118 HR 3466 IH: To enhance Financial Stability Oversight Council transparency.
U.S. House of Representatives
2023-05-18
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I
118th CONGRESS
1st Session
H. R. 3466
IN THE HOUSE OF REPRESENTATIVES
May 18, 2023
Mr. Barr (for himself and Mr. Loudermilk) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To enhance Financial Stability Oversight Council transparency.
1.

FSOC transparency
(a)

Financial Stability Act of 2010
The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended—
(1)
in section 111—
(A)
in subsection (b)(1)—
(i)
in subparagraph (I), by striking “and” at the end;
(ii)
in subparagraph (J), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:
“(K)
an independent member appointed by the President, by and with the advice and consent of the Senate, and not of the same political party as the President.”;
(B)
in subsection (c)—
(i)
in paragraph (1), by striking “independent member” and inserting “independent members”; and
(ii)
in paragraph (4)—
(I)
in the heading, by striking “independent member” and inserting “independent members”; and
(II)
by striking “subsection (b)(1)(J)” and inserting “subparagraph (J) or (K) of subsection (b)(1)”;
(C)
by striking subsection (d);
(D)
by redesignating subsections (e) through (j) as subsections (d) through (i), respectively;
(E)
in subsection (d), as so redesignated, by adding at the end the following:
“(3)

Notice to Congress
The Chairperson shall notify the chair and ranking members of the Committee on Financial Services of the House of Representatives and the chair and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate of a meeting at the same time as the meeting participants are notified.”;
(F)
in subsection (f), as so redesignated, by striking “, or to any special advisory, technical, or professional committee appointed by the Council, except that, if an advisory, technical, or professional committee has one or more members who are not employees of or affiliated with the United States Government, the Council shall publish a list of the names of the members of such committee”;
(G)
in subsection (g), as so redesignated, by inserting before the period at the end the following: “, but if such services, funds, facilities, staff, or other support services are provided with respect to any Council program or activity that has, or is planned to have, duration of greater than 90 days, the Council shall notify Congress of such provision”; and
(H)
in subsection (i), as so redesignated, by adding at the end the following: “The Council shall report on such detailed employees on a monthly basis to Congress.”;
(2)
in section 112—
(A)
in subsection (a)(2)—
(i)
in subparagraph (A), by inserting after “system” the following: “and only after notifying Congress”;
(ii)
by striking subparagraphs (D) and (I);
(iii)
by redesignating subparagraphs (E), (F), (G), (H), (J), (K), (L), (M), and (N) as subparagraphs (D) through (L), respectively;
(iv)
in subparagraph (D), as so redesignated, by striking “agencies and” and inserting “agencies, Congress, and”;
(v)
in subparagraph (E), as so redesignated, by inserting after “to the member agencies” the following: “, the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate”;
(vi)
in subparagraph (G), as so redesignated, by striking “may”;
(vii)
in subparagraph (H), as so redesignated, by inserting before the semicolon the following: “, and notify the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of such identifications”;
(viii)
in subparagraph (I), as so redesignated, by inserting after “primary financial regulatory agencies to apply” the following: “primary financial regulatory agencies, the chair and ranking member of the Committee on Financial Services of the House of Representatives, and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate on the costs and benefits of applying”; and
(ix)
in subparagraph (J), as so redesignated, by inserting “the Congress and” before “the Commission”;
(B)
in subsection (c), by inserting “no later than 60 days” after “hearing,”; and
(C)
in subsection (d)—
(i)
in paragraph (1)—
(I)
by striking “as necessary” and all that follows through “to monitor” and inserting “as necessary to monitor”;
(II)
by striking “; or” and inserting a period; and
(III)
by striking subparagraph (B);
(ii)
in paragraph (2), by inserting before the period at the end the following: “and to Congress”;
(iii)
in paragraph (3), by adding at the end the following:
“(D

Congressional notification
The Council may not require the submission of periodic and other reports under this paragraph until 30 days after the Council has notified the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of the Council’s intention to require such submission.”;
(iv)
in paragraph (4), by inserting after “Council may” the following: “, after notifying the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate,”; and
(v)
in paragraph (5)(A), by inserting before the period at the end the following: “, except that Congress may request any such confidential data, information, or reports”;
(3)
in section 113—
(A)
in subsection (a)(2)—
(i)
in subparagraph (I), by adding “and” at the end;
(ii)
in subparagraph (J), by striking “; and” and inserting a period; and
(iii)
by striking subparagraph (K);
(B)
in subsection (b)(2)—
(i)
in subparagraph (I), by adding “and” at the end;
(ii)
in subparagraph (J), by striking “; and” and inserting a period; and
(iii)
by striking subparagraph (K);
(C)
by striking subsection (f);
(D)
by redesignating subsections (g), (h), and (i) as subsections (f), (g), and (h), respectively;
(E)
in subsection (g), as so redesignated, by striking “subsection (d)(2), (e)(3), or (f)(5)” and inserting “subsection (d)(2) or (e)(3)”; and
(F)
by adding at the end the following:
“(i)

Congressional review
(1)

Notification
If the Council makes a determination under this section, the Council shall immediately notify Congress of such determination.
(2)

Effectiveness of determination
A determination made by the Council under this section—
(A)
may not take effect until the end of the 60-day period beginning on the date that the Council notifies the Congress of such determination; and
(B)
shall have no force or effect if disapproved, as provided under this subsection.
(3)

Congressional disapproval procedure
(A)

Joint resolution defined
For purposes of this paragraph, the term “joint resolution” means only a joint resolution introduced during the 60-day period described under paragraph (2)(A), the matter after the resolving clause of which is as follows: “That Congress disapproves the determination of the Financial Stability Oversight Council submitted in a notification to Congress on ___, and such determination shall have no force or effect.” (The blank space being filled in with the appropriate date.).
(B)

Treatment in Senate
(i)
In the Senate, if the committee to which is referred a joint resolution has not reported such joint resolution (or an identical joint resolution) at the end of the 20-day period beginning on the date Congress is notified of a determination, such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar.
(ii)
In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under clause (i)) from further consideration of a joint resolution, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.
(iii)
In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.
(iv)
In the Senate, immediately following the conclusion of the debate on a joint resolution, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.
(v)
In the Senate, appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution shall be decided without debate.
(vi)
In the Senate, the procedure specified in this subparagraph shall not apply to the consideration of a joint resolution after the end of the 60-day period described under paragraph (2)(A).
(4)

Treatment of joint resolution received from the other House
If, before the passage by one House of a joint resolution of that House, that House receives from the other House a joint resolution, then the following procedures shall apply:
(A)
The joint resolution of the other House shall not be referred to a committee.
(B)
With respect to a joint resolution of the House receiving the joint resolution—
(i)
the procedure in that House shall be the same as if no joint resolution had been received from the other House; but
(ii)
the vote on final passage shall be on the joint resolution of the other House.
(5)

Treatment of this paragraph
This paragraph is enacted by Congress—
(A)
as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is inconsistent with such rules; and
(B)
with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.”;
(4)
in section 115—
(A)
in subsection (a)(1), by inserting after “recommendations to” the following: “the chair and ranking member of the Committee on Financial Services of the House of Representatives, the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate, and”;
(B)
in subsection (c)(3), by inserting after “recommendations to” the following: “the chair and ranking member of the Committee on Financial Services of the House of Representatives, the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate, and”;
(C)
in subsection (d)—
(i)
in paragraph (1), by inserting after “make recommendations to the Board of Governors” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”; and
(ii)
in paragraph (2), by inserting after “make recommendations to the Board of Governors” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”;
(D)
in subsection (e), by inserting after “make recommendations to the Board of Governors” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”;
(E)
in subsection (f), by inserting after “make recommendations to the Board of Governors” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”; and
(F)
in subsection (g), by inserting after “make recommendations to the Board of Governors” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”;
(5)
in section 116(a), by inserting after “may” the following: “, after notifying the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate,”;
(6)
in section 120—
(A)
in subsection (a), by inserting after “regulatory agencies” the following: “, if the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate are notified of such recommendations,”;
(B)
in subsection (b)—
(i)
in paragraph (1), by inserting after “to the public” the following: “and Congress”; and
(ii)
in paragraph (2)(A), by inserting before the semicolon the following: “, and the notice required under paragraph (1) shall contain data, methodology, and analysis detailing such costs”;
(C)
in subsection (c)(2), by inserting after “recommended by the Council” the following: “, after notifying the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of such imposition,”;
(D)
in subsection (e)(2)(A), by inserting before the period at the end the following: “, and notify the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of such determination and the factors, data, and analysis leading to such determination”; and
(E)
by adding at the end the following:
“(f)

Delay in implementation
A primary financial regulatory agency may not implement a recommendation made by the Council under subsection (a) until the end of the 90-day period beginning on the date such recommendation is issued.”;
(7)
in section 121—
(A)
in subsection (d), by inserting after “Governors may” the following: “, after notifying the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate,”; and
(B)
by adding at the end the following:
“(e)

Notice to Congress; delay in implementation
The Board of Governors—
(1)
shall notify the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of an intention to take an action described under paragraph (1) through (5) of subsection (a); and
(2)
may not take such an action until the end of the 60-day period beginning on the date of such notification.”;
(8)
in section 122—
(A)
in subsection (a), by striking “may audit” and inserting “shall annually audit”; and
(B)
in subsection (b)(2)—
(i)
by striking “The Comptroller” and inserting “The chair and ranking member of the Committee on Financial Services of the House of Representatives, the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Comptroller”; and
(ii)
by striking “as the Comptroller General” and inserting “as the chair, ranking member, or Comptroller General, as applicable”;
(9)
in section 152(e), by adding at the end the following: “The Office shall report on such detailed employees on a monthly basis to Congress.”;
(10)
in section 153—
(A)
in subsection (a)—
(i)
in paragraph (3), by striking “essential”;
(ii)
by striking paragraph (5);
(iii)
by redesignating paragraphs (6) and (7) as paragraphs (5) and (6), respectively; and
(iv)
in paragraph (5), as so redesignated, by inserting before the semicolon the following: “, the chair and ranking member of the Committee on Financial Services of the House of Representatives, and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate”;
(B)
in subsection (b)—
(i)
in paragraph (1)—
(I)
by inserting after “with the Council,” the following: “the chair and ranking member of the Committee on Financial Services of the House of Representatives, the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate,”; and
(II)
in subparagraph (B), by inserting before the semicolon the following: “and without prior notice of such sharing being provided to the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate”;
(ii)
in paragraph (2), by inserting before the semicolon the following: “, after providing notice to the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of such research projects”;
(iii)
in paragraph (3), by inserting before the period at the end the following: “, after providing notice to the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate of such assistance”; and
(C)
in subsection (f)(1), by striking “but only” and inserting “but not earlier than 60 days after the Director notifies the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate of the requirement to produce such data and only”;
(11)
in section 154—
(A)
in subsection (b)—
(i)
in paragraph (1)(B)(i), by inserting after “by the Council,” the following: “after notifying the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate,”; and
(ii)
in paragraph (2), by adding at the end the following:
“(C)

Review and report on the cost of the databases
The Data Center shall review and report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate annually on the cost to the Government and the cost to private sector entities of maintaining the financial company reference database and the financial instrument reference database, relative to a detailed quantification of benefits.”;
(B)
in subsection (c)(1)(E), by inserting before the semicolon the following: “or Congress”; and
(C)
in subsection (d)(2)—
(i)
in subparagraph (B), by striking “and” at the end;
(ii)
in subparagraph (C), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:
“(D)
evidence of inefficient, ineffective, or burdensome regulations.”; and
(12)
in section 155(d)—
(A)
by striking “Beginning” and inserting the following:
“(1)

In general
Beginning”; and
(B)
by adding at the end the following:
“(2)

Maximum assessment amount
The aggregate amount of assessments collected pursuant to paragraph (1) may not exceed the aggregate amount of assessments collected in the most recently completed fiscal year ending before the date of enactment of this paragraph, as such aggregate amount is adjusted annually by the Director of the Office to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”.
(b)

Conforming amendments
(1)

Title 5
Section 5314 of title 5, United States Code, is amended by striking “Independent Member of the Financial Stability Oversight Council (1)” and inserting “Independent Members of the Financial Stability Oversight Council (2)”.
(2)

Dodd-Frank Wall Street Reform and Consumer Protection Act
The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 176 the following:
“Sec. 177. Congressional notice.”.