155 
‘‘(D) AVAILABILITY TO THE CONGRESSIONAL 
COMMITTEES.—The Board shall make available 
to the Committees specified under section 
101(h)— 
‘‘(i) such information as the Commit-
tees shall request; and 
‘‘(ii) with respect to any confidential 
or privileged information provided in re-
sponse to a request under clause (i), includ-
ing any information subject to section 
104(g) and subparagraph (A), or any con-
fidential or privileged information provided 
orally in response to such a request, such 
information shall maintain the protections 
provided in subparagraph (A), and shall re-
tain its confidential and privileged status 
in the hands of the Board and the Commit-
tees.’’. 
SEC. 426. REPEAL OF REQUIREMENT FOR PUBLIC COMPANY 
ACCOUNTING OVERSIGHT BOARD TO USE 
CERTAIN FUNDS FOR MERIT SCHOLARSHIP 
PROGRAM. 
(a) IN GENERAL.—Section 109(c) of the Sarbanes- 
Oxley Act of 2002 (15 U.S.C. 7219(c)) is amended by strik-
ing paragraph (2). 
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156 
(b) CONFORMING AMENDMENTS.—Section 109 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is amended— 
(1) in subsection (c), by striking ‘‘USES
OF 
FUNDS’’ and all that follows through ‘‘The budget’’ 
and inserting ‘‘USES OF FUNDS.—The budget’’; and 
(2) in subsection (f), by striking ‘‘subsection 
(c)(1)’’ and inserting ‘‘subsection (c)’’. 
SEC. 427. REALLOCATION OF FINES FOR VIOLATIONS OF 
RULES OF MUNICIPAL SECURITIES RULE-
MAKING BOARD. 
(a) IN GENERAL.—Section 15B(c)(9) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o–4(c)(9)) is amended 
to read as follows: 
‘‘(9) Fines collected for violations of the rules of the 
Board shall be deposited and credited as general revenue 
of the Treasury, except as otherwise provided in section 308 
of the Sarbanes-Oxley Act of 2002 or section 21F of this 
title.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to fines collected after the date of 
enactment of this Act. 
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157 
Subtitle B—Eliminating Excessive 
Government 
Intrusion 
in 
the 
Capital Markets 
SEC. 441. REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 
RULE AND REQUIREMENTS PRIOR TO RULE-
MAKING RELATING TO STANDARDS OF CON-
DUCT FOR BROKERS AND DEALERS. 
(a) REPEAL OF DEPARTMENT OF LABOR FIDUCIARY 
RULE.—The final rule of the Department of Labor titled 
‘‘Definition of the Term ‘Fiduciary’; Conflict of Interest 
Rule—Retirement Investment Advice’’ and related prohib-
ited transaction exemptions published April 8, 2016 (81 
Fed. Reg. 20946) shall have no force or effect. 
(b) STAY
ON
RULES
DEFINING
CERTAIN
FIDU-
CIARIES.—After the date of enactment of this Act, the Sec-
retary of Labor shall not prescribe any regulation under 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1001 et seq.) defining the circumstances under which 
an individual is considered a fiduciary until the date that 
is 60 days after the Securities and Exchange Commission 
issues a final rule relating to standards of conduct for bro-
kers and dealers pursuant to the second subsection (k) of 
section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 
78o(k)) 
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158 
(c) REQUIREMENTS PRIOR TO RULEMAKING RELATING 
TO STANDARDS OF CONDUCT FOR BROKERS AND DEAL-
ERS.—The second subsection (k) of section 15 of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(k)), as added by 
section 913(g)(1) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5301 et seq.), is 
amended by adding at the end the following: 
‘‘(3) REQUIREMENTS PRIOR TO RULEMAKING.— 
The Commission shall not promulgate a rule pursu-
ant to paragraph (1) before providing a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate describing whether— 
‘‘(A) retail investors (and such other cus-
tomers as the Commission may provide) are 
being harmed due to brokers or dealers operating 
under different standards of conduct than those 
that apply to investment advisors under section 
211 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–11); 
‘‘(B) alternative remedies will reduce any 
confusion or harm to retail investors due to bro-
kers or dealers operating under different stand-
ards of conduct than those standards that apply 
to investment advisors under section 211 of the 
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159 
Investment Advisers Act of 1940 (15 U.S.C. 80b– 
11), including— 
‘‘(i) simplifying the titles used by bro-
kers, dealers, and investment advisers; and 
‘‘(ii) enhancing disclosure surrounding 
the different standards of conduct currently 
applicable to brokers, dealers, and invest-
ment advisers; 
‘‘(C) the adoption of a uniform fiduciary 
standard of conduct for brokers, dealers, and in-
vestment advisors would adversely impact the 
commissions of brokers and dealers, the avail-
ability of proprietary products offered by brokers 
and dealers, and the ability of brokers and deal-
ers to engage in principal transactions with cus-
tomers; and 
‘‘(D) the adoption of a uniform fiduciary 
standard of conduct for brokers or dealers and 
investment advisors would adversely impact re-
tail investor access to personalized and cost-effec-
tive investment advice, recommendations about 
securities, or the availability of such advice and 
recommendations. 
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160 
‘‘(4) ECONOMIC
ANALYSIS.—The Commission’s 
conclusions contained in the report described in para-
graph (3) shall be supported by economic analysis. 
‘‘(5) REQUIREMENTS
FOR
PROMULGATING
A 
RULE.—The Commission shall publish in the Federal 
Register alongside the rule promulgated pursuant to 
paragraph (1) formal findings that such rule would 
reduce confusion or harm to retail customers (and 
such other customers as the Commission may by rule 
provide) due to different standards of conduct appli-
cable to brokers, dealers, and investment advisors. 
‘‘(6) REQUIREMENTS UNDER INVESTMENT ADVIS-
ERS ACT OF 1940.—In proposing rules under para-
graph (1) for brokers or dealers, the Commission shall 
consider the differences in the registration, super-
vision, and examination requirements applicable to 
brokers, dealers, and investment advisors.’’. 
SEC. 442. EXEMPTION FROM RISK RETENTION REQUIRE-
MENTS FOR NONRESIDENTIAL MORTGAGE. 
(a) IN GENERAL.—Section 15G of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o–11) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3)(B), by striking ‘‘and’’ 
at the end; 
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162 
SEC. 443. FREQUENCY OF SHAREHOLDER APPROVAL OF EX-
ECUTIVE COMPENSATION. 
Section 14A(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78n–1(a)) is amended— 
(1) in paragraph (1), by striking ‘‘Not less fre-
quently than once every 3 years’’ and inserting ‘‘Each 
year in which there has been a material change to the 
compensation of executives of an issuer from the pre-
vious year’’; and 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
SEC. 444. REQUIREMENT FOR MUNICIPAL ADVISOR FOR 
ISSUERS OF MUNICIPAL SECURITIES. 
Section 15B(d) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–4(d)) is amended by adding at the end the 
following: 
‘‘(3) An issuer of municipal securities shall not be re-
quired to retain a municipal advisor prior to issuing any 
such securities.’’. 
SEC. 445. SMALL ISSUER EXEMPTION FROM INTERNAL CON-
TROL EVALUATION. 
Section 404(c) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7262(c)) is amended to read as follows: 
‘‘(c) EXEMPTION FOR SMALLER ISSUERS.—Subsection 
(b) shall not apply with respect to any audit report pre-
pared for an issuer that has total market capitalization of 
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163 
less than $250,000,000, nor to any issuer that is a deposi-
tory institution with assets of less than $1,000,000,000.’’. 
SEC. 446. EXEMPTIVE AUTHORITY FOR CERTAIN PROVI-
SIONS RELATING TO REGISTRATION OF NA-
TIONALLY RECOGNIZED STATISTICAL RATING 
ORGANIZATIONS. 
Section 15E of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–7) is amended by adding at the end the 
following: 
‘‘(w) COMMISSION
EXEMPTIVE
AUTHORITY.—The 
Commission, by rules and regulations upon its own motion, 
or by order upon application, may conditionally or uncon-
ditionally exempt any person from any provision or provi-
sions of this title or of any rule or regulation thereunder, 
if and to the extent it determines that such rule, regulation, 
or requirement is creating a barrier to entry into the mar-
ket for nationally recognized statistical rating organiza-
tions or impeding competition among such organizations, 
or that such an exemption is necessary or appropriate in 
the public interest and is consistent with the protection of 
investors.’’. 
SEC. 447. RESTRICTION ON RECOVERY OF ERRONEOUSLY 
AWARDED COMPENSATION. 
Section 10D(b)(2) of the Securities Exchange Act of 
1934 (15 U.S.C. 78j–4(b)(2)) is amended by inserting before 
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164 
the period the following: ‘‘, where such executive officer had 
control or authority over the financial reporting that re-
sulted in the accounting restatement’’. 
SEC. 448. RISK-BASED EXAMINATIONS OF NATIONALLY REC-
OGNIZED STATISTICAL RATING ORGANIZA-
TIONS. 
Section 15E(p)(3)(B) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o–7(p)(3)(B)) is amended in the mat-
ter preceding clause (i), by inserting ‘‘, as appropriate,’’ 
after ‘‘Each examination under subparagraph (A) shall in-
clude’’. 
SEC. 449. REPEALS. 
(a) REPEALS.—The following provisions of title IX of 
the Dodd-Frank Wall Street Reform and Consumer Protec-
tion Act are repealed, and the provisions of law amended 
or repealed by such sections are restored or revived as if 
such sections had not been enacted: 
(1) Section 912. 
(2) Section 914. 
(3) Section 917. 
(4) Section 918. 
(5) Section 919A. 
(6) Section 919B. 
(7) Section 919C. 
(8) Section 921. 
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165 
(9) Section 929T. 
(10) Section 929X. 
(11) Section 929Y. 
(12) Section 929Z. 
(13) Section 931. 
(14) Section 933. 
(15) Section 937. 
(16) Section 939B. 
(17) Section 939C. 
(18) Section 939D. 
(19) Section 939E. 
(20) Section 939F. 
(21) Section 939G. 
(22) Section 939H. 
(23) Section 946. 
(24) Subsection (b) of section 953. 
(25) Section 955. 
(26) Section 956. 
(27) Section 964. 
(28) Section 965. 
(29) Section 968. 
(30) Section 971. 
(31) Section 972. 
(32) Section 976. 
(33) Section 977. 
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166 
(34) Section 978. 
(35) Section 984. 
(36) Section 989. 
(37) Section 989A. 
(38) Section 989F. 
(39) Subsection (b) of section 989G. 
(40) Section 989I. 
(b) CONFORMING AMENDMENTS.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 
U.S.C. 5301) is amended— 
(1) in the table of contents in section 1(b), by 
striking the items relating to the sections described 
under paragraphs (1) through (23), (25) through (38), 
and (40) of subsection (a); 
(2) in section 953, by striking ‘‘(a) DISCLOSURE 
OF PAY VERSUS PERFORMANCE.—’’; and 
(3) in section 989G, by striking ‘‘(a) EXEMP-
TION.—’’. 
SEC. 450. EXEMPTION OF AND REPORTING BY PRIVATE EQ-
UITY FUND ADVISERS. 
Section 203 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–3) is amended by adding at the end the fol-
lowing: 
‘‘(o) EXEMPTION OF AND REPORTING BY PRIVATE EQ-
UITY FUND ADVISERS.— 
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167 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no investment adviser shall be subject to 
the registration or reporting requirements of this title 
with respect to the provision of investment advice re-
lating to a private equity fund. 
‘‘(2) MAINTENANCE OF RECORDS AND ACCESS BY 
COMMISSION.—Not later than 6 months after the date 
of enactment of this subsection, the Commission shall 
issue final rules— 
‘‘(A) to require investment advisers de-
scribed in paragraph (1) to maintain such 
records and provide to the Commission such an-
nual or other reports as the Commission, taking 
into account fund size, governance, investment 
strategy, risk, and other factors, determines nec-
essary and appropriate in the public interest 
and for the protection of investors; and 
‘‘(B) to define the term ‘private equity fund’ 
for purposes of this subsection.’’. 
SEC. 451. RECORDS AND REPORTS OF PRIVATE FUNDS. 
The Investment Advisers Act of 1940 (15 U.S.C. 80b– 
1 et seq.) is amended— 
(1) in section 204(b)— 
(A) in paragraph (1)— 
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168 
(i) in subparagraph (A), by striking 
‘‘investors,’’ and all that follows and insert-
ing ‘‘investors.’’; 
(ii) by striking subparagraph (B); and 
(iii) by striking ‘‘this title—’’ and all 
that follows through ‘‘to maintain’’ and in-
serting ‘‘this title to maintain’’; 
(B) in paragraph (3)(H)— 
(i) by striking ‘‘, in consultation with 
the Council,’’; and 
(ii) by striking ‘‘or for the assessment 
of systemic risk’’; 
(C) in paragraph (4), by striking ‘‘, or for 
the assessment of systemic risk’’; 
(D) in paragraph (5), by striking ‘‘or for 
the assessment of systemic risk’’; 
(E) in paragraph (6)(A)(ii), by striking ‘‘, 
or for the assessment of systemic risk’’; 
(F) by striking paragraph (7) and redesig-
nating paragraphs (8) through (11) as para-
graphs (7) through (10), respectively; and 
(G) in paragraph (8) (as so redesignated), 
by striking ‘‘paragraph (8)’’ and inserting 
‘‘paragraph (7)’’; and 
(2) in section 211(e)— 
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169 
(A) by striking ‘‘after consultation with the 
Council but’’; and 
(B) by striking ‘‘subsection 204(b)’’ and in-
serting ‘‘section 204(b)’’. 
SEC. 452. DEFINITION OF ACCREDITED INVESTOR. 
(a) IN GENERAL.—Section 2(a)(15) of the Securities 
Act of 1933 (15 U.S.C. 77b(a)(15)) is amended— 
(1) by redesignating clauses (i) and (ii) as sub-
paragraphs (A) and (F), respectively; and 
(2) in subparagraph (A) (as so redesignated), by 
striking ‘‘; or’’ at the end and inserting a semicolon, 
and inserting after such subparagraph the following: 
‘‘(B) any natural person whose individual 
net worth, or joint net worth with that person’s 
spouse, exceeds $1,000,000 (which amount, along 
with the amounts set forth in subparagraph (C), 
shall be adjusted for inflation by the Commission 
every 5 years to the nearest $10,000 to reflect the 
change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics) where, for purposes of calcu-
lating net worth under this subparagraph— 
‘‘(i) the person’s primary residence 
shall not be included as an asset; 
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‘‘(ii) indebtedness that is secured by 
the person’s primary residence, up to the es-
timated fair market value of the primary 
residence at the time of the sale of securities, 
shall not be included as a liability (except 
that if the amount of such indebtedness out-
standing at the time of sale of securities ex-
ceeds the amount outstanding 60 days be-
fore such time, other than as a result of the 
acquisition of the primary residence, the 
amount of such excess shall be included as 
a liability); and 
‘‘(iii) indebtedness that is secured by 
the person’s primary residence in excess of 
the estimated fair market value of the pri-
mary residence at the time of the sale of se-
curities shall be included as a liability; 
‘‘(C) any natural person who had an indi-
vidual income in excess of $200,000 in each of 
the 2 most recent years or joint income with that 
person’s spouse in excess of $300,000 in each of 
those years and has a reasonable expectation of 
reaching the same income level in the current 
year; 
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171 
‘‘(D) any natural person who is currently 
licensed or registered as a broker or investment 
adviser by the Commission, the Financial Indus-
try Regulatory Authority, or an equivalent self- 
regulatory organization (as defined in section 
3(a)(26) of the Securities Exchange Act of 1934), 
or the securities division of a State or the equiv-
alent State division responsible for licensing or 
registration of individuals in connection with se-
curities activities; 
‘‘(E) any natural person the Commission 
determines, by regulation, to have demonstrable 
education or job experience to qualify such per-
son as having professional knowledge of a subject 
related to a particular investment, and whose 
education or job experience is verified by the Fi-
nancial Industry Regulatory Authority or an 
equivalent self-regulatory organization (as de-
fined in section 3(a)(26) of the Securities Ex-
change Act of 1934); or’’. 
(b) REPEAL.— 
(1) IN
GENERAL.—Section 413 of the Dodd- 
Frank Wall Street Reform and Consumer Protection 
Act (Public Law 111–203) is hereby repealed. 
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172 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act is amended by 
striking the items relating to section 413. 
SEC. 453. REPEAL OF CERTAIN PROVISIONS REQUIRING A 
STUDY AND REPORT TO CONGRESS. 
(a) REPEAL.—The following provisions of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
are repealed: 
(1) Section 412. 
(2) Section 415. 
(3) Section 416. 
(4) Section 417. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended by striking the items 
relating to sections 412, 415, 416, and 417. 
SEC. 454. TECHNICAL CORRECTION. 
Section 224 of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–18c) is amended by striking ‘‘COMMODITIES’’ 
and inserting ‘‘COMMODITY’’. 
SEC. 455. REPEAL. 
(a) REPEAL.—The following sections of title XV of the 
Dodd-Frank Wall Street Reform and Consumer Protection 
Act are repealed, and the provisions of law amended or re-
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173 
pealed by such sections are restored or revived as if such 
sections had not been enacted: 
(1) Section 1502. 
(2) Section 1503. 
(3) Section 1504. 
(4) Section 1505. 
(5) Section 1506. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended by striking the items 
relating to sections 1502, 1503, 1504, 1505, and 1506. 
Subtitle C—Commodity Futures 
Trading Commission Reforms 
SEC. 461. DIVISION DIRECTORS. 
Section 2(a)(6)(C) of the Commodity Exchange Act (7 
U.S.C. 2(a)(6)(C)) is amended by inserting ‘‘, and the heads 
of the units shall serve at the pleasure of the Commission’’ 
before the period. 
SEC. 462. PROCEDURES GOVERNING ACTIONS TAKEN BY 
COMMISSION STAFF. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)) is amended— 
(1) by striking ‘‘(12) The’’ and inserting the fol-
lowing: 
‘‘(12) RULES AND REGULATIONS.— 
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174 
‘‘(A) IN
GENERAL.—Subject to the other 
provisions of this paragraph, the’’; and 
(2) by adding after and below the end the fol-
lowing new subparagraph: 
‘‘(B) NOTICE
TO
COMMISSIONERS.—The 
Commission shall develop and publish internal 
procedures governing the issuance by any divi-
sion or office of the Commission of any response 
to a formal, written request or petition from any 
member of the public for an exemptive, a no-ac-
tion, or an interpretive letter and such proce-
dures shall provide that the commissioners be 
provided with the final version of the matter to 
be issued with sufficient notice to review the 
matter prior to its issuance.’’. 
SEC. 463. STRATEGIC TECHNOLOGY PLAN. 
Section 2(a) of the Commodity Exchange Act (7 U.S.C. 
2(a)), is amended by adding at the end the following: 
‘‘(16) STRATEGIC TECHNOLOGY PLAN.— 
‘‘(A) IN
GENERAL.—Every 5 years, the 
Commission shall develop and submit to the 
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a detailed 
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175 
plan focused on the acquisition and use of tech-
nology by the Commission. 
‘‘(B) CONTENTS.—The plan shall— 
‘‘(i) include for each related division or 
office a detailed technology strategy focused 
on market surveillance and risk detection, 
market data collection, aggregation, inter-
pretation, standardization, harmonization, 
normalization, validation, streamlining or 
other data analytic processes, and internal 
management and protection of data col-
lected by the Commission, including a de-
tailed accounting of how the funds provided 
for technology will be used and the prior-
ities that will apply in the use of the funds; 
‘‘(ii) set forth annual goals to be ac-
complished and annual budgets needed to 
accomplish the goals; and 
‘‘(iii) include a summary of any plan 
of action and milestones to address any 
known information security vulnerability, 
as identified pursuant to a widely accepted 
industry or Government standard, includ-
ing— 
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176 
‘‘(I) specific information about 
the industry or Government standard 
used to identify the known information 
security vulnerability; 
‘‘(II) a detailed time line with 
specific deadlines for addressing the 
known information security vulner-
ability; and 
‘‘(III) an update of any such time 
line and the rationale for any devi-
ation from the time line.’’. 
SEC. 464. INTERNAL RISK CONTROLS. 
(a) IN GENERAL.—Section 2(a)(12) of the Commodity 
Exchange Act (7 U.S.C. 2(a)(12)), as amended by section 
462, is further amended by adding at the end the following: 
‘‘(C) INTERNAL RISK CONTROLS.—The Com-
mission, in consultation with the Chief Econo-
mist, shall develop comprehensive internal risk 
control mechanisms to safeguard and govern the 
storage of all market data by the Commission, 
all market data sharing agreements of the Com-
mission, and all academic research performed at 
the Commission using market data.’’. 
(b) DEFINITION OF CHIEF ECONOMIST.—Section 1a of 
the Commodity Exchange Act (7 U.S.C. 1a) is amended— 
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177 
(1) by redesignating paragraphs (8) through (51) 
as paragraphs (9) through (52); and 
(2) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) CHIEF ECONOMIST.—The term ‘Chief Econ-
omist’ means the Chief Economist of the Commission, 
or an employee of the Commission with comparable 
authority, as determined by the Commission.’’. 
SEC. 465. SUBPOENA DURATION AND RENEWAL. 
Section 6(c)(5) of the Commodity Exchange Act (7 
U.S.C. 9(5)) is amended— 
(1) by striking ‘‘For the purpose of securing’’ 
and inserting the following: 
‘‘(A) IN GENERAL.—For the purpose of se-
curing’’; and 
(2) by adding after and below the end the fol-
lowing: 
‘‘(B) OMNIBUS
ORDERS
OF
INVESTIGA-
TION.— 
‘‘(i) DURATION
AND
RENEWAL.—An 
omnibus order of investigation shall not be 
for an indefinite duration and may be re-
newed only by Commission action. 
‘‘(ii) DEFINITION.—In clause (i), the 
term ‘omnibus order of investigation’ means 
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178 
an order of the Commission authorizing 1 of 
more members of the Commission or its staff 
to issue subpoenas under subparagraph (A) 
to multiple persons in relation to a par-
ticular subject matter area.’’. 
SEC. 466. APPLICABILITY OF NOTICE AND COMMENT RE-
QUIREMENTS OF THE ADMINISTRATIVE PRO-
CEDURE ACT TO GUIDANCE VOTED ON BY 
THE COMMISSION. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)), as amended by section 464, is further 
amended by adding at the end the following: 
‘‘(D) APPLICABILITY OF NOTICE AND COM-
MENT RULES TO GUIDANCE VOTED ON BY THE 
COMMISSION.—The notice and comment require-
ments of section 553 of title 5, United States 
Code, shall also apply with respect to any Com-
mission statement or guidance, including inter-
pretive rules, general statements of policy, or 
rules of Commission organization, procedure, or 
practice, that has the effect of implementing, in-
terpreting or prescribing law or policy and that 
is voted on by the Commission.’’. 
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179 
SEC. 467. JUDICIAL REVIEW OF COMMISSION RULES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 24. JUDICIAL REVIEW OF COMMISSION RULES. 
‘‘(a) A person adversely affected by a rule of the Com-
mission promulgated under this Act may obtain review of 
the rule in the United States Court of Appeals for the Dis-
trict of Columbia Circuit or the United States Court of Ap-
peals for the circuit where the party resides or has the prin-
cipal place of business, by filing in the court, within 60 
days after publication in the Federal Register of the entry 
of the rule, a written petition requesting that the rule be 
set aside. 
‘‘(b) A copy of the petition shall be transmitted forth-
with by the clerk of the court to an officer designated by 
the Commission for that purpose. Thereupon the Commis-
sion shall file in the court the record on which the rule com-
plained of is entered, as provided in section 2112 of title 
28, United States Code, and the Federal Rules of Appellate 
Procedure. 
‘‘(c) On the filing of the petition, the court has juris-
diction, which becomes exclusive on the filing of the record, 
to affirm and enforce or to set aside the rule in whole or 
in part. 
‘‘(d) The court shall affirm and enforce the rule unless 
the Commission’s action in promulgating the rule is found 
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180 
to be arbitrary, capricious, an abuse of discretion, or other-
wise not in accordance with law; contrary to constitutional 
right, power, privilege, or immunity; in excess of statutory 
jurisdiction, authority, or limitations, or short of statutory 
right; or without observance of procedure required by law.’’. 
SEC. 468. CROSS-BORDER REGULATION OF DERIVATIVES 
TRANSACTIONS. 
(a) RULEMAKING REQUIRED.—Within 1 year after the 
date of the enactment of this subtitle, the Commodity Fu-
tures Trading Commission shall issue a rule that address-
es— 
(1) the nature of the connections to the United 
States that require a non-United States person to reg-
ister as a swap dealer or a major swap participant 
under the Commodity Exchange Act and the regula-
tions issued under such Act; 
(2) which of the United States swaps require-
ments apply to the swap activities of non-United 
States persons and United States persons and their 
branches, agencies, subsidiaries, and affiliates outside 
of the United States, and the extent to which the re-
quirements apply; and 
(3) the circumstances under which a United 
States person or non-United States person in compli-
ance with the swaps regulatory requirements of a for-
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181 
eign jurisdiction shall be exempt from United States 
swaps requirements. 
(b) CONTENT OF THE RULE.— 
(1) CRITERIA.—In the rule, the Commission 
shall establish criteria for determining that 1 or more 
categories of the swaps regulatory requirements of a 
foreign jurisdiction are comparable to and as com-
prehensive as United States swaps requirements. The 
criteria shall include— 
(A) the scope and objectives of the swaps 
regulatory requirements of the foreign jurisdic-
tion; 
(B) the effectiveness of the supervisory com-
pliance program administered; 
(C) the enforcement authority exercised by 
the foreign jurisdiction; and 
(D) such other factors as the Commission, 
by rule, determines to be necessary or appro-
priate in the public interest. 
(2) COMPARABILITY.—In the rule, the Commis-
sion shall— 
(A) provide that any non-United States 
person or any transaction between 2 non-United 
States persons shall be exempt from United 
States swaps requirements if the person or trans-
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182 
action is in compliance with the swaps regu-
latory requirements of a foreign jurisdiction 
which the Commission has determined to be com-
parable to and as comprehensive as United 
States swaps requirements; and 
(B) set forth the circumstances in which a 
United States person or a transaction between a 
United States person and a non-United States 
person shall be exempt from United States swaps 
requirements if the person or transaction is in 
compliance with the swaps regulatory require-
ments of a foreign jurisdiction which the Com-
mission has determined to be comparable to and 
as comprehensive as United States swaps re-
quirements. 
(3) OUTCOMES-BASED
COMPARISON.—In devel-
oping and applying the criteria, the Commission 
shall emphasize the results and outcomes of, rather 
than the design and construction of, foreign swaps 
regulatory requirements. 
(4) RISK-BASED RULEMAKING.—In the rule, the 
Commission shall not take into account, for the pur-
poses of determining the applicability of United 
States swaps requirements, the location of personnel 
that arrange, negotiate, or execute swaps. 
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183 
(5) 
PRESERVATION
OF
ANTIFRAUD
AND 
ANTIMANIPULATION
AUTHORITY.—No part of any 
rulemaking under this section shall limit the Commis-
sion’s antifraud or antimanipulation authority. 
(c) APPLICATION OF THE RULE.— 
(1) 
ASSESSMENTS
OF
FOREIGN
JURISDIC-
TIONS.—Beginning on the date on which a final rule 
is issued under this section, the Commission shall 
begin to assess the swaps regulatory requirements of 
foreign jurisdictions, in the order the Commission de-
termines appropriate, in accordance with the criteria 
established pursuant to subsection (b)(1). Following 
each assessment, the Commission shall determine, by 
rule or by order, whether the swaps regulatory re-
quirements of the foreign jurisdiction are comparable 
to and as comprehensive as United States swaps re-
quirements. 
(2) SUBSTITUTED COMPLIANCE FOR UNASSESSED 
MAJOR
MARKETS.—Beginning 18 months after the 
date of enactment of this Act— 
(A) the swaps regulatory requirements of 
each of the 8 foreign jurisdictions with the larg-
est swaps markets, as calculated by notional 
value during the 12-month period ending with 
such date of enactment, except those with respect 
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184 
to which a determination has been made under 
paragraph (1), shall be considered to be com-
parable to and as comprehensive as United 
States swaps requirements; and 
(B) a non-United States person or a trans-
action between 2 non-United States persons shall 
be exempt from United States swaps require-
ments if the person or transaction is in compli-
ance with the swaps regulatory requirements of 
any of such unexcepted foreign jurisdictions. 
(3) SUSPENSION
OF
SUBSTITUTED
COMPLI-
ANCE.—If the Commission determines, by rule or by 
order, that— 
(A) the swaps regulatory requirements of a 
foreign jurisdiction are not comparable to and as 
comprehensive as United States swaps require-
ments, using the categories and criteria estab-
lished under subsection (b)(1); 
(B) the foreign jurisdiction does not exempt 
from its swaps regulatory requirements United 
States persons who are in compliance with 
United States swaps requirements; or 
(C) the foreign jurisdiction is not providing 
equivalent recognition of, or substituted compli-
ance for, registered entities (as defined in section 
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185 
1a(41) of the Commodity Exchange Act) domi-
ciled in the United States, 
the Commission may suspend, in whole or in part, a 
determination made under paragraph (1) or a consid-
eration granted under paragraph (2). 
(d) PETITION FOR REVIEW OF FOREIGN JURISDICTION 
PRACTICES.—A registered entity, commercial market par-
ticipant (as defined in section 1a(7) of the Commodity Ex-
change Act), or Commission registrant (within the meaning 
of such Act) who petitions the Commission to make or 
change a determination under subsection (c)(1) or (c)(3) of 
this section shall be entitled to expedited consideration of 
the petition. A petition shall include any evidence or other 
supporting materials to justify why the petitioner believes 
the Commission should make or change the determination. 
Petitions under this section shall be considered by the Com-
mission any time following the enactment of this Act. With-
in 180 days after receipt of a petition for a rulemaking 
under this section, the Commission shall take final action 
on the petition. Within 90 days after receipt of a petition 
to issue an order or change an order issued under this sec-
tion, the Commission shall take final action on the petition. 
(e) REPORT TO CONGRESS.—If the Commission makes 
a determination described in this section through an order, 
the Commission shall articulate the basis for the determina-
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186 
tion in a written report published in the Federal Register 
and transmitted to the Committee on Agriculture of the 
House of Representatives and Committee on Agriculture, 
Nutrition, and Forestry of the Senate within 15 days of 
the determination. The determination shall not be effective 
until 15 days after the committees receive the report. 
(f) DEFINITIONS.—As used in this section and for pur-
poses of the rules issued pursuant to this section, the fol-
lowing definitions apply: 
(1) UNITED STATES PERSON.—The term ‘‘United 
States person’’— 
(A) means— 
(i) any natural person resident in the 
United States; 
(ii) 
any 
partnership, 
corporation, 
trust, or other legal person organized or in-
corporated under the laws of the United 
States or having its principal place of busi-
ness in the United States; 
(iii) any account (whether discre-
tionary or non-discretionary) of a United 
States person; and 
(iv) any other person as the Commis-
sion may further define to more effectively 
carry out the purposes of this section; and 
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187 
(B) does not include the International Mon-
etary Fund, the International Bank for Recon-
struction and Development, the Inter-American 
Development Bank, the Asian Development 
Bank, the African Development Bank, the United 
Nations, their agencies or pension plans, or any 
other similar international organizations or 
their agencies or pension plans. 
(2) UNITED
STATES
SWAPS
REQUIREMENTS.— 
The term ‘‘United States swaps requirements’’ means 
the provisions relating to swaps contained in the 
Commodity Exchange Act (7 U.S.C. 1a et seq.) that 
were added by title VII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 
U.S.C. 8301 et seq.) and any rules or regulations pre-
scribed by the Commodity Futures Trading Commis-
sion pursuant to such provisions. 
(3) FOREIGN JURISDICTION.—The term ‘‘foreign 
jurisdiction’’ means any national or supranational 
political entity with common rules governing swaps 
transactions. 
(4) SWAPS REGULATORY REQUIREMENTS.—The 
term ‘‘swaps regulatory requirements’’ means any 
provisions of law, and any rules or regulations pursu-
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188 
ant to the provisions, governing swaps transactions or 
the counterparties to swaps transactions. 
(g) CONFORMING AMENDMENT.—Section 4(c)(1)(A) of 
the Commodity Exchange Act (7 U.S.C. 6(c)(1)(A)) is 
amended by inserting ‘‘or except as necessary to effectuate 
the purposes of the Commodity End-User Relief Act,’’ after 
‘‘to grant exemptions,’’. 
Subtitle D—Harmonization of 
Derivatives Rules 
SEC. 471. AGENCY REVIEW AND HARMONIZATION OF RULES 
RELATING TO THE REGULATION OF OVER- 
THE-COUNTER SWAPS MARKETS. 
The Securities and Exchange Commission and the 
Commodity Futures Trading Commission shall review each 
rule, order, and interpretive guidance issued by either such 
Commission pursuant to title VII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 U.S.C. 
8301 et seq.) and, where the Commissions find inconsist-
encies in any such rules, orders, or interpretive guidance, 
shall jointly issue new rules, orders, or interpretive guid-
ance to resolve such inconsistencies. 
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189 
TITLE 
V—IMPROVING 
INSUR-
ANCE 
COORDINATION 
THROUGH AN INDEPENDENT 
ADVOCATE 
SEC. 501. REPEAL OF THE FEDERAL INSURANCE OFFICE; 
CREATION OF THE OFFICE OF THE INDE-
PENDENT INSURANCE ADVOCATE. 
(a) ESTABLISHMENT.—Section 313 of title 31, United 
States Code, is amended to read as follows (and conforming 
the table of contents for chapter 3 of such title accordingly): 
‘‘§ 313. Office of the Independent Insurance Advocate 
‘‘(a) ESTABLISHMENT.—There is established in the De-
partment of the Treasury a bureau to be known as the Office 
of the Independent Insurance Advocate (in this section re-
ferred to as the ‘Office’). 
‘‘(b) INDEPENDENT INSURANCE ADVOCATE.— 
‘‘(1) ESTABLISHMENT OF POSITION.—The chief 
officer of the Office of the Independent Insurance Ad-
vocate shall be known as the Independent Insurance 
Advocate. The Independent Insurance Advocate shall 
perform the duties of such office under the general di-
rection of the Secretary of the Treasury. 
‘‘(2) APPOINTMENT.—The Independent Insurance 
Advocate shall be appointed by the President, by and 
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190 
with the advice and consent of the Senate, from 
among persons having insurance expertise. 
‘‘(3) TERM.— 
‘‘(A) IN GENERAL.—The Independent Insur-
ance Advocate shall serve a term of 6 years, un-
less sooner removed by the President upon rea-
sons which shall be communicated to the Senate. 
‘‘(B) SERVICE
AFTER
EXPIRATION.—If a 
successor is not nominated and confirmed by the 
end of the term of service of the Independent In-
surance Advocate, the person serving as Inde-
pendent Insurance Advocate shall continue to 
serve until such time a successor is appointed 
and confirmed. 
‘‘(C) VACANCY.—An Independent Insurance 
Advocate who is appointed to serve the remain-
der of a predecessor’s uncompleted term shall be 
eligible thereafter to be appointed to a full 6 year 
term. 
‘‘(D) ACTING OFFICIAL ON FINANCIAL STA-
BILITY OVERSIGHT COUNCIL.—In the event of a 
vacancy in the office of the Independent Insur-
ance Advocate, and pending the appointment 
and confirmation of a successor, or during the 
absence or disability of the Independent Insur-
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191 
ance Advocate, the Independent Member shall ap-
point a federal official appointed by the Presi-
dent and confirmed by the Senate from a mem-
ber agency of the Financial Stability Oversight 
Council, not otherwise serving on the Council, 
who shall serve as a member of the Council and 
act in the place of the Independent Insurance 
Advocate until such vacancy, absence, or dis-
ability concludes. 
‘‘(4) EMPLOYMENT.—The Independent Insurance 
Advocate shall be an employee of the Federal Govern-
ment within the definition of employee under section 
2105 of title 5, United States Code. 
‘‘(c) INDEPENDENCE; OVERSIGHT.— 
‘‘(1) INDEPENDENCE.—The Secretary of the 
Treasury may not delay or prevent the issuance of 
any rule or the promulgation of any regulation by the 
Independent Insurance Advocate, and may not inter-
vene in any matter or proceeding before the Inde-
pendent Insurance Advocate, unless otherwise specifi-
cally provided by law. 
‘‘(2) OVERSIGHT BY INSPECTOR GENERAL.—The 
Office of the Independent Insurance Advocate shall be 
an office in the establishment of the Department of 
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192 
the Treasury for purposes of the Inspector General 
Act of 1978 (5 U.S.C. App.). 
‘‘(d) RETENTION OF EXISTING STATE REGULATORY 
AUTHORITY.—Nothing in this section or section 314 shall 
be construed to establish or provide the Office or the Depart-
ment of the Treasury with general supervisory or regulatory 
authority over the business of insurance. 
‘‘(e) BUDGET.— 
‘‘(1) ANNUAL
TRANSMITTAL.—For each fiscal 
year, the Independent Insurance Advocate shall trans-
mit a budget estimate and request to the Secretary of 
the Treasury, which shall specify the aggregate 
amount of funds requested for such fiscal year for the 
operations of the Office of the Independent Insurance 
Advocate. 
‘‘(2) INCLUSIONS.—In transmitting the proposed 
budget to the President for approval, the Secretary of 
the Treasury shall include— 
‘‘(A) an aggregate request for the Inde-
pendent Insurance Advocate; and 
‘‘(B) any comments of the Independent In-
surance Advocate with respect to the proposal. 
‘‘(3) PRESIDENT’S BUDGET.—The President shall 
include in each budget of the United States Govern-
ment submitted to the Congress— 
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193 
‘‘(A) a separate statement of the budget esti-
mate prepared in accordance with paragraph 
(1); 
‘‘(B) the amount requested by the President 
for the Independent Insurance Advocate; and 
‘‘(C) any comments of the Independent In-
surance Advocate with respect to the proposal if 
the Independent Insurance Advocate concludes 
that the budget submitted by the President would 
substantially inhibit the Independent Insurance 
Advocate from performing the duties of the office. 
‘‘(f) ASSISTANCE.—The Secretary of the Treasury shall 
provide the Independent Insurance Advocate such services, 
funds, facilities and other support services as the Inde-
pendent Insurance Advocate may request and as the Sec-
retary may approve. 
‘‘(g) PERSONNEL.— 
‘‘(1) EMPLOYEES.—The Independent Insurance 
Advocate may fix the number of, and appoint and di-
rect, the employees of the Office, in accordance with 
the applicable provisions of title 5, United States 
Code. The Independent Insurance Advocate is author-
ized to employ attorneys, analysts, economists, and 
other employees as may be deemed necessary to assist 
the Independent Insurance Advocate to carry out the 
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194 
duties and functions of the Office. Unless otherwise 
provided expressly by law, any individual appointed 
under this paragraph shall be an employee as defined 
in section 2105 of title 5, United States Code, and 
subject to the provisions of such title and other laws 
generally applicable to the employees of the Executive 
Branch. 
‘‘(2) COMPENSATION.—Employees of the Office 
shall be paid in accordance with the provisions of 
chapter 51 and subchapter III of chapter 53 of title 
5, United States Code, relating to classification and 
General Schedule pay rates. 
‘‘(3) PROCUREMENT OF TEMPORARY AND INTER-
MITTENT SERVICES.—The Independent Insurance Ad-
vocate may procure temporary and intermittent serv-
ices under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the 
daily equivalent of the annual rate of basic pay pre-
scribed for Level V of the Executive Schedule under 
section 5316 of such title. 
‘‘(4) DETAILS.—Any employee of the Federal 
Government may be detailed to the Office with or 
without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or 
privilege. An employee of the Federal Government de-
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195 
tailed to the Office shall report to and be subject to 
oversight by the Independent Insurance Advocate dur-
ing the assignment to the office, and may be com-
pensated by the branch, department, or agency from 
which the employee was detailed. 
‘‘(5) INTERGOVERNMENTAL
PERSONNEL.—The 
Independent Insurance Advocate may enter into 
agreements under subchapter VI of chapter 33 of title 
5, United States Code, with State and local govern-
ments, institutions of higher education, Indian tribal 
governments, and other eligible organizations for the 
assignment of intermittent, part-time, and full-time 
personnel, on a reimbursable or non-reimbursable 
basis. 
‘‘(h) ETHICS.— 
‘‘(1) DESIGNATED ETHICS OFFICIAL.—The Legal 
Counsel of the Financial Stability Oversight Council, 
or in the absence of a Legal Counsel of the Council, 
the designated ethics official of any Council member 
agency, as chosen by the Independent Insurance Advo-
cate, shall be the ethics official for the Independent 
Insurance Advocate. 
‘‘(2) RESTRICTION
ON
REPRESENTATION.—In 
addition to any restriction under section 205(c) of 
title18, United States Code, except as provided in 
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196 
subsections (d) through (i) of section 205 of such title, 
the Independent Insurance Advocate (except in the 
proper discharge of official duties) shall not, with or 
without compensation, represent anyone to or before 
any officer or employee of— 
‘‘(A) the Financial Stability Oversight 
Council on any matter; or 
‘‘(B) the Department of Justice with respect 
to litigation involving a matter described in sub-
paragraph (A). 
‘‘(3) COMPENSATION FOR SERVICES PROVIDED BY 
ANOTHER.—For purposes of section 203 of title 18, 
United States Code, and if a special government em-
ployee— 
‘‘(A) the Independent Insurance Advocate 
shall not be subject to the restrictions of sub-
section (a)(1) of section 203,of title 18, United 
States Code, for sharing in compensation earned 
by another for representations on matters covered 
by such section; and 
‘‘(B) a person shall not be subject to the re-
strictions of subsection (a)(2) of such section for 
sharing such compensation with the Independent 
Insurance Advocate. 
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197 
‘‘(i) ADVISORY, TECHNICAL, AND PROFESSIONAL COM-
MITTEES.—The Independent Insurance Advocate may ap-
point such special advisory, technical, or professional com-
mittees as may be useful in carrying out the functions of 
the Office and the members of such committees may be staff 
of the Office, or other persons, or both. 
‘‘(j) MISSION AND FUNCTIONS.— 
‘‘(1) MISSION.—In carrying out the functions 
under this subsection, the mission of the Office shall 
be to act as an independent advocate on behalf of the 
interests of United States policyholders on prudential 
aspects of insurance matters of importance, and to 
provide perspective on protecting their interests, sepa-
rate and apart from any other Federal agency or 
State insurance regulator. 
‘‘(2) OFFICE.—The Office shall have the author-
ity— 
‘‘(A) to coordinate Federal efforts on pru-
dential aspects of international insurance mat-
ters, including representing the United States, as 
appropriate, in the International Association of 
Insurance Supervisors (or a successor entity) 
and assisting the Secretary in negotiating cov-
ered agreements (as such term is defined in sub-
section (q)) in coordination with States (includ-
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198 
ing State insurance commissioners) and the 
United States Trade Representative; 
‘‘(B) to consult with the States (including 
State insurance regulators) regarding insurance 
matters of national importance and prudential 
insurance matters of international importance; 
‘‘(C) to assist the Secretary in admin-
istering the Terrorism Insurance Program estab-
lished in the Department of the Treasury under 
the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note); 
‘‘(D) to observe all aspects of the insurance 
industry, including identifying issues or gaps in 
the regulation of insurers that could contribute 
to a systemic crisis in the insurance industry or 
the United States financial system; and 
‘‘(E) to make determinations and exercise 
the authority under subsection (m) with respect 
to covered agreements and State insurance meas-
ures. 
‘‘(3) MEMBERSHIP
ON
FINANCIAL
STABILITY 
OVERSIGHT COUNCIL.— 
‘‘(A) IN GENERAL.—The Independent Insur-
ance Advocate shall serve, pursuant to section 
111(b)(1)(J) of the Financial Stability Act of 
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199 
2010 (12 U.S.C. 5321(b)(1)(J)), as a member on 
the Financial Stability Oversight Council. 
‘‘(B) AUTHORITY.—To assist the Financial 
Stability Oversight Council with its responsibil-
ities to monitor international insurance develop-
ments, advise the Congress, and make rec-
ommendations, the Independent Insurance Advo-
cate shall have the authority— 
‘‘(i) to regularly consult with inter-
national insurance supervisors and inter-
national financial stability counterparts; 
‘‘(ii) to consult with the Board of Gov-
ernors of the Federal Reserve System and 
the States with respect to representing the 
United States, as appropriate, in the Inter-
national Association of Insurance Super-
visors (including to become a non-voting 
member thereof), particularly on matters of 
systemic risk; 
‘‘(iii) to participate at the Financial 
Stability Board of The Group of Twenty 
and to join with other members from the 
United States including on matters related 
to insurance; and 
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200 
‘‘(iv) to participate with the United 
States delegation to the Organization for 
Economic Cooperation and Development 
and observe and participate at the Insur-
ance and Private Pensions Committee. 
‘‘(4) LIMITATIONS ON PARTICIPATION IN SUPER-
VISORY COLLEGES.—The Office may not engage in 
any activities that it is not specifically authorized to 
engage in under this section or any other provision 
of law, including participation in any supervisory 
college or other meetings or fora for cooperation and 
communication between the involved insurance super-
visors established for the fundamental purpose of fa-
cilitating the effectiveness of supervision of entities 
which belong to an insurance group. 
‘‘(k) SCOPE.—The authority of the Office as specified 
and limited in this section shall extend to all lines of insur-
ance except— 
‘‘(1) health insurance, as determined by the Sec-
retary in coordination with the Secretary of Health 
and Human Services based on section 2791 of the 
Public Health Service Act (42 U.S.C. 300gg-91); 
‘‘(2) long-term care insurance, except long-term 
care insurance that is included with life or annuity 
insurance components, as determined by the Secretary 
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201 
in coordination with the Secretary of Health and 
Human Services, and in the case of long-term care 
insurance that is included with such components, the 
Secretary shall coordinate with the Secretary of 
Health and Human Services in performing the func-
tions of the Office; and 
‘‘(3) crop insurance, as established by the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.). 
‘‘(l) ACCESS TO INFORMATION.—In carrying out the 
functions required under subsection (j), the Office may co-
ordinate with any relevant Federal agency and any State 
insurance regulator (or other relevant Federal or State reg-
ulatory agency, if any, in the case of an affiliate of an in-
surer) and any publicly available sources for the provision 
to the Office of publicly available information. Notwith-
standing any other provision of law, each such relevant 
Federal agency and State insurance regulator or other Fed-
eral or State regulatory agency is authorized to provide to 
the Office such data or information. 
‘‘(m) PREEMPTION PURSUANT TO COVERED AGREE-
MENTS.— 
‘‘(1) STANDARDS.—A State insurance measure 
shall be preempted pursuant to this section or section 
314 if, and only to the extent that the Independent 
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Insurance Advocate determines, in accordance with 
this subsection, that the measure— 
‘‘(A) results in less favorable treatment of a 
non-United States insurer domiciled in a foreign 
jurisdiction that is subject to a covered agree-
ment than a United States insurer domiciled, li-
censed, or otherwise admitted in that State; and 
‘‘(B) is inconsistent with a covered agree-
ment. 
‘‘(2) DETERMINATION.— 
‘‘(A) NOTICE
OF
POTENTIAL
INCONSIST-
ENCY.—Before making any determination under 
paragraph (1), the Independent Insurance Advo-
cate shall— 
‘‘(i) notify and consult with the appro-
priate State regarding any potential incon-
sistency or preemption; 
‘‘(ii) notify and consult with the 
United States Trade Representative regard-
ing any potential inconsistency or preemp-
tion; 
‘‘(iii) cause to be published in the Fed-
eral Register notice of the issue regarding 
the potential inconsistency or preemption, 
including a description of each State insur-
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203 
ance measure at issue and any applicable 
covered agreement; 
‘‘(iv) provide interested parties a rea-
sonable opportunity to submit written com-
ments to the Office; and 
‘‘(v) consider any comments received. 
‘‘(B) SCOPE OF REVIEW.—For purposes of 
this subsection, any determination of the Inde-
pendent Insurance Advocate regarding State in-
surance measures, and any preemption under 
paragraph (1) as a result of such determination, 
shall be limited to the subject matter contained 
within the covered agreement involved and shall 
achieve a level of protection for insurance or re-
insurance consumers that is substantially equiv-
alent to the level of protection achieved under 
State insurance or reinsurance regulation. 
‘‘(C) NOTICE OF DETERMINATION OF INCON-
SISTENCY.—Upon making any determination 
under paragraph (1), the Director shall— 
‘‘(i) notify the appropriate State of the 
determination and the extent of the incon-
sistency; 
‘‘(ii) establish a reasonable period of 
time, which shall not be less than 30 days, 
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204 
before the determination shall become effec-
tive; and 
‘‘(iii) notify the Committees on Finan-
cial Services and Ways and Means of the 
House of Representatives and the Commit-
tees on Banking, Housing, and Urban Af-
fairs and Finance of the Senate. 
‘‘(3) NOTICE
OF
EFFECTIVENESS.—Upon the 
conclusion of the period referred to in paragraph 
(2)(C)(ii), if the basis for such determination still ex-
ists, the determination shall become effective and the 
Independent Insurance Advocate shall— 
‘‘(A) cause to be published a notice in the 
Federal Register that the preemption has become 
effective, as well as the effective date; and 
‘‘(B) notify the appropriate State. 
‘‘(4) LIMITATION.—No State may enforce a State 
insurance measure to the extent that such measure 
has been preempted under this subsection. 
‘‘(5) APPLICABILITY OF ADMINISTRATIVE PROCE-
DURES ACT.—Determinations of inconsistency made 
pursuant to paragraph (2) shall be subject to the ap-
plicable provisions of subchapter II of chapter 5 of 
title 5, United States Code (relating to administrative 
procedure), and chapter 7 of such title (relating to ju-
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205 
dicial review), except that in any action for judicial 
review of a determination of inconsistency, the court 
shall determine the matter de novo. 
‘‘(n) CONSULTATION.—The Independent Insurance Ad-
vocate shall consult with State insurance regulators, indi-
vidually or collectively, to the extent the Independent Insur-
ance Advocate determines appropriate, in carrying out the 
functions of the Office. 
‘‘(o) NOTICES AND REQUESTS FOR COMMENT.—In ad-
dition to the other functions and duties specified in this 
section, the Independent Insurance Advocate may prescribe 
such notices and requests for comment in the Federal Reg-
ister as are deemed necessary related to and governing the 
manner in which the duties and authorities of the Inde-
pendent Insurance Advocate are carried out; 
‘‘(p) SAVINGS PROVISIONS.—Nothing in this section 
shall— 
‘‘(1) preempt— 
‘‘(A) any State insurance measure that gov-
erns any insurer’s rates, premiums, under-
writing, or sales practices; 
‘‘(B) any State coverage requirements for 
insurance; 
‘‘(C) the application of the antitrust laws of 
any State to the business of insurance; or 
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206 
‘‘(D) any State insurance measure gov-
erning the capital or solvency of an insurer, ex-
cept to the extent that such State insurance 
measure results in less favorable treatment of a 
non-United State insurer than a United States 
insurer; or 
‘‘(2) affect the preemption of any State insur-
ance measure otherwise inconsistent with and pre-
empted by Federal law. 
‘‘(q) RETENTION OF AUTHORITY OF FEDERAL FINAN-
CIAL REGULATORY AGENCIES.—Nothing in this section or 
section 314 shall be construed to limit the authority of any 
Federal financial regulatory agency, including the author-
ity to develop and coordinate policy, negotiate, and enter 
into agreements with foreign governments, authorities, reg-
ulators, and multinational regulatory committees and to 
preempt State measures to affect uniformity with inter-
national regulatory agreements. 
‘‘(r) RETENTION OF AUTHORITY OF UNITED STATES 
TRADE REPRESENTATIVE.—Nothing in this section or sec-
tion 314 shall be construed to affect the authority of the 
Office of the United States Trade Representative pursuant 
to section 141 of the Trade Act of 1974 (19 U.S.C. 2171) 
or any other provision of law, including authority over the 
development and coordination of United States inter-
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207 
national trade policy and the administration of the United 
States trade agreements program. 
‘‘(s) CONGRESSIONAL TESTIMONY.—The Independent 
Insurance Advocate shall appear before the Committee on 
Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs at 
semi-annual hearings and shall provide testimony, which 
shall include submitting written testimony in advance of 
such appearances to such committees and to the Committee 
on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate, on the following 
matters: 
‘‘(1) OFFICE ACTIVITIES.—The efforts, activities, 
objectives, and plans of the Office. 
‘‘(2) SECTION
313(L)
ACTIONS.—Any actions 
taken by the Office pursuant to subsection (l) (regard-
ing preemption pursuant to covered agreements). 
‘‘(3) INSURANCE INDUSTRY.—The state of, and 
developments in, the insurance industry. 
‘‘(4) U.S. AND GLOBAL INSURANCE AND REIN-
SURANCE MARKETS.—The breadth and scope of the 
global insurance and reinsurance markets and the 
critical role such markets plays in supporting insur-
ance in the United States and the ongoing impacts of 
part II of the Nonadmitted and Reinsurance Reform 
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Act of 2010 on the ability of State regulators to access 
reinsurance information for regulated companies in 
their jurisdictions. 
‘‘(5) OTHER.—Any other matters as deemed rel-
evant by the Independent Insurance Advocate or re-
quested by such Committees. 
‘‘(t) REPORT UPON END OF TERM OF OFFICE.—Not 
later than two months prior to the expiration of the term 
of office, or discontinuation of service, of each individual 
serving as the Independent Insurance Advocate, the Inde-
pendent Insurance Advocate shall submit a report to the 
Committees on Financial Services and Ways and Means 
of the House of Representatives and the Committees on 
Banking, Housing, and Urban Affairs and Finance of the 
Senate setting forth recommendations regarding the Finan-
cial Stability Oversight Council and the role, duties, and 
functions of the Independent Insurance Advocate. 
‘‘(u) DEFINITIONS.—In this section and section 314, 
the following definitions shall apply: 
‘‘(1) AFFILIATE.—The term ‘affiliate’ means, 
with respect to an insurer, any person who controls, 
is controlled by, or is under common control with the 
insurer. 
‘‘(2) COVERED AGREEMENT.—The term ‘covered 
agreement’ means a written bilateral or multilateral 
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209 
agreement regarding prudential measures with respect 
to the business of insurance or reinsurance that— 
‘‘(A) is entered into between the United 
States and one or more foreign governments, au-
thorities, or regulatory entities; and 
‘‘(B) relates to the recognition of prudential 
measures with respect to the business of insur-
ance or reinsurance that achieves a level of pro-
tection for insurance or reinsurance consumers 
that is substantially equivalent to the level of 
protection achieved under State insurance or re-
insurance regulation. 
‘‘(3) INSURER.—The term ‘insurer’ means any 
person engaged in the business of insurance, includ-
ing reinsurance. 
‘‘(4) FEDERAL
FINANCIAL
REGULATORY
AGEN-
CY.—The term ‘Federal financial regulatory agency’ 
means the Department of the Treasury, the Board of 
Governors of the Federal Reserve System, the Office of 
the Comptroller of the Currency, the Office of Thrift 
Supervision, the Securities and Exchange Commis-
sion, the Commodity Futures Trading Commission, 
the Federal Deposit Insurance Corporation, the Fed-
eral Housing Finance Agency, or the National Credit 
Union Administration. 
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210 
‘‘(5) FINANCIAL
STABILITY
OVERSIGHT
COUN-
CIL.—The term ‘Financial Stability Oversight Coun-
cil ’ means the Financial Stability Oversight Council 
established under section 111(a) of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 
U.S.C. 5321(a)). 
‘‘(6) MEMBER
AGENCY.—The term ‘member 
agency’ has the meaning given such term in section 
111(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5321(a)). 
‘‘(7) NON-UNITED STATES INSURER.—The term 
‘non-United States insurer’ means an insurer that is 
organized under the laws of a jurisdiction other than 
a State, but does not include any United States 
branch of such an insurer. 
‘‘(8) OFFICE.—The term ‘Office’ means the Office 
of the Independent Insurance Advocate established by 
this section. 
‘‘(9) STATE
INSURANCE
MEASURE.—The term 
‘State insurance measure’ means any State law, regu-
lation, administrative ruling, bulletin, guideline, or 
practice relating to or affecting prudential measures 
applicable to insurance or reinsurance. 
‘‘(10) STATE INSURANCE REGULATOR.—The term 
‘State insurance regulator’ means any State regu-
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211 
latory authority responsible for the supervision of in-
surers. 
‘‘(11) SUBSTANTIALLY
EQUIVALENT
TO
THE 
LEVEL OF PROTECTION ACHIEVED.—The term ‘sub-
stantially equivalent to the level of protection 
achieved’ means the prudential measures of a foreign 
government, authority, or regulatory entity achieve a 
similar outcome in consumer protection as the out-
come achieved under State insurance or reinsurance 
regulation. 
‘‘(12) UNITED
STATES
INSURER.—The term 
‘United States insurer’ means— 
‘‘(A) an insurer that is organized under the 
laws of a State; or 
‘‘(B) a United States branch of a non- 
United States insurer.’’. 
(b) PAY AT LEVEL III OF EXECUTIVE SCHEDULE.— 
Section 5314 of title 5, United States Code, is amended by 
adding at the end the following new item: 
‘‘Independent Insurance Advocate, Department 
of the Treasury.’’. 
(c) VOTING MEMBER OF FSOC.—Paragraph (1) of sec-
tion 111(b) of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act (12 U.S.C. 5321(b)(1)) is amended 
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212 
by striking subparagraph (J) and inserting the following 
new subparagraph: 
‘‘(J) the Independent Insurance Advocate 
appointed pursuant to section 313 of title 31, 
United States Code.’’. 
(d) INDEPENDENCE.—Section 111 of Public Law 93– 
495 (12 U.S.C. 250) is amended— 
(1) by inserting ‘‘the Independent Insurance Ad-
vocate of the Department of the Treasury,’’ after 
‘‘Federal Housing Finance Agency,’’; and 
(2) by inserting ‘‘or official’’ before ‘‘submitting 
them’’. 
(e) TRANSFER OF EMPLOYEES.—All employees of the 
Department of Treasury who are performing staff functions 
for the independent member of the Financial Stability 
Oversight Council under section 111(b)(2)(J) of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
(12 U.S.C. 5321(b)(2)(J)) on a full-time equivalent basis 
as of the date of enactment of this Act shall be eligible for 
transfer to the Office of the Independent Insurance Advocate 
established pursuant to the amendment made by subsection 
(a) of this section for appointment as an employee and shall 
be transferred at the joint discretion of the Independent In-
surance Advocate and the eligible employee. Any employee 
eligible for transfer that is not appointed within 360 days 
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213 
from the date of enactment of this Act shall be eligible for 
detail under section 313(f)(4) of title 31, United States 
Code. 
(f) TEMPORARY
SERVICE; TRANSITION.—Notwith-
standing the amendment made by subsection (a) of this sec-
tion, during the period beginning on the date of the enact-
ment of this Act and ending on the date on which the Inde-
pendent Insurance Advocate is appointed and confirmed 
pursuant to section 313(b)(2) of title 31, United States 
Code, as amended by such amendment, the person serving, 
on such date of enactment, as the independent member of 
the Financial Stability Oversight Council pursuant to sec-
tion 111(b)(1)(J) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5321(b)(1)(J)) 
shall act for all purposes as, and with the full powers of, 
the Independent Insurance Advocate. 
(g) COMPARABILITY IN COMPENSATION SCHEDULES.— 
Subsection (a) of section 1206 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1833b(a)) is amended by inserting ‘‘and the Office of the 
Independent Insurance Advocate of the Department of the 
Treasury,’’ after ‘‘Farm Credit Administration,’’. 
(h) SENIOR EXECUTIVES.—Subparagraph (D) of sec-
tion 3132(a)(1) of title 5, United States Code, is amended 
by inserting ‘‘the Office of the Independent Insurance Advo-
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214 
cate of the Department of the Treasury,’’ after ‘‘Finance 
Agency,’’. 
SEC. 502. TREATMENT OF COVERED AGREEMENTS. 
Subsection (c) of section 314 of title 31, United States 
Code is amended— 
(1) by designating paragraphs (1) and (2) as 
paragraphs (2) and (3), respectively; and 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph: 
‘‘(1) the Secretary of the Treasury and the 
United States Trade Representative have caused to be 
published in the Federal Register, and made available 
for public comment for a period of not fewer than 30 
days and not greater than 90 days (which period 
may run concurrently with the 90-day period for the 
covered agreement referred to in paragraph (3)), the 
proposed text of the covered agreement;’’. 
TITLE 
VI—DEMANDING 
AC-
COUNTABILITY FROM FINAN-
CIAL REGULATORS AND DE-
VOLVING POWER AWAY FROM 
WASHINGTON 
Subtitle A—Cost-Benefit Analyses 
SEC. 611. DEFINITIONS. 
As used in this subtitle— 
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215 
(1) the term ‘‘agency’’ means the Board of Gov-
ernors of the Federal Reserve System, the Consumer 
Financial Opportunity Commission, the Commodity 
Futures Trading Commission, the Federal Deposit In-
surance Corporation, the Federal Housing Finance 
Agency, the Office of the Comptroller of the Currency, 
the National Credit Union Administration, and the 
Securities and Exchange Commission; 
(2) the term ‘‘chief economist’’ means— 
(A) with respect to the Board of Governors 
of the Federal Reserve System, the Director of the 
Division of Research and Statistics, or an em-
ployee of the agency with comparable authority; 
(B) with respect to the Consumer Financial 
Opportunity Commission, the Head of the Office 
of Economic Analysis, or an employee of the 
agency with comparable authority; 
(C) with respect to the Commodity Futures 
Trading Commission, the Chief Economist, or an 
employee of the agency with comparable author-
ity; 
(D) with respect to the Federal Deposit In-
surance Corporation, the Director of the Division 
of Insurance and Research, or an employee of the 
agency with comparable authority; 
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216 
(E) with respect to the Federal Housing Fi-
nance Agency, the Chief Economist, or an em-
ployee of the agency with comparable authority; 
(F) with respect to the Office of the Comp-
troller of the Currency, the Director for Policy 
Analysis, or an employee of the agency with 
comparable authority; 
(G) with respect to the National Credit 
Union Administration, the Chief Economist, or 
an employee of the agency with comparable au-
thority; and 
(H) with respect to the Securities and Ex-
change Commission, the Director of the Division 
of Economic and Risk Analysis, or an employee 
of the agency with comparable authority; 
(3) the term ‘‘Council’’ means the Chief Econo-
mists Council established under section 618; and 
(4) the term ‘‘regulation’’— 
(A) means an agency statement of general 
applicability and future effect that is designed to 
implement, interpret, or prescribe law or policy 
or to describe the procedure or practice require-
ments of an agency, including rules, orders of 
general applicability, interpretive releases, and 
other statements of general applicability that the 
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217 
agency intends to have the force and effect of 
law; and 
(B) does not include— 
(i) a regulation issued in accordance 
with the formal rulemaking provisions of 
section 556 or 557 of title 5, United States 
Code; 
(ii) a regulation that is limited to 
agency organization, management, or per-
sonnel matters; 
(iii) a regulation promulgated pursu-
ant to statutory authority that expressly 
prohibits compliance with this provision; 
(iv) a regulation that is certified by 
the agency to be an emergency action, if 
such certification is published in the Fed-
eral Register; 
(v) a regulation that is promulgated by 
the Board of Governors of the Federal Re-
serve System or the Federal Open Market 
Committee under section 10A, 10B, 13, 
13A, or 19 of the Federal Reserve Act, or 
any of subsections (a) through (f) of section 
14 of that Act; or 
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(vi) a regulation filed with the Com-
mission by a self-regulatory organization— 
(I) that meets the criteria for im-
mediate effectiveness under section 
240.19b-4(f) of title 17, Code of Federal 
Regulations; or 
(II) for which the self-regulatory 
organization has itself conducted the 
cost-benefit analysis and otherwise 
complied with the requirements of sec-
tion 612. 
SEC. 612. REQUIRED REGULATORY ANALYSIS. 
(a) REQUIREMENTS
FOR NOTICES
OF PROPOSED 
RULEMAKING.—An agency may not issue a notice of pro-
posed rulemaking unless the agency includes in the notice 
of proposed rulemaking an analysis that contains, at a 
minimum, with respect to each regulation that is being pro-
posed— 
(1) an identification of the need for the regula-
tion and the regulatory objective, including identifica-
tion of the nature and significance of the market fail-
ure, regulatory failure, or other problem that neces-
sitates the regulation; 
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(2) an explanation of why the private market or 
State, local, or tribal authorities cannot adequately 
address the identified market failure or other problem; 
(3) an analysis of the adverse impacts to regu-
lated entities, other market participants, economic ac-
tivity, or agency effectiveness that are engendered by 
the regulation and the magnitude of such adverse im-
pacts; 
(4) a quantitative and qualitative assessment of 
all anticipated direct and indirect costs and benefits 
of the regulation (as compared to a benchmark that 
assumes the absence of the regulation), including— 
(A) compliance costs; 
(B) effects on economic activity, net job cre-
ation (excluding jobs related to ensuring compli-
ance with the regulation), efficiency, competi-
tion, and capital formation; 
(C) regulatory administrative costs; and 
(D) costs imposed by the regulation on 
State, local, or tribal governments or other regu-
latory authorities; 
(5) if quantified benefits do not outweigh quan-
titative costs, a justification for the regulation; 
(6) an identification and assessment of all avail-
able alternatives to the regulation, including modi-
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fication of an existing regulation or statute, together 
with— 
(A) an explanation of why the regulation 
meets the objectives of the regulation more effec-
tively than the alternatives, and if the agency is 
proposing multiple alternatives, an explanation 
of why a notice of proposed rulemaking, rather 
than an advanced notice of proposed rulemaking, 
is appropriate; and 
(B) if the regulation is not a pilot program, 
an explanation of why a pilot program is not 
appropriate; 
(7) if the regulation specifies the behavior or 
manner of compliance, an explanation of why the 
agency did not instead specify performance objectives; 
(8) an assessment of how the burden imposed by 
the regulation will be distributed among market par-
ticipants, including whether consumers, investors, or 
small businesses will be disproportionately burdened; 
(9) an assessment of the extent to which the regu-
lation is inconsistent, incompatible, or duplicative 
with the existing regulations of the agency or those of 
other domestic and international regulatory authori-
ties with overlapping jurisdiction; 
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(10) a description of any studies, surveys, or 
other data relied upon in preparing the analysis; 
(11) an assessment of the degree to which the key 
assumptions underlying the analysis are subject to 
uncertainty; and 
(12) an explanation of predicted changes in 
market structure and infrastructure and in behavior 
by market participants, including consumers and in-
vestors, assuming that they will pursue their economic 
interests. 
(b) REQUIREMENTS FOR NOTICES OF FINAL RULE-
MAKING.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, an agency may not issue a notice 
of final rulemaking with respect to a regulation un-
less the agency— 
(A) has issued a notice of proposed rule-
making for the relevant regulation; 
(B) has conducted and includes in the no-
tice of final rulemaking an analysis that con-
tains, at a minimum, the elements required 
under subsection (a); and 
(C) includes in the notice of final rule-
making regulatory impact metrics selected by the 
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chief economist to be used in preparing the re-
port required pursuant to section 615. 
(2) CONSIDERATION OF COMMENTS.—The agency 
shall incorporate in the elements described in para-
graph (1)(B) the data and analyses provided to the 
agency by commenters during the comment period, or 
explain why the data or analyses are not being incor-
porated. 
(3) COMMENT
PERIOD.—An agency shall not 
publish a notice of final rulemaking with respect to 
a regulation, unless the agency— 
(A) has allowed at least 90 days from the 
date of publication in the Federal Register of the 
notice of proposed rulemaking for the submission 
of public comments; or 
(B) includes in the notice of final rule-
making an explanation of why the agency was 
not able to provide a 90-day comment period. 
(4) PROHIBITED RULES.— 
(A) IN GENERAL.—An agency may not pub-
lish a notice of final rulemaking if the agency, 
in its analysis under paragraph (1)(B), deter-
mines that the quantified costs are greater than 
the quantified benefits under subsection (a)(5). 
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(B) PUBLICATION
OF
ANALYSIS.—If the 
agency is precluded by subparagraph (A) from 
publishing a notice of final rulemaking, the 
agency shall publish in the Federal Register and 
on the public website of the agency its analysis 
under paragraph (1)(B), and provide the anal-
ysis to each House of Congress. 
(C) CONGRESSIONAL WAIVER.—If the agen-
cy is precluded by subparagraph (A) from pub-
lishing a notice of final rulemaking, Congress, by 
joint resolution pursuant to the procedures set 
forth for joint resolutions in section 802 of title 
5, United States Code, may direct the agency to 
publish a notice of final rulemaking notwith-
standing the prohibition contained in subpara-
graph (A). In applying section 802 of title 5, 
United States Code, for purposes of this para-
graph, section 802(e)(2) shall not apply and the 
terms— 
(i) ‘‘joint resolution’’ or ‘‘joint resolu-
tion described in subsection (a)’’ means only 
a joint resolution introduced during the pe-
riod beginning on the submission or publi-
cation date and ending 60 days thereafter 
(excluding days either House of Congress is 
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adjourned for more than 3 days during a 
session of Congress), the matter after the re-
solving clause of which is as follows: ‘‘That 
Congress directs, notwithstanding the prohi-
bition contained in section 612(b)(4)(A) of 
the Financial CHOICE Act of 2016, the 
ll to publish the notice of final rule-
making for the regulation or regulations 
that were the subject of the analysis sub-
mitted by the ll to Congress on ll.’’ 
(The blank spaces being appropriately filled 
in.); and 
(ii) ‘‘submission or publication date’’ 
means— 
(I) the date on which the analysis 
under paragraph (1)(B) is submitted 
to Congress under paragraph (4)(B); 
or 
(II) if the analysis is submitted to 
Congress less than 60 session days or 
60 legislative days before the date on 
which the Congress adjourns a session 
of Congress, the date on which the 
same or succeeding Congress first con-
venes its next session. 
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225 
SEC. 613. RULE OF CONSTRUCTION. 
For purposes of the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.), obtaining, causing to be obtained, or 
soliciting information for purposes of complying with sec-
tion 612 with respect to a proposed rulemaking shall not 
be construed to be a collection of information, provided that 
the agency has first issued an advanced notice of proposed 
rulemaking in connection with the regulation, identifies 
that advanced notice of proposed rulemaking in its solicita-
tion of information, and informs the person from whom the 
information is obtained or solicited that the provision of 
information is voluntary. 
SEC. 614. PUBLIC AVAILABILITY OF DATA AND REGULATORY 
ANALYSIS. 
(a) IN GENERAL.—At or before the commencement of 
the public comment period with respect to a regulation, the 
agency shall make available on its public website sufficient 
information about the data, methodologies, and assump-
tions underlying the analyses performed pursuant to section 
612 so that the analytical results of the agency are capable 
of being substantially reproduced, subject to an acceptable 
degree of imprecision or error. 
(b) CONFIDENTIALITY.—The agency shall comply with 
subsection (a) in a manner that preserves the confiden-
tiality of nonpublic information, including confidential 
trade secrets, confidential commercial or financial informa-
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tion, and confidential information about positions, trans-
actions, or business practices. 
SEC. 615. FIVE-YEAR REGULATORY IMPACT ANALYSIS. 
(a) IN GENERAL.—Not later than 5 years after the 
date of publication in the Federal Register of a notice of 
final rulemaking, the chief economist of the agency shall 
issue a report that examines the economic impact of the 
subject regulation, including the direct and indirect costs 
and benefits of the regulation. 
(b) REGULATORY IMPACT METRICS.—In preparing the 
report required by subsection (a), the chief economist shall 
employ the regulatory impact metrics included in the notice 
of final rulemaking pursuant to section 612(b)(1)(C). 
(c) REPRODUCIBILITY.—The report shall include the 
data, methodologies, and assumptions underlying the eval-
uation so that the agency’s analytical results are capable 
of being substantially reproduced, subject to an acceptable 
degree of imprecision or error. 
(d) CONFIDENTIALITY.—The agency shall comply with 
subsection (c) in a manner that preserves the confidentiality 
of nonpublic information, including confidential trade se-
crets, confidential commercial or financial information, 
and confidential information about positions, transactions, 
or business practices. 
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(e) REPORT.—The agency shall submit the report re-
quired by subsection (a) to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives and post it on the public website of the agency. The 
Commodity Futures Trading Commission shall also submit 
its report to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture 
of the House of Representatives. 
SEC. 616. RETROSPECTIVE REVIEW OF EXISTING RULES. 
(a) REGULATORY IMPROVEMENT PLAN.—Not later 
than 1 year after the date of enactment of this Act and 
every 5 years thereafter, each agency shall develop, submit 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of 
the House of Representatives, and post on the public website 
of the agency a plan, consistent with law and its resources 
and regulatory priorities, under which the agency will mod-
ify, streamline, expand, or repeal existing regulations so as 
to make the regulatory program of the agency more effective 
or less burdensome in achieving the regulatory objectives. 
The Commodity Futures Trading Commission shall also 
submit its plan to the Committee on Agriculture, Nutrition, 
and Forestry of the Senate and the Committee on Agri-
culture of the House of Representatives. 
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228 
(b) 
IMPLEMENTATION
PROGRESS
REPORT.—Two 
years after the date of submission of each plan required 
under subsection (a), each agency shall develop, submit to 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of 
the House of Representatives, and post on the public website 
of the agency a report of the steps that it has taken to imple-
ment the plan, steps that remain to be taken to implement 
the plan, and, if any parts of the plan will not be imple-
mented, reasons for not implementing those parts of the 
plan. The Commodity Futures Trading Commission shall 
also submit its plan to the Committee on Agriculture, Nu-
trition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives. 
SEC. 617. JUDICIAL REVIEW. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, during the period beginning on the date on 
which a notice of final rulemaking for a regulation is pub-
lished in the Federal Register and ending 1 year later, a 
person that is adversely affected or aggrieved by the regula-
tion is entitled to bring an action in the United States 
Court of Appeals for the District of Columbia Circuit for 
judicial review of agency compliance with the requirements 
of section 612. 
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229 
(b) STAY.—The court may stay the effective date of the 
regulation or any provision thereof. 
(c) RELIEF.—If the court finds that an agency has not 
complied with the requirements of section 612, the court 
shall vacate the subject regulation, unless the agency shows 
by clear and convincing evidence that vacating the regula-
tion would result in irreparable harm. Nothing in this sec-
tion affects other limitations on judicial review or the power 
or duty of the court to dismiss any action or deny relief 
on any other appropriate legal or equitable ground. 
SEC. 618. CHIEF ECONOMISTS COUNCIL. 
(a) ESTABLISHMENT.—There is established the Chief 
Economists Council. 
(b) MEMBERSHIP.—The Council shall consist of the 
chief economist of each agency. The members of the Council 
shall select the first chairperson of the Council. Thereafter 
the position of Chairperson shall rotate annually among the 
members of the Council. 
(c) MEETINGS.—The Council shall meet at the call of 
the Chairperson, but not less frequently than quarterly. 
(d) REPORT.—One year after the effective date of this 
Act and annually thereafter, the Council shall prepare and 
submit to the Committee on Banking, Housing, and Urban 
Affairs and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Financial 
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Services and the Committee on Agriculture of the House 
of Representatives a report on— 
(1) the benefits and costs of regulations adopted 
by the agencies during the past 12 months; 
(2) the regulatory actions planned by the agen-
cies for the upcoming 12 months; 
(3) the cumulative effect of the existing regula-
tions of the agencies on economic activity, innovation, 
international competitiveness of entities regulated by 
the agencies, and net job creation (excluding jobs re-
lated to ensuring compliance with the regulation); 
(4) the training and qualifications of the persons 
who prepared the cost-benefit analyses of each agency 
during the past 12 months; 
(5) the sufficiency of the resources available to 
the chief economists during the past 12 months for the 
conduct of the activities required by this subtitle; and 
(6) recommendations for legislative or regulatory 
action to enhance the efficiency and effectiveness of fi-
nancial regulation in the United States. 
SEC. 619. CONFORMING AMENDMENTS. 
Section 15(a) of the Commodity Exchange Act (7 
U.S.C. 19(a)) is amended— 
(1) by striking paragraph (1); 
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(2) in paragraph (2), by striking ‘‘(2)’’ and all 
that follows through ‘‘light of—’’ and inserting the 
following: 
‘‘(1) CONSIDERATIONS.—Before promulgating a 
regulation under this chapter or issuing an order (ex-
cept as provided in paragraph (2)), the Commission 
shall take into consideration—’’; 
(3) in paragraph (1), as so redesignated— 
(A) in subparagraph (B), by striking ‘‘fu-
tures’’ and inserting ‘‘the relevant’’; 
(B) in subparagraph (C), by adding ‘‘and’’ 
at the end; 
(C) in subparagraph (D), by striking ‘‘; 
and’’ and inserting a period; and 
(D) by striking subparagraph (E); and 
(4) by redesignating paragraph (3) as para-
graph (2). 
SEC. 620. OTHER REGULATORY ENTITIES. 
(a) SECURITIES AND EXCHANGE COMMISSION.—Not 
later than 1 year after the date of enactment of this Act, 
the Securities and Exchange Commission shall provide to 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of 
the House of Representatives a report setting forth a plan 
for subjecting the Public Company Accounting Oversight 
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Board, the Municipal Securities Rulemaking Board, and 
any national securities association registered under section 
15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o– 
4(a)) to the requirements of this subtitle, other than direct 
representation on the Council. 
(b) COMMODITY FUTURES TRADING COMMISSION.— 
Not later than 1 year after the date of enactment of this 
Act, the Commodity Futures Trading Commission shall 
provide to the Committee on Banking, Housing, and Urban 
Affairs of the Senate, the Committee on Financial Services 
of the House of Representatives, the Committee on Agri-
culture, Nutrition, and Forestry of the Senate, and the 
Committee on Agriculture of the House of Representatives 
a report setting forth a plan for subjecting any futures asso-
ciation registered under section 17 of the Commodity Ex-
change Act (7 U.S.C. 21) to the requirements of this subtitle, 
other than direct representation on the Council. 
SEC. 621. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY 
ANALYSES. 
An agency may perform the analyses required by this 
subtitle in conjunction with, or as a part of, any other agen-
da or analysis required by any other provision of law, if 
such other analysis satisfies the provisions of this subtitle. 
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Subtitle B—Congressional Review 
of 
Federal 
Financial 
Agency 
Rulemaking 
SEC. 631. CONGRESSIONAL REVIEW. 
(a)(1)(A) Before a rule may take effect, a Federal fi-
nancial agency shall publish in the Federal Register a list 
of information on which the rule is based, including data, 
scientific and economic studies, and cost-benefit analyses, 
and identify how the public can access such information 
online, and shall submit to each House of the Congress and 
to the Comptroller General a report containing— 
(i) a copy of the rule; 
(ii) a concise general statement relating to the 
rule; 
(iii) a classification of the rule as a major or 
nonmajor rule, including an explanation of the classi-
fication specifically addressing each criteria for a 
major rule contained within subparagraphs (A) 
through (C) of section 634(2); 
(iv) a list of any other related regulatory actions 
intended to implement the same statutory provision 
or regulatory objective as well as the individual and 
aggregate economic effects of those actions; and 
(v) the proposed effective date of the rule. 
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(B) On the date of the submission of the report under 
subparagraph (A), the Federal financial agency shall sub-
mit to the Comptroller General and make available to each 
House of Congress— 
(i) a complete copy of the cost-benefit analysis of 
the rule, if any, including an analysis of any jobs 
added or lost, differentiating between public and pri-
vate sector jobs; 
(ii) the Federal financial agency’s actions pursu-
ant to sections 603, 604, 605, 607, and 609 of title 
5, United States Code; 
(iii) the Federal financial agency’s actions pur-
suant to sections 202, 203, 204, and 205 of the Un-
funded Mandates Reform Act of 1995; and 
(iv) any other relevant information or require-
ments under any other Act and any relevant Execu-
tive orders. 
(C) Upon receipt of a report submitted under subpara-
graph (A), each House shall provide copies of the report 
to the chairman and ranking member of each standing com-
mittee with jurisdiction under the rules of the House of Rep-
resentatives or the Senate to report a bill to amend the pro-
vision of law under which the rule is issued. 
(2)(A) The Comptroller General shall provide a report 
on each major rule to the committees of jurisdiction by the 
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end of 15 calendar days after the submission or publication 
date. The report of the Comptroller General shall include 
an assessment of the Federal financial agency’s compliance 
with procedural steps required by paragraph (1)(B) and 
an assessment of whether the major rule imposes any new 
limits or mandates on private-sector activity. 
(B) Federal financial agencies shall cooperate with the 
Comptroller General by providing information relevant to 
the Comptroller General’s report under subparagraph (A). 
(3) A major rule relating to a report submitted under 
paragraph (1) shall take effect upon enactment of a joint 
resolution of approval described in section 632 or as pro-
vided for in the rule following enactment of a joint resolu-
tion of approval described in section 632, whichever is later. 
(4) A nonmajor rule shall take effect as provided by 
section 633 after submission to Congress under paragraph 
(1). 
(5) If a joint resolution of approval relating to a major 
rule is not enacted within the period provided in subsection 
(b)(2), then a joint resolution of approval relating to the 
same rule may not be considered under this subtitle in the 
same Congress by either the House of Representatives or the 
Senate. 
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(b)(1) A major rule shall not take effect unless the Con-
gress enacts a joint resolution of approval described under 
section 632. 
(2) If a joint resolution described in subsection (a) is 
not enacted into law by the end of 70 session days or legisla-
tive days, as applicable, beginning on the date on which 
the report referred to in subsection (a)(1)(A) is received by 
Congress (excluding days either House of Congress is ad-
journed for more than 3 days during a session of Congress), 
then the rule described in that resolution shall be deemed 
not to be approved and such rule shall not take effect. 
(c)(1) Notwithstanding any other provision of this sec-
tion (except subject to paragraph (3)), a major rule may 
take effect for one 90-calendar-day period if the President 
makes a determination under paragraph (2) and submits 
written notice of such determination to the Congress. 
(2) Paragraph (1) applies to a determination made 
by the President by Executive order that the major rule 
should take effect because such rule is— 
(A) necessary because of an imminent threat to 
health or safety or other emergency; 
(B) necessary for the enforcement of criminal 
laws; 
(C) necessary for national security; or 
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(D) issued pursuant to any statute implementing 
an international trade agreement. 
(3) An exercise by the President of the authority under 
this subsection shall have no effect on the procedures under 
section 632. 
(d)(1) In addition to the opportunity for review other-
wise provided under this subtitle, in the case of any rule 
for which a report was submitted in accordance with sub-
section (a)(1)(A) during the period beginning on the date 
occurring— 
(A) in the case of the Senate, 60 session days; or 
(B) in the case of the House of Representatives, 
60 legislative days, 
before the date the Congress is scheduled to adjourn a session 
of Congress through the date on which the same or suc-
ceeding Congress first convenes its next session, sections 632 
and 633 shall apply to such rule in the succeeding session 
of Congress. 
(2)(A) In applying sections 632 and 633 for purposes 
of such additional review, a rule described under paragraph 
(1) shall be treated as though— 
(i) such rule were published in the Federal Reg-
ister on— 
(I) in the case of the Senate, the 15th ses-
sion day; or 
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(II) in the case of the House of Representa-
tives, the 15th legislative day, 
after the succeeding session of Congress first convenes; 
and 
(ii) a report on such rule were submitted to Con-
gress under subsection (a)(1) on such date. 
(B) Nothing in this paragraph shall be construed to 
affect the requirement under subsection (a)(1) that a report 
shall be submitted to Congress before a rule can take effect. 
(3) A rule described under paragraph (1) shall take 
effect as otherwise provided by law (including other sub-
sections of this section). 
SEC. 632. CONGRESSIONAL APPROVAL PROCEDURE FOR 
MAJOR RULES. 
(a)(1) For purposes of this section, the term ‘‘joint res-
olution’’ means only a joint resolution addressing a report 
classifying 
a 
rule 
as 
major 
pursuant 
to 
section 
631(a)(1)(A)(iii) that— 
(A) bears no preamble; 
(B) bears the following title (with blanks filled as 
appropriate): ‘‘Approving the rule submitted by 
lll relating to lll.’’; 
(C) includes after its resolving clause only the 
following (with blanks filled as appropriate): ‘‘That 
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Congress approves the rule submitted by lll re-
lating to lll.’’; and 
(D) is introduced pursuant to paragraph (2). 
(2) After a House of Congress receives a report 
classifying 
a 
rule 
as 
major 
pursuant 
to 
section 
631(a)(1)(A)(iii), the majority leader of that House (or his 
or her respective designee) shall introduce (by request, if ap-
propriate) a joint resolution described in paragraph (1)— 
(A) in the case of the House of Representatives, 
within 3 legislative days; and 
(B) in the case of the Senate, within 3 session 
days. 
(3) A joint resolution described in paragraph (1) shall 
not be subject to amendment at any stage of proceeding. 
(b) A joint resolution described in subsection (a) shall 
be referred in each House of Congress to the committees hav-
ing jurisdiction over the provision of law under which the 
rule is issued. 
(c) In the Senate, if the committee or committees to 
which a joint resolution described in subsection (a) has been 
referred have not reported it at the end of 15 session days 
after its introduction, such committee or committees shall 
be automatically discharged from further consideration of 
the resolution and it shall be placed on the calendar. A vote 
on final passage of the resolution shall be taken on or before 
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the close of the 15th session day after the resolution is re-
ported by the committee or committees to which it was re-
ferred, or after such committee or committees have been dis-
charged from further consideration of the resolution. 
(d)(1) In the Senate, when the committee or commit-
tees to which a joint resolution is referred have reported, 
or when a committee or committees are discharged (under 
subsection (c)) from further consideration of a joint resolu-
tion described in subsection (a), it is at any time thereafter 
in order (even though a previous motion to the same effect 
has been disagreed to) for a motion to proceed to the consid-
eration of the joint resolution, and all points of order 
against the joint resolution (and against consideration of 
the joint resolution) are waived. The motion is not subject 
to amendment, or to a motion to postpone, or to a motion 
to proceed to the consideration of other business. A motion 
to reconsider the vote by which the motion is agreed to or 
disagreed to shall not be in order. If a motion to proceed 
to the consideration of the joint resolution is agreed to, the 
joint resolution shall remain the unfinished business of the 
Senate until disposed of. 
(2) In the Senate, debate on the joint resolution, and 
on all debatable motions and appeals in connection there-
with, shall be limited to not more than 2 hours, which shall 
be divided equally between those favoring and those oppos-
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241 
ing the joint resolution. A motion to further limit debate 
is in order and not debatable. An amendment to, or a mo-
tion to postpone, or a motion to proceed to the consideration 
of other business, or a motion to recommit the joint resolu-
tion is not in order. 
(3) In the Senate, immediately following the conclu-
sion of the debate on a joint resolution described in sub-
section (a), and a single quorum call at the conclusion of 
the debate if requested in accordance with the rules of the 
Senate, the vote on final passage of the joint resolution shall 
occur. 
(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (a) 
shall be decided without debate. 
(e) In the House of Representatives, if any committee 
to which a joint resolution described in subsection (a) has 
been referred has not reported it to the House at the end 
of 15 legislative days after its introduction, such committee 
shall be discharged from further consideration of the joint 
resolution, and it shall be placed on the appropriate cal-
endar. On the second and fourth Thursdays of each month 
it shall be in order at any time for the Speaker to recognize 
a Member who favors passage of a joint resolution that has 
appeared on the calendar for at least 5 legislative days to 
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242 
call up that joint resolution for immediate consideration 
in the House without intervention of any point of order. 
When so called up a joint resolution shall be considered as 
read and shall be debatable for 1 hour equally divided and 
controlled by the proponent and an opponent, and the pre-
vious question shall be considered as ordered to its passage 
without intervening motion. It shall not be in order to re-
consider the vote on passage. If a vote on final passage of 
the joint resolution has not been taken by the third Thurs-
day on which the Speaker may recognize a Member under 
this subsection, such vote shall be taken on that day. 
(f)(1) If, before passing a joint resolution described in 
subsection (a), one House receives from the other a joint 
resolution having the same text, then— 
(A) the joint resolution of the other House shall 
not be referred to a committee; and 
(B) the procedure in the receiving House shall be 
the same as if no joint resolution had been received 
from the other House until the vote on passage, when 
the joint resolution received from the other House 
shall supplant the joint resolution of the receiving 
House. 
(2) This subsection shall not apply to the House of 
Representatives if the joint resolution received from the Sen-
ate is a revenue measure. 
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243 
(g) If either House has not taken a vote on final pas-
sage of the joint resolution by the last day of the period 
described in section 631(b)(2), then such vote shall be taken 
on that day. 
(h) This section and section 633 are enacted by Con-
gress— 
(1) as an exercise of the rulemaking power of the 
Senate and House of Representatives, respectively, 
and as such is deemed to be part of the rules of each 
House, respectively, but applicable only with respect 
to the procedure to be followed in that House in the 
case of a joint resolution described in subsection (a) 
and superseding other rules only where explicitly so; 
and 
(2) with full recognition of the Constitutional 
right of either House to change the rules (so far as 
they relate to the procedure of that House) at any 
time, in the same manner and to the same extent as 
in the case of any other rule of that House. 
SEC. 633. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR 
NONMAJOR RULES. 
(a) For purposes of this section, the term ‘‘joint resolu-
tion’’ means only a joint resolution introduced in the period 
beginning on the date on which the report referred to in 
section 631(a)(1)(A) is received by Congress and ending 60 
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244 
days thereafter (excluding days either House of Congress is 
adjourned for more than 3 days during a session of Con-
gress), the matter after the resolving clause of which is as 
follows: ‘‘That Congress disapproves the nonmajor rule sub-
mitted by the lll relating to lll, and such rule 
shall have no force or effect.’’ (The blank spaces being appro-
priately filled in). 
(b) A joint resolution described in subsection (a) shall 
be referred to the committees in each House of Congress with 
jurisdiction. 
(c) In the Senate, if the committee to which is referred 
a joint resolution described in subsection (a) has not re-
ported such joint resolution (or an identical joint resolu-
tion) at the end of 15 session days after the date of introduc-
tion of the joint resolution, such committee may be dis-
charged from further consideration of such joint resolution 
upon a petition supported in writing by 30 Members of the 
Senate, and such joint resolution shall be placed on the cal-
endar. 
(d)(1) In the Senate, when the committee to which a 
joint resolution is referred has reported, or when a com-
mittee is discharged (under subsection (c)) from further con-
sideration of a joint resolution described in subsection (a), 
it is at any time thereafter in order (even though a previous 
motion to the same effect has been disagreed to) for a motion 
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245 
to proceed to the consideration of the joint resolution, and 
all points of order against the joint resolution (and against 
consideration of the joint resolution) are waived. The mo-
tion is not subject to amendment, or to a motion to post-
pone, or to a motion to proceed to the consideration of other 
business. A motion to reconsider the vote by which the mo-
tion is agreed to or disagreed to shall not be in order. If 
a motion to proceed to the consideration of the joint resolu-
tion is agreed to, the joint resolution shall remain the unfin-
ished business of the Senate until disposed of. 
(2) In the Senate, debate on the joint resolution, and 
on all debatable motions and appeals in connection there-
with, shall be limited to not more than 10 hours, which 
shall be divided equally between those favoring and those 
opposing the joint resolution. A motion to further limit de-
bate is in order and not debatable. An amendment to, or 
a motion to postpone, or a motion to proceed to the consid-
eration of other business, or a motion to recommit the joint 
resolution is not in order. 
(3) In the Senate, immediately following the conclu-
sion of the debate on a joint resolution described in sub-
section (a), and a single quorum call at the conclusion of 
the debate if requested in accordance with the rules of the 
Senate, the vote on final passage of the joint resolution shall 
occur. 
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246 
(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the procedure 
relating to a joint resolution described in subsection (a) 
shall be decided without debate. 
(e) In the Senate, the procedure specified in subsection 
(c) or (d) shall not apply to the consideration of a joint 
resolution respecting a nonmajor rule— 
(1) after the expiration of the 60 session days be-
ginning with the applicable submission or publication 
date; or 
(2) if the report under section 631(a)(1)(A) was 
submitted during the period referred to in section 
631(d)(1), after the expiration of the 60 session days 
beginning on the 15th session day after the succeeding 
session of Congress first convenes. 
(f) If, before the passage by one House of a joint resolu-
tion of that House described in subsection (a), that House 
receives from the other House a joint resolution described 
in subsection (a), then the following procedures shall apply: 
(1) The joint resolution of the other House shall 
not be referred to a committee. 
(2) With respect to a joint resolution described in 
subsection (a) of the House receiving the joint resolu-
tion— 
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(A) the procedure in that House shall be the 
same as if no joint resolution had been received 
from the other House; but 
(B) the vote on final passage shall be on the 
joint resolution of the other House. 
SEC. 634. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term ‘‘Federal financial agency’’ means 
the Consumer Financial Opportunity Commission, 
Board of Governors of the Federal Reserve System, the 
Commodity Futures Trading Commission, the Federal 
Deposit Insurance Corporation, the Federal Housing 
Finance Agency, the Office of the Comptroller of the 
Currency, the National Credit Union Administration, 
and the Securities and Exchange Commission. 
(2) The term ‘‘major rule’’ means any rule, in-
cluding an interim final rule, that the Administrator 
of the Office of Information and Regulatory Affairs of 
the Office of Management and Budget finds has re-
sulted in or is likely to result in— 
(A) an annual effect on the economy of $100 
million or more; 
(B) a major increase in costs or prices for 
consumers, individual industries, Federal, State, 
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248 
or local government agencies, or geographic re-
gions; or 
(C) significant adverse effects on competi-
tion, employment, investment, productivity, in-
novation, or on the ability of United States- 
based enterprises to compete with foreign-based 
enterprises in domestic and export markets. 
(3) The term ‘‘nonmajor rule’’ means any rule 
that is not a major rule. 
(4) The term ‘‘rule’’ has the meaning given such 
term in section 551 of title 5, United States Code, ex-
cept that such term does not include— 
(A) any rule of particular applicability, in-
cluding a rule that approves or prescribes for the 
future rates, wages, prices, services, or allow-
ances therefore, corporate or financial structures, 
reorganizations, mergers, or acquisitions thereof, 
or accounting practices or disclosures bearing on 
any of the foregoing; 
(B) any rule relating to agency manage-
ment or personnel; or 
(C) any rule of agency organization, proce-
dure, or practice that does not substantially af-
fect the rights or obligations of non-agency par-
ties. 
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(5) The term ‘‘submission date or publication 
date’’, except as otherwise provided in this subtitle, 
means— 
(A) in the case of a major rule, the date on 
which the Congress receives the report submitted 
under section 631(a)(1)(A); and 
(B) in the case of a nonmajor rule, the later 
of— 
(i) the date on which the Congress re-
ceives the report submitted under section 
631(a)(1)(A); and 
(ii) the date on which the nonmajor 
rule is published in the Federal Register, if 
so published. 
SEC. 635. JUDICIAL REVIEW. 
(a) No determination, finding, action, or omission 
under this subtitle shall be subject to judicial review. 
(b) Notwithstanding subsection (a), a court may deter-
mine whether a Federal financial agency has completed the 
necessary requirements under this subtitle for a rule to take 
effect. 
(c) The enactment of a joint resolution of approval 
under section 632 shall not be interpreted to serve as a 
grant or modification of statutory authority by Congress 
for the promulgation of a rule, shall not extinguish or affect 
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any claim, whether substantive or procedural, against any 
alleged defect in a rule, and shall not form part of the record 
before the court in any judicial proceeding concerning a 
rule except for purposes of determining whether or not the 
rule is in effect. 
SEC. 636. EFFECTIVE DATE OF CERTAIN RULES. 
Notwithstanding section 631— 
(1) any rule that establishes, modifies, opens, 
closes, or conducts a regulatory program for a com-
mercial, recreational, or subsistence activity related to 
hunting, fishing, or camping; or 
(2) any rule other than a major rule which the 
Federal financial agency for good cause finds (and 
incorporates the finding and a brief statement of rea-
sons therefore in the rule issued) that notice and pub-
lic procedure thereon are impracticable, unnecessary, 
or contrary to the public interest, 
shall take effect at such time as the Federal financial agency 
promulgating the rule determines. 
SEC. 637. BUDGETARY EFFECTS OF RULES SUBJECT TO 
SECTION 632 OF THE FINANCIAL CHOICE ACT 
OF 2016. 
Section 257(b)(2) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended by adding 
at the end the following new subparagraph: 
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251 
‘‘(E) BUDGETARY EFFECTS OF RULES SUBJECT 
TO SECTION 632 OF THE FINANCIAL CHOICE ACT OF 
2016.—Any rules subject to the congressional approval 
procedure set forth in section 632 of the Financial 
CHOICE Act of 2016 affecting budget authority, out-
lays, or receipts shall be assumed to be effective unless 
it is not approved in accordance with such section.’’. 
Subtitle C—Judicial Review of 
Agency Actions 
SEC. 641. SCOPE OF JUDICIAL REVIEW OF AGENCY AC-
TIONS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, in any judicial review of an agency action pur-
suant to chapter 7 of title 5, United States Code, to the 
extent necessary to decision and when presented, the review-
ing court shall determine the meaning or applicability of 
the terms of an agency action and decide de novo all rel-
evant questions of law, including the interpretation of con-
stitutional and statutory provisions, and rules made by an 
agency. Notwithstanding any other provision of law, this 
section shall apply in any action for judicial review of 
agency action authorized under any provision of law. No 
law may exempt any such civil action from the application 
of this section except by specific reference to this section. 
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252 
(b) AGENCY DEFINED.—For purposes of this section, 
the term ‘‘agency’’ means the Consumer Financial Oppor-
tunity Commission, the Board of Governors of the Federal 
Reserve System, the Commodity Futures Trading Commis-
sion, the Federal Deposit Insurance Corporation, the Fed-
eral Housing Finance Agency, the Office of the Comptroller 
of the Currency, the National Credit Union Administration, 
and the Securities and Exchange Commission. 
Subtitle D—Leadership of 
Financial Regulators 
SEC. 651. FEDERAL DEPOSIT INSURANCE CORPORATION. 
Section 2 of the Federal Deposit Insurance Act (12 
U.S.C. 1812) is amended— 
(1) in subsection (a)(1), by striking ‘‘5 members’’ 
and all that follows through ‘‘3 of whom’’ and insert-
ing the following: ‘‘5 members, who’’; 
(2) by amending subsection (d) to read as fol-
lows: 
‘‘(d) VACANCY.—Any vacancy on the Board of Direc-
tors shall be filled in the manner in which the original ap-
pointment was made.’’; and 
(3) in subsection (f)— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraph (3) as 
paragraph (2). 
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253 
SEC. 652. FEDERAL HOUSING FINANCE AGENCY. 
(a) ESTABLISHMENT OF BOARD.—Section 1312 of the 
Federal Housing Enterprises Financial Safety and Sound-
ness Act of 1992 (12 U.S.C. 4512) is amended— 
(1) in the heading of such section, by striking 
‘‘DIRECTOR’’ and inserting ‘‘BOARD OF DIREC-
TORS’’; and 
(2) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) ESTABLISHMENT.—There is established the Board 
of Directors of the Agency, which shall serve as the head 
of the Agency. 
‘‘(b) BOARD OF DIRECTORS.— 
‘‘(1) COMPOSITION OF THE BOARD.— 
‘‘(A) IN
GENERAL.—The Board shall be 
composed of 5 members who shall be appointed 
by the President, by and with the advice and 
consent of the Senate, from among individuals 
who— 
‘‘(i) are citizens of the United States; 
and 
‘‘(ii) have a demonstrated under-
standing of financial management or over-
sight, and have a demonstrated under-
standing of capital markets, including the 
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299 
agement under part 735 of title 5, Code of Fed-
eral Regulations; 
‘‘(B) the canons of ethics contained in sub-
part C of part 200 of title 17, Code of Federal 
Regulations, to the same extent as such subpart 
applies to the employees of the Securities and 
Exchange Commission; and 
‘‘(C) the regulations concerning the conduct 
of members and employees and former members 
and employees contained in subpart M of part 
200 of title 17, Code of Federal Regulations, to 
the same extent as such subpart applies to the 
employees of the Securities and Exchange Com-
mission. 
‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINANCIAL 
INFORMATION.—The Board of Governors of the Federal Re-
serve System shall make publicly available, on the website 
of the Board of Governors, a searchable database that con-
tains the names of all members, officers, and employees of 
the Board of Governors who receive an annual salary in 
excess of the annual rate of basic pay for GS–15 of the Gen-
eral Schedule, and— 
‘‘(1) the yearly salary information for such indi-
viduals, along with any nonsalary compensation re-
ceived by such individuals; and 
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325 
(B) MONEY PENALTIES IN ADMINISTRATIVE 
ACTIONS.—Section 21B(b) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78u–2(b)) is 
amended— 
(i) in paragraph (1)— 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking paragraph (3) and in-
serting the following: 
‘‘(3) THIRD TIER.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graphs (1) and (2), the amount of penalty for 
each such act or omission shall not exceed the 
amount specified in subparagraph (B) if— 
‘‘(i) the act or omission described in 
subsection (a) involved fraud, deceit, ma-
nipulation, or deliberate or reckless dis-
regard of a regulatory requirement; and 
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‘‘(D) FOURTH TIER.—Notwithstanding sub-
paragraphs (A), (B), and (C), the maximum 
amount of penalty for each such act or omission 
shall be 3 times the otherwise applicable amount 
in such subparagraphs if, within the 5-year pe-
riod preceding such act or omission, the person 
who committed the act or omission was crimi-
nally convicted for securities fraud or became 
subject to a judgment or order imposing mone-
tary, equitable, or administrative relief in any 
Commission action alleging fraud by that per-
son.’’. 
(B) MONEY PENALTIES IN CIVIL ACTIONS.— 
Section 20(d)(2) of the Securities Act of 1933 (15 
U.S.C. 77t(d)(2)) is amended by adding at the 
end the following: 
‘‘(D) FOURTH TIER.—Notwithstanding sub-
paragraphs (A), (B), and (C), the maximum 
amount of penalty for each such violation shall 
be 3 times the otherwise applicable amount in 
such subparagraphs if, within the 5-year period 
preceding such violation, the defendant was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
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