Municipal Finance Support Act of 2017

Bill: 115-hr-1624
Sponsor: full_name: Rep. Messer, Luke [R-IN-6]
Introduced: 2017-03-20
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Banking and financial institutions regulation

Department of the Treasury

Federal Deposit Insurance Corporation (FDIC)

Federal Reserve System

Securities

State and local finance
Latest action: action_date: 2017-10-04
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2017-03-20
action_desc: Introduced in House
text: <p><strong>Municipal Finance Support Act of 2017</strong></p> <p>This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as level 2A liquid assets if they are investment grade, liquid, and readily marketable. Under current law, only certain securities issued or guaranteed by a U.S. government-sponsored enterprise, a sovereign entity, or a multilateral development bank may be treated as level 2A liquid assets (which are considered to be high-quality assets).</p>

action_date: 2017-09-12
action_desc: Reported to House with amendment(s)
text: <p><strong>Municipal Finance Support Act of 2017</strong></p> <p>(Sec. 2) This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as high-quality liquid assets if they are investment grade, liquid, and readily marketable. Under current law, high-quality assets include level 1, level 2A, and level 2B liquid assets. </p>

action_date: 2017-10-03
action_desc: Passed House amended
text: <p><strong>Municipal Finance Support Act of 2017</strong></p> <p>(Sec. 2) This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as high-quality liquid assets if they are investment grade, liquid, and readily marketable. Under current law, high-quality assets include level 1, level 2A, and level 2B liquid assets. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 1624 IN THE HOUSE OF REPRESENTATIVES March 20, 2017 Mr. Messer (for himself, Mrs. Carolyn B. Maloney of New York , Mr. Hultgren , Mr. Meeks , Ms. Kelly of Illinois , Ms. Sewell of Alabama , Ms. Sinema , Mr. King of New York , Ms. Norton , Ms. Moore , Mr. Poliquin , Mr. Veasey , Mr. Sherman , and Mr. Kind ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes.

1. Short title This Act may be cited as the Municipal Finance Support Act of 2017 . 2. Treatment of certain municipal obligations (a) In general Section 18 of the Federal Deposit Insurance Act ( 12 U.S.C. 1828 ) is amended— (1) by moving subsection (z) so that it appears after subsection (y); and (2) by adding at the end the following: (aa) Treatment of certain municipal obligations (1) In general For purposes of the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) (the Final Rule ) and any other regulation which incorporates a definition of the term high-quality liquid asset , the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is a level 2A liquid asset. (2) Definitions For purposes of this subsection: (A) Investment grade With respect to an obligation, the term investment grade has the meaning given that term under part 1 of title 12, Code of Federal Regulations. (B) Municipal obligation The term municipal obligation means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof. . (b) Amendment to liquidity coverage ratio regulations Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.

tv_txt: IB Union Calendar No. 219 115th CONGRESS 1st Session H. R. 1624 [Report No. 115–306] IN THE HOUSE OF REPRESENTATIVES March 20, 2017 Mr. Messer (for himself, Mrs. Carolyn B. Maloney of New York , Mr. Hultgren , Mr. Meeks , Ms. Kelly of Illinois , Ms. Sewell of Alabama , Ms. Sinema , Mr. King of New York , Ms. Norton , Ms. Moore , Mr. Poliquin , Mr. Veasey , Mr. Sherman , and Mr. Kind ) introduced the following bill; which was referred to the Committee on Financial Services September 12, 2017 Additional sponsors: Mr. Hudson , Mr. Curbelo of Florida , Mr. Ross , Ms. Velázquez , Mr. Delaney , and Mr. Fitzpatrick September 12, 2017 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on March 20, 2017 A BILL To require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes.

1. Short title This Act may be cited as the Municipal Finance Support Act of 2017 . 2. Treatment of certain municipal obligations (a) In general Section 18 of the Federal Deposit Insurance Act ( 12 U.S.C. 1828 ) is amended— (1) by moving subsection (z) so that it appears after subsection (y); and (2) by adding at the end the following: (aa) Treatment of certain municipal obligations (1) In general For purposes of the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) (the Final Rule ) and any other regulation which incorporates a definition of the term high-quality liquid asset , the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is no lower than a level 2B liquid asset. (2) Definitions For purposes of this subsection: (A) Investment grade With respect to an obligation, the term investment grade has the meaning given that term under part 1 of title 12, Code of Federal Regulations. (B) Municipal obligation The term municipal obligation means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof. . (b) Amendment to liquidity coverage ratio regulations Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.

Amend the title so as to read: A bill to require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes. .

September 12, 2017 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IB 115th CONGRESS 1st Session H. R. 1624 IN THE HOUSE OF REPRESENTATIVES AN ACT To require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes.

1. Short title This Act may be cited as the Municipal Finance Support Act of 2017 . 2. Treatment of certain municipal obligations (a) In general Section 18 of the Federal Deposit Insurance Act ( 12 U.S.C. 1828 ) is amended— (1) by moving subsection (z) so that it appears after subsection (y); and (2) by adding at the end the following: (aa) Treatment of certain municipal obligations (1) In general For purposes of the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) (the Final Rule ) and any other regulation which incorporates a definition of the term high-quality liquid asset , the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is no lower than a level 2B liquid asset. (2) Definitions For purposes of this subsection: (A) Investment grade With respect to an obligation, the term investment grade has the meaning given that term under part 1 of title 12, Code of Federal Regulations. (B) Municipal obligation The term municipal obligation means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof. . (b) Amendment to liquidity coverage ratio regulations Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.

Passed the House of Representatives October 3, 2017. Karen L. Haas, Clerk.

tv_txt: IIB 115th CONGRESS 1st Session H. R. 1624 IN THE SENATE OF THE UNITED STATES October 4, 2017 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes.

1. Short title This Act may be cited as the Municipal Finance Support Act of 2017 . 2. Treatment of certain municipal obligations (a) In general Section 18 of the Federal Deposit Insurance Act ( 12 U.S.C. 1828 ) is amended— (1) by moving subsection (z) so that it appears after subsection (y); and (2) by adding at the end the following: (aa) Treatment of certain municipal obligations (1) In general For purposes of the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) (the Final Rule ) and any other regulation which incorporates a definition of the term high-quality liquid asset , the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is no lower than a level 2B liquid asset. (2) Definitions For purposes of this subsection: (A) Investment grade With respect to an obligation, the term investment grade has the meaning given that term under part 1 of title 12, Code of Federal Regulations. (B) Municipal obligation The term municipal obligation means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof. . (b) Amendment to liquidity coverage ratio regulations Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.

Passed the House of Representatives October 3, 2017. Karen L. Haas, Clerk