BILL TEXT: H.R. 1540

ESF Transparency and Accountability Act (Introduced in the House)

HR 1540 IH

To reform the Exchange Stabilization Fund.

To reform the Exchange Stabilization Fund.

     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 `ESF Transparency and Accountability Act'.

SEC. 2. REFORMS TO THE EXCHANGE STABILIZATION FUND.

     (a) TRANSPARENCY- Section 5302(c) of title 31, United States Code, is amended--

          (1) in paragraph (1)--

               (A) by striking `all agreements made or renewed' and inserting `the terms and conditions of all outstanding
               loans and guarantees and other actions taken, directly or indirectly, with respect to the assets or liabilities of
               the fund, a detailed description of all agreements made or renewed, directly or indirectly, during the month
               with respect to such assets or liabilities,'; and

               (B) by inserting `, a statement that contains a detailed accounting of any change in the balance in the fund or
               in any component of the fund since the giving of the most recent prior statement under this subsection, and an
               explanation of any such change, and a description of any material that will be redacted in the public report of
               such statements under paragraph (2)' before the period; and

          (2) in paragraph (2), by inserting `, and shall take such steps as may be necessary to make the contents of such
          report (with redactions of any material the disclosure of which would disrupt markets or damage national security
          interests of the United States) readily available to the public' before the period.

     (b) PRESIDENTIAL CERTIFICATION REQUIRED FOR USE OF $1 BILLION OR MORE; WAIVER
     AUTHORITY- Section 5302 of such title is amended by adding at the end the following:

     `(e)(1) Notwithstanding any other provision of this section, the Secretary of the Treasury may not make any expenditure or
     loan, incur any other obligation, or make any guarantee through the stabilization fund involving $1,000,000,000 or more,
     unless the Congress has, by joint resolution, approved the expenditure, loan, obligation, or guarantee.

     `(2)(A) Paragraph (1) shall not apply to an expenditure, loan, obligation, or guarantee if there is in effect a certification
     under subparagraph (B) with respect to the expenditure, loan, obligation, or guarantee.

     `(B) A certification under this subparagraph with respect to an expenditure, a loan, an obligation, or a guarantee is a written
     certification by the President to the Committee on Banking and Financial Services of the House of Representatives and the
     Committee on Banking, Housing, and Urban Affairs of the Senate that the making of the expenditure or loan, the incurring
     of the obligation, or the making of the guarantee is necessary to address a financial crisis that poses a serious threat to the
     international financial system.

     `(C) A certification under subparagraph (B) shall take effect 30 days after it is made, unless there is earlier enacted a joint
     resolution which provides that the certification shall have no force or effect.'

     (c) ELIMINATION OF AUTHORITY TO MONETIZE SPECIAL DRAWING RIGHTS- Section 4 of the Special
     Drawing Rights Act (22 U.S.C. 286p) is amended by striking `(a)' and all that follows through `(b)'.

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