IB 

★

Union Calendar No. 252 

114TH CONGRESS 

1ST SESSION H. R. 2912 

[Report No. 114–331] 

To establish a commission to examine the United States monetary policy, 

evaluate alternative monetary regimes, and recommend a course for monetary policy going forward. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2015 

Mr. BRADY of Texas (for himself, Mr. JONES, Mr. MULLIN, Mr. BLUM, Mr. 

MCCLINTOCK, Mr. BURGESS, Mr. LABRADOR, Mr. FARENTHOLD, Mr. 

PEARCE, Mr. SMITH of Texas, Mr. MULVANEY, Mr. JORDAN, Mr. JOYCE, 

Mr. ROTHFUS, Mr. DUNCAN of South Carolina, Mr. FLORES, Ms. JENKINS of Kansas, Mr. NEUGEBAUER, Mrs. LUMMIS, Mr. MCCAUL, Mr. 

GOHMERT, Mr. RENACCI, and Mr. WEBER of Texas) introduced the following bill; which was referred to the Committee on Financial Services 

NOVEMBER 16, 2015 

Additional sponsors: Mr. CRAMER, Mr. BRIDENSTINE, Ms. GRANGER, Ms. 

FOXX, Mr. SAM JOHNSON of Texas, Mr. ROKITA, Mr. OLSON, Mr. BRAT, 

Mr. RUSSELL, and Mr. AUSTIN SCOTT of Georgia 

NOVEMBER 16, 2015 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


sradovich on DSK3GMQ082PROD with BILLS
2 

HR 2912 RH1S 

A BILL 

To establish a commission to examine the United States 

monetary policy, evaluate alternative monetary regimes, 

and recommend a course for monetary policy going forward. 


sradovich on DSK3GMQ082PROD with BILLS
3 

HR 2912 RH1S 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Centennial Monetary 

5 Commission Act of 2015’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) The Constitution endows Congress with the 

9 power ‘‘to coin money, regulate the value thereof’’. 

10 (2) Following the financial crisis known as the 

11 Panic of 1907, Congress established the National 

12 Monetary Commission to provide recommendations 

13 for the reform of the financial and monetary systems 

14 of the United States. 

15 (3) Incorporating several of the recommenda16 tions of the National Monetary Commission, Con17 gress created the Federal Reserve System in 1913. 

18 As currently organized, the Federal Reserve System 

19 consists of the Board of Governors in Washington, 

20 District of Columbia, and the Federal Reserve 

21 Banks organized into 12 districts around the United 

22 States. The stockholders of the 12 Federal Reserve 

23 Banks include national and certain State-chartered 

24 commercial banks, which operate on a fractional re25 serve basis. 


sradovich on DSK3GMQ082PROD with BILLS
4 

HR 2912 RH1S 

1 (4) Originally, Congress gave the Federal Re2 serve System a monetary mandate to provide an 

3 elastic currency, within the context of a gold stand4 ard, in response to seasonal fluctuations in the de5 mand for currency. 

6 (5) Congress also gave the Federal Reserve 

7 System a financial stability mandate to serve as the 

8 lender of last resort to solvent but illiquid banks 

9 during a financial crisis. 

10 (6) In 1977, Congress changed the monetary 

11 mandate of the Federal Reserve System to a dual 

12 mandate for maximum employment and stable 

13 prices. 

14 (7) Empirical studies and historical evidence, 

15 both within the United States and in other coun16 tries, demonstrate that price stability is desirable be17 cause both inflation and deflation damage the econ18 omy. 

19 (8) The economic challenge of recent years— 

20 most notably the bursting of the housing bubble, the 

21 financial crisis of 2008, and the ensuing anemic re22 covery—have occurred at great cost in terms of lost 

23 jobs and output. 

24 (9) Policymakers are reexamining the structure 

25 and functioning of financial institutions and markets 


sradovich on DSK3GMQ082PROD with BILLS
5 

HR 2912 RH1S 

1 to determine what, if any, changes need to be made 

2 to place the financial system on a stronger, more 

3 sustainable path going forward. 

4 (10) The Federal Reserve System has taken ex5 traordinary actions in response to the recent eco6 nomic challenges. 

7 (11) The Federal Open Market Committee has 

8 engaged in multiple rounds of quantitative easing, 

9 providing unprecedented liquidity to financial mar10 kets, while committing to holding short-term interest 

11 rates low for a seemingly indefinite period, and pur12 suing a policy of credit allocation by purchasing 

13 Federal agency debt and mortgage-backed securities. 

14 (12) In the wake of the recent extraordinary ac15 tions of the Federal Reserve System, Congress—con16 sistent with its constitutional responsibilities and as 

17 it has done periodically throughout the history of the 

18 United States—has once again renewed its examina19 tion of monetary policy. 

20 (13) Central in such examination has been a re21 newed look at what is the most proper mandate for 

22 the Federal Reserve System to conduct monetary 

23 policy in the 21st century. 


sradovich on DSK3GMQ082PROD with BILLS
6 

HR 2912 RH1S 

1 SEC. 3. ESTABLISHMENT. 

2 There is established a commission to be known as the 

3 ‘‘Centennial Monetary Commission’’ (in this Act referred 

4 to as the ‘‘Commission’’). 

5 SEC. 4. DUTIES. 

6 (a) STUDY OF MONETARY POLICY.—The Commis7 sion shall— 

8 (1) examine how United States monetary policy 

9 since the creation of the Board of Governors of the 

10 Federal Reserve System in 1913 has affected the 

11 performance of the United States economy in terms 

12 of output, employment, prices, and financial stability 

13 over time; 

14 (2) evaluate various operational regimes under 

15 which the Board of Governors of the Federal Re16 serve System and the Federal Open Market Com17 mittee may conduct monetary policy in terms achiev18 ing the maximum sustainable level of output and 

19 employment and price stability over the long term, 

20 including— 

21 (A) discretion in determining monetary 

22 policy without an operational regime; 

23 (B) price level targeting; 

24 (C) inflation rate targeting; 

25 (D) nominal gross domestic product tar26 geting (both level and growth rate); 


sradovich on DSK3GMQ082PROD with BILLS
7 

HR 2912 RH1S 

1 (E) the use of monetary policy rules; and 

2 (F) the gold standard; 

3 (3) evaluate the use of macro-prudential super4 vision and regulation as a tool of monetary policy in 

5 terms of achieving the maximum sustainable level of 

6 output and employment and price stability over the 

7 long term; 

8 (4) evaluate the use of the lender-of-last-resort 

9 function of the Board of Governors of the Federal 

10 Reserve System as a tool of monetary policy in 

11 terms of achieving the maximum sustainable level of 

12 output and employment and price stability over the 

13 long term; and 

14 (5) recommend a course for United States mon15 etary policy going forward, including— 

16 (A) the legislative mandate; 

17 (B) the operational regime; 

18 (C) the securities used in open market op19 erations; and 

20 (D) transparency issues. 

21 (b) REPORT ON MONETARY POLICY.—Not later than 

22 December 1, 2016, the Commission shall submit to Con23 gress and make publicly available a report containing a 

24 statement of the findings and conclusions of the Commis25 sion in carrying out the study under subsection (a), toVerDate Sep 11 2014 21:05 Sep 29, 2016 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2912.RH H2912

sradovich on DSK3GMQ082PROD with BILLS
8 

HR 2912 RH1S 

1 gether with the recommendations the Commission con2 siders appropriate. 

3 SEC. 5. MEMBERSHIP. 

4 (a) NUMBER AND APPOINTMENT.— 

5 (1) APPOINTED VOTING MEMBERS.—The Com6 mission shall contain 12 voting members as follows: 

7 (A) Six members appointed by the Speaker 

8 of the House of Representatives, with four 

9 members from the majority party and two 

10 members from the minority party. 

11 (B) Six members appointed by the Presi12 dent Pro Tempore of the Senate, with four 

13 members from the majority party and two 

14 members from the minority party. 

15 (2) CHAIRMAN.—The Speaker of the House of 

16 Representatives and the majority leader of the Sen17 ate shall jointly designate one of the members of the 

18 Commission as Chairman. 

19 (3) NON-VOTING MEMBERS.—The Commission 

20 shall contain 2 non-voting members as follows: 

21 (A) One member appointed by the Sec22 retary of the Treasury. 

23 (B) One member who is the president of a 

24 district Federal reserve bank appointed by the 


sradovich on DSK3GMQ082PROD with BILLS
9 

HR 2912 RH1S 

1 Chair of the Board of Governors of the Federal 

2 Reserve System. 

3 (b) PERIOD OF APPOINTMENT.—Each member shall 

4 be appointed for the life of the Commission. 

5 (c) TIMING OF APPOINTMENT.—All members of the 

6 Commission shall be appointed not before January 5, 

7 2015, and not later than 30 days after the date of the 

8 enactment of this Act. 

9 (d) VACANCIES.—A vacancy in the Commission shall 

10 not affect its powers, and shall be filled in the manner 

11 in which the original appointment was made. 

12 (e) MEETINGS.— 

13 (1) INITIAL MEETING.—The Commission shall 

14 hold its initial meeting and begin the operations of 

15 the Commission as soon as is practicable. 

16 (2) FURTHER MEETINGS.—The Commission 

17 shall meet upon the call of the Chair or a majority 

18 of its members. 

19 (f) QUORUM.—Seven voting members of the Commis20 sion shall constitute a quorum but a lesser number may 

21 hold hearings. 

22 (g) MEMBER OF CONGRESS DEFINED.—In this sec23 tion, the term ‘‘Member of Congress’’ means a Senator 

24 or a Representative in, or Delegate or Resident Commis25 sioner to, the Congress. 


sradovich on DSK3GMQ082PROD with BILLS
10 

HR 2912 RH1S 

1 SEC. 6. POWERS. 

2 (a) HEARINGS AND SESSIONS.—The Commission or, 

3 on the authority of the Commission, any subcommittee or 

4 member thereof, may, for the purpose of carrying out this 

5 Act, hold hearings, sit and act at times and places, take 

6 testimony, receive evidence, or administer oaths as the 

7 Commission or such subcommittee or member thereof con8 siders appropriate. 

9 (b) CONTRACT AUTHORITY.—To the extent or in the 

10 amounts provided in advance in appropriation Acts, the 

11 Commission may contract with and compensate govern12 ment and private agencies or persons to enable the Com13 mission to discharge its duties under this Act, without re14 gard to section 3709 of the Revised Statutes (41 U.S.C. 

15 5). 

16 (c) OBTAINING OFFICIAL DATA.— 

17 (1) IN GENERAL.—The Commission is author18 ized to secure directly from any executive depart19 ment, bureau, agency, board, commission, office, 

20 independent establishment, or instrumentality of the 

21 Government, any information, including suggestions, 

22 estimates, or statistics, for the purposes of this Act. 

23 (2) REQUESTING OFFICIAL DATA.—The head of 

24 such department, bureau, agency, board, commis25 sion, office, independent establishment, or instru26 mentality of the government shall, to the extent auVerDate Sep 11 2014 21:05 Sep 29, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2912.RH H2912

sradovich on DSK3GMQ082PROD with BILLS
11 

HR 2912 RH1S 

1 thorized by law, furnish such information upon re2 quest made by— 

3 (A) the Chair; 

4 (B) the Chair of any subcommittee created 

5 by a majority of the Commission; or 

6 (C) any member of the Commission des7 ignated by a majority of the commission to re8 quest such information. 

9 (d) ASSISTANCE FROM FEDERAL AGENCIES.— 

10 (1) GENERAL SERVICES ADMINISTRATION.— 

11 The Administrator of General Services shall provide 

12 to the Commission on a reimbursable basis adminis13 trative support and other services for the perform14 ance of the functions of the Commission. 

15 (2) OTHER DEPARTMENTS AND AGENCIES.—In 

16 addition to the assistance prescribed in paragraph 

17 (1), at the request of the Commission, departments 

18 and agencies of the United States shall provide such 

19 services, funds, facilities, staff, and other support 

20 services as may be authorized by law. 

21 (e) POSTAL SERVICE.—The Commission may use the 

22 United States mails in the same manner and under the 

23 same conditions as other departments and agencies of the 

24 United States. 


sradovich on DSK3GMQ082PROD with BILLS
12 

HR 2912 RH1S 

1 SEC. 7. COMMISSION PERSONNEL. 

2 (a) APPOINTMENT AND COMPENSATION OF STAFF.— 

3 (1) IN GENERAL.—Subject to rules prescribed 

4 by the Commission, the Chair may appoint and fix 

5 the pay of the executive director and other personnel 

6 as the Chair considers appropriate. 

7 (2) APPLICABILITY OF CIVIL SERVICE LAWS.— 

8 The staff of the Commission may be appointed with9 out regard to the provisions of title 5, United States 

10 Code, governing appointments in the competitive 

11 service, and may be paid without regard to the pro12 visions of chapter 51 and subchapter III of chapter 

13 53 of that title relating to classification and General 

14 Schedule pay rates, except that an individual so ap15 pointed may not receive pay in excess of level V of 

16 the Executive Schedule. 

17 (b) CONSULTANTS.—The Commission may procure 

18 temporary and intermittent services under section 3109(b) 

19 of title 5, United States Code, but at rates for individuals 

20 not to exceed the daily equivalent of the rate of pay for 

21 a person occupying a position at level IV of the Executive 

22 Schedule. 

23 (c) STAFF OF FEDERAL AGENCIES.—Upon request 

24 of the Commission, the head of any Federal department 

25 or agency may detail, on a reimbursable basis, any of the 


sradovich on DSK3GMQ082PROD with BILLS
13 

HR 2912 RH1S 

1 personnel of such department or agency to the Commis2 sion to assist it in carrying out its duties under this Act. 

3 SEC. 8. TERMINATION. 

4 (a) IN GENERAL.—The Commission shall terminate 

5 on June 1, 2017. 

6 (b) ADMINISTRATIVE ACTIVITIES BEFORE TERMI7 NATION.—The Commission may use the period between 

8 the submission of its report and its termination for the 

9 purpose of concluding its activities, including providing 

10 testimony to the committee of Congress concerning its re11 port. 

12 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

13 There are authorized to be appropriated such sums 

14 as may be necessary to carry out this Act and such sums 

15 shall remain available until the date on which the Commis16 sion terminates. 


sradovich on DSK3GMQ082PROD with BILLS
Union Calendar No. 252 

114TH CONGRESS 

1ST SESSION H. R. 2912 

[Report No. 114–331] 

A BILL 

To establish a commission to examine the United 

etary policy going forward. etary regimes, and recommend a course for monStates monetary policy, evaluate alternative monNOVEMBER 16, 2015 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


sradovich on DSK3GMQ082PROD with BILLS