instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Residential Energy Savings Act of 
2013''.

SEC. 2. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES LOAN 
              PILOT PROGRAM.

    (a) Loans for Residential Building Energy Efficiency Upgrades.--
Part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.) is amended by adding at the end the following:

``SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES.

    ``(a) Definitions.--In this section:
            ``(1) Consumer-friendly loan repayment approach.--The term 
        `consumer-friendly loan repayment approach' means a loan 
        repayment method that--
                    ``(A) emphasizes convenience for customers;
                    ``(B) is of low cost to consumers; and
                    ``(C) may tie loan repayment to an existing bill of 
                the consumer.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State or territory of the United States; 
                and
                    ``(B) an Indian tribal government.
            ``(3) Energy advisor program.--
                    ``(A) In general.--The term `energy advisor 
                program' means any program to provide to homeowners or 
                residents advice, information, and support in the 
                identification, prioritization, and implementation of 
                energy efficiency and energy savings measures.
                    ``(B) Inclusions.--The term `energy advisor 
                program' includes a program that provides--
                            ``(i) interpretation of energy audit 
                        reports;
                            ``(ii) assistance in the prioritization of 
                        improvements;
                            ``(iii) assistance in finding qualified 
                        contractors;
                            ``(iv) assistance in contractor bid 
                        reviews;
                            ``(v) education on energy conservation, 
                        renewable energy, and energy efficiency;
                            ``(vi) explanations of available incentives 
                        and tax credits;
                            ``(vii) assistance in completion of rebate 
                        and incentive paperwork; and
                            ``(viii) any other similar type of support.
            ``(4) Energy efficiency.--The term `energy efficiency' 
        means a reduction in energy use, including thermal energy for 
        heating.
            ``(5) Energy efficiency upgrade.--
                    ``(A) In general.--The term `energy efficiency 
                upgrade' means any project or activity carried out on a 
                residential building to increase energy efficiency.
                    ``(B) Inclusions.--The term `energy efficiency 
                upgrade' includes the installation or improvement of 
                renewable energy for heating or electricity generation 
                serving a residential building carried out in 
                conjunction with an energy efficiency project or 
                activity.
            ``(6) Residential building.--
                    ``(A) In general.--The term `residential building' 
                means a building used for residential purposes.
                    ``(B) Inclusions.--The term `residential building' 
                includes--
                            ``(i) a single-family residence;
                            ``(ii) a multifamily residence composed not 
                        more than 4 units; and
                            ``(iii) a mixed-use building that includes 
                        not more than 4 residential units.
    ``(b) Establishment of Program.--
            ``(1) In general.--The Secretary shall establish a program 
        under this part under which the Secretary shall make available 
        to eligible entities loans for the purpose of establishing or 
        expanding programs that provide to residential property owners 
        or tenants financing for energy efficiency upgrades of 
        residential buildings.
            ``(2) No requirement to participate.--No eligible entity 
        shall be required to participate in any manner in the program 
        established under paragraph (1).
    ``(c) Applications.--
            ``(1) In general.--To be eligible to receive a loan under 
        this section, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(2) Selection.--In selecting eligible entities to receive 
        loans under this section, the Secretary shall--
                    ``(A) to the maximum extent practicable, ensure--
                            ``(i) that both innovative and established 
                        approaches to the challenges of financing 
                        energy efficiency upgrades are supported;
                            ``(ii) regional diversity among recipients, 
                        including participation by rural States and 
                        small States; and
                            ``(iii) significant participation by low- 
                        and medium-income families;
                    ``(B) evaluate applications based primarily on--
                            ``(i) the projected reduction in energy 
                        use;
                            ``(ii) the extent to which Federal funds 
                        are used to leverage additional funding from 
                        State, local, philanthropic, private sector, 
                        and other sources;
                            ``(iii) the creditworthiness of the 
                        eligible entity; and
                            ``(iv) the incorporation of measures, such 
                        as on-bill repayment, for making the loan 
                        repayment system for recipients of financing as 
                        consumer-friendly as practicable; and
                    ``(C) evaluate applications based secondarily on--
                            ``(i) the extent to which the proposed 
                        financing program of the eligible entity 
                        incorporates best practices for such a program, 
                        as determined by the Secretary;
                            ``(ii) whether the eligible entity has 
                        created a plan for evaluating the effectiveness 
                        of the proposed financing program;
                            ``(iii) the extent to which the proposed 
                        financing program incorporates energy advisor 
                        programs and support programs designed to 
                        increase the effectiveness of the program;
                            ``(iv) the projected quantity of renewable 
                        energy to be generated, to the extent that 
                        renewable energy generation will be included;
                            ``(v) the extent to which the proposed 
                        financing program will be coordinated and 
                        marketed with other existing or planned energy 
                        efficiency programs administered by--
                                    ``(I) utilities;
                                    ``(II) State, tribal, territorial, 
                                or local governments; or
                                    ``(III) community development 
                                financial institutions; and
                            ``(vi) such other factors as the Secretary 
                        determines to be appropriate.
    ``(d) Term; Interest.--
            ``(1) In general.--The Secretary shall establish terms and 
        interest rates for loans provided to eligible entities under 
        this section in a manner that--
                    ``(A) provides for a high degree of cost recovery; 
                and
                    ``(B) ensures that the loans are competitive with, 
                or superior to, other forms of financing for similar 
                purposes.
            ``(2) Performance incentive.--The Secretary shall establish 
        a performance incentive providing a repayment discount for 
        eligible entities in an amount equal to not more than the value 
        of the interest accrued on the loan provided to the applicable 
        eligible entity under this section, based on performance as 
        evaluated in accordance with the factors described in 
        subparagraphs (B) and (C) of subsection (c)(2).
    ``(e) Use of Funds.--
            ``(1) In general.--An eligible entity shall use a loan 
        provided under this section to establish or expand a financing 
        program--
                    ``(A) the purpose of which is to enable residential 
                building owners or tenants to conduct energy efficiency 
                upgrades of residential buildings;
                    ``(B) that may not require any initial capital, 
                excluding fees; and
                    ``(C) that incorporates a consumer-friendly loan 
                repayment approach.
            ``(2) Structure of financing program.--The financing 
        program of an eligible entity may--
                    ``(A) consist--
                            ``(i) primarily or entirely of a financing 
                        program administered by--
                                    ``(I) the applicable State; or
                                    ``(II) a local government, utility, 
                                or other entity; or
                            ``(ii) of a combination of programs 
                        described in clause (i); and
                    ``(B) rely on financing provided by--
                            ``(i) the eligible entity; or
                            ``(ii) a third party, acting through the 
                        eligible entity.
            ``(3) Form of assistance.--Assistance provided by an 
        eligible entity under this subsection may be in the form of--
                    ``(A) a revolving loan fund;
                    ``(B) a credit enhancement structure designed to 
                mitigate the effects of default; or
                    ``(C) a program that--
                            ``(i) adopts any other approach for 
                        providing financing for energy efficiency 
                        upgrades producing significant energy 
                        efficiency gains;
                            ``(ii) produces a high-leverage ratio of 
                        non-Federal funds; and
                            ``(iii) incorporates measures for making 
                        the loan repayment system for recipients of 
                        financing as consumer-friendly as practicable.
            ``(4) Scope of assistance.--Assistance provided by an 
        eligible entity under this subsection may be used to pay for 
        costs associated with carrying out an energy efficiency 
        upgrade, including materials and labor.
    ``(f) Repayment.--An eligible entity shall repay to the Secretary 
the amount of a loan provided under this section, together with--
            ``(1) interest accrued on that amount; and
            ``(2) such fees as the Secretary determines to be necessary 
        to recover any portion of the costs of the program under this 
        section.
    ``(g) Reports.--
            ``(1) Eligible entities.--
                    ``(A) In general.--Not later than 2 years after the 
                date of receipt of the loan, and annually thereafter 
                for the term of the loan, an eligible entity that 
                receives a loan under this section shall submit to the 
                Secretary a report describing the performance of each 
                program and activity carried out using the loan, 
                including anonymized loan performance data.
                    ``(B) Requirements.--The Secretary, in consultation 
                with eligible entities and other stakeholders (such as 
                lending institutions and the real estate industry), 
                shall establish such requirements for the reports under 
                this paragraph as the Secretary determines to be 
                appropriate--
                            ``(i) to ensure that the reports are clear, 
                        consistent, and straightforward; and
                            ``(ii) taking into account the reporting 
                        requirements for similar programs in which the 
                        eligible entities are participating, if any.
            ``(2) Secretary.--The Secretary shall submit to Congress 
        and make available to the public--
                    ``(A) not less frequently than once each year, a 
                report describing the performance of the program under 
                this section, including a synthesis and analysis of the 
                information provided in the reports submitted to the 
                Secretary under paragraph (1)(A); and
                    ``(B) on termination of the program under this 
                section, an assessment of the success of, and education 
                provided by, the measures carried out by eligible 
                entities during the term of the program.
    ``(h) Maximum Amount.--The Secretary may provide to eligible 
entities a total of not more than $2,000,000,000 in loans under this 
section for the costs of activities described in subsection (e).''.
    (b) Reorganization.--
            (1) In general.--Part D of title III of the Energy Policy 
        and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
                    (A) by redesignating sections 362, 363, 364, 365, 
                and 366 as sections 364, 365, 366, 363, and 362, 
                respectively, and moving the sections so as to appear 
                in numerical order;
                    (B) in section 362 (as so redesignated)--
                            (i) in paragraph (3)(B)(i), by striking 
                        ``section 367, and'' and inserting ``section 
                        367 (as in effect on the day before the date of 
                        enactment of the State Energy Efficiency 
                        Programs Improvement Act of 1990 (42 U.S.C. 
                        6201 note; Public Law 101-440)); and''; and
                            (ii) in each of paragraphs (4) and (6), by 
                        striking ``section 365(e)(1)'' each place it 
                        appears and inserting ``section 363(e)(1)'';
                    (C) in section 363 (as so redesignated)--
                            (i) in subsection (b), by striking ``the 
                        provisions of sections 362 and 364 and 
                        subsection (a) of section 363'' and inserting 
                        ``sections 364, 365(a), and 366''; and
                            (ii) in subsection (g)(1)(A), in the second 
                        sentence, by striking ``section 362'' and 
                        inserting ``section 364''; and
                    (D) in section 365 (as so redesignated)--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), by striking 
                                ``section 362,'' and inserting 
                                ``section 364;''; and
                                    (II) in paragraph (2), by striking 
                                ``section 362(b) or (e)'' and inserting 
                                ``subsection (b) or (e) of section 
                                364''; and
                            (ii) in subsection (b)(2), in the matter 
                        preceding subparagraph (A), by striking 
                        ``section 362(b) or (e)'' and inserting 
                        ``subsection (b) or (e) of section 364''.
            (2) Conforming amendments.--Section 391 of the Energy 
        Policy and Conservation Act (42 U.S.C. 6371) is amended--
                    (A) in paragraph (2)(M), by striking ``section 
                365(e)(2)'' and inserting ``section 363(e)(2)''; and
                    (B) in paragraph (10), by striking ``section 362 of 
                this Act'' and inserting ``section 364''.
            (3) Clerical amendment.--The table of contents of the 
        Energy Policy and Conservation Act (42 U.S.C. 6201 note; Public 
        Law 94-163) is amended by striking the items relating to part D 
        of title III and inserting the following:

              ``Part D--State Energy Conservation Programs

``Sec. 361. Findings and purpose.
``Sec. 362. Definitions.
``Sec. 363. General provisions.
``Sec. 364. State energy conservation plans.
``Sec. 365. Federal assistance to States.
``Sec. 366. State energy efficiency goals.
``Sec. 367. Loans for residential building energy efficiency 
                            upgrades.''.

SEC. 3. FUNDING.

    (a) Budgetary Effects.--The budgetary effects of this Act, for the 
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for 
printing in the Congressional Record by the Chairman of the Senate 
Budget Committee, provided that such statement has been submitted prior 
to the vote on passage.
    (b) Advance Appropriations Required.--An authorization of 
appropriations under this Act or an amendment made by this Act shall be 
effective for a fiscal year only to the extent and in the amounts 
provided in advance in appropriations Acts.
answer:
Residential Energy Savings Act of 2013 - Amends the Energy Policy and Conservation Act to require the Secretary of Energy (DOE) to establish a voluntary loan program to provide support to states, U.S. territories, and Indian tribal governments (eligible entities) in establishing or expanding programs that provide to residential property owners or tenants financing for energy efficiency upgrades of residential buildings. Authorizes assistance provided by eligible entities to be in the form of a: (1) revolving loan fund; (2) credit enhancement structure designed to mitigate the effects of default; or (3) program that adopts other approaches for providing financing for upgrades producing significant energy efficiency gains, produces a high-leverage ratio of non-federal funds, and incorporates measures for making the loan repayment system for recipients of financing consumer-friendly. Requires the Secretary to establish a performance incentive providing a repayment discount in an amount equal to no more than the value of the interest accrued on the loan provided, based on performance as evaluated in accordance with specified factors. Makes an authorization of appropriations under this Act effective for a fiscal year only to the extent and in the amounts provided in advance in appropriations Acts.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Safety Officer Medal of Valor 
Act of 2001''.

SEC. 2. AUTHORIZATION OF MEDAL.

    After September 1, 2001, the President may award, and present in 
the name of Congress, a Medal of Valor of appropriate design, with 
ribbons and appurtenances, to a public safety officer who is cited by 
the Attorney General, upon the recommendation of the Medal of Valor 
Review Board, for extraordinary valor above and beyond the call of 
duty. The Public Safety Medal of Valor shall be the highest national 
award for valor by a public safety officer.

SEC. 3. MEDAL OF VALOR BOARD.

    (a) Establishment of Board.--There is established a Medal of Valor 
Review Board (hereinafter in this Act referred to as the ``Board''), 
which shall be composed of 11 members appointed in accordance with 
subsection (b) and shall conduct its business in accordance with this 
Act.
    (b) Membership.--
            (1) Members.--The members of the Board shall be individuals 
        with knowledge or expertise, whether by experience or training, 
        in the field of public safety, of which--
                    (A) two shall be appointed by the majority leader 
                of the Senate;
                    (B) two shall be appointed by the minority leader 
                of the Senate;
                    (C) two shall be appointed by the Speaker of the 
                House of Representatives;
                    (D) two shall be appointed by the minority leader 
                of the House of Representatives; and
                    (E) three shall be appointed by the President, 
                including one with experience in firefighting, one with 
                experience in law enforcement, and one with experience 
                in emergency services.
            (2) Term.--The term of a Board member shall be 4 years.
            (3) Vacancies.--Any vacancy in the membership of the Board 
        shall not affect the powers of the Board and shall be filled in 
        the same manner as the original appointment.
            (4) Operation of the board.--
                    (A) Chairman.--The Chairman of the Board shall be 
                elected by the members of the Board from among the 
                members of the Board.
                    (B) Meetings.--The Board shall conduct its first 
                meeting not later than 90 days after the appointment of 
                the last member appointed of the initial group of 
                members appointed to the Board. Thereafter, the Board 
                shall meet at the call of the Chairman of the Board. 
                The Board shall meet not less often than twice each 
                year.
                    (C) Voting and rules.--A majority of the members 
                shall constitute a quorum to conduct business, but the 
                Board may establish a lesser quorum for conducting 
                hearings scheduled by the Board. The Board may 
                establish by majority vote any other rules for the 
                conduct of the Board's business, if such rules are not 
                inconsistent with this Act or other applicable law.
    (c) Duties.--The Board shall select candidates as recipients of the 
Medal of Valor from among those applications received by the National 
Medal of Valor Office. Not more often than once each year, the Board 
shall present to the Attorney General the name or names of those it 
recommends as Medal of Valor recipients. In a given year, the Board 
shall not be required to select any recipients but may not select more 
than 5 recipients. The Attorney General may in extraordinary cases 
increase the number of recipients in a given year. The Board shall set 
an annual timetable for fulfilling its duties under this Act.
    (d) Hearings.--
            (1) In general.--The Board may hold such hearings, sit and 
        act at such times and places, administer such oaths, take such 
        testimony, and receive such evidence as the Board considers 
        advisable to carry out its duties.
            (2) Witness expenses.--Witnesses requested to appear before 
        the Board may be paid the same fees as are paid to witnesses 
        under section 1821 of title 28, United States Code. The per 
        diem and mileage allowances for witnesses shall be paid from 
        funds appropriated to the Board.
    (e) Information From Federal Agencies.--The Board may secure 
directly from any Federal department or agency such information as the 
Board considers necessary to carry out its duties. Upon the request of 
the Board, the head of such department or agency may furnish such 
information to the Board.
    (f) Information To Be Kept Confidential.--The Board shall not 
disclose any information which may compromise an ongoing law 
enforcement investigation or is otherwise required by law to be kept 
confidential.

SEC. 4. BOARD PERSONNEL MATTERS.

    (a) Compensation of Members.--(1) Except as provided in paragraph 
(2), each member of the Board shall be compensated at a rate equal to 
the daily equivalent of the annual rate of basic pay prescribed for 
level IV of the Executive Schedule under section 5315 of title 5, 
United States Code, for each day (including travel time) during which 
such member is engaged in the performance of the duties of the Board.
    (2) All members of the Board who serve as officers or employees of 
the United States, a State, or a local government, shall serve without 
compensation in addition to that received for those services.
    (b) Travel Expenses.--The members of the Board shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or regular 
places of business in the performance of service for the Board.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Public safety officer.--The term ``public safety 
        officer'' means a person serving a public agency, with or 
        without compensation, as a firefighter, law enforcement 
        officer, or emergency services officer, as determined by the 
        Attorney General. For the purposes of this paragraph, the term 
        ``law enforcement officer'' includes a person who is a 
        corrections or court officer or a civil defense officer.
            (2) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Attorney General 
such sums as may be necessary to carry out this Act.

SEC. 7. NATIONAL MEDAL OF VALOR OFFICE.

    There is established within the Department of Justice a National 
Medal of Valor Office. The Office shall provide staff support to the 
Board to establish criteria and procedures for the submission of 
recommendations of nominees for the Medal of Valor and for the final 
design of the Medal of Valor.

SEC. 8. CONFORMING REPEAL.

    Section 15 of the Federal Fire Prevention and Control Act of 1974 
(15 U.S.C. 2214) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection (a):
    ``(a) Establishment.--There is hereby established an honorary award 
for the recognition of outstanding and distinguished service by public 
safety officers to be known as the Director's Award For Distinguished 
Public Safety Service (`Director's Award').'';
            (2) in subsection (b)--
                    (A) by striking paragraph (1); and
                    (B) by striking ``(2)'';
            (3) by striking subsections (c) and (d) and redesignating 
        subsections (e), (f), and (g) as subsections (c), (d), and (e), 
        respectively; and
            (4) in subsection (c), as so redesignated--
                    (A) by striking paragraph (1); and
                    (B) by striking ``(2)''.

SEC. 9. CONSULTATION REQUIREMENT.

    The Board shall consult with the Institute of Heraldry within the 
Department of Defense regarding the design and artistry of the Medal of 
Valor. The Board may also consider suggestions received by the 
Department of Justice regarding the design of the medal, including 
those made by persons not employed by the Department.

            Passed the Senate May 14, 2001.

            Attest:

                                                             Secretary.
107th CONGRESS

  1st Session

                                 S. 39

_______________________________________________________________________

                                 AN ACT

  To provide a national medal for public safety officers who act with 
 extraordinary valor above and beyond the call of duty, and for other 
                               purposes.
answer:
Public Safety Officer Medal of Valor Act of 2001 - Allows the President to award, and present in the name of the Congress, a Medal of Valor to a public safety officer cited by the Attorney General, upon the recommendation of the Medal of Valor Review Board, for extraordinary valor above and beyond the call of duty. Provides that the Public Safety Medal of Valor shall be the highest national award for valor by a public safety officer.Establishes a Medal of Valor Review Board to select candidates to receive the Medal from among applications received by the National Medal of Valor Office. Requires the Board to consult with the Institute of Heraldry in the Department of Defense regarding the design of the Medal.Authorizes appropriations.Establishes within the Department of Justice a National Medal of Valor Office to provide staff support to the Board to establish criteria and procedures for the submission of nominee recommendations for the Medal and for the final design of the Medal.Amends the Fire Prevention and Control Act of 1974 to establish an honorary Director's (Director of the Federal Emergency Management Agency) Award for Distinguished Public Safety Service for the recognition of outstanding and distinguished service by public safety officers (repeals provisions regarding the President's Award for Outstanding Public Safety Service and the Secretary of Commerce's Award for Distinguished Public Safety Service).


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Equitable Treatment of Investors 
Act''.

SEC. 2. SECURITIES INVESTOR PROTECTION ACT OF 1970 AMENDMENTS.

    (a) Net Equity Based on Last Statement.--Section 16(11) of the 
Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(11)) is 
amended to read as follows:
            ``(11) Net equity.--
                    ``(A) In general.--The term `net equity' means the 
                dollar amount of the account or accounts of a customer, 
                to be determined by--
                            ``(i) calculating the sum which would have 
                        been owed by the debtor to such customer if the 
                        debtor had liquidated, by sale or purchase on 
                        the filing date--
                                    ``(I) all securities positions of 
                                such customer (other than customer name 
                                securities reclaimed by such customer); 
                                and
                                    ``(II) all positions in futures 
                                contracts and options on futures 
                                contracts held in a portfolio margining 
                                account carried as a securities account 
                                pursuant to a portfolio margining 
                                program approved by the Commission, 
                                including all property collateralizing 
                                such positions, to the extent that such 
                                property is not otherwise included 
                                herein; minus
                            ``(ii) any indebtedness of such customer to 
                        the debtor on the filing date; plus
                            ``(iii) any payment by such customer of 
                        such indebtedness to the debtor which is made 
                        with the approval of the trustee and within 
                        such period as the trustee may determine (but 
                        in no event more than sixty days after the 
                        publication of notice under section 8(a)).
                    ``(B) Treatment of certain commodity futures 
                contracts.--A claim for a commodity futures contract 
                received, acquired, or held in a portfolio margining 
                account pursuant to a portfolio margining program 
                approved by the Commission or a claim for a security 
                futures contract, shall be deemed to be a claim with 
                respect to such contract as of the filing date, and 
                such claim shall be treated as a claim for cash.
                    ``(C) Treatment of accounts held by a customer in 
                separate capacities.--In determining net equity under 
                this paragraph, accounts held by a customer in separate 
                capacities shall be deemed to be accounts of separate 
                customers.
                    ``(D) Reliance on final customer statement.--
                            ``(i) In general.--In determining net 
                        equity under this paragraph, the positions, 
                        options, and contracts of a customer held by 
                        the debtor, and any indebtedness of the 
                        customer to the debtor, shall be determined 
                        based on--
                                    ``(I) the information contained in 
                                the last statement received by the 
                                customer from the debtor before the 
                                filing date; and
                                    ``(II) any additional specific 
                                confirmations of the customer's 
                                positions, options, contracts, or 
                                indebtedness received after such last 
                                statement but before the filing date.
                            ``(ii) Fraud exception.--The provisions of 
                        this subparagraph shall not apply to any 
                        customer that--
                                    ``(I) knew the debtor was involved 
                                in fraudulent activity with respect to 
                                any customer of the debtor; or
                                    ``(II) was a person that--
                                            ``(aa) was, or was required 
                                        to be, registered with the 
                                        Securities and Exchange 
                                        Commission under the securities 
                                        laws (as such term is defined 
                                        under section 3(a) of the 
                                        Securities Exchange Act of 1934 
                                        (15 U.S.C. 78c(a)));
                                            ``(bb) knew, or should have 
                                        known, that the debtor was 
                                        involved in fraudulent activity 
                                        with respect to any customer of 
                                        the debtor; and
                                            ``(cc) did not notify SIPC, 
                                        the Commission, or law 
                                        enforcement personnel that the 
                                        debtor was involved in such 
                                        fraudulent activity.''.
    (b) Prohibition on Certain Recoveries.--Section 8 of the Securities 
Investor Protection Act of 1970 (15 U.S.C. 78fff-2) is amended by 
adding at the end the following new subsection:
    ``(g) Prohibition on Certain Recoveries.--Notwithstanding any other 
provision of this Act, a trustee may not recover any property 
transferred by the debtor to a customer before the filing date unless, 
at the time of such transfer, such customer--
            ``(1) knew the debtor was involved in fraudulent activity 
        with respect to any customer of the debtor; or
            ``(2) was a person that--
                    ``(A) was, or was required to be, registered with 
                the Securities and Exchange Commission under the 
                securities laws (as such term is defined under section 
                3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
                78c(a)));
                    ``(B) knew, or should have known, that the debtor 
                was involved in fraudulent activity with respect to any 
                customer of the debtor; and
                    ``(C) did not notify SIPC, the Commission, or law 
                enforcement personnel that the debtor was involved in 
                such fraudulent activity.''.
    (c) Appointment of Trustees.--
            (1) In general.--Section 5(b)(3) of the Securities Investor 
        Protection Act of 1970 (15 U.S.C. 78eee(b)(3)) is amended to 
        read as follows:
            ``(3) Appointment of trustee and attorney.--
                    ``(A) In general.--If the court issues a protective 
                decree under paragraph (1), such court shall forthwith 
                appoint, as trustee for the liquidation of the business 
                of the debtor and as attorney for the trustee, such 
                persons as the court determines best fit to serve as 
                trustee and as attorney from among the persons selected 
                by the Commission pursuant to subparagraph (B). The 
                persons appointed as trustee and as attorney for the 
                trustee may be associated with the same firm.
                    ``(B) Commission candidates.--With respect to a 
                debtor and upon the court issuing a protective decree 
                under paragraph (1), the Commission shall forthwith 
                provide the court with a list of candidates for the 
                position of trustee and attorney for the trustee for 
                such debtor.
                    ``(C) Disinterest requirement.--No person may be 
                appointed to serve as trustee or attorney for the 
                trustee if such person is not disinterested within the 
                meaning of paragraph (6), except that for any specified 
                purpose other than to represent a trustee in conducting 
                a liquidation proceeding, the trustee may, with the 
                approval of SIPC and the court, employ an attorney who 
                is not disinterested.
                    ``(D) Qualification.--A trustee appointed under 
                this paragraph shall qualify by filing a bond in the 
                manner prescribed by section 322 of title 11, United 
                States Code.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect with respect to trustees and attorneys 
        appointed after the date of the enactment of this Act.

SEC. 3. EFFECTIVE DATE.

    Except as provided under section 2(c)(2), the amendments made by 
section 2 shall take effect with respect to a liquidation proceeding 
under the Securities Investor Protection Act of 1970 that--
            (1) was in progress on the date of the enactment of this 
        Act; or
            (2) is initiated after the date of the enactment of this 
        Act.
answer:

Equitable Treatment of Investors Act - Amends the Securities Investor Protection Act of 1970 to revise the definition of "net equity."

Declares also that, in determining net equity, the positions, options, and contracts of a customer held by the debtor, and any indebtedness of the customer to the debtor, shall be determined based on: (1) the information contained in the last statement received by the customer from the debtor before the filing date; and (2) any additional specific confirmations of the customer's positions, options, contracts, or indebtedness received after such last statement but before the filing date.

Prohibits reliance on the final statement of the debtor to customer, however, if the customer: (1) knew the debtor was involved in fraudulent activity with respect to any of its customers; or (2) as a registrant under the securities laws, or a person required to be so registered, knew, or should have known, that the debtor was involved in such a fraudulent activity and did not notify the Securities Investor Protection Corporation (SIPC), the Securities Exchange Commission (SEC), or law enforcement personnel that the debtor was so involved.

Prohibits a trustee in a liquidation proceeding from recovering any property transferred by the debtor to a customer before the filing date unless, at the time of such transfer, the customer meets the same critieria.

Transfers from SIPC to the SEC authority to nominate to a court persons for appointment as trustee for the liquidation of a debtor's business and as attorney for the trustee.