[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9040 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9040
To require covered agencies to issue strategy and implementation plans
for the transfer of credit, guarantee, and insurance risk to the
private sector, to require the implementation of such plans, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 15, 2024
Mr. Donalds (for himself and Mr. Krishnamoorthi) introduced the
following bill; which was referred to the Committee on Oversight and
Accountability
_______________________________________________________________________
A BILL
To require covered agencies to issue strategy and implementation plans
for the transfer of credit, guarantee, and insurance risk to the
private sector, to require the implementation of such plans, 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. TRANSFER OF GOVERNMENT CREDIT, GUARANTEE, AND INSURANCE RISK
TO THE PRIVATE SECTOR.
(a) Government Risk Management Policy Statement.--
(1) Minimization of government risk.--It is the policy of
the United States to assess, reduce and minimize the credit,
guarantee, and insurance risk of Federal Government programs in
each agency on an ongoing basis to the maximum extent practical
by transferring all such risk to the private sector at market
terms through a variety of financial instruments in a sustained
and transparent manner.
(2) Use of private risk capacity.--In the development and
administration of Federal Government programs and awards in
each agency, it is the policy of the United States to reduce
costs to taxpayers and to protect taxpayers against
catastrophic losses through prudent and established risk
management techniques, including the frequent assessment of
Federal credit, guarantee and insurance risks, and where
appropriate, the transfer of risk to private markets to the
maximum extent practical.
(b) Strategy and Implementation Plan.--
(1) In general.--Not later than 12 months after the date of
the enactment of this Act, and not less frequently than once
every 5 years thereafter, the head of each covered agency shall
submit to the Director of the Office of Management and Budget,
and publish in the Federal Register, a strategy and
implementation plan that includes the following:
(A) An identification of any barrier (including any
policy, law, or regulation)--
(i) to transferring credit, guarantee, and
insurance risk of the covered agency to the
private sector; and
(ii) that would prohibit the covered agency
from paying any costs associated with such
transfer.
(B) An implementation plan for addressing any such
barrier or, in the case of a Federal statute that is a
barrier, a legislative recommendation to Congress for
removing the barrier.
(C) An identification of each office or division
within the covered agency principally responsible for
programs under which the covered agency has credit,
guarantee, or insurance risk.
(D) An analysis of the use and development of
private sector capabilities to development and
administer programs under which the covered agency has
credit, guarantee, or insurance risk.
(E) The estimated cost or savings of transferring
credit, guarantee, and insurance risk of the covered
agency to the private sector, including the expected
annual cost or savings--
(i) during a normal year;
(ii) during a year where the losses due to
defaults on such credit, guarantee, or
insurance are lower than normal; and
(iii) during a year where the losses due to
defaults on such credit, guarantee, or
insurance are higher than normal.
(2) Public comment.--The head of each covered agency shall
provide a 60-day period for public comment on any strategy and
implementation plan described in paragraph (1) before the date
on which the report is published in the Federal Register.
(c) Implementation.--
(1) In general.--The head of each covered agency may
implement a strategy and implementation plan submitted under
subsection (b) to transfer credit, guarantee, and insurance
risk of the covered agency to the private sector.
(2) Requirements.--In any transfer described under
paragraph (1), the head of a covered agency shall make such
transfer--
(A) under market terms; and
(B) in a transparent manner.
(3) Prohibition on transfers that would increase certain
costs.--The head of a covered agency may not make a transfer
described under paragraph (1) if such transfer would directly
result in an increased fee, premium, or other cost to an
individual.
(d) Reports.--
(1) Reports by private sector entities to covered
agencies.--
(A) In general.--The head of each covered agency
shall require any private sector entity to which the
covered agency transfers credit, guarantee, or
insurance risk under subsection (c) to submit to the
covered agency a regular report that includes a
description of any claim received by the private sector
entity with respect to the transferred credit,
guarantee, or insurance risk, including any amount paid
for any such claim.
(B) Availability of report.--Each report described
under subparagraph (A) shall be made available, upon
request, to the Director of the Office of Management
and Budget and Congress.
(2) OMB report.--Not later than 18 months after the date of
the enactment of this Act, and not less frequently than once
every 5 years thereafter, the Director of the Office of
Management and Budget shall submit to the President and the
Congress a report containing the following:
(A) A list of credit, guarantee, and insurance
obligations under the management or control of each
covered agency.
(B) A list of each credit, guarantee, and insurance
risk transfer program for each covered agency, with a
summary of--
(i) the estimated savings to the Federal
Government related to loss claims associated
with the transferred credit, guarantee, or
insurance risk; and
(ii) the cost paid by the covered agency to
make such transfer.
(C) The current and aggregate totals of credit,
guarantee, and insurance risk transferred to the
private sector on and after the date of the enactment
of this Act.
(D) Any recommendations to enhance or expand the
programs described in subparagraph (B).
(e) Covered Agency Defined.--In this section, the term ``covered
agency''--
(1) means an agency (as defined under section 3502 of title
44, United States Code) that is responsible for the
administration of any credit, guarantee, or insurance program;
(2) means the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation during any period in
which such enterprise is under conservatorship or receivership
pursuant to section 1367 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617);
and
(3) does not include--
(A) the Social Security Administration; or
(B) the Centers for Medicare & Medicaid Services.
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