SEC Stabilization Act of 2023

SEC Stabilization Act of 2023

This bill expands the composition of the Securities and Exchange Commission from five commissioners to six, extends the term of the commissioners from five years to six, and creates an executive director position. If appointing two commissioners whose terms end on the same date, the President is prohibited from appointing individuals from the same political party.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4019 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4019

To amend the Securities Exchange Act of 1934 to expand and restructure 
the leadership of the Securities and Exchange Commission, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2023

Mr. Davidson (for himself and Mr. Emmer) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Exchange Act of 1934 to expand and restructure 
the leadership of the Securities and Exchange Commission, 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 ``SEC Stabilization Act of 2023''.

SEC. 2. ORGANIZATION OF THE SECURITIES AND EXCHANGE COMMISSION.

    (a) Composition of the Commission.--
            (1) In general.--Section 4(a) of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78d(a)) is amended--
                    (A) by striking ``five commissioners'' and 
                inserting ``6 commissioners'';
                    (B) by striking ``term of five years'' and 
                inserting ``term of 6 years'';
                    (C) by striking ``except (1)'' and inserting 
                ``except that''; and
                    (D) by striking ``, and (2) the terms of office of 
                the commissioners first taking office after the 
                enactment of this title shall expire as designated by 
                the President at the time of nomination, one at the end 
                of one year, one at the end of two years, one at the 
                end of three years, one at the end of four years, and 
                one at the end of five years, after the date of the 
                enactment of this title.'' and inserting ``. The terms 
                of the commissioners shall be staggered, with the terms 
                of 2 commissioners ending every 2 years. In appointing 
                any 2 commissioners whose terms end on the same date, 
                the President may not appoint individuals from the same 
                political party. Any rulemaking, enforcement action, or 
                investigation of the Commission may only be performed 
                if a majority of the commissioners have voted for such 
                rulemaking, enforcement action, or investigation.''.
            (2) Transition.--The President, in appointing the first 
        members of the Securities and Exchange Commission taking office 
        after the date of enactment of this Act, shall appoint such 
        members to terms with a length such that the terms of 2 
        commissioners end every 2 years, in accordance with section 
        4(a) of the Securities Exchange Act of 1934.
    (b) Executive Director.--The Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) is amended by inserting after section 4E the 
following:

``SEC. 4F. EXECUTIVE DIRECTOR.

    ``(a) Establishment.--The Commission shall have an Executive 
Director, who shall be appointed by the commissioners.
    ``(b) Limitation.--An individual who has served as Chairman of the 
Commission may not serve as the Executive Director.
    ``(c) Removal.--The Executive Director may be removed by a vote of 
the majority of commissioners.
    ``(d) Duties.--Notwithstanding sections 4A and 4B, and any other 
provision of law, the Executive Director shall oversee the operations 
of the Commission, including the hiring and compensation of Commission 
employees, the delegation of Commission functions to employees of the 
Commission, establishing Commission rules that are not subject to 
section 552 of title 5, United States Code, and all other internal-
Commission matters.
    ``(e) Direct Reports.--
            ``(1) In general.--Any employee of the Commission who, on 
        the day before the date of enactment of this section, reported 
        directly to the Chairman shall report directly to the Executive 
        Director.
            ``(2) Distribution to commissioners.--The Executive 
        Director shall promptly provide each commissioner with a copy 
        of any report received by the Executive Director.
    ``(f) Exception for Personal Staff.--Subsections (d) and (e) shall 
not apply to an employee in the personal office of a commissioner.
    ``(g) Meetings With Commissioners.--
            ``(1) Monthly meeting.--
                    ``(A) In general.--The Executive Director and the 
                commissioners of the Commission shall meet once per 
                month to discuss the state of affairs of the 
                Commission, including rulemakings, enforcement actions, 
                and investigations.
                    ``(B) Meeting minutes.--The Executive Director and 
                the commissioners shall make the meeting minutes from 
                each meeting under subparagraph (A) available to the 
                public.
            ``(2) Meeting at the call of commissioners.--In addition to 
        the monthly meetings required under paragraph (1)(A), the 
        Executive Director and the commissioners shall meet at the call 
        of 3 or more commissioners.''.
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