I

103D CONGRESS

1ST SESSION H. R. 2464

To repeal the exemption from disclosure requirements for municipal securities

and to promote full and adequate disclosure of political contributions

related to the underwriting of municipal securities by banks and securities firms.

IN THE HOUSE OF REPRESENTATIVES

JUNE 18, 1993

Mr. LEACH (for himself and Mr. GONZALEZ) introduced the following bill;

which was referred jointly to the Committees on Energy and Commerce

and Banking, Finance and Urban Affairs

A BILL

To repeal the exemption from disclosure requirements for

municipal securities and to promote full and adequate

disclosure of political contributions related to the underwriting of municipal securities by banks and securities

firms.

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 shall be cited as the ‘‘Municipal Securities

5 Reform Act of 1993’’.
2

•HR 2464 IH

1 SEC 2. GENERAL DISCLOSURE REQUIREMENTS FOR MU2 NICIPAL SECURITIES.

3 Subsection 15B(d) of the Securities Exchange Act of

4 1934 (15 U.S.C. 78o4(d)) is amended to read as follows:

5 ‘‘(d)(1) IN GENERAL.—Notwithstanding any other

6 provision of this Act and in addition to any other disclo7 sure requirements, the Commission shall, by rule or regu8 lation, require any person acting as underwriter, bond

9 counsel, broker or dealer for a new issuance of municipal

10 securities, or any affiliate of such person to file with the

11 Commission, prior to the sale of such securities, a disclo12 sure of political contributions as described in paragraph

13 (2).

14 ‘‘(2) DISCLOSURE OF POLITICAL CONTRIBUTIONS.—

15 For the purposes of compliance with paragraph (1), the

16 disclosure of political contributions by a person subject to

17 such paragraph shall include the itemization of any politi18 cal contributions, expenditures, payments or the provision

19 of other items or services of value that, either directly or

20 indirectly, are extended by such person, to or for the bene21 fit of the issuer, any elected official of the issuer, any em22 ployee of the issuer, any affiliate of such persons, or the

23 political party of any elected official of the issuer.

24 ‘‘(3) EXCEPTION.—This subsection shall not apply to

25 any underwriter, broker or dealer of municipal securities
3

•HR 2464 IH

1 subject to section 44 of the Federal Deposit Insurance

2 Act.’’.

3 SEC 3. DISCLOSURE OF POLITICAL CONTRIBUTIONS RE4 LATED TO BANK MUNICIPAL SECURITIES AC5 TIVITIES.

6 (a) The Federal Deposit Insurance Act (12 U.S.C.

7 1811 et seq. is amended by adding at the end the following

8 new section:

9 ‘‘SEC 44. POLITICAL CONTRIBUTIONS RELATED TO MUNICI10 PAL SECURITIES ACTIVITIES.

11 ‘‘(a)(1) IN GENERAL.—Notwithstanding any other

12 provision of law and in addition to any other disclosure

13 requirements, the appropriate Federal banking agencies

14 shall, by rule or regulation, require any insured depository

15 institution or affiliate acting as underwriter, broker or

16 dealer for a new issuance of municipal securities, or any

17 affiliate of such person, to file with the appropriate Fed18 eral banking agency, prior to the sale of the securities,

19 a disclosure of political contributions as described in para20 graph (2).

21 ‘‘(2) DISCLOSURE OF POLITICAL CONTRIBUTIONS.—

22 For the purposes of compliance with paragraph (1), the

23 disclosure of political contributions by a person subject to

24 such paragraph shall include the itemization of any politi25 cal contributions, expenditures, payments or the provision
4

•HR 2464 IH

1 of other items or services of value that, either directly or

2 indirectly, are extended by such persons, to or for the ben3 efit of the issuer, any elected official of the issuer, any

4 employee of the issuer, any affiliate of such persons, or

5 the political party of any elected official of the issuer.

6 ‘‘(b) REGULATIONS.—In carrying out their respon7 sibilities under this section, the appropriate Federal bank8 ing agencies shall issue substantially similar regulations

9 to regulations and rules issued by the Securities Exchange

10 Commission, unless such agencies find that implementa11 tion of substantially similar regulations with respect to in12 sured depository institutions are not necessary or appro13 priate in the public interest or for the protection of inves14 tors, and publish such findings, and the detailed reasons

15 therefor, in the Federal Register.’’.

16 SEC 5. EFFECTIVE DATE.

17 The amendments made by this Act and any rules or

18 regulations required thereunder, shall become effective not

19 later than one hundred and eighty days after the date of

20 enactment.

Æ