Title: Emergency Relief for State, Territorial and Local Governments Act of 2020
Policy area: Finance and Financial Sector

Summary:
Emergency Relief for State, Territorial and Local Governments Act of 2020
This bill requires the Federal Reserve Board to purchase municipal bonds issued in response to the COVID-19 (i.e., coronavirus disease 2019) emergency and otherwise modifies the terms under which the board may generally purchase municipal bonds.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6328 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6328

    To authorize Federal reserve banks to purchase COVID-19 related 
              municipal issuances, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2020

   Ms. Tlaib (for herself, Ms. Pressley, Ms. Ocasio-Cortez, Mr. San 
 Nicolas, Ms. Norton, Ms. Jayapal, Mr. Raskin, Mr. Levin of Michigan, 
Mr. Garcia of Illinois, Mrs. Carolyn B. Maloney of New York, Ms. Omar, 
  Mr. Green of Texas, Mr. Carson of Indiana, Mrs. Watson Coleman, Mr. 
   Pocan, Ms. Velazquez, Mr. Neguse, Mr. Soto, Mr. Danny K. Davis of 
 Illinois, Mr. Rouda, Mr. Nadler, Ms. Adams, Ms. Garcia of Texas, and 
 Ms. Haaland) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To authorize Federal reserve banks to purchase COVID-19 related 
              municipal issuances, and for other purposes.

    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 ``Emergency Relief for State, 
Territorial and Local Governments Act of 2020''.

SEC. 2. PURCHASE OF COVID-19 RELATED MUNICIPAL ISSUANCES.

    (a) Amendment to Authority To Buy and Sell Bonds and Notes.--
Section 14(b) of the Federal Reserve Act (12 U.S.C. 355) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and during unusual and exigent 
                circumstances,'' before ``bonds issued''; and
                    (B) by striking ``of 1933'' and all that follows 
                through ``assured revenues''; and
            (2) by adding at the end the following:
            ``(3) State defined.--In this section, the term `State' 
        means each of the several States, the District of Columbia, 
        each territory and possession of the United States, and each 
        federally recognized Indian Tribe.''.
    (b) Federal Reserve Authorization To Purchase COVID-19 Related 
Municipal Issuances.--
            (1) Authority.--Within seven days after the date of 
        enactment of this subsection, the Federal Reserve Board of 
        Governors shall establish a facility to buy and sell, at home 
        or abroad, bills, notes, bonds, and warrants that are issued by 
        any State or political subdivision thereof between March 1, 
        2020, and July 1, 2021, in order to fund a public health or 
        public service response to the COVID-19 pandemic. The Board of 
        Governors of the Federal Reserve System may extend the 
        authority under this subsection if the Board determines 
        necessary.
            (2) Required purchases.--The Board of Governors of the 
        Federal Reserve System shall establish policies and procedures 
        to require the direct placement of bills, notes, bonds, and 
        warrants described in paragraph (1) with the Board at an 
        interest cost that does not exceed the Federal funds rate 
        target for short-term interbank lending, within seven days 
        after the date of enactment of this section.
            (3) Review of spending.--During the 3-year period beginning 
        on the date on which all purchases under this section are 
        completed, relevant Federal authorities shall review such 
        purchases to determine if funds were diverted from legitimate 
        public health or public services responses to the COVID-19 
        pandemic to make such purchase. The relevant Federal 
        authorities shall take appropriate action based on findings of 
        such review.
            (4) Definitions.--In this subsection:
                    (A) Public health or public service response to the 
                covid-19 pandemic.--The term ``public health or public 
                service response to the COVID-19 pandemic'' means--
                            (i) the purchase, manufacture, or delivery 
                        of medical equipment, facilities, or services--
                                    (I) to treat or quarantine COVID-19 
                                patients;
                                    (II) to protect first responders 
                                interacting with such patients; or
                                    (III) to test for COVID-19 
                                infections and track social contacts of 
                                patients who have tested positive for 
                                the virus;
                            (ii) the purchase, manufacture, or delivery 
                        of basic living supports for individuals who 
                        are not COVID-19 patients during periods of 
                        voluntary or mandatory social distancing or 
                        quarantine designed to prevent the spread of 
                        COVID-19; or
                            (iii) the maintenance and delivery of basic 
                        public services to communities responding to 
                        the public health or economic effects of the 
                        COVID-19 pandemic.
                    (B) State.--The term ``State'' means each of the 
                several States, the District of Columbia, each 
                territory and possession of the United States, and each 
                federally recognized Indian Tribe.
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