II 117th CONGRESS 2d Session S. 3490 IN THE SENATE OF THE UNITED STATES January 12 (legislative day, January 10), 2022 Mr. Tillis introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Federal Reserve Act to bring the non-monetary policy related functions of the Board of Governors of the Federal Reserve System into the appropriations process, and for other purposes.

1. Short title This Act may be cited as the Federal Reserve Regulatory Oversight Act . 2. Bringing the non-monetary policy related functions of the Board of Governors of the Federal Reserve System into the appropriations process (a) In general The Federal Reserve Act is amended by inserting after section 11B the following: 11C. Appropriations requirement for non-monetary policy related administrative costs (a) Appropriations requirement (1) Recovery of costs of annual appropriation The Board of Governors of the Federal Reserve System and the Federal reserve banks shall collect assessments and other fees, as provided under this Act, that are designed to recover the costs to the Government of the annual appropriation to the Board of Governors of the Federal Reserve System by Congress. The Board of Governors of the Federal Reserve System and the Federal 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. (2) Offsetting collections Assessments and other fees described under paragraph (1) for any fiscal year— (A) shall be deposited and credited as offsetting collections to the account providing appropriations to the Board of Governors of the Federal Reserve System; and (B) shall not be collected for any fiscal year except to the extent provided in advance in appropriation Acts. (3) Limitation This subsection shall only apply to the non-monetary policy related administrative costs of the Board of Governors of the Federal Reserve System. (b) 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 productive employment of economic resources by reliably serving as both a unit of account and store of value. (2) Non-monetary policy related administrative costs The term non-monetary policy related administrative costs means administrative costs not related to the conduct of monetary policy, and includes— (A) direct operating expenses for supervising and regulating entities supervised and regulated by the Board of Governors of the Federal Reserve System, including conducting examinations, conducting stress tests, communicating with the entities regarding supervisory matters and laws, and regulations; (B) operating expenses for activities integral to carrying out supervisory and regulatory responsibilities, such as training staff in the supervisory function, research and analysis functions including library subscription services, and collecting and processing regulatory reports filed by supervised institutions; and (C) support, overhead, and pension expenses related to the items described under subparagraphs (A) and (B). . (b) Effective date The amendments made by this section shall apply with respect to expenses paid and fees collected on or after October 1, 2021.