Federal Reserve Accountability and Transparency Act of 2014 - Amends the Federal Reserve Act to require the Board of Governors of the Federal Reserve System to consider specified economic impacts of any regulation before issuing it.
Directs the Board, in deciding whether and how to regulate, to assess the costs and benefits of regulatory alternatives, including the alternative of not regulating, and choose the approach that maximizes net benefits.
Sets forth additional considerations, including market liquidity in the securities markets and global competitiveness.
Requires the Board, whenever it adopts or amends a regulation designated as a"major rule," to make a post-adoption impact assessment, including intended and unintended consequences of the regulation.
Requires a one-week blackout period before each meeting of the Federal Open Market Committee, until midnight of the day after the meeting, during which restrictions are imposed upon public communications by Board members and staff, with specified exceptions, regarding macroeconomic or financial developments or current or prospective monetary policy issues.
Applies to Board members and staff the ethics standards that apply to Securities and Exchange commission (SEC) employees with respect to financial interests and transactions. Prescribes requirements for disclosure of brokerage accounts.
Directs the Board to make publicly available on its website staff salaries and financial information.
Directs the Comptroller General (GAO) to study the employee pay and pay scale used by the Board.
Requires the Vice Chairman for Supervision to testify to Congress on the status of all pending and anticipated Board rulemakings.
Revises requirements for Board communications with Congress.
Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to require the Board to: (1) issue regulations for nonbank financial company stress test conditions, and (2) disclose and update publicly the aggregate number of supervisory letters sent to bank holding companies.
Requires the Board to: (1) submit audits and performance reviews to certain congressional committees, and (2) designate as chairman of the board of directors of the Federal reserve bank and as Federal reserve agent one of either class A or class B directors with tested banking experience.
Eliminates Class C Directors who are required to represent the public with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.
Requires the Board to choose its chairman instead of the President, with the advice and consent of the Senate.
Revises requirements for: (1) the terms of Board Directors, and (2) the filling of vacancies.
Prohibits Board members and employees from international travel for purposes of performing any Board function.
Requires the Board to notify Congress and the public before entering into negotiations with either a foreign or multinational entity.
Amends the Federal Financial Institutions Examination Council Act of 1978, and the Financial Stability Act of 2010 to require the Financial Institutions Examination Council and the Financial Stability Oversight Council, before issuing any regulation, to: (1) identify and assess the nature and source of the problem to be addressed, (2) assess the costs and benefits of available regulatory alternatives, and (3) make a post-adoption impact assessment of any major rule.
Subjects members and employeees of both Councils to the same ethics standards and outside employment and activity requirements as govern SEC employees.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3928 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 3928
To improve the accountability and transparency of the Board of
Governors of the Federal Reserve System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 27, 2014
Mr. Garrett introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To improve the accountability and transparency of the Board of
Governors of the Federal Reserve System, 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 Accountability and
Transparency Act of 2014''.
SEC. 2. ECONOMIC ANALYSIS.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by
inserting after subsection (l) the following:
``(m) Consideration of Economic Impacts.--
``(1) In general.--Before issuing any regulation, the Board
of Governors of the Federal Reserve System shall--
``(A) clearly identify the nature and source of the
problem that the proposed regulation is designed to
address, as well as assess the significance of that
problem, to enable assessment of whether any new
regulation is warranted;
``(B) assess the costs and benefits, both
qualitative and quantitative, of the intended
regulation and propose or adopt a regulation only on a
reasoned determination that the benefits of the
intended regulation outweigh the costs of the
regulation;
``(C) identify and assess available alternatives to
the regulation that were considered, including
modification of an existing regulation, together with
an explanation of why the regulation meets the
regulatory objectives more effectively than the
alternatives; and
``(D) ensure that any regulation is accessible,
consistent, written in plain language, and easy to
understand and shall measure, and seek to improve, the
actual results of regulatory requirements.
``(2) Considerations and actions.--
``(A) Required actions.--In deciding whether and
how to regulate, the Board shall assess the costs and
benefits of available regulatory alternatives,
including the alternative of not regulating, and choose
the approach that maximizes net benefits. Specifically,
the Board shall--
``(i) evaluate whether, consistent with
obtaining regulatory objectives, the regulation
is tailored to impose the least burden on
society, including market participants,
individuals, businesses of differing sizes, and
other entities (including State and local
governmental entities), taking into account, to
the extent practicable, the cumulative costs of
regulations; and
``(ii) evaluate whether the regulation is
inconsistent, incompatible, or duplicative of
other Federal regulations.
``(B) Additional considerations.--In addition, in
making a reasoned determination of the costs and
benefits of a potential regulation, the Board shall, to
the extent that each is relevant to the particular
proposed regulation, take into consideration the impact
of the regulation on--
``(i) investor choice;
``(ii) market liquidity in the securities
markets;
``(iii) small businesses;
``(iv) economic growth;
``(v) cost and access to capital;
``(vi) market stability;
``(vii) global competitiveness;
``(viii) job creation;
``(ix) rate of inflation; and
``(x) employment levels.
``(3) Explanation and comments.--The Board shall explain in
its final rule the nature of comments that it received,
including those from the industry or consumer groups concerning
the potential costs or benefits of the proposed rule or
proposed rule change, and shall provide a response to those
comments in its final rule, including an explanation of any
changes that were made in response to those comments and the
reasons that the Board did not incorporate those industry group
concerns related to the potential costs or benefits in the
final rule.
``(4) Post-adoption impact assessment.--
``(A) In general.--Whenever the Board adopts or
amends a regulation designated as a `major rule' within
the meaning of section 804(2) of title 5, United States
Code, it shall state, in its adopting release, the
following:
``(i) The purposes and intended
consequences of the regulation.
``(ii) Appropriate post-implementation
quantitative and qualitative metrics to measure
the economic impact of the regulation and to
measure the extent to which the regulation has
accomplished the stated purposes.
``(iii) The assessment plan that will be
used, consistent with the requirements of
subparagraph (B), to assess whether the
regulation has achieved the stated purposes.
``(iv) Any reasonably foreseeable indirect
effects that may result from the regulation.
``(B) Requirements of assessment plan and report.--
``(i) Requirements of plan.--The assessment
plan required under this paragraph shall
consider the costs, benefits, and intended and
unintended consequences of the regulation. The
plan shall specify the data to be collected,
the methods for collection and analysis of the
data and a date for completion of the
assessment. The assessment plan shall include
an analysis of any jobs added or lost as a
result of the regulation, differentiating
between public and private sector jobs.
``(ii) Submission and publication of
report.--The Board shall, not later than 2
years after the publication of the adopting
release, cause the assessment report to be
published in the Federal Register for notice
and comment. If the Board determines, at least
90 days before such date, that an extension is
necessary, the Board shall publish a notice of
such extension in the Federal Register, along
with the specific reasons why the extension is
necessary. Any material modification of the
plan, as necessary to assess unforeseen aspects
or consequences of the regulation, shall be
promptly published in the Federal Register for
notice and comment.
``(iii) Data collection not subject to
notice and comment requirements.--If the Board
has published its assessment plan for notice
and comment, specifying the data to be
collected and method of collection, at least 30
days prior to adoption of a final regulation or
amendment, such collection of data shall not be
subject to the notice and comment requirements
in section 3506(c) of title 44, United States
Code (commonly referred to as the Paperwork
Reduction Act). Any material modifications of
the plan that require collection of data not
previously published for notice and comment
shall also be exempt from such requirements if
the Board has published notice for comment in
the Federal Register of the additional data to
be collected, at least 30 days prior to
initiation of data collection.
``(iv) Final action.--Not later than 180
days after publication of the assessment report
in the Federal Register, the Board shall issue
for notice and comment a proposal to amend or
rescind the regulation, or publish a notice
that the Board has determined that no action
will be taken on the regulation. Such a notice
will be deemed a final agency action.
``(5) Covered regulations and other actions.--Solely as
used in this subsection, the term `regulation'--
``(A) means a statement of general applicability
and future effect that is designed to implement,
interpret, or prescribe law or policy or to describe
the procedure or practice requirements of the Board of
Governors, including rules, orders of general
applicability, interpretive releases, and other
statements of general applicability that the Board of
Governors intends to have the force and effect of law;
and
``(B) does not include--
``(i) a regulation issued in accordance
with the formal rulemaking provisions of
section 556 or 557 of title 5, United States
Code;
``(ii) a regulation that is limited to the
organization, management, or personnel matters
of the Board of Governors;
``(iii) a regulation promulgated pursuant
to statutory authority that expressly prohibits
compliance with this provision; and
``(iv) a regulation that is certified by
the Board of Governors to be an emergency
action, if such certification is published in
the Federal Register.''.
SEC. 3. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PERIOD.
Section 12A of the Federal Reserve Act (12 U.S.C. 263) is amended
by adding at the end the following:
``(d) Blackout Period.--
``(1) In general.--During a blackout period, the only
public communications that may be made by members and staff of
the Committee with respect to macroeconomic or financial
developments or about current or prospective monetary policy
issues are the following:
``(A) The dissemination of published data, surveys,
and reports that have been cleared for publication by
the Board of Governors of the Federal Reserve System.
``(B) Answering technical questions specific to a
data release.
``(C) Communications with respect to the prudential
or supervisory functions of the Board of Governors.
``(2) Blackout period defined.--For purposes of this
subsection, and with respect to a meeting of the Committee
described under subsection (a), the term `blackout period'
means the time period that--
``(A) begins immediately after midnight on the day
that is 1-week prior to the date on which such meeting
takes place; and
``(B) ends at midnight on the day after the date on
which such meeting takes place.''.
SEC. 4. STAFF TERM LIMITS, PAY, ETHICS STANDARDS, AND FINANCIAL
DISCLOSURES.
(a) In General.--Section 11 of the Federal Reserve Act (12 U.S.C.
248) is amended--
(1) by redesignating the second subsection (s) (relating to
assessments, fees, and other charges) as subsection (t); and
(2) by adding at the end the following:
``(u) Ethics Standards for Members and Employees.--
``(1) Prohibited and restricted financial interests and
transactions.--The members and employees of the Board of
Governors of the Federal Reserve System shall be subject to the
provisions under section 4401.102 of title 5, Code of Federal
Regulations, to the same extent as such provisions apply to an
employee of the Securities and Exchange Commission.
``(2) Treatment of brokerage accounts and availability of
account statements.--The members and employees of the Board of
Governors of the Federal Reserve System shall--
``(A) disclose all brokerage accounts that they
maintain, as well as those in which they control
trading or have a financial interest (including managed
accounts, trust accounts, investment club accounts, and
the accounts of spouses or minor children who live with
the member or employee); and
``(B) with respect to any securities account that
the member or employee is required to disclose to the
Board of Governors, authorize their brokers and dealers
to send duplicate account statements directly to Board
of Governors.
``(3) Prohibitions related to outside employment and
activities.--The members and employees of the Board of
Governors of the Federal Reserve System shall be subject to the
prohibitions related to outside employment and activities
described under section 4401.103(c) of title 5, Code of Federal
Regulations, to the same extent as such prohibitions apply to
an employee of the Securities and Exchange Commission.
``(4) Additional ethics standards.--The members and
employees of the Board of Governors of the Federal Reserve
System shall be subject to--
``(A) the employee responsibilities and conduct
regulations of the Office of Personnel Management under
part 735 of title 5, Code of Federal Regulations;
``(B) the canons of ethics contained in subpart C
of part 200 of title 17, Code of Federal Regulations,
to the same extent as such subpart applies to the
employees of the Securities and Exchange Commission;
and
``(C) the regulations concerning the conduct of
members and employees and former members and employees
contained in subpart M of part 200 of title 17, Code of
Federal Regulations, to the same extent as such subpart
applies to the employees of the Securities and Exchange
Commission.
``(v) Additional Employees Required To Make a Public Financial
Disclosure.--For purposes of the financial disclosure requirements
under part 2634 of title 5, Code of Federal Regulations, an employee of
the Board of Governors shall be deemed a public filer if the employee
is an attorney, accountant, examiner, auditor, investigator, or deals
with information technology security.
``(w) Disclosure of Staff Salaries and Financial Information.--The
Board of Governors of the Federal Reserve System shall make publicly
available, on the website of the Board of Governors, a searchable
database that contains the names of all Members, officers, and
employees of the Board of Governors of the Federal Reserve System and
each Federal reserve bank, and--
``(1) the yearly salary information for such individuals,
along with any non-salary compensation received by such
individuals; and
``(2) any financial disclosures required to be made by such
individuals.''.
(b) Limitation on Federal Reserve System Staff Pay and Terms of
Office.--The Federal Reserve Act is amended--
(1) in the provision enumerated ``Fifth'' of the fourth
undesignated paragraph of section 4, by inserting after the
first sentence the following: ``Such president, vice
presidents, and other officers and employees may not be paid a
salary in excess of 99 percent of the salary of the Chairman of
the Board of Governors of the Federal Reserve System. No person
may serve for more than 6 years in any one of the following
positions: general counsel, deputy general counsel, senior
adviser, director, deputy director, senior associate director,
and assistant director.''; and
(2) in section 11(l), by adding at the end the following:
``No attorney, expert, assistant, clerk, or other employee of
the Board of Governors of the Federal Reserve System may be
paid a salary in excess of 99 percent of the salary of the
Chairman of the Board of Governors of the Federal Reserve
System. No person may serve for more than 6 years in any one of
the following positions: general counsel, deputy general
counsel, senior adviser, director, deputy director, senior
associate director, and assistant director.''.
(c) Office Staff for Each Member of the Board of Governors.--
Section 11(t) of the Federal Reserve Act, as amended by subsection (b),
is further amended by adding at the end the following: ``Each member of
the Board of Governors of the Federal Reserve System may employ 4
individuals for the purpose of staffing the member's office, with such
individuals selected by such member and the salaries of such
individuals set by such member.''.
(d) GAO Study.--
(1) In general.--The Comptroller General of the United
States shall carry out a study on--
(A) employee pay and the employee pay scale used by
the Board of Governors of the Federal Reserve System,
including--
(i) how individual employee compensation
relates to job function, educational
attainment, and work experience; and
(ii) how the pay scale compares to the pay
scales used by other Federal departments and
agencies, especially other financial
regulators; and
(B) requiring the Board of Governors of the Federal
Reserve System to be funded through the regular
appropriations process.
(2) Report.--Not later than the end of the 180-day period
beginning on the date of the enactment of this Act, the
Comptroller General shall issue a report to the Congress
containing--
(A) all findings and determinations made by the
Comptroller General in carrying out the study required
under paragraph (1);
(B) recommendations on how to make the pay scale
used by the Board of Governors more consistent with pay
scales used by other Federal departments and agencies;
and
(C) a report on the pay amounts for employees at
the Board of Governors, broken down by division and job
function.
SEC. 5. VICE CHAIRMAN FOR SUPERVISION REPORT REQUIREMENT.
Section 10 of the Federal Reserve Act is amended--
(1) by redesignating paragraph (12) as paragraph (11); and
(2) in paragraph (11), as so redesignated, by adding at the
end the following: ``In each such appearance, the Vice Chairman
for Supervision shall provide written testimony that includes
the status of all pending and anticipated rulemakings that are
being made by the Board of Governors of the Federal Reserve
System. If, at the time of any appearance described in this
paragraph, the position of Vice Chairman for Supervision is
vacant, the Vice Chairman for the Board of Governors of the
Federal Reserve System (who has the responsibility to serve in
the absence of the Chairman) shall appear instead and provide
the required written testimony. If, at the time of any
appearance described in this paragraph, both Vice Chairman
positions are vacant, the Chairman of the Board of Governors of
the Federal Reserve System shall appear instead and provide the
required written testimony.''.
SEC. 6. FEDERAL RESERVE COMMUNICATIONS WITH CONGRESS.
Section 2B of the Federal Reserve Act (12 U.S.C. 225b) is amended--
(1) in subsection (a), by adding at the end the following:
``(3) Question period.--During any appearance before a
committee of the Congress, the Chairman or any other official
or employee of the Board of Governors making such appearance
shall remain as long as members of the committee have
questions, but no later than 5 p.m.'';
(2) in subsection (b)--
(A) in the heading for such subsection, by striking
``Report'' and inserting ``Reports, Questions, and
Meetings'';
(B) by striking ``The Board'' and inserting the
following:
``(1) In general.--The Board''; and
(C) by adding at the end the following:
``(2) Responses to congressional committee questions.--
``(A) In general.--Not later than the end of the 6-
week period following the date on which any member or
employee of the Board of Governors of the Federal
Reserve System appears before a committee of the
Congress, the Board shall respond, in writing, to any
questions submitted by such committee.
``(B) Inability to meet deadline.--If the written
response described under subparagraph (A) cannot be
provided within the 6-week period described under such
subparagraph, the Chairman of the Board shall inform
the chairman of the appropriate committee, in writing,
within such 6-week period--
``(i) as to why the Board is unable to
provide the written response within the 6-week
period; and
``(ii) the expected date on which the Board
will respond to such questions.
``(3) Congressional meeting request accountability.--
``(A) In general.--Upon receiving a meeting request
from a member or staff member serving on the Committee
of Financial Services or Budget of the House of
Representatives or the Committee of Banking, Housing,
and Urban Affairs or Budget of the Senate, the Board of
Governors of the Federal Reserve System shall--
``(i) respond, within 3 business days, to
notify such member or staff member that the
request has been received; and
``(ii) include in such response whether the
meeting request can be accommodated and, if so,
the dates and times when officers and employees
of the Board are available for such meeting.
``(B) Inability to accommodate meeting.--If, in a
response described under subparagraph (A), the Board
states that the meeting cannot be accommodated within
the 2-week period following such response, the Chairman
of the Board shall accompany such response with a
detailed written explanation to the chairman of the
committee as to why the meeting cannot be accommodated
within such period and when the request will be
accommodated.
``(4) Salary freeze while in violation.--During any period
of time with respect to which the Board of Governors or the
Chairman of the Board of Governors is in violation of any
provision of this subsection, no employee of the Board of
Governors may receive an increase in salary or other
compensation.''.
SEC. 7. TRANSPARENCY OF REGULATORY ACTIVITIES.
(a) Stress Test Rulemaking, GAO Review, and Publication of
Results.--Section 165(i)(1)(B) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5365(i)(1)(B)) is amended--
(1) by amending clause (i) to read as follows:
``(i) shall--
``(I) issue regulations, after
providing for public notice and
comment, that provide for at least 3
different sets of conditions under
which the evaluation required by this
subsection shall be conducted,
including baseline, adverse, and
severely adverse, and methodologies
including models used to estimate
losses on certain assets;
``(II) provide copies of such
regulations to the Comptroller General
of the United States and the Panel of
Economic Advisors of the Congressional
Budget Office before publishing such
regulations;''; and
(2) in clause (v), by inserting before the period the
following: ``, including any results of a resubmitted test''.
(b) Publication of the Number of Supervisory Letters Sent to the
Largest Bank Holding Companies.--Section 165 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5365) is amended
by adding at the end the following:
``(l) Publication of Supervisory Letter Information.--The Board of
Governors shall publicly disclose--
``(1) the aggregate number of supervisory letters sent to
bank holding companies described in subsection (a) since the
date of the enactment of this section, and keep such number
updated; and
``(2) the aggregate number of such letters that are
designated as `Matters Requiring Attention' and the aggregate
number of such letters that are designated as `Matters
Requiring Immediate Attention'.''.
(c) Disclosure of Audits and Reviews to Appropriate Committees.--
(1) In general.--Not later than the end of the 30-day
period beginning on the date of the enactment of this Act, the
Board of Governors of the Federal Reserve System shall submit
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate unredacted copies of--
(A) the Board of Governors' Review of Regulatory
Supervisory Audit;
(B) the Board of Governors' 2003-2008 Performance
Review; and
(C) each performance review performed by the Board
of Governors after the date of the enactment of this
Act.
(2) Notice of sensitive information.--The Board of
Governors shall ensure that the documents described under
paragraph (1) are accompanied by a list of any sections in such
documents that the Board of Governors deems to be sensitive
information that should not be made public.
SEC. 8. TREATMENT OF CERTAIN DIRECTORS AND PRESIDENTS.
(a) Elimination of Class C Directors.--Section 4 of the Federal
Reserve Act is amended--
(1) in the provision enumerated ``Fifth'' of the fourth
undesignated paragraph, by striking ``and Class C'';
(2) in the ninth undesignated paragraph, by striking
``classes A, B, and C'' and inserting ``classes A and B'';
(3) in the tenth undesignated paragraph, by striking
``three members'' and inserting ``four members'';
(4) in the eleventh undesignated paragraph, by striking
``three members'' and inserting ``five members'';
(5) by striking the twelfth and fifteenth undesignated
paragraphs;
(6) by amending the twentieth undesignated paragraph to
read as follows:
``(20) Designation of chairman and deputy chairman.--
``(A) Designation of chairman.--
``(i) In general.--One of the class A or B
directors who has tested banking experience
shall be designated by the Board of Governors
of the Federal Reserve System as chairman of
the board of directors of the Federal reserve
bank and as Federal reserve agent.
``(ii) Duties.--The chairman shall--
``(I) maintain, under regulations
to be established by the Board of
Governors of the Federal Reserve
System, a local office of said board on
the premises of the Federal reserve
bank;
``(II) make regular reports to the
Board of Governors of the Federal
Reserve System; and
``(III) act as the official
representative of the Board of
Governors for the performance of the
functions conferred upon it by this
Act.
``(iii) Compensation.--The chairman shall
receive an annual compensation to be fixed by
the Board of Governors of the Federal Reserve
System and paid monthly by the Federal reserve
bank to which the chairman is designated.
``(B) Designation of deputy chairman.--One of the
class A or B directors shall be appointed by the Board
of Governors of the Federal Reserve System as deputy
chairman to exercise the powers of the chairman of the
board when necessary.''; and
(7) by amending the twenty-fourth undesignated paragraph to
read as follows:
``(24) Term of directors; vacancies.--
``(A) Term of directors.--Every director of a
Federal reserve bank shall hold office for a term of
three years, and such terms shall be staggered, from
the date of the enactment of this paragraph, such
that--
``(i) with respect to the four class A
directors, one director's term shall expire in
each of the first and second years and two
directors' terms shall expire in the third
year; and
``(ii) with respect to the five class B
directors, one director's term shall expire in
the first year and two directors' terms shall
expire in each of the second and third years.
``(B) Vacancies.--Vacancies that may occur in the
several classes of directors of Federal reserve banks
may be filled in the manner provided for the original
selection of such directors, such appointees to hold
office for the unexpired terms of their
predecessors.''.
(b) Appointment of Bank President and Vice President.--The
provision enumerated ``Fifth'' of the fourth undesignated paragraph of
section 4 of the Federal Reserve Act is amended by striking ``with the
approval of the Board of Governors of the Federal Reserve System,''.
SEC. 9. INTERNATIONAL TRAVEL AND NEGOTIATIONS.
(a) International Travel.--Section 11 of the Federal Reserve Act
(12 U.S.C. 248), as amended by section 4, is further amended by adding
at the end the following:
``(x) Temporary Authorization for International Travel.--
``(1) In general.--Members and employees of the Board of
Governors of the Federal Reserve System may not travel outside
of the United States for the purposes of performing any
function on behalf of the Board of Governors of the Federal
Reserve System after the end of the 2-year period beginning on
the date of enactment of this subsection.
``(2) Exception.--Paragraph (1) shall not apply to travel
through another country for purposes of traveling from one part
of the United States to another part of the United States.''.
(b) International Negotiations.--Section 11 of the Federal Reserve
Act (12 U.S.C. 248), as amended by subsection (a), is further amended
by adding at the end the following:
``(y) International Negotiations.--
``(1) Notice of negotiations; consultation.--At least 90
calendar days before any Member or employee of the Board of
Governors of the Federal Reserve System enters into
negotiations with any foreign or multinational entity, the
Board of Governors shall--
``(A) issue a notice of negotiations to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate;
``(B) make such notice available to the public,
including on the website of the Board of Governors; and
``(C) solicit public comment, and consult with the
committees described under subparagraph (A), with
respect to the topic matter, scope, and goals of the
negotiations.
``(2) Public reports on negotiations.--After the end of any
negotiation described under paragraph (1), the Board of
Governors shall issue a public report on the topics that were
discussed at the negotiation and any new or revised rulemakings
or policy changes that the Board of Governors believe should be
enacted as a result of the negotiations.
``(3) Notice of agreements; consultation.--At least 90
calendar days before any Member or employee of the Board of
Governors of the Federal Reserve System enters into any
agreement with any foreign or multinational entity, the Board
of Governors shall--
``(A) issue a notice of agreement to the Committee
on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban
Affairs of the Senate;
``(B) make such notice available to the public,
including on the website of the Board of Governors; and
``(C) consult with such committees with respect to
the nature of the agreement and any anticipated effects
such agreement will have on the economy.''.
SEC. 10. IMPROVEMENTS TO THE FINANCIAL INSTITUTIONS EXAMINATION
COUNCIL.
(a) Economic Analysis.--Section 1008 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3305) is
amended by adding at the end the following:
``(d) Consideration of Economic Impacts.--
``(1) In general.--Before issuing any regulation, the
Council shall--
``(A) clearly identify the nature and source of the
problem that the proposed regulation is designed to
address, as well as assess the significance of that
problem, to enable assessment of whether any new
regulation is warranted;
``(B) assess the costs and benefits, both
qualitative and quantitative, of the intended
regulation and propose or adopt a regulation only on a
reasoned determination that the benefits of the
intended regulation outweigh the costs of the
regulation;
``(C) identify and assess available alternatives to
the regulation that were considered, including
modification of an existing regulation, together with
an explanation of why the regulation meets the
regulatory objectives more effectively than the
alternatives; and
``(D) ensure that any regulation is accessible,
consistent, written in plain language, and easy to
understand and shall measure, and seek to improve, the
actual results of regulatory requirements.
``(2) Considerations and actions.--
``(A) Required actions.--In deciding whether and
how to regulate, the Council shall assess the costs and
benefits of available regulatory alternatives,
including the alternative of not regulating, and choose
the approach that maximizes net benefits. Specifically,
the Council shall--
``(i) evaluate whether, consistent with
obtaining regulatory objectives, the regulation
is tailored to impose the least burden on
society, including market participants,
individuals, businesses of differing sizes, and
other entities (including State and local
governmental entities), taking into account, to
the extent practicable, the cumulative costs of
regulations; and
``(ii) evaluate whether the regulation is
inconsistent, incompatible, or duplicative of
other Federal regulations.
``(B) Additional considerations.--In addition, in
making a reasoned determination of the costs and
benefits of a potential regulation, the Council shall,
to the extent that each is relevant to the particular
proposed regulation, take into consideration the impact
of the regulation on--
``(i) investor choice;
``(ii) market liquidity in the securities
markets;
``(iii) small businesses;
``(iv) economic growth;
``(v) cost and access to capital;
``(vi) market stability;
``(vii) global competitiveness;
``(viii) job creation;
``(ix) rate of inflation; and
``(x) employment levels.
``(3) Explanation and comments.--The Council shall explain
in its final rule the nature of comments that it received,
including those from the industry or consumer groups concerning
the potential costs or benefits of the proposed rule or
proposed rule change, and shall provide a response to those
comments in its final rule, including an explanation of any
changes that were made in response to those comments and the
reasons that the Council did not incorporate those industry
group concerns related to the potential costs or benefits in
the final rule.
``(4) Post-adoption impact assessment.--
``(A) In general.--Whenever the Council adopts or
amends a regulation designated as a `major rule' within
the meaning of section 804(2) of title 5, United States
Code, it shall state, in its adopting release, the
following:
``(i) The purposes and intended
consequences of the regulation.
``(ii) Appropriate post-implementation
quantitative and qualitative metrics to measure
the economic impact of the regulation and to
measure the extent to which the regulation has
accomplished the stated purposes.
``(iii) The assessment plan that will be
used, consistent with the requirements of
subparagraph (B), to assess whether the
regulation has achieved the stated purposes.
``(iv) Any reasonably foreseeable indirect
effects that may result from the regulation.
``(B) Requirements of assessment plan and report.--
``(i) Requirements of plan.--The assessment
plan required under this paragraph shall
consider the costs, benefits, and intended and
unintended consequences of the regulation. The
plan shall specify the data to be collected,
the methods for collection and analysis of the
data and a date for completion of the
assessment. The assessment plan shall include
an analysis of any jobs added or lost as a
result of the regulation, differentiating
between public and private sector jobs.
``(ii) Submission and publication of
report.--The Council shall, not later than 2
years after the publication of the adopting
release, cause the assessment report to be
published in the Federal Register for notice
and comment. If the Council determines, at
least 90 days before such date, that an
extension is necessary, the Council shall
public a notice of such extension in the
Federal Register, along with the specific
reasons why the extension is necessary. Any
material modification of the plan, as necessary
to assess unforeseen aspects or consequences of
the regulation, shall be promptly published in
the Federal Register for notice and comment.
``(iii) Data collection not subject to
notice and comment requirements.--If the
Council has published its assessment plan for
notice and comment, specifying the data to be
collected and method of collection, at least 30
days prior to adoption of a final regulation or
amendment, such collection of data shall not be
subject to the notice and comment requirements
in section 3506(c) of title 44, United States
Code (commonly referred to as the Paperwork
Reduction Act). Any material modifications of
the plan that require collection of data not
previously published for notice and comment
shall also be exempt from such requirements if
the Council has published notice for comment in
the Federal Register of the additional data to
be collected, at least 30 days prior to
initiation of data collection.
``(iv) Final action.--Not later than 180
days after publication of the assessment report
in the Federal Register, the Council shall
issue for notice and comment a proposal to
amend or rescind the regulation, or publish a
notice that the Council has determined that no
action will be taken on the regulation. Such a
notice will be deemed a final agency action.
``(5) Covered regulations and other actions.--Solely as
used in this subsection, the term `regulation'--
``(A) means a statement of general applicability
and future effect that is designed to implement,
interpret, or prescribe law or policy or to describe
the procedure or practice requirements of the Council,
including rules, orders of general applicability,
interpretive releases, and other statements of general
applicability that the Council intends to have the
force and effect of law; and
``(B) does not include--
``(i) a regulation issued in accordance
with the formal rulemaking provisions of
section 556 or 557 of title 5, United States
Code;
``(ii) a regulation that is limited to the
organization, management, or personnel matters
of the Council;
``(iii) a regulation promulgated pursuant
to statutory authority that expressly prohibits
compliance with this provision; and
``(iv) a regulation that is certified by
the Council to be an emergency action, if such
certification is published in the Federal
Register.''.
(b) Ethics Standards.--Section 1008 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3305), as
amended by subsection (a), is further amended by adding at the end the
following:
``(e) Ethics Standards.--
``(1) Prohibited and restricted financial interests and
transactions.--The members and employees of the Council shall
be subject to the provisions under section 4401.102 of title 5,
Code of Federal Regulations, to the same extent as such
provisions apply to an employee of the Securities and Exchange
Commission.
``(2) Treatment of brokerage accounts and availability of
account statements.--The members and employees of the Council
shall--
``(A) disclose all brokerage accounts that they
maintain, as well as those in which they control
trading or have a financial interest (including managed
accounts, trust accounts, investment club accounts, and
the accounts of spouses or minor children who live with
the member or employee); and
``(B) with respect to any securities account that
the member or employee is required to disclose to the
Council, authorize their brokers and dealers to send
duplicate account statements directly to Council.
``(3) Prohibitions related to outside employment and
activities.--The members and employees of the Council shall be
subject to the prohibitions related to outside employment and
activities described under section 4401.103(c) of title 5, Code
of Federal Regulations, to the same extent as such prohibitions
apply to an employee of the Securities and Exchange Commission.
``(4) Additional ethics standards.--The members and
employees of the Council shall be subject to--
``(A) the employee responsibilities and conduct
regulations of the Office of Personnel Management under
part 735 of title 5, Code of Federal Regulations;
``(B) the canons of ethics contained in subpart C
of part 200 of title 17, Code of Federal Regulations,
to the same extent as such subpart applies to the
employees of the Securities and Exchange Commission;
and
``(C) the regulations concerning the conduct of
members and employees and former members and employees
contained in subpart M of part 200 of title 17, Code of
Federal Regulations, to the same extent as such subpart
applies to the employees of the Securities and Exchange
Commission.
``(f) Additional Employees Required To Make a Public Financial
Disclosure.--For purposes of the financial disclosure requirements
under part 2634 of title 5, Code of Federal Regulations, an employee of
the Council shall be deemed a public filer if the employee is an
attorney, accountant, examiner, auditor, investigator, or deals with
information technology security.
``(g) Disclosure of Staff Salaries and Financial Information.--The
Council shall make publicly available, on the website of the Council, a
searchable database that contains the names of all Members and
employees of the Council, and--
``(1) the yearly salary information for such individuals,
along with any non-salary compensation received by such
individuals; and
``(2) any financial disclosures required to be made by such
individuals.''.
SEC. 11. IMPROVEMENTS TO THE FINANCIAL STABILITY OVERSIGHT COUNCIL.
(a) Economic Analysis.--Section 111 of the Financial Stability Act
of 2010 (12 U.S.C. 5321) is amended by adding at the end the following:
``(k) Consideration of Economic Impacts.--
``(1) In general.--Before issuing any regulation, the
Council shall--
``(A) clearly identify the nature and source of the
problem that the proposed regulation is designed to
address, as well as assess the significance of that
problem, to enable assessment of whether any new
regulation is warranted;
``(B) assess the costs and benefits, both
qualitative and quantitative, of the intended
regulation and propose or adopt a regulation only on a
reasoned determination that the benefits of the
intended regulation outweigh the costs of the
regulation;
``(C) identify and assess available alternatives to
the regulation that were considered, including
modification of an existing regulation, together with
an explanation of why the regulation meets the
regulatory objectives more effectively than the
alternatives; and
``(D) ensure that any regulation is accessible,
consistent, written in plain language, and easy to
understand and shall measure, and seek to improve, the
actual results of regulatory requirements.
``(2) Considerations and actions.--
``(A) Required actions.--In deciding whether and
how to regulate, the Council shall assess the costs and
benefits of available regulatory alternatives,
including the alternative of not regulating, and choose
the approach that maximizes net benefits. Specifically,
the Council shall--
``(i) evaluate whether, consistent with
obtaining regulatory objectives, the regulation
is tailored to impose the least burden on
society, including market participants,
individuals, businesses of differing sizes, and
other entities (including State and local
governmental entities), taking into account, to
the extent practicable, the cumulative costs of
regulations; and
``(ii) evaluate whether the regulation is
inconsistent, incompatible, or duplicative of
other Federal regulations.
``(B) Additional considerations.--In addition, in
making a reasoned determination of the costs and
benefits of a potential regulation, the Council shall,
to the extent that each is relevant to the particular
proposed regulation, take into consideration the impact
of the regulation on--
``(i) investor choice;
``(ii) market liquidity in the securities
markets;
``(iii) small businesses;
``(iv) economic growth;
``(v) cost and access to capital;
``(vi) market stability;
``(vii) global competitiveness;
``(viii) job creation;
``(ix) rate of inflation; and
``(x) employment levels.
``(3) Explanation and comments.--The Council shall explain
in its final rule the nature of comments that it received,
including those from the industry or consumer groups concerning
the potential costs or benefits of the proposed rule or
proposed rule change, and shall provide a response to those
comments in its final rule, including an explanation of any
changes that were made in response to those comments and the
reasons that the Council did not incorporate those industry
group concerns related to the potential costs or benefits in
the final rule.
``(4) Post-adoption impact assessment.--
``(A) In general.--Whenever the Council adopts or
amends a regulation designated as a `major rule' within
the meaning of section 804(2) of title 5, United States
Code, it shall state, in its adopting release, the
following:
``(i) The purposes and intended
consequences of the regulation.
``(ii) Appropriate post-implementation
quantitative and qualitative metrics to measure
the economic impact of the regulation and to
measure the extent to which the regulation has
accomplished the stated purposes.
``(iii) The assessment plan that will be
used, consistent with the requirements of
subparagraph (B), to assess whether the
regulation has achieved the stated purposes.
``(iv) Any reasonably foreseeable indirect
effects that may result from the regulation.
``(B) Requirements of assessment plan and report.--
``(i) Requirements of plan.--The assessment
plan required under this paragraph shall
consider the costs, benefits, and intended and
unintended consequences of the regulation. The
plan shall specify the data to be collected,
the methods for collection and analysis of the
data and a date for completion of the
assessment. The assessment plan shall include
an analysis of any jobs added or lost as a
result of the regulation, differentiating
between public and private sector jobs.
``(ii) Submission and publication of
report.--The Council shall, not later than 2
years after the publication of the adopting
release, cause the assessment report to be
published in the Federal Register for notice
and comment. If the Council determines, at
least 90 days before such date, that an
extension is necessary, the Council shall
public a notice of such extension in the
Federal Register, along with the specific
reasons why the extension is necessary. Any
material modification of the plan, as necessary
to assess unforeseen aspects or consequences of
the regulation, shall be promptly published in
the Federal Register for notice and comment.
``(iii) Data collection not subject to
notice and comment requirements.--If the
Council has published its assessment plan for
notice and comment, specifying the data to be
collected and method of collection, at least 30
days prior to adoption of a final regulation or
amendment, such collection of data shall not be
subject to the notice and comment requirements
in section 3506(c) of title 44, United States
Code (commonly referred to as the Paperwork
Reduction Act). Any material modifications of
the plan that require collection of data not
previously published for notice and comment
shall also be exempt from such requirements if
the Council has published notice for comment in
the Federal Register of the additional data to
be collected, at least 30 days prior to
initiation of data collection.
``(iv) Final action.--Not later than 180
days after publication of the assessment report
in the Federal Register, the Council shall
issue for notice and comment a proposal to
amend or rescind the regulation, or publish a
notice that the Council has determined that no
action will be taken on the regulation. Such a
notice will be deemed a final agency action.
``(5) Covered regulations and other actions.--Solely as
used in this subsection, the term `regulation'--
``(A) means a statement of general applicability
and future effect that is designed to implement,
interpret, or prescribe law or policy or to describe
the procedure or practice requirements of the Council,
including rules, orders of general applicability,
interpretive releases, and other statements of general
applicability that the Council intends to have the
force and effect of law; and
``(B) does not include--
``(i) a regulation issued in accordance
with the formal rulemaking provisions of
section 556 or 557 of title 5, United States
Code;
``(ii) a regulation that is limited to the
organization, management, or personnel matters
of the Council;
``(iii) a regulation promulgated pursuant
to statutory authority that expressly prohibits
compliance with this provision; and
``(iv) a regulation that is certified by
the Council to be an emergency action, if such
certification is published in the Federal
Register.''.
(b) Ethics Standards.--Section 111 of the Financial Stability Act
of 2010 (12 U.S.C. 5321), as amended by subsection (a), is further
amended by adding at the end the following:
``(l) Ethics Standards.--
``(1) Prohibited and restricted financial interests and
transactions.--The members and employees of the Council shall
be subject to the provisions under section 4401.102 of title 5,
Code of Federal Regulations, to the same extent as such
provisions apply to an employee of the Securities and Exchange
Commission.
``(2) Treatment of brokerage accounts and availability of
account statements.--The members and employees of the Council
shall--
``(A) disclose all brokerage accounts that they
maintain, as well as those in which they control
trading or have a financial interest (including managed
accounts, trust accounts, investment club accounts, and
the accounts of spouses or minor children who live with
the member or employee); and
``(B) with respect to any securities account that
the member or employee is required to disclose to the
Council, authorize their brokers and dealers to send
duplicate account statements directly to Council.
``(3) Prohibitions related to outside employment and
activities.--The members and employees of the Council shall be
subject to the prohibitions related to outside employment and
activities described under section 4401.103(c) of title 5, Code
of Federal Regulations, to the same extent as such prohibitions
apply to an employee of the Securities and Exchange Commission.
``(4) Additional ethics standards.--The members and
employees of the Council shall be subject to--
``(A) the employee responsibilities and conduct
regulations of the Office of Personnel Management under
part 735 of title 5, Code of Federal Regulations;
``(B) the canons of ethics contained in subpart C
of part 200 of title 17, Code of Federal Regulations,
to the same extent as such subpart applies to the
employees of the Securities and Exchange Commission;
and
``(C) the regulations concerning the conduct of
members and employees and former members and employees
contained in subpart M of part 200 of title 17, Code of
Federal Regulations, to the same extent as such subpart
applies to the employees of the Securities and Exchange
Commission.
``(m) Additional Employees Required To Make a Public Financial
Disclosure.--For purposes of the financial disclosure requirements
under part 2634 of title 5, Code of Federal Regulations, an employee of
the Council shall be deemed a public filer if the employee is an
attorney, accountant, examiner, auditor, investigator, or deals with
information technology security.
``(n) Disclosure of Staff Salaries and Financial Information.--The
Council shall make publicly available, on the website of the Council, a
searchable database that contains the names of all Members and
employees of the Council, and--
``(1) the yearly salary information for such individuals,
along with any non-salary compensation received by such
individuals; and
``(2) any financial disclosures required to be made by such
individuals.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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