[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3490 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3490

   To amend the Federal Reserve Act to bring the non-monetary policy 
  related functions of the Board of Governors of the Federal Reserve 
    System into the appropriations process, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 12 (legislative day, January 10), 2022

  Mr. Tillis introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Reserve Act to bring the non-monetary policy 
  related functions of the Board of Governors of the Federal Reserve 
    System into the appropriations process, 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 Regulatory Oversight 
Act''.

SEC. 2. BRINGING THE NON-MONETARY POLICY RELATED FUNCTIONS OF THE BOARD 
              OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM INTO THE 
              APPROPRIATIONS PROCESS.

    (a) In General.--The Federal Reserve Act is amended by inserting 
after section 11B the following:

``SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY POLICY RELATED 
              ADMINISTRATIVE COSTS.

    ``(a) Appropriations Requirement.--
            ``(1) Recovery of costs of annual appropriation.--The Board 
        of Governors of the Federal Reserve System and the Federal 
        reserve banks shall collect assessments and other fees, as 
        provided under this Act, that are designed to recover the costs 
        to the Government of the annual appropriation to the Board of 
        Governors of the Federal Reserve System by Congress. The Board 
        of Governors of the Federal Reserve System and the Federal 
        reserve banks may only incur obligations or allow and pay 
        expenses with respect to non-monetary policy related 
        administrative costs pursuant to an appropriations Act.
            ``(2) Offsetting collections.--Assessments and other fees 
        described under paragraph (1) for any fiscal year--
                    ``(A) shall be deposited and credited as offsetting 
                collections to the account providing appropriations to 
                the Board of Governors of the Federal Reserve System; 
                and
                    ``(B) shall not be collected for any fiscal year 
                except to the extent provided in advance in 
                appropriation Acts.
            ``(3) Limitation.--This subsection shall only apply to the 
        non-monetary policy related administrative costs of the Board 
        of Governors of the Federal Reserve System.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Monetary policy.--The term `monetary policy' means a 
        strategy for producing a generally acceptable exchange medium 
        that supports the productive employment of economic resources 
        by reliably serving as both a unit of account and store of 
        value.
            ``(2) Non-monetary policy related administrative costs.--
        The term `non-monetary policy related administrative costs' 
        means administrative costs not related to the conduct of 
        monetary policy, and includes--
                    ``(A) direct operating expenses for supervising and 
                regulating entities supervised and regulated by the 
                Board of Governors of the Federal Reserve System, 
                including conducting examinations, conducting stress 
                tests, communicating with the entities regarding 
                supervisory matters and laws, and regulations;
                    ``(B) operating expenses for activities integral to 
                carrying out supervisory and regulatory 
                responsibilities, such as training staff in the 
                supervisory function, research and analysis functions 
                including library subscription services, and collecting 
                and processing regulatory reports filed by supervised 
                institutions; and
                    ``(C) support, overhead, and pension expenses 
                related to the items described under subparagraphs (A) 
                and (B).''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to expenses paid and fees collected on or after 
October 1, 2021.
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