[House Report 115-293]
[From the U.S. Government Publishing Office]


115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-293

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 FINANCIAL STABILITY OVERSIGHT COUNCIL INSURANCE MEMBER CONTINUITY ACT

                                _______
                                

 September 5, 2017.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3110]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3110) to amend the Financial Stability Act of 
2010 to modify the term of the independent member of the 
Financial Stability Oversight Council, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                          Purpose and Summary

    On June 29, 2017, H.R. 3110, the Financial Stability 
Oversight Council Insurance Member Continuity Act was 
introduced by Rep. Randy Hultgren.
    H.R. 3110 would amend Section 111(c) of Title I of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank Act) to alter the term of the Independent Member 
with insurance expertise of the Financial Stability Oversight 
Council (FSOC). The legislation would permit the Independent 
Member, after the expiration of their term, to serve on the 
FSOC until the earlier of 18 months after the date on which the 
term of service ends or the date on which a successor to such 
member is appointed and confirmed.

                  Background and Need for Legislation

    H.R. 3110 will provide continuity and certainty for 
insurance representation on the FSOC, address a statutory 
oversight, and clarify the term of the Independent Member.
    Under Title I of the Dodd-Frank Act, also known as the 
Financial Stability Act of 2010, the FSOC's voting members 
include an Independent Member with insurance expertise, who is 
appointed by the President and confirmed by the Senate. The 
Independent Member is the only member appointed by the 
President to specifically serve on FSOC.
    Title I of the Dodd-Frank Act established a six-year term 
for the Independent Member. The current incumbent's term would 
expire on September 30, 2017. Absent the appointment and 
confirmation of a successor, the expiration of the Independent 
Member's term would leave the FSOC without a voting member with 
insurance expertise. There are no contingency plans for the 
status of the Independent Member's position following the six-
year term's expiration. The Dodd-Frank Act is unclear if the 
President can fill the position with an acting official 
following the expiration of the Independent Member's term. H.R. 
3110 removes this uncertainty and clarifies the term of the 
Independent Member.

                                Hearings

    The Committee on Financial Services did not hold any 
hearings to examine matters related to H.R. 3110.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 25, 2017, and ordered H.R. 3110 to be reported favorably 
to the House without amendment by a recorded vote of 60 yeas to 
0 nays (recorded vote no. FC-70), a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole recorded vote was on a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 60 yeas to 0 nays 
(Record vote no. FC-70 a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 3110 
will create continuity for insurance representation on the 
FSOC, address a statutory oversight, and clarify the term of 
the Independent Member by permitting the Independent Member, 
after the expiration of their term, to serve on the FSOC until 
the earlier of 18 months after the date on which the term of 
service ends or the date on which a successor to such member is 
appointed and confirmed.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 16, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3110, the 
Financial Stability Oversight Council Insurance Member 
Continuity Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent.
            Sincerely,
                                              Keith Hall, Director.
    Enclosure.

H.R. 3110--Financial Stability Oversight Council Insurance Member 
        Continuity Act

    Under current law, the Financial Stability Oversight 
Council (FSOC) is composed of ten voting members; the heads of 
nine federal financial agencies and an independent member with 
insurance expertise appointed by the President, with the advice 
and consent of the Senate. The independent member serves a six 
year term. H.R. 3110 would allow the independent member to 
continue to serve on the FSOC for up to 18 months after the end 
of the member's term if a successor has not been appointed and 
confirmed.
    Based on information from the FSOC, CBO estimates that 
implementing H.R. 3110 would cost less than $500,000. That 
amount would cover the additional personnel costs for the 
independent member until a successor is appointed. Under 
current law, expenses of the FSOC are considered to be expenses 
of the Office of Financial Research (OFR), which is direct 
spending. The OFR is authorized to levy assessments, which are 
recorded in the budget as revenues, on certain financial 
institutions to offset its operating costs. Accordingly, CBO 
estimates that the bill's net effect on the deficit would be 
negligible.
    Because enacting H.R. 3110 would affect direct spending and 
revenues, pay-as-you-go procedures apply.
    CBO estimates that enacting H.R. 3110 would not 
significantly increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 3110 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Stephen Rabent. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, (115th Congress), 
the following statement is made concerning directed 
rulemakings: The Committee estimates that the bill requires no 
directed rulemakings within the meaning of such section.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Section cites H.R. 3110 as the ``Financial Stability 
Oversight Council Insurance Member Continuity Act''.

Section 2. Financial Stability Oversight Council

    This Section states that if a successor to the independent 
member of FSOC is not appointed and confirmed by the end of the 
term of service, the independent member may continue to service 
until the earlier of (1) 18 months after the date on which the 
term of service ends or (2) the date on which a successor to 
the independent member is appointed and confirmed.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                    FINANCIAL STABILITY ACT OF 2010




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TITLE I--FINANCIAL STABILITY

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           Subtitle A--Financial Stability Oversight Council

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

  (a) Establishment.--Effective on the date of enactment of 
this Act, there is established the Financial Stability 
Oversight Council.
  (b) Membership.--The Council shall consist of the following 
members:
          (1) Voting members.--The voting members, who shall 
        each have 1 vote on the Council shall be--
                  (A) the Secretary of the Treasury, who shall 
                serve as Chairperson of the Council;
                  (B) the Chairman of the Board of Governors;
                  (C) the Comptroller of the Currency;
                  (D) the Director of the Bureau;
                  (E) the Chairman of the Commission;
                  (F) the Chairperson of the Corporation;
                  (G) the Chairperson of the Commodity Futures 
                Trading Commission;
                  (H) the Director of the Federal Housing 
                Finance Agency;
                  (I) the Chairman of the National Credit Union 
                Administration Board; and
                  (J) an independent member appointed by the 
                President, by and with the advice and consent 
                of the Senate, having insurance expertise.
          (2) Nonvoting members.--The nonvoting members, who 
        shall serve in an advisory capacity as a nonvoting 
        member of the Council, shall be--
                  (A) the Director of the Office of Financial 
                Research;
                  (B) the Director of the Federal Insurance 
                Office;
                  (C) a State insurance commissioner, to be 
                designated by a selection process determined by 
                the State insurance commissioners;
                  (D) a State banking supervisor, to be 
                designated by a selection process determined by 
                the State banking supervisors; and
                  (E) a State securities commissioner (or an 
                officer performing like functions), to be 
                designated by a selection process determined by 
                such State securities commissioners.
          (3) Nonvoting member participation.--The nonvoting 
        members of the Council shall not be excluded from any 
        of the proceedings, meetings, discussions, or 
        deliberations of the Council, except that the 
        Chairperson may, upon an affirmative vote of the member 
        agencies, exclude the nonvoting members from any of the 
        proceedings, meetings, discussions, or deliberations of 
        the Council when necessary to safeguard and promote the 
        free exchange of confidential supervisory information.
  (c) Terms; Vacancy.--
          (1) Terms.--The independent member of the Council 
        shall serve for a term of 6 years, and each nonvoting 
        member described in subparagraphs (C), (D), and (E) of 
        subsection (b)(2) shall serve for a term of 2 years.
          (2) Vacancy.--Any vacancy on the Council shall be 
        filled in the manner in which the original appointment 
        was made.
          (3) Acting officials may serve.--In the event of a 
        vacancy in the office of the head of a member agency or 
        department, and pending the appointment of a successor, 
        or during the absence or disability of the head of a 
        member agency or department, the acting head of the 
        member agency or department shall serve as a member of 
        the Council in the place of that agency or department 
        head.
          (4) Term of independent member.--Notwithstanding 
        paragraph (1), if a successor to the independent member 
        of the Council serving under subsection (b)(1)(J) is 
        not appointed and confirmed by the end of the term of 
        service of such member, such member may continue to 
        serve until the earlier of--
                  (A) 18 months after the date on which the 
                term of service ends; or
                  (B) the date on which a successor to such 
                member is appointed and confirmed.
  (d) Technical and Professional Advisory Committees.--The 
Council may appoint such special advisory, technical, or 
professional committees as may be useful in carrying out the 
functions of the Council, including an advisory committee 
consisting of State regulators, and the members of such 
committees may be members of the Council, or other persons, or 
both.
  (e) Meetings.--
          (1) Timing.--The Council shall meet at the call of 
        the Chairperson or a majority of the members then 
        serving, but not less frequently than quarterly.
          (2) Rules for conducting business.--The Council shall 
        adopt such rules as may be necessary for the conduct of 
        the business of the Council. Such rules shall be rules 
        of agency organization, procedure, or practice for 
        purposes of section 553 of title 5, United States Code.
  (f) Voting.--Unless otherwise specified, the Council shall 
make all decisions that it is authorized or required to make by 
a majority vote of the voting members then serving.
  (g) Nonapplicability of FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Council, 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.
  (h) Assistance From Federal Agencies.--Any department or 
agency of the United States may provide to the Council and any 
special advisory, technical, or professional committee 
appointed by the Council, such services, funds, facilities, 
staff, and other support services as the Council may determine 
advisable.
  (i) Compensation of Members.--
          (1) Federal employee members.--All members of the 
        Council who are officers or employees of the United 
        States shall serve without compensation in addition to 
        that received for their services as officers or 
        employees of the United States.
          (2) Compensation for non-federal member.--Section 
        5314 of title 5, United States Code, is amended by 
        adding at the end the following:``Independent Member of 
        the Financial Stability Oversight Council (1).''.
  (j) Detail of Government Employees.--Any employee of the 
Federal Government may be detailed to the Council without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. An employee of the 
Federal Government detailed to the Council shall report to and 
be subject to oversight by the Council during the assignment to 
the Council, and shall be compensated by the department or 
agency from which the employee was detailed.

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