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U.S. Department of Treasury

Federal Insurance Office

Advisory Committee on Risk-Sharing Mechanisms 

By-Laws and Operating Procedures

The following By-Laws and Operating Procedures (By-Laws) will govern the operations of the 

Advisory Committee on Risk-Sharing Mechanisms (ACRSM or Committee), whose funding and 

administrative support will be provided by the U.S. Department of the Treasury (Department) 

and the Federal Insurance Office (FIO).

Section I: Authority

(A) The ACRSM has been formed by the authority under § 110 of the Terrorism Risk Insurance 

Program Reauthorization Act of 2015 (Pub. L. 114-1), which requires the Secretary of the 

Treasury to establish and appoint the ACRSM. 

(B) The Federal Advisory Committee Act (Pub. L. 117-286, 5 U.S.C. § § 1001 et seq. , as 

amended) (FACA), governs the creation and operation of advisory committees. In the event of 

any inconsistencies between the By-Laws and FACA (including its implementing regulations), 

the ACRSM will act in accordance with FACA (including its implementing regulations), as the 

same may be amended from time to time.

Section II: Functions, Objective, Organization and Operation

(A) The functions of the ACRSM are advisory only.

(B) The objectives of the ACRSM are to provide advice and recommendations to FIO with 

respect to (1) the creation and development of nongovernment risk-sharing mechanisms that 

encourage the growth of private market reinsurance capacity for protection against losses arising 

from acts of terrorism; and (2) FIO’s administration of the Terrorism Risk Insurance Program. 

(C) The ACRSM shall provide its advice and recommendations directly to FIO. The ACRSM 

will conduct its work in coordination with FIO. The Director of FIO will decide what 

information will be disseminated to the ACRSM for its use and consideration.

Section III: Membership

(A) The ACRSM shall consist of nine members, who shall be appointed by the Department, 

from among individuals not employed by the federal government. The membership will consist 

of directors, officers, or other employees of insurers, reinsurers, or capital market participants 

that are participating in, or that desire to participate in, nongovernmental risk-sharing 

mechanisms related to terrorism risk.
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(B) The composition of the ACRSM will reflect the affected sectors of the insurance industry, 

including commercial property insurance, commercial casualty insurance, reinsurance, and 

alternative risk transfer industries. The Director of FIO shall designate a Chairperson from 

among the members. Members are appointed or reappointed for a term of three years. 

(C) In conformity with the Presidential Memorandum of June 18, 2010,1 no member of the 

ACRSM shall be a Federally-registered lobbyist. Members of the ACRSM serve at the sole 

discretion of the Secretary and may be removed by the Secretary or the Assistant Secretary for 

Management

Section IV: Meetings

(A) In General. The ACRSM shall meet at such regular intervals as necessary to carry out its 

duties. The ACRSM is expected to meet two times per year, in Washington, D.C., at the call of 

the Chairperson and with the approval of the Designated Federal Officer (the DFO), or at the call 

of the DFO. An official ACRSM meeting consists of a quorum of the members (including the 

Chairperson) then serving on the ACRSM. The DFO shall be responsible for measures to 

facilitate compliance with FACA. The Chairperson will preside at all meetings of the ACRSM, 

unless the DFO presides in accordance with FACA. Meetings shall be governed in accordance 

with FACA, and the DFO may specify the use of rules of parliamentary procedure consistent 

with the By-Laws. Subject to such reasonable guidelines and procedures as the presiding officer 

of the ACRSM may adopt, members may participate in a meeting by means of conference 

telephone or similar communications equipment if all members can hear or similarly 

communicate with one another at the same time and members of the public entitled to observe 

such communication can do so. If a member designated as a Representative by Treasury’s 

Designated Agency Ethics Official is unable to attend a meeting, an alternate from the same

organization (Alternate Member) may attend the meeting on the member’s behalf, subject to 

prior written agreement from the DFO or Director of FIO.

(B) Notice. The Department will publish a notice of each meeting in the Federal Register at 

least 15 calendar days before the meeting of the ACRSM, unless there are exceptional 

circumstances in which case the reason will be included in the Federal Register notice. The 

notice will include (1) the name of the Committee; (2) the time, date, place, and purpose of the 

Committee’s meeting; (3) a summary of the agenda and/or the topics to be discussed; (4) a 

statement as to whether all or part of the meeting will be open to the public and, if any part is 

closed, a statement as to why, citing the specific statutory provision that serves as a basis for 

closure; and (5) the name and telephone number of the DFO or FIO or Department official who 

may be contacted for additional information concerning the meeting. 

(C) Agenda. The Chairperson of the ACRSM will draft an agenda for each meeting of the 

ACRSM sufficiently in advance of the meeting to permit a copy or summary of the agenda to be 

published with the notice of the meeting, if required. The DFO or the FIO designee will approve 

the agenda for each meeting. The DFO, the Director of FIO (or his or her designee), or support 

staff will distribute the agenda to the members before each meeting and will make available 

1 Available at https://obamawhitehouse.archives.gov/the-press-office/presidential-memorandum-lobbyistsagency-boards-and-commissions
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copies of the agenda to members of the public attending the meeting. Items for the agenda may 

be submitted to the Chairperson by any member of the ACRSM or by any member of the public. 

(D) Quorum. A quorum shall consist of a simple majority of the members then serving on the 

ACRSM. 

(E) Voting. In order to cast a vote, a member must attend an ACRSM meeting either in person,

by telephone or other electronic means. When a decision or recommendation of the ACRSM is 

required, the presiding officer will request a motion for a vote. Any member may make a motion 

for a vote and may vote. No second after a proper motion will be required to bring any issue or 

recommendation to a vote. ACRSM action based on a vote requires a simple majority of the 

votes cast at a meeting at which there is a quorum, except that formal advice or any formal 

recommendation to FIO requires two-thirds of the votes cast at a meeting at which there is a 

quorum. No proxy votes shall be permitted, except by Alternate Members attending the meeting 

with the prior written approval of the DFO or the FIO Director.

(F) Open Meetings. Unless otherwise determined in advance and except as provided in this 

paragraph (F), each meeting of the ACRSM will be open to the public either in-person as space 

permits or via electronic means. Once an open meeting has begun, it may not be closed for any 

reason. If, during the course of an open meeting, matters inappropriate for public disclosure 

arise during discussion, the presiding officer of the ACRSM shall order such discussion to cease 

and schedule the matter for closed session in accordance with FACA. All materials brought 

before, or presented to, the ACRSM during an open meeting will be made available to the public 

for review during the meeting. All such materials also will be made available on the 

Department’s web site as soon as practicable after the relevant meeting. The Chairperson of the 

ACRSM may decide in advance to exclude oral public statements during a meeting in which 

case the meeting notice published in the Federal Register will invite written statements as an 

alternative. Members of the public may submit written statements to the ACRSM at any time. 

(G) Activities Not Subject to Notice and Open Meeting Requirements. Consistent with 

FACA regulations, the following activities are excluded from the procedural requirements 

contained in Sections (B) and (F): (a) preparatory work; meetings of two or more ACRSM

members or subcommittee members convened solely to gather information, conduct research, or 

analyze relevant issues and facts in preparation for a meeting of the ACRSM, or to draft position 

papers for deliberation by the ACRSM; and (b) administrative work; meetings of two or more 

ACRSM Members or subcommittee members convened solely to discuss administrative matters 

of the ACRSM or to receive administrative information from a Federal officer or agency. 

(H) Closed Meetings. All or parts of meetings of the ACRSM may be closed in limited 

circumstances in accordance with applicable law. A request to conduct a closed meeting must be 

submitted by the DFO to the Director of FIO (or his or her designee) under FACA, generally at 

least 30 days in advance of the publication of the meeting notice in the Federal Register. The 

appropriate official must determine that closing the meeting is consistent with the provisions of 

the Government in the Sunshine Act. Consistent with Section IV (B)(4), the notice of the 

ACRSM meeting published in the Federal Register must include information on the closure. 
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(I) Hearings. The ACRSM may hold hearings to receive testimony or oral comments, 

recommendations, and expressions of concern from the public. The ACRSM may hold hearings 

at open meetings or in closed session in accordance with FACA and the standards in the By-laws 

for closing meetings to the public. The Chairperson of the ACRSM may specify reasonable 

guidelines and procedures for conducting orderly hearings, such as requirements for submitting 

requests to testify and written testimony in advance and placing limitations on the number of 

persons who may testify and the duration of their testimony. 

(J) Minutes. The DFO will prepare minutes of each meeting of the ACRSM and submit them to 

the Chairperson of the ACRSM for certification of their accuracy. The minutes must be certified 

by the Chairperson of the ACRSM within 90 calendar days of the meeting to which they relate. 

The DFO will distribute copies of the certified minutes to each Member. Minutes of open or 

closed meetings will be made available to the public, subject to the withholding of matters about 

which public disclosure would be harmful to the interests of the Government, industry, or others, 

and which are exempt from disclosure under the Freedom of Information Act. The minutes will 

include a list of the persons who were present at the meeting, and a complete and accurate 

description of the matters discussed and the resolution, if any, made by the ACRSM regarding 

such matters; and copies of all reports or other documents received, issued or approved by the 

ACRSM at the meeting. 

Section V: Officials 

(A) Chairperson. The Chairperson of the ACRSM is designated by the Director of FIO and 

Department officials and serves at the sole discretion of the Director of FIO to perform the duties 

specified in the Charter and the By-Laws. 

(B) Designated Federal Officer. The DFO is designated by the Director of FIO and serves as 

the Department’s agent for matters related to the ACRSM’s activities. Under FACA, the DFO 

must, among other things, call all meetings of the ACRSM, attend meetings, and adjourn 

meetings when he or she determines such adjournment is in the public interest. In addition, the 

DFO is responsible for providing adequate staff support to the ACRSM and the Chairperson of 

the ACRSM in performance of the administrative functions, such as: (1) notifying Members of 

the time and place for each meeting; (2) maintaining the roll; (3) preparing the minutes of all 

meetings of the ACRSM and its subcommittees, as required by FACA; (4) attending to official 

correspondence; (5) maintaining official ACRSM records, including subcommittee records (if 

any), as required by law; (6) maintaining a webpage for the ACRSM; (7) acting on behalf of the 

FIO to collect, validate, and pay all vouchers for pre-approved expenditures of the ACRSM

authorized by law; and (8) preparing and handling all reports (except those required by section 6 

of FACA), including the annual report of the ACRSM required to be submitted to the General 

Services Administration under the FACA regulations. 

(D) Support Staff. The Director of FIO or his or her designee may determine that FIO staff or 

staff from the Department’s Office of Domestic Finance and other offices within the Department 

may be available to the DFO to provide adequate support for the ACRSM. 
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 Section VI: Subcommittees

The ACRSM, at the direction of the DFO, may establish such subcommittees as it deems 

necessary to support the ACRSM’s functions and may appoint members to, and the 

chairpersons of, any subcommittees so convened. The Chairperson of the ACRSM will be an 

ex officio member of each subcommittee. Only members of the ACRSM may vote and make a 

motion for a vote in a subcommittee. No proxy votes shall be permitted, except by Alternate 

Members attending the meeting with the prior written approval of the DFO or the FIO 

Director. Subcommittee chairpersons shall be established by the Director of FIO. 

Subcommittee chairpersons shall be designated by the Director of FIO.

Only preparatory and administrative work shall be conducted in subcommittee meetings. All 

subcommittee meetings shall be closed to the public, and attendance will be limited to 

ACRSM members, the DFO, FIO’s Director, and FIO staff. ACRSM members will be

permitted to invite additional representatives from their organization for administrative and 

technical support purposes. No other individuals will be permitted to participate in 

subcommittee meetings without prior approval of the FIO Director or DFO. No subcommittee 

may provide advice or recommendations (1) directly to FIO or any other agency or officer of 

the Federal Government or (2) to be adopted by the ACRSM without discussion or 

consideration at an open meeting of the ACRSM. All activities of the subcommittees must 

comply with FACA, as applicable.

Section VII: Records 

All documents, reports, and other materials prepared by the ACRSM or submitted to the 

ACRSM constitute official government records and must be maintained and made publicly 

available in accordance with applicable law. 

Section VIII: Expenses 

Expenses related to the operation of the ACRSM that are authorized by law shall be borne by 

the Department. Expenses of any kind must be approved in advance by the DFO. 

Section IX: Amendments 

The By-Laws may be amended from time to time by the DFO. In the event of any 

inconsistencies between the By-Laws and FACA (including its implementing regulations), the 

ACRSM will act in accordance with FACA (including its implementing regulations), as the 

same may be amended from time to time.