Primary Regulators of Insurance Vote Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1298 To amend the Financial Stability Act of 2010 to include the State insurance commissioner as a voting member of the Financial Stability Oversight Council, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 2, 2019 Mr. SCOTT of South Carolina (for himself and Mr. JONES) introduced the fol- lowing bill; which was read twice and referred to the Committee on Bank- ing, Housing, and Urban Affairs A BILL To amend the Financial Stability Act of 2010 to include the State insurance commissioner as a voting member of the Financial Stability Oversight Council, 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 ‘‘Primary Regulators 4 of Insurance Vote Act of 2019’’. 5 VerDate Sep 11 2014 03:13 May 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1298.IS S1298 kjohnson on DSK79L0C42 with BILLS 2 •S 1298 IS SEC. 2. ESTABLISHMENT OF STATE INSURANCE COMMIS- 1 SIONER AS A VOTING MEMBER OF THE FI- 2 NANCIAL STABILITY OVERSIGHT COUNCIL. 3 (a) IN GENERAL.—Section 111 of the Financial Sta- 4 bility Act of 2010 (12 U.S.C. 5321) is amended— 5 (1) in subsection (b)— 6 (A) in paragraph (1)— 7 (i) by redesignating subparagraph (J) 8 as subparagraph (K); 9 (ii) in subparagraph (I), by striking 10 ‘‘and’’ at the end; and 11 (iii) by inserting after subparagraph 12 (I) the following: 13 ‘‘(J) a State insurance commissioner, ap- 14 pointed by the President, by and with the ad- 15 vice and consent of the Senate, as described in 16 paragraph (4); and’’; and 17 (B) by adding at the end the following: 18 ‘‘(4) STATE INSURANCE COMMISSIONER.—In 19 selecting an individual to appoint as a State insur- 20 ance commissioner under paragraph (1)(J), the 21 President shall request a list of recommendations for 22 the individual from State insurance commissioners 23 through a process determined by the State insurance 24 commissioners. The recommendations shall not be 25 binding on the President. If the State insurance 26 VerDate Sep 11 2014 03:13 May 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1298.IS S1298 kjohnson on DSK79L0C42 with BILLS 3 •S 1298 IS commissioners fail to submit a list of recommenda- 1 tions within 15 business days after the date of the 2 request, the President may select an individual to 3 appoint without considering the recommendations.’’; 4 and 5 (2) in subsection (c)— 6 (A) in paragraph (1), by inserting ‘‘, the 7 State insurance commissioner shall serve for a 8 term of 4 years’’ after ‘‘6 years’’; 9 (B) in paragraph (2), by inserting at the 10 end the following: ‘‘For vacancy in the member- 11 ship of the State insurance commissioner serv- 12 ing under subsection (b)(1)(J), the President 13 shall appoint another State insurance commis- 14 sioner to serve on the Council for the remainder 15 of the term or until a successor is appointed 16 and confirmed under paragraph (5), whichever 17 is earlier.’’; and 18 (C) by adding at the end the following new 19 paragraph: 20 ‘‘(5) TERM OF STATE INSURANCE COMMIS- 21 SIONER.—Notwithstanding paragraph (1), if a suc- 22 cessor to the State insurance commissioner serving 23 under subsection (b)(1)(J) is not appointed and con- 24 firmed by the end of the term of service of such 25 VerDate Sep 11 2014 03:13 May 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1298.IS S1298 kjohnson on DSK79L0C42 with BILLS 4 •S 1298 IS commissioner, such commissioner may continue to 1 serve until the earlier of— 2 ‘‘(A) 18 months after the date on which 3 the term of service ends; or 4 ‘‘(B) the date on which a successor to such 5 member is appointed and confirmed.’’. 6 (b) TECHNICAL AND CONFORMING AMENDMENT.— 7 Section 111(c)(4) of the Financial Stability Act of 2010 8 (12 U.S.C. 5321(c)(4)) is amended by striking ‘‘sub- 9 section (b)(1)(J)’’ and inserting ‘‘subsection (b)(1)(K)’’. 10 SEC. 3. REPEAL OF STATE INSURANCE COMMISSIONER AS 11 NONVOTING MEMBER OF FSOC. 12 (a) IN GENERAL.—Section 111(b)(2) of the Finan- 13 cial Stability Act of 2010 (12 U.S.C. 5321(b)(2)) is 14 amended by striking subparagraph (C) and redesignating 15 subparagraph (D) and (E) as subparagraphs (C) and (D), 16 respectively. 17 (b) TECHNICAL AND CONFORMING AMENDMENT.— 18 Section 111(c)(1) of the Financial Stability Act of 2010 19 (12 U.S.C. 5321(c)(1)) is amended by striking by ‘‘sub- 20 paragraphs (C), (D), and (E)’’ and inserting ‘‘subpara- 21 graphs (C) and (D)’’. 22 SEC. 4. TEMPORARY SERVICE; TRANSITION. 23 Notwithstanding the amendments made by this Act, 24 during the period beginning on the date of the enactment 25 VerDate Sep 11 2014 03:13 May 07, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1298.IS S1298 kjohnson on DSK79L0C42 with BILLS 5 •S 1298 IS of this Act and ending on the date on which the State 1 insurance commissioner is appointed and confirmed pursu- 2 ant to section 111(b)(1) of the Financial Stability Act of 3 2010 (12 U.S.C. 5321(b)(1)), as amended by section 2 4 of this Act, section 111(b)(2)(C) of the Financial Stability 5 Act of 2010 (12 U.S.C. 5321(b)(2)(C)), as in effect before 6 the date of enactment of this Act, shall continue to apply. 7 Æ VerDate Sep 11 2014 03:13 May 07, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1298.IS S1298 kjohnson on DSK79L0C42 with BILLS