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I
116TH CONGRESS
2D SESSION
H. R. 6339
To temporarily ban stock buybacks until the impact of COVID–19 on the
American financial system has ended.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 2020
Mr. CASTEN of Illinois introduced the following bill; which was referred to the
Committee on Financial Services
A BILL
To temporarily ban stock buybacks until the impact of
COVID–19 on the American financial system has ended.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. TEMPORARY BAN ON STOCK BUYBACKS.
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(a) IN GENERAL.—It shall be unlawful for any issuer,
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the securities of which are traded on a national securities
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exchange, to purchase securities of the issuer during the
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period beginning on the date of enactment of this Act and
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ending 120 days after the end of the COVID–19 emer-
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gency period.
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(b) EARLY TERMINATION.—The Securities and Ex-
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change Commission may terminate the prohibition under
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subsection (a) after the end of the COVID–19 emergency
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period and before the end of the 120-day period described
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under subsection (a), if—
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(1) the Commission determines such termi-
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nation is in the public interest; and
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(2) immediately notifies the Congress and the
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public of such determination and the reason for such
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determination, including on the website of the Com-
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mission.
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(c) ENFORCEMENT; RULEMAKING.—
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(1) IN
GENERAL.—The Securities and Ex-
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change Commission shall have the authority to en-
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force this Act and may issue such rules as may be
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necessary to carry out this Act.
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(2) COMMISSION VOTING.—Any action taken by
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the Commission pursuant to this section may only be
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taken upon a unanimous vote of the commissioners.
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(d) DEFINITIONS.—In this section:
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(1) COVID–19
EMERGENCY
PERIOD.—The
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term ‘‘COVID–19 emergency period’’ means the pe-
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riod that begins upon the date of the enactment of
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this Act and ends upon the date of the termination
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by the Federal Emergency Management Agency of
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the emergency declared on March 13, 2020, by the
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President under the Robert T. Stafford Disaster Re-
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lief and Emergency Assistance Act (42 U.S.C. 4121
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et seq.) relating to the Coronavirus Disease 2019
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(COVID–19) pandemic.
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(2) OTHER DEFINITIONS.—The terms ‘‘issuer’’,
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‘‘national securities exchange’’, and ‘‘security’’ have
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the meaning given those terms, respectively, under
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section 3 of the Securities Exchange Act of 1934.
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Æ
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