H.R. 7498, Uplifting Our Local Communities Act
Summary
H.R. 7498, the Uplifting Our Local Communities Act, was introduced in the House of Representatives on July 6, 2020 by Ms. Tlaib and referred to the Committee on Financial Services. It amends the Federal Reserve Act so that, under unusual and exigent circumstances, Federal reserve banks may buy bills, notes, revenue bonds and warrants issued by a State, county, municipality or other listed entity. The Board of Governors would modify the Municipal Liquidity Facility to operate until December 31, 2021, allow maximum maturity of 10 years, and remove the attestation of inability to secure credit elsewhere. The bill also directs support for long-term municipal borrowing markets from unobligated CARES Act amounts.
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Cite this document
“H.R. 7498, Uplifting Our Local Communities Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr7498ih-bills-116hr7498ih/
, SHA-256 82c795cc8ca221a7144affa07d8aad2af35cdb1492e19277a71f7edef703cf37.Full text
I
116TH CONGRESS
2D SESSION
H. R. 7498
To authorize Federal reserve banks to purchase COVID–19 related municipal
issuances, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 6, 2020
Ms. TLAIB 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.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Uplifting Our Local
5 Communities Act’’.
6 SEC. 2. EMERGENCY RELIEF FOR STATE, TERRITORIAL,
7 TRIBAL, AND LOCAL GOVERNMENTS.
8 (a) PURCHASE OF COVID–19 RELATED MUNICIPAL
9 ISSUANCES.—
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1 (1) AMENDMENT TO AUTHORITY TO BUY AND
2 SELL BONDS AND NOTES.—Section 14(b) of the
3 Federal Reserve Act (12 U.S.C. 355) is amended by
4 adding at the end the following new paragraph:
5 ‘‘(3) UNUSUAL AND EXIGENT CIRCUMSTANCES.—
6 Under unusual and exigent circumstances, to buy any
7 bills, notes, revenue bonds, and warrants issued by any
8 State, county, district, political subdivision, municipality,
9 or entity that is a combination of any of the several States,
10 the District of Columbia, or any of the territories and pos-
11 sessions of the United States. In this paragraph, the term
12 ‘State’ means each of the several States, the District of
13 Columbia, each territory and possession of the United
14 States, and each federally recognized Indian Tribe.’’.
15 (2) FEDERAL RESERVE AUTHORIZATION TO
16 PURCHASE COVID–19 RELATED MUNICIPAL
17 ISSUANCES.—
18 (A) AUTHORITY.—Within 7 days after the
19 date of the enactment of this subsection, the
20 Board of Governors of the Federal Reserve Sys-
21 tem shall modify the Municipal Liquidity Facil-
22 ity (established on April 9, 2020, pursuant to
23 section 13(3) of the Federal Reserve Act (12
24 U.S.C. 343(3))) to—
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1 (i) ensure such facility is operational
2 until December 31, 2021;
3 (ii) allow for the purchase of bills,
4 notes, bonds, and warrants with maximum
5 maturity of 10 years from the date of such
6 purchase;
7 (iii) ensure that any purchases made
8 are at an interest rate equal to the dis-
9 count window primary credit interest rate
10 most recently published on the Federal Re-
11 serve Statistical Release on selected inter-
12 est rates (daily or weekly), commonly re-
13 ferred to as the ‘‘H.15 release’’ or the
14 ‘‘Federal funds rate’’;
15 (iv) ensure that an eligible issuer does
16 not need to attest to an inability to secure
17 credit elsewhere; and
18 (v) include in the list of eligible
19 issuers for such purchases—
20 (I) any of the territories and pos-
21 sessions of the United States;
22 (II) a political subdivision of a
23 State with a population of more than
24 50,000 residents; and
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1 (III) an entity that is a combina-
2 tion of any of the several States, the
3 District of Columbia, or any of the
4 territories and possessions of the
5 United States.
6 (b) ESTABLISHMENT OF A LONG-TERM MUNICIPAL
7 BORROWING FACILITY.—
8 (1) IN GENERAL.—Of amounts appropriated
9 under section 4027(a) of the CARES Act (Public
10 Law 116–136) that remain unobligated or unex-
11 pended, the Board of Governors and the Secretary
12 of the Treasury shall provide support for long-term
13 municipal borrowing markets in addition to support
14 provided for such markets through the Municipal Li-
15 quidity Facility.
16 (2) GOAL.—The purpose of support for long-
17 term municipal borrowing markets shall be to ensure
18 that each State, county, district, political subdivi-
19 sion, or municipality in the United States can access
20 capital for long-term capital expenditures, infra-
21 structure projects, and other long-term general obli-
22 gations at low and stable prices for the entire dura-
23 tion of any economic disruption caused by the
24 COVID-19 pandemic.
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1 (c) APPLICABILITY OF THE LIMITATION ON LOAN
2 FORGIVENESS.—Section 4003(d)(3) of the CARES Act
3 (Public Law 116–136) is amended by striking ‘‘, State,
4 or municipality’’.
Æ
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