HR 3189 · 114th Congress 2015–2017, ended

FORM Act of 2015

Latest action · Dec 17, 2015 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedJul 23, 2015
  2. Passed HouseNov 19, 2015
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Fed Oversight Reform and Modernization Act of 2015 or the FORM Act of 2015

(Sec. 1) This bill amends the Federal Reserve Act to require the Chairman of the Federal Open Market Committee (FOMC), within 48 hours after the end of a FOMC meeting, to submit to the appropriate congressional committees and the Government Accountability Office (GAO) a Directive Policy Rule, meeting specified criteria, accompanied by a statement identifying the FOMC members voting in its favor.

A Directive Policy Rule shall describe the FOMC strategy or rule for the systematic quantitative adjustment of a Policy Instrument Target to:

  • respond to a change in specified Intermediate Policy Inputs, and
  • provide the basis for an Open Market Operations Directive to achieve a specified Policy Instrument Target presented by the FOMC to the Federal Reserve Bank of New York to guide open-market operations.

The GAO shall determine if a Directive Policy Rule has materially changed from the rule most recently submitted, and the Chairman of the Board of Governors of the Federal Reserve System (Board) must testify within seven legislative days before certain congressional committees as to why any noncompliance exists.

The GAO must also, upon congressional request, audit the conduct of monetary policy by the Board and the FOMC.

(Sec. 2) A blackout period shall take place starting one week before an FOMC meeting and ending midnight of the day of its completion. During the black-out period only specified public communications are permissible by members and FOMC staff with respect to either macroeconomic or financial developments or about current or prospective monetary policy issues.

(Sec. 4) FMOC membership shall increase from five to six representatives of the Federal Reserve Banks. The selection process for representatives is revised, in part to divide elections from different Banks into odd-numbered and even-numbered calendar years.

(Sec. 5) The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended to require the Board, before adopting sets of conditions for stress tests of nonbank financial companies it supervises and bank holding companies, to: (1) first issue regulations for them, subject to public notice and comment, which shall include methodologies and models used to estimate losses on certain assets; and (2) before publishing them submit copies of such regulations to the GAO and the Panel of Economic Advisors of the Congressional Budget Office.

Stress test requirements used by the Board shall apply to all stress tests performed under the Comprehensive Capital Analysis and Review exercise.

The Board shall also publish:

  • the aggregate number of supervisory letters sent since the enactment of this Act to bank holding companies with total consolidated assets of $50 billion or more, and keep this number updated; as well as
  • the aggregate numbers designated "Matters Requiring Attention" and "Matters Requiring Immediate Attention."

(Sec. 6) The Federal Reserve Act is further amended to increase from semiannual to quarterly the Board Chairman’s appearances before Congress.

(Sec. 7) The Board's Vice Chairman for Supervision, as part of Board testimony before specified congressional committees, shall report on the status of proposed and anticipated rulemakings. If the Vice Chairman for Supervision position is vacant, the Board's Vice Chairman shall fulfill the statutory requirement for semi-annual testimony.

(Sec. 8) Before issuing any regulation the Board must consider specified economic impacts.

When deciding whether to regulate, the Board must:

  • assess the costs and benefits of available regulatory alternatives, and
  • consider a regulation's impact upon certain areas of economic activity.

In its final rule the Board must: (1) explain the nature of comments that it received together with a response to them; and (2) make a postadoption impact assessment of the costs, benefits, and intended and unintended consequences of any "major rule" adopted or amended.

(Sec. 9) Board members and employees shall be subject to the same ethics standards, prohibitions, and restrictions as apply to employees of the Securities and Exchange Commission (SEC) with respect to financial interests, transactions, outside employment and activities, and Office of Personnel Management employee responsibilities and conduct regulations.

The Board shall make publicly available on its website a searchable database of all Board members, officers, and employees who receive an annual salary above the annual rate of basic pay for GS-15 of the General Schedule, including yearly salary information and any nonsalary compensation such staff receive.

Each Board member may employ at least two individuals.

(Sec. 10) Both the Federal Reserve Act and the Federal Deposit Insurance Act are revised to require the Federal Reserve Board and the Federal Deposit Insurance Corporation Board, respectively, in the process of setting financial standards as a part of any foreign or multinational entity, to solicit public comment and issue public reports, including a notice of agreement.

The Department of the Treasury, the Comptroller of the Currency, and the SEC shall likewise be subject to these same requirements for their participation in similar processes.

(Sec. 11) The authority of the Federal Reserve Board to discount notes, drafts, and bills of exchange secured to a Federal Reserve Bank's satisfaction in unusual and exigent circumstances shall be limited to only those circumstances posing a threat to U.S. financial stability. The affirmative vote of at least nine presidents of the Federal Reserve Banks shall be necessary for a discount decision, in addition to (as under current law) the affirmative vote of five Board members.

Federal Reserve Banks may not accept as collateral for an emergency loan any equity securities issued by the recipient of the loan or of other financial assistance.

No applicant shall be eligible to borrow from any emergency lending program or facility unless the Board and all applicable federal banking regulators certify that the applicant is not insolvent.

The Board, within six months of the enactment of this Act, shall adopt a rule:

  • establishing a method for determining the sufficiency of collateral pledged to secure lending,
  • acceptable classes of collateral,
  • the amount of any discount of the lendable value of collateral for a loan that the Federal Reserve Banks will apply to calculate the sufficiency of the collateral, and
  • a method for obtaining independent appraisals of the collateral the Federal Reserve Banks receive.

The Board, also within six months of the enactment of this Act, shall by rule establish a minimum interest rate on the principal amount of any emergency loan or financial assistance to a recipient. The applicable minimum interest rate shall be the sum of:

  • the most recent 90-day average of the secondary discount rate of all Federal Reserve Banks; plus
  • the most recent 90-day average of the difference between a distressed corporate bond yield index and a bond yield index of debt issued by the United States.

The bill limits discounts under the lending program to participants that are financial institutions, excluding federal, state, and local government agencies.

(Sec. 12) The FOMC shall determine the interest rates on balances maintained at a Federal Reserve Bank by or on behalf of a depository institution.

(Sec. 13) The GAO shall audit annually both the Federal Reserve Board and the Federal Reserve Banks within 12 months after enactment of this Act.

(Sec. 14) The Board, shall, as part of its monthly "Industrial Production or Capacity Utilization" statistical release (or any successor release), analyze:

  • the impact on the index described in the statistical release because of the operation of the Export-Import Bank; and
  • the amount of foreign industrial production supported by foreign export credit agencies, using the same method used to measure industrial production in the statistical release and scaled to be comparable to the industrial production measurement for the United States.

(Sec. 15) The Federal Reserve Act is amended to require that, with respect to the election or designation of Class B and C directors of Federal Reserve District Banks, due consideration be given to the interests of traditionally underserved communities and populations.

(Sec. 16) Centennial Monetary Commission Act of 2015

The bill establishes a Centennial Monetary Commission to examine how U.S. monetary policy since the creation of the Board in 1913 has affected the performance of the U.S. economy in terms of output, employment, prices, and financial stability over time.

(Sec. 17) The Federal Reserve Act is amended to state that the portion of net earnings of each Federal Reserve Bank which remains after dividend claims have been fully met shall no longer be deposited in the Bank's surplus fund but shall be transferred to the Board for transfer to the Treasury general fund. The Federal Reserve Banks shall also transfer all their current surplus funds to the Board for transfer to the Treasury general fund.

(Sec. 18) The FOMC shall record and make available to the public the full transcript of all of its meetings.

Recorded votes 2

Newest first. Open one to see how every member voted.

Roll callQuestionResultDate
House 641Passed241–185Nov 19, 2015
House 640Failed182–242Nov 19, 2015

Cosponsors 20

Members who signed on, in the order they did. Signatures ran from Jul 27, 2015 to Sep 18, 2015.

SeatCosponsorSigned on
R-INLuke MesserJul 27, 2015
R-INMarlin A. StutzmanJul 27, 2015
R-TXRoger WilliamsJul 27, 2015
R-TNStephen Lee FincherJul 27, 2015
R-MNTom EmmerJul 27, 2015
R-SCMick MulvaneyJul 28, 2015
R-NJScott GarrettJul 28, 2015
R-PAKeith J. RothfusJul 29, 2015
R-ILRandy HultgrenJul 29, 2015
R-WVAlexander X. MooneySep 10, 2015
R-MIDan BenishekSep 10, 2015
R-NHFrank C. GuintaSep 10, 2015
R-TXLouie GohmertSep 10, 2015
R-TXRandy K. Weber, Sr.Sep 10, 2015
R-GARick W. AllenSep 10, 2015
R-VARobert J. WittmanSep 10, 2015
R-TXBill FloresSep 17, 2015
R-AZPaul A. GosarSep 17, 2015
R-NCRobert PittengerSep 18, 2015
R-COScott R. TiptonSep 18, 2015

Committees 3

Where it was sent and what each committee and subcommittee did with it, in order.

ChamberCommitteeWhat it did
HouseFinancial Services Committee
Referred Jul 23, 2015Markup Jul 29, 2015Reported Nov 16, 2015
Financial Institutions and Monetary Policy Subcommittee
Hearings Jul 22, 2015
HouseOversight and Government Reform Committee
Referred Jul 23, 2015Discharged Nov 16, 2015
SenateBanking, Housing, and Urban Affairs Committee
Referred Dec 17, 2015

Actions 34

Everything that happened, newest first.

  1. Dec 17, 2015Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  2. Nov 30, 2015Received in the Senate.
  3. Nov 19, 2015Considered as unfinished business. (consideration: CR H8378-8381)
  4. Nov 19, 2015Ms. Matsui moved to recommit with instructions to the Committee on Financial Services. (consideration: CR H8378-8380; text: CR H8379)
  5. Nov 19, 2015DEBATE - The House proceeded with 10 minutes of debate on the motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment adding new language outlining further considerations the Board shall take when determining which companies would be eligible to participate in the program.

In the Congressional Record 3

Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.

WhereIn the RecordMembersDate
HouseDebate and remarks H8379Motions H8379Recorded votes H8379, H8380enactMatsui motion to recommit (prohibit companies convicted of misconduct that harms financial health of seniors from participating in emergency lending program)Doris O. Matsui D-CA (motion), Jeb Hensarling R-TXNov 19, 2015
HouseDebate and remarks H8292–H8297, H8323–H8342Text printed H8292, H8331–H8337Amendments H8337, H8339, H8340, H8341Recorded votes H8296Alan Grayson D-FL (amendment), Alcee L. Hastings D-FL, Bill Foster D-IL, Bill Huizenga R-MI, Carolyn B. Maloney D-NY, Denny Heck D-WA (amendment), Gwen Moore D-WI, Jeb Hensarling R-TX, Keith J. Rothfus R-PA, Luke Messer R-IN, Maxine Waters D-CA, Scott Garrett R-NJ, Sean P. Duffy R-WI, Steve King R-IA (amendment), Steve Stivers R-OH, Tom Emmer R-MNNov 18, 2015
HouseDeclaratory Statements H8282—Nov 17, 2015

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee report

Congressional Budget Office cost estimate

  1. Nov 17, 2015H.R. 3189, Fed Oversight Reform and Modernization Act of 2015As ordered reported by the House Committee on Financial Services on July 29, 2015

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: Article 1, Section 8, Clause 3 (To regulate commerce with foreign nations, and among the several states, and with the Indian tribes); Article I, Section 8, Clause 5 (To coin money, regulate the value thereof; and of foreign coin, and fix the standard of weights and measures); Article I, Section 8, Clause 6 (To provide for the punishment of counterfeiting the securities and current coin of the United States); and Article I, Section 8, Clause 18 (To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department thereof).

The sponsor’s statement, as printed in the Congressional Record, vol. 161, no. 116, July 23, 2015, page H5468.

Printed hearings 1

Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.

NumberHearingCommitteeHeld
Serial No. 114-106THE FINANCIAL STABILITY BOARD'S IMPLICATIONS FOR U.S. GROWTH AND COMPETITIVENESS84 pagesFinancial Services CommitteeSep 27, 2016

CRS reports 5

Congressional Research Service work that CRS links to this bill or the law it became, newest first.

Cite it 5

Products on other subjects that cite it, usually among other measures.

ProductTitleKindPublished
R44185Federal Reserve: Emergency Lending ArchivedReportMar 27, 2020
R44813Cost-Benefit Analysis and Financial Regulator Rulemaking ArchivedReportMay 11, 2017
R42079Federal Reserve: Oversight and Disclosure Issues ArchivedReportMar 27, 2017
R44273Federal Reserve: Legislation in the 114th Congress ArchivedReportOct 26, 2016
R44631The Financial CHOICE Act in the 114th Congress: Policy Issues ArchivedReportSep 14, 2016

Amendments 5

Amendments offered to this bill.

Related bills 5

Companion bills and other measures the record links to this one.

Titles 8

Every title it has carried, official and short, at each stage.

Official Title as Introduced
To amend the Federal Reserve Act to establish requirements for policy rules and blackout periods of the Federal Open Market Committee, to establish requirements for certain activities of the Board of Governors of the Federal Reserve System, and to amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited, and for other purposes.
Short Titles as Introduced
FORM Act of 2015
Fed Oversight Reform and Modernization Act of 2015
Short Titles as Reported to House
FORM Act of 2015
Fed Oversight Reform and Modernization Act of 2015
Short Titles as Passed House
FORM Act of 2015
Fed Oversight Reform and Modernization Act of 2015
Short Titles as Passed House for portions of this bill
Centennial Monetary Commission Act of 2015

Subjects

Assigned by the Library of Congress. Policy area: Finance and Financial Sector.

Text 5

Each version as it was printed, newest first.

  1. Dec 17, 2015Referred in Senate
  2. Nov 30, 2015Received in Senate
  3. Nov 19, 2015Engrossed in House
  4. Nov 16, 2015Reported in House
  5. Jul 23, 2015Introduced in House

Support LegiList

This page is free, carries no paywall, and is built and maintained by one person. If the record here is useful to you, a few dollars keeps it going.

Processed by Stripe in a separate window. LegiList never sees card details.

Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.