H.R. 6339 — Introduced in House

I 116th CONGRESS 2d Session H. R. 6339 IN THE HOUSE OF REPRESENTATIVES March 23, 2020Mr. 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. 1. Temporary ban on stock buybacks (a) In general It shall be unlawful for any issuer, the securities of which are traded on a national securities exchange, to purchase securities of the issuer during the period beginning on the date of enactment of this Act and ending 120 days after the end of the COVID–19 emergency period. (b) Early termination The Securities and Exchange Commission may terminate the prohibition under subsection (a) after the end of the COVID–19 emergency period and before the end of the 120-day period described under subsection (a), if— (1) the Commission determines such termination is in the public interest; and (2) immediately notifies the Congress and the public of such determination and the reason for such determination, including on the website of the Commission. (c) Enforcement; rulemaking (1) In general The Securities and Exchange Commission shall have the authority to enforce this Act and may issue such rules as may be necessary to carry out this Act. (2) Commission voting Any action taken by the Commission pursuant to this section may only be taken upon a unanimous vote of the commissioners. (d) Definitions In this section: (1) COVID–19 emergency period The term COVID–19 emergency period means the period that begins upon the date of the enactment of this Act and ends upon the date of the termination by the Federal Emergency Management Agency of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID–19) pandemic. (2) Other definitions The terms issuer, national securities exchange, and security have the meaning given those terms, respectively, under section 3 of the Securities Exchange Act of 1934.