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115th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 115-293
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FINANCIAL STABILITY OVERSIGHT COUNCIL INSURANCE MEMBER CONTINUITY ACT
_______
September 5, 2017.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 3110]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3110) to amend the Financial Stability Act of
2010 to modify the term of the independent member of the
Financial Stability Oversight Council, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
Purpose and Summary
On June 29, 2017, H.R. 3110, the Financial Stability
Oversight Council Insurance Member Continuity Act was
introduced by Rep. Randy Hultgren.
H.R. 3110 would amend Section 111(c) of Title I of the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) to alter the term of the Independent Member
with insurance expertise of the Financial Stability Oversight
Council (FSOC). The legislation would permit the Independent
Member, after the expiration of their term, to serve on the
FSOC until the earlier of 18 months after the date on which the
term of service ends or the date on which a successor to such
member is appointed and confirmed.
Background and Need for Legislation
H.R. 3110 will provide continuity and certainty for
insurance representation on the FSOC, address a statutory
oversight, and clarify the term of the Independent Member.
Under Title I of the Dodd-Frank Act, also known as the
Financial Stability Act of 2010, the FSOC's voting members
include an Independent Member with insurance expertise, who is
appointed by the President and confirmed by the Senate. The
Independent Member is the only member appointed by the
President to specifically serve on FSOC.
Title I of the Dodd-Frank Act established a six-year term
for the Independent Member. The current incumbent's term would
expire on September 30, 2017. Absent the appointment and
confirmation of a successor, the expiration of the Independent
Member's term would leave the FSOC without a voting member with
insurance expertise. There are no contingency plans for the
status of the Independent Member's position following the six-
year term's expiration. The Dodd-Frank Act is unclear if the
President can fill the position with an acting official
following the expiration of the Independent Member's term. H.R.
3110 removes this uncertainty and clarifies the term of the
Independent Member.
Hearings
The Committee on Financial Services did not hold any
hearings to examine matters related to H.R. 3110.
Committee Consideration
The Committee on Financial Services met in open session on
July 25, 2017, and ordered H.R. 3110 to be reported favorably
to the House without amendment by a recorded vote of 60 yeas to
0 nays (recorded vote no. FC-70), a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. The
sole recorded vote was on a motion by Chairman Hensarling to
report the bill favorably to the House without amendment. The
motion was agreed to by a recorded vote of 60 yeas to 0 nays
(Record vote no. FC-70 a quorum being present.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 3110
will create continuity for insurance representation on the
FSOC, address a statutory oversight, and clarify the term of
the Independent Member by permitting the Independent Member,
after the expiration of their term, to serve on the FSOC until
the earlier of 18 months after the date on which the term of
service ends or the date on which a successor to such member is
appointed and confirmed.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 16, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3110, the
Financial Stability Oversight Council Insurance Member
Continuity Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Stephen
Rabent.
Sincerely,
Keith Hall, Director.
Enclosure.
H.R. 3110--Financial Stability Oversight Council Insurance Member
Continuity Act
Under current law, the Financial Stability Oversight
Council (FSOC) is composed of ten voting members; the heads of
nine federal financial agencies and an independent member with
insurance expertise appointed by the President, with the advice
and consent of the Senate. The independent member serves a six
year term. H.R. 3110 would allow the independent member to
continue to serve on the FSOC for up to 18 months after the end
of the member's term if a successor has not been appointed and
confirmed.
Based on information from the FSOC, CBO estimates that
implementing H.R. 3110 would cost less than $500,000. That
amount would cover the additional personnel costs for the
independent member until a successor is appointed. Under
current law, expenses of the FSOC are considered to be expenses
of the Office of Financial Research (OFR), which is direct
spending. The OFR is authorized to levy assessments, which are
recorded in the budget as revenues, on certain financial
institutions to offset its operating costs. Accordingly, CBO
estimates that the bill's net effect on the deficit would be
negligible.
Because enacting H.R. 3110 would affect direct spending and
revenues, pay-as-you-go procedures apply.
CBO estimates that enacting H.R. 3110 would not
significantly increase net direct spending or on-budget
deficits in any of the four consecutive 10-year periods
beginning in 2028.
H.R. 3110 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Stephen Rabent.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Federal Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, (115th Congress),
the following statement is made concerning directed
rulemakings: The Committee estimates that the bill requires no
directed rulemakings within the meaning of such section.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This Section cites H.R. 3110 as the ``Financial Stability
Oversight Council Insurance Member Continuity Act''.
Section 2. Financial Stability Oversight Council
This Section states that if a successor to the independent
member of FSOC is not appointed and confirmed by the end of the
term of service, the independent member may continue to service
until the earlier of (1) 18 months after the date on which the
term of service ends or (2) the date on which a successor to
the independent member is appointed and confirmed.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
FINANCIAL STABILITY ACT OF 2010
* * * * * * *
TITLE I--FINANCIAL STABILITY
* * * * * * *
Subtitle A--Financial Stability Oversight Council
SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.
(a) Establishment.--Effective on the date of enactment of
this Act, there is established the Financial Stability
Oversight Council.
(b) Membership.--The Council shall consist of the following
members:
(1) Voting members.--The voting members, who shall
each have 1 vote on the Council shall be--
(A) the Secretary of the Treasury, who shall
serve as Chairperson of the Council;
(B) the Chairman of the Board of Governors;
(C) the Comptroller of the Currency;
(D) the Director of the Bureau;
(E) the Chairman of the Commission;
(F) the Chairperson of the Corporation;
(G) the Chairperson of the Commodity Futures
Trading Commission;
(H) the Director of the Federal Housing
Finance Agency;
(I) the Chairman of the National Credit Union
Administration Board; and
(J) an independent member appointed by the
President, by and with the advice and consent
of the Senate, having insurance expertise.
(2) Nonvoting members.--The nonvoting members, who
shall serve in an advisory capacity as a nonvoting
member of the Council, shall be--
(A) the Director of the Office of Financial
Research;
(B) the Director of the Federal Insurance
Office;
(C) a State insurance commissioner, to be
designated by a selection process determined by
the State insurance commissioners;
(D) a State banking supervisor, to be
designated by a selection process determined by
the State banking supervisors; and
(E) a State securities commissioner (or an
officer performing like functions), to be
designated by a selection process determined by
such State securities commissioners.
(3) Nonvoting member participation.--The nonvoting
members of the Council shall not be excluded from any
of the proceedings, meetings, discussions, or
deliberations of the Council, except that the
Chairperson may, upon an affirmative vote of the member
agencies, exclude the nonvoting members from any of the
proceedings, meetings, discussions, or deliberations of
the Council when necessary to safeguard and promote the
free exchange of confidential supervisory information.
(c) Terms; Vacancy.--
(1) Terms.--The independent member of the Council
shall serve for a term of 6 years, and each nonvoting
member described in subparagraphs (C), (D), and (E) of
subsection (b)(2) shall serve for a term of 2 years.
(2) Vacancy.--Any vacancy on the Council shall be
filled in the manner in which the original appointment
was made.
(3) Acting officials may serve.--In the event of a
vacancy in the office of the head of a member agency or
department, and pending the appointment of a successor,
or during the absence or disability of the head of a
member agency or department, the acting head of the
member agency or department shall serve as a member of
the Council in the place of that agency or department
head.
(4) Term of independent member.--Notwithstanding
paragraph (1), if a successor to the independent member
of the Council serving under subsection (b)(1)(J) is
not appointed and confirmed by the end of the term of
service of such member, such member may continue to
serve until the earlier of--
(A) 18 months after the date on which the
term of service ends; or
(B) the date on which a successor to such
member is appointed and confirmed.
(d) Technical and Professional Advisory Committees.--The
Council may appoint such special advisory, technical, or
professional committees as may be useful in carrying out the
functions of the Council, including an advisory committee
consisting of State regulators, and the members of such
committees may be members of the Council, or other persons, or
both.
(e) Meetings.--
(1) Timing.--The Council shall meet at the call of
the Chairperson or a majority of the members then
serving, but not less frequently than quarterly.
(2) Rules for conducting business.--The Council shall
adopt such rules as may be necessary for the conduct of
the business of the Council. Such rules shall be rules
of agency organization, procedure, or practice for
purposes of section 553 of title 5, United States Code.
(f) Voting.--Unless otherwise specified, the Council shall
make all decisions that it is authorized or required to make by
a majority vote of the voting members then serving.
(g) Nonapplicability of FACA.--The Federal Advisory Committee
Act (5 U.S.C. App.) shall not apply to the Council, or to any
special advisory, technical, or professional committee
appointed by the Council, except that, if an advisory,
technical, or professional committee has one or more members
who are not employees of or affiliated with the United States
Government, the Council shall publish a list of the names of
the members of such committee.
(h) Assistance From Federal Agencies.--Any department or
agency of the United States may provide to the Council and any
special advisory, technical, or professional committee
appointed by the Council, such services, funds, facilities,
staff, and other support services as the Council may determine
advisable.
(i) Compensation of Members.--
(1) Federal employee members.--All members of the
Council who are officers or employees of the United
States shall serve without compensation in addition to
that received for their services as officers or
employees of the United States.
(2) Compensation for non-federal member.--Section
5314 of title 5, United States Code, is amended by
adding at the end the following:``Independent Member of
the Financial Stability Oversight Council (1).''.
(j) Detail of Government Employees.--Any employee of the
Federal Government may be detailed to the Council without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege. An employee of the
Federal Government detailed to the Council shall report to and
be subject to oversight by the Council during the assignment to
the Council, and shall be compensated by the department or
agency from which the employee was detailed.
* * * * * * *
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