Abolition Act

106th CONGRESS

1st Session

H. R. 1148
To abolish the Board of Governors of the Federal Reserve System
and the Federal reserve banks, to repeal the Federal Reserve Act,
and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 17, 1999
Mr. PAUL introduced the following bill; which was referred to the
Committee on Banking and Financial Services

A BILL
To abolish the Board of Governors of the Federal Reserve System
and the Federal reserve banks, to repeal the Federal Reserve Act,
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 `Federal Reserve Board Abolition
Act'.

SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.

(a) IN GENERAL- Effective at the end of the 1-year period
beginning on the date of the enactment of this Act, the Board of
Governors
of the Federal Reserve System and each Federal reserve bank are
hereby abolished.

(b) REPEAL OF FEDERAL RESERVE ACT- Effective at the end of the
1-year period beginning on the date of the enactment of this
Act, the Federal Reserve Act is hereby repealed.

(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period
referred to in subsection (a), the Chairman of the
Board of Governors of the Federal Reserve System--

(A) shall, for the sole purpose of winding up the affairs of the
Board of Governors of the Federal Reserve System and the Federal
reserve banks--

(i) manage the employees of the Board and each such bank and
provide for the payment of compensation and benefits of any such
employee which accrue before the position of such employee is
abolished; and

(ii) manage the assets and liabilities of the Board and each such
bank until such assets and liabilities are liquidated or assumed by the
Secretary of the Treasury in accordance with this subsection; and

(B) may take such other action as may be necessary, subject to the
approval of the Secretary of the Treasury, to wind up the affairs of
the Board and the Federal reserve banks.

(2) LIQUIDATION OF ASSETS-

(A) IN GENERAL- The Director of the Office of Management and
Budget shall liquidate all assets of the Board and the Federal reserve
banks in an orderly manner so as to achieve as expeditious a
liquidation as may be practical while maximizing the return to the
Treasury.

(B) TRANSFER TO TREASURY- After satisfying all claims against the
Board and any Federal reserve bank which are accepted by the
Director of the Office of Management and Budget and redeeming the
stock of such banks, the net proceeds of the liquidation under
subparagraph (A) shall be transferred to the Secretary of the
Treasury and deposited in the General Fund of the Treasury.

(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the
Board of Governors of the Federal Reserve System and the
Federal reserve banks at the time such entities are abolished,
including any liability for retirement and other benefits for former
officers
and employees of the Board or any such bank in accordance with
employee retirement and benefit programs of the Board and any such
bank, shall become the liability of the Secretary of the Treasury
and shall be paid from amounts deposited in the general fund pursuant
to paragraph (2) which are hereby appropriated for such purpose
until all such liabilities are satisfied.

(d) REPORT- At the end of the 18-month period beginning on the
date of the enactment of this Act, the Secretary of the Treasury and
the Director of the Office of Management and Budget shall submit a
joint report to the Congress containing a detailed description of the
actions taken to implement this Act and any actions or issues
relating to such implementation that remain uncompleted or unresolved as
of the date of the report.

END

http://www.house.gov/paul/legis/106/hr1148.htm