Bill: Rejected Federal Reserve Act

[MessiFG7]

A
BILL
To

Establish Central Banking for Redmont

The people of Democracy Craft, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

Short Title and Enactment
(1) This Act may be cited as the “Federal Reserve Act”.
(2) This Act shall be enacted 2 weeks upon its signage.
(3) This Act has been drafted by Representative Figomessi77, Representative MilkCrack, DEC Secretary Thirtystone, and President 218218Consumer.
(3) The Act has been co-sponsored by: Representative MilkCrack

Reasons

1. Spiraling deflation threatens Redmont’s economic prosperity.
2. Current stagnation will lead to a decline in player interest.
3. The government lacks a means of conducting monetary policy.
4. Central banking will add depth to Redmont’s economic and government systems.

1 - Structure of the Federal Reserve Bank of Redmont

1. This act shall create a government organization known in full as the Federal Reserve Bank of Redmont.
2. The Federal Reserve shall act to fulfill the following goals in no particular order:
   1. Maximum employment
   2. Moderate long-term interest rates
   3. Consistent prices for consumers and producers
3. The Federal Reserve shall be vested with the following powers:
   1. Creating and implementing Redmont monetary policy.
   2. Introducing currency in compliance with relevant procedures laid out under this act.
   3. Regulating the interest rates on bonds, general debts, and other obligations of the government.
   4. Retaining a strategic reserve of items for the purposes of backing or securing its responsibilities in accordance with the reasons of this act.
   5. Holding jurisdiction to the operations and administration of any building assigned to it by the executive government of Redmont.
   6. Modifying the starting balance of new players. This amount cannot be lower than $1,000 per player and must be a multiple of $100.
   7. Setting the reward rate for /vote. This amount cannot be lower than $30 per server and must be a multiple of $5.
4. The Federal Reserve Bank of Redmont shall be administered by a Board of Governors consisting of five voting members:
   1. Members must adhere to standards of integrity, competence, and responsibility, avoiding personal or political interest in making decisions. Failure to meet these standards may result in impeachment, which shall require a simple majority vote in the House and a supermajority vote in the Senate.
   2. All members must be nominated by the President and confirmed by the Senate to serve four-month terms as described below:
      1. Two out of five shall serve terms beginning on the fifteenth of the months of February, June, and October.
      2. Two out of five shall serve terms beginning on the fifteenth of the months of April, August, and December.
      3. One out of five shall be the Treasurer of Redmont. The Treasurer shall not require direct nomination or confirmation to membership of the Board of Governors.
         1. The membership occupied by the DEC Secretary/Treasurer shall not have the power to submit motions.
      4. Among the five members of the Board, the President shall appoint a Senate-confirmed Chair of the Board of Governors.
      5. In the event of a vacancy in the Board, the President shall have the authority to nominate a new member, which shall require Senate approval.
   3. Excluding the Treasurer, any sitting members of Congress or the executive branch may not serve as a member of the Board of Governors.
   4. Each member of the Board of Governors shall have one vote, of which a quorum of three out of five must be present for motions to be considered. Any motion of the Federal Reserve must obtain a simple majority of the present quorum. A quorum shall be defined as a vote of aye, nay, or abstain within the conclusion of 48 hours.
   5. The Board of Governors may request supplemental assistance from the Department of Education and Commerce for administrative tasks.
      1. The Board of Governors may request staff for administration or data collection through the Department of Education and Commerce.
      2. The Department of Education and Commerce shall provide all necessary and proper research information at the request of the Board of Governors.
      3. The Board of Governors may delegate administrative responsibilities to the Department of Education and Commerce.
   6. The Chair of the Board of Governors is responsible for executing all motions of the board.

2 - Federal Fiscal Account

1. The Federal Reserve shall have the authority over the administration of the Federal Fiscal Account.
2. The Federal Reserve shall receive an in-game, independent financial account known as DCGovernmentFED. Money from this account may not be used as bonuses for any member of the Board of Governors. This account may be modified through the following processes:

1. Appropriations; Congress may choose to appropriate any amount of money to the Federal Reserve account through the standard appropriations process.
2. Monetary Increase; The Board of Governors may vote to add currency to this account.
3. Monetary Decrease; The Board of Governors may vote to subtract currency from this account.
4. Quantitative Easing; The Board of Governors may approve the purchase of any financial or physical asset excluding plots. If approved, the Chair or delegated representative of the Reserve shall buy those assets from this account. These assets are then property of the Federal Reserve.
5. Inflationary Financing; Through the appropriations process, the federal government of Redmont may issue a request to the Reserve to directly fund a portion of the budget through the introduction of new currency. The Board of Governors must approve these requests via motion.
6. Loans; Loans from the Federal Reserve may be acquired only by registered banks, credit unions, or investment firms. The Federal Reserve shall conduct such loans from the fiscal account of the Federal Reserve.
   1. Loan policies shall be set and approved by the Board of Governors.
   2. The Board of Governors shall set and modify a standard interest rate for all loans issued by the Reserve via motion. Upon the signage of this act, this rate will be set to 0%.

3 - Public Record

1. The Chair must announce any of the following via government announcements:
   1. Changes to interest rates
   2. Changes to starting balance
   3. Changes to vote rewards
2. The Reserve must log the following in perpetuity via the forums:
   1. Changes to interest rates
   2. Changes to the starting balance
   3. Changes to vote totals
   4. Monetary increases or decreases, which must also be logged in #budget.
   5. Inflationary financing approvals, which must also be logged in #budget.
   6. Loan approvals, which must also be logged in #budget.
   7. Reserve policies
3. All logs of motions on the forums must include the motion’s changes, final vote, and date of enactment.
4. In-game names:

• Reserve Governor
• Reserve Chair