221 
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 
proposed— 
(1) an identification of the need for the regula-
tion and the regulatory objective, including identi-
fication of the nature and significance of the market 
failure, regulatory failure, or other problem that ne-
cessitates the regulation; 
(2) an explanation of why the private market or 
State, local, or tribal authorities cannot adequately 
address the identified market failure or other prob-
lem; 
(3) an analysis of the adverse impacts to regu-
lated entities, other market participants, economic 
activity, or agency effectiveness that are engendered 
by the regulation and the magnitude of such adverse 
impacts; 
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(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 
creation (excluding jobs related to ensuring 
compliance with the regulation), efficiency, com-
petition, and capital formation; 
(C) regulatory administrative costs; and 
(D) costs imposed by the regulation on 
State, local, or tribal governments or other reg-
ulatory 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-
fication of an existing regulation or statute, together 
with— 
(A) an explanation of why the regulation 
meets the objectives of the regulation more ef-
fectively than the alternatives, and if the agency 
is proposing multiple alternatives, an expla-
nation of why a notice of proposed rulemaking, 
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rather than an advanced notice of proposed 
rulemaking, is appropriate; and 
(B) if the regulation is not a pilot pro-
gram, 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 objec-
tives; 
(8) an assessment of how the burden imposed 
by the regulation will be distributed among market 
participants, including whether consumers, investors, 
or small businesses will be disproportionately bur-
dened; 
(9) an assessment of the extent to which the 
regulation is inconsistent, incompatible, or duplica-
tive with the existing regulations of the agency or 
those of other domestic and international regulatory 
authorities with overlapping jurisdiction; 
(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 
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(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 eco-
nomic 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 chief economist to be used in preparing the 
report required pursuant to section 615. 
(2) 
CONSIDERATION
OF
COMMENTS.—The 
agency shall incorporate in the elements described in 
paragraph (1)(B) the data and analyses provided to 
the agency by commenters during the comment pe-
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riod, or explain why the data or analyses are not 
being incorporated. 
(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 sub-
mission 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 
publish a notice of final rulemaking if the agen-
cy, in its analysis under paragraph (1)(B), de-
termines that the quantified costs are greater 
than the quantified benefits under subsection 
(a)(5). 
(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 
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analysis under paragraph (1)(B), and provide 
the analysis to each House of Congress. 
(C) 
CONGRESSIONAL
WAIVER.—If 
the 
agency is precluded by subparagraph (A) from 
publishing a notice of final rulemaking, Con-
gress, by joint resolution pursuant to the proce-
dures set forth for joint resolutions in section 
802 of title 5, United States Code, may direct 
the agency to publish a notice of final rule-
making notwithstanding the prohibition con-
tained in subparagraph (A). In applying section 
802 of title 5, United States Code, for purposes 
of this paragraph, 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 period beginning on the submission or 
publication date and ending 60 days there-
after (excluding days either House of Con-
gress is adjourned for more than 3 days 
during a session of Congress), the matter 
after the resolving clause of which is as fol-
lows: ‘‘That Congress directs, notwith-
standing the prohibition contained in sec-
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tion 
612(b)(4)(A) 
of 
the 
Financial 
CHOICE Act of 2016, the ll to publish 
the notice of final rulemaking for the regu-
lation or regulations that were the subject 
of the analysis submitted 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 ses-
sion of Congress, the date on which 
the same or succeeding Congress first 
convenes its next session. 
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 
section 612 with respect to a proposed rulemaking shall 
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not be construed to be a collection of information, provided 
that the agency has first issued an advanced notice of pro-
posed rulemaking in connection with the regulation, iden-
tifies that advanced notice of proposed rulemaking in its 
solicitation of information, and informs the person from 
whom the information is obtained or solicited that the pro-
vision of information is voluntary. 
SEC. 614. PUBLIC AVAILABILITY OF DATA AND REGU-
LATORY 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 suffi-
cient information about the data, methodologies, and as-
sumptions 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 con-
fidentiality of nonpublic information, including confiden-
tial trade secrets, confidential commercial or financial in-
formation, and confidential information about positions, 
transactions, or business practices. 
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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 con-
fidentiality of nonpublic information, including confiden-
tial trade secrets, confidential commercial or financial in-
formation, and confidential information about positions, 
transactions, or business practices. 
(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-
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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 sub-
mit its report to the Committee on Agriculture, Nutrition, 
and Forestry of the Senate and the Committee on Agri-
culture 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 Af-
fairs of the Senate and the Committee on Financial Serv-
ices of the House of Representatives, and post on the pub-
lic website of the agency a plan, consistent with law and 
its resources and regulatory priorities, under which the 
agency will modify, 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 Agriculture of the House of Representa-
tives. 
(b) IMPLEMENTATION
PROGRESS
REPORT.—Two 
years after the date of submission of each plan required 
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under subsection (a), each agency shall develop, submit 
to the Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Financial Serv-
ices of the House of Representatives, and post on the pub-
lic website of the agency a report of the steps that it has 
taken to implement the plan, steps that remain to be taken 
to implement the plan, and, if any parts of the plan will 
not be implemented, reasons for not implementing those 
parts of the plan. The Commodity Futures Trading Com-
mission shall also submit its plan to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Agriculture of the House of Representa-
tives. 
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 reg-
ulation 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. 
(b) STAY.—The court may stay the effective date of 
the regulation or any provision thereof. 
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(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 
regulation would result in irreparable harm. Nothing in 
this section 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 Coun-
cil shall select the first chairperson of the Council. There-
after 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, Nutri-
tion, and Forestry of the Senate and the Committee on 
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Financial Services and the Committee on Agriculture of 
the House of Representatives a report on— 
(1) the benefits and costs of regulations adopt-
ed 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, innova-
tion, international competitiveness of entities regu-
lated by the agencies, and net job creation (exclud-
ing jobs related to ensuring compliance with the reg-
ulation); 
(4) the training and qualifications of the per-
sons 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 regu-
latory action to enhance the efficiency and effective-
ness of financial 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— 
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(1) by striking paragraph (1); 
(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 
(except as provided in paragraph (2)), the Commis-
sion 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 
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plan for subjecting the Public Company Accounting Over-
sight 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 Agriculture, Nutrition, and Forestry of the Senate, and 
the Committee on Agriculture of the House of Representa-
tives a report setting forth a plan for subjecting any fu-
tures association registered under section 17 of the Com-
modity Exchange 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 
agenda or analysis required by any other provision of law, 
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if such other analysis satisfies the provisions of this sub-
title. 
Subtitle B—Congressional Review 
of 
Federal 
Financial 
Agency 
Rulemaking 
SEC. 631. CONGRESSIONAL REVIEW. 
(a)(1)(A) Before a rule may take effect, a Federal 
financial 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 in-
formation online, and shall submit to each House of the 
Congress and to the Comptroller General a report con-
taining— 
(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 clas-
sification 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 ac-
tions intended to implement the same statutory pro-
vision or regulatory objective as well as the indi-
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vidual and aggregate economic effects of those ac-
tions; and 
(v) the proposed effective date of the rule. 
(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 pur-
suant 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 sub-
paragraph (A), each House shall provide copies of the re-
port to the chairman and ranking member of each stand-
ing committee with jurisdiction under the rules of the 
House of Representatives or the Senate to report a bill 
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(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 relat-
ing to the same rule may not be considered under this 
subtitle in the same Congress by either the House of Rep-
resentatives or the Senate. 
(b)(1) A major rule shall not take effect unless the 
Congress 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 
legislative days, as applicable, beginning on the date on 
which the report referred to in subsection (a)(1)(A) is re-
ceived by Congress (excluding days either House of Con-
gress is adjourned 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 
section (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 Con-
gress. 
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(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 
(D) issued pursuant to any statute imple-
menting an international trade agreement. 
(3) An exercise by the President of the authority 
under this subsection shall have no effect on the proce-
dures 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 succeeding Congress first convenes its next session, sec-
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tions 632 and 633 shall apply to such rule in the suc-
ceeding session of Congress. 
(2)(A) In applying sections 632 and 633 for purposes 
of such additional review, a rule described under para-
graph (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 
(II) in the case of the House of Represent-
atives, the 15th legislative day, 
after the succeeding session of Congress first con-
venes; and 
(ii) a report on such rule were submitted to 
Congress 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 re-
port 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). 
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SEC. 632. CONGRESSIONAL APPROVAL PROCEDURE FOR 
MAJOR RULES. 
(a)(1) For purposes of this section, the term ‘‘joint 
resolution’’ means only a joint resolution addressing a re-
port 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 
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 appropriate) 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. 
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(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 
having 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 consider-
ation of the resolution and it shall be placed on the cal-
endar. A vote on final passage of the resolution shall be 
taken on or before the close of the 15th session day after 
the resolution is reported by the committee or committees 
to which it was referred, or after such committee or com-
mittees have been discharged 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 reso-
lution described in subsection (a), it is at any time there-
after in order (even though a previous motion to the same 
effect has been disagreed to) for a motion to proceed to 
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the consideration of the joint resolution, and all points of 
order against the joint resolution (and against consider-
ation 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 
opposing the joint resolution. A motion to further limit 
debate is in order and not debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the 
consideration 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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(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the proce-
dure 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 com-
mittee shall be discharged from further consideration of 
the joint resolution, and it shall be placed on the appro-
priate calendar. 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 reso-
lution that has appeared on the calendar for at least 5 
legislative days to call up that joint resolution for imme-
diate 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 previous question shall be considered 
as ordered to its passage without intervening motion. It 
shall not be in order to reconsider the vote on passage. 
If a vote on final passage of the joint resolution has not 
been taken by the third Thursday on which the Speaker 
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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 re-
ceived from the other House until the vote on pas-
sage, 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 
Senate is a revenue measure. 
(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, respec-
tively, and as such is deemed to be part of the rules 
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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 reso-
lution’’ means only a joint resolution introduced in the pe-
riod beginning on the date on which the report referred 
to in section 631(a)(1)(A) is received by Congress and 
ending 60 days thereafter (excluding days either House 
of Congress is adjourned for more than 3 days during a 
session of Congress), the matter after the resolving clause 
of which is as follows: ‘‘That Congress disapproves the 
nonmajor rule submitted by the lll relating to 
lll, and such rule shall have no force or effect.’’ (The 
blank spaces being appropriately filled in). 
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(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 re-
ferred a joint resolution described in subsection (a) has 
not reported such joint resolution (or an identical joint 
resolution) at the end of 15 session days after the date 
of introduction of the joint resolution, such committee may 
be discharged from further consideration of such joint res-
olution upon a petition supported in writing by 30 Mem-
bers of the Senate, and such joint resolution shall be 
placed on the calendar. 
(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 
consideration 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 to proceed to the consideration of the joint 
resolution, and all points of order against the joint resolu-
tion (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 
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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 10 hours, which 
shall be divided equally between those favoring and those 
opposing the joint resolution. A motion to further limit 
debate is in order and not debatable. An amendment to, 
or a motion to postpone, or a motion to proceed to the 
consideration 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. 
(4) Appeals from the decisions of the Chair relating 
to the application of the rules of the Senate to the proce-
dure relating to a joint resolution described in subsection 
(a) shall be decided without debate. 
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(e) In the Senate, the procedure specified in sub-
section (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 
beginning with the applicable submission or publica-
tion 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 res-
olution 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 
resolution— 
(A) the procedure in that House shall be 
the same as if no joint resolution had been re-
ceived from the other House; but 
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(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 Comp-
troller 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 
resulted 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, or local government agencies, or geo-
graphic regions; or 
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(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, except 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 al-
lowances therefore, corporate or financial struc-
tures, 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 sub-
mitted 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 de-
termine 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 af-
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fect 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 con-
cerning 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 
reasons therefore in the rule issued) that notice and 
public procedure thereon are impracticable, unneces-
sary, 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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‘‘(E) BUDGETARY EFFECTS OF RULES SUBJECT 
TO SECTION 632 OF THE FINANCIAL CHOICE ACT OF 
2016.—Any rules subject to the congressional ap-
proval procedure set forth in section 632 of the Fi-
nancial CHOICE Act of 2016 affecting budget au-
thority, outlays, 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 re-
viewing court shall determine the meaning or applicability 
of the terms of an agency action and decide de novo all 
relevant questions of law, including the interpretation of 
constitutional 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 applica-
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tion of this section except by specific reference to this sec-
tion. 
(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 Com-
mission, the Federal Deposit Insurance Corporation, the 
Federal Housing Finance Agency, the Office of the Comp-
troller of the Currency, the National Credit Union Admin-
istration, 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 mem-
bers’’ and all that follows through ‘‘3 of whom’’ and 
inserting 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 
appointment was made.’’; and 
(3) in subsection (f)— 
(A) by striking paragraph (2); and 
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(B) by redesignating paragraph (3) as 
paragraph (2). 
SEC. 652. FEDERAL HOUSING FINANCE AGENCY. 
(a) ESTABLISHMENT OF BOARD.—Section 1312 of 
the Federal Housing Enterprises Financial Safety and 
Soundness 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-
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sight, and have a demonstrated under-
standing of capital markets, including the 
mortgage securities markets and housing 
finance. 
‘‘(B) STAGGERING.—The members of the 
Board shall serve staggered terms, which ini-
tially shall be established by the President for 
terms of 1, 2, 3, 4, and 5 years, respectively. 
‘‘(C) TERMS.— 
‘‘(i) IN GENERAL.—Each member of 
the Board, including the Chair, shall serve 
for a term of 5 years. 
‘‘(ii) REMOVAL.—The President may 
remove any member of the Board for inef-
ficiency, neglect of duty, or malfeasance in 
office. 
‘‘(iii) VACANCIES.—Any member of 
the Board appointed to fill a vacancy oc-
curring before the expiration of the term to 
which that member’s predecessor was ap-
pointed (including the Chair) shall be ap-
pointed only for the remainder of the term. 
‘‘(iv) CONTINUATION
OF
SERVICE.— 
Each member of the Board may continue 
to serve after the expiration of the term of 
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office to which that member was appointed 
until a successor has been appointed by the 
President and confirmed by the Senate, ex-
cept that a member may not continue to 
serve more than 1 year after the date on 
which that member’s term would otherwise 
expire. 
‘‘(v) OTHER
EMPLOYMENT
PROHIB-
ITED.—No member of the Board shall en-
gage in any other business, vocation, or 
employment. 
‘‘(2) AFFILIATION.—Not more than 3 members 
of the Board shall be members of any one political 
party. 
‘‘(3) CHAIR OF THE BOARD.— 
‘‘(A) APPOINTMENT.—The Chair of the 
Board shall be appointed by the President. 
‘‘(B) AUTHORITY.—The Chair shall be the 
principal executive officer of the Agency, and 
shall exercise all of the executive and adminis-
trative functions of the Agency, including with 
respect to— 
‘‘(i) the appointment and supervision 
of personnel employed under the Agency 
(other than personnel employed regularly 
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and full time in the immediate offices of 
members of the Board other than the 
Chair); 
‘‘(ii) the distribution of business 
among personnel appointed and supervised 
by the Chair and among administrative 
units of the Agency; and 
‘‘(iii) the use and expenditure of 
funds. 
‘‘(C) LIMITATION.—In carrying out any of 
the Chair’s functions under the provisions of 
this paragraph the Chair shall be governed by 
general policies of the Agency and by such reg-
ulatory decisions, findings, and determinations 
as the Agency may by law be authorized to 
make. 
‘‘(4) NO IMPAIRMENT BY REASON OF VACAN-
CIES.—No vacancy in the members of the Board 
shall impair the right of the remaining members of 
the Board to exercise all the powers of the Board. 
Three members of the Board shall constitute a 
quorum for the transaction of business, except that 
if there are only 3 members serving on the Board 
because of vacancies in the Board, 2 members of the 
Board shall constitute a quorum for the transaction 
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of business. If there are only 2 members serving on 
the Board because of vacancies in the Board, 2 
members shall constitute a quorum for the 6-month 
period beginning on the date of the vacancy which 
caused the number of Board members to decline to 
2. 
‘‘(5) COMPENSATION.— 
‘‘(A) CHAIR.—The Chair shall receive com-
pensation at the rate prescribed for level I of 
the Executive Schedule under section 5313 of 
title 5, United States Code. 
‘‘(B) OTHER MEMBERS OF THE BOARD.— 
The 4 other members of the Board shall each 
receive compensation at the rate prescribed for 
level II of the Executive Schedule under section 
5314 of title 5, United States Code. 
‘‘(6) INITIAL QUORUM ESTABLISHED.—During 
any time period prior to the confirmation of at least 
two members of the Board, one member of the 
Board shall constitute a quorum for the transaction 
of business. Following the confirmation of at least 2 
additional members of the Board, the quorum re-
quirements of paragraph (4) shall apply.’’. 
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(b) CONFORMING AMENDMENT.—Section 5313 of 
title 5, United States Code, is amended by striking ‘‘Direc-
tor of the Federal Housing Finance Agency.’’. 
(c) DEEMING.—Any reference in a law, regulation, 
document, paper, or other record of the United States to 
the position of the Director of the Federal Housing Fi-
nance Agency shall be deemed a reference to the Board 
of Directors of the Federal Housing Finance Agency. 
SEC. 653. NATIONAL CREDIT UNION ADMINISTRATION. 
Section 102 of the Federal Credit Union Act (12 
U.S.C. 1752a) is amended— 
(1) in subsection (b)(1)— 
(A) by striking ‘‘three’’ and inserting 
‘‘five’’; and 
(B) by striking ‘‘two’’ and inserting 
‘‘three’’; and 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) TERMS.—The term of office of each member of 
the Board shall be five years, and the members shall serve 
staggered terms. Board members shall not be appointed 
to succeed themselves. Any Board member may continue 
to serve as such after the expiration of said member’s term 
until a successor has qualified.’’. 
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SEC. 654. OFFICE OF THE COMPTROLLER OF THE CUR-
RENCY. 
(a) ESTABLISHMENT OF BOARD.—Subsection (b) of 
section 324 of the Revised Statutes of the United States 
(12 U.S.C. 1) is amended to read as follows: 
‘‘(b) BOARD OF DIRECTORS.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Board of Directors of the Office of the Comp-
troller of the Currency (hereinafter referred to as 
the ‘Board’), which shall serve as the head of the 
Office. 
‘‘(2) 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 strong competencies and ex-
periences related to the banking industry. 
‘‘(B) STAGGERING.—The members of the 
Board shall serve staggered terms, which ini-
tially shall be established by the President for 
terms of 1, 2, 3, 4, and 5 years, respectively. 
‘‘(C) TERMS.— 
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‘‘(i) IN GENERAL.—Each member of 
the Board, including the Chair, shall serve 
for a term of 5 years. 
‘‘(ii) REMOVAL.—The President may 
remove any member of the Board for inef-
ficiency, neglect of duty, or malfeasance in 
office. 
‘‘(iii) VACANCIES.—Any member of 
the Board appointed to fill a vacancy oc-
curring before the expiration of the term to 
which that member’s predecessor was ap-
pointed (including the Chair) shall be ap-
pointed only for the remainder of the term. 
‘‘(iv) CONTINUATION
OF
SERVICE.— 
Each member of the Board may continue 
to serve after the expiration of the term of 
office to which that member was appointed 
until a successor has been appointed by the 
President and confirmed by the Senate, ex-
cept that a member may not continue to 
serve more than 1 year after the date on 
which that member’s term would otherwise 
expire. 
‘‘(v) OTHER
EMPLOYMENT
PROHIB-
ITED.—No member of the Board shall en-
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gage in any other business, vocation, or 
employment. 
‘‘(3) AFFILIATION.—Not more than 3 members 
of the Board shall be members of any one political 
party. 
‘‘(4) CHAIR OF THE BOARD.— 
‘‘(A) APPOINTMENT.—The Chair of the 
Board shall be appointed by the President. 
‘‘(B) AUTHORITY.—The Chair shall be the 
principal executive officer of the Office, and 
shall exercise all of the executive and adminis-
trative functions of the Office, including with 
respect to— 
‘‘(i) the appointment and supervision 
of personnel employed under the Office 
(other than personnel employed regularly 
and full time in the immediate offices of 
members of the Board other than the 
Chair); 
‘‘(ii) the distribution of business 
among personnel appointed and supervised 
by the Chair and among administrative 
units of the Office; and 
‘‘(iii) the use and expenditure of 
funds. 
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‘‘(C) LIMITATION.—In carrying out any of 
the Chair’s functions under the provisions of 
this paragraph the Chair shall be governed by 
general policies of the Office and by such regu-
latory decisions, findings, and determinations as 
the Office may by law be authorized to make. 
‘‘(5) NO IMPAIRMENT BY REASON OF VACAN-
CIES.—No vacancy in the members of the Board 
shall impair the right of the remaining members of 
the Board to exercise all the powers of the Board. 
Three members of the Board shall constitute a 
quorum for the transaction of business, except that 
if there are only 3 members serving on the Board 
because of vacancies in the Board, 2 members of the 
Board shall constitute a quorum for the transaction 
of business. If there are only 2 members serving on 
the Board because of vacancies in the Board, 2 
members shall constitute a quorum for the 6-month 
period beginning on the date of the vacancy which 
caused the number of Board members to decline to 
2. 
‘‘(6) COMPENSATION.— 
‘‘(A) CHAIR.—The Chair shall receive com-
pensation at the rate prescribed for level I of 
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the Executive Schedule under section 5313 of 
title 5, United States Code. 
‘‘(B) OTHER MEMBERS OF THE BOARD.— 
The 4 other members of the Board shall each 
receive compensation at the rate prescribed for 
level II of the Executive Schedule under section 
5314 of title 5, United States Code. 
‘‘(7) INITIAL QUORUM ESTABLISHED.—During 
any time period prior to the confirmation of at least 
two members of the Board, one member of the 
Board shall constitute a quorum for the transaction 
of business. Following the confirmation of at least 2 
additional members of the Board, the quorum re-
quirements of paragraph (5) shall apply.’’. 
(b) CONFORMING AMENDMENT.—Section 5314 of 
title 5, United States Code, is amended by striking 
‘‘Comptroller of the Currency.’’. 
(c) DEEMING.—Any reference in a law, regulation, 
document, paper, or other record of the United States to 
the position of the Comptroller of the Currency shall be 
deemed a reference to the Board of Directors of the Office 
of the Comptroller of the Currency. 
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Subtitle E—Congressional 
Oversight of Appropriations 
SEC. 661. BRINGING THE FEDERAL DEPOSIT INSURANCE 
CORPORATION INTO THE REGULAR APPRO-
PRIATIONS PROCESS. 
(a) IN GENERAL.—Section 10 of the Federal Deposit 
Insurance Act (12 U.S.C. 1820) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(a) The’’ and inserting 
the following: 
‘‘(a) POWERS.— 
‘‘(1) IN GENERAL.—The’’; 
(B) by inserting ‘‘, subject to paragraph 
(2) and subsection (l),’’ after ‘‘The Board of 
Directors of the Corporation’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) 
APPROPRIATIONS
REQUIREMENT.—The 
Corporation may only incur obligations or allow and 
pay expenses pursuant to an appropriations Act, 
other than with respect to obligations or expenses 
paid for with funds from the Deposit Insurance 
Fund or incurred, allowed, or paid for the purpose 
of carrying out the insurance function of the Cor-
poration.’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(l) NON-INSURANCE FEES AS OFFSETTING COLLEC-
TIONS.—Any fees collected by the Corporation, except pur-
suant to section 5(d), shall be deposited and credited as 
offsetting collections to the account providing appropria-
tions to the Corporation.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to expenses paid and 
fees collected on or after the date that is 90 days after 
the date of the enactment of the first appropriation Act 
that provides for appropriations to the Federal Deposit 
Insurance Corporation and that is enacted after the date 
of the enactment of this Act. 
SEC. 662. BRINGING THE FEDERAL HOUSING FINANCE 
AGENCY INTO THE REGULAR APPROPRIA-
TIONS PROCESS. 
(a) IN GENERAL.—Section 1316(f) of the Housing 
and Community Development Act of 1992 (12 U.S.C. 
4516(f)) is amended to read as follows: 
‘‘(f) APPROPRIATIONS REQUIREMENT; ASSESSMENTS 
DEPOSITED AS OFFSETTING COLLECTIONS.— 
‘‘(1) 
APPROPRIATIONS
REQUIREMENT.—The 
Agency may only incur obligations or allow and pay 
expenses pursuant to an appropriations Act. 
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‘‘(2) OFFSETTING COLLECTIONS.—Any assess-
ments or other fees collected by the Agency shall be 
deposited and credited as offsetting collections to the 
account providing appropriations to the Agency.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to expenses paid and 
fees collected on or after the date that is 90 days after 
the date of the enactment of the first appropriation Act 
that provides for appropriations to the Federal Housing 
Finance Agency and that is enacted after the date of the 
enactment of this Act. 
SEC. 663. BRINGING THE NATIONAL CREDIT UNION ADMIN-
ISTRATION INTO THE REGULAR APPROPRIA-
TIONS PROCESS. 
(a) IN GENERAL.—Section 105 of the Federal Credit 
Union Act (12 U.S.C. 1755) is amended by striking sub-
sections (d) and (e) and inserting the following: 
‘‘(d) APPROPRIATIONS REQUIREMENT.—The Admin-
istration may only incur obligations or allow and pay ex-
penses pursuant to an appropriations Act, other than with 
respect to obligations or expenses paid for with funds from 
the National Credit Union Share Insurance Fund or in-
curred, allowed, or paid for the purpose of carrying out 
the insurance function of the Administration. 
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‘‘(e) NON-INSURANCE FEES AS OFFSETTING COL-
LECTIONS.—Any fees collected by the Administration, ex-
cept for insurance fees collected under title II, shall be 
deposited and credited as offsetting collections to the ac-
count providing appropriations to the Administration.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to expenses paid and 
fees collected on or after the date that is 90 days after 
the date of the enactment of the first appropriation Act 
that provides for appropriations to the National Credit 
Union Administration and that is enacted after the date 
of the enactment of this Act. 
SEC. 664. BRINGING THE OFFICE OF THE COMPTROLLER 
OF THE CURRENCY INTO THE REGULAR AP-
PROPRIATIONS PROCESS. 
(a) IN GENERAL.—Section 5240A of the Revised 
Statutes of the United States is amended— 
(1) by striking ‘‘Sec. 5240A. The Comptroller 
of the Currency may’’ and inserting the following: 
‘‘SEC. 5240A. APPROPRIATIONS REQUIREMENT; ASSESS-
MENTS DEPOSITED AS OFFSETTING COLLEC-
TIONS. 
‘‘(a) IN GENERAL.—The Board of Directors of the 
Office of the Comptroller of the Currency may’’; 
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(2) by striking ‘‘Funds derived’’ and all that 
follows through the end of the section; and 
(3) by adding at the end the following: 
‘‘(b) APPROPRIATIONS REQUIREMENT.—The Chair 
of the Board of Directors of the Office of the Comptroller 
of the Currency may only incur obligations or allow and 
pay expenses pursuant to an appropriations Act. 
‘‘(c) OFFSETTING COLLECTIONS.—Any assessments 
or other fees collected by the Chair shall be deposited and 
credited as offsetting collections to the account providing 
appropriations to the Board of Directors of the Office of 
the Comptroller of the Currency.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to expenses paid and 
fees collected on or after the date that is 90 days after 
the date of the enactment of the first appropriation Act 
that provides for appropriations to the Board of Directors 
of the Office of the Comptroller of the Currency and that 
is enacted after the date of the enactment of this Act. 
SEC. 665. BRINGING THE NON-MONETARY POLICY RELATED 
FUNCTIONS OF THE BOARD OF GOVERNORS 
OF THE FEDERAL RESERVE SYSTEM INTO 
THE REGULAR APPROPRIATIONS PROCESS. 
The Federal Reserve Act is amended by inserting 
after section 11B the following: 
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‘‘SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON- 
MONETARY POLICY RELATED ADMINISTRA-
TIVE COSTS. 
‘‘(a) APPROPRIATIONS REQUIREMENT.—The Board 
of Governors of the Federal Reserve System and the Fed-
eral reserve banks may only incur obligations or allow and 
pay expenses with respect to non-monetary policy related 
administrative costs pursuant to an appropriations Act. 
‘‘(b) EARNINGS AND ASSESSMENTS USED TO RE-
COVER THE COST OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2) and notwithstanding any other provi-
sion of law, all earnings of the Board of Governors 
of the Federal Reserve System and the Federal re-
serve banks and all amounts collected pursuant to 
section 11(t) that would, absent this section, be used 
to fund the non-monetary policy related administra-
tive costs of the Board of Governors of the Federal 
Reserve System and each of the Federal reserve 
banks shall be deposited into the general fund of the 
Treasury and credited as offsetting collections for 
the amounts appropriated to fund such non-mone-
tary policy related administrative costs. 
‘‘(2) NO DEPOSITS IN EXCESS OF APPROPRIA-
TIONS.—The amount deposited pursuant to para-
graph (1) with respect to a fiscal year shall not ex-
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ceed the amount appropriated to fund the non-mone-
tary policy related administrative costs of the Board 
of Governors of the Federal Reserve System and 
each of the Federal reserve banks for such fiscal 
year. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) MONETARY POLICY.—The term ‘monetary 
policy’ means a strategy for producing a generally 
acceptable exchange medium that supports the pro-
ductive employment of economic resources by reli-
ably serving as both a unit of account and store of 
value. 
‘‘(2) NON-MONETARY POLICY RELATED ADMIN-
ISTRATIVE COSTS.—The term ‘non-monetary policy 
related administrative costs’ means administrative 
costs not related to the conduct of monetary policy, 
and include— 
‘‘(A) direct operating expenses for super-
vising and regulating entities supervised and 
regulated by the Board of Governors of the 
Federal Reserve System, including conducting 
examinations, conducting stress tests, commu-
nicating with the entities regarding supervisory 
matters and laws, and regulations; 
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‘‘(B) operating expenses for activities inte-
gral to carrying out supervisory and regulatory 
responsibilities, such as training staff in the su-
pervisory function, research and analysis func-
tions including library subscription services, and 
collecting and processing regulatory reports 
filed by supervised institutions; and 
‘‘(C) support, overhead, and pension ex-
penses related to the items described under sub-
paragraphs (A) and (B).’’. 
Subtitle F—International Processes 
SEC. 671. REQUIREMENTS FOR INTERNATIONAL PROC-
ESSES. 
(a) BOARD OF GOVERNORS REQUIREMENTS.—Sec-
tion 11 of the Federal Reserve Act (12 U.S.C. 248), as 
amended by section 706, is further amended by adding 
at the end the following new subsection: 
‘‘(w) INTERNATIONAL PROCESSES.— 
‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 
least 30 calendar days before any member or em-
ployee of the Board of Governors of the Federal Re-
serve System participates in a process of setting fi-
nancial standards as a part of any foreign or multi-
national entity, the Board of Governors shall— 
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‘‘(A) issue a notice of the process, includ-
ing the subject matter, scope, and goals of the 
process, to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Board of 
Governors; and 
‘‘(C) solicit public comment, and consult 
with the committees described under subpara-
graph (A), with respect to the subject matter, 
scope, and goals of the process. 
‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 
end of any process described under paragraph (1), 
the Board of Governors shall issue a public report 
on the topics that were discussed during the process 
and any new or revised rulemakings or policy 
changes that the Board of Governors believes should 
be implemented as a result of the process. 
‘‘(3) NOTICE
OF
AGREEMENTS; CONSULTA-
TION.—At least 90 calendar days before any mem-
ber or employee of the Board of Governors of the 
Federal Reserve System participates in a process of 
setting financial standards as a part of any foreign 
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or multinational entity, the Board of Governors 
shall— 
‘‘(A) issue a notice of agreement to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Board of 
Governors; and 
‘‘(C) consult with the committees described 
under subparagraph (A) with respect to the na-
ture of the agreement and any anticipated ef-
fects such agreement will have on the economy. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘process’ shall include any official 
proceeding or meeting on financial regulation of a 
recognized international organization with authority 
to set financial standards on a global or regional 
level, including the Financial Stability Board, the 
Basel Committee on Banking Supervision (or a simi-
lar organization), and the International Association 
of Insurance Supervisors (or a similar organiza-
tion).’’. 
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(b) FDIC REQUIREMENTS.—The Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) is amended by 
adding at the end the following new section: 
‘‘SEC. 51. INTERNATIONAL PROCESSES. 
‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 
30 calendar days before the Board of Directors partici-
pates in a process of setting financial standards as a part 
of any foreign or multinational entity, the Board of Direc-
tors shall— 
‘‘(1) issue a notice of the process, including the 
subject matter, scope, and goals of the process, to 
the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate; 
‘‘(2) make such notice available to the public, 
including on the website of the Corporation; and 
‘‘(3) solicit public comment, and consult with 
the committees described under paragraph (1), with 
respect to the subject matter, scope, and goals of the 
process. 
‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end 
of any process described under subsection (a), the Board 
of Directors shall issue a public report on the topics that 
were discussed at the process and any new or revised 
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279 
rulemakings or policy changes that the Board of Directors 
believes should be implemented as a result of the process. 
‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 
least 90 calendar days before the Board of Directors par-
ticipates in a process of setting financial standards as a 
part of any foreign or multinational entity, the Board of 
Directors shall— 
‘‘(1) issue a notice of agreement to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate; 
‘‘(2) make such notice available to the public, 
including on the website of the Corporation; and 
‘‘(3) consult with the committees described 
under paragraph (1) with respect to the nature of 
the agreement and any anticipated effects such 
agreement will have on the economy. 
‘‘(d) DEFINITION.—For purposes of this section, the 
term ‘process’ shall include any official proceeding or 
meeting on financial regulation of a recognized inter-
national organization with authority to set financial stand-
ards on a global or regional level, including the Financial 
Stability Board, the Basel Committee on Banking Super-
vision (or a similar organization), and the International 
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Association of Insurance Supervisors (or a similar organi-
zation).’’. 
(c) TREASURY REQUIREMENTS.—Section 325 of title 
31, United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(d) INTERNATIONAL PROCESSES.— 
‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 
least 30 calendar days before the Secretary partici-
pates in a process of setting financial standards as 
a part of any foreign or multinational entity, the 
Secretary shall— 
‘‘(A) issue a notice of the process, includ-
ing the subject matter, scope, and goals of the 
process, to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Depart-
ment of the Treasury; and 
‘‘(C) solicit public comment, and consult 
with the committees described under subpara-
graph (A), with respect to the subject matter, 
scope, and goals of the process. 
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‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 
end of any process described under paragraph (1), 
the Secretary shall issue a public report on the top-
ics that were discussed at the process and any new 
or revised rulemakings or policy changes that the 
Secretary believes should be implemented as a result 
of the process. 
‘‘(3) NOTICE
OF
AGREEMENTS; CONSULTA-
TION.—At least 90 calendar days before the Sec-
retary participates in a process of setting financial 
standards as a part of any foreign or multinational 
entity, the Secretary shall— 
‘‘(A) issue a notice of agreement to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Depart-
ment of the Treasury; and 
‘‘(C) consult with the committees described 
under subparagraph (A) with respect to the na-
ture of the agreement and any anticipated ef-
fects such agreement will have on the economy. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘process’ shall include any official 
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proceeding or meeting on financial regulation of a 
recognized international organization with authority 
to set financial standards on a global or regional 
level, including the Financial Stability Board, the 
Basel Committee on Banking Supervision (or a simi-
lar organization), and the International Association 
of Insurance Supervisors (or a similar organiza-
tion).’’. 
(d) OCC REQUIREMENTS.—Chapter one of title LXII 
of the Revised Statutes of the United States (12 U.S.C. 
21 et seq.) is amended— 
(1) by adding at the end the following new sec-
tion: 
‘‘SEC. 5156B. INTERNATIONAL PROCESSES. 
‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 
30 calendar days before the Board of Directors of the Of-
fice of the Comptroller of the Currency participates in a 
process of setting financial standards as a part of any for-
eign or multinational entity, the Board of Directors 
shall— 
‘‘(1) issue a notice of the process, including the 
subject matter, scope, and goals of the process, to 
the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate; 
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‘‘(2) make such notice available to the public, 
including on the website of the Office of the Comp-
troller of the Currency; and 
‘‘(3) solicit public comment, and consult with 
the committees described under paragraph (1), with 
respect to the subject matter, scope, and goals of the 
process. 
‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end 
of any process described under subsection (a), the Board 
of Directors shall issue a public report on the topics that 
were discussed at the process and any new or revised 
rulemakings or policy changes that the Board of Directors 
believes should be implemented as a result of the process. 
‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 
least 90 calendar days before the Board of Directors par-
ticipates in a process of setting financial standards as a 
part of any foreign or multinational entity, the Board of 
Directors shall— 
‘‘(1) issue a notice of agreement to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate; 
‘‘(2) make such notice available to the public, 
including on the website of the Office of the Comp-
troller of the Currency; and 
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284 
‘‘(3) consult with the committees described 
under paragraph (1) with respect to the nature of 
the agreement and any anticipated effects such 
agreement will have on the economy. 
‘‘(d) DEFINITION.—For purposes of this section, the 
term ‘process’ shall include any official proceeding or 
meeting on financial regulation of a recognized inter-
national organization with authority to set financial stand-
ards on a global or regional level, including the Financial 
Stability Board, the Basel Committee on Banking Super-
vision (or a similar organization), and the International 
Association of Insurance Supervisors (or a similar organi-
zation).’’; and 
(2) in the table of contents for such chapter, by 
adding at the end the following new item: 
‘‘5156B. International processes.’’. 
(e) SECURITIES AND EXCHANGE COMMISSION RE-
QUIREMENTS.—Section 4 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78d) is amended by adding at the end 
the following new subsection: 
‘‘(j) INTERNATIONAL PROCESSES.— 
‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 
least 30 calendar days before the Commission par-
ticipates in a process of setting financial standards 
as a part of any foreign or multinational entity, the 
Commission shall— 
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‘‘(A) issue a notice of the process, includ-
ing the subject matter, scope, and goals of the 
process, to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Commis-
sion; and 
‘‘(C) solicit public comment, and consult 
with the committees described under subpara-
graph (A), with respect to the subject matter, 
scope, and goals of the process. 
‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 
end of any process described under paragraph (1), 
the Commission shall issue a public report on the 
topics that were discussed at the process and any 
new or revised rulemakings or policy changes that 
the Commission believes should be implemented as a 
result of the process. 
‘‘(3) NOTICE
OF
AGREEMENTS; CONSULTA-
TION.—At least 90 calendar days before the Com-
mission participates in a process of setting financial 
standards as a part of any foreign or multinational 
entity, the Commission shall— 
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‘‘(A) issue a notice of agreement to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Commis-
sion; and 
‘‘(C) consult with the committees described 
under subparagraph (A) with respect to the na-
ture of the agreement and any anticipated ef-
fects such agreement will have on the economy. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘process’ shall include any official 
proceeding or meeting on financial regulation of a 
recognized international organization with authority 
to set financial standards on a global or regional 
level, including the Financial Stability Board, the 
Basel Committee on Banking Supervision (or a simi-
lar organization), and the International Association 
of Insurance Supervisors (or a similar organiza-
tion).’’. 
(f) COMMODITY FUTURES TRADING COMMISSION RE-
QUIREMENTS.—Section 2 of the Commodity Exchange Act 
(7 U.S.C. 2) is amended by adding at the end the fol-
lowing: 
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‘‘(k) INTERNATIONAL PROCESSES.— 
‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 
least 30 calendar days before the Commission par-
ticipates in a process of setting financial standards 
as a part of any foreign or multinational entity, the 
Commission shall— 
‘‘(A) issue a notice of the process, includ-
ing the subject matter, scope, and goals of the 
process, to— 
‘‘(i) the Committees on Financial 
Services and Agriculture of the House of 
Representatives; and 
‘‘(ii) the Committees on Banking, 
Housing, and Urban Affairs and Agri-
culture, Nutrition, and Forestry of the 
Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Commis-
sion; and 
‘‘(C) solicit public comment, and consult 
with the committees described under subpara-
graph (A), with respect to the subject matter, 
scope, and goals of the process. 
‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 
end of any process described under paragraph (1), 
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the Commission shall issue a public report on the 
topics that were discussed during the process and 
any new or revised rulemakings or policy changes 
that the Commission believes should be implemented 
as a result of the process. 
‘‘(3) NOTICE
OF
AGREEMENTS; CONSULTA-
TION.—At least 90 calendar days before the Com-
mission participates in a process of setting financial 
standards as a part of any foreign or multinational 
entity, the Commission shall— 
‘‘(A) issue a notice of agreement to— 
‘‘(i) the Committees on Financial 
Services and Agriculture of the House of 
Representatives; and 
‘‘(ii) the Committees on Banking, 
Housing, and Urban Affairs and Agri-
culture, Nutrition, and Forestry of the 
Senate; 
‘‘(B) make such notice available to the 
public, including on the website of the Commis-
sion; and 
‘‘(C) consult with the committees described 
under subparagraph (A) with respect to the na-
ture of the agreement and any anticipated ef-
fects such agreement will have on the economy. 
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‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘process’ shall include any official 
proceeding or meeting on financial regulation of a 
recognized international organization with authority 
to set financial standards on a global or regional 
level, including the Financial Stability Board, the 
Basel Committee on Banking Supervision (or a simi-
lar organization), and the International Association 
of Insurance Supervisors (or a similar organiza-
tion).’’. 
TITLE VII—FED OVERSIGHT 
REFORM AND MODERNIZATION 
SEC. 701. REQUIREMENTS FOR POLICY RULES OF THE FED-
ERAL OPEN MARKET COMMITTEE. 
The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended by inserting after section 2B the following new 
section: 
‘‘SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL 
OPEN MARKET COMMITTEE. 
‘‘(a) DEFINITIONS.—In this section the following 
definitions shall apply: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means the Committee on Financial Services 
of the House of Representatives and the Committee 
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on Banking, Housing, and Urban Affairs of the Sen-
ate. 
‘‘(2) DIRECTIVE POLICY RULE.—The term ‘Di-
rective Policy Rule’ means a policy rule developed by 
the Federal Open Market Committee that meets the 
requirements of subsection (c) and that provides the 
basis for the Open Market Operations Directive. 
‘‘(3) GDP.—The term ‘GDP’ means the gross 
domestic product of the United States as computed 
and published by the Department of Commerce. 
‘‘(4) INTERMEDIATE POLICY INPUT.—The term 
‘Intermediate Policy Input’— 
‘‘(A) may include any variable determined 
by the Federal Open Market Committee as a 
necessary input to guide open-market oper-
ations; 
‘‘(B) shall include an estimate of, and the 
method of calculation for, the current rate of 
inflation or current inflation expectations; and 
‘‘(C) shall include, specifying whether the 
variable or estimate is historical, current, or a 
forecast and the method of calculation, at least 
one of— 
‘‘(i) an estimate of real GDP, nominal 
GDP, or potential GDP; 
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‘‘(ii) an estimate of the monetary ag-
gregate compiled by the Board of Gov-
ernors of the Federal Reserve System and 
Federal reserve banks; or 
‘‘(iii) an interactive variable or a net 
estimate composed of the estimates de-
scribed in clauses (i) and (ii). 
‘‘(5) LEGISLATIVE DAY.—The term ‘legislative 
day’ means a day on which either House of Congress 
is in session. 
‘‘(6) OPEN MARKET OPERATIONS DIRECTIVE.— 
The term ‘Open Market Operations Directive’ means 
an order to achieve a specified Policy Instrument 
Target provided to the Federal Reserve Bank of 
New York by the Federal Open Market Committee 
pursuant to powers authorized under section 14 of 
this Act that guide open-market operations. 
‘‘(7) POLICY INSTRUMENT.—The term ‘Policy 
Instrument’ means— 
‘‘(A) the nominal Federal funds rate; 
‘‘(B) the nominal rate of interest paid on 
nonborrowed reserves; or 
‘‘(C) the discount window primary credit 
interest rate most recently published on the 
Federal Reserve Statistical Release on selected 
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interest rates (daily or weekly), commonly re-
ferred to as the H.15 release. 
‘‘(8) POLICY INSTRUMENT TARGET.—The term 
‘Policy Instrument Target’ means the target for the 
Policy Instrument specified in the Open Market Op-
erations Directive. 
‘‘(9) REFERENCE
POLICY
RULE.—The term 
‘Reference Policy Rule’ means a calculation of the 
nominal Federal funds rate as equal to the sum of 
the following: 
‘‘(A) The rate of inflation over the pre-
vious four quarters. 
‘‘(B) One-half of the percentage deviation 
of the real GDP from an estimate of potential 
GDP. 
‘‘(C) One-half of the difference between the 
rate of inflation over the previous four quarters 
and two percent. 
‘‘(D) Two percent. 
‘‘(b) SUBMITTING A DIRECTIVE POLICY RULE.—Not 
later than 48 hours after the end of a meeting of the Fed-
eral Open Market Committee, the Chairman of the Fed-
eral Open Market Committee shall submit to the appro-
priate congressional committees and the Comptroller Gen-
eral of the United States a Directive Policy Rule and a 
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statement that identifies the members of the Federal Open 
Market Committee who voted in favor of the Rule. 
‘‘(c) REQUIREMENTS
FOR
A DIRECTIVE POLICY 
RULE.—A Directive Policy Rule shall— 
‘‘(1) identify the Policy Instrument the Direc-
tive Policy Rule is designed to target; 
‘‘(2) describe the strategy or rule of the Federal 
Open Market Committee for the systematic quan-
titative adjustment of the Policy Instrument Target 
to respond to a change in the Intermediate Policy 
Inputs; 
‘‘(3) include a function that comprehensively 
models the interactive relationship between the In-
termediate Policy Inputs; 
‘‘(4) include the coefficients of the Directive 
Policy Rule that generate the current Policy Instru-
ment Target and a range of predicted future values 
for the Policy Instrument Target if changes occur in 
any Intermediate Policy Input; 
‘‘(5) describe the procedure for adjusting the 
supply of bank reserves to achieve the Policy Instru-
ment Target; 
‘‘(6) include a statement as to whether the Di-
rective Policy Rule substantially conforms to the 
Reference Policy Rule and, if applicable— 
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‘‘(A) an explanation of the extent to which 
it departs from the Reference Policy Rule; 
‘‘(B) a detailed justification for that depar-
ture; and 
‘‘(C) a description of the circumstances 
under which the Directive Policy Rule may be 
amended in the future; 
‘‘(7) include a certification that such Rule is ex-
pected to support the economy in achieving stable 
prices and maximum natural employment over the 
long term; 
‘‘(8) include a calculation that describes with 
mathematical precision the expected annual inflation 
rate over a 5-year period; and 
‘‘(9) include a plan to use the most accurate 
data, subject to all historical revisions, for inputs 
into the Directive Policy Rule and the Reference 
Policy Rule. 
‘‘(d) GAO REPORT.—The Comptroller General of the 
United States shall compare the Directive Policy Rule sub-
mitted under subsection (b) with the rule that was most 
recently submitted to determine whether the Directive Pol-
icy Rule has materially changed. If the Directive Policy 
Rule has materially changed, the Comptroller General 
shall, not later than 7 days after each meeting of the Fed-
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eral Open Market Committee, prepare and submit a com-
pliance report to the appropriate congressional committees 
specifying whether the Directive Policy Rule submitted 
after that meeting and the Federal Open Market Com-
mittee are in compliance with this section. 
‘‘(e) CHANGING MARKET CONDITIONS.— 
‘‘(1) RULE
OF
CONSTRUCTION.—Nothing in 
this Act shall be construed to require that the plans 
with respect to the systematic quantitative adjust-
ment of the Policy Instrument Target described 
under subsection (c)(2) be implemented if the Fed-
eral Open Market Committee determines that such 
plans cannot or should not be achieved due to 
changing market conditions. 
‘‘(2) GAO APPROVAL OF UPDATE.—Upon deter-
mining that plans described in paragraph (1) cannot 
or should not be achieved, the Federal Open Market 
Committee shall submit an explanation for that de-
termination and an updated version of the Directive 
Policy Rule to the Comptroller General of the 
United States and the appropriate congressional 
committees not later than 48 hours after making the 
determination. The Comptroller General shall, not 
later than 48 hours after receiving such updated 
version, prepare and submit to the appropriate con-
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gressional committees a compliance report deter-
mining whether such updated version and the Fed-
eral Open Market Committee are in compliance with 
this section. 
‘‘(f) DIRECTIVE POLICY RULE AND FEDERAL OPEN 
MARKET COMMITTEE NOT IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—If the Comptroller General 
of the United States determines that the Directive 
Policy Rule and the Federal Open Market Com-
mittee are not in compliance with this section in the 
report submitted pursuant to subsection (d), or that 
the updated version of the Directive Policy Rule and 
the Federal Open Market Committee are not in com-
pliance with this section in the report submitted pur-
suant to subsection (e)(2), the Chairman of the 
Board of Governors of the Federal Reserve System 
shall, if requested by the chairman of either of the 
appropriate congressional committees, not later than 
7 legislative days after such request, testify before 
such committee as to why the Directive Policy Rule, 
the updated version, or the Federal Open Market 
Committee is not in compliance. 
‘‘(2) GAO AUDIT.—Notwithstanding subsection 
(b) of section 714 of title 31, United States Code, 
upon submitting a report of noncompliance pursuant 
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to subsection (d) or subsection (e)(2) and after the 
period of 7 legislative days described in paragraph 
(1), the Comptroller General shall audit the conduct 
of monetary policy by the Board of Governors of the 
Federal Reserve System and the Federal Open Mar-
ket Committee upon request of the appropriate con-
gressional committee. Such committee may specify 
the parameters of such audit. 
‘‘(g) CONGRESSIONAL HEARINGS.—The Chairman of 
the Board of Governors of the Federal Reserve System 
shall, if requested by the chairman of either of the appro-
priate congressional committees and not later than 7 legis-
lative days after such request, appear before such com-
mittee to explain any change to the Directive Policy 
Rule.’’. 
SEC. 702. FEDERAL OPEN MARKET COMMITTEE BLACKOUT 
PERIOD. 
Section 12A of the Federal Reserve Act (12 U.S.C. 
263) is amended by adding at the end the following new 
subsection: 
‘‘(d) BLACKOUT PERIOD.— 
‘‘(1) IN GENERAL.—During a blackout period, 
the only public communications that may be made 
by members and staff of the Committee with respect 
to macroeconomic or financial developments or about 
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current or prospective monetary policy issues are the 
following: 
‘‘(A) The dissemination of published data, 
surveys, and reports that have been cleared for 
publication by the Board of Governors of the 
Federal Reserve System. 
‘‘(B) Answers to technical questions spe-
cific to a data release. 
‘‘(C) Communications with respect to the 
prudential or supervisory functions of the 
Board of Governors. 
‘‘(2) BLACKOUT PERIOD DEFINED.—For pur-
poses of this subsection, and with respect to a meet-
ing of the Committee described under subsection (a), 
the term ‘blackout period’ means the time period 
that— 
‘‘(A) begins immediately after midnight on 
the day that is one week prior to the date on 
which such meeting takes place; and 
‘‘(B) ends at midnight on the day after the 
date on which such meeting takes place. 
‘‘(3) EXEMPTION
FOR
CHAIRMAN
OF
THE 
BOARD
OF
GOVERNORS.—Nothing in this section 
shall prohibit the Chairman of the Board of Gov-
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ernors of the Federal Reserve System from partici-
pating in or issuing public communications.’’. 
SEC. 703. MEMBERSHIP OF FEDERAL OPEN MARKET COM-
MITTEE. 
Section 12A(a) of the Federal Reserve Act (12 
U.S.C. 263(a)) is amended— 
(1) in the first sentence, by striking ‘‘five’’ and 
inserting ‘‘six’’; 
(2) in the second sentence, by striking ‘‘One by 
the board of directors’’ and all that follows through 
the period at the end and inserting the following: 
‘‘One by the boards of directors of the Federal Re-
serve Banks of New York and Boston; one by the 
boards of directors of the Federal Reserve Banks of 
Philadelphia and Cleveland; one by the boards of di-
rectors of the Federal Reserve Banks of Richmond 
and Atlanta; one by the boards of directors of the 
Federal Reserve Banks of Chicago and St. Louis; 
one by the boards of directors of the Federal Re-
serve Banks of Minneapolis and Kansas City; and 
one by the boards of directors of the Federal Re-
serve Banks of Dallas and San Francisco.’’; and 
(3) by inserting after the second sentence the 
following: ‘‘In odd numbered calendar years, one 
representative shall be elected from each of the Fed-
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eral Reserve Banks of Boston, Philadelphia, Rich-
mond, Chicago, Minneapolis, and Dallas. In even- 
numbered calendar years, one representative shall be 
elected from each of the Federal Reserve Banks of 
New York, Cleveland, Atlanta, St. Louis, Kansas 
City, and San Francisco.’’. 
SEC. 704. FREQUENCY OF TESTIMONY OF THE CHAIRMAN 
OF THE BOARD OF GOVERNORS OF THE FED-
ERAL RESERVE SYSTEM TO CONGRESS. 
(a) IN GENERAL.—Section 2B of the Federal Reserve 
Act (12 U.S.C. 225b) is amended— 
(1) by striking ‘‘semi-annual’’ each place it ap-
pears and inserting ‘‘quarterly’’; and 
(2) in subsection (a)(2)— 
(A) by inserting ‘‘and October 20’’ after 
‘‘July 20’’ each place it appears; and 
(B) by inserting ‘‘and May 20’’ after 
‘‘February 20’’ each place it appears. 
(b) CONFORMING AMENDMENT.—Paragraph (12) of 
section 10 of the Federal Reserve Act (12 U.S.C. 
247b(12)) is amended by striking ‘‘semi-annual’’ and in-
serting ‘‘quarterly’’. 
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SEC. 705. VICE CHAIRMAN FOR SUPERVISION REPORT RE-
QUIREMENT. 
Paragraph (12) of section 10 of the Federal Reserve 
Act (12 U.S.C. 247(b)) is amended— 
(1) by redesignating such paragraph as para-
graph (11); and 
(2) in such paragraph, by adding at the end the 
following: ‘‘In each such appearance, the Vice Chair-
man for Supervision shall provide written testimony 
that includes the status of all pending and antici-
pated rulemakings that are being made by the 
Board of Governors of the Federal Reserve System. 
If, at the time of any appearance described in this 
paragraph, the position of Vice Chairman for Super-
vision is vacant, the Vice Chairman for the Board of 
Governors of the Federal Reserve System (who has 
the responsibility to serve in the absence of the 
Chairman) shall appear instead and provide the re-
quired written testimony. If, at the time of any ap-
pearance described in this paragraph, both Vice 
Chairman positions are vacant, the Chairman of the 
Board of Governors of the Federal Reserve System 
shall appear instead and provide the required writ-
ten testimony.’’. 
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SEC. 706. SALARIES, FINANCIAL DISCLOSURES, AND OF-
FICE STAFF OF THE BOARD OF GOVERNORS 
OF THE FEDERAL RESERVE SYSTEM. 
(a) IN GENERAL.—Section 11 of the Federal Reserve 
Act (12 U.S.C. 248) is amended— 
(1) by redesignating the second subsection (s) 
(relating to ‘‘Assessments, Fees, and Other Charges 
for Certain Companies’’) as subsection (t); and 
(2) by adding at the end the following new sub-
sections: 
‘‘(u) ETHICS STANDARDS FOR MEMBERS AND EM-
PLOYEES.— 
‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL 
INTERESTS AND TRANSACTIONS.—The members and 
employees of the Board of Governors of the Federal 
Reserve System shall be subject to the provisions 
under section 4401.102 of title 5, Code of Federal 
Regulations, to the same extent as such provisions 
apply to an employee of the Securities and Exchange 
Commission. 
‘‘(2) TREATMENT
OF
BROKERAGE
ACCOUNTS 
AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 
members and employees of the Board of Governors 
of the Federal Reserve System shall— 
‘‘(A) disclose all brokerage accounts that 
they maintain, as well as those in which they 
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control trading or have a financial interest (in-
cluding managed accounts, trust accounts, in-
vestment club accounts, and the accounts of 
spouses or minor children who live with the 
member or employee); and 
‘‘(B) with respect to any securities account 
that the member or employee is required to dis-
close to the Board of Governors, authorize their 
brokers and dealers to send duplicate account 
statements directly to Board of Governors. 
‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM-
PLOYMENT AND ACTIVITIES.—The members and em-
ployees of the Board of Governors of the Federal 
Reserve System shall be subject to the prohibitions 
related to outside employment and activities de-
scribed under section 4401.103(c) of title 5, Code of 
Federal Regulations, to the same extent as such pro-
hibitions apply to an employee of the Securities and 
Exchange Commission. 
‘‘(4) ADDITIONAL
ETHICS
STANDARDS.—The 
members and employees of the Board of Governors 
of the Federal Reserve System shall be subject to— 
‘‘(A) the employee responsibilities and con-
duct regulations of the Office of Personnel 
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Management under part 735 of title 5, Code of 
Federal 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 con-
duct of members and employees and former 
members and employees contained in subpart M 
of part 200 of title 17, Code of Federal Regula-
tions, to the same extent as such subpart ap-
plies to the employees of the Securities and Ex-
change Commission. 
‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINAN-
CIAL INFORMATION.—The Board of Governors of the Fed-
eral Reserve System shall make publicly available, on the 
website of the Board of Governors, a searchable database 
that contains the names of all members, officers, and em-
ployees of the Board of Governors who receive an annual 
salary in excess of the annual rate of basic pay for GS– 
15 of the General 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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‘‘(2) any financial disclosures required to be 
made by such individuals.’’. 
(b) OFFICE STAFF
FOR EACH MEMBER
OF
THE 
BOARD OF GOVERNORS.—Subsection (l) of section 11 of 
the Federal Reserve Act (12 U.S.C. 248) is amended by 
adding at the end the following: ‘‘Each member of the 
Board of Governors of the Federal Reserve System may 
employ, at a minimum, 2 individuals, with such individuals 
selected by such member and the salaries of such individ-
uals set by such member. A member may employ addi-
tional individuals as determined necessary by the Board 
of Governors.’’. 
SEC. 707. AMENDMENTS TO POWERS OF THE BOARD OF 
GOVERNORS OF THE FEDERAL RESERVE SYS-
TEM. 
(a) IN GENERAL.—Section 13(3) of the Federal Re-
serve Act (12 U.S.C. 343(3)), as amended by section 221, 
is further amended— 
(1) in subparagraph (A)— 
(A) by inserting ‘‘that pose a threat to the 
financial stability of the United States’’ after 
‘‘unusual and exigent circumstances’’; and 
(B) by inserting ‘‘and by the affirmative 
vote of not less than nine presidents of the Fed-
eral reserve banks’’ after ‘‘five members’’; 
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306 
(2) in subparagraph (B)— 
(A) in clause (i), by inserting at the end 
the following: ‘‘Federal reserve banks may not 
accept equity securities issued by the recipient 
of any loan or other financial assistance under 
this paragraph as collateral. Not later than 6 
months after the date of enactment of this sen-
tence, the Board shall, by rule, establish— 
‘‘(I) a method for determining 
the sufficiency of the collateral re-
quired under this paragraph; 
‘‘(II) acceptable classes of collat-
eral; 
‘‘(III) the amount of any dis-
count of such value that the Federal 
reserve banks will apply for purposes 
of calculating the sufficiency of collat-
eral under this paragraph; and 
‘‘(IV) a method for obtaining 
independent appraisals of the value of 
collateral the Federal reserve banks 
receive.’’; and 
(B) in clause (ii)— 
(i) by striking the second sentence; 
and 
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(ii) by inserting after the first sen-
tence the following: ‘‘A borrower shall not 
be eligible to borrow from any emergency 
lending program or facility unless the 
Board and all federal banking regulators 
with jurisdiction over the borrower certify 
that, at the time the borrower initially bor-
rows under the program or facility, the 
borrower is not insolvent.’’; 
(3) by inserting ‘‘financial institution’’ before 
‘‘participant’’ each place such term appears; 
(4) in subparagraph (D)(i), by inserting ‘‘finan-
cial institution’’ before ‘‘participants’’; and 
(5) by adding at the end the following new sub-
paragraphs: 
‘‘(E) PENALTY RATE.— 
‘‘(i) IN GENERAL.—Not later than 6 
months after the date of enactment of this 
subparagraph, the Board shall, with re-
spect to a recipient of any loan or other fi-
nancial assistance under this paragraph, 
establish by rule a minimum interest rate 
on the principal amount of any loan or 
other financial assistance. 
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‘‘(ii) MINIMUM
INTEREST
RATE
DE-
FINED.—In this subparagraph, the term 
‘minimum interest rate’ shall mean the 
sum of— 
‘‘(I) the average of the secondary 
discount rate of all Federal Reserve 
banks over the most recent 90-day pe-
riod; and 
‘‘(II) the average of the dif-
ference between a distressed corporate 
bond yield index (as defined by rule of 
the Board) and a bond yield index of 
debt issued by the United States (as 
defined by rule of the Board) over the 
most recent 90-day period. 
‘‘(F) FINANCIAL
INSTITUTION
PARTICI-
PANT
DEFINED.—For purposes of this para-
graph, the term ‘financial institution partici-
pant’— 
‘‘(i) means a company that is pre-
dominantly engaged in financial activities 
(as defined in section 102(a) of the Dodd- 
Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5311(a))); and 
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‘‘(ii) does not include an agency de-
scribed in subparagraph (W) of section 
5312(a)(2) of title 31, United States Code, 
or an entity controlled or sponsored by 
such an agency.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
11(r)(2)(A) of such Act is amended— 
(1) in clause (ii)(IV), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in clause (iii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(iv) the available members secure the affirma-
tive vote of not less than nine presidents of the Fed-
eral reserve banks.’’. 
SEC. 708. INTEREST RATES ON BALANCES MAINTAINED AT 
A FEDERAL RESERVE BANK BY DEPOSITORY 
INSTITUTIONS ESTABLISHED BY FEDERAL 
OPEN MARKET COMMITTEE. 
Subparagraph (A) of section 19(b)(12) of the Federal 
Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in-
serting ‘‘established by the Federal Open Market Com-
mittee’’ after ‘‘rate or rates’’. 
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SEC. 709. AUDIT REFORM AND TRANSPARENCY FOR THE 
BOARD OF GOVERNORS OF THE FEDERAL RE-
SERVE SYSTEM. 
(a) IN GENERAL.—Notwithstanding section 714 of 
title 31, United States Code, or any other provision of law, 
the Comptroller General of the United States shall annu-
ally complete an audit of the Board of Governors of the 
Federal Reserve System and the Federal reserve banks 
under subsection (b) of such section 714 within 12 months 
after the date of the enactment of this Act. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
each audit required pursuant to subsection (a) is 
completed, the Comptroller General— 
(A) shall submit to Congress a report on 
such audit; and 
(B) shall make such report available to the 
Speaker of the House, the majority and minor-
ity leaders of the House of Representatives, the 
majority and minority leaders of the Senate, the 
Chairman and Ranking Member of the com-
mittee and each subcommittee of jurisdiction in 
the House of Representatives and the Senate, 
and any other Member of Congress who re-
quests the report. 
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(2) CONTENTS.—The report under paragraph 
(1) shall include a detailed description of the find-
ings and conclusion of the Comptroller General with 
respect to the audit that is the subject of the report, 
together with such recommendations for legislative 
or administrative action as the Comptroller General 
may determine to be appropriate. 
(c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 
(b) of section 714 of title 31, United States Code, is 
amended by striking the second sentence. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN
GENERAL.—Section 714 of title 31, 
United States Code, is amended— 
(A) in subsection (d)(3), by striking ‘‘or 
(f)’’ each place such term appears; 
(B) in subsection (e), by striking ‘‘the 
third undesignated paragraph of section 13’’ 
and inserting ‘‘section 13(3)’’; and 
(C) by striking subsection (f). 
(2) FEDERAL
RESERVE
ACT.—Subsection (s) 
(relating to ‘‘Federal Reserve Transparency and Re-
lease of Information’’) of section 11 of the Federal 
Reserve Act (12 U.S.C. 248) is amended— 
(A) in paragraph (4)(A), by striking ‘‘has 
the same meaning as in section 714(f)(1)(A) of 
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title 31, United States Code’’ and inserting 
‘‘means a program or facility, including any 
special purpose vehicle or other entity estab-
lished by or on behalf of the Board of Gov-
ernors of the Federal Reserve System or a Fed-
eral reserve bank, authorized by the Board of 
Governors under section 13(3), that is not sub-
ject to audit under section 714(e) of title 31, 
United States Code’’; 
(B) in paragraph (6), by striking ‘‘or in 
section 714(f)(3)(C) of title 31, United States 
Code, the information described in paragraph 
(1) and information concerning the transactions 
described in section 714(f) of such title,’’ and 
inserting ‘‘the information described in para-
graph (1)’’; and 
(C) in paragraph (7), by striking ‘‘and sec-
tion 13(3)(C), section 714(f)(3)(C) of title 31, 
United States Code, and’’ and inserting ‘‘, sec-
tion 13(3)(C), and’’. 
SEC. 710. ESTABLISHMENT OF A CENTENNIAL MONETARY 
COMMISSION. 
(a) FINDINGS.—Congress finds the following: 
(1) The Constitution endows Congress with the 
power ‘‘to coin money, regulate the value thereof’’. 
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(2) Following the financial crisis known as the 
Panic of 1907, Congress established the National 
Monetary Commission to provide recommendations 
for the reform of the financial and monetary systems 
of the United States. 
(3) Incorporating several of the recommenda-
tions of the National Monetary Commission, Con-
gress created the Federal Reserve System in 1913. 
As currently organized, the Federal Reserve System 
consists of the Board of Governors in Washington, 
District of Columbia, and the Federal Reserve 
Banks organized into 12 districts around the United 
States. The stockholders of the 12 Federal Reserve 
Banks include national and certain State-chartered 
commercial banks, which operate on a fractional re-
serve basis. 
(4) Originally, Congress gave the Federal Re-
serve System a monetary mandate to provide an 
elastic currency, within the context of a gold stand-
ard, in response to seasonal fluctuations in the de-
mand for currency. 
(5) Congress also gave the Federal Reserve 
System a financial stability mandate to serve as the 
lender of last resort to solvent but illiquid banks 
during a financial crisis. 
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(6) In 1977, Congress changed the monetary 
mandate of the Federal Reserve System to a dual 
mandate for maximum employment and stable 
prices. 
(7) Empirical studies and historical evidence, 
both within the United States and in other coun-
tries, demonstrate that price stability is desirable be-
cause both inflation and deflation damage the econ-
omy. 
(8) The economic challenge of recent years— 
most notably the bursting of the housing bubble, the 
financial crisis of 2008, and the ensuing anemic re-
covery—have occurred at great cost in terms of lost 
jobs and output. 
(9) Policymakers are reexamining the structure 
and functioning of financial institutions and markets 
to determine what, if any, changes need to be made 
to place the financial system on a stronger, more 
sustainable path going forward. 
(10) The Federal Reserve System has taken ex-
traordinary actions in response to the recent eco-
nomic challenges. 
(11) The Federal Open Market Committee has 
engaged in multiple rounds of quantitative easing, 
providing unprecedented liquidity to financial mar-
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kets, while committing to holding short-term interest 
rates low for a seemingly indefinite period, and pur-
suing a policy of credit allocation by purchasing 
Federal agency debt and mortgage-backed securities. 
(12) In the wake of the recent extraordinary ac-
tions of the Federal Reserve System, Congress—con-
sistent with its constitutional responsibilities and as 
it has done periodically throughout the history of the 
United States—has once again renewed its examina-
tion of monetary policy. 
(13) Central in such examination has been a re-
newed look at what is the most proper mandate for 
the Federal Reserve System to conduct monetary 
policy in the 21st century. 
(b) ESTABLISHMENT OF A CENTENNIAL MONETARY 
COMMISSION.—There is established a commission to be 
known as the ‘‘Centennial Monetary Commission’’ (in this 
section referred to as the ‘‘Commission’’). 
(c) STUDY AND REPORT ON MONETARY POLICY.— 
(1) STUDY.—The Commission shall— 
(A) examine how United States monetary 
policy since the creation of the Board of Gov-
ernors of the Federal Reserve System in 1913 
has affected the performance of the United 
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States economy in terms of output, employ-
ment, prices, and financial stability over time; 
(B) evaluate various operational regimes 
under which the Board of Governors of the 
Federal Reserve System and the Federal Open 
Market Committee may conduct monetary pol-
icy in terms achieving the maximum sustainable 
level of output and employment and price sta-
bility over the long term, including— 
(i) discretion in determining monetary 
policy without an operational regime; 
(ii) price level targeting; 
(iii) inflation rate targeting; 
(iv) nominal gross domestic product 
targeting (both level and growth rate); 
(v) the use of monetary policy rules; 
and 
(vi) the gold standard; 
(C) evaluate the use of macro-prudential 
supervision and regulation as a tool of mone-
tary policy in terms of achieving the maximum 
sustainable level of output and employment and 
price stability over the long term; 
(D) evaluate the use of the lender-of-last- 
resort function of the Board of Governors of 
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the Federal Reserve System as a tool of mone-
tary policy in terms of achieving the maximum 
sustainable level of output and employment and 
price stability over the long term; 
(E) recommend a course for United States 
monetary policy going forward, including— 
(i) the legislative mandate; 
(ii) the operational regime; 
(iii) the securities used in open mar-
ket operations; and 
(iv) transparency issues; and 
(F) consider the effects of the GDP output 
and employment targets of the ‘‘dual mandate’’ 
(both from the creation of the dual mandate in 
1977 until the present time and estimates of 
the future effect of the dual mandate ) on— 
(i) United States economic activity; 
(ii) Federal Reserve actions; and 
(iii) Federal debt. 
(2) REPORT.—Not later than December 1, 
2017, the Commission shall submit to Congress and 
make publicly available a report containing a state-
ment of the findings and conclusions of the Commis-
sion in carrying out the study under paragraph (1), 
together with the recommendations the Commission 
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considers appropriate. In making such report, the 
Commission shall specifically report on the consider-
ations required under paragraph (1)(F). 
(d) MEMBERSHIP.— 
(1) NUMBER AND APPOINTMENT.— 
(A) APPOINTED VOTING MEMBERS.—The 
Commission shall contain 12 voting members as 
follows: 
(i) Six members appointed by the 
Speaker of the House of Representatives, 
with four members from the majority party 
and two members from the minority party. 
(ii) Six members appointed by the 
President Pro Tempore of the Senate, with 
four members from the majority party and 
two members from the minority party. 
(B) CHAIRMAN.—The Speaker of the 
House of Representatives and the majority 
leader of the Senate shall jointly designate one 
of the members of the Commission as Chair-
man. 
(C) NON-VOTING
MEMBERS.—The Com-
mission shall contain 2 non-voting members as 
follows: 
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(i) One member appointed by the Sec-
retary of the Treasury. 
(ii) One member who is the president 
of a district Federal reserve bank ap-
pointed by the Chair of the Board of Gov-
ernors of the Federal Reserve System. 
(2) PERIOD OF APPOINTMENT.—Each member 
shall be appointed for the life of the Commission. 
(3) TIMING OF APPOINTMENT.—All members of 
the Commission shall be appointed not later than 30 
days after the date of the enactment of this section. 
(4) VACANCIES.—A vacancy in the Commission 
shall not affect its powers, and shall be filled in the 
manner in which the original appointment was 
made. 
(5) MEETINGS.— 
(A) INITIAL
MEETING.—The Commission 
shall hold its initial meeting and begin the oper-
ations of the Commission as soon as is prac-
ticable. 
(B) FURTHER MEETINGS.—The Commis-
sion shall meet upon the call of the Chair or a 
majority of its members. 
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(6) QUORUM.—Seven voting members of the 
Commission shall constitute a quorum but a lesser 
number may hold hearings. 
(7) MEMBER OF CONGRESS DEFINED.—In this 
subsection, the term ‘‘Member of Congress’’ means 
a Senator or a Representative in, or Delegate or 
Resident Commissioner to, the Congress. 
(e) POWERS.— 
(1) HEARINGS AND SESSIONS.—The Commis-
sion or, on the authority of the Commission, any 
subcommittee or member thereof, may, for the pur-
pose of carrying out this section, hold hearings, sit 
and act at times and places, take testimony, receive 
evidence, or administer oaths as the Commission or 
such subcommittee or member thereof considers ap-
propriate. 
(2) CONTRACT AUTHORITY.—To the extent or 
in the amounts provided in advance in appropriation 
Acts, the Commission may contract with and com-
pensate government and private agencies or persons 
to enable the Commission to discharge its duties 
under this section, without regard to section 3709 of 
the Revised Statutes (41 U.S.C. 5). 
(3) OBTAINING OFFICIAL DATA.— 
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(A) IN GENERAL.—The Commission is au-
thorized to secure directly from any executive 
department, bureau, agency, board, commission, 
office, independent establishment, or instrumen-
tality of the Government, any information, in-
cluding suggestions, estimates, or statistics, for 
the purposes of this section. 
(B) REQUESTING
OFFICIAL
DATA.—The 
head of such department, bureau, agency, 
board, commission, office, independent estab-
lishment, or instrumentality of the government 
shall, to the extent authorized by law, furnish 
such information upon request made by— 
(i) the Chair; 
(ii) the Chair of any subcommittee 
created by a majority of the Commission; 
or 
(iii) any member of the Commission 
designated by a majority of the commission 
to request such information. 
(4) ASSISTANCE FROM FEDERAL AGENCIES.— 
(A) 
GENERAL
SERVICES
ADMINISTRA-
TION.—The Administrator of General Services 
shall provide to the Commission on a reimburs-
able basis administrative support and other 
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services for the performance of the functions of 
the Commission. 
(B) OTHER
DEPARTMENTS
AND
AGEN-
CIES.—In addition to the assistance prescribed 
in subparagraph (A), at the request of the 
Commission, departments and agencies of the 
United States shall provide such services, funds, 
facilities, staff, and other support services as 
may be authorized by law. 
(5) POSTAL
SERVICE.—The Commission may 
use the United States mails in the same manner and 
under the same conditions as other departments and 
agencies of the United States. 
(f) COMMISSION PERSONNEL.— 
(1) APPOINTMENT
AND
COMPENSATION
OF 
STAFF.— 
(A) IN GENERAL.—Subject to rules pre-
scribed by the Commission, the Chair may ap-
point and fix the pay of the executive director 
and other personnel as the Chair considers ap-
propriate. 
(B) APPLICABILITY
OF
CIVIL
SERVICE 
LAWS.—The staff of the Commission may be 
appointed without regard to the provisions of 
title 5, United States Code, governing appoint-
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ments in the competitive service, and may be 
paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of that 
title relating to classification and General 
Schedule pay rates, except that an individual so 
appointed may not receive pay in excess of level 
V of the Executive Schedule. 
(2) CONSULTANTS.—The Commission may pro-
cure temporary and intermittent services under sec-
tion 3109(b) of title 5, United States Code, but at 
rates for individuals not to exceed the daily equiva-
lent of the rate of pay for a person occupying a posi-
tion at level IV of the Executive Schedule. 
(3) STAFF OF FEDERAL AGENCIES.—Upon re-
quest of the Commission, the head of any Federal 
department or agency may detail, on a reimbursable 
basis, any of the personnel of such department or 
agency to the Commission to assist it in carrying out 
its duties under this section. 
(g) TERMINATION OF COMMISSION.— 
(1) IN GENERAL.—The Commission shall termi-
nate on June 1, 2017. 
(2) ADMINISTRATIVE ACTIVITIES BEFORE TER-
MINATION.—The Commission may use the period be-
tween the submission of its report and its termi-
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nation for the purpose of concluding its activities, 
including providing testimony to the committee of 
Congress concerning its report. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,000,000, which shall remain available until the date on 
which the Commission terminates. 
SEC. 711. PUBLIC TRANSCRIPTS OF FOMC MEETINGS. 
Section 12A of the Federal Reserve Act (12 U.S.C. 
263), as amended by this Act, is further amended by add-
ing at the end the following: 
‘‘(e) PUBLIC TRANSCRIPTS
OF MEETINGS.—The 
Committee shall— 
‘‘(1) record all meetings of the Committee; and 
‘‘(2) make the full transcript of such meetings 
available to the public.’’. 
TITLE 
VIII—DEMANDING 
AC-
COUNTABILITY FROM WALL 
STREET 
Subtitle A—SEC Penalties 
Modernization 
SEC. 801. ENHANCEMENT OF CIVIL PENALTIES FOR SECU-
RITIES LAWS VIOLATIONS. 
(a) UPDATED CIVIL MONEY PENALTIES.— 
(1) SECURITIES ACT OF 1933.— 
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(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 8A(g)(2) of the Securi-
ties Act of 1933 (15 U.S.C. 77h–1(g)(2)) is 
amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘$7,500’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$75,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$75,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$375,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
penalty for each such act or omission shall 
not exceed the amount specified in clause 
(ii) if— 
‘‘(I) the act or omission described 
in paragraph (1) involved fraud, de-
ceit, manipulation, or deliberate or 
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reckless disregard of a regulatory re-
quirement; and 
‘‘(II) such act or omission di-
rectly or indirectly resulted in— 
‘‘(aa) substantial losses or 
created a significant risk of sub-
stantial losses to other persons; 
or 
‘‘(bb) substantial pecuniary 
gain to the person who com-
mitted the act or omission. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the act or omission; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
act or omission.’’. 
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(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 20(d)(2) of the Securities Act 
of 1933 (15 U.S.C. 77t(d)(2)) is amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
penalty for each such violation shall not 
exceed the amount specified in clause (ii) 
if— 
‘‘(I) the violation described in 
paragraph (1) involved fraud, deceit, 
manipulation, or deliberate or reckless 
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328 
disregard of a regulatory requirement; 
and 
‘‘(II) such violation directly or in-
directly resulted in substantial losses 
or created a significant risk of sub-
stantial losses to other persons. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to such defendant as a 
result of the violation; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
violation.’’. 
(2) SECURITIES EXCHANGE ACT OF 1934.— 
(A) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 21(d)(3)(B) of the Securities 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 
78u(d)(3)(B)) is amended— 
(i) in clause (i)— 
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329 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in clause (ii)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking clause (iii) and insert-
ing the following: 
‘‘(iii) THIRD TIER.— 
‘‘(I) IN
GENERAL.—Notwithstanding 
clauses (i) and (ii), the amount of penalty 
for each such violation shall not exceed the 
amount specified in subclause (II) if— 
‘‘(aa) the violation described in 
subparagraph (A) involved fraud, de-
ceit, manipulation, or deliberate or 
reckless disregard of a regulatory re-
quirement; and 
‘‘(bb) such violation directly or 
indirectly 
resulted 
in 
substantial 
losses or created a significant risk of 
substantial losses to other persons. 
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330 
‘‘(II) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in sub-
clause (I) is the greatest of— 
‘‘(aa) $300,000 for a natural 
person or $1,450,000 for any other 
person; 
‘‘(bb) 3 times the gross amount 
of pecuniary gain to such defendant 
as a result of the violation; or 
‘‘(cc) the amount of losses in-
curred by victims as a result of the 
violation.’’. 
(B) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 21B(b) of the Securi-
ties Exchange 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 
inserting ‘‘$100,000’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
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331 
(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 
paragraphs (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 
‘‘(ii) such act or omission directly or 
indirectly resulted in substantial losses or 
created a significant risk of substantial 
losses to other persons or resulted in sub-
stantial pecuniary gain to the person who 
committed the act or omission. 
‘‘(B) MAXIMUM AMOUNT OF PENALTY.— 
The amount referred to in subparagraph (A) is 
the greatest of— 
‘‘(i) $300,000 for a natural person or 
$1,450,000 for any other person; 
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332 
‘‘(ii) 3 times the gross amount of pe-
cuniary gain to the person who committed 
the act or omission; or 
‘‘(iii) the amount of losses incurred by 
victims as a result of the act or omission.’’. 
(3) INVESTMENT COMPANY ACT OF 1940.— 
(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 9(d)(2) of the Invest-
ment Company Act of 1940 (15 U.S.C. 80a– 
9(d)(2)) is amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
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sradovich on DSK3GMQ082PROD with BILLS
333 
penalty for each such act or omission shall 
not exceed the amount specified in clause 
(ii) if— 
‘‘(I) the act or omission described 
in paragraph (1) involved fraud, de-
ceit, manipulation, or deliberate or 
reckless disregard of a regulatory re-
quirement; and 
‘‘(II) such act or omission di-
rectly or indirectly resulted in sub-
stantial losses or created a significant 
risk of substantial losses to other per-
sons or resulted in substantial pecu-
niary gain to the person who com-
mitted the act or omission. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the act or omission; or 
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sradovich on DSK3GMQ082PROD with BILLS
334 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
act or omission.’’. 
(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 42(e)(2) of the Investment 
Company Act of 1940 (15 U.S.C. 80a– 
41(e)(2)) is amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
penalty for each such violation shall not 
exceed the amount specified in clause (ii) 
if— 
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sradovich on DSK3GMQ082PROD with BILLS
335 
‘‘(I) the violation described in 
paragraph (1) involved fraud, deceit, 
manipulation, or deliberate or reckless 
disregard of a regulatory requirement; 
and 
‘‘(II) such violation directly or in-
directly resulted in substantial losses 
or created a significant risk of sub-
stantial losses to other persons. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to such defendant as a 
result of the violation; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
violation.’’. 
(4) INVESTMENT ADVISERS ACT OF 1940.— 
(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 203(i)(2) of the Invest-
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sradovich on DSK3GMQ082PROD with BILLS
336 
ment Advisers Act of 1940 (15 U.S.C. 80b– 
3(i)(2)) is amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
penalty for each such act or omission shall 
not exceed the amount specified in clause 
(ii) if— 
‘‘(I) the act or omission described 
in paragraph (1) involved fraud, de-
ceit, manipulation, or deliberate or 
reckless disregard of a regulatory re-
quirement; and 
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337 
‘‘(II) such act or omission di-
rectly or indirectly resulted in sub-
stantial losses or created a significant 
risk of substantial losses to other per-
sons or resulted in substantial pecu-
niary gain to the person who com-
mitted the act or omission. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the act or omission; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
act or omission.’’. 
(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 209(e)(2) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) 
is amended— 
(i) in subparagraph (A)— 
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sradovich on DSK3GMQ082PROD with BILLS
338 
(I) by striking ‘‘$5,000’’ and in-
serting ‘‘$10,000’’; and 
(II) by striking ‘‘$50,000’’ and 
inserting ‘‘$100,000’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘$50,000’’ and in-
serting ‘‘$100,000’’; and 
(II) by striking ‘‘$250,000’’ and 
inserting ‘‘$500,000’’; and 
(iii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), the amount of 
penalty for each such violation shall not 
exceed the amount specified in clause (ii) 
if— 
‘‘(I) the violation described in 
paragraph (1) involved fraud, deceit, 
manipulation, or deliberate or reckless 
disregard of a regulatory requirement; 
and 
‘‘(II) such violation directly or in-
directly resulted in substantial losses 
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sradovich on DSK3GMQ082PROD with BILLS
339 
or created a significant risk of sub-
stantial losses to other persons. 
‘‘(ii) MAXIMUM
AMOUNT
OF
PEN-
ALTY.—The amount referred to in clause 
(i) is the greatest of— 
‘‘(I) $300,000 for a natural per-
son or $1,450,000 for any other per-
son; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to such defendant as a 
result of the violation; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
violation.’’. 
(b) PENALTIES FOR RECIDIVISTS.— 
(1) SECURITIES ACT OF 1933.— 
(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 8A(g)(2) of the Securi-
ties Act of 1933 (15 U.S.C. 77h–1(g)(2)) is 
amended by adding at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (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- 
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340 
year period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
person.’’. 
(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—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 
subparagraphs (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 
any Commission action alleging fraud by that 
defendant.’’. 
(2) SECURITIES EXCHANGE ACT OF 1934.— 
(A) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 21(d)(3)(B) of the Securities 
VerDate Sep 11 2014 
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sradovich on DSK3GMQ082PROD with BILLS
341 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 
78u(d)(3)(B)) is amended by adding at the end 
the following: 
‘‘(iv) 
FOURTH
TIER.—Notwith-
standing clauses (i), (ii), and (iii), the 
maximum amount of penalty for each such 
violation shall be 3 times the otherwise ap-
plicable amount in such clauses if, within 
the 5-year period preceding such violation, 
the defendant was criminally convicted for 
securities fraud or became subject to a 
judgment or order imposing monetary, eq-
uitable, or administrative relief in any 
Commission action alleging fraud by that 
defendant.’’. 
(B) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 21B(b) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78u– 
2(b)) is amended by adding at the end the fol-
lowing: 
‘‘(4) FOURTH
TIER.—Notwithstanding para-
graphs (1), (2), and (3), the maximum amount of 
penalty for each such act or omission shall be 3 
times the otherwise applicable amount in such para-
graphs if, within the 5-year period preceding such 
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342 
act or omission, the person who committed the act 
or omission was criminally convicted for securities 
fraud or became subject to a judgment or order im-
posing monetary, equitable, or administrative relief 
in any Commission action alleging fraud by that per-
son.’’. 
(3) INVESTMENT COMPANY ACT OF 1940.— 
(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 9(d)(2) of the Invest-
ment Company Act of 1940 (15 U.S.C. 80a– 
9(d)(2)) is amended by adding at the end the 
following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (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 period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
person.’’. 
VerDate Sep 11 2014 
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343 
(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 42(e)(2) of the Investment 
Company Act of 1940 (15 U.S.C. 80a– 
41(e)(2)) is amended by adding at the end the 
following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (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 
any Commission action alleging fraud by that 
defendant.’’. 
(4) INVESTMENT ADVISERS ACT OF 1940.— 
(A) MONEY
PENALTIES
IN
ADMINISTRA-
TIVE ACTIONS.—Section 203(i)(2) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b– 
3(i)(2)) is amended by adding at the end the 
following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such act or omission 
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344 
shall be 3 times the otherwise applicable 
amount in such subparagraphs if, within the 5- 
year period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
person.’’. 
(B) MONEY
PENALTIES
IN
CIVIL
AC-
TIONS.—Section 209(e)(2) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) 
is amended by adding at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (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 
any Commission action alleging fraud by that 
defendant.’’. 
(c) VIOLATIONS OF INJUNCTIONS AND BARS.— 
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345 
(1) SECURITIES ACT OF 1933.—Section 20(d) of 
the Securities Act of 1933 (15 U.S.C. 77t(d)) is 
amended— 
(A) in paragraph (1), by inserting after 
‘‘the rules or regulations thereunder,’’ the fol-
lowing: ‘‘a Federal court injunction or a bar ob-
tained or entered by the Commission under this 
title,’’; and 
(B) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(A) IN GENERAL.—Each separate viola-
tion of an injunction or order described in sub-
paragraph (B) shall be a separate offense, ex-
cept that in the case of a violation through a 
continuing failure to comply with such injunc-
tion or order, each day of the failure to comply 
with the injunction or order shall be deemed a 
separate offense. 
‘‘(B) INJUNCTIONS
AND
ORDERS.—Sub-
paragraph (A) shall apply with respect to any 
action to enforce— 
‘‘(i) a Federal court injunction ob-
tained pursuant to this title; 
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346 
‘‘(ii) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
activities or functions of, or prohibits the 
activities of, a person; or 
‘‘(iii) a cease-and-desist order entered 
by the Commission pursuant to section 
8A.’’. 
(2) SECURITIES EXCHANGE ACT OF 1934.—Sec-
tion 21(d)(3) of the Securities Exchange Act of 
1934 (15 U.S.C. 78u(d)(3)) is amended— 
(A) in subparagraph (A), by inserting after 
‘‘the rules or regulations thereunder,’’ the fol-
lowing: ‘‘a Federal court injunction or a bar ob-
tained or entered by the Commission under this 
title,’’; and 
(B) by striking subparagraph (D) and in-
serting the following: 
‘‘(D) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(i) IN GENERAL.—Each separate violation 
of an injunction or order described in clause (ii) 
shall be a separate offense, except that in the 
case of a violation through a continuing failure 
to comply with such injunction or order, each 
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347 
day of the failure to comply with the injunction 
or order shall be deemed a separate offense. 
‘‘(ii) INJUNCTIONS AND ORDERS.—Clause 
(i) shall apply with respect to an action to en-
force— 
‘‘(I) a Federal court injunction ob-
tained pursuant to this title; 
‘‘(II) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
activities or functions of, or prohibits the 
activities of, a person; or 
‘‘(III) a cease-and-desist order entered 
by the Commission pursuant to section 
21C.’’. 
(3) INVESTMENT COMPANY ACT OF 1940.—Sec-
tion 42(e) of the Investment Company Act of 1940 
(15 U.S.C. 80a–41(e)) is amended— 
(A) in paragraph (1), by inserting after 
‘‘the rules or regulations thereunder,’’ the fol-
lowing: ‘‘a Federal court injunction or a bar ob-
tained or entered by the Commission under this 
title,’’; and 
(B) by striking paragraph (4) and insert-
ing the following: 
VerDate Sep 11 2014 
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348 
‘‘(4) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(A) IN GENERAL.—Each separate viola-
tion of an injunction or order described in sub-
paragraph (B) shall be a separate offense, ex-
cept that in the case of a violation through a 
continuing failure to comply with such injunc-
tion or order, each day of the failure to comply 
with the injunction or order shall be deemed a 
separate offense. 
‘‘(B) INJUNCTIONS
AND
ORDERS.—Sub-
paragraph (A) shall apply with respect to any 
action to enforce— 
‘‘(i) a Federal court injunction ob-
tained pursuant to this title; 
‘‘(ii) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
activities or functions of, or prohibits the 
activities of, a person; or 
‘‘(iii) a cease-and-desist order entered 
by the Commission pursuant to section 
9(f).’’. 
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(4) INVESTMENT ADVISERS ACT OF 1940.—Sec-
tion 209(e) of the Investment Advisers Act of 1940 
(15 U.S.C. 80b–9(e)) is amended— 
(A) in paragraph (1), by inserting after 
‘‘the rules or regulations thereunder,’’ the fol-
lowing: ‘‘a Federal court injunction or a bar ob-
tained or entered by the Commission under this 
title,’’; and 
(B) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(A) IN GENERAL.—Each separate viola-
tion of an injunction or order described in sub-
paragraph (B) shall be a separate offense, ex-
cept that in the case of a violation through a 
continuing failure to comply with such injunc-
tion or order, each day of the failure to comply 
with the injunction or order shall be deemed a 
separate offense. 
‘‘(B) INJUNCTIONS
AND
ORDERS.—Sub-
paragraph (A) shall apply with respect to any 
action to enforce— 
‘‘(i) a Federal court injunction ob-
tained pursuant to this title; 
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‘‘(ii) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
activities or functions of, or prohibits the 
activities of, a person; or 
‘‘(iii) a cease-and-desist order entered 
by the Commission pursuant to section 
203(k).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to conduct that occurs 
after the date of the enactment of this Act. 
SEC. 802. UPDATED CIVIL MONEY PENALTIES OF PUBLIC 
COMPANY ACCOUNTING OVERSIGHT BOARD. 
(a) IN GENERAL.—Section 105(c)(4)(D) of the Sar-
banes-Oxley Act of 2002 (15 U.S.C. 7215(c)(4)(D)) is 
amended— 
(1) in clause (i)— 
(A) by striking ‘‘$100,000’’ and inserting 
‘‘$200,000’’; and 
(B) by striking ‘‘$2,000,000’’ and insert-
ing ‘‘$4,000,000’’; and 
(2) in clause (ii)— 
(A) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’; and 
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351 
(B) by striking ‘‘$15,000,000’’ and insert-
ing ‘‘$20,000,000’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to conduct that occurs 
after the date of the enactment of this Act. 
SEC. 803. UPDATED CIVIL MONEY PENALTY FOR CONTROL-
LING PERSONS IN CONNECTION WITH IN-
SIDER TRADING. 
(a) IN GENERAL.—Section 21A(a)(3) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78u–1(a)(3)) is 
amended 
by 
striking 
‘‘$1,000,000’’ 
and 
inserting 
‘‘$2,000,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to conduct that occurs 
after the date of the enactment of this Act. 
SEC. 804. UPDATE OF CERTAIN OTHER PENALTIES. 
(a) IN GENERAL.—Section 32 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78ff) is amended— 
(1) in subsection (a), by striking ‘‘$5,000,000’’ 
and inserting ‘‘$7,000,000’’; and 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘$2,000,000’’ and inserting ‘‘$4,000,000’’; 
and 
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352 
(ii) in subparagraph (B), by striking 
‘‘$10,000’’ and inserting ‘‘$50,000’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘$100,000’’ and inserting ‘‘$250,000’’; 
and 
(ii) in subparagraph (B), by striking 
‘‘$10,000’’ and inserting ‘‘$50,000’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to conduct that occurs 
after the date of the enactment of this Act. 
SEC. 805. MONETARY SANCTIONS TO BE USED FOR THE RE-
LIEF OF VICTIMS. 
(a) IN GENERAL.—Section 308(a) of the Sarbanes- 
Oxley Act of 2002 (15 U.S.C. 7246(a)) is amended to read 
as follows: 
‘‘(a) MONETARY SANCTIONS TO BE USED FOR THE 
RELIEF OF VICTIMS.—If, in any judicial or administrative 
action brought by the Commission under the securities 
laws, the Commission obtains a monetary sanction (as de-
fined in section 21F(a) of the Securities Exchange Act of 
1934) against any person for a violation of such laws, or 
such person agrees, in settlement of any such action, to 
such monetary sanction, the amount of such monetary 
sanction shall, on the motion or at the direction of the 
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353 
Commission, be added to and become part of a 
disgorgement fund or other fund established for the ben-
efit of the victims of such violation.’’. 
(b) 
MONETARY
SANCTION
DEFINED.—Section 
21F(a)(4)(A) of the Securities Exchange Act of 1934 (15 
U.S.C. 78u–6(a)(4)(A)) is amended by striking ‘‘ordered’’ 
and inserting ‘‘required’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section apply with respect to any monetary sanction 
ordered or required to be paid before or after the date 
of enactment of this Act. 
SEC. 806. GAO REPORT ON USE OF CIVIL MONEY PENALTY 
AUTHORITY BY COMMISSION. 
(a) IN GENERAL.—Not later than 2 years after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the Committee on 
Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate a report on the use by the Commission of 
the authority to impose or obtain civil money penalties for 
violations of the securities laws during the period begin-
ning on June 1, 2010, and ending on the date of the en-
actment of this Act. 
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354 
(b) MATTERS REQUIRED TO BE INCLUDED.—The 
matters covered by the report required by subsection (a) 
shall include the following: 
(1) The types of violations for which civil 
money penalties were imposed or obtained. 
(2) The types of persons on whom civil money 
penalties were imposed or from whom such penalties 
were obtained. 
(3) The number and dollar amount of civil 
money penalties imposed or obtained, disaggregated 
as follows: 
(A) Penalties imposed in administrative ac-
tions and penalties obtained in judicial actions. 
(B) Penalties imposed on or obtained from 
issuers (individual and aggregate filers) and 
penalties imposed on or obtained from other 
persons. 
(C) Penalties permitted to be retained for 
use by the Commission and penalties deposited 
in the general fund of the Treasury of the 
United States. 
(4) For penalties imposed on or obtained from 
issuers: 
(A) Whether the violations involved re-
sulted in direct economic benefit to the issuers. 
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355 
(B) The impact of the penalties on the 
shareholders of the issuers. 
(c) DEFINITIONS.—In this section, the terms ‘‘Com-
mission’’, ‘‘issuer’’, and ‘‘securities laws’’ have the mean-
ings given such terms in section 3(a) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c(a)). 
Subtitle B—FIRREA Penalties 
Modernization 
SEC. 811. INCREASE OF CIVIL AND CRIMINAL PENALTIES 
ORIGINALLY ESTABLISHED IN THE FINAN-
CIAL 
INSTITUTIONS 
REFORM, 
RECOVERY, 
AND ENFORCEMENT ACT OF 1989. 
(a) AMENDMENTS TO FIRREA.—Section 951(b) of 
the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1833a(b)) is amended— 
(1) in paragraph (1), by striking ‘‘$1,000,000’’ 
and inserting ‘‘$1,500,000’’; and 
(2) in paragraph (2), by striking ‘‘$1,000,000 
per day or $5,000,000’’ and inserting ‘‘$1,500,000 
per day or $7,500,000’’. 
(b) AMENDMENTS TO THE HOME OWNERS’ LOAN 
ACT.—The Home Owners’ Loan Act (12 U.S.C. 1461 et 
seq.) is amended— 
(1) in section 5(v)(6), by striking ‘‘$1,000,000’’ 
and inserting ‘‘$1,500,000’’; and 
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356 
(2) in section 10— 
(A) in subsection (r)(3), by striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(B) in subsection (i)(1)(B), by striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(c) AMENDMENTS TO THE FEDERAL DEPOSIT IN-
SURANCE ACT.—The Federal Deposit Insurance Act (12 
U.S.C. 1811 et seq.) is amended— 
(1) in section 7— 
(A) in subsection (a)(1), by striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(B) in subsection (j)(16)(D), by striking 
‘‘$1,000,000’’ each place such term appears 
and inserting ‘‘$1,500,000’’; 
(2) in section 8— 
(A) in subsection (i)(2)(D), by striking 
‘‘$1,000,000’’ each place such term appears 
and inserting ‘‘$1,500,000’’; and 
(B) 
in 
subsection 
(j), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(3) in section 19(b), by striking ‘‘$1,000,000’’ 
and inserting ‘‘$1,500,000’’. 
(d) AMENDMENTS TO THE FEDERAL CREDIT UNION 
ACT.—The Federal Credit Union Act (12 U.S.C. 1751 et 
seq.) is amended— 
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357 
(1) 
in 
section 
202(a)(3), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(2) 
in 
section 
205(d)(3), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(3) in section 206— 
(A) in subsection (k)(2)(D), by striking 
‘‘$1,000,000’’ each place such term appears 
and inserting ‘‘$1,500,000’’; and 
(B) 
in 
subsection 
(l), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(e) AMENDMENTS TO THE REVISED STATUTES OF 
THE UNITED STATES.—Title LXII of the Revised Stat-
utes of the United States is amended— 
(1) 
in 
section 
5213(c), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(2) 
in 
section 
5239(b)(4), 
by 
striking 
‘‘$1,000,000’’ each place such term appears and in-
serting ‘‘$1,500,000’’. 
(f) AMENDMENTS
TO
THE
FEDERAL
RESERVE 
ACT.—The Federal Reserve Act (12 U.S.C. 221 et seq.) 
is amended— 
(1) in the 6th undesignated paragraph of sec-
tion 9, by striking ‘‘$1,000,000’’ and inserting 
‘‘$1,500,000’’; 
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358 
(2) 
in 
section 
19(l)(4), 
by 
striking 
‘‘$1,000,000’’ each place such term appears and in-
serting ‘‘$1,500,000’’; and 
(3) in section 29(d), by striking ‘‘$1,000,000’’ 
each place such term appears and inserting 
‘‘$1,500,000’’. 
(g) AMENDMENTS TO THE BANK HOLDING COMPANY 
ACT AMENDMENTS OF 1970.—Section 106(b)(2)(F)(iv) of 
the Bank Holding Company Act Amendments of 1970 (12 
U.S.C. 1978(b)(2)(F)(iv)) is amended by striking 
‘‘$1,000,000’’ each place such term appears and inserting 
‘‘$1,500,000’’. 
(h) AMENDMENTS TO THE BANK HOLDING COMPANY 
ACT OF 1956.—Section 8 of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1847) is amended— 
(1) 
in 
subsection 
(a)(2), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(2) 
in 
subsection 
(d)(3), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(i) AMENDMENTS TO TITLE 18, UNITED STATES 
CODE.—Title 18, United States Code, is amended— 
(1) in section 215(a) of chapter 11, by striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(2) in chapter 31— 
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359 
(A) 
in 
section 
656, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(B) 
in 
section 
657, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(3) in chapter 47— 
(A) 
in 
section 
1005, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(B) 
in 
section 
1006, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(C) 
in 
section 
1007, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(D) 
in 
section 
1014, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(4) in chapter 63— 
(A) 
in 
section 
1341, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; 
(B) 
in 
section 
1343, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 
(C) 
in 
section 
1344, 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
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360 
TITLE 
IX—REPEAL 
OF 
THE 
VOLCKER RULE AND OTHER 
PROVISIONS 
SEC. 901. REPEALS. 
(a) IN GENERAL.—The following sections of title VI 
of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act are repealed, and the provisions of law 
amended or repealed by such sections are restored or re-
vived as if such sections had not been enacted: 
(1) Section 603. 
(2) Section 618. 
(3) Section 619. 
(4) Section 620. 
(5) Section 621. 
(b) CLERICAL AMENDMENT.—The table of contents 
under section 1(b) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended by striking the 
items relating to sections 603, 618, 619, 620, and 621. 
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361 
TITLE X—UNLEASHING OPPOR-
TUNITIES FOR SMALL BUSI-
NESSES, 
INNOVATORS, 
AND 
JOB CREATORS BY FACILI-
TATING CAPITAL FORMATION 
Subtitle A—Small Business Merg-
ers, 
Acquisitions, 
Sales, 
and 
Brokerage Simplification 
SEC. 1001. REGISTRATION EXEMPTION FOR MERGER AND 
ACQUISITION BROKERS. 
Section 15(b) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o(b)) is amended by adding at the end the 
following: 
‘‘(13) REGISTRATION EXEMPTION FOR MERGER 
AND ACQUISITION BROKERS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an M&A broker shall be ex-
empt from registration under this section. 
‘‘(B) EXCLUDED
ACTIVITIES.—An M&A 
broker is not exempt from registration under 
this paragraph if such broker does any of the 
following: 
‘‘(i) Directly or indirectly, in connec-
tion with the transfer of ownership of an 
eligible privately held company, receives, 
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362 
holds, transmits, or has custody of the 
funds or securities to be exchanged by the 
parties to the transaction. 
‘‘(ii) Engages on behalf of an issuer in 
a public offering of any class of securities 
that is registered, or is required to be reg-
istered, with the Commission under section 
12 or with respect to which the issuer files, 
or is required to file, periodic information, 
documents, and reports under subsection 
(d). 
‘‘(iii) Engages on behalf of any party 
in a transaction involving a public shell 
company. 
‘‘(C) 
DISQUALIFICATIONS.—An 
M&A 
broker is not exempt from registration under 
this paragraph if such broker is subject to— 
‘‘(i) suspension or revocation of reg-
istration under paragraph (4); 
‘‘(ii) a statutory disqualification de-
scribed in section 3(a)(39); 
‘‘(iii) a disqualification under the 
rules adopted by the Commission under 
section 926 of the Investor Protection and 
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363 
Securities Reform Act of 2010 (15 U.S.C. 
77d note); or 
‘‘(iv) a final order described in para-
graph (4)(H). 
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to limit 
any other authority of the Commission to ex-
empt any person, or any class of persons, from 
any provision of this title, or from any provision 
of any rule or regulation thereunder. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(i) CONTROL.—The term ‘control’ 
means the power, directly or indirectly, to 
direct the management or policies of a 
company, whether through ownership of 
securities, by contract, or otherwise. There 
is a presumption of control for any person 
who— 
‘‘(I) is a director, general part-
ner, member or manager of a limited 
liability company, or officer exercising 
executive responsibility (or has similar 
status or functions); 
‘‘(II) has the right to vote 20 
percent or more of a class of voting 
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364 
securities or the power to sell or direct 
the sale of 20 percent or more of a 
class of voting securities; or 
‘‘(III) in the case of a partner-
ship or limited liability company, has 
the right to receive upon dissolution, 
or has contributed, 20 percent or 
more of the capital. 
‘‘(ii) 
ELIGIBLE
PRIVATELY
HELD 
COMPANY.—The term ‘eligible privately 
held company’ means a privately held com-
pany that meets both of the following con-
ditions: 
‘‘(I) The company does not have 
any class of securities registered, or 
required to be registered, with the 
Commission under section 12 or with 
respect to which the company files, or 
is required to file, periodic informa-
tion, documents, and reports under 
subsection (d). 
‘‘(II) In the fiscal year ending 
immediately before the fiscal year in 
which the services of the M&A broker 
are initially engaged with respect to 
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365 
the securities transaction, the com-
pany meets either or both of the fol-
lowing conditions (determined in ac-
cordance with the historical financial 
accounting records of the company): 
‘‘(aa) The earnings of the 
company before interest, taxes, 
depreciation, and amortization 
are less than $25,000,000. 
‘‘(bb) The gross revenues of 
the 
company 
are 
less 
than 
$250,000,000. 
‘‘(iii) M&A BROKER.—The term ‘M&A 
broker’ means a broker, and any person 
associated with a broker, engaged in the 
business of effecting securities transactions 
solely in connection with the transfer of 
ownership of an eligible privately held com-
pany, regardless of whether the broker acts 
on behalf of a seller or buyer, through the 
purchase, sale, exchange, issuance, repur-
chase, or redemption of, or a business com-
bination involving, securities or assets of 
the eligible privately held company, if the 
broker reasonably believes that— 
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366 
‘‘(I) upon consummation of the 
transaction, any person acquiring se-
curities or assets of the eligible pri-
vately held company, acting alone or 
in concert, will control and, directly or 
indirectly, will be active in the man-
agement of the eligible privately held 
company or the business conducted 
with the assets of the eligible privately 
held company; and 
‘‘(II) if any person is offered se-
curities in exchange for securities or 
assets of the eligible privately held 
company, such person will, prior to 
becoming legally bound to consum-
mate the transaction, receive or have 
reasonable access to the most recent 
fiscal year-end financial statements of 
the issuer of the securities as custom-
arily prepared by the management of 
the issuer in the normal course of op-
erations and, if the financial state-
ments of the issuer are audited, re-
viewed, or compiled, any related state-
ment by the independent accountant, 
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a balance sheet dated not more than 
120 days before the date of the offer, 
and information pertaining to the 
management, business, results of op-
erations for the period covered by the 
foregoing financial statements, and 
material loss contingencies of the 
issuer. 
‘‘(iv) PUBLIC SHELL COMPANY.—The 
term ‘public shell company’ is a company 
that at the time of a transaction with an 
eligible privately held company— 
‘‘(I) has any class of securities 
registered, or required to be reg-
istered, with the Commission under 
section 12 or that is required to file 
reports pursuant to subsection (d); 
‘‘(II) has no or nominal oper-
ations; and 
‘‘(III) has— 
‘‘(aa) no or nominal assets; 
‘‘(bb) assets consisting solely 
of cash and cash equivalents; or 
‘‘(cc) assets consisting of 
any amount of cash and cash 
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equivalents and nominal other as-
sets. 
‘‘(F) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—On the date that 
is 5 years after the date of the enactment 
of this paragraph, and every 5 years there-
after, each dollar amount in subparagraph 
(E)(ii)(II) shall be adjusted by— 
‘‘(I) dividing the annual value of 
the Employment Cost Index For 
Wages and Salaries, Private Industry 
Workers (or any successor index), as 
published by the Bureau of Labor 
Statistics, for the calendar year pre-
ceding the calendar year in which the 
adjustment is being made by the an-
nual value of such index (or suc-
cessor) for the calendar year ending 
December 31, 2012; and 
‘‘(II) multiplying such dollar 
amount by the quotient obtained 
under subclause (I). 
‘‘(ii) 
ROUNDING.—Each 
dollar 
amount determined under clause (i) shall 
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be rounded to the nearest multiple of 
$100,000.’’. 
SEC. 1002. EFFECTIVE DATE. 
This subtitle and any amendment made by this sub-
title shall take effect on the date that is 90 days after 
the date of the enactment of this Act. 
Subtitle B—Encouraging Employee 
Ownership 
SEC. 1006. INCREASED THRESHOLD FOR DISCLOSURES RE-
LATING TO COMPENSATORY BENEFIT PLANS. 
Not later than 60 days after the date of the enact-
ment of this Act, the Securities and Exchange Commission 
shall revise section 230.701(e) of title 17, Code of Federal 
Regulations, so as to increase from $5,000,000 to 
$10,000,000 the aggregate sales price or amount of secu-
rities sold during any consecutive 12-month period in ex-
cess of which the issuer is required under such section to 
deliver an additional disclosure to investors. The Commis-
sion shall index for inflation such aggregate sales price 
or amount every 5 years to reflect the change in the Con-
sumer Price Index for All Urban Consumers published by 
the Bureau of Labor Statistics, rounding to the nearest 
$1,000,000. 
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Subtitle C—Small Company 
Disclosure Simplification 
SEC. 1011. EXEMPTION FROM XBRL REQUIREMENTS FOR 
EMERGING GROWTH COMPANIES AND OTHER 
SMALLER COMPANIES. 
(a) EXEMPTION FOR EMERGING GROWTH COMPA-
NIES.—Emerging growth companies are exempted from 
the requirements to use Extensible Business Reporting 
Language (XBRL) for financial statements and other 
periodic reporting required to be filed with the Commis-
sion under the securities laws. Such companies may elect 
to use XBRL for such reporting. 
(b) EXEMPTION
FOR
OTHER
SMALLER
COMPA-
NIES.—Issuers with total annual gross revenues of less 
than $250,000,000 are exempt from the requirements to 
use XBRL for financial statements and other periodic re-
porting required to be filed with the Commission under 
the securities laws. Such issuers may elect to use XBRL 
for such reporting. An exemption under this subsection 
shall continue in effect until— 
(1) the date that is five years after the date of 
enactment of this Act; or 
(2) the date that is two years after a deter-
mination by the Commission, by order after con-
ducting the analysis required by section 3, that the 
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benefits of such requirements to such issuers out-
weigh the costs, but no earlier than three years after 
enactment of this Act. 
(c) MODIFICATIONS
TO REGULATIONS.—Not later 
than 60 days after the date of enactment of this Act, the 
Commission shall revise its regulations under parts 229, 
230, 232, 239, 240, and 249 of title 17, Code of Federal 
Regulations, to reflect the exemptions set forth in sub-
sections (a) and (b). 
SEC. 1012. ANALYSIS BY THE SEC. 
The Commission shall conduct an analysis of the 
costs and benefits to issuers described in section 1011(b) 
of the requirements to use XBRL for financial statements 
and other periodic reporting required to be filed with the 
Commission under the securities laws. Such analysis shall 
include an assessment of— 
(1) how such costs and benefits may differ from 
the costs and benefits identified by the Commission 
in the order relating to interactive data to improve 
financial reporting (dated January 30, 2009; 74 
Fed. Reg. 6776) because of the size of such issuers; 
(2) the effects on efficiency, competition, capital 
formation, and financing and on analyst coverage of 
such issuers (including any such effects resulting 
from use of XBRL by investors); 
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(3) the costs to such issuers of— 
(A) submitting data to the Commission in 
XBRL; 
(B) posting data on the website of the 
issuer in XBRL; 
(C) software necessary to prepare, submit, 
or post data in XBRL; and 
(D) any additional consulting services or 
filing agent services; 
(4) the benefits to the Commission in terms of 
improved ability to monitor securities markets, as-
sess the potential outcomes of regulatory alter-
natives, and enhance investor participation in cor-
porate governance and promote capital formation; 
and 
(5) the effectiveness of standards in the United 
States for interactive filing data relative to the 
standards of international counterparts. 
SEC. 1013. REPORT TO CONGRESS. 
Not later than one year after the date of enactment 
of this Act, the Commission shall provide the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate a report regarding— 
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(1) the progress in implementing XBRL report-
ing within the Commission; 
(2) the use of XBRL data by Commission offi-
cials; 
(3) the use of XBRL data by investors; 
(4) the results of the analysis required by sec-
tion 1012; and 
(5) any additional information the Commission 
considers relevant for increasing transparency, de-
creasing costs, and increasing efficiency of regu-
latory filings with the Commission. 
SEC. 1014. DEFINITIONS. 
As used in this subtitle, the terms ‘‘Commission’’, 
‘‘emerging growth company’’, ‘‘issuer’’, and ‘‘securities 
laws’’ have the meanings given such terms in section 3 
of the Securities Exchange Act of 1934 (15 U.S.C. 78c). 
Subtitle 
D—Securities 
and 
Ex-
change 
Commission 
Overpay-
ment Credit 
SEC. 1016. REFUNDING OR CREDITING OVERPAYMENT OF 
SECTION 31 FEES. 
(a) IN GENERAL.—Section 31 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78ee) is amended by add-
ing at the end the following: 
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‘‘(n) OVERPAYMENT.—If a national securities ex-
change or national securities association pays to the Com-
mission an amount in excess of fees and assessments due 
under this section and informs the Commission of such 
amount paid in excess within 10 years of the date of the 
payment, the Commission shall offset future fees and as-
sessments due by such exchange or association in an 
amount equal to such excess amount.’’. 
(b) APPLICABILITY.—The amendment made by this 
section shall apply to any fees and assessments paid be-
fore, on, or after the date of enactment of this section. 
Subtitle E—Fair Access to 
Investment Research 
SEC. 1021. SAFE HARBOR FOR INVESTMENT FUND RE-
SEARCH. 
(a) EXPANSION OF THE SAFE HARBOR.—Not later 
than the end of the 45-day period beginning on the date 
of enactment of this Act, the Securities and Exchange 
Commission shall propose, and not later than the end of 
the 180-day period beginning on such date, the Commis-
sion shall adopt, upon such terms, conditions, or require-
ments as the Commission may determine necessary or ap-
propriate in the public interest, for the protection of inves-
tors, and for the promotion of capital formation, revisions 
to section 230.139 of title 17, Code of Federal Regula-
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tions, to provide that a covered investment fund research 
report that is published or distributed by a broker or deal-
er— 
(1) shall be deemed, for purposes of sections 
2(a)(10) and 5(c) of the Securities Act of 1933 (15 
U.S.C. 77b(a)(10), 77e(c)), not to constitute an 
offer for sale or an offer to sell a security that is the 
subject of an offering pursuant to a registration 
statement that is effective, even if the broker or 
dealer is participating or will participate in the reg-
istered offering of the covered investment fund’s se-
curities; and 
(2) shall be deemed to satisfy the conditions of 
subsection (a)(1) or (a)(2) of section 230.139 of title 
17, Code of Federal Regulations, or any successor 
provisions, for purposes of the Commission’s rules 
and regulations under the Federal securities laws 
and the rules of any self-regulatory organization. 
(b) IMPLEMENTATION OF SAFE HARBOR.—In imple-
menting the safe harbor pursuant to subsection (a), the 
Commission shall— 
(1) not, in the case of a covered investment 
fund with a class of securities in substantially con-
tinuous distribution, condition the safe harbor on 
whether the broker’s or dealer’s publication or dis-
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tribution of a covered investment fund research re-
port constitutes such broker’s or dealer’s initiation 
or reinitiation of research coverage on such covered 
investment fund or its securities; 
(2) not— 
(A) require the covered investment fund to 
have been registered as an investment company 
under the Investment Company Act of 1940 
(15 U.S.C. 80a–1 et seq.) or subject to the re-
porting requirements of section 13 or 15(d) of 
the Securities Exchange Act of 1934 (15 
U.S.C. 78m, 78o(d)) for any period exceeding 
the period of time referenced under paragraph 
(a)(1)(i)(A)(1) of section 230.139 of title 17, 
Code of Federal Regulations; or 
(B) impose a minimum float provision ex-
ceeding 
that 
referenced 
in 
paragraph 
(a)(1)(i)(A)(1)(i) of section 230.139 of title 17, 
Code of Federal Regulations; 
(3) provide that a self-regulatory organization 
may not maintain or enforce any rule that would— 
(A) prohibit the ability of a member to 
publish or distribute a covered investment fund 
research report solely because the member is 
also participating in a registered offering or 
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other distribution of any securities of such cov-
ered investment fund; or 
(B) prohibit the ability of a member to 
participate in a registered offering or other dis-
tribution of securities of a covered investment 
fund solely because the member has published 
or distributed a covered investment fund re-
search report about such covered investment 
fund or its securities; and 
(4) provide that a covered investment fund re-
search report shall not be subject to section 24(b) of 
the Investment Company Act of 1940 (15 U.S.C. 
80a–24(b)) or the rules and regulations thereunder, 
except that such report may still be subject to such 
section and the rules and regulations thereunder to 
the extent that it is otherwise not subject to the con-
tent standards in the rules of any self-regulatory or-
ganization related to research reports, including 
those contained in the rules governing communica-
tions with the public regarding investment compa-
nies or substantially similar standards. 
(c) RULES OF CONSTRUCTION.—Nothing in this Act 
shall be construed as in any way limiting— 
(1) the applicability of the antifraud or 
antimanipulation provisions of the Federal securities 
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laws and rules adopted thereunder to a covered in-
vestment fund research report, including section 17 
of the Securities Act of 1933 (15 U.S.C. 77q), sec-
tion 34(b) of the Investment Company Act of 1940 
(15 U.S.C. 80a–33), and sections 9 and 10 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78i, 
78j); or 
(2) the authority of any self-regulatory organi-
zation to examine or supervise a member’s practices 
in connection with such member’s publication or dis-
tribution of a covered investment fund research re-
port for compliance with applicable provisions of the 
Federal securities laws or self-regulatory organiza-
tion rules related to research reports, including those 
contained in rules governing communications with 
the public. 
(d) INTERIM EFFECTIVENESS OF SAFE HARBOR.— 
(1) IN GENERAL.—From and after the 180-day 
period beginning on the date of enactment of this 
Act, if the Commission has not adopted revisions to 
section 230.139 of title 17, Code of Federal Regula-
tions, as required by subsection (a), and until such 
time as the Commission has done so, a broker or 
dealer distributing or publishing a covered invest-
ment fund research report after such date shall be 
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able to rely on the provisions of section 230.139 of 
title 17, Code of Federal Regulations, and the 
broker or dealer’s publication of such report shall be 
deemed to satisfy the conditions of subsection (a)(1) 
or (a)(2) of section 230.139 of title 17, Code of Fed-
eral Regulations, if the covered investment fund that 
is the subject of such report satisfies the reporting 
history requirements (without regard to Form S–3 
or Form F–3 eligibility) and minimum float provi-
sions of such subsections for purposes of the Com-
mission’s rules and regulations under the Federal 
securities laws and the rules of any self-regulatory 
organization, as if revised and implemented in ac-
cordance with subsections (a) and (b). 
(2) STATUS OF COVERED INVESTMENT FUND.— 
After such period and until the Commission has 
adopted revisions to section 230.139 and FINRA 
has revised rule 2210, for purposes of subsection 
(c)(7)(O) of such rule, a covered investment fund 
shall be deemed to be a security that is listed on a 
national securities exchange and that is not subject 
to section 24(b) of the Investment Company Act of 
1940 (15 U.S.C. 80a–24(b)). Communications con-
cerning only covered investment funds that fall with-
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in the scope of such section shall not be required to 
be filed with FINRA. 
(e) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘covered investment fund re-
search report’’ means a research report published or 
distributed by a broker or dealer about a covered in-
vestment fund or any securities issued by the cov-
ered investment fund, but not including a research 
report to the extent that it is published or distrib-
uted by the covered investment fund or any affiliate 
of the covered investment fund. 
(2) The term ‘‘covered investment fund’’ 
means— 
(A) an investment company registered 
under, or that has filed an election to be treated 
as a business development company under, the 
Investment Company Act of 1940 and that has 
filed a registration statement under the Securi-
ties Act of 1933 for the public offering of a 
class of its securities, which registration state-
ment has been declared effective by the Com-
mission; and 
(B) a trust or other person— 
(i) issuing securities in an offering 
registered under the Securities Act of 1933 
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and which class of securities is listed for 
trading on a national securities exchange; 
(ii) the assets of which consist pri-
marily of commodities, currencies, or deriv-
ative instruments that reference commod-
ities or currencies, or interests in the fore-
going; and 
(iii) that provides in its registration 
statement under the Securities Act of 1933 
that a class of its securities are purchased 
or redeemed, subject to conditions or limi-
tations, for a ratable share of its assets. 
(3) The term ‘‘FINRA’’ means the Financial 
Industry Regulatory Authority. 
(4) The term ‘‘research report’’ has the mean-
ing given that term under section 2(a)(3) of the Se-
curities Act of 1933 (15 U.S.C. 77b(a)(3)), except 
that such term shall not include an oral communica-
tion. 
(5) The term ‘‘self-regulatory organization’’ has 
the meaning given to that term under section 
3(a)(26) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(26)). 
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Subtitle F—Accelerating Access to 
Capital 
SEC. 1026. EXPANDED ELIGIBILITY FOR USE OF FORM S–3. 
Not later than 45 days after the date of the enact-
ment of this Act, the Securities and Exchange Commission 
shall revise Form S–3— 
(1) so as to permit securities to be registered 
pursuant to General Instruction I.B.1. of such form 
provided that either— 
(A) the aggregate market value of the vot-
ing and non-voting common equity held by non- 
affiliates of the registrant is $75,000,000 or 
more; or 
(B) the registrant has at least one class of 
common equity securities listed and registered 
on a national securities exchange; and 
(2) so as to remove the requirement of para-
graph (c) from General Instruction I.B.6. of such 
form. 
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383 
Subtitle G—SEC Small Business 
Advocate 
SEC. 1031. ESTABLISHMENT OF OFFICE OF THE ADVOCATE 
FOR SMALL BUSINESS CAPITAL FORMATION 
AND SMALL BUSINESS CAPITAL FORMATION 
ADVISORY COMMITTEE. 
(a) OFFICE OF THE ADVOCATE FOR SMALL BUSI-
NESS CAPITAL FORMATION.—Section 4 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78d), as amended by 
title VI, is further amended by adding at the end the fol-
lowing: 
‘‘(k) OFFICE OF THE ADVOCATE FOR SMALL BUSI-
NESS CAPITAL FORMATION.— 
‘‘(1) OFFICE
ESTABLISHED.—There is estab-
lished within the Commission the Office of the Advo-
cate for Small Business Capital Formation (here-
after in this subsection referred to as the ‘Office’). 
‘‘(2) ADVOCATE FOR SMALL BUSINESS CAPITAL 
FORMATION.— 
‘‘(A) IN GENERAL.—The head of the Of-
fice shall be the Advocate for Small Business 
Capital Formation, who shall— 
‘‘(i) report directly to the Commission; 
and 
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‘‘(ii) be appointed by the Commission, 
from among individuals having experience 
in advocating for the interests of small 
businesses and encouraging small business 
capital formation. 
‘‘(B) COMPENSATION.—The annual rate of 
pay for the Advocate for Small Business Cap-
ital Formation shall be equal to the highest rate 
of annual pay for other senior executives who 
report directly to the Commission. 
‘‘(C) NO
CURRENT
EMPLOYEE
OF
THE 
COMMISSION.—An individual may not be ap-
pointed as the Advocate for Small Business 
Capital Formation if the individual is currently 
employed by the Commission. 
‘‘(3) STAFF
OF
OFFICE.—The Advocate for 
Small Business Capital Formation, after consulta-
tion with the Commission, may retain or employ 
independent counsel, research staff, and service 
staff, as the Advocate for Small Business Capital 
Formation determines to be necessary to carry out 
the functions of the Office. 
‘‘(4) FUNCTIONS
OF
THE
ADVOCATE
FOR 
SMALL BUSINESS CAPITAL FORMATION.—The Advo-
cate for Small Business Capital Formation shall— 
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‘‘(A) assist small businesses and small 
business investors in resolving significant prob-
lems such businesses and investors may have 
with the Commission or with self-regulatory or-
ganizations; 
‘‘(B) identify areas in which small busi-
nesses and small business investors would ben-
efit from changes in the regulations of the 
Commission or the rules of self-regulatory orga-
nizations; 
‘‘(C) identify problems that small busi-
nesses have with securing access to capital, in-
cluding any unique challenges to minority- 
owned and women-owned small businesses; 
‘‘(D) analyze the potential impact on small 
businesses and small business investors of— 
‘‘(i) proposed regulations of the Com-
mission that are likely to have a significant 
economic impact on small businesses and 
small business capital formation; and 
‘‘(ii) proposed rules that are likely to 
have a significant economic impact on 
small businesses and small business capital 
formation of self-regulatory organizations 
registered under this title; 
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‘‘(E) conduct outreach to small businesses 
and small business investors, including through 
regional roundtables, in order to solicit views on 
relevant capital formation issues; 
‘‘(F) to the extent practicable, propose to 
the Commission changes in the regulations or 
orders of the Commission and to Congress any 
legislative, administrative, or personnel changes 
that may be appropriate to mitigate problems 
identified under this paragraph and to promote 
the interests of small businesses and small busi-
ness investors; 
‘‘(G) consult with the Investor Advocate on 
proposed recommendations made under sub-
paragraph (F); and 
‘‘(H) advise the Investor Advocate on 
issues related to small businesses and small 
business investors. 
‘‘(5) ACCESS TO DOCUMENTS.—The Commis-
sion shall ensure that the Advocate for Small Busi-
ness Capital Formation has full access to the docu-
ments and information of the Commission and any 
self-regulatory organization, as necessary to carry 
out the functions of the Office. 
‘‘(6) ANNUAL REPORT ON ACTIVITIES.— 
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‘‘(A) IN
GENERAL.—Not later than De-
cember 31 of each year after 2015, the Advo-
cate for Small Business Capital Formation shall 
submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of 
Representatives a report on the activities of the 
Advocate for Small Business Capital Formation 
during the immediately preceding fiscal year. 
‘‘(B) CONTENTS.—Each report required 
under subparagraph (A) shall include— 
‘‘(i) appropriate statistical information 
and full and substantive analysis; 
‘‘(ii) information on steps that the 
Advocate for Small Business Capital For-
mation has taken during the reporting pe-
riod to improve small business services and 
the responsiveness of the Commission and 
self-regulatory organizations to small busi-
ness and small business investor concerns; 
‘‘(iii) a summary of the most serious 
issues encountered by small businesses and 
small business investors, including any 
unique issues encountered by minority- 
owned and women-owned small businesses 
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and their investors, during the reporting 
period; 
‘‘(iv) an inventory of the items sum-
marized under clause (iii) (including items 
summarized under such clause for any 
prior reporting period on which no action 
has been taken or that have not been re-
solved to the satisfaction of the Advocate 
for Small Business Capital Formation as 
of the beginning of the reporting period 
covered by the report) that includes— 
‘‘(I) identification of any action 
taken by the Commission or the self- 
regulatory organization and the result 
of such action; 
‘‘(II) the length of time that each 
item has remained on such inventory; 
and 
‘‘(III) for items on which no ac-
tion has been taken, the reasons for 
inaction, and an identification of any 
official who is responsible for such ac-
tion; 
‘‘(v) 
recommendations 
for 
such 
changes to the regulations, guidance and 
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