Financial Stability Oversight Council Reform Act

To place the Financial Stability Oversight Council and the Office of Financial Research under the regular appropriations process, to provide for certain quarterly reporting and public notice and comment requirements for the Office of Financial Research, and for other purposes. 1. Short title This Act may be cited as the Financial Stability Oversight Council Reform Act 2. Funding (a) In general Section 155 of the Financial Stability Act of 2010 ( 12 U.S.C. 5345 (1) in subsection (b)— (A) in paragraph (1), by striking be immediately available to the Office be available to the Office, as provided for in appropriation Acts (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (2) in subsection (d), by amending the heading to read as follows: Assessment schedule.— (b) Effective date The amendments made by this section shall take effect on October 1, 2021. 3. Quarterly reporting Section 153 of the Financial Stability Act of 2010 ( 12 U.S.C. 5343 (g) Quarterly reporting (1) In general Not later than 60 days after the end of each quarter, the Office shall submit reports on the Office’s activities to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Contents The reports required under paragraph (1) shall include— (A) the obligations made during the previous quarter by object class, office, and activity; (B) the estimated obligations for the remainder of the fiscal year by object class, office, and activity; (C) the number of full-time equivalents within the Office during the previous quarter; (D) the estimated number of full-time equivalents within each office for the remainder of the fiscal year; and (E) actions taken to achieve the goals, objectives, and performance measures of the Office. (3) Testimony At the request of any committee specified under paragraph (1), the Office shall make officials available to testify on the contents of the reports required under paragraph (1). . 4. Public notice and comment period Section 153(c) of the Financial Stability Act of 2010 ( 12 U.S.C. 5343(c) (3) Public notice and comment period The Office shall provide for a public notice and comment period of not less than 90 days before issuing any proposed report, rule, or regulation. (4) Additional report requirements (A) In general Except as provided under paragraph (3), the requirements under section 553 of title 5, United States Code, shall apply to a proposed report of the Office to the same extent as such requirements apply to a proposed rule of the Office. (B) Exception for certain reports This paragraph and paragraph (3) shall not apply to a report required under subsection (g)(1) or section 154(d)(1). . 5. Additional duties of the Office of Financial Research Section 153 of the Financial Stability Act of 2010 ( 12 U.S.C. 5343 (h) Additional duties (1) Annual work plan (A) In general The Director shall, after a period of 60 days for public notice and comment, annually publish a detailed work plan concerning the priorities of the Office for the upcoming fiscal year. (B) Requirements The work plan shall include the following: (i) A unique alphanumeric identifier and detailed description of any report, study, working paper, grant, guidance, data collection, or request for information that is expected to be in progress during, or scheduled to begin in, the upcoming fiscal year. (ii) For each item listed under clause (i), a target date for any significant actions related to such item, including the target date— (I) for the release of a report, study, or working paper; (II) for, and topics of, a meeting of a working paper group and each solicitation of applications for grants; and (III) for the issuance of guidance, data collections, or requests for information. (iii) A list of all technical and professional advisory committees that is expected to be convened in the upcoming fiscal year pursuant to section 152(h). (iv) The name and professional affiliations of each individual who served during the previous fiscal year as an academic or professional fellow pursuant to section 152(i). (v) A detailed description of the progress made by primary financial regulatory agencies in adopting a unique alphanumeric system to identify legally distinct entities that engage in financial transactions (commonly known as a Legal Entity Identifier (2) Public reports (A) Consultation In preparing any public report with respect to a specified entity, class of entities, or financial product or service, the Director shall consult with any Federal department or agency with expertise in regulating the entity, class of entities, or financial product or service. (B) Report requirements A public report described in subparagraph (A) shall include— (i) an explanation of any changes made as a result of a consultation under this subparagraph and, with respect to any changes suggested in such consultation that were not made, the reasons that the Director did not incorporate such changes; and (ii) information on the date, time, and nature of such consultation. (C) Notice and comment Before issuing any public report described in subparagraph (A), the Director shall provide a period of 90 days for public notice and comment on the report. (3) Cybersecurity plan (A) In general The Office shall develop and implement a cybersecurity plan that uses appropriate safeguards that are adequate to protect the integrity and confidentiality of the data in the possession of the Office. (B) GAO review The Comptroller General of the United States shall annually audit the cybersecurity plan and its implementation described in subparagraph (A). .

Summary: Financial Stability Oversight Council Reform Act This bill subjects the budgets of the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR) to the annual appropriations process and establishes requirements for reports and a public notice and comment period. The budgets of the FSOC and the OFR are funded by assessments on financial institutions which are deposited into the Financial Research Fund and, under current law, are immediately available to be spent. This bill requires the funding from the Financial Research Fund to be made available by appropriations acts. The OFR must submit quarterly reports to Congress regarding its finances; workforce; and actions taken to achieve the goals, objectives, and performance measures of the office. The OFR must provide a public notice and comment period of at least 90 days before issuing any proposed report, rule, or regulation. The bill expands the duties of the OFR to include publishing an annual work plan; consulting with other federal departments and agencies with relevant expertise prior to preparing any public report with respect to a specified entity, class of entities, or financial product or service; and developing and implementing a cybersecurity plan. The Government Accountability Office must annually audit the cybersecurity plan and its implementation.