Ensuring Diverse Leadership Act of 2019

II 116TH CONGRESS 1ST SESSION S. 65 To amend the Federal Reserve Act to require Federal Reserve banks to interview at least one individual reflective of gender diversity and one individual reflective of racial or ethnic diversity when appointing Federal Reserve bank presidents, and for other purposes. IN THE SENATE OF THE UNITED STATES JANUARY 9, 2019 Ms. HARRIS (for herself, Ms. WARREN, Mrs. GILLIBRAND, Mr. BOOKER, and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Federal Reserve Act to require Federal Re- serve banks to interview at least one individual reflective of gender diversity and one individual reflective of racial or ethnic diversity when appointing Federal Reserve bank presidents, 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 ‘‘Ensuring Diverse 4 Leadership Act of 2019’’. 5 SEC. 2. CONGRESSIONAL FINDINGS. 6 The Congress finds that— 7 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 2 •S 65 IS (1) while significant progress has occurred due 1 to the antidiscrimination amendments to the Federal 2 Reserve Act, barriers continue to pose significant ob- 3 stacles for candidates reflective of gender diversity 4 and racial or ethnic diversity for Federal Reserve 5 bank president positions in the Federal Reserve Sys- 6 tem; 7 (2) the continuing barriers described in para- 8 graph (1) merit the following amendment; 9 (3) Congress has received and reviewed testi- 10 mony and documentation of the historical lack of 11 gender, racial, and ethnic diversity from numerous 12 sources, including congressional hearings, scientific 13 reports, reports issued by public and private agen- 14 cies, news stories, and reports of related barriers by 15 organizations and individuals, which show that race- 16 , ethnicity-, and gender-neutral efforts alone are in- 17 sufficient to address the problem; 18 (4) the testimony and documentation described 19 in paragraph (3) demonstrate that barriers across 20 the United States prove problematic for full and fair 21 participation in developing monetary policy by indi- 22 viduals reflective of gender diversity and racial or 23 ethnic diversity; and 24 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 3 •S 65 IS (5) the testimony and documentation described 1 in paragraph (3) provide a strong basis that there 2 is a compelling need for the below amendment to ad- 3 dress the historical lack of gender, racial, and ethnic 4 diversity in the Federal Reserve regional bank presi- 5 dents selection process in the Federal Reserve Sys- 6 tem. 7 SEC. 3. FEDERAL RESERVE BANK PRESIDENTS. 8 The provision designated ‘‘fifth’’ of the fourth undes- 9 ignated paragraph of section 4 of the Federal Reserve Act 10 (12 U.S.C. 341) is amended by inserting after ‘‘employ- 11 ees.’’ the following: ‘‘In making the appointment of a 12 president, the bank shall interview at least one individual 13 reflective of gender diversity and one individual reflective 14 of racial or ethnic diversity. Not later than January 1 of 15 each year, the bank shall submit to the Committee on 16 Banking, Housing, and Urban Affairs of the Senate, the 17 Committee on Financial Services of the House of Rep- 18 resentatives, and the Office of Inspector General for the 19 Board of Governors of the Federal Reserve System and 20 the Consumer Financial Protection Bureau a report de- 21 scribing the applicant pool demographic for the preceding 22 fiscal year.’’. 23 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 4 •S 65 IS SEC. 4. TECHNICAL ADJUSTMENTS. 1 (a) AMERICAN COMPETITIVENESS AND WORKFORCE 2 IMPROVEMENT ACT OF 1998.—Section 418(b) of the 3 American Competitiveness and Workforce Improvement 4 Act of 1998 (8 U.S.C. 1184 note) is amended by striking 5 ‘‘Chairman of the Board of Governors’’ and inserting 6 ‘‘Chair of the Board of Governors’’. 7 (b) BRETTON WOODS AGREEMENTS ACT.—The 8 Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) 9 is amended— 10 (1) in section 4(a), by striking ‘‘Chairman of 11 the Board of Governors’’ and inserting ‘‘Chair of the 12 Board of Governors’’; and 13 (2) in section 45(a)(1), by striking ‘‘chairman 14 of the board of Governors’’ and inserting ‘‘Chair of 15 the Board of Governors’’. 16 (c) DODD-FRANK WALL STREET REFORM AND CON- 17 SUMER PROTECTION ACT.—The Dodd-Frank Wall Street 18 Reform and Consumer Protection Act (12 U.S.C. 5301 19 et seq.) is amended by striking ‘‘Chairman of the Board’’ 20 each place such term appears and inserting ‘‘Chair of the 21 Board’’. 22 (d) EMERGENCY ECONOMIC STABILIZATION ACT OF 23 2008.—The Emergency Economic Stabilization Act of 24 2008 (12 U.S.C. 5201 et seq.) is amended by striking 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 5 •S 65 IS ‘‘Chairman of the Board’’ each place such term appears 1 and inserting ‘‘Chair of the Board’’. 2 (e) EMERGENCY LOAN GUARANTEE ACT.—Section 2 3 of the Emergency Loan Guarantee Act (15 U.S.C. 1841) 4 is amended by striking ‘‘Chairman of the Board of Gov- 5 ernors’’ and inserting ‘‘Chair of the Board of Governors’’. 6 (f) EMERGENCY STEEL LOAN GUARANTEE AND 7 EMERGENCY OIL AND GAS ACT OF 1999.—The Emer- 8 gency Steel Loan Guarantee and Emergency Oil and Gas 9 Act of 1999 (15 U.S.C. 1841 note) is amended— 10 (1) in section 101(e)(2)— 11 (A) by striking ‘‘Chairman of the Board of 12 Governors’’ and inserting ‘‘Chair of the Board 13 of Governors’’; and 14 (B) by striking ‘‘Chairman,’’ and inserting 15 ‘‘Chair,’’; and 16 (2) in section 201(d)(2)(B)— 17 (A) by striking ‘‘Chairman of the Board of 18 Governors’’ and inserting ‘‘Chair of the Board 19 of Governors’’; and 20 (B) by striking ‘‘Chairman,’’ and inserting 21 ‘‘Chair,’’. 22 (g) FARM CREDIT ACT OF 1971.—Section 23 4.9(d)(1)(C) of the Farm Credit Act of 1971 (12 U.S.C. 24 2160(d)(1)(C)) is amended by striking ‘‘Chairman of the 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 6 •S 65 IS Board of Governors’’ and inserting ‘‘Chair of the Board 1 of Governors’’. 2 (h) FEDERAL DEPOSIT INSURANCE ACT.—The Fed- 3 eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 4 amended by striking ‘‘Chairman of the Board of Gov- 5 ernors’’ each place such term appears and inserting 6 ‘‘Chair of the Board of Governors’’. 7 (i) FEDERAL RESERVE ACT.—The Federal Reserve 8 Act (12 U.S.C. 226 et seq.) is amended— 9 (1) by striking ‘‘chairman’’ each place such 10 term appears and inserting ‘‘chair’’; 11 (2) by striking ‘‘Chairman’’ each place such 12 term appears other than in section 11(r)(2)(B) and 13 inserting ‘‘Chair’’; 14 (3) in section 2, in the sixth undesignated para- 15 graph— 16 (A) in the second sentence, by striking 17 ‘‘his’’ and inserting ‘‘the Comptroller of the 18 Currency’s’’; and 19 (B) in the third sentence, by striking ‘‘his’’ 20 and inserting ‘‘the director’s’’; 21 (4) in section 4— 22 (A) in the third undesignated paragraph, 23 by striking ‘‘his office’’ and inserting ‘‘the Of- 24 fice of the Comptroller of the Currency’’; 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 7 •S 65 IS (B) in the fourth undesignated paragraph, 1 in the provision designated ‘‘fifth’’, by striking 2 ‘‘his’’ and inserting ‘‘the person’s’’; 3 (C) in the eighth undesignated paragraph, 4 by striking ‘‘his’’ and inserting ‘‘the chair’s’’; 5 (D) in the seventeenth undesignated para- 6 graph— 7 (i) by striking ‘‘his’’ and inserting 8 ‘‘the officer’s’’; and 9 (ii) by striking ‘‘he’’ and inserting 10 ‘‘the individual’’; 11 (E) in the twentieth undesignated para- 12 graph— 13 (i) by striking ‘‘He’’ each place such 14 term appears and inserting ‘‘The chair’’; 15 (ii) in the third sentence— 16 (I) by striking ‘‘his’’ and insert- 17 ing ‘‘the’’; and 18 (II) by striking ‘‘he’’ and insert- 19 ing a comma; and 20 (iii) in the fifth sentence, by striking 21 ‘‘he’’ and inserting ‘‘the chair’’; and 22 (F) in the twenty-first undesignated para- 23 graph, by striking ‘‘his’’ each place such term 24 appears and inserting ‘‘the agent’s’’; 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 8 •S 65 IS (5) in section 6, in the second undesignated 1 paragraph, by striking ‘‘he’’ and inserting ‘‘the 2 Comptroller of the Currency’’; 3 (6) in section 9A(c)(2)(C), by striking ‘‘he’’ and 4 inserting ‘‘the participant’’; 5 (7) in section 10— 6 (A) by striking ‘‘he’’ each place such term 7 appears and inserting ‘‘the member’’; 8 (B) in the second undesignated paragraph, 9 by striking ‘‘his’’ and inserting ‘‘the member’s’’; 10 and 11 (C) in the fourth undesignated para- 12 graph— 13 (i) in the second sentence, by striking 14 ‘‘his’’ and inserting ‘‘the chair’s’’; 15 (ii) in the fifth sentence, by striking 16 ‘‘his’’ and inserting ‘‘the member’s’’; and 17 (iii) in the sixth sentence, by striking 18 ‘‘his’’ and inserting ‘‘the member’s’’; 19 (8) in section 12, by striking ‘‘his’’ and insert- 20 ing ‘‘the member’s’’; 21 (9) in section 13, in the eleventh undesignated 22 paragraph, by striking ‘‘his’’ and inserting ‘‘the 23 assured’s’’; 24 (10) in section 16— 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 9 •S 65 IS (A) by striking ‘‘he’’ each place such term 1 appears and inserting ‘‘the agent’’; 2 (B) in the seventh undesignated para- 3 graph— 4 (i) by striking ‘‘his’’ and inserting 5 ‘‘the agent’s’’; and 6 (ii) by striking ‘‘himself’’ and insert- 7 ing ‘‘the agent’’; 8 (C) in the tenth undesignated paragraph, 9 by striking ‘‘his’’ and inserting ‘‘the Sec- 10 retary’s’’; and 11 (D) in the fifteenth undesignated para- 12 graph, by striking ‘‘his’’ and inserting ‘‘the 13 agent’s’’; 14 (11) in section 18, in the eighth undesignated 15 paragraph, by striking ‘‘he’’ and inserting ‘‘the Sec- 16 retary of the Treasury’’; 17 (12) in section 22— 18 (A) in subsection (f), by striking ‘‘his’’ and 19 inserting ‘‘the director’s or officer’s’’; and 20 (B) in subsection (g)— 21 (i) in paragraph (1)(D)— 22 (I) by striking ‘‘him’’ and insert- 23 ing ‘‘the officer’’; and 24 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 10 •S 65 IS (II) by striking ‘‘he’’ and insert- 1 ing ‘‘the officer’’; and 2 (ii) in paragraph (2)(A), by striking 3 ‘‘him as his’’ and inserting ‘‘the officer as 4 the officer’s’’; and 5 (13) in section 25A— 6 (A) in the twelfth undesignated para- 7 graph— 8 (i) by striking ‘‘he’’ each place such 9 term appears and inserting ‘‘the member’’; 10 and 11 (ii) by striking ‘‘his’’ and inserting 12 ‘‘the member’s’’; 13 (B) in the fourteenth undesignated para- 14 graph, by striking ‘‘his’’ and inserting ‘‘the di- 15 rector’s or officer’s’’; and 16 (C) in the twenty-second undesignated 17 paragraph, by striking ‘‘his’’ each place such 18 term appears and inserting ‘‘such individual’s’’. 19 (j) FEDERAL RESERVE REFORM ACT OF 1977.—Sec- 20 tion 204(b) of the Federal Reserve Reform Act of 1977 21 (12 U.S.C. 242 note) is amended by striking ‘‘Chairman 22 or Vice Chairman of the Board of Governors’’ and insert- 23 ing ‘‘Chair or Vice Chair of the Board of Governors’’. 24 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 11 •S 65 IS (k) FINANCIAL INSTITUTIONS REFORM, RECOVERY, 1 AND ENFORCEMENT ACT OF 1989.—The Financial Insti- 2 tutions Reform, Recovery, and Enforcement Act of 1989 3 is amended— 4 (1) in section 308 (12 U.S.C. 1463 note)— 5 (A) in subsection (a), by striking ‘‘Chair- 6 man of the Board of Governors’’ and inserting 7 ‘‘Chair of the Board of Governors’’; and 8 (B) in subsection (c), by striking ‘‘Chair- 9 man of the Board of Governors’’ and inserting 10 ‘‘Chair of the Board of Governors’’; 11 (2) in section 1001(a) (12 U.S.C. 1811 note), 12 by striking ‘‘Chairman of the Board of Governors’’ 13 and inserting ‘‘Chair of the Board of Governors’’; 14 and 15 (3) in section 1205(b)(1)(A) (12 U.S.C. 1818 16 note)— 17 (A) by striking ‘‘Chairman of the Board of 18 Governors’’ and inserting ‘‘Chair of the Board 19 of Governors’’; and 20 (B) by striking ‘‘Chairman’s’’ and insert- 21 ing ‘‘Chair’s’’. 22 (l) FOOD, CONSERVATION, AND ENERGY ACT OF 23 2008.—Section 13106(a) of the Food, Conservation, and 24 Energy Act of 2008 (7 U.S.C. 2 note) is amended by strik- 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 12 •S 65 IS ing ‘‘Chairman of the Board of Governors’’ and inserting 1 ‘‘Chair of the Board of Governors’’. 2 (m) HOUSING AND COMMUNITY DEVELOPMENT ACT 3 OF 1992.—Section 1313(a)(3) of the Housing and Com- 4 munity Development Act of 1992 (12 U.S.C. 4513(a)(3)) 5 is amended— 6 (1) in the heading, by striking ‘‘CHAIRMAN’’ 7 and inserting ‘‘CHAIR’’; 8 (2) by striking ‘‘Chairman of the Board of Gov- 9 ernors’’ each place such term appears and inserting 10 ‘‘Chair of the Board of Governors’’; and 11 (3) by striking ‘‘Chairman regarding’’ and in- 12 serting ‘‘Chair regarding’’. 13 (n) INSPECTOR GENERAL ACT OF 1978.—Section 8G 14 of the Inspector General Act of 1978 is amended by strik- 15 ing ‘‘Chairman of the Board of Governors’’ each place 16 such term appears and inserting ‘‘Chair of the Board of 17 Governors’’. 18 (o) INTERNATIONAL LENDING SUPERVISION ACT OF 19 1983.—Section 908(b)(3)(C) of the International Lending 20 Supervision Act of 1983 (12 U.S.C. 3907(b)(3)(C)) is 21 amended by striking ‘‘Chairman of the Board of Gov- 22 ernors’’ and inserting ‘‘Chair of the Board of Governors’’. 23 (p) NEIGHBORHOOD REINVESTMENT CORPORATION 24 ACT.—Section 604(a)(3) of the Neighborhood Reinvest- 25 VerDate Sep 11 2014 04:27 Jan 16, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S65.IS S65 kjohnson on DSK79L0C42 with BILLS 13 •S 65 IS ment Corporation Act (42 U.S.C. 8103(a)(3)) is amended 1 by striking ‘‘Chair [Text truncated for display. 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