IB 

Union Calendar No. 219 

115TH CONGRESS 

1ST SESSION H. R. 1624 

[Report No. 115–306] 

To require the appropriate Federal banking agencies to treat certain 

municipal obligations as level 2A liquid assets, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2017 

Mr. MESSER (for himself, Mrs. CAROLYN B. MALONEY of New York, Mr. 

HULTGREN, Mr. MEEKS, Ms. KELLY of Illinois, Ms. SEWELL of Alabama, Ms. SINEMA, Mr. KING of New York, Ms. NORTON, Ms. MOORE, 

Mr. POLIQUIN, Mr. VEASEY, Mr. SHERMAN, and Mr. KIND) introduced 

the following bill; which was referred to the Committee on Financial Services 

SEPTEMBER 12, 2017 

Additional sponsors: Mr. HUDSON, Mr. CURBELO of Florida, Mr. ROSS, Ms. 

VELA ́ZQUEZ, Mr. DELANEY, and Mr. FITZPATRICK

SEPTEMBER 12, 2017 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 20, 2017] 


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•HR 1624 RH

A BILL 

To require the appropriate Federal banking agencies to treat 

certain municipal obligations as level 2A liquid assets, 

and for other purposes. 


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•HR 1624 RH

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 ‘‘Municipal Finance Sup5 port Act of 2017’’. 

6 SEC. 2. TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS. 

7 (a) IN GENERAL.—Section 18 of the Federal Deposit 

8 Insurance Act (12 U.S.C. 1828) is amended— 

9 (1) by moving subsection (z) so that it appears 

10 after subsection (y); and 

11 (2) by adding at the end the following: 

12 ‘‘(aa) TREATMENT OF CERTAIN MUNICIPAL OBLIGA13 TIONS.— 

14 ‘‘(1) IN GENERAL.—For purposes of the final 

15 rule titled ‘Liquidity Coverage Ratio: Liquidity Risk 

16 Measurement Standards; Final Rule’ (79 Fed. Reg. 

17 61439; published October 10, 2014) (the ‘Final Rule’) 

18 and any other regulation which incorporates a defini19 tion of the term ‘high-quality liquid asset’, the appro20 priate Federal banking agencies shall treat a munic21 ipal obligation that is both liquid and readily mar22 ketable (as defined in the Final Rule) and investment 

23 grade as of the calculation date as a high-quality liq24 uid asset that is no lower than a level 2B liquid asset. 


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•HR 1624 RH

1 ‘‘(2) DEFINITIONS.—For purposes of this sub2 section: 

3 ‘‘(A) INVESTMENT GRADE.—With respect to 

4 an obligation, the term ‘investment grade’ has 

5 the meaning given that term under part 1 of 

6 title 12, Code of Federal Regulations. 

7 ‘‘(B) MUNICIPAL OBLIGATION.—The term 

8 ‘municipal obligation’ means an obligation of a 

9 State or any political subdivision thereof, or any 

10 agency or instrumentality of a State or any po11 litical subdivision thereof.’’. 

12 (b) AMENDMENT TO LIQUIDITY COVERAGE RATIO

13 REGULATIONS.—Not later than the end of the 3-month pe14 riod beginning on the date of the enactment of this Act, 

15 the Federal Deposit Insurance Corporation, the Board of 

16 Governors of the Federal Reserve System, and the Comp17 troller of the Currency shall amend the final rule titled ‘‘Li18 quidity Coverage Ratio: Liquidity Risk Measurement 

19 Standards; Final Rule’’ (79 Fed. Reg. 61439; published Oc20 tober 10, 2014) to implement the amendments made by this 

21 Act. 

Amend the title so as to read: ‘‘A bill to require the 

appropriate Federal banking agencies to treat certain 

municipal obligations as no lower than level 2B liquid assets, and for other purposes.’’. 


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asabaliauskas on DSKBBXCHB2PROD with BILLS
Union Calendar No. 219 

115TH CONGRESS 

1ST SESSION H. R. 1624 

[Report No. 115–306] 

A BILL 

To require the appropriate Federal banking agen2A liquid assets, and for other purposes. cies to treat certain municipal obligations as level 

SEPTEMBER 12, 2017 

Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and orVerDate Sep 11 2014 21:00 Sep 12, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H1624.RH H1624

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