Financial Stability Oversight Council Reform Act

I 117TH CONGRESS 1ST SESSION H. R. 528 To place the Financial Stability Oversight Council and the Office of Financial Research under the regular appropriations process, to provide for certain quarterly reporting and public notice and comment requirements for the Office of Financial Research, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 28, 2021 Mr. EMMER introduced the following bill; which was referred to the Committee on Financial Services A BILL To place the Financial Stability Oversight Council and the Office of Financial Research under the regular appro- priations process, to provide for certain quarterly report- ing and public notice and comment requirements for the Office of Financial Research, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Financial Stability 4 Oversight Council Reform Act’’. 5 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 528 IH SEC. 2. FUNDING. 1 (a) IN GENERAL.—Section 155 of the Financial Sta- 2 bility Act of 2010 (12 U.S.C. 5345) is amended— 3 (1) in subsection (b)— 4 (A) in paragraph (1), by striking ‘‘be im- 5 mediately available to the Office’’ and inserting 6 ‘‘be available to the Office, as provided for in 7 appropriation Acts’’; 8 (B) by striking paragraph (2); and 9 (C) by redesignating paragraph (3) as 10 paragraph (2); and 11 (2) in subsection (d), by amending the heading 12 to read as follows: ‘‘ASSESSMENT SCHEDULE.—’’. 13 (b) EFFECTIVE DATE.—The amendments made by 14 this section shall take effect on October 1, 2021. 15 SEC. 3. QUARTERLY REPORTING. 16 Section 153 of the Financial Stability Act of 2010 17 (12 U.S.C. 5343) is amended by adding at the end the 18 following: 19 ‘‘(g) QUARTERLY REPORTING.— 20 ‘‘(1) IN GENERAL.—Not later than 60 days 21 after the end of each quarter, the Office shall submit 22 reports on the Office’s activities to the Committees 23 on Appropriations of the House of Representatives 24 and the Senate, the Committee on Financial Serv- 25 ices of the House of Representatives, and the Com- 26 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 528 IH mittee on Banking, Housing, and Urban Affairs of 1 the Senate. 2 ‘‘(2) CONTENTS.—The reports required under 3 paragraph (1) shall include— 4 ‘‘(A) the obligations made during the pre- 5 vious quarter by object class, office, and activ- 6 ity; 7 ‘‘(B) the estimated obligations for the re- 8 mainder of the fiscal year by object class, office, 9 and activity; 10 ‘‘(C) the number of full-time equivalents 11 within the Office during the previous quarter; 12 ‘‘(D) the estimated number of full-time 13 equivalents within each office for the remainder 14 of the fiscal year; and 15 ‘‘(E) actions taken to achieve the goals, 16 objectives, and performance measures of the Of- 17 fice. 18 ‘‘(3) TESTIMONY.—At the request of any com- 19 mittee specified under paragraph (1), the Office 20 shall make officials available to testify on the con- 21 tents of the reports required under paragraph (1).’’. 22 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 528 IH SEC. 4. PUBLIC NOTICE AND COMMENT PERIOD. 1 Section 153(c) of the Financial Stability Act of 2010 2 (12 U.S.C. 5343(c)) is amended by adding at the end the 3 following: 4 ‘‘(3) PUBLIC NOTICE AND COMMENT PERIOD.— 5 The Office shall provide for a public notice and com- 6 ment period of not less than 90 days before issuing 7 any proposed report, rule, or regulation. 8 ‘‘(4) ADDITIONAL REPORT REQUIREMENTS.— 9 ‘‘(A) IN GENERAL.—Except as provided 10 under paragraph (3), the requirements under 11 section 553 of title 5, United States Code, shall 12 apply to a proposed report of the Office to the 13 same extent as such requirements apply to a 14 proposed rule of the Office. 15 ‘‘(B) EXCEPTION FOR CERTAIN RE- 16 PORTS.—This paragraph and paragraph (3) 17 shall not apply to a report required under sub- 18 section (g)(1) or section 154(d)(1).’’. 19 SEC. 5. ADDITIONAL DUTIES OF THE OFFICE OF FINANCIAL 20 RESEARCH. 21 Section 153 of the Financial Stability Act of 2010 22 (12 U.S.C. 5343), as amended by section 3, is further 23 amended by adding at the end the following new sub- 24 section: 25 ‘‘(h) ADDITIONAL DUTIES.— 26 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 528 IH ‘‘(1) ANNUAL WORK PLAN.— 1 ‘‘(A) IN GENERAL.—The Director shall, 2 after a period of 60 days for public notice and 3 comment, annually publish a detailed work plan 4 concerning the priorities of the Office for the 5 upcoming fiscal year. 6 ‘‘(B) REQUIREMENTS.—The work plan 7 shall include the following: 8 ‘‘(i) A unique alphanumeric identifier 9 and detailed description of any report, 10 study, working paper, grant, guidance, 11 data collection, or request for information 12 that is expected to be in progress during, 13 or scheduled to begin in, the upcoming fis- 14 cal year. 15 ‘‘(ii) For each item listed under clause 16 (i), a target date for any significant ac- 17 tions related to such item, including the 18 target date— 19 ‘‘(I) for the release of a report, 20 study, or working paper; 21 ‘‘(II) for, and topics of, a meet- 22 ing of a working paper group and 23 each solicitation of applications for 24 grants; and 25 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 528 IH ‘‘(III) for the issuance of guid- 1 ance, data collections, or requests for 2 information. 3 ‘‘(iii) A list of all technical and profes- 4 sional advisory committees that is expected 5 to be convened in the upcoming fiscal year 6 pursuant to section 152(h). 7 ‘‘(iv) The name and professional affili- 8 ations of each individual who served during 9 the previous fiscal year as an academic or 10 professional fellow pursuant to section 11 152(i). 12 ‘‘(v) A detailed description of the 13 progress made by primary financial regu- 14 latory agencies in adopting a unique alpha- 15 numeric system to identify legally distinct 16 entities that engage in financial trans- 17 actions (commonly known as a ‘Legal En- 18 tity Identifier’), including a list of regula- 19 tions requiring the use of such a system 20 and actions taken to ensure the adoption 21 of such a system by primary financial reg- 22 ulatory agencies. 23 ‘‘(2) PUBLIC REPORTS.— 24 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 528 IH ‘‘(A) CONSULTATION.—In preparing any 1 public report with respect to a specified entity, 2 class of entities, or financial product or service, 3 the Director shall consult with any Federal de- 4 partment or agency with expertise in regulating 5 the entity, class of entities, or financial product 6 or service. 7 ‘‘(B) REPORT REQUIREMENTS.—A public 8 report described in subparagraph (A) shall in- 9 clude— 10 ‘‘(i) an explanation of any changes 11 made as a result of a consultation under 12 this subparagraph and, with respect to any 13 changes suggested in such consultation 14 that were not made, the reasons that the 15 Director did not incorporate such changes; 16 and 17 ‘‘(ii) information on the date, time, 18 and nature of such consultation. 19 ‘‘(C) NOTICE AND COMMENT.—Before 20 issuing any public report described in subpara- 21 graph (A), the Director shall provide a period 22 of 90 days for public notice and comment on 23 the report. 24 ‘‘(3) CYBERSECURITY PLAN.— 25 VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 528 IH ‘‘(A) IN GENERAL.—The Office shall de- 1 velop and implement a cybersecurity plan that 2 uses appropriate safeguards that are adequate 3 to protect the integrity and confidentiality of 4 the data in the possession of the Office. 5 ‘‘(B) GAO REVIEW.—The Comptroller 6 General of the United States shall annually 7 audit the cybersecurity plan and its implemen- 8 tation described in subparagraph (A).’’. 9 Æ VerDate Sep 11 2014 02:22 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H528.IH H528 kjohnson on DSK79L0C42PROD with BILLS