[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7579 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7579
To amend the Federal Reserve Act to require the Board of Governors of
the Federal Reserve System to establish goals for the use of diverse
investment advisers, brokers, and dealers in investment management
agreements related to the Board of Governors unusual and exigent
circumstances authority, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2024
Mrs. Beatty introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Reserve Act to require the Board of Governors of
the Federal Reserve System to establish goals for the use of diverse
investment advisers, brokers, and dealers in investment management
agreements related to the Board of Governors unusual and exigent
circumstances authority, 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 Lending Diversity Act of
2024''.
SEC. 2. REQUIREMENTS FOR INVESTMENT MANAGEMENT AGREEMENTS.
Section 13(3) of the Federal Reserve Act (12 U.S.C. 347d(3)) is
amended by adding at the end the following:
``(F) Requirements for investment management
agreements.--
``(i) In general.--With respect to any
investment management agreement entered into by
the Board of Governors of the Federal Reserve
System with respect to any program or facility
established under this paragraph, the Board of
Governors shall set goals in such agreement
that require investment managers, to the
maximum extent possible, to utilize--
``(I) investment advisers and sub-
advisers that are diverse individual-
owned and controlled firms as
intermediaries; and
``(II) brokers and dealers that are
diverse individual-owned and controlled
firms.
``(ii) Report.--The Board of Governors
shall include, in the report required under
subparagraph (C), a description of goals set
pursuant to clause (i).
``(iii) Definitions.--For the purposes of
this subparagraph:
``(I) Affiliated person.--The term
`affiliated person' has the meaning
given that term under section 2(a) of
the Investment Company Act of 1940.
``(II) Broker.--The term `broker'
has the meaning given that term under
section 3 of the Securities Exchange
Act of 1934.
``(III) Dealer.--The term `dealer'
has the meaning given that term under
section 3 of the Securities Exchange
Act of 1934.
``(IV) Diverse individual-owned and
controlled firm.--The term `diverse
individual-owned and controlled firm'
means a firm--
``(aa) which is at least 51
percent owned by one or more
individuals who are women,
minorities, or veterans; or
``(bb) whose management and
daily business operations are--
``(AA) in the case
of a firm the shares of
which are traded on a
national securities
exchange, controlled by
a board with a majority
of members who are
women, minorities, or
veterans; and
``(BB) in the case
of any other firm, at
least 51 percent
controlled by one or
more individuals who
are women, minorities,
or veterans.
``(V) Investment adviser.--The term
`investment adviser' has the meaning
given the term in section 202(a)(11) of
the Investment Advisers Act of 1940.
``(VI) Minority.--The term
`minority' has the meaning given the
term in section 308(b) of the Financial
Institutions Reform, Recovery, and
Enforcement Act of 1989 and also
includes any indigenous person in the
United States or its territories.
``(VII) Veteran.--The term
`veteran' has the meaning given the
term in section 101 of title 38, United
States Code.''.
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