DSK6SPTVN1PROD with BILLS
46 

•HR 2990 IH

1 SEC. 510. INTEREST FREE LENDING TO LOCAL GOVERN2 MENTAL BODIES. 

3 Before the end of the 180-day period beginning on 

4 the date of the enactment of this Act, the Secretary shall 

5 provide recommendations to the Congress for a program 

6 of interest-free lending of United States Money to State 

7 and local governmental entities, including school boards 

8 and emergency fire services for infrastructure improve9 ments under their control and within their jurisdictions, 

10 based on per capita amounts and other criteria to assure 

11 equity as determined by the Monetary Authority. 

Æ 


tjames on DSK6SPTVN1PROD with BILLS