II 

114TH CONGRESS 

1ST SESSION S. 1786 

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 SENATE OF THE UNITED STATES 

JULY 16, 2015 

Mr. CORNYN (for himself, Mr. PAUL, and Mr. CRUZ) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

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. 

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: 


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1 (1) The Constitution endows Congress with the 

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

3 (2) Following the financial crisis known as the 

4 Panic of 1907, Congress established the National 

5 Monetary Commission to provide recommendations 

6 for the reform of the financial and monetary systems 

7 of the United States. 

8 (3) Incorporating several of the recommenda9 tions of the National Monetary Commission, Con10 gress created the Federal Reserve System in 1913. 

11 As currently organized, the Federal Reserve System 

12 consists of the Board of Governors in Washington, 

13 District of Columbia, and the Federal Reserve 

14 Banks organized into 12 districts around the United 

15 States. The stockholders of the 12 Federal Reserve 

16 Banks include national and certain State-chartered 

17 commercial banks, which operate on a fractional re18 serve basis. 

19 (4) Originally, Congress gave the Federal Re20 serve System a monetary mandate to provide an 

21 elastic currency, within the context of a gold stand22 ard, in response to seasonal fluctuations in the de23 mand for currency. 

24 (5) Congress also gave the Federal Reserve 

25 System a financial stability mandate to serve as the 


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1 lender of last resort to solvent but illiquid banks 

2 during a financial crisis. 

3 (6) In 1977, Congress changed the monetary 

4 mandate of the Federal Reserve System to a dual 

5 mandate for maximum employment and stable 

6 prices. 

7 (7) Empirical studies and historical evidence, 

8 both within the United States and in other coun9 tries, demonstrate that price stability is desirable be10 cause both inflation and deflation damage the econ11 omy. 

12 (8) The economic challenge of recent years— 

13 most notably the bursting of the housing bubble, the 

14 financial crisis of 2008, and the ensuing anemic re15 covery—have occurred at great cost in terms of lost 

16 jobs and output. 

17 (9) Policymakers are reexamining the structure 

18 and functioning of financial institutions and markets 

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

20 to place the financial system on a stronger, more 

21 sustainable path going forward. 

22 (10) The Federal Reserve System has taken ex23 traordinary actions in response to the recent eco24 nomic challenges. 


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1 (11) The Federal Open Market Committee has 

2 engaged in multiple rounds of quantitative easing, 

3 providing unprecedented liquidity to financial mar4 kets, while committing to holding short-term interest 

5 rates low for a seemingly indefinite period, and pur6 suing a policy of credit allocation by purchasing 

7 Federal agency debt and mortgage-backed securities. 

8 (12) In the wake of the recent extraordinary ac9 tions of the Federal Reserve System, Congress—con10 sistent with its constitutional responsibilities and as 

11 it has done periodically throughout the history of the 

12 United States—has once again renewed its examina13 tion of monetary policy. 

14 (13) Central in such examination has been a re15 newed look at what is the most proper mandate for 

16 the Federal Reserve System to conduct monetary 

17 policy in the 21st century. 

18 SEC. 3. ESTABLISHMENT. 

19 There is established a commission to be known as the 

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

21 to as the ‘‘Commission’’). 

22 SEC. 4. DUTIES. 

23 (a) STUDY OF MONETARY POLICY.—The Commis24 sion shall— 


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1 (1) examine how United States monetary policy 

2 since the creation of the Board of Governors of the 

3 Federal Reserve System in 1913 has affected the 

4 performance of the United States economy in terms 

5 of output, employment, prices, and financial stability 

6 over time; 

7 (2) evaluate various operational regimes under 

8 which the Board of Governors of the Federal Re9 serve System and the Federal Open Market Com10 mittee may conduct monetary policy in terms achiev11 ing the maximum sustainable level of output and 

12 employment and price stability over the long term, 

13 including— 

14 (A) discretion in determining monetary 

15 policy without an operational regime; 

16 (B) price level targeting; 

17 (C) inflation rate targeting; 

18 (D) nominal gross domestic product tar19 geting (both level and growth rate); 

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

21 (F) the gold standard; 

22 (3) evaluate the use of macro-prudential super23 vision and regulation as a tool of monetary policy in 

24 terms of achieving the maximum sustainable level of 


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1 output and employment and price stability over the 

2 long term; 

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

4 function of the Board of Governors of the Federal 

5 Reserve System as a tool of monetary policy in 

6 terms of achieving the maximum sustainable level of 

7 output and employment and price stability over the 

8 long term; and 

9 (5) recommend a course for United States mon10 etary policy going forward, including— 

11 (A) the legislative mandate; 

12 (B) the operational regime; 

13 (C) the securities used in open market op14 erations; and 

15 (D) transparency issues. 

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

17 December 1, 2016, the Commission shall submit to Con18 gress and make publicly available a report containing a 

19 statement of the findings and conclusions of the Commis20 sion in carrying out the study under subsection (a), to21 gether with the recommendations the Commission con22 siders appropriate. 

23 SEC. 5. MEMBERSHIP. 

24 (a) NUMBER AND APPOINTMENT.— 


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1 (1) APPOINTED VOTING MEMBERS.—The Com2 mission shall contain 12 voting members as follows: 

3 (A) Six members appointed by the Speaker 

4 of the House of Representatives, with four 

5 members from the majority party and two 

6 members from the minority party. 

7 (B) Six members appointed by the Presi8 dent pro tempore of the Senate, with four mem9 bers from the majority party and two members 

10 from the minority party. 

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

12 Representatives and the majority leader of the Sen13 ate shall jointly designate one of the members of the 

14 Commission as Chairman. 

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

16 shall contain 2 non-voting members as follows: 

17 (A) One member appointed by the Sec18 retary of the Treasury. 

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

20 district Federal Reserve bank appointed by the 

21 Chair of the Board of Governors of the Federal 

22 Reserve System. 

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

24 be appointed for the life of the Commission. 


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

2 Commission shall be appointed not before January 5, 

3 2015, and not later than 30 days after the date of the 

4 enactment of this Act. 

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

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

7 in which the original appointment was made. 

8 (e) MEETINGS.— 

9 (1) INITIAL MEETING.—The Commission shall 

10 hold its initial meeting and begin the operations of 

11 the Commission as soon as is practicable. 

12 (2) FURTHER MEETINGS.—The Commission 

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

14 of its members. 

15 (f) QUORUM.—Seven voting members of the Commis16 sion shall constitute a quorum but a lesser number may 

17 hold hearings. 

18 (g) MEMBER OF CONGRESS DEFINED.—In this sec19 tion, the term ‘‘Member of Congress’’ means a Senator 

20 or a Representative in, or Delegate or Resident Commis21 sioner to, the Congress. 

22 SEC. 6. POWERS. 

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

24 on the authority of the Commission, any subcommittee or 

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


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

2 testimony, receive evidence, or administer oaths as the 

3 Commission or such subcommittee or member thereof con4 siders appropriate. 

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

6 amounts provided in advance in appropriation Acts, the 

7 Commission may contract with and compensate Govern8 ment and private agencies or persons to enable the Com9 mission to discharge its duties under this Act, without re10 gard to section 3709 of the Revised Statutes (41 U.S.C. 

11 5). 

12 (c) OBTAINING OFFICIAL DATA.— 

13 (1) IN GENERAL.—The Commission is author14 ized to secure directly from any executive depart15 ment, bureau, agency, board, commission, office, 

16 independent establishment, or instrumentality of the 

17 Government, any information, including suggestions, 

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

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

20 such department, bureau, agency, board, commis21 sion, office, independent establishment, or instru22 mentality of the Government shall, to the extent au23 thorized by law, furnish such information upon re24 quest made by— 

25 (A) the Chair; 


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1 (B) the Chair of any subcommittee created 

2 by a majority of the Commission; or 

3 (C) any member of the Commission des4 ignated by a majority of the commission to re5 quest such information. 

6 (d) ASSISTANCE FROM FEDERAL AGENCIES.— 

7 (1) GENERAL SERVICES ADMINISTRATION.— 

8 The Administrator of General Services shall provide 

9 to the Commission on a reimbursable basis adminis10 trative support and other services for the perform11 ance of the functions of the Commission. 

12 (2) OTHER DEPARTMENTS AND AGENCIES.—In 

13 addition to the assistance prescribed in paragraph 

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

15 and agencies of the United States shall provide such 

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

17 services as may be authorized by law. 

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

19 United States mails in the same manner and under the 

20 same conditions as other departments and agencies of the 

21 United States. 

22 SEC. 7. COMMISSION PERSONNEL. 

23 (a) APPOINTMENT AND COMPENSATION OF STAFF.— 

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

25 by the Commission, the Chair may appoint and fix 


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1 the pay of the executive director and other personnel 

2 as the Chair considers appropriate. 

3 (2) APPLICABILITY OF CIVIL SERVICE LAWS.— 

4 The staff of the Commission may be appointed with5 out regard to the provisions of title 5, United States 

6 Code, governing appointments in the competitive 

7 service, and may be paid without regard to the pro8 visions of chapter 51 and subchapter III of chapter 

9 53 of that title relating to classification and General 

10 Schedule pay rates, except that an individual so ap11 pointed may not receive pay in excess of level V of 

12 the Executive Schedule. 

13 (b) CONSULTANTS.—The Commission may procure 

14 temporary and intermittent services under section 3109(b) 

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

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

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

18 Schedule. 

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

20 of the Commission, the head of any Federal department 

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

22 personnel of such department or agency to the Commis23 sion to assist it in carrying out its duties under this Act. 


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1 SEC. 8. TERMINATION. 

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

3 on June 1, 2017. 

4 (b) ADMINISTRATIVE ACTIVITIES BEFORE TERMI5 NATION.—The Commission may use the period between 

6 the submission of its report and its termination for the 

7 purpose of concluding its activities, including providing 

8 testimony to a committee of Congress concerning its re9 port. 

10 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated such sums 

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

13 shall remain available until the date on which the Commis14 sion terminates. 

Æ 


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